iHeartMedia (NASDAQ:IHRT) Announces Earnings Results

iHeartMedia (NASDAQ:IHRT) announced its earnings results on Monday. The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.06), Zacks reports. iHeartMedia had a negative net margin of 10.37% and a negative return on equity of 1.63%. The business had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.10 billion.

Here are the key takeaways from iHeartMedia’s conference call:

• Digital Audio Group momentum continued in Q4 with revenue of $387M (+14.1%) and podcast revenue of $174M (+24.5%), driving DAG adjusted EBITDA of $132M and full?year margins of ~34.4% as management targets further margin upside.
• The Multiplatform Group faces Q4 EBITDA pressure (Q4 adjusted EBITDA $129M, down 14.2%) due to lapping prior political revenue, but management expects MPG to return to EBITDA growth in 2026 driven by programmatic rollout, integrated sales, audience scale and partnerships (Amazon DSP, Yahoo, Netflix, TikTok).
• iHeart reiterated financial targets for 2026, including roughly $800M of adjusted EBITDA and ~$200M of free cash flow, supported by $100M of in?year cost reductions (on top of $150M saved in 2025) and continued investment in programmatic capabilities.
• Cash generation improved materially — Q4 free cash flow was $138M ($158M including certain real estate proceeds) with ~70% EBITDA-to-FCF conversion, and management expects working capital to be a source of cash in 2026 due to upfront political payments.
• The balance sheet remains leveraged with year?end net debt of ~$4.5B, net debt/adjusted EBITDA of 6.6x, total liquidity of $640M and cash of $271M (including $50M drawn on the ABL), leaving leverage reduction a key execution risk despite guidance to reach mid?fives by year?end 2026.

iHeartMedia Stock Down 5.8%

IHRT traded down $0.18 during trading on Tuesday, hitting $2.92. 564,531 shares of the company traded hands, compared to its average volume of 626,827. The firm has a market cap of $438.46 million, a P/E ratio of -1.13, a price-to-earnings-growth ratio of 0.28 and a beta of 1.70. The stock’s fifty day moving average is $3.67 and its 200 day moving average is $3.40. iHeartMedia has a one year low of $0.95 and a one year high of $5.44.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. The Goldman Sachs Group cut shares of iHeartMedia from a “neutral” rating to a “sell” rating and dropped their price target for the company from $4.00 to $3.50 in a research report on Friday, January 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of iHeartMedia in a research note on Thursday, January 22nd. Finally, Bank of America raised their target price on iHeartMedia from $3.00 to $5.00 and gave the company a “neutral” rating in a report on Thursday, November 13th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $4.33.

Institutional Trading of iHeartMedia

A number of large investors have recently bought and sold shares of the company. Royal Bank of Canada grew its stake in iHeartMedia by 67.7% during the fourth quarter. Royal Bank of Canada now owns 8,368 shares of the company’s stock valued at $36,000 after acquiring an additional 3,378 shares in the last quarter. Xponance LLC purchased a new position in shares of iHeartMedia during the 4th quarter valued at $46,000. Captrust Financial Advisors purchased a new position in shares of iHeartMedia during the 4th quarter valued at $47,000. Mercer Global Advisors Inc. ADV bought a new position in shares of iHeartMedia in the fourth quarter worth $52,000. Finally, CIBC Bancorp USA Inc. purchased a new stake in shares of iHeartMedia in the third quarter worth $36,000. 93.89% of the stock is owned by hedge funds and other institutional investors.

iHeartMedia Company Profile

iHeartMedia, Inc (NASDAQ: IHRT) is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts.

Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings.