iHeartMedia Inc. (NASDAQ:IHRT) stock plunged more than 60% Tuesday after the audio media company reported weaker-than-expected third-quarter 2026 results.
The company posted a loss of 6 cents per share, wider than the analyst estimate of a 2-cent loss.
Revenue rose 3.3% year over year to $1.03 billion, missing the $1.052 billion estimate. Excluding political advertising, revenue grew 0.9%.
CEO Bob Pittman highlighted strong digital audio demand, particularly in podcasting.
President and COO Rich Bressler said the company’s weaker performance reflected advertiser spending delays, consumer uncertainty and broader economic pressures.
Pittman said several major advertisers delayed spending until after the elections. He also warned that inflation, volatile fuel prices and growing consumer uncertainty were squeezing advertising budgets. Pittman expects these pressures to persist through the end of 2026.
iHeartMedia Earnings Show Mixed Results
GAAP operating income reached $73 million, compared with a GAAP operating loss of $116 million a year earlier.
However, adjusted EBITDA fell to $170.5 million from $204.8 million. Net loss narrowed to $8.2 million from $65.8 million.
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Podcast Revenue Surges As Traditional Radio Struggles
Digital Audio Group revenue climbed 13.8% to $388.7 million, driven by a 24.4% jump in podcast revenue to $173.7 million.
Meanwhile, Multiplatform Group revenue fell 4.9% to $562.4 million amid weaker broadcast and network advertising. Segment adjusted EBITDA plunged 42.9% to $68 million, while its margin narrowed to 12.1% from 20.2% a year earlier.
Management cited disappointing political advertising, delayed spending by major advertisers and a faster shift toward programmatic audio advertising.
Audio & Media Services Group revenue increased 22.6% to $81.6 million. Segment adjusted EBITDA surged 65.9% to $37.5 million.
Debt Remains High Despite Improving Cash Flow
iHeartMedia ended September with $139.7 million in cash, $415.8 million in available liquidity and $5.02 billion in debt.
Free cash flow was negative $10.4 million, compared with negative $32.8 million a year earlier.
iHeartMedia Bets on Programmatic Advertising Growth
The company expects full-year adjusted EBITDA of $550 million to $600 million.
Management forecasts approximately $200 million in programmatic revenue in 2026 and $400 million in 2027, including about $100 million in incremental broadcast radio programmatic revenue next year.
iHeartMedia also plans to make podcasting a standalone reporting segment in 2027. Its video podcast content is already available on platforms including Netflix, Apple, Amazon, Disney and Hulu, expanding its reach beyond YouTube.
For the fourth quarter, management forecasts mid-single-digit revenue growth and adjusted EBITDA of $135 million to $185 million.
IHRT Price Action: iHeartMedia shares were down 62.71% at $0.66 at the time of publication on Tuesday, according to Benzinga Pro data.
Trading volume surged to 19.73 million shares Tuesday, about 27.4 times the 100-day average of 719,959 shares, highlighting heavy trading activity in the micro-cap stock.
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