iHeartMedia (NASDAQ:IHRT) reported fourth-quarter 2025 results that management said reflected solid execution in a non-political year, led by continued growth in digital audio and improving trends in the company’s core broadcast business when excluding political advertising.
Fourth-quarter results and full-year context
Chairman and CEO Bob Pittman said iHeartMedia generated adjusted EBITDA of $220 million in the fourth quarter, landing at the midpoint of its prior guidance range of $200 million to $240 million. That compared with $246 million in the prior-year quarter, which management noted included roughly $80 million of political revenue.
Digital Audio Group: podcast growth and mid-30% margins
The Digital Audio Group posted fourth-quarter revenue of $387 million, up 14.1% from the prior year and ahead of management’s guidance for high-single-digit growth. Adjusted EBITDA for the segment was $132 million, up 10.7%, with an adjusted EBITDA margin of 34.1%. Pittman said the company finished the full year with Digital Audio Group adjusted EBITDA margins of 34.4%, up from 32.5% a year earlier and in line with iHeart’s stated goal of mid-30% margins, with “further upside” over time.
Podcasting remained a key driver. Fourth-quarter podcast revenue increased to $174 million, up 24.5% year-over-year and above the company’s guidance for mid-teens growth. Pittman highlighted the company’s local advertising footprint as a differentiator: in the quarter, about 47% of podcasting revenue was generated by iHeart’s local sales force, compared with about 13% in the fourth quarter of 2020. He also pointed to iHeart’s leading audience positions in podcasting as measured by Podtrac and Triton.
Non-podcast digital revenue grew 6.8% in the quarter, according to management.
Multiplatform and Audio & Media Services: political comparisons and focus areas
The Multiplatform Group (broadcast radio, networks, and events) delivered fourth-quarter revenue of $665 million, down 2.8% year-over-year and in line with guidance. Excluding political advertising, Multiplatform revenue was up 2.3%. Segment adjusted EBITDA was $129 million, versus $150 million in the prior-year quarter, which management said included about $40 million of political advertising. Adjusted EBITDA margins were 19.4%, down from 21.9% in the year-ago quarter.
Pittman said iHeart remained confident it can return the Multiplatform Group to EBITDA growth, outlining four drivers:
- Programmatic: iHeart has made its broadcast inventory available through programmatic buying platforms and cited partnerships with Amazon DSP and Yahoo DSP, with Amazon inclusion expected in the second half of the year.
- Integrated sales: management emphasized coordinated marketing plans using multiple iHeart assets rather than standalone transactions.
- Broadcast outperformance: Pittman said iHeart outperformed the radio industry’s revenue performance by 500 basis points in 2025, citing Miller Kaplan data.
- Resilient audience: management said broadcast radio listening remains broad, and it views advertising share as having upside relative to usage.
Management also discussed partnerships, including work with TikTok on new music premieres and video podcasts available on Netflix. Pittman said some popular video podcasts on Netflix are derived from iHeart radio shows, including The Breakfast Club and Bobby Bones.
In the Audio and Media Services Group, fourth-quarter revenue was $79 million, down 19.3% year-over-year, with the prior-year quarter benefiting from about $35 million of political advertising. Excluding political revenue, the segment’s revenue was up 21.8%. Adjusted EBITDA was $31 million, down 35.7% versus the prior year, which management again attributed largely to political advertising comparisons.
Costs, cash flow, leverage, and 2026 outlook
President and COO Rich Bressler said the company’s advertising base remained diversified, with no category above roughly 5% of total advertising revenue and no individual advertiser above 2%. In the fourth quarter, the largest category gainers in absolute dollars were financial services, retail, entertainment, and beauty and fitness, while the largest decliners were political, government, restaurants, and food and beverage. The top five categories by dollars were healthcare, home building and improvement, financial services, retail, and entertainment.
On expenses, Bressler said consolidated direct operating expenses rose 2.4% year-over-year, primarily due to higher variable content costs tied to digital growth, partially offset by cost-savings initiatives and lower employee compensation costs. SG&A increased 4.6%, driven primarily by non-cash co-marketing partnership expenses, partially offset by cost savings and lower compensation costs.
iHeart reported fourth-quarter GAAP operating income of $86 million, compared with $105 million in the prior-year period. Free cash flow was $138 million, or $158 million including proceeds from certain real estate asset sales, versus negative $24 million a year earlier. Bressler said EBITDA-to-free-cash-flow conversion was about 70% in the quarter.
At year-end, net debt was about $4.5 billion, liquidity was $640 million, and cash was $271 million, including $50 million borrowed under the ABL facility. The company’s year-end net debt to adjusted EBITDA ratio was 6.6x.
Management also provided an update on cost actions, saying it is implementing $50 million of new in-year cost savings that will begin benefiting results in the second quarter, in addition to $50 million previously announced, for a total of $100 million of in-year cost savings expected in 2026. The company said it achieved $150 million of net cost savings in 2025 and continues working on operating efficiencies, including through AI-powered tools.
For the first quarter, iHeart expects adjusted EBITDA of approximately $100 million and consolidated revenue up high single digits year-over-year. January revenue was up about 1%, with management noting a strong prior-year comparison. Segment expectations for the first quarter include:
- Digital Audio Group revenue up mid-teens, with podcast revenue up low twenties.
- Multiplatform Group revenue up mid-single digits.
- Audio and Media Services Group revenue up high single digits.
For the full year, management guided to adjusted EBITDA of approximately $800 million and free cash flow of approximately $200 million. Guidance assumptions included expectations for Multiplatform Group EBITDA growth in 2026, continued podcast momentum, and a “robust” midterm election year for political revenue. The company also expects total programmatic revenue of about $200 million in 2026, up roughly 50% from $135 million in 2025.
Additional items embedded in free cash flow guidance included interest expense of about $440 million, cash taxes at about 5% of adjusted EBITDA, capex of about $90 million, and cash restructuring expenses of about $50 million. Working capital is expected to be a source of cash, driven by political revenue that is paid upfront. Management said it expects net leverage to end 2026 in the mid-fives.
During Q&A, executives noted that quarter-to-quarter margin movements can be impacted by timing and non-cash marketing campaigns related to programmatic initiatives. Management also described video podcasting as an expanding opportunity, pointing to YouTube and Netflix as major platforms increasingly focused on video podcasts and emphasizing iHeart’s ability to promote content through its broadcast reach.
About iHeartMedia (NASDAQ:IHRT)
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.
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