iHeartMedia Revenue Rises Nearly 10% as Podcast Growth Lifts Q1, but Ad Weakness Hits Profit

iHeartMedia reported first-quarter revenue of $884 million, up nearly 10% year over year, as its podcast business continued to grow. Still, that increase was not enough to make up for weaker advertising demand.

In its earnings release on Monday, May 11, the company said adjusted EBITDA fell 11.4% to $93 million for the quarter ended March 31. Executives pointed to softness in the ad market and marketing costs that came earlier in the year than expected.

Cash provided by operating activities came in at $93 million. Free cash flow was negative $114 million, after operational spending and capital expenses.

Facing substantial debt repayments beginning in 2028, iHeart executives said they expect growth in podcast revenue and political advertising in the second half of the year to help support full-year guidance of $800 million in EBITDA and $200 million in free cash flow.

The company’s multiplatform group, which includes more than 860 broadcast radio stations and shows such as The Breakfast Club with Charlamagne Tha God, posted revenue of $493 million, up 4%. Adjusted EBITDA in the segment fell 33% to $47 million, with an adjusted margin of 9.5%.

The digital audio group posted the stronger performance. Revenue rose nearly 20% to $327 million, driven by $180 million from podcasts, up 27% from a year earlier. Adjusted EBITDA for the segment was flat at $87 million.

iHeart ended the quarter with $135 million in cash. Its total available liquidity was below half a billion dollars.

The company also moved to shut down questions about media reports that it was considering a merger with SiriusXM. At the start of the Q&A portion of the call, the operator said,