Digital audio revenue growth continues to help offset lags in the traditional radio segment for iHeartMedia.
In its quarterly report for the three months ending June 30, the media company reported revenue of $977 million, up 4.7% from the same period a year earlier. Excluding political revenue, Q2 revenue was up 3.5%, according to a filing with the U.S. Securities and Exchange Commission.
But revenue gains did not prevent a net loss of $82.5 million for the quarter.
“Our work in building our digital assets, including podcasting, continues to pay off,” said iHeartMedia CEO Bob Pittman.
Its Digital Audio Group earnings for the sixth straight quarter outpaced earnings of the Multiplatform Group, which includes the company’s broadcast radio stations and radio networks.
Pittman said he expects that trend to continue.
Additionally, iHeartMedia said it continues its drive for efficiencies in all areas of the company using AI and other technology tools. That drive has caused employment pains for the company workforce in recent months.
Listener trends
In defense of the consumer end of its Multiplatform Group, Pittman pointed to over-the-air radio’s listenership when compared to declines in other traditional media over the last two decades.
iHeart’s terrestrial stations, Pittman said, have “two times the audience of the largest TV network” and “four times the audience reach of the largest digital-only ad-supported audio service.”
A decline in broadcast revenue, Pittman argued, is one that is counterintuitive, given radio’s strength with the consumer.
“As I’ve said before, we don’t have a broadcast radio audience challenge,” he said, “we have a broadcast radio monetization challenge.”
Q2 notes and findings
In the second quarter, iHeartMedia reported that its Digital Audio Group revenue was $364 million, up by 12% from last year, including Podcast Revenue of $162 million, up 21%.
Again, those revenue totals are lower when excluding political revenue for the quarter.
The Multiplatform Group posted revenue of $536 million, down about 2% year over year. Excluding political, Multiplatform Group revenue dipped 3%.
Within that segment, radio station broadcast revenue climbed slightly to $397 million, but Premiere Networks dropped almost 4% YoY to $103 million in the quarter.
Revenue from iHeart’s Audio & Media Services Group climbed 18.8% in the quarter, from $67 million the year prior to $80 million, and up 10.6% excluding political advertising. That division includes Katz Media Group and RCS.
Company officials said cost reductions are expected to add up to $125 million in-year annualized cost savings for 2026.
As Radio World reported in June, the broadcaster underwent a massive reduction in workforce earlier this summer. In the chart below, “HC Reductions” refers to head count cuts:
iHeart’s total debt was approximately $5 billion as of June 30, according to the SEC filing.
The company also said it has extended the maturity date of existing $450 million asset-based revolving credit facility from May of this year until Jan. 30, 2029.
Capital expenditures in the first six months of this year were $41 million, the company reported, up slightly from the previous year same period.
Management noted continued expansion into video podcasting models via platforms like Netflix and Hulu, alongside further programmatic ad ecosystem integrations.
The company expects political advertising to be robust in the back half of 2026.
“Some people are saying it may be as big as the presidential year,” Pittman said on Monday’s earnings call. “That remains to be seen, although the early indications are it’s probably performing at that level.”
The company’s consolidated revenue in the third quarter of 2026 is expected to be up mid-single digits compared to the prior year.
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