iHeartMedia Q1 Earnings: Podcast Growth Fails to Offset Soft Ad Revenue

iHeartMedia reported a rise in revenue for the first quarter of 2026, though a softening advertising market hampered the company’s overall profitability, according to reporting from Billboard.

In a Q1 earnings release published on May 11, 2026, the company disclosed that revenue increased nearly 10% to $884 million for the quarter that ended March 31, 2026. Despite the top-line growth, the company saw a decline in its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a metric used to gauge profitability.

Adjusted EBITDA fell 11.4% to $93 million. Company executives attributed this decline to a weak advertising market and the fact that certain marketing expenses were incurred earlier in the year than the company had originally anticipated.

The company’s cash position also showed significant volatility. While cash provided by operating activities generated $93 million, the company’s free cash flow—the capital remaining after operational and capital expenses—was negative $114 million.

iHeartMedia ended the quarter with a cash balance of $135 million, with total available liquidity remaining under $500 million.

Digital Growth and Podcasting Momentum

The company’s digital segment provided a strong counterweight to its traditional operations. Revenue from the digital audio group rose nearly 20% to $327 million.

A primary driver of this growth was the podcasting business, which generated $180 million in revenue. This figure represents a 27% increase compared to the same quarter the previous year.

Despite the significant revenue jump in digital audio, the segment’s adjusted EBITDA remained flat at $87 million compared to a year ago.

Broadcast Radio Performance

The company’s multiplatform group, which manages more than 860 broadcast radio stations and high-profile programming such as The Breakfast Club with Charlamagne Tha God, also saw a modest increase in revenue.

Revenue for the multiplatform group rose 4% to $493 million. However, profitability in the broadcast sector faced steeper declines than the company’s overall average.

Adjusted EBITDA for the multiplatform group fell 33% to $47 million, resulting in an adjusted EBITDA margin of 9.5%.

Future Guidance and Debt Obligations

Looking ahead, iHeartMedia is preparing for substantial debt repayments scheduled to begin in 2028.

To manage these obligations, executives expressed optimism that growth in podcasting and an increase in political advertising during the second half of 2026 would bolster the company’s financials.

The company has set a full-year EBITDA guidance of $800 million and is targeting $200 million in free cash flow for the year.

Merger Speculation

During the earnings call, iHeartMedia addressed recent media reports suggesting the company was exploring a potential merger with satellite media firm SiriusXM.

The company declined to provide any details regarding the rumors. At the start of the question-and-answer portion of the call, the operator stated:

Our company does not comment on rumors or speculation.

iHeartMedia Operator