Cumulus Media Reports Operating Results for the First Quarter 2025
- Digital revenue grew 6.1% YoY to $36.6 million, now representing 20% of total revenue
- Digital marketing services showed strong growth of 30%
- Streaming revenue increased by 4%
- Implemented $7.5 million in annualized fixed cost reductions
- Maintained healthy cash position of $52.7 million
- Total net revenue declined 6.4% YoY to $187.3 million
- Net loss increased significantly to $32.4 million from $14.2 million in Q1 2024
- Broadcast radio revenue dropped 10.6% to $124.9 million
- Adjusted EBITDA decreased 58.1% to $3.5 million from $8.4 million
- High debt level of $670.2 million with significant portions due in 2026 and 2029
Insights
Cumulus Media's Q1 2025 shows deepening losses amid revenue decline, though digital segment offers growth bright spot.
Cumulus Media's Q1 2025 results reveal a concerning deterioration in financial performance. Total revenue declined
The core broadcast radio business continues to face structural challenges, with broadcast revenue down
The digital segment provides the only meaningful growth area, increasing
Cash reserves declined from
Management's attribution of performance challenges to "worsening economic headwinds" and tariff impacts on consumer sentiment suggests external factors beyond their control, though these same conditions haven't prevented the digital segment from growing. The substantial underperformance in traditional radio versus digital highlights the accelerating structural shift in media consumption patterns that continues to challenge Cumulus's core business model.
ATLANTA, May 01, 2025 (GLOBE NEWSWIRE) -- Cumulus Media Inc. (NASDAQ: CMLS) (the "Company," "Cumulus Media," "we," "us," or "our") today announced operating results for the three months ended March 31, 2025.
Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, "For the first quarter, we delivered revenue in line with pacing guidance despite worsening economic headwinds reflecting, among other things, the imposition of tariffs that have depressed both consumer and advertiser sentiment. However, with that backdrop, what remains constant is our relentless focus on actions to mitigate the impacts of the macro environment. For example, we accelerated growth in our digital marketing services business, which was up
Q1 Key Highlights:
- Posted total net revenue of
$187.3 million , a decline of6.4% year-over-year - Generated digital revenue of
$36.6 million , an increase of6.1% year-over-year despite the loss of the Daily Wire relationship, or an increase of20.4% excluding the impact of Daily Wire
- Digital revenue represented
20% of total revenue - Digital marketing services grew
30% driven by investments made in sales, support and fulfillment capabilities - Streaming increased by
4% driven by better monetization of the Company’s streaming inventory - Podcasting decreased by
13% or increased by39% when excluding the impact of the Daily Wire relationship with the ex-Daily Wire increase driven by the addition of new shows and growth in existing shows
- Digital revenue represented
- Recorded net loss of
$32.4 million compared to net loss of$14.2 million in Q1 2024 - Executed actions resulting in
$7.5 million of annualized fixed cost reductions - Recorded Adjusted EBITDA(1) of
$3.5 million compared to$8.4 million in Q1 2024 - Reported total debt(2)(3) of
$670.2 million , total debt at maturity(1)(2)(3) of$642.1 million , and net debt less total unamortized discount(1)(2)(3) of$589.4 million at March 31, 2025, including total debt due in 2026(3) of$23.9 million - Ended quarter with
$52.7 million of cash
Operating Summary (dollars in thousands, except percentages and per share data):
For the three months ended March 31, 2025, the Company reported net revenue of
| As Reported | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | |||||||
| Net revenue | $ | 187,349 | $ | 200,053 | (6.4 | )% | ||||
| Net loss | $ | (32,367 | ) | $ | (14,154 | ) | (128.7 | )% | ||
| Adjusted EBITDA | $ | 3,519 | $ | 8,405 | (58.1 | )% | ||||
| Basic loss per share | $ | (1.88 | ) | $ | (0.85 | ) | (121.2 | )% | ||
| Diluted loss per share | $ | (1.88 | ) | $ | (0.85 | ) | (121.2 | )% | ||
Revenue Detail Summary (dollars in thousands):
| As Reported | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | |||||||
| Broadcast radio revenue: | ||||||||||
| Spot | $ | 80,964 | $ | 90,573 | (10.6 | )% | ||||
| Network | 43,933 | 49,162 | (10.6 | )% | ||||||
| Total broadcast radio revenue | 124,897 | 139,735 | (10.6 | )% | ||||||
| Digital | 36,565 | 34,447 | 6.1 | % | ||||||
| Other | 25,887 | 25,871 | 0.1 | % | ||||||
| Net revenue | $ | 187,349 | $ | 200,053 | (6.4 | )% | ||||
Balance Sheet Summary (dollars in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
| Cash and cash equivalents | $ | 52,694 | $ | 63,836 | ||||
| Term Loan due 2026 (3) | $ | 1,203 | $ | 1,203 | ||||
| Senior Notes due 2026 (3) | $ | 22,697 | $ | 22,697 | ||||
| Term Loan due 2029 (2) (3) | $ | 325,802 | $ | 326,514 | ||||
| Senior Notes due 2029 (2) (3) | $ | 320,463 | $ | 321,181 | ||||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||
| Capital expenditures | $ | 5,540 | $ | 8,166 | |||
(1) Adjusted EBITDA, total debt at maturity and net debt less total unamortized discount are not financial measures calculated or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For additional information, see "Non-GAAP Financial Measures."
(2) The exchange offer was accounted for as a debt modification resulting in a prospective yield adjustment and the carrying value was not changed. The
(3) Excludes any debt issuance costs.
Earnings Conference Call Details
The Company will host a conference call today at 8:30 AM ET to discuss its first quarter 2025 operating results. NetRoadshow (NRS) is the service provider for this call. They will require email address verification (one-time only) and will provide registration confirmation. To participate in the conference call, please register in advance using the link on the Company's investor relations website at www.cumulusmedia.com/investors. Upon completing registration, a calendar invitation will follow with call access details, including a unique PIN, and replay details.
To join by phone with operator-assisted dial-in, domestic callers should dial 833-470-1428 and international callers should dial 404-975-4839. If prompted, the participant access code is 624457. Please call five to ten minutes in advance to ensure that you are connected prior to the call.
The conference call will also be broadcast live in listen-only mode through a link on the Company’s investor relations website at www.cumulusmedia.com/investors. This link can also be used to access a recording of the call, which will be available shortly following its completion.
Please see an update to the Company’s investor presentation on the Company's investor relations website at www.cumulusmedia.com/investors, which may be referenced on the conference call. Unless otherwise specified, information contained in the investor presentation or on our website is not incorporated into this press release or other documents we file with, or furnish to, the SEC.
Forward-Looking Statements
Certain statements in this release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our intent, belief or current expectations primarily with respect to our future operating, financial, and strategic performance and our plans and objectives. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to differ from those contained in or implied by the forward-looking statements as a result of various factors. Such factors include, among others, risks and uncertainties related to the implementation of our strategic operating plans, the continued uncertain financial and economic conditions, the rapidly changing and competitive media industry, and the economy in general. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the "Risk Factors," and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections contained therein. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control, and the unexpected occurrence or failure to occur of any such events or matters could cause our actual results, performance, financial condition or achievements to differ materially from those expressed or implied by such forward-looking statements. Cumulus Media assumes no responsibility to update any forward-looking statements, which are based upon expectations as of the date hereof, as a result of new information, future events or otherwise.
About Cumulus Media
Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 400 owned-and-operated radio stations across 84 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, Infinity Sports Network, AP News, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. For more information visit www.cumulusmedia.com.
Non-GAAP Financial Measures
From time to time, we utilize certain financial measures that are not prepared or calculated in accordance with GAAP to assess our financial performance and profitability. Consolidated adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is a financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company as a whole. Management also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and the funding of our non-operating expenses including debt service and acquisitions. In addition, consolidated Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our credit agreements.
In determining Adjusted EBITDA, we exclude the following from net (loss) income: interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale, or disposal of any assets or stations or early extinguishment of debt, restructuring costs, expenses relating to acquisitions and divestitures, non-routine legal expenses incurred in connection with certain litigation matters, and non-cash impairments of assets, if any.
Management believes that Adjusted EBITDA, with and excluding impact of political advertising, although not a measure that is calculated in accordance with GAAP, is commonly employed by the investment community as a measure for determining the market value of a media company and comparing the operational and financial performance among media companies. Management has also observed that Adjusted EBITDA, with and excluding impact of political advertising, is routinely utilized to evaluate and negotiate the potential purchase price for media companies. Given the relevance to our overall value, management believes that investors consider these metrics to be extremely useful.
The Company presents revenue, excluding impact of political revenue. As a result of the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting net revenue, excluding impact of political revenue, provides useful information to investors about the Company’s revenue growth comparable from period to period.
The Company presents the non-GAAP financial measure total debt at maturity which is total debt principal, gross, less total unamortized debt discount. In addition, the Company presents the non-GAAP financial measure net debt less total unamortized discount which is total debt at maturity less cash and cash equivalents. Management believes that total debt at maturity and net debt less total unamortized discount are important measures to monitor leverage and evaluate the balance sheet.
We refer to Adjusted EBITDA, with and excluding the impact of political advertising, net revenue, excluding the impact of political revenue, total debt at maturity, and net debt less total unamortized discount as the "Non-GAAP Financial Measures." Non-GAAP Financial Measures should not be considered in isolation or as a substitute for net income, net revenue, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Non-GAAP Financial Measures may be defined or calculated differently by other companies and, therefore, comparability may be limited.
For further information, please contact:
Cumulus Media Inc.
Investor Relations Department
IR@cumulus.com
404-260-6600
Supplemental Financial Data and Reconciliations
| Cumulus Media Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net revenue | $ | 187,349 | $ | 200,053 | ||||
| Operating expenses: | ||||||||
| Content costs | 79,331 | 85,057 | ||||||
| Selling, general & administrative expenses | 93,379 | 94,760 | ||||||
| Depreciation and amortization | 14,796 | 14,878 | ||||||
| Corporate expenses | 11,300 | 12,630 | ||||||
| Stock-based compensation expense | 849 | 1,072 | ||||||
| Restructuring costs | 2,468 | 2,130 | ||||||
| Total operating expenses | 202,123 | 210,527 | ||||||
| Operating loss | (14,774 | ) | (10,474 | ) | ||||
| Non-operating expense: | ||||||||
| Interest expense | (16,022 | ) | (17,360 | ) | ||||
| Interest income | 86 | 346 | ||||||
| Other (expense) income, net | (10 | ) | 14,833 | |||||
| Total non-operating expense, net | (15,946 | ) | (2,181 | ) | ||||
| Loss before income taxes | (30,720 | ) | (12,655 | ) | ||||
| Income tax expense | (1,647 | ) | (1,499 | ) | ||||
| Net loss | $ | (32,367 | ) | $ | (14,154 | ) | ||
The following tables reconcile net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the periods presented herein (dollars in thousands):
| As Reported | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||
| GAAP net loss | $ | (32,367 | ) | $ | (14,154 | ) | ||
| Income tax expense | 1,647 | 1,499 | ||||||
| Non-operating expense, net (includes net interest expense) | 15,946 | 2,181 | ||||||
| Depreciation and amortization | 14,796 | 14,878 | ||||||
| Stock-based compensation expense | 849 | 1,072 | ||||||
| Restructuring costs | 2,468 | 2,130 | ||||||
| Non-routine legal expenses | — | 608 | ||||||
| Franchise taxes | 180 | 191 | ||||||
| Adjusted EBITDA | $ | 3,519 | $ | 8,405 | ||||
The following tables reconcile the as reported net revenue and as reported Adjusted EBITDA, both including and excluding the impact of political, for the periods presented herein (dollars in thousands):
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||
| As reported net revenue | $ | 187,349 | $ | 200,053 | ||||
| Political revenue | (832 | ) | (2,199 | ) | ||||
| As reported net revenue, excluding impact of political revenue | $ | 186,517 | $ | 197,854 | ||||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||
| As reported Adjusted EBITDA | $ | 3,519 | $ | 8,405 | ||||
| Political EBITDA | (749 | ) | (1,979 | ) | ||||
| As reported Adjusted EBITDA, excluding impact of political EBITDA | $ | 2,770 | $ | 6,426 | ||||
The following table reconciles total debt principal, gross, the most directly comparable financial measure calculated and presented in accordance with GAAP, to total debt at maturity and net debt less total unamortized discount (dollars in thousands):
| As of March 31, | ||||||||
| 2025 | 2024 | |||||||
| Total debt principal, gross | $ | 670,165 | $ | 675,755 | ||||
| Less: Total unamortized discount | (28,048 | ) | — | |||||
| Total debt at maturity | 642,117 | 675,755 | ||||||
| Less: Cash and cash equivalents | (52,694 | ) | (68,339 | ) | ||||
| Net debt less total unamortized discount | $ | 589,423 | $ | 607,416 | ||||
FAQ
What were Cumulus Media's (CMLS) Q1 2025 earnings results?
How did Cumulus Media's digital revenue perform in Q1 2025?
What is Cumulus Media's current debt situation as of Q1 2025?
How much did Cumulus Media's broadcast radio revenue decline in Q1 2025?
What cost-reduction measures did Cumulus Media implement in Q1 2025?
