IHRT

• Overall Financial Results

  • Consolidated Q2 2026 revenue was $977 million, up 4.7% YoY, exceeding guidance of low single-digit growth; excluding political advertising, revenue was up 3.5% YoY.
  • Adjusted EBITDA came in at $152 million, slightly above the midpoint of the prior guidance range of $140 million to $160 million.
  • Free cash flow was $46 million in Q2 2026, compared to negative $13 million in the prior year quarter.
  • This is the sixth consecutive quarter where Digital Audio Group adjusted EBITDA exceeded Multi-platform Group adjusted EBITDA, a trend management expects to continue even after Multi-platform returns to growth.

• Digital and Podcast Growth Initiatives

  • Podcasting momentum continues: iHeart holds the number one podcast audience in the U.S. (per PodTrack and Triton), and management believes it is the most profitable podcast business in the country, with margins accretive to total company margins.
  • iHeart is expanding into the high-growth video podcast space, leveraging its existing broadcast radio audience to grow listenership. It is already the most successful video podcaster on Netflix, and recently announced a new partnership to bring six iHeart podcast titles to Disney's Hulu streaming service.
  • 50% of podcast revenue is generated by iHeart's local market sales force, creating a unique growth advantage over pure-play digital podcast competitors.

• Broadcast Radio Monetization Strategy

  • Broadcast radio maintains a larger audience today than it did 20 years ago: it has twice the audience of the largest TV network, and four times the reach of the largest digital-only ad-supported audio service. The core opportunity for the segment is improving monetization, not growing audience.
  • To address advertiser demand for digital buying compatibility, iHeart is adding its broadcast radio inventory to major demand-side platforms (DSPs) including Amazon, Google, and Yahoo, and expanding programmatic and audiograph offerings for digital planning and buying platforms. This improvement is expected to lift radio revenue performance for iHeart and the broader industry.

• Balance Sheet Update

  • iHeart amended and extended its existing ABL credit facility, maintaining the $450 million facility size and current pricing, while extending the maturity from May 2027 to January 2029.
  • The company expects to pay down its outstanding AEBL balance by the end of 2026 using free cash flow, and has already retired its outstanding 6 3/8 notes and stub term loan facilities.

• Advertising Diversification

  • No single advertising category makes up more than 5% of total advertising revenue, and no individual advertiser accounts for more than 2% of total revenue, creating significant diversification benefit. Top growing categories in Q2 were political, gambling, computers/electronics/appliances, and professional services; top declining categories were telecom, financial services, auto, and food and beverage.

• Third Quarter 2026 Guidance

  • Consolidated revenue is expected to be up mid-single digits YoY, with early July results pointing to low single-digit YoY growth.
  • Adjusted EBITDA is expected to come in between $180 million and $220 million.
  • Segment-level expectations: Digital Audio Group revenue up low teens YoY (podcast revenue up ~20%, non-podcast digital up mid-single digits); Multi-platform Group revenue approximately flat YoY; Audio and Media Services Group revenue up ~20% YoY.

• Full Year 2026 Guidance

  • Full year adjusted EBITDA guidance of $800 million is reaffirmed, as is full year free cash flow guidance of $200 million. Guidance is predicated on some improvement in macroeconomic and advertising conditions, especially in Q4, and a robust political advertising season.
  • iHeart expects total 2026 programmatic revenue of ~$200 million, up ~50% from $135 million in 2025, with broadcast programmatic revenue expected to follow a similar growth trajectory to podcast revenue.
  • Full year interest expense is expected to be ~$440 million, capital expenditures ~$90 million, and cash restructuring expenses ~$50 million. Minimal cash taxes are expected for 2026 and the next several years under current tax law, saving ~$150 million to $200 million over three years.
  • Net leverage ratio at the end of 2026 is expected to be in the mid-fives, representing a full turn improvement YoY.
  • Management continues to expect 2026 to be a robust midterm election year for political advertising, with the vast majority of political revenue coming in H2 2026, concentrated in Q4.

1. Digital Audio Group: Q2 2026 revenue was $364 million, up 12.4% year-over-year (YoY), contributing 37.3% of total consolidated revenue. Adjusted EBITDA was $123 million, up 14.5% YoY, with an adjusted EBITDA margin of 33.8%. Within the segment, podcast revenue was $162 million, up 20.7% YoY, and digital non-podcast revenue grew 6.6% YoY to $202 million. 50% of podcast revenue comes from the local sales force.
2. Multi-platform Group (includes broadcast radio, networks, events): Q2 2026 revenue was $536 million, down 1.6% YoY, contributing 54.9% of total consolidated revenue. Excluding political advertising, revenue was down 2.8% YoY. Adjusted EBITDA was $59 million, down from $96 million YoY. Non-cash marketing expenses drove most of the adjusted EBITDA decline this quarter.
3. Audio and Media Services Group (includes CATS TV, CATS Radio, RCS): Q2 2026 revenue was $80 million, up 18.8% YoY, contributing 8.2% of total consolidated revenue. Excluding political advertising, revenue was up 10.6% YoY. Adjusted EBITDA was $37 million, up 54.6% YoY, driven by digital revenue growth and operating efficiencies.

• Macroeconomic uncertainty, including elevated gas and diesel prices, negatively impacted Multi-platform Group revenue in Q2 2026, and continued uncertainty could pressure advertising revenue in the back half of the year.
  • Multi-platform Group revenue currently underperforms relative to its large audience size due to advertiser preference for digital buying infrastructure, which iHeart is still in the process of building out for broadcast inventory. It will take time for this change to flow through to improved revenue results.
  • Political advertising revenue, which is a key component of 2026 full year guidance, is concentrated in the second half of the year, particularly Q4, so any slowdown in political spending would have an outsize impact on full year results.
  • Non-cash co-marketing partnerships, which support the development of broadcast programmatic and audience initiatives, reduced Multi-platform Group adjusted EBITDA in Q2 2026, though these expenses are expected to decline in H2 2026.

Q: With the November midterm elections approaching, how is political advertising activity shaping up, and what is your go-to-market strategy for this cycle? / A: Management expects 2026 to be a very large political cycle, with early indications pointing to revenue levels similar to a presidential election year rather than a typical midterm. iHeart is engaging with all campaign stakeholders at both the local and national level. As TV broadcasters sell out their inventory, broadcast radio historically benefits from overflow political ad spending, a dynamic that is expected to hold this cycle.

Q: Can you explain the new Hulu video podcast partnership, and how it compares to your existing relationship with Netflix? How do you expect these partnerships to evolve? / A: Each deal is customized to fit the partner's overall content strategy: Netflix already carries The Breakfast Club as the only live daily show on its platform, an unplanned expansion that grew out of the initial partnership. Management expects the Hulu relationship to evolve similarly as performance data comes in, and is in ongoing discussions with other streaming platforms for additional video podcast partnerships.

Q: Excluding barter/trade impacts, how would you characterize the health of the underlying ad environment entering the back half of the year? / A: Management is cautiously optimistic, noting that ad demand has been more resilient than expected despite widespread macro uncertainty, as advertisers still need to sell products and build brands regardless of economic conditions. iHeart is well-positioned in this environment: its diversified multi-platform offering lets advertisers meet most of their needs with one partner, and new programmatic tools let it deliver the measurable ROI advertisers now prioritize.

Q: Full year guidance implies very strong Q4 EBITDA to hit the $800 million target. What core components support this outlook? / A: The guidance embeds a robust political ad season, with overflow spending from sold-out TV inventory shifting to radio as seen in past strong political cycles. It also includes continued double-digit growth in podcasting (including incremental new revenue from Netflix and Hulu video podcast deals), and growing contributions from broadcast programmatic, which will be available on the Amazon DSP in Q4. Geographic and category diversification limits downside from any single weak area, and accumulated cost savings also support the full year target.