iHeartMedia Q3 2026 slides: podcast gains offset by radio decline
On November 9, 2026, iHeartMedia (NASDAQ:IHRT) disclosed its third quarter 2026 financials, showing a mixed performance as robust podcast revenue could not fully compensate for declining traditional radio business. Overall revenue reached $1.03 billion, a modest 3.3% increase year-over-year, falling short of the anticipated $1.07 billion and prompting a 35% post-market stock drop to $1.15.
The results highlight the ongoing struggle for the largest audio company in the United States: while digital transformation is gaining traction, its growth hasn't sufficiently offset the decline in core radio operations. The Multiplatform Group, encompassing traditional broadcast radio, saw adjusted EBITDA plummet 43% to $68 million, compared to the guidance range of $180 million to $220 million. Consequently, consolidated adjusted EBITDA decreased to $170 million, down from $205 million in the same period last year.
Despite these challenges, iHeartMedia's Digital Audio Group led the charge with $389 million in revenue, up 13.8% year-over-year, fueled by strong podcast performance. Podcast revenue surged 24.4% to $174 million, while digital revenue, which excludes podcasts, grew 6.4% to $215 million. However, the segment adjusted EBITDA contracted 2.3% to $127 million, signaling margin compression to 32.8% from 38.1% in the previous year.
The Multiplatform Group, comprising the company's traditional radio operations, experienced the most significant setbacks, with revenue falling 4.9% to $562 million (down 7% excluding political advertising) and adjusted EBITDA dropping 42.9% to $68 million. Segment adjusted EBITDA contracted sharply to 12.1% from 20.2% in Q3 2025.
One notable bright spot was the Audio & Media Services Group, which reported a 22.6% revenue increase to $82 million and an impressive 65.9% jump in adjusted EBITDA to $38 million, achieving a 45.9% margin. The company's trade and barter arrangements, which have a timing mismatch, contributed to a notable EBITDA headwind, creating an approximately $100 million net negative impact in Q3 2026.
However, over the life of each contract, these arrangements ultimately neutralize their impact on cumulative adjusted EBITDA and free cash flow.
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