iHeartMedia’s Q1 revenue grew 9.6%, but that headline number wasn’t all that management led its earnings call with: the company announced a third round of cost reductions and a commitment to returning broadcast to profitability growth before year-end.
The new phase adds $50 million in annualized savings beginning in the second half of 2026, bringing the full modernization program to $150 million in total annualized reductions consisting of AI adoption, layoffs, vendor consolidation, and occupancy. Again, the Multiplatform Group, which contains the company’s AM/FM portfolio, absorbs the largest share of savings.
iHeart CEO Bob Pittman framed the initiative as ongoing rather than reactive. “We continually reevaluate our organizational structure, flatten layers of management, and push the adoption of new technologies and tools, including AI, to improve our operating efficiency,” he said.
As for its Q1 financial performance, the broadcaster posted Q1 revenue of $884 million, up 9.6% year over year, while its net loss narrowed to $95.6 million from $280.9 million in the prior-year period.
The Digital Audio Group was the quarter’s clearest bright spot. Podcast revenue reached $147.2 million, up 26.9% year over year and ahead of guidance. Broadcast programmatic was the other major growth narrative. iHeart expects roughly $200 million in total programmatic revenue in 2026, up approximately 50% from $135 million last year. President and COO Rich Bressler drew a parallel to podcasting’s trajectory, suggesting programmatic is following a similar growth curve.
On the broadcast side, Multiplatform Group revenue rose 4.3% to $493 million, with broadcast radio revenue up 6.1% to $361.4 million. Spot revenue declined amid uncertain market conditions, with the gains driven primarily by non-cash trade activity.
A favorable tax development also bolstered the cash picture. Changes to US tax law allow iHeartMedia to effectively eliminate cash tax payments in 2026 and for the next two to three years, assuming current law holds. Bressler estimated the preserved cash at $150 to $200 million through 2028.
Notably headed off before the Q&A: any discussion of the rumored talks of a merger with SiriusXM, leaving the deal’s status no clearer than it was after SiriusXM’s own earnings call earlier this month.
