Declining radio revenue and sweeping layoffs on one side, aggressive cost-cutting and a radically reshaped balance sheet on the other. That is the balancing act depicted by Cumulus Media in its Q2 earnings report, as the broadcaster prepares to go private.
Second quarter net loss improved to $9.2 million, from $12.8 million in Q2 2025.
Net revenue fell 9.7% to $167.9 million in the second quarter, down from $186 million a year earlier. Broadcast radio, still Cumulus’ largest segment, took the biggest hit, with revenue falling 13.2% to $102.9 million. Spot revenue declined 10.6% to $81.4 million, while network revenue dropped 21.5% to $21.4 million.
Digital was comparatively steady, with revenue essentially flat at $38.7 million.
In the wake of widely publicized layoffs, Cumulus touted its cost-cutting, with second-quarter content costs falling 6.4% to $55.6 million, while selling, general, and administrative expenses declined 7.9% to $85.9 million.
The Chapter 11 bankruptcy, entered on March 4 to execute a prepackaged debt restructuring plan, is also doing some heavy lifting on Cumulus’ balance sheet. The company classified $1.04 billion in prepetition obligations as liabilities subject to compromise as of June 30. That included $697.1 million in debt, $171.2 million in financing liabilities, $100.5 million in operating lease liabilities, and $69.1 million in accounts payable and accrued expenses.
Once that debt is removed from the equation, Cumulus had $2 million in debt not subject to compromise at June 30, compared with $718.7 million at the end of 2025.
The bankruptcy court confirmed the plan in April, but the company has since pushed its self-imposed Emergence Milestone to October 27 while it waits for regulatory approvals, including FCC approval of its expected post-bankruptcy ownership structure.
Under the restructuring plan, Cumulus’ existing Class A and Class B common stock will be canceled. Lenders will receive new equity and convertible notes in exchange for the existing debt. Much of that ownership question traces back to Heath Freeman of Alden Global Capital, who is positioned to hold roughly 31.86% of the voting interest in reorganized Cumulus through an entity called Next Gen Radio Enterprises, according to Transfer of Control filings with the FCC that Radio Ink reported in July.
The company also continued trimming its station portfolio during the quarter, agreeing to sell four small-market properties for a combined $4.7 million. The stations are Nash Icon (WWFF) in Huntsville, AL; WQPD in Florence, South Carolina; Hot 106.7 (WWKL) in Harrisburg, Pennsylvania; and Sportsradio 96.7 (WLLF) in Youngstown, Ohio. The transactions remain subject to customary closing conditions, including regulatory approval.
Lastly, Cumulus included its legal win against Nielsen in its SEC filing. On July 13, the Second Circuit Court of Appeals affirmed a district court’s preliminary injunction blocking Nielsen from requiring Cumulus to purchase local market ratings data as a condition of accessing its national radio data. The Second Circuit’s decision sends the case back to the district court for further proceedings, leaving that fight on the company’s plate even as it works through the much larger challenge of emerging from Chapter 11.
