Cumulus Media (CMLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue declined 6.4% year-over-year to $187.3 million, driven by lower spot and network radio revenues, but partially offset by digital growth and strong performance in Digital Marketing Services (DMS), which grew 30%.

• Net loss widened to $32.4 million from $14.2 million in Q1 2024, with Adjusted EBITDA down 58.1% to $3.5 million, impacted by revenue declines and higher trade expenses.

• Cost efficiencies continued, with $7.5 million in annualized net fixed cost reductions executed in the quarter.

• Asset monetization and AI-driven operational improvements remain ongoing priorities.

• Class A common stock will be suspended from Nasdaq and begin trading on the OTCQB market as of May 2, 2025.

Financial highlights

• Broadcast radio revenue declined 10.6% year-over-year, while digital revenue grew 6.1% to $36.6 million, or 20.4% excluding the Daily Wire impact.

• DMS revenue up 30%, with customer count up 41% and average campaign order size up 16%.

• Streaming revenue increased 4% year-over-year; podcasting up 39% excluding Daily Wire, but down 13% including it.

• Operating loss was $14.8 million, compared to $10.5 million in Q1 2024; net loss per share was $(1.88) versus $(0.85) last year.

• Ended quarter with $52.7 million in cash; capital expenditures were $5.5 million.

Outlook and guidance

• Management expects macroeconomic conditions to continue impacting results but believes existing cash reserves and credit facilities will support liquidity needs for at least the next twelve months.

• Pacing for Q2 is down approximately 10%, or 5% excluding political, Daily Wire, and Bongino impacts.

• DMS is expected to surpass a $100 million revenue run rate by the end of next year.

• Network segment expected to face tougher comps in Q2 due to lack of sports programming and weak market demand.

• Strategies include platform-wide demand capture and continued cost discipline.