Cumulus Media (CMLS) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenue declined 11.5% year-over-year to $180.3 million, with a net loss of $20.4 million, nearly double the prior year's loss, and Adjusted EBITDA of $16.7 million, down 30.8%.

• Digital marketing services revenue grew 34% year-over-year, now representing about half of total digital revenue, while digital revenue excluding discontinued relationships increased 8.4%.

• Annualized fixed cost reductions reached $7 million in Q3, totaling $22 million year-to-date and $182 million since 2019, with AI-driven initiatives supporting improved margins and liquidity.

• Market share gains were achieved in both broadcast spot and digital revenue, despite industry and macroeconomic headwinds.

• For the nine months ended September 30, 2025, net revenue fell 9.0% to $553.6 million, and net loss increased to $65.6 million from $52.2 million in the prior year period.

Financial highlights

• Spot and network broadcast revenues declined significantly, with spot revenue down $12.7 million (13.1%) and network revenue down $11.2 million (26.5%) in Q3 2025.

• Digital revenue decreased 2.6% year-over-year, but excluding Daily Wire and Dan Bongino, digital revenue rose 8.4%.

• DMS business grew 34% year-over-year, marking the third consecutive quarter of 30%+ growth.

• Content costs dropped 21.1% in Q3, reflecting lower revenue share, personnel, and broadcast rights expenses.

• Operating expenses decreased by $12 million year-over-year.

Outlook and guidance

• Q4 revenue is pacing down mid-single digits excluding Political, The Daily Wire, and Dan Bongino; including these, pacing down mid to high teens.

• Management expects current cash reserves and credit facility access to cover liquidity needs for at least the next twelve months, assuming stable macroeconomic conditions.

• Ongoing macroeconomic uncertainty could impact cash flows and may require alternative liquidity strategies.

• Continued investment in digital growth and cost-cutting measures expected.

• Management does not expect current advertising headwinds to abate in the near term but remains focused on optimizing performance and long-term positioning.