Cumulus Media Reports $187.3 Million Revenue in Q1 2025, Net Loss Widens to $32.4 Million

Cumulus Media Inc. reported a net revenue of $187.3 million for the first quarter of 2025, a decrease of 6.4% from $200.1 million in the same period of 2024. The decline in revenue was primarily attributed to a reduction in spot and network advertising revenues, which fell by $9.6 million and $5.2 million, respectively, due to challenging macroeconomic conditions. Despite this, digital advertising revenue increased by $2.1 million, driven by growth in digital marketing services, although this was partially offset by lower podcasting revenue. The company's operating loss widened to $14.8 million compared to a loss of $10.5 million in the prior year, reflecting a 41.1% increase in operating losses.

Cumulus Media's total operating expenses decreased to $202.1 million from $210.5 million year-over-year, primarily due to lower content costs, which fell by $5.7 million, or 6.7%, as a result of reduced syndicated programming and personnel costs. Selling, general, and administrative expenses also saw a slight decline of 1.5%, attributed to lower personnel costs and reduced rent expenses. However, corporate expenses decreased by 7.7%, indicating a focus on cost management. The company recorded a net loss of $32.4 million for the quarter, significantly higher than the $14.2 million loss reported in the same quarter of 2024.

In terms of strategic developments, Cumulus Media is transitioning its Class A common stock from the Nasdaq Global Market to the OTC Markets' OTCQB tier, effective May 2, 2025, due to non-compliance with Nasdaq listing rules. This move may impact the liquidity of its shares, as securities traded in the over-the-counter market are generally less liquid than those on national exchanges. The company continues to manage its long-term debt, which stood at $666.5 million as of March 31, 2025, with a focus on compliance with its debt covenants.

Operationally, Cumulus Media operates 400 radio stations across 84 markets and has a growing digital presence through its podcast network and digital marketing services. The company reported a decrease in cash and cash equivalents to $52.7 million, down from $63.8 million at the end of 2024. The company utilized $3.8 million in cash for operating activities during the quarter, a notable improvement from the $16.1 million used in the same period last year. Cumulus Media's management believes that its diverse content platforms and current cash reserves will support its liquidity needs for the foreseeable future, despite ongoing macroeconomic uncertainties.

Looking ahead, Cumulus Media remains cautious about the impact of current market conditions on its financial performance. The company is committed to evaluating opportunities for capital generation through potential divestitures and is focused on maintaining operational efficiency. The management's outlook suggests a continued emphasis on leveraging its extensive media assets to navigate the challenges posed by the evolving advertising landscape.