Cumulus Media Inc.

In Q2 2025, total revenue declined 9.2% year over year, or 5% excluding political and the Daily Wire/Dan Bongino comparisons. EBITDA was $22.4 million. Digital revenue was up 20% excluding those comparison items, and DMS revenue rose 38% year over year; network revenue was down approximately 20%. Expenses fell by approximately $16 million year over year, including about $10 million of fixed-cost reduction benefit, and the company executed $5 million of annualized fixed cost reductions in the quarter. Cash ended at $97 million, debt at maturity was $697 million, and net debt was $600 million excluding the $27 million principal debt reduction from the 2024 exchange offer. CapEx was $5.5 million in Q2, and full-year CapEx is now expected to be below the prior $22.5 million guide. For Q3, management said total revenue is pacing down low double digits, or down approximately mid-single digits excluding political and the Daily Wire/net of Bongino impacts.

Mary Berner framed the quarter as one of continued macro-driven pressure but strong execution in areas the company can control. She highlighted 11 straight quarters of ratings share growth in PPM markets, strong local digital marketing services momentum, and a push to use AI more aggressively across sales, operations, and productivity. Her tone was cautious on the near-term broadcast outlook, but confident that Cumulus can keep outperforming peers through localism, digital expansion, and cost discipline.

Frank Lopez-Balboa emphasized that revenue softness was still driven by weak national demand and comparison issues, while expenses were moving lower through prior and current cost actions. He pointed to the $22.4 million EBITDA, the 38% DMS growth, approximately $16 million of lower total expenses year over year, and the additional $5 million of annualized fixed cost reductions in Q2, bringing total fixed cost reductions since 2019 to $170 million plus the latest savings. He also reviewed liquidity and leverage: $97 million of cash, $697 million of debt at maturity, $600 million of net debt excluding the exchange-offer adjustment, a $55 million ABL draw, CapEx of $5.5 million, and expected noncore asset sales of nearly $14 million by year-end.

Analysts asked whether lower interest rates could improve national advertising pacing, and management said they still are not seeing improvement yet, though they believe a lower-rate environment should help eventually. Questions also focused on referral search traffic and potential pressure on the DMS business; management said search is a very small part of digital, DMS relies more on geo-targeting and other non-search channels, but acknowledged that lower search traffic could modestly affect ROI and said they would keep optimizing campaigns. On podcasts and expenses, management said podcast growth is being driven by new shows, audience growth, and better multi-platform packaging, while cost savings will continue but should be more modest after already taking out $175 million of fixed costs since 2019.