iHeartMedia shares fell sharply on Tuesday, closing 62% lower after the US radio and audio group reported third-quarter earnings below its own guidance and cut its profit outlook for the rest of the year.

The shares closed at $0.68, down 61.58% from Monday's close of $1.77, on trading of 11.31 million shares, more than 13 times the recent average volume. The fall left the company valued at about $105 million, against total debt of more than $5 billion.

Revenue rose, but profits fell short

iHeartMedia reported third-quarter revenue of $1,030 million, up 3.3% on a year earlier. Excluding political advertising, revenue rose 0.9%. The figure was below the company's guidance for growth in the mid-single digits.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $170 million, from $205 million a year earlier, and below the $180 million to $220 million range the company had forecast. The company reported a loss of $0.06 per share, against a consensus estimate of a $0.02 loss.

The net loss narrowed to $8.2 million, from $65.8 million a year earlier, and the company swung to GAAP operating income of $73 million, compared with an operating loss of $116 million in the third quarter of 2025.

Radio weak, podcasting strong

The weakness was concentrated in broadcast radio. Revenue in the Multiplatform Group, which includes broadcast radio, networks and events, fell 4.9% to $562 million, and its adjusted EBITDA dropped to $68 million from $119 million a year earlier.

Digital audio performed far better. Digital Audio Group revenue rose 13.8% to $389 million, with podcast revenue up 24.6% to $174 million. The Audio and Media Services Group reported revenue of $82 million, up 22.6%, and adjusted EBITDA of $37 million, up 65.9%.

Chairman and chief executive Bob Pittman said core broadcast radio underperformed because television broadcasters expanded inventory and absorbed political advertising spending that would normally spill over to radio. He also pointed to some large advertisers delaying spending, a faster-than-expected shift towards programmatic ad buying, and a difficult economic backdrop.

Outlook cut

Investors reacted most strongly to the outlook. iHeartMedia guided fourth-quarter adjusted EBITDA to between $135 million and $185 million, and full-year adjusted EBITDA to between $550 million and $600 million, with about $50 million of free cash flow. The midpoint of the full-year range, $575 million, was well below analyst forecasts of about $777 million.

Net debt stood at about $4.7 billion, and third-quarter free cash flow was negative $10 million, although that was an improvement on the prior-year quarter. Cash and total available liquidity were $140 million and $416 million respectively at 30 September.

The company said it expects to report podcasting as a separate segment from 2027, reflecting the division's growth. The shares have fallen about 83% since the start of the year. This article reports market movements and is not investment advice.