iHeartMedia, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS IHEARTMEDIA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) March 31, 2025 December 31, 2024 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 167,714 $ 259,580 Accounts receivable, net of allowance of $ 27,253 in 2025 and $ 36,552 in 2024 817,533 993,328 Prepaid expenses 140,005 97,332 Other current assets 34,309 11,602 Total Current Assets 1,159,561 1,361,842 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 464,842 489,843 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 809,928 809,928 Other intangibles, net 873,863 927,582 Goodwill 1,105,270 1,105,156 OTHER ASSETS Operating lease right-of-use assets 656,583 668,165 Other assets 198,046 209,180 Total Assets $ 5,268,093 $ 5,571,696 CURRENT LIABILITIES Accounts payable $ 209,967 $ 253,264 Current operating lease liabilities 68,765 69,516 Accrued expenses 208,686 348,119 Accrued interest 54,353 22,535 Deferred revenue 165,550 154,345 Current portion of long-term debt 22,511 22,501 Total Current Liabilities 729,832 870,280 Long-term debt 5,032,066 5,048,968 Noncurrent operating lease liabilities 705,569 716,586 Deferred income taxes 239,116 102,898 Other long-term liabilities 207,633 204,744 Commitments and contingent liabilities (Note 6) STOCKHOLDERS' DEFICIT Noncontrolling interest 5,245 5,289 Preferred stock, par value $ 0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding — — Class A Common Stock, par value $ 0.001 per share, 1,000,000,000 shares authorized, issued and outstanding 128,285,283 and 127,474,033 shares in 2025 and 2024, respectively 128 128 Class B Common Stock, par value $ 0.001 per share, authorized 1,000,000,000 shares, issued and outstanding 21,187,567 and 21,285,914 shares in 2025 and 2024, respectively 21 21 Special Warrants, 5,039,323 issued and outstanding in each of 2025 and 2024 — — Additional paid-in capital 2,983,169 2,975,703 Accumulated deficit ( 4,621,307 ) ( 4,340,083 ) Accumulated other comprehensive loss ( 1,783 ) ( 1,885 ) Cost of shares ( 1,879,575 in 2025 and 1,587,031 in 2024) held in treasury ( 11,596 ) ( 10,953 ) Total Stockholders' Deficit ( 1,646,123 ) ( 1,371,780 ) Total Liabilities and Stockholders' Deficit $ 5,268,093 $ 5,571,696 See Notes to Consolidated Financial Statements 1 IHEARTMEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (In thousands, except per share data) Three Months Ended March 31, 2025 2024 Revenue $ 807,101 $ 799,038 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 356,326 341,360 Selling, general and administrative expenses (excludes depreciation and amortization) 380,794 385,144 Depreciation and amortization 91,901 105,162 Impairment charges 2,855 1,508 Other operating expense 659 572 Operating loss ( 25,434 ) ( 34,708 ) Interest expense, net 100,386 95,515 Gain (loss) on investments, net ( 18,594 ) 91,994 Equity in earnings (loss) of nonconsolidated affiliates 50 ( 45 ) Loss on extinguishment of debt ( 1,197 ) — Other income (expense), net 37 ( 496 ) Loss before income taxes ( 145,524 ) ( 38,770 ) Income tax benefit (expense) ( 135,359 ) 20,662 Net loss ( 280,883 ) ( 18,108 ) Less amount attributable to noncontrolling interest 341 400 Net loss attributable to the Company $ ( 281,224 ) $ ( 18,508 ) Other comprehensive income (loss), net of tax Foreign currency translation adjustments 102 ( 219 ) Other comprehensive income (loss), net of tax 102 ( 219 ) Comprehensive loss ( 281,122 ) ( 18,727 ) Less amount attributable to noncontrolling interest — — Comprehensive loss attributable to the Company $ ( 281,122 ) $ ( 18,727 ) Net loss attributable to the Company per common share: Basic $ ( 1.84 ) $ ( 0.12 ) Weighted average common shares outstanding - Basic 152,480 149,795 Diluted $ ( 1.84 ) $ ( 0.12 ) Weighted average common shares outstanding - Diluted 152,480 149,795 See Notes to Consolidated Financial Statements 2 IHEARTMEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED) (In thousands, except share data) Controlling Interest Common Shares (1) Non- controlling Interest Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Treasury Stock Class A Shares Class B Shares Special Warrants Total Balances at December 31, 2024 127,474,033 21,285,914 5,039,323 $ 5,289 $ 149 $ 2,975,703 $ ( 4,340,083 ) $ ( 1,885 ) $ ( 10,953 ) $ ( 1,371,780 ) Net income (loss) 341 — — ( 281,224 ) — — ( 280,883 ) Vesting of restricted stock and other 712,903 — — — — — ( 643 ) ( 643 ) Share-based compensation — — 7,466 — — — 7,466 Dividend declared and paid to noncontrolling interests ( 385 ) — — — — — ( 385 ) Conversion of Class B Shares to Class A Shares 98,347 ( 98,347 ) — — — — — — — Other comprehensive income — — — — 102 — 102 Balances at March 31, 2025 128,285,283 21,187,567 5,039,323 $ 5,245 $ 149 $ 2,983,169 $ ( 4,621,307 ) $ ( 1,783 ) $ ( 11,596 ) $ ( 1,646,123 ) (In thousands, except share data) Controlling Interest Common Shares (1) Non- controlling Interest Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Treasury Stock Class A Shares Class B Shares Special Warrants Total Balances at December 31, 2023 124,299,288 21,347,363 5,101,870 $ 9,397 $ 146 $ 2,947,096 $ ( 3,330,142 ) $ ( 1,128 ) $ ( 10,127 ) $ ( 384,758 ) Net income (loss) 400 — — ( 18,508 ) — — ( 18,108 ) Vesting of restricted stock and other 57,653 — — — — — ( 39 ) ( 39 ) Share-based compensation — — 7,947 — — — 7,947 Dividend declared and paid to noncontrolling interests ( 3,397 ) — — — — — ( 3,397 ) Conversion of Special Warrants to Class A and Class B Shares 58,534 — ( 58,534 ) — — — — — — — Conversion of Class B Shares to Class A Shares 750 ( 750 ) — — — — — — — Other comprehensive loss — — — — ( 219 ) — ( 219 ) Balances at March 31, 2024 124,416,225 21,346,613 5,043,336 $ 6,400 $ 146 $ 2,955,043 $ ( 3,348,650 ) $ ( 1,347 ) $ ( 10,166 ) $ ( 398,574 ) (1) The Company's Preferred Stock is not presented in the data above as there were no shares issued and outstanding in 2025, 2024, or 2023. See Notes to Consolidated Financial Statements 3 IHEARTMEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net loss $ ( 280,883 ) $ ( 18,108 ) Reconciling items: Impairment charges 2,855 1,508 Depreciation and amortization 91,901 105,162 Deferred taxes 136,219 ( 24,080 ) Provision for doubtful accounts 3,632 2,906 Amortization of deferred financing charges and note discounts, net 741 1,730 Share-based compensation 7,466 7,947 Loss on disposal of operating and other assets 332 132 (Gain) Loss on investments 18,594 ( 91,994 ) Equity in (income) loss of nonconsolidated subsidiaries ( 50 ) 45 Barter and trade income ( 10,283 ) ( 8,749 ) Other reconciling items, net ( 125 ) 507 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 170,840 153,799 Increase in prepaid & other current assets ( 66,324 ) ( 54,484 ) (Increase) Decrease in other long-term assets ( 384 ) 368 Decrease in accounts payable ( 37,089 ) ( 12,267 ) Decrease in accrued expenses ( 137,797 ) ( 122,864 ) Increase (Decrease) in accrued interest 24,463 ( 8,823 ) Increase in deferred revenue 14,088 8,260 Increase (Decrease) in other long-term liabilities 860 ( 272 ) Cash used for operating activities ( 60,944 ) ( 59,277 ) Cash flows from investing activities: Purchases of property, plant and equipment ( 19,730 ) ( 21,582 ) Proceeds from sale of investment securities — 101,405 Change in other, net ( 337 ) ( 1,808 ) Cash provided by (used for) investing activities ( 20,067 ) 78,015 Cash flows from financing activities: Payments on long-term debt and credit facilities ( 9,966 ) ( 111 ) Dividends and other payments to noncontrolling interests ( 385 ) ( 3,397 ) Change in other, net ( 687 ) ( 40 ) Cash used for financing activities ( 11,038 ) ( 3,548 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 183 ( 169 ) Net increase (decrease) in cash, cash equivalents and restricted cash ( 91,866 ) 15,021 Cash, cash equivalents and restricted cash at beginning of period 259,580 346,382 Cash, cash equivalents and restricted cash at end of period $ 167,714 $ 361,403 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 76,608 $ 105,863 Cash paid for income taxes 2,136 1,033 See Notes to Consolidated Financial Statements 4 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 – BASIS OF PRESENTATION Preparation of Interim Financial Statements All references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us” and “our” refer to iHeartMedia, Inc. and its consolidated subsidiaries. The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The Company reports based on three reportable segments: ▪ the Multiplatform Group, which includes the Company's Broadcast radio, Networks and Sponsorships and Events businesses; ▪ the Digital Audio Group, which includes all of the Company's Digital businesses, including Podcasting; and ▪ the Audio & Media Services Group, which includes Katz Media Group (“Katz Media”), a full-service media representation business, and RCS Sound Software ("RCS"), a provider of scheduling and broadcast software and services. The consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling interest or is the primary beneficiary. Investments in companies which the Company does not control but exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process. Economic Conditions The Company's advertising revenue, cash flows, and cost of capital are impacted by changes in economic conditions. Higher interest rates and inflation have continued to contribute to a challenging macroeconomic environment. This challenging environment has led to broader market uncertainty which has impacted the Company's revenues and cash flows. The current market uncertainty and macroeconomic conditions, a recession, or a downturn in the U.S. economy could have a significant impact on the Company's ability to generate revenue and cash flows. As of March 31, 2025, the Company had approximately $ 167.7 million in cash and cash equivalents, and the $ 450.0 million senior secured asset-based revolving credit facility entered into on May 17, 2022 (the "ABL Facility") had a borrowing base of $ 415.1 million, no outstanding borrowings and $ 23.7 million of outstanding letters of credit, resulting in $ 391.4 million of borrowing base availability. The Company's total available liquidity as of March 31, 2025 was $ 559.1 million. Based on current available liquidity, the Company expects to be able to meet its obligations as they become due over the coming year. Reclassifications Certain prior period amounts have been reclassified to conform to the 2025 presentation. Restricted Cash As of March 31, 2025 and December 31, 2024, the Company did not have any restricted cash balances on the Consolidated Balance Sheets. Certain Relationships and Related Party Transactions From time to time, certain companies in which the Company holds minority equity interests, purchase advertising in the ordinary course. None of these ordinary course transactions have had a material impact on the Company. 5 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) New Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued Update 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the disclosure requirements for income tax rate reconciliation, domestic and foreign income taxes, and unrecognized tax benefits. The amendments of ASU 2023-09 are effective for annual periods beginning after December 15, 2024. The Company intends to adopt this standard beginning with the 2025 annual period and is currently evaluating the impact of this standard on our annual disclosures, including method of adoption. In November 2024, the FASB issued Update 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This update focuses on the disaggregation of income statement expenses, requiring entities to provide more detailed disclosures about certain expenses in their financial statements. The amendments of ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027. Early adoption is permitted and the amendments may be applied prospectively or retrospectively. The Company is currently evaluating the impact of this standard on our disclosures, including timing and method of adoption. 6 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 2 – REVENUE Disaggregation of Revenue The following tables show revenue streams for the three months ended March 31, 2025 and 2024: (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Eliminations Consolidated Three Months Ended March 31, 2025 Revenue from contracts with customers: Broadcast Radio (1) $ 340,736 $ — $ — $ — $ 340,736 Networks (2) 99,463 — — — 99,463 Sponsorship and Events (3) 28,621 — — — 28,621 Digital, excluding Podcast (4) — 161,251 — ( 1,131 ) 160,120 Podcast (5) — 116,036 — — 116,036 Audio & Media Services (6) — — 59,323 ( 1,356 ) 57,967 Other (7) 4,067 — — — 4,067 Total 472,887 277,287 59,323 ( 2,487 ) 807,010 Revenue from leases (8) 91 — — — 91 Revenue, total $ 472,978 $ 277,287 $ 59,323 $ ( 2,487 ) $ 807,101 Three Months Ended March 31, 2024 Revenue from contracts with customers: Broadcast Radio (1) $ 359,338 $ — $ — $ — $ 359,338 Networks (2) 102,051 — — — 102,051 Sponsorship and Events (3) 27,829 — — — 27,829 Digital, excluding Podcast (4) — 148,344 — ( 1,185 ) 147,159 Podcast (5) — 90,624 — — 90,624 Audio & Media Services (6) — — 69,168 ( 1,376 ) 67,792 Other (7) 4,095 — — — 4,095 Total 493,313 238,968 69,168 ( 2,561 ) 798,888 Revenue from leases (8) 150 — — — 150 Revenue, total $ 493,463 $ 238,968 $ 69,168 $ ( 2,561 ) $ 799,038 (1) Broadcast Radio revenue is generated through the sale of advertising time on the Company’s domestic radio stations. (2) Networks revenue is generated through the sale of advertising on the Company’s Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies. (3) Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent. (4) Digital, excluding Podcast revenue is generated through the sale of streaming and display advertisements on digital platforms and through subscriptions to iHeartRadio streaming services. (5) Podcast revenue is generated through the sale of advertising on the Company's podcast network. (6) Audio & Media Services revenue is generated by services provided to broadcast industry participants through the Company’s Katz Media and RCS businesses. As a media representation firm, Katz Media generates revenue via commissions on media sold on behalf of the radio and television stations that it represents, while RCS generates revenue by providing broadcast software and media streaming, along with research services for radio stations, broadcast television stations, cable channels, record labels, ad agencies and Internet stations worldwide. (7) Other revenue represents fees earned for miscellaneous services, including on-site promotions, activations, and local marketing agreements. (8) Revenue from leases is primarily generated by the lease of towers to other media companies, which are all categorized as operating leases. 7 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Trade and Barter Trade and barter transactions represent the exchange of advertising spots for merchandise, services, advertising and promotion or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received at contract inception unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots promised to the customer. The revenues and expenses may not be recognized in the same period depending on the timing of the services, advertising or promotion received in exchange for advertising spots. Trade and barter revenues and expenses, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows: Three Months Ended March 31, (In thousands) 2025 2024 Trade and barter revenues $ 49,365 $ 41,305 Trade and barter expenses 33,794 34,181 In addition to the trade and barter revenue in the table above, the Company recognized $ 10.3 million and $ 8.7 million during the three months ended March 31, 2025 and 2024, respectively, in connection with investments made in companies in exchange for advertising services. The following tables show the Company’s deferred revenue balance from contracts with customers: Three Months Ended March 31, (In thousands) 2025 2024 Deferred revenue from contracts with customers: Beginning balance (1) $ 173,766 $ 181,899 Revenue recognized, included in beginning balance ( 66,932 ) ( 73,928 ) Additions, net of revenue recognized during period, and other 76,850 77,864 Ending balance $ 183,684 $ 185,835 (1) Deferred revenue from contracts with customers is included within deferred revenue and other long-term liabilities on the Consolidated Balance Sheets, depending upon when revenue is expected to be recognized. The Company’s contracts with customers generally have terms of one year or less; however, as of March 31, 2025, the Company expects to recognize $ 208.5 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration greater than one year, with substantially all of this amount to be recognized over the next five years . Commissions related to the Company’s media representation business have been excluded from this amount as they are contingent upon future sales. 8 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 3 – LEASES The Company enters into operating lease contracts for land, buildings, structures and other equipment. Arrangements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases primarily include land and building lease contracts and leases of radio towers. Arrangements to lease building space consist primarily of the rental of office space, but may also include leases of other equipment, including automobiles and copiers. Operating leases are reflected on the Company's balance sheet within Operating lease right-of-use assets ("ROU assets") and the related short-term and long-term liabilities are included within Current and Noncurrent operating lease liabilities, respectively. The Company's finance leases are included within Property, plant and equipment with the related liabilities included within Long-term debt. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term. The Company tests for impairment of assets whenever events and circumstances indicate that such assets might be impaired. During the three months ended March 31, 2025, and 2024, the Company recognized non-cash impairment charges of $ 2.9 million and $ 1.5 million due to changes in sublease assumptions for ROU assets related to certain operating leases for which management has made proactive decisions to abandon and sublease in connection with strategic actions to streamline the Company’s real estate footprint. The implicit rate within the Company's lease agreements is generally not determinable. As such, the Company uses the incremental borrowing rate ("IBR") to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is "the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment." The following table provides supplemental cash flow information related to leases for the periods presented: Three Months Ended March 31, (In thousands) 2025 2024 Cash paid for amounts included in measurement of operating lease liabilities $ 36,644 $ 37,293 Lease liabilities arising from obtaining right-of-use assets (1) 7,435 5,751 (1) Lease liabilities from obtaining right-of-use assets include new leases entered into during the three months ended March 31, 2025 and 2024, respectively. The Company reflects changes in the lease liability and changes in the ROU asset on a net basis in the Statements of Cash Flows. The non-cash operating lease expense was $ 15.7 million and $ 15.6 million for the three months ended March 31, 2025 and 2024, respectively. 9 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 4 – PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets: (In thousands) March 31, 2025 December 31, 2024 Land, buildings and improvements $ 330,339 $ 335,502 Towers, transmitters and studio equipment 208,588 207,349 Computer equipment and software 750,168 741,259 Furniture and other equipment 54,029 54,108 Construction in progress 11,198 12,186 1,354,322 1,350,404 Less: accumulated depreciation 889,480 860,561 Property, plant and equipment, net $ 464,842 $ 489,843 Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of FCC broadcast licenses in its Multiplatform Group segment. Other Intangible Assets Other intangible assets consists of definite-lived intangible assets, which primarily include customer and advertiser relationships, talent and representation contracts, trademarks and tradenames and other contractual rights, all of which are amortized over the shorter of either the respective lives of the agreements or over the period of time that the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at amortized cost. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets. (In thousands) March 31, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer / advertiser relationships $ 1,652,623 $ ( 1,001,545 ) $ 1,652,623 $ ( 967,377 ) Talent and other contracts 338,900 ( 256,409 ) 338,900 ( 245,909 ) Trademarks and tradenames 335,912 ( 198,947 ) 335,912 ( 190,450 ) Other 18,003 ( 14,674 ) 18,003 ( 14,120 ) Total $ 2,345,438 $ ( 1,471,575 ) $ 2,345,438 $ ( 1,417,856 ) Total amortization expense related to definite-lived intangible assets for the Company for the three months ended March 31, 2025 and 2024 was $ 53.7 million and $ 61.9 million, respectively. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets: (In thousands) 2026 $ 201,512 2027 176,171 2028 160,395 2029 121,622 2030 16,430 10 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Goodwill The following table presents the changes in the carrying amount of goodwill: (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Consolidated Balance as of December 31, 2024 (1) $ 731,501 $ 311,353 $ 62,302 $ 1,105,156 Foreign currency — — 114 114 Balance as of March 31, 2025 $ 731,501 $ 311,353 $ 62,416 $ 1,105,270 (1) Beginning goodwill balance is presented net of prior accumulated impairment losses of $ 2.0 billion related to our Multiplatform Group, $ 439.4 million related to our Digital Audio Group and $ 41.6 million related to our Audio & Media Services Group. NOTE 5 – LONG-TERM DEBT Long-term debt outstanding for the Company consisted of the following: (In thousands) March 31, 2025 December 31, 2024 Asset-based Revolving Credit Facility due 2027 $ — $ — Term Loan Facility due 2026 5,095 5,095 Incremental Term Loan Facility due 2026 1,500 1,500 Term Loan Facility due 2029 (1) 2,140,360 2,145,724 6.375 % Senior Notes due 2026 44,644 44,644 5.25 % Senior Notes due 2027 6,983 6,983 8.375 % Senior Unsecured Notes due 2027 72,388 72,388 4.75 % Senior Secured Notes due 2028 276,868 276,868 9.125 % First Lien Notes due 2029 717,588 717,588 7.75 % First Lien Notes due 2030 661,285 661,285 7.00 % First Lien Notes due 2031 178,443 178,443 10.875 % Second Lien Notes due 2030 675,165 675,165 Other secured subsidiary debt (2) 4,696 5,008 Long-term debt fees ( 8,544 ) ( 8,974 ) Debt Premium 278,106 289,752 Total Debt 5,054,577 5,071,469 Less: Current portion 22,511 22,501 Total long-term debt $ 5,032,066 $ 5,048,968 (1) Decrease is due to the quarterly amortization payment of $ 5.4 million equal to 0.25 % of the original principal amount of the Term Loan Facility due 2029. (2) Other subsidiary debt consists of finance lease obligations maturing at various dates from 2026 through 2045. The Company’s weighted average interest rate was 9.3 % and 9.4 % as of March 31, 2025 and December 31, 2024, respectively. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately $ 3.6 billion and $ 4.1 billion as of March 31, 2025 and December 31, 2024, respectively. Under the fair value hierarchy established by ASC 820-10-35, the market value of the Company’s debt is classified as either Level 1 or Level 2. As of March 31, 2025, the Company was in compliance with all covenants related to our debt agreements. 11 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Surety Bonds and Letters of Credit As of March 31, 2025, the Company and its subsidiaries had outstanding surety bonds and commercial standby letters of credit of $ 8.6 million and $ 23.7 million , respectively. These surety bonds and letters of credit relate to various operational matters including insurance, lease and performance bonds as well as other items. NOTE 6 – COMMITMENTS AND CONTINGENCIES The Company and its subsidiaries are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the Company’s assumptions or the effectiveness of its strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s financial condition or results of operations. Although the Company is involved in a variety of legal proceedings in the ordinary course of business, a large portion of the Company’s litigation arises in the following contexts: commercial/contract disputes; defamation matters; employment and benefits related claims; intellectual property claims; real estate matters; governmental investigations; and tax disputes. Alien Ownership Restrictions and FCC Declaratory Ruling The Communications Act of 1934, as amended (the "Communications Act") and FCC regulation prohibit foreign entities and individuals from having direct or indirect ownership or voting rights of more than 25 percent in a corporation controlling the licensee of a radio broadcast station unless the FCC finds greater foreign ownership to be in the public interest. On November 5, 2020, the FCC issued a declaratory ruling, which permits the Company to be up to 100% foreign owned, subject to certain conditions (the "2020 Declaratory Ruling"). NOTE 7 – INCOME TAXES The Company’s income tax benefit (expense) consisted of the following components: (In thousands) Three Months Ended March 31, 2025 2024 Current tax benefit (expense) $ 860 $ ( 3,418 ) Deferred tax benefit (expense) ( 136,219 ) 24,080 Income tax benefit (expense) $ ( 135,359 ) $ 20,662 The effective tax rates for the three months ended March 31, 2025 and March 31, 2024 were ( 93.0 )% and 53.3 %, respectively. The effective tax rates for these three-month periods were primarily impacted by changes in the forecasted increase in valuation allowances recorded against certain deferred assets, related primarily to disallowed interest expense carryforwards due to uncertainty regarding the Company's ability to utilize those assets in future periods. NOTE 8 – STOCKHOLDERS' DEFICIT Pursuant to the Company's 2019 Eq uity Incentive Plan (the "2019 Plan"), the Company historically granted restricted stock units and options to purchase shares of the Company's Class A common stock to certain key individuals. On April 21, 2021, the 2021 Long-Term Incentive Award Plan (the “2021 Plan”) was approved by stockholders and replaced the 2019 Plan. At our 2023 Annual Meeting of Stockholders, an increase to the shares authorized for issuance under the 2021 Plan was approved. 12 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Pursuant to the 2021 Plan, the Company will continue to grant equity awards covering shares of the Company's Class A common stock to certain key individuals. Share-based Compensation Share-based compensation expenses are recorded in Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Loss. The Company periodically issues restricted stock units ("RSUs") and performance-based RSUs ("Performance RSUs") to certain key employees, some of which are settled in cash. The RSUs vest solely due to continued service over time. The Performance RSUs generally vest upon the achievement of certain market goals, performance goals, and continued service. The majority of these awards are measured over an approximately 1-year to 3-year period from the date of issuance. The following table presents the Company's total share based compensation expense by award type: (In thousands) Three Months Ended March 31, 2025 2024 RSUs $ 5,328 $ 4,926 Performance RSUs 3,529 2,789 Options 172 765 Total Share Based Compensation Expense (1) $ 9,029 $ 8,480 (1) Total share based compensation expense includes $ 1.6 million and $ 0.5 million of expense from cash settled awards for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, there was $ 26.1 million of unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of approximately 1.9 years and assumes Performance RSUs that have not reached their measurement dates will be fully earned at target. Special Warrants Each Special Warrant issued under the special warrant agreement entered into in connection with the Reorganization may be exercised by its holder to purchase one share of Class A common stock or Class B common stock at an exercise price of $ 0.001 per share, unless the Company in its sole discretion believes such exercise would, alone or in combination with any other existing or proposed ownership of common stock, result in, subject to certain exceptions, (a) such exercising holder owning more than 4.99 % of the Company's outstanding Class A common stock, (b) more than 22.5 % of the Company's capital stock or voting interests being owned directly or indirectly by foreign individuals or entities, (c) the Company exceeding any foreign ownership threshold set by the FCC pursuant to a declaratory ruling or specific approval requirement or (d) the Company violating any provision of the Communications Act or restrictions on ownership or transfer imposed by the Company's certificate of incorporation or the decisions, rules and policies of the FCC. Although the agreement governing the Special Warrants provides that the Company may decline to permit the exercise of Special Warrants if such exercise would result in more than 22.5 % of our capital stock or voting interests being owned directly or indirectly by foreign individuals or entities, the Company received a ruling from the FCC permitting it to have up to 100 % foreign ownership in the aggregate. Any holder exercising Special Warrants must complete and timely deliver to the warrant agent the required exercise forms and certifications required under the special warrant agreement. During the three months ended March 31, 2024 there were 58,534 Special Warrants exercised for an equivalent number of shares of Class A common stock. There were no Special Warrants exercised for Class A common stock during the three months ended March 31, 2025. During the three months ended March 31, 2025 and 2024 there were no Special Warrants exercised for Class B common stock. 13 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Computation of Loss per Share (In thousands, except per share data) Three Months Ended March 31, 2025 2024 NUMERATOR: Net loss attributable to the Company – common shares $ ( 281,224 ) $ ( 18,508 ) DENOMINATOR (1) : Weighted average common shares outstanding - basic 152,480 149,795 Stock options and restricted stock (2) : — — Weighted average common shares outstanding - diluted 152,480 149,795 Net loss attributable to the Company per common share: Basic $ ( 1.84 ) $ ( 0.12 ) Diluted ( 1.84 ) ( 0.12 ) (1) All of the outstanding Special Warrants are included in both the basic and diluted weighted average common shares outstanding of the Company for the three months ended March 31, 2025 and 2024. (2) Outstanding equity service awards representing 16.6 million and 15.8 million shares of Class A common stock of the Company for the three months ended March 31, 2025 and 2024, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. NOTE 9 – SEGMENT DATA The Company’s primary businesses are included in its Multiplatform Group and Digital Audio Group segments. Revenue and expenses earned and charged between Multiplatform Group, Digital Audio Group, Audio & Media Services Group, and Corporate are eliminated in consolidation. The Multiplatform Group provides media and entertainment services via broadcast delivery and also includes the Company’s events and national syndication businesses. The Digital Audio Group provides media and entertainment services via digital delivery. The Audio & Media Services Group provides other audio and media services, including the Company’s media representation business (Katz Media) and its provider of scheduling and broadcast software (RCS). Corporate includes infrastructure and support, including executive, information technology, human resources, legal, finance, and administrative functions for the Company’s businesses. Segment Adjusted EBITDA is the segment profitability metric reported to the Company’s Chief Operating Decision Maker ("CODM") for purposes of decisions about allocation of resources to, and assessing performance of, each reportable segment. The Company's CODM is our Chief Executive Officer. The CODM uses Segment Adjusted EBITDA to evaluate the operating performance of each reportable segment, and to allocate resources. This measure is the primary measure used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and segment management. 14 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The following tables present the Company's segment results: Segments (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Corporate and other reconciling items Eliminations Consolidated Three Months Ended March 31, 2025 Revenue 472,978 277,287 59,323 — ( 2,487 ) $ 807,101 Direct operating expenses (1) 199,669 145,921 7,084 — ( 955 ) 351,719 Selling, general and administrative expenses (2) 203,302 44,283 36,441 68,300 ( 1,532 ) 350,794 Segment Adjusted EBITDA (3) $ 70,007 $ 87,083 $ 15,798 $ ( 68,300 ) $ — $ 104,588 Depreciation and amortization ( 91,901 ) Impairment charges ( 2,855 ) Other operating expense, net ( 659 ) Restructuring expenses ( 25,578 ) Share-based compensation expense ( 9,029 ) Operating loss $ ( 25,434 ) Segment Assets $ 4,027,842 $ 593,363 $ 273,776 $ 377,161 $ ( 4,049 ) $ 5,268,093 Intersegment revenues — 1,131 1,356 — — 2,487 Capital expenditures 5,929 5,856 5,627 2,318 — 19,730 Segments (In thousands) Multiplatform Group Digital Audio Group Audio & Media Services Group Corporate and other reconciling items Eliminations Consolidated Three Months Ended March 31, 2024 Revenue $ 493,463 $ 238,968 $ 69,168 $ — $ ( 2,561 ) $ 799,038 Direct operating expenses (1) 204,130 127,254 7,041 — ( 927 ) 337,498 Selling, general and administrative expenses (2) 212,151 43,587 38,432 64,387 ( 1,634 ) 356,923 Segment Adjusted EBITDA (3) $ 77,182 $ 68,127 $ 23,695 $ ( 64,387 ) $ — $ 104,617 Depreciation and amortization ( 105,162 ) Impairment charges ( 1,508 ) Other operating expense, net ( 572 ) Restructuring expenses ( 23,603 ) Share-based compensation expense ( 8,480 ) Operating loss $ ( 34,708 ) Segment Assets $ 5,259,863 $ 618,337 $ 305,243 $ 578,810 $ ( 3,941 ) $ 6,758,312 Intersegment revenues — 1,185 1,376 — — 2,561 Capital expenditures 11,704 5,427 2,257 2,194 — 21,582 (1) Includes content, programming, and production costs as well as employee compensation, talent fees, event costs, and music license fees. 15 IHEARTMEDIA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (2) Includes administrative employee compensation, sales commissions, trade and barter expense, and rent and utilities. (3) For a definition of Adjusted EBITDA for the consolidated company and a reconciliation to Operating loss, the most closely comparable GAAP measure, and to Net loss, please see "Reconciliation of Operating loss to Adjusted EBITDA" and "Reconciliation of Net loss to EBITDA and Adjusted EBITDA" in Item 2 of this Quarterly Report on Form 10-Q. 16