In a quarter marred by economic headwinds and advertising slowdowns, Cumulus Media reported a 6.4% year-over-year revenue decline to $187.3 million for Q1 2025. While the headline numbers paint a challenging picture, the Atlanta-based broadcasting giant remains focused on its long-term digital-first transformation strategy, spotlighting strong growth in its digital marketing and streaming operations.

President and CEO Mary Berner acknowledged the tough macroeconomic environment in a statement, attributing the soft revenue performance to factors like tariffs and declining advertiser confidence. Yet she remained optimistic about the company’s strategic pivot.

“We delivered revenue in line with pacing guidance despite worsening economic headwinds,” Berner stated. “We accelerated growth in our digital marketing services business... and drove additional annualized cost reductions of $7.5 million.”

Traditional Broadcast Revenue Falters

Broadcast remains the backbone of Cumulus' business—but it’s showing signs of strain. The company’s Total Broadcast Revenue for the quarter dropped 10.6%, landing at $124.9 million, down from $139.7 million a year ago. Spot revenue made up the majority at $81 million, while network income, primarily from Westwood One, brought in $43.9 million.

This slide underscores a broader industry trend, where traditional radio and broadcast formats are increasingly under pressure from digital platforms, shifting audience habits, and tightening ad budgets.

Digital: The Bright Spot in a Gloomy Quarter

If there’s a silver lining for Cumulus, it’s digital. The company posted $36.6 million in digital revenue, marking a 6.1% year-over-year increase, and a much more impressive 20.4% jump when excluding the company’s previous partnership with The Daily Wire, which ended last year. Digital now contributes to 20% of total revenue, a testament to Cumulus’ aggressive shift in priorities.

Streaming revenue was up 4%, credited to improved monetization of available ad inventory. More notably, digital marketing services soared 30%, a result of recent investments in infrastructure and an expanding sales force. These gains indicate that Cumulus is building stronger foundations in areas where margins are higher and long-term growth potential remains robust.

While podcasting revenue declined 13% overall—largely due to the end of the Daily Wire relationship—excluding that factor shows a 39% gain, powered by fresh content and increased traction from existing shows.

Profit Slips, But Transformation Continues

Despite digital momentum, the bottom line took a hit. Net losses widened to $32.4 million, more than double the $14.2 million loss posted in Q1 2024. Operating performance was also weaker, with Adjusted EBITDA falling to $3.5 million, down from $8.4 million a year prior.

Still, Cumulus has taken measures to keep itself financially agile. The company ended the quarter with $52.7 million in cash and holds $670.2 million in total debt, with $642.1 million maturing at a later date. Its next debt maturity, $23.9 million, comes due in 2026—giving the company some breathing room as it navigates choppy waters.

Eyes on the Digital Horizon

As the company looks ahead, Berner reaffirmed Cumulus’ commitment to transforming how it uses its media assets, stating the focus would remain on high-margin digital segments like marketing services, streaming, and select podcasting ventures.

“We are fundamentally changing how we leverage our platforms,” Berner said, “in ways that align with where advertisers and audiences are headed.”

Though the path forward is fraught with economic challenges, Cumulus Media is betting big on a digital future—and its Q1 results, while mixed, suggest it’s a gamble starting to show signs of payoff.