Cumulus Media (CMLS) AI Stock Analysis

• Market Cap: $14.24M
• Dividend Yield: N/A
• Average Volume (3M): 29.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -6.94%
• EPS Growth: -92.29%
• Country: US
• Employees: 2,250
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -1.17
• Shares Outstanding: 17,128,042
• 10 Day Avg. Volume: 22,326
• 30 Day Avg. Volume: 29,570
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.01
• P/FCF Ratio: -0.50
• Enterprise Value/Market Cap: 65.63
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 46.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Cumulus Media's overall stock score reflects significant financial challenges, with declining revenues, high leverage, and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued given its financial difficulties. While there are positive strategic initiatives in digital growth and cost management, these are overshadowed by the broader financial and operational challenges.

Positive Factors

Digital Revenue Growth

The strong growth in digital marketing services indicates a successful pivot towards digital platforms, which is crucial for long-term revenue diversification and resilience against traditional media declines.

Cost Reduction Achievements

Significant cost reductions enhance operational efficiency and improve margins, providing a buffer against revenue volatility and supporting financial stability.

AI Integration

AI integration can drive operational efficiencies and innovation, positioning the company to better compete and adapt in the evolving media landscape.

Negative Factors

Revenue Decline

The decline in total and broadcast revenue highlights challenges in core operations, potentially affecting long-term growth and market position if not addressed.

High Leverage

High leverage limits financial flexibility, increasing risk and reducing the ability to invest in growth opportunities, which could hinder long-term strategic initiatives.

Network Revenue Challenges

Significant decline in network revenue suggests vulnerability to market shifts and loss of key content, impacting the company's competitive edge in the broadcasting sector.

Cumulus Media Business Overview & Revenue Model

Company Description

Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates 406 stations in 86 markets, as well as approximately 9,500 affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and other partners. It also provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation management, and search engine marketing and optimization. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was incorporated in 2002 and is based in Atlanta, Georgia.

How the Company Makes Money

Cumulus Media generates revenue primarily through advertising sales, which is the largest portion of its income. The company sells airtime to advertisers who want to promote their products or services to the station's listeners. Additionally, Cumulus earns money from digital media initiatives, including online streaming and podcast advertising, which have become increasingly important as consumption habits shift. The company also benefits from partnerships with local businesses for cross-promotions and event sponsorships. Furthermore, Cumulus Media has engaged in strategic acquisitions to enhance its market presence and expand its revenue base, allowing it to capitalize on synergies and improve operational efficiencies.

Cumulus Media Financial Statement Overview

Summary

Cumulus Media's financial performance is severely challenged. The income statement shows declining revenues and profitability, with substantial losses. The balance sheet is highly leveraged with negative equity, raising concerns about financial stability. Cash flow analysis reveals difficulties in generating positive free cash flow. Overall, the company is in a precarious financial position, requiring strategic interventions to improve its financial health.

Income Statement

Cumulus Media's income statement reveals significant challenges. The company has experienced declining revenue, with a negative revenue growth rate of -2.31% in the TTM period. Gross profit margins have decreased from 60.79% in 2024 to 45.83% in the TTM period, indicating reduced efficiency in generating profit from sales. The net profit margin is deeply negative at -36.02%, reflecting substantial losses. Additionally, the EBIT and EBITDA margins are weak, with EBIT margin at -28.90% and EBITDA margin at 3.90%, highlighting operational inefficiencies.

Balance Sheet

The balance sheet presents a concerning picture with a negative stockholders' equity of -$37.09 million in the TTM period, resulting in a highly negative debt-to-equity ratio of -22.81. This indicates significant financial leverage and potential solvency issues. Return on equity is also negative at -630.56%, reflecting poor returns for shareholders. The equity ratio is not calculable due to negative equity, further emphasizing financial instability.

Cash Flow

Cash flow analysis shows mixed results. Operating cash flow is positive at $13.41 million, but free cash flow is negative at -$4.57 million, indicating cash outflows after capital expenditures. The free cash flow growth rate is negative at -42.52%, suggesting deteriorating cash generation. The operating cash flow to net income ratio is low at 0.10, and the free cash flow to net income ratio is negative, highlighting challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.20M	827.08M	844.55M	953.51M	916.47M	816.22M
Gross Profit	364.00M	502.83M	511.19M	596.03M	557.78M	479.14M
EBITDA	20.07M	59.20M	81.83M	158.40M	119.65M	59.51M
Net Income	-296.68M	-283.25M	-117.88M	16.23M	17.28M	-59.72M
Balance Sheet
Total Assets	1.08B	1.12B	1.44B	1.61B	1.72B	1.86B
Cash, Cash Equivalents and Short-Term Investments	90.41M	63.84M	80.66M	107.43M	177.03M	271.76M
Total Debt	843.97M	794.71M	813.08M	862.35M	952.96M	1.13B
Total Liabilities	1.14B	1.11B	1.15B	1.20B	1.30B	1.46B
Stockholders Equity	-56.92M	6.95M	286.58M	408.40M	419.50M	397.59M
Cash Flow
Free Cash Flow	-10.22M	-22.58M	6.85M	47.42M	39.43M	18.34M
Operating Cash Flow	8.82M	-3.12M	31.66M	78.48M	68.52M	33.21M
Investing Cash Flow	-17.73M	-4.23M	-6.82M	-26.24M	-1.54M	64.36M
Financing Cash Flow	47.16M	-9.47M	-51.61M	-121.84M	-161.71M	157.19M

Cumulus Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMLS, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 44.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMLS.

Cumulus Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SGA	57 Neutral	$77.28M	35.99	1.23%	8.33%	-1.72%	-66.67%
IHRT	56 Neutral	$546.31M	―	―	―	3.18%	62.89%
UONE	46 Neutral	$31.46M	-0.37	-97.71%	―	-10.63%	-61.23%
CMLS	42 Neutral	$14.24M	>-0.01	-329.89%	―	-6.94%	-92.29%
BBGI	42 Neutral	$8.95M	-0.97	-5.76%	―	-5.52%	87.59%

Cumulus Media Corporate Events

Cumulus Media Reports Q3 2025 Earnings Amid Challenges

Cumulus Media is a leading audio-first media company that operates 395 radio stations across 84 markets and provides digital marketing services, engaging a vast audience through various platforms including radio, podcasts, and digital content.

Cumulus Media’s Earnings Call: Digital Growth Amid Broadcast Challenges

Cumulus Media’s recent earnings call painted a mixed picture for investors. The company demonstrated robust growth in its digital marketing services and expanded its market share across various channels. However, it faced significant challenges with declining revenues in its broadcast and network businesses due to macroeconomic pressures and unfavorable market conditions. While cost reductions and strategic investments in digital growth areas are promising, the ongoing revenue pressures suggest a cautious outlook.

Cumulus Media’s Inaction on Trading Plans Raises Investor Concerns

Cumulus Media faces a potential risk due to the lack of changes in trading arrangements by its directors or officers during the fiscal quarter ended June 30, 2025. The absence of adoption, modification, or termination of Rule 10b5-1 or non-Rule 10b5-1 trading plans could indicate a lack of proactive financial strategy adjustments in response to market conditions. This inaction might expose the company to unforeseen market fluctuations and investor concerns about the management’s responsiveness. Stakeholders may perceive this as a missed opportunity to align executive trading activities with the company’s financial goals.

Cumulus Media Reports Q2 2025 Financial Results

Cumulus Media is a leading audio-first media company that delivers premium content through a vast network of radio stations and digital platforms, engaging millions of listeners across the United States. The company operates in the media and entertainment sector, offering a diverse range of programming and advertising solutions.