America's largest radio group has just released its results for the third quarter of 2026, which ended on September 30. Behind a slight rise in overall revenue, iHeartMedia's figures draw a very clear dividing line: traditional broadcast activity is eroding, while podcasting, streaming and programmatic advertising are driving growth. It is a trend every internet radio publisher should watch closely.
A two-speed quarter
Over the period, iHeartMedia reported consolidated revenue of $1.03 billion, up 3.3% year on year. Excluding political advertising, however, growth was limited to 0.9%. Operating income turned positive at $73 million, compared with a loss of $116 million a year earlier, but adjusted EBITDA fell from $205 million to $170 million.
The breakdown by division is more revealing:
- Multiplatform Group, which includes the radio stations: $562 million, down 5% (and down 7% excluding political). Its adjusted EBITDA plunged 43% to $68 million, for a margin of 12.1%.
- Digital Audio Group, covering podcasting and streaming: $389 million, up almost 14%, with an adjusted EBITDA margin of 32.8%.
- Audio & Media Services (including Katz and RCS): $82 million, up 23%, but only 3% excluding political revenue.
Podcasting, the growth engine
Within the digital division, podcasting leads the way: its revenue climbed 24% to $174 million, while other digital revenue grew 6% to $215 million. The group considers the business important enough to make it a separate reporting segment from 2027, to give investors a clearer view of it.
In other words, podcasting is no longer an add-on to the airwaves at iHeartMedia: it now represents nearly a third of the revenue of the group's radio stations, with far higher profitability.
Programmatic is changing how audio is sold
Another striking figure: programmatic advertising, meaning ads bought automatically through platforms, reached $200 million in the quarter, up 50% year on year. iHeartMedia expects it to double to $400 million in 2027, including $100 million in additional revenue from broadcast radio itself. Its CEO, Bob Pittman, is counting on the rollout of the AudioGraph platform to sell airtime "the way advertisers want to buy".
What it means for internet radio stations
These results concern a US giant, but the lessons apply to much smaller operations:
- Podcasting is a credible revenue stream. Turning flagship shows into on-demand episodes reaches an audience that does not listen live.
- Programmatic is opening up to streams. An internet radio station whose stream is measured and connected to a digital audio ad network can capture a share of these automated budgets, until now reserved for the big players.
- Measurement becomes essential. Selling programmatically requires reliable listening statistics: concurrent listeners, listening time, geographic origin.
- The broadcast-only model is running out of steam. The decline of iHeartMedia's radio division is a reminder that it is wise to diversify revenue between live, on-demand and partnerships.
For internet radio stations, born digital, the good news is that the levers driving the industry's growth today (streaming, podcasting, automated advertising) are precisely the ones they already master.
Source: RadioInsight