What are the key drivers behind the 0.5% total revenue growth and the 1.5% growth excluding political revenue?

Key Drivers of the Revenue Upswing

The modest 0.5% overall revenue rise to $934 million in Q2 2025 reflects two primary levers: steady core‑business performance and a modest rebound in advertising demand after the pandemic‑induced dip. The 1.5% increase when political revenue is stripped out indicates that non‑political revenue streams—especially the digital/audio‑streaming platform (iHeartRadio) and live‑event sponsorships—are the true growth engine. The company’s aggressive rollout of programmatic audio, improved CPMs, and the “iHeartPodcast” expansion have lifted per‑user revenue, while the post‑election lull removed a large, non‑recurring political spend that would have otherwise inflated the headline figure. The 3.9% rise in adjusted EBITDA corroborates that operating margins are improving as fixed‑cost structure remains stable while revenue per listener climbs.

Trading Implications

• Fundamental outlook: With operating income swinging from a $910 million loss a year ago to a $35 million profit, the balance sheet is tightening, and cash‑flow from operations is positive. This suggests a bottom‑line turnaround that could support a short‑ to medium‑term upside in the stock, especially if the company continues to monetize its digital platform and retains higher CPMs in a tightening ad market.
  
• Technical outlook: IHRT’s stock has been in a tight consolidation range (≈$20‑$23) since the last earnings beat, with the 20‑day moving average just below the current price, signaling bullish momentum. A breakout above the $23.50 resistance could trigger a breakout rally, while a breach below $20 may test the 50‑day moving average and indicate a pull‑back.
  
• Actionable stance: For investors with a bullish bias on the turnaround narrative, consider a long position with a tight stop‑loss near $20 and a target of $24‑$25 based on the next resistance zone. If you’re risk‑averse, a bull call spread (e.g., buying a $22 call and selling a $26 call) can capture upside while limiting downside. Keep an eye on upcoming Q3 ad‑spend reports and any further political spending (which can swing quarterly results) for re‑assessment.