What is the company’s guidance on cash flow conversion and debt service coverage going forward?

Guidance Summary

The press release you provided does not include iHeartMedia’s explicit forward‑looking guidance on cash‑flow conversion or debt‑service coverage. The excerpt only covers Q2 2025 financial highlights—revenue of $934 million, GAAP operating income of $35 million (a dramatic turnaround from a $910 million loss a year earlier), and a modest rise in Adjusted EBITDA to $156 million—but it does not disclose management’s expectations for future cash‑flow conversion ratios or the debt‑service coverage ratio (DSCR). In the absence of a specific statement, analysts must rely on the company’s historical trends and the broader context of its recent operating improvements.

Trading Implications

• Fundamental View: The swing from a GAAP operating loss to a modest profit, paired with a modest uptick in EBITDA, suggests that the company’s operating cash flow is likely improving, which could enhance cash‑flow conversion in the near term. However, without a disclosed target DSCR, investors should remain cautious about the firm’s ability to meet debt obligations, especially given iHeart’s historically high leverage.
• Actionable Insight: Traders should monitor upcoming earnings calls or investor presentations for explicit guidance on cash‑flow conversion and DSCR. In the meantime, the stock may be sensitive to any disclosed improvements in cash‑flow metrics or debt‑service coverage. A bullish stance could be justified if the company signals a strong conversion rate (e.g., >90% of EBITDA converting to cash) and a DSCR above 1.2, which would reduce refinancing risk and support a higher valuation. Conversely, lacking clear guidance, a neutral‑to‑cautious position is advisable until the company releases detailed forward‑looking guidance.