What is the outlook for capital expenditures and technology investments in 2025?

Fundamental outlook

iHeartMedia’s Q2‑2025 results show a clear turnaround: revenue is essentially flat‑to‑up (≈ 0.5% overall, 1.5% when political‑related revenue is stripped out) and GAAP operating income swings from a $910 M loss a year earlier to a $35 M profit. Adjusted EBITDA is now $156 M, a 3.9 % rise versus Q2‑2024, and the company generated positive cash from operations. This cash‑flow improvement creates headroom for discretionary spending, and management has repeatedly signaled a “digital‑first” strategy that leans heavily on technology upgrades (program‑matic ad platforms, AI‑driven audience analytics, and streaming‑infrastructure). With a healthier balance sheet and a cash‑positive operating model, iHeart is likely to lift its 2025 capital‑expenditure budget, earmarking a larger share for technology investments to sustain and accelerate its digital transformation.

Market dynamics & technical factors

The broader media‑entertainment sector is still in a growth phase for ad‑tech and over‑the‑top (OTT) capabilities, driven by higher‑margin program‑matic sales and the migration of political spend to digital channels. As peers (e.g., Audacy, SiriusXM) ramp up similar tech spend, iHeart’s competitive pressure will push it to keep pace. From a technical standpoint, the stock has held above its 200‑day moving average after the Q2 release, indicating that the market is already pricing in the earnings‑driven upside. However, any forward‑guidance on a sizable capex surge could introduce short‑term volatility as investors re‑price the expected impact on free cash flow and margins.

Actionable insight

Given the solid cash generation and the strategic need to stay ahead in digital ad‑technology, expect iHeartMedia to increase its 2025 capex, with a noticeable tilt toward technology (AI, data‑platforms, streaming). Traders can stay long on the stock on the upside‑bias from earnings, but keep a modest stop just below the recent support at the 200‑day MA. Watch for the next earnings call or a capex‑guidance release—if management signals a capex spend that exceeds $200 M (with > 50 % earmarked for tech), the stock could see a short‑term pull‑back before the longer‑term upside from higher‑margin digital revenue materializes.