Cumulus Q3: Digital Growth, Cost Cuts Cushion Broadcast Decline.

Cumulus Media reported an 11.5% year-over-year decline in total revenue for the third quarter, or down 5% excluding the impact of political spending and the loss of The Daily Wire and “The Dan Bongino Show.’ Despite the ongoing challenges in the broadcast ad market, CEO Mary Berner said the company continues to “outperform peers across numerous key metrics.”

“For the third straight quarter, we grew our broadcast spot revenue market share,” Berner said during a Thursday morning call with shareholders and investors. “That reflects our emphasis on strong sales execution, live and local programming, and dynamic inventory management.”

Berner said the company also gained ratings market share in its PPM markets and grew digital revenue market share, led by its Digital Marketing Services (DMS) division, which was up 34% year-over-year. “This is the third consecutive quarter of above 30% growth,” she noted, pointing to an 88% rise in new accounts and an 8% increase in average campaign order size.

Cumulus’ DMS business continues to deliver strong returns for clients, with ROI outperforming industry benchmarks by an average of 25%. “We’ve nearly doubled the percentage of our legacy radio customers who also buy DMS,” Berner said. “We remain very bullish about the prospects for this business.”

Excluding the impact from the loss of The Daily Wire and Bongino, podcast revenue rose 15%, contributing to an overall 8% increase in total digital revenue for the quarter. Cumulus continues to refine its personality-driven podcast slate, recently adding “The Next Role” with former NFL star Vernon Davis and “Family Matters” with Gen Z commentator C.J. Pearson.

On the broadcast side, national advertising weakness continued to weigh on results, with network revenue down 27%. However, Berner said Cumulus still gained total revenue market share across its markets. “Our focus on live and local programming remains a key differentiator,” she said, citing Dallas as a standout market. “In Dallas, total revenue was up mid-single digits while our peers were down nearly 10%.”

Cumulus also plans to build on the strength of live sports with the upcoming launch of Westwood One Sports 24/7, a new network debuting at the start of 2026 as part of a partnership with Audacy’s Infinity Network. Anchored by existing shows such as “The Jim Rome Show” and “You Better You Bet,” the network will add new programs while leveraging digital distribution to drive growth and lower costs.

The company continues to push aggressive cost reductions, cutting another $7 million in annualized fixed costs during the quarter. That brings total savings to $20 million year-to-date and more than $182 million since 2019, over 30% of its pre-pandemic cost base.

Berner said Cumulus is accelerating its use of AI to drive both efficiency and revenue growth, with more than 100 projects in motion. “We’re using AI for sales prospecting, customer service chatbots, and even real-time content clipping to extend the reach of our play-by-play coverage,” she explained.

Cumulus ended the quarter with $90 million in cash and $109 million in total liquidity. The company expects to close additional non-core asset sales in the fourth quarter and early 2026, pending FCC approvals delayed by the recent government shutdown.

Looking ahead, Berner said Q4 is pacing down mid-single digits excluding political and the loss of The Daily Wire and Bongino, and down mid- to high-teens when including those impacts.

While acknowledging continued macroeconomic headwinds, Berner struck an optimistic tone. “We believe we’ll continue to outperform our peers in the areas we can control,” she said, pointing to the company’s multi-platform reach of 250 million listeners per month, nearly 500 local sales professionals, and a growing portfolio of monetizable content assets.

Berner also addressed the company’s litigation against Nielsen, which she described as a matter of principle. “We feel strongly about the merits of our claim,” she said. “We look forward to arguing the case in court, with a preliminary injunction hearing scheduled for early December.”