Cumulus Media Inc. (CMLS, Financial) has announced that its Class A common stock will be delisted from the Nasdaq Global Market, effective May 2, following noncompliance with specific Nasdaq listing rules. The company confirmed that it will not appeal the decision.
To ensure continued trading, Cumulus Media has secured qualification for its stock to be quoted on the OTCQB market, which is managed by the OTC Markets Group Inc. This transition will take place simultaneously with the delisting, allowing trading of its stock under the ticker "CMLS" to begin uninterrupted on the OTCQB from May 2.
The company emphasized that this change in trading venue will not impact its business operations or strategic initiatives. The move to OTCQB is designed to facilitate a seamless transition for investors and maintain trading accessibility for its shares.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Cumulus Media Inc (CMLS, Financial) is $11.00 with a high estimate of $11.00 and a low estimate of $11.00. The average target implies an upside of 3,975.58% from the current price of $0.27. More detailed estimate data can be found on the Cumulus Media Inc (CMLS) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Cumulus Media Inc's (CMLS, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cumulus Media Inc (CMLS, Financial) in one year is $4.53, suggesting a upside of 1578.4% from the current price of $0.2699. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cumulus Media Inc (CMLS) Summary page.
CMLS Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cumulus Media Inc (CMLS, Financial) outperformed its peers on key metrics such as cost takeouts, IEDA margin recovery, free cash flow conversion, net leverage, and liquidity through the end of 2023.
- The digital marketing services business saw a revenue increase of 27% year over year, becoming the largest digital business segment in 2024.
- Cumulus Media Inc (CMLS) achieved all-time highs in several key performance indicators for its digital marketing services, including customer count up 18% and average digital order size per customer up 11%.
- The company successfully extended its debt maturities to 2029, providing additional financial flexibility and optionality.
- Cumulus Media Inc (CMLS) maintained its liquidity position at year-end versus the prior quarter, benefiting from cash generated from operations.
Negative Points
- Cumulus Media Inc (CMLS) faced significant challenges due to accelerated national headwinds and an industry-wide slowdown in local broadcast advertising.
- Podcast revenue was down slightly in 2024 due to Daily Wire's decision to take its ad sales function in-house, resulting in a $15 million negative revenue comp for the full year.
- The streaming business was down 4% during the year, impacted by the expiration of a fixed rate sales contract.
- Broadcast demand weakness continued, reflecting ongoing concerns about inflation, higher interest rates, and deteriorating consumer sentiment.
- The company anticipates additional headwinds in 2025 due to the loss of Dan Bongino's radio show and podcast, comparable to the loss of the Daily Wire comp.
