S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Cumulus Media Inc. (NASDAQ:CMLS) stock has tumbled to a 52-week low, reaching a price level of just $0.4. With a market capitalization of just $7.2 million and an EBITDA of $59.2 million over the last twelve months, the company’s InvestingPro Financial Health Score indicates a weak overall position. This significant drop reflects a stark contrast to the company’s performance over the past year, with Cumulus Media experiencing a precipitous 1-year change, plummeting by -86.16%. The sharp decline in stock value has raised concerns among investors and market analysts, as the media giant grapples with challenges including a substantial debt burden of $797 million and rapidly diminishing cash reserves. InvestingPro analysis reveals 10+ additional key insights about CMLS’s financial position. The current price marks a critical juncture for Cumulus Media, as stakeholders closely monitor the company’s efforts to stabilize and potentially recover from this downturn, with analysts not anticipating profitability this year according to InvestingPro forecasts.
In other recent news, Cumulus Media Inc. reported a significant earnings miss for Q4 2024, with earnings per share (EPS) of -13.6, falling short of the forecasted -0.37. Revenue also missed expectations, coming in at $218.58 million against a forecast of $224.85 million. Despite these financial setbacks, digital revenue saw a 5% year-over-year growth, with Digital Marketing Services (DMS) increasing by 27%. Additionally, the company managed to reduce fixed costs and refinance debt to extend maturities. In a separate development, Cumulus Media received a notification from NASDAQ regarding non-compliance with the stockholders’ equity requirement, as their equity stood at $6.95 million, below the $10 million requirement. The company plans to submit a compliance plan by April 2025 to address this issue. Furthermore, Cumulus Media has adopted a new corporate governance policy requiring directors who fail to secure a majority vote in uncontested elections to offer their resignation, reflecting efforts to enhance accountability to shareholders.
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