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ATLANTA, GA — Cumulus Media Inc. (NASDAQ:CMLS), a prominent player in radio broadcasting with annual revenues of $827 million, is set to be delisted from the Nasdaq Global Market following a notification of noncompliance with the exchange’s listing rules. According to InvestingPro data, the company operates with a significant debt burden of $797 million and has been quickly burning through cash. The delisting will take effect at the start of business on May 2, 2025, with no appeal planned by the company.
The Nasdaq notice, received by Cumulus Media on Monday, cited the company’s failure to meet the minimum bid price and market value requirements. The stock has fallen 90% over the past year, with shares currently trading at $0.27. Despite the setback, Cumulus Media has already taken steps to ensure its Class A common stock continues to trade seamlessly, securing a spot on the OTCQB market tier, operated by OTC Markets Group Inc. Shares will trade under the same ticker, CMLS, beginning May 2.
This transition to the OTCQB does not impact Cumulus Media’s business operations. While the company maintains a current ratio of 1.85, indicating sufficient liquid assets to meet short-term obligations, InvestingPro analysis reveals concerning trends in profitability and cash flow. The company will maintain its SEC reporting obligations, making periodic filings accessible to investors on the SEC’s website. For deeper insights into Cumulus Media’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In their decision not to appeal Nasdaq’s ruling, Cumulus Media weighed several factors, including the costs and potential shareholder impact of regaining compliance, possibly through measures like a reverse stock split. With an EBITDA of $59.2 million in the last twelve months and analysts forecasting continued challenges, the company also considered feedback from shareholders and the possibility of a future return to the Nasdaq listing.
The forward-looking statements in this report, such as the potential for relisting on Nasdaq, are subject to risks and uncertainties, which are detailed in the "Risk Factors" section of Cumulus Media’s Annual Report on Form 10-K filed on February 27, 2025.
This news is based on a press release statement and reflects the most current information available regarding Cumulus Media’s stock trading status.
In other recent news, Cumulus Media reported a significant earnings miss for the fourth quarter of 2024, with earnings per share at -13.6 compared to a forecast of -0.37. The company’s revenue also fell short, coming in at $218.58 million against a projected $224.85 million. Despite these setbacks, Cumulus Media saw a 5% year-over-year growth in digital revenue, with Digital Marketing Services (DMS) increasing by 27%. Meanwhile, Moody’s downgraded Cumulus Media’s Corporate Family Rating due to high financial leverage and a declining liquidity profile. The company also faces a potential NASDAQ delisting after failing to meet the stockholders’ equity requirement, with a compliance plan due by April 21, 2025. Additionally, Cumulus Media has adopted a new corporate governance policy requiring directors to resign if they fail to secure a majority vote in uncontested elections. These developments highlight ongoing challenges in the traditional radio segment, while the company continues to focus on digital growth and cost management strategies.
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