Cumulus Media has been notified that it does not meet the minimum stockholders’ equity requirement of $10 million needed to maintain its listing on the NASDAQ Global Market. According to Cumulus’ latest annual report, its stockholders’ equity stood at $6.95 million as of December 31, 2024.
The non-compliance notice adds to a difficult financial year for Cumulus Media, which reported a net loss of $283.3 million in 2024 – more than double its $117.9 million loss in 2023. The increased loss was largely driven by a $224.5 million non-cash impairment charge related to FCC costs.
Cumulus has until April 21 to submit a compliance plan to NASDAQ outlining how it intends to meet the equity requirement. If the plan is approved, Cumulus could receive up to 180 days to regain compliance. Should the plan be rejected, the company can appeal to a NASDAQ hearings panel, which would temporarily halt delisting procedures. The company is exploring potential solutions, including the possibility of transferring its stock listing to the NASDAQ Capital Market.
CEO Mary Berner acknowledged the financial headwinds impacting Cumulus, attributing the losses to “the pandemic, unfavorable secular trends, and a significant downdraft in national advertising.” Despite these challenges, Berner pointed to growth in digital sales as a positive indicator. Digital revenue increased by 5.3% to $154.2 million in 2024, representing 19% of total revenue. The Digital Marketing Services segment grew 27%, becoming the company’s largest digital division.
CFO Frank Lopez-Balboa reported total net revenue of $827.1 million, a 2.1% decline compared to the previous year. The company implemented aggressive cost-cutting measures, including layoffs and contract renegotiations, achieving $35 million in savings during the fourth quarter of 2024. These initiatives add to the $128 million in cost reductions made since 2019.
Looking ahead, Cumulus expects first-quarter 2025 revenue to decrease by mid-single digits. Nevertheless, Berner remains optimistic about the company’s long-term strategy, focusing on digital investments and ongoing cost management to navigate the difficult market conditions.
