TMT Credit Research: IHRT Credit: A Change of Heart - Closing our 1L Buy Recommendation

Research evidence excerpt

TMT Credit Research: IHRT Credit: A Change of Heart - Closing our 1L Buy Recommendation

Idea

May 12, 2026 02:24 AM GMT

Morgan Stanley & Co. LLCMTMT Credit Research | North America David M Hamburger

Credit Analyst

IHRT Credit: A Change of Heart - David.Hamburger@morganstanley.comJuliana Gonzalez +1 212 761-1580

Juliana.Gonzalez.Montalvo@morganstanley.com +1 212 761-0918

Closing our 1L Buy

See our prior notes:

- IHRT Credit: When Calls the Heart? (27 AprRecommendation

2026)

- IHRT Credit: 2026 Guidance Allows the

Closing our buy recommendation on IHRT 9⅛ '29 and TL due '29

(i)Heart To Settle For Now (4 Mar 2026)

following substantial spread tightening driven by expectations - HY Media: Fishing for Yield Amid Rich

for radio broadcast consolidation, liability management, Valuations (10 Feb 2026)

podcasting, programmatic and political advertising. At current - IHRT Credit: With Great Expectations Comes

levels, we think further upside is dependent upon near-flawless Great Responsibility (13 Nov 2025)

2H execution to deliver a substantial ramp in 2H26 EBITDA/FCF - IHRT Credit: Give Your (i)Heart a Break (18 Aug

2025)

to meet full-year guidance.

• 1Q EBITDA miss was not thesis-breaking but it lowered the quality of the

beat on revenue: 1Q revenue grew 9.6%, but Adjusted EBITDA declined

11.4% to $92.6mn as SG&A rose 11.9%, driven primarily by higher non-cash

trade and barter expense tied to strategic marketing initiatives. Management

characterized the EBITDA shortfall as mostly timing-related and expects

these co-marketing partnerships to taper in 2H26. For creditors, the non-cash

nature matters, but the volatility reduces visibility into cash EBITDA

conversion and underscores that revenue growth is not translating into cash

flow.