GTN — Gray Media, Inc.

Summary of Gray Media, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $792 million for 2025, exceeding guidance.
• Operating Expenses: $618 million in Q4, $5 million below guidance; broadcasting expenses declined by $78 million (3%) year-over-year.
• Net Loss: $23 million attributable to common stockholders.
• Adjusted EBITDA: $179 million for the year.
• Political Advertising Revenue: $12 million, exceeding expectations for an off-cycle period.
• Net Retransmission Revenue: Stabilized at $547 million, returning to growth in Q4 2025 compared to Q4 2024.

2. Strategic Updates and Business Highlights:

• Completed acquisition of WBBJ-TV for $25 million; additional transactions pending regulatory approval.
• Enhanced local content offerings, winning 10 national Edward R. Murrow Awards.
• Launched new programs like "Aging Untold" and expanded local sports broadcasts.
• Transitioning digital platforms to Google Cloud's Quick Play, enhancing viewer engagement.
• Renewed NBC affiliation for three years and expanded Telemundo portfolio to 47 markets.

3. Forward Guidance and Outlook:

• Q1 2026 guidance for core advertising revenue is flat compared to 2025.
• Anticipated political revenue for Q1 2026 is projected between $25 million to $30 million.
• Expect modest growth in net retransmission revenue for 2026.
• Capital expenditures for 2026 estimated at $140 million, with plans for several construction projects.

4. Bad News, Challenges, or Points of Concern:

• Net loss of $23 million indicates ongoing financial challenges.
• Core advertising revenue finished down 3% for 2025; automotive sector remains weak.
• Subscriber trends for retransmission are still declining, though at a slower rate.
• Competitive pressures from larger companies like Google and Meta, necessitating industry consolidation.

5. Notable Q&A Insights:

• Management expressed optimism about potential industry consolidation, particularly in light of Nexstar's activities.
• Discussions around leverage highlighted a goal to reduce leverage towards four times through M&A and political revenue.
• The impact of WANF's transition on net retransmission revenue was acknowledged, with a focus on improving subscriber trends.
• AI initiatives are enhancing operational efficiency but have not yet been quantified in terms of cost savings.

Overall, Gray Media, Inc. reported solid revenue performance and strategic advancements in 2025, despite facing challenges in profitability and industry competition. The outlook for 2026 appears cautiously optimistic, particularly with anticipated political revenue and ongoing efforts to stabilize and grow retransmission revenue.