Gray Media Earnings Call Transcripts
Fiscal Year 2026
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Second quarter 2026 revenue rose 9% year-over-year to $839 million, exceeding guidance, with political and retransmission revenues both outperforming expectations. Multiple acquisitions and debt reduction initiatives strengthened the balance sheet, while Q3 guidance anticipates robust political ad revenue and stable core advertising.
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Significant M&A integration and disciplined capital allocation are driving operational efficiencies and leverage reduction. Political advertising and local content strength position the company well for 2024, while AI and Assembly Atlanta offer long-term growth opportunities.
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First quarter 2026 revenue and political advertising exceeded guidance, with digital and local direct business showing strong growth. Broadcasting expenses declined, major retrans renewals were completed, and acquisitions advanced. Economic uncertainty is impacting ad visibility.
Fiscal Year 2025
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Q4 2025 revenue and Adjusted EBITDA exceeded guidance, with core advertising and digital segments showing growth. Net Retransmission Revenue returned to growth, leverage ratios improved, and significant progress was made in M&A, sports content, and AI-driven efficiency.
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Q3 2025 revenue and EBITDA exceeded guidance, with strong cost control and positive ad trends. M&A activity expanded market presence, while balance sheet improvements and new streaming initiatives position the company for growth. Optimism remains high for 2026, especially in political ad revenue.
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Q2 2025 revenue and expenses beat original guidance, with $772M revenue and $56M net loss. Multiple M&A deals will add six new markets and are expected to be cash flow accretive and deleveraging. Leverage ratios improved, and no material tax payments are expected for 2025.
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Q1 2025 revenue and adjusted EBITDA declined year-over-year but exceeded guidance, with political ad revenue outperforming expectations. Cost controls and deleveraging continued, while liquidity was enhanced through expanded credit facilities. Assembly Studios contributed positively, and local sports rights expanded to 80% of markets.
Fiscal Year 2024
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Q4 2024 saw revenue up 21% and net income swing to $156 million, driven by political ads and cost control. Debt was reduced by $520 million, and local sports rights plus studio productions expanded. Core ad revenue faces near-term headwinds, but outlook for growth is improving.
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Q3 2024 saw 18% revenue growth and a return to profitability, driven by strong political and digital ad sales, while core ad revenue grew 1% despite headwinds. The company is on track to reduce debt by $500 million in 2024 and has implemented $60 million in annualized cost savings.
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Q2 2024 revenue rose 2% year-over-year to $826 million, with net income up to $22 million and Adjusted EBITDA flat at $225 million. Core ad revenue softened, but political and digital revenues grew, and debt refinancing extended maturities to 2029. Leverage is expected to decline by year-end.