Lee Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Q2 adjusted EBITDA nearly doubled year-over-year, driven by cost reductions and digital growth. Digital revenue now makes up 56% of total revenue, and the outlook for mid-single digit adjusted EBITDA growth is reaffirmed. Debt reduction and a strong cash position support future investments.
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The meeting focused on digital transformation, board refreshment, and strong governance. All four shareholder proposals passed, including director elections and incentive plan amendments. No questions were submitted by stockholders.
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Q1 2026 saw Adjusted EBITDA rise 61% year-over-year to $12M, with digital revenue now 54% of total revenue. A $50M equity raise and reduced debt interest rate will save $18M annually, supporting digital growth and long-term sustainability.
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Four key proposals were presented, including increasing authorized shares and approving a major PIPE stock issuance. All proposals voted on passed, and no questions were submitted by stockholders during the meeting.
Fiscal Year 2025
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Fiscal 2025 saw digital revenue reach 53% of total, with strong growth in digital subscriptions and advertising. Cost reductions, asset sales, and a planned rights offering support further digital transformation and deleveraging.
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Q3 saw strong digital revenue growth, with digital now 55% of total revenue and digital subscription revenue up 16% year-over-year. Cost reductions and new AI products are driving improved margins and long-term sustainability, despite lingering effects from a prior cyber incident.
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Q2 results were impacted by a major cyber incident, but digital revenue grew 4% year-over-year, led by 20% growth in digital subscriptions. Cost reductions and asset sales support a positive free cash flow outlook for the second half of 2025.
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Digital revenue grew 5% year-over-year in Q1, led by 14% growth in digital subscriptions and agency revenue, with digital gross margin at 70%. AI-driven initiatives and cost reductions are expected to accelerate growth, supporting a 7%-10% digital revenue increase for FY2025.
Fiscal Year 2024
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Digital revenue now exceeds print at 51% of total, with strong growth in digital subscriptions and marketing services. New AI partnerships are expected to drive further revenue and margin expansion, supporting long-term digital and profitability targets.
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Digital revenue now exceeds 50% of total revenue, driven by rapid growth in digital subscriptions and advertising. The company targets $450 million in digital revenue and 1.2 million digital subscribers by 2028, with high margins and a sustainable digital-only business model.
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Digital revenue surpassed print for the first time, driving a 9% year-over-year increase in digital revenue and 23% growth in digital subscribers. Cost management and asset sales supported improved guidance, while print revenue continued to decline.