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Gray Media Announces Second Quarter Financial Results

1. GTN reported total revenue of $772 million, down 7% year-over-year. 2. Political advertising revenue plummeted 81%, reflecting off-cycle trends. 3. Net loss of $69 million contrasts with a $9 million profit last year. 4. Pending acquisitions aim to reduce leverage and strengthen market position. 5. Guidance suggests continued decline in core advertising revenue for Q3 2025.

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Why Bearish?

The significant losses and declining revenues may sour investor sentiment. Historical examples, such as MGM's drop following poor earnings, underscore similar reactions.

How important is it?

The financial performance and upcoming acquisitions directly affect GTN's market confidence. Poor earnings can lead to reevaluation by investors.

Why Short Term?

Investors will likely react to immediate financial results and guidance. Recovery could take longer if revenue trends do not improve.

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ATLANTA, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Gray Media, Inc. (“Gray Media,” “Gray,” “we,” “us” or “our”) (NYSE: GTN) today announced its financial results for the quarter ended June 30, 2025, which included financial results consistent with our updated guidance for the quarter, provided on July 8, 2025. We continue to improve our local content offerings and in particular our broadcast of professional and collegiate sports, optimize our cost structure, strengthen our balance sheet and increase our financial flexibility. We look forward to continuing these trends. Summary of Second Quarter Results Operating Highlights: Total revenue in the second quarter of 2025 was $772 million, a decrease of 7% from the second quarter of 2024.Core advertising revenue in the second quarter of 2025 was $361 million, a decrease of 3%, consistent with our updated guidance for the quarter.Retransmission consent revenue in the second quarter of 2025 was $369 million, a decrease of 1% from the second quarter of 2024, consistent with our updated guidance for the quarter.Political advertising revenue in the second quarter of 2025 was $9 million, a decrease of 81% from the second quarter of 2024, consistent with the off-year of the two-year political advertising cycle, consistent with our updated guidance for the quarter.During the second quarter of 2025, we recognized a non-cash impairment of intangible assets of $28 million, related to the non-renewal of the network affiliation with the CBS Network at our television station WANF in the Atlanta, Georgia market (DMA 7).Net loss attributable to common stockholders was $69 million in the second quarter of 2025, compared to net income attributable to common stockholders of $9 million in the second quarter of 2024, due primarily to the cyclical decrease in political advertising revenue.Adjusted EBITDA was $169 million in the second quarter of 2025, compared to $225 million in the second quarter of 2024, due primarily to the cyclical decrease in political advertising revenue. Other Key Metrics: During the second quarter of 2025, we reduced the principal amount of our outstanding debt by $22 million.As of June 30, 2025, calculated as set forth in our Senior Credit Agreement, our First Lien Leverage Ratio, Secured Leverage Ratio and Leverage Ratio, each net of $199 million of cash, were 2.99 to 1.00, 2.99 to 1.00 and 5.60 to 1.00, respectively.As of June 30, 2025, we had $692 million of borrowing availability under our $700 million undrawn Revolving Credit Facility (availability reduced by outstanding, undrawn letters of credit) and our $400 million AR Facility was fully drawn.On July 18, 2025, we completed a private offering of $900 million aggregate principal amount of 9.625% senior secured second lien notes due 2032 (the “2032 Notes”) at par. The proceeds of 2032 Notes together with $50 million borrowed under our Revolving Credit Facility, were used to (i) redeem all $528 million of our outstanding 7.0% senior notes due 2027 (the “2027 Notes”), (ii) repay $403 million of our 2024 Term Loan due June 4, 2029, and (iii) pay transaction expenses incurred in connection with the offering.Also, on July 18, 2025, we amended our Senior Credit Facility to increase the availability under our Revolving Credit Facility by $50 million to $750 million, and to extend the maturity date of the Revolving Credit Facility to December 1, 2028.On July 25, 2025, we completed a private offering of $775 million aggregate principal amount of 7.25% senior secured first lien notes due 2033 (the “2033 Notes”) at par. The proceeds of 2033 Notes were used to (i) repay $630 million of our 2021 Term Loan due December 1, 2028, (ii) repay $80 million of our 2024 Term Loan due June 4, 2029, (iii) repay all $50 million then outstanding under our Revolving Credit Facility, and (iv) pay transaction expenses incurred in connection with the offering.Non-cash stock-based compensation was $5 million and $6 million during the second quarter of 2025 and 2024, respectively. Income Taxes During the 2025 three and six-month period, we made $39 million of federal and state income tax payments. While we continue to evaluate the impact of recent income tax legislation, we currently expect that for the remainder of 2025 we will not be required to make any material income tax payments. Pending Acquisitions and Divestitures Subsequent to the end of the second quarter, we entered into and announced separate agreements involving television station acquisitions and divestitures with The E.W. Scripps Company (“Scripps”), Sagamore Hill Broadcasting, Inc. (“SGH”) and Block Communications, Inc. (“BCI”). In addition to advancing the strategic goals of our television station operations, we anticipate that upon closing all of these transactions, they will also contribute to reducing our Leverage Ratio, as defined in our Senior Credit Agreement. On July 7, 2025, we announced that we had entered into agreements with Scripps to swap television stations across five mid-sized and small markets. The transaction involves the acquisition by Gray of WSYM (Fox) in Lansing, Michigan (DMA 113), and KATC (ABC) in Lafayette, Louisiana (DMA 125), and the sale by Gray of KKTV (CBS) in Colorado Springs, Colorado (DMA 86), KKCO (NBC) and low power station KJCT-LP (ABC) in Grand Junction, Colorado (DMA 187), and KMVT (CBS) and low power station KSVT-LD (Fox) in Twin Falls, Idaho (DMA 189). The swap involves the even exchange of comparable assets, and, as such, neither company will pay cash consideration to the other. On July 31, 2025, we announced that we reached an agreement with SGH to acquire SGH’s WLTZ (NBC) in Columbus, Georgia (DMA 127) and KJTV (FOX) in Lubbock, Texas (DMA 140) for a total purchase price of less than $2 million. For the past several years, Gray has provided back-office services to both stations through WTVM (ABC) in Columbus and KCBD (NBC) in Lubbock, respectively. On August 1, 2025, we announced that we reached an agreement with BCI to acquire its television stations for $80 million. The transaction includes WDRB (FOX) and WBKI (CW) in Louisville, Kentucky (DMA 49), where Gray owns WAVE (NBC). The transaction also includes WAND (NBC) in the Springfield-Champaign-Decatur, Illinois, market (DMA 92), and WLIO (NBC) and associated low power television stations in Lima, Ohio (DMA 190). We anticipate closing the transactions with Scripps, SGH and BCI in the fourth quarter of this year following receipt of regulatory approvals, including certain waivers, and other customary approvals. For the quarter ending, September 30, 2025, we currently expect that Core advertising revenue will be down compared to the quarter September 30, 2024, due in part to the effects of the 2024 Olympic Games in the third quarter of 2024. In that period, we recorded total advertising revenue of $20 million from the 2024 Olympic Games, of which $16 million was included in our Core advertising revenue and $4 million was recorded in our political advertising revenue. Based on our current forecasts for the quarter ending September 30, 2025, we anticipate the following key financial results, as outlined below in approximate ranges and as compared to the quarter ending September 30, 2024, as well as certain currently anticipated full-year financial results. As always, guidance is an estimate that may change in the future based on a number of factors and therefore may not reflect actual results:   Quarter Ending    September 30, 2025  September 30, 2024 (Guidance)  (Actual) (Unaudited) Low High  (in millions)Revenue (less agency commissions):      Core advertising $365 $345 $355Political advertising  173  6  7Retransmission consent  369  343  345Production companies  26  26  27Other  17  15  16Total revenue $950 $735 $750       Operating expenses (excluding depreciation, amortization and loss on disposal of assets):  Broadcasting:      Station expenses $336 $342 $345Network affiliation fees  234  213  215Non-cash stock-based compensation  1  -  -Total broadcasting expense $571 $555 $560       Production companies $22 $24 $25       Corporate and administrative:      Corporate expenses $20 $25 $30Non-cash stock-based compensation  4  5  5Total corporate and administrative expense $24 $30 $35             Year Ending      December 31, 2025      (Guidance)Supplemental full-year information:     (in millions)Interest expense     $460Amortization of deferred financing costs     $16Preferred stock dividends     $52Common stock dividends     $32Total capital expenditures, excluding Assembly Atlanta     $85 - $90Capital expenditures for Assembly Atlanta, net of anticipated reimbursements   $0Income tax payments, net of refunds     $39 Selected Operating Data (Unaudited)   Three Months Ended June 30,     % Change   % Change     2025 to   2025 to  2025   2024 2024  2023  2023 (dollars in millions)Revenue (less agency commissions):         Core advertising$361  $373 (3)% $379  (5)%Political advertising 9   47 (81)%  12  (25)%Retransmission consent 369   371 (1)%  394  (6)%Other 15   17 (12)%  16  (6)%Total broadcasting revenue 754   808 (7)%  801  (6)%Production companies 18   18 0%  12  50%Total revenue$772  $826 (7)% $813  (5)%          Operating expenses (1):         Broadcasting         Station expenses$330  $331 0% $314  5%Network affiliation fees 233   233 0%  235  (1)%Transaction Related Expenses -   - 0%  1  (100)%Non-cash stock-based compensation -   1 (100)%  2  (100)%Total broadcasting expense$563  $565 0% $552  2%          Production companies$20  $14 43% $11  82%          Corporate and administrative:         Corporate expenses$19  $23 (17)% $25  (24)%Transaction Related Expenses 1   - 0%  -  100%Non-cash stock-based compensation 5   5 0%  5  0%Total corporate and administrative expense$25  $28 (11)% $30  (17)%          Net (loss) income$(56) $22 (355)% $4  (1500)%          Adjusted EBITDA$169  $225 (25)% $227  (26)%           Six Months Ended June 30,     % Change   % Change     2025 to   2025 to  2025   2024 2024  2023  2023 (dollars in millions)Revenue (less agency commissions):         Core advertising$705  $745 (5)% $736  (4)%Political advertising 22   74 (70)%  20  10%Retransmission consent 748   752 (1)%  789  (5)%Other 34   36 (6)%  35  (3)%Total broadcasting revenue 1,509   1,607 (6)%  1,580  (4)%Production companies 45   42 7%  34  32%Total revenue$1,554  $1,649 (6)% $1,614  (4)%          Operating expenses (1):         Broadcasting         Station expenses$672  $678 (1)% $634  6%Network affiliation fees 467   467 0%  470  (1)%Transaction Related Expenses -   - 0%  1  (100)%Non-cash stock-based compensation 1   3 (67)%  2  (50)%Total broadcasting expense$1,140  $1,148 (1)% $1,107  3%          Production companies$40  $35 14% $70  (43)%          Corporate and administrative:         Corporate expenses$45  $47 (4)% $49  (8)%Transaction Related Expenses 1   - 0%  -  100%Non-cash stock-based compensation 11   9 22%  7  57%Total corporate and administrative expense$57  $56 2% $56  2%          Net (loss) income$(65) $110 (159)% $(27) 141%          Adjusted EBITDA$329  $422 (22)% $390  (16)%           (1)   Excludes depreciation, amortization, impairment and gain on disposal of assets.  Detail Table of Operating Results (Unaudited)       Three Months Ended Six Months Ended June 30, June 30,  2025   2024   2025   2024  (in millions, except for per share information)Revenue (less agency commissions):       Broadcasting$754  $808  $1,509  $1,607 Production companies 18   18   45   42 Total revenue (less agency commissions) 772   826   1,554   1,649 Operating expenses before depreciation, amortization       and gain on disposal of assets, net:       Broadcasting 563   565   1,140   1,148 Production companies 20   14   40   35 Corporate and administrative 25   28   57   56 Depreciation 32   36   66   72 Amortization of intangible assets 28   32   57   63 Impairment of intangible assets 28   -   28   - Gain on disposal of assets, net (6)  (1)  (8)  (1)Operating expenses 690   674   1,380   1,373 Operating income 82   152   174   276 Other income (expense):       Miscellaneous income, net -   2   1   112 Interest expense (117)  (118)  (235)  (233)(Loss) gain from early extinguishment of debt -   (7)  1   (7)(Loss) income before income taxes (35)  29   (59)  148 Income tax expense 21   7   6   38 Net (loss) income (56)  22   (65)  110 Preferred stock dividends 13   13   26   26 Net (loss) income attributable to common stockholders$(69) $9  $(91) $84         Basic per share information:       Net (loss) income attributable to common stockholders$(0.71) $0.09  $(0.95) $0.89 Weighted-average shares outstanding 97   95   96   94         Diluted per share information:       Net (loss) income attributable to common stockholders$(0.71) $0.09  $(0.95) $0.88 Weighted-average shares outstanding 97   96   96   95              Other Financial Data (Unaudited)     Six Months Ended June 30,  2025   2024  (in millions)    Net cash provided by operating activities$163  $86 Net cash (used in) provided by investing activities (14)  50 Net cash used in financing activities (85)  (82)Net increase in cash$64  $54      As of June 30, 2025 December 31, 2024 (in millions)    Cash$199  $135 Long-term debt, including current portion, less deferred   financing costs$5,590  $5,621 Series A Perpetual Preferred Stock$650  $650     Revolving Credit Facility:   Revolving Credit Facility commitment$700  $680 Undrawn outstanding letters of credit (8)  (6)Borrowing availability under Revolving Credit Facility$692  $674      The Company We are a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets serving 113 television markets that collectively reach approximately 37 percent of US television households. The portfolio includes 78 markets with the top-rated television station and 99 markets with the first and/or second highest rated television station, as well as the largest Telemundo Affiliate group with 44 markets. We also own Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services. Our additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios.  Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act This press release contains certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by us. These statements are statements other than those of historical fact and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond our control, include: estimates of future revenue, future expenses, future capital expenditures, future income tax payments and other future events. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained therein, which reports are made publicly available via our website, www.graymedia.com. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise. Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2024, and may be contained in reports subsequently filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.  Conference Call Information We will host a conference call to discuss our second quarter operating results on August 8, 2025. The call will begin at 10:00 AM Eastern Time. The live dial-in number is 1-800-285-6670. The call will be webcast live and available for replay at www.graymedia.com. The taped replay of the conference call will be available at 1-888-556-3470 and the confirmation code is 898476, until September 7, 2025. Gray Contacts Web site: www.graymedia.com  Hilton H. Howell, Jr., Executive Chairman and Chief Executive Officer, (404) 266-5513 Pat LaPlatney, President and Co-Chief Executive Officer, (334) 206-1400 Jeffrey R. Gignac, Executive Vice President and Chief Financial Officer, (404) 504-9828 Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, (404) 266-8333 Non-GAAP Terms In addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this earnings release discusses “Adjusted EBITDA” a non-GAAP performance measure that management uses to evaluate the performance of the business. Adjusted EBITDA is calculated as net income (loss), adjusted for income tax expense (benefit), interest expense, loss on extinguishment of debt, non-cash stock-based compensation costs, non-cash 401(k) expense, depreciation, amortization of intangible assets, impairment of goodwill and other intangible assets, impairment of investments, loss (gain) on asset disposals and certain other miscellaneous items. We consider Adjusted EBITDA to be an indicator of our operating performance. In addition to results prepared in accordance with GAAP, “Leverage Ratio Denominator” is a metric that management uses to calculate our compliance with our financial covenants in our indebtedness agreements. This metric is calculated as specified in our Senior Credit Agreement and is a significant measure that represents the denominator of a formula used to calculate compliance with material financial covenants within the Senior Credit Agreement that govern our ability to incur indebtedness, incur liens, make investments and make restricted payments, among other limitations usual and customary for credit agreements of this type. Accordingly, management believes this metric is a very material metric to our debt and equity investors. Leverage Ratio Denominator gives effect to the revenue and broadcast expenses of all completed acquisitions and divestitures as if they had been acquired or divested, respectively, on July 1, 2023. It also gives effect to certain operating synergies expected from the acquisitions and related financings and adds back professional fees incurred in completing the acquisitions. Certain of the financial information related to the acquisitions, if applicable, has been derived from, and adjusted based on, unaudited, un-reviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from this financial information if the acquisitions had been completed on the stated date. In addition, the presentation of Leverage Ratio Denominator as determined in the Senior Credit Agreement and the adjustments to such information, including expected synergies, if applicable, resulting from such transactions, may not comply with GAAP or the requirements for pro forma financial information under Regulation S-X under the Securities Act of 1933. Leverage Ratio Denominator, as determined in the Senior Credit Agreement, represents an average amount for the preceding eight quarters then ended. We define Transaction Related Expenses as incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation, and contract termination fees. We present certain line items from our selected operating data, net of Transaction Related Expenses, in order to present a more meaningful comparison between periods of our operating expenses and our results of operations. Our “Adjusted Total Indebtedness”, “First Lien Adjusted Total Indebtedness” and “Secured Adjusted Total Indebtedness” in each case net of all cash, represents the amount of outstanding principal of our long-term debt, plus certain other obligations as defined in our Senior Credit Agreement for the applicable amount of indebtedness. These non-GAAP terms are not defined in GAAP and our definitions may differ from, and therefore may not be comparable to, similarly titled measures used by other companies, thereby limiting their usefulness. Such terms are used by management in addition to, and in conjunction with, results presented in accordance with GAAP and should be considered as supplements to, and not as substitutes for, net income and cash flows reported in accordance with GAAP.       Reconciliation of Adjusted EBITDA (Unaudited):       Three Months Ended June 30,  2025   2024   2023 (in millions)Net (loss) income$(56) $22  $4Adjustments to reconcile from net (loss) income to Adjusted EBITDA     Depreciation 32   36   35Amortization of intangible assets 28   32   50Impairment of intangible assets 28   -   -Non-cash stock-based compensation 5   6   7(Gain) loss on disposal of assets, net (6)  (1)  16Miscellaneous (income) expense, net -   (2)  1Interest expense 117   118   109Loss from early extinguishment of debt -   7   -Income tax expense 21   7   5Adjusted EBITDA$169  $225  $227      Supplemental Information:     Amortization of deferred loan costs 4   4   3Preferred stock dividends 13   13   13Common stock dividends 8   8   7Purchases of property and equipment (1) 14   22   26Reimbursements of property and equipment purchases (2) -   -   -Income taxes paid, net of refunds 39   83   24      (1) Excludes $11 million, $7 million and $77 million related to the Assembly Atlanta project in 2025, 2024 and 2023, respectively.(2) Excludes $1 million and $12 million related to the Assembly Atlanta project in 2024 and 2023, respectively.               Reconciliation of Adjusted EBITDA (Unaudited):       Six Months Ended June 30,  2025   2024   2023  (in millions)Net (loss) income$(65) $110  $(27)Adjustments to reconcile from net (loss) income to Adjusted EBITDA     Depreciation 66   72   70 Amortization of intangible assets 57   63   99 Impairment of intangible assets 28   -   - Non-cash stock-based compensation 12   12   9 (Gain) loss on disposal of assets, net (8)  (1)  26 Miscellaneous (income) expense, net (1)  (112)  3 Interest expense 235   233   213 (Gain) loss from early extinguishment of debt (1)  7   3 Income tax expense (benefit) 6   38   (6)Adjusted EBITDA$329  $422  $390       Supplemental Information:     Amortization of deferred loan costs 8   7   7 Preferred stock dividends 26   26   26 Common stock dividends 16   16   14 Purchases of property and equipment (3) 24   41   45 Reimbursements of property and equipment purchases (4) -   -   - Income taxes paid, net of refunds 39   85   24       (3) Excludes $16 million, $22 million and $168 million related to the Assembly Atlanta project in 2025, 2024 and 2023, respectively.(4) Excludes $5 million, $6 million and $38 million related to the Assembly Atlanta project in 2025, 2024 and 2023, respectively.          Calculation of Leverage Ratio, First Lien Leverage Ratio and Secured Leverage Ratio, as each is defined in our Senior Credit Agreement (Unaudited):     Eight Quarters   Ended  June 30, 2025  (dollars in millions)   Net income $261 Adjustments to reconcile from net income to Leverage Ratio  Denominator as defined in our Senior Credit Agreement:  Depreciation  286 Amortization of intangible assets  278 Non-cash stock-based compensation  45 Common stock contributed to 401(k) plan  10 Loss on disposal of assets, net  7 Gain on disposal of investment, not in the ordinary course  (110)Interest expense  948 Gain on early extinguishment of debt  (35)Income tax expense  122 Amortization of program broadcast rights  58 Impairment of investment, goodwill and intangible assets  125 Payments for program broadcast rights  (59)Pension gain  (4)Contributions to pension plans  (4)Adjustments for unrestricted subsidiaries  21 Adjustments for stations acquired or divested, financings and expected  synergies during the eight quarter period  (1)Transaction Related Expenses  1 Total eight quarters ended June 30, 2025 $ 1,949  Leverage Ratio Denominator (total eight quarters ended  June 30, 2025, divided by 2) $ 975       June 30, 2025  (dollars in millions)   Total outstanding principal, including current portion $5,651 Letters of credit outstanding  8 Cash  (199)Adjusted Total Indebtedness $ 5,460  Leverage Ratio (maximum permitted incurrence is 7.00 to 1.00)  5.60    Total outstanding principal secured by a first lien $3,112 Cash  (199)First Lien Adjusted Total Indebtedness $ 2,913  First Lien Leverage Ratio (maximum permitted incurrence is 3.50 to 1.00) (1)  2.99    Total outstanding principal secured by a lien $3,112 Cash  (199)Secured Adjusted Total Indebtedness $ 2,913  Secured Leverage Ratio (maximum permitted incurrence is 5.50 to 1.00)  2.99    (1) At any time any amounts are outstanding under our revolving credit facility, our maximum First Lien Leverage Ratio cannot exceed 4.25 to 1.00.   

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