Gray Media Q4 revenue beats expectations on MVPD subscriber boost

Reuters02-26
Gray Media Q4 revenue beats expectations on MVPD subscriber boost

Overview

  • Media company's Q4 revenue rose, beating analyst expectations

  • Net loss for Q4 narrower than analyst expectations

  • Company completed acquisition of WBBJ-TV, expected to reduce leverage

Outlook

  • Gray Media anticipates Q1 2026 revenue between $755 mln and $770 mln

  • Company expects $15 mln revenue from 2026 Winter Olympics broadcasts

  • Gray Media sees political advertising revenue between $25 mln and $30 mln in Q1 2026; core ad being flat

Result Drivers

  • MVPD SUBSCRIBER TRENDS - Better-than-expected MVPD subscriber trends drove year-over-year growth in net retransmission revenue

  • BROADCASTING EXPENSES - Achieved a 3% reduction in broadcasting expenses for full year 2025, enhancing financial flexibility

  • DEBT REFINANCING - 2025 debt refinancings extended debt maturities beyond 2026 and 2028, enhancing financial flexibility

Company press release: ID:nGNX8MjXt2

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$792 mln

$780.002 mln (5 Analysts)

Q4 Net Income

Beat

-$10 mln

-$28.29 mln (4 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the broadcasting peer group is "buy"

  • Wall Street's median 12-month price target for Gray Media Inc is $6.50, about 36.8% above its February 25 closing price of $4.75

  • The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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