ATLANTA, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Gray Media $(GTN)$ today announced its financial results for the fourth quarter that ended December 31, 2025.
EXECUTIVE COMMENTARY
Hilton Howell, Jr., Chairman and CEO, commented, "We delivered strong fourth quarter financial results, with revenue and Adjusted EBITDA exceeding consensus expectations. The quarter benefited from better-than-expected MVPD subscriber trends, which drove year-over-year growth in "Net Retransmission Revenue" (retransmission consent revenue less network affiliation fees). We also achieved a 3% reduction in broadcasting expenses for full year 2025. Additionally, our 2025 debt refinancings extended the majority of our debt maturities beyond the 2026 and 2028 political cycles, meaningfully enhancing our financial flexibility.
Looking ahead to 2026, we remain encouraged by the likelihood of local ownership reform that would help level the playing field for our industry, positioning us to close the transactions announced over the past two quarters and pursue additional strategic and disciplined opportunities. Our diversified portfolio of leading stations, in which we operate the first or second highest rated television station in nearly all of our markets, positions us well to capitalize on the expected 2026 midterm election spending and an improving general advertising environment. At the same time, we will continue to evaluate deleveraging and refinancing opportunities throughout 2026 to reduce our overall leverage and interest expense."
BUSINESS HIGHLIGHTS:
-- Acquisitions -- Remaining pending strategic and deleveraging acquisitions,
announced in 2025, are expected to close in the first half of 2026,
subject to customary closing conditions and regulatory approvals.
-- Network Affiliations - On December 23, 2025, we announced a multi-year
renewal of our NBC network affiliation agreements for all of our 54
NBC-affiliated markets nationwide. Our next network renewals occur in the
second half of 2027.
FINANCIAL HIGHLIGHTS:
-- Total Revenue -- $792 million in the fourth quarter of 2025, exceeded our
previously issued high-side guidance of $782 million.
-- Core Advertising Revenue - $392 million in the fourth quarter of 2025, an
increase of 3% compared to the fourth quarter of 2024, and exceeded our
previously issued high-side guidance of $390 million.
-- Retransmission Consent Revenue - $335 million in the fourth quarter of
2025, exceeded our previously issued high-side guidance of $330 million.
Net Retransmission Revenue of $134 million increased 3% in the fourth
quarter of 2025, compared to $130 million in the fourth quarter of 2024.
-- Political Advertising Revenue - $12 million in the fourth quarter of
2025, reflective of the off-year of the two-year political advertising
cycle, exceeded our previously issued high-side guidance of $8 million.
-- Operating Expenses -- Total broadcasting expense decreased $41 million in
the fourth quarter of 2025, or 7%, compared to fourth quarter of 2024. In
addition, for full year 2025, broadcasting expenses decreased $78 million,
or 3%, compared to full year 2024. Overall, broadcasting, production and
corporate expenses were all at, or below, the low end of our previously
issued guidance ranges for the fourth quarter of 2025.
-- Capital Expenditures -- Capital expenditures, excluding capital
expenditures related to Assembly Atlanta, were $74 million and $97
million during the years ended December 31, 2025 and 2024, respectively.
-- Assembly Atlanta Capital Expenditures and Doraville CID Reimbursement --
Cash proceeds received from the Doraville CID in December 2025, as
reimbursement for certain of our public infrastructure investment at
Assembly Atlanta, were $28 million. During full-year 2025, our gross
capital expenditures at Assembly Atlanta totaled $34 million and total
CID reimbursements were $33 million.
-- Income Tax Payments - Federal and state income tax payments were $38
million and $135 million during the years ended December 31, 2025 and
2024, respectively.
Selected Operating Data (Unaudited)
--------------------------------------------------------------------------
Three Months Ended
December 31, Year Ended December 31,
-------------------------- ------------------------
% %
Change Change
2025 2025
to to
2025 2024 2024 2025 2024 2024
--------- ------- ------ ------- ------- ------
(dollars in millions)
Revenue (less agency
commissions):
Core advertising $ 392 $ 380 3% $1,452 $1,490 (3)%
Political
advertising 12 250 (95)% 42 497 (92)%
Retransmission
consent 335 361 (7)% 1,429 1,482 (4)%
Other 16 17 (6)% 65 70 (7)%
---- ----- ----- -----
Total
broadcasting
revenue 755 1,008 (25)% 2,988 3,539 (16)%
Production
companies 37 37 0% 107 105 2%
---- ----- ----- -----
Total revenue $ 792 $1,045 (24)% $3,095 $3,644 (15)%
==== ===== ===== =====
Net Retransmission
Revenue:
Retransmission
consent revenue $ 335 $ 361 $1,429 $1,482
Less, broadcasting
network
affiliation fees (201) (231) (882) (932)
Net
Retransmission
Revenue $ 134 $ 130 3% $ 547 $ 550 (1)%
==== ===== ===== =====
Operating expenses
(1):
Broadcasting
Station expenses $ 356 $ 366 (3)% $1,356 $1,380 (2)%
Network
affiliation
fees 201 231 (13)% 882 932 (5)%
Non-cash
stock-based
compensation - 1 (100)% 1 5 (80)%
Total broadcasting
expense $ 557 $ 598 (7)% $2,239 $2,317 (3)%
==== ===== ===== =====
Production
companies $ 33 $ 26 27% $ 95 $ 83 14%
==== ===== ===== =====
Corporate and
administrative
Corporate
expenses $ 21 $ 20 5% $ 86 $ 87 (1)%
Transaction
Related
Expenses 2 - 6 -
Non-cash
stock-based
compensation 5 4 25% 21 17 24%
---- ----- ----- -----
Total corporate
and
administrative
expense $ 28 $ 24 17% $ 113 $ 104 9%
==== ===== ===== =====
Net (loss) income $ (10) $ 169 (106)% $ (85) $ 375 (123)%
Adjusted EBITDA (2) $ 179 $ 402 (55)% $ 670 $1,162 (42)%
(1) Excludes depreciation, amortization, impairment and (gain) loss on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net (loss) income included herein.
FINANCIAL POSITION AND LEVERAGE
DEBT SUMMARY- The table below summarizes our debt principal and cash balances:
December 31,
2025 2024
-------------- ---------------
(in millions)
Outstanding principal of debt obligations
(1)
First lien term loans $ 749 $ 1,893
Senior secured first lien loans 1,900 1,250
Senior secured second lien notes 1,150 -
Senior unsecured notes 2,011 2,547
----- ----- -----
Total outstanding principal of debt
obligations 5,810 5,690
Less cash (368) (135)
Total outstanding principal of debt
obligations, less cash $ 5,442 $ 5,555
====== ===== ===== =====
(1) Excludes letters of credit, accounts receivable securitization facility and preferred stock.
RECENT REFINANCING ACTIVITIES - On December 12, 2025, we completed the issuance of an additional $250 million of our 9.625% Senior Secured Second Lien Notes due 2032 and used a portion of the proceeds to redeem $125 million of our higher interest rate 10.5% Senior Secured First Lien Notes due 2029. We have no debt maturities due prior to 2028.
LEVERAGE METRICS - As of December 31, 2025, calculated as set forth in our Senior Credit Agreement (unaudited):
-- First Lien Leverage Ratio 2.43 to 1.00 -- Secured Leverage Ratio 3.65 to 1.00 -- Leverage Ratio 5.80 to 1.00
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