Gray Media Announces Second Quarter Financial Results
Gray Media (NYSE:GTN) reported Q2 2025 financial results showing total revenue of $772 million, down 7% year-over-year. Core advertising revenue decreased 3% to $361 million, while retransmission consent revenue declined 1% to $369 million. The company reported a net loss of $69 million compared to net income of $9 million in Q2 2024.
The company completed significant debt refinancing, including a $900 million offering of 9.625% senior secured notes and a $775 million offering of 7.25% senior secured notes. Gray also announced strategic acquisitions and divestitures with Scripps, Sagamore Hill Broadcasting, and Block Communications, expected to close in Q4 2025.
For Q3 2025, Gray expects core advertising revenue to decline compared to Q3 2024, which included $20 million in Olympic Games advertising revenue.
Gray Media (NYSE:GTN) ha riportato i risultati finanziari del secondo trimestre 2025 con ricavi totali pari a 772 milioni di dollari, in calo del 7% rispetto all'anno precedente. I ricavi pubblicitari core sono diminuiti del 3%, attestandosi a 361 milioni di dollari, mentre i ricavi da consenso di ritrasmissione sono scesi dell'1% a 369 milioni di dollari. L'azienda ha registrato una perdita netta di 69 milioni di dollari rispetto a un utile netto di 9 milioni di dollari nel secondo trimestre 2024.
La società ha completato un'importante ristrutturazione del debito, inclusa un'offerta di 900 milioni di dollari di obbligazioni senior garantite al 9,625% e un'offerta di 775 milioni di dollari di obbligazioni senior garantite al 7,25%. Gray ha inoltre annunciato acquisizioni e cessioni strategiche con Scripps, Sagamore Hill Broadcasting e Block Communications, che si prevede si concludano nel quarto trimestre 2025.
Per il terzo trimestre 2025, Gray prevede un calo dei ricavi pubblicitari core rispetto al terzo trimestre 2024, che includeva 20 milioni di dollari di ricavi pubblicitari derivanti dai Giochi Olimpici.
Gray Media (NYSE:GTN) informó los resultados financieros del segundo trimestre de 2025 con ingresos totales de 772 millones de dólares, una disminución del 7% interanual. Los ingresos principales por publicidad disminuyeron un 3% hasta 361 millones de dólares, mientras que los ingresos por consentimiento de retransmisión bajaron un 1% hasta 369 millones de dólares. La compañía reportó una pérdida neta de 69 millones de dólares en comparación con una ganancia neta de 9 millones en el segundo trimestre de 2024.
La empresa completó una importante refinanciación de deuda, incluyendo una oferta de 900 millones de dólares en notas senior garantizadas al 9,625% y una oferta de 775 millones de dólares en notas senior garantizadas al 7,25%. Gray también anunció adquisiciones y desinversiones estratégicas con Scripps, Sagamore Hill Broadcasting y Block Communications, que se espera cierren en el cuarto trimestre de 2025.
Para el tercer trimestre de 2025, Gray espera que los ingresos principales por publicidad disminuyan en comparación con el tercer trimestre de 2024, que incluyó 20 millones de dólares en ingresos publicitarios de los Juegos Olímpicos.
Gray Media (NYSE:GTN)는 2025년 2분기 재무 실적을 발표하며 총 매출액이 7억 7,200만 달러로 전년 동기 대비 7% 감소했다고 밝혔습니다. 핵심 광고 수익은 3% 감소한 3억 6,100만 달러였고, 재전송 동의 수익은 1% 감소한 3억 6,900만 달러를 기록했습니다. 회사는 2024년 2분기 순이익 900만 달러와 비교해 6,900만 달러의 순손실을 보고했습니다.
회사는 9.625% 고정 이율의 담보 선순위 채권 9억 달러와 7.25% 고정 이율의 담보 선순위 채권 7억 7,500만 달러 발행을 포함한 대규모 부채 재융자를 완료했습니다. Gray는 또한 Scripps, Sagamore Hill Broadcasting, Block Communications와의 전략적 인수 및 매각을 발표했으며, 이는 2025년 4분기에 완료될 예정입니다.
2025년 3분기에는 2024년 3분기와 비교해 핵심 광고 수익이 감소할 것으로 예상되며, 2024년 3분기에는 2,000만 달러의 올림픽 광고 수익이 포함되어 있었습니다.
Gray Media (NYSE:GTN) a publié ses résultats financiers du deuxième trimestre 2025, affichant un chiffre d'affaires total de 772 millions de dollars, en baisse de 7 % par rapport à l'année précédente. Les revenus publicitaires principaux ont diminué de 3 % pour atteindre 361 millions de dollars, tandis que les revenus de consentement à la retransmission ont reculé de 1 % à 369 millions de dollars. La société a enregistré une perte nette de 69 millions de dollars contre un bénéfice net de 9 millions au deuxième trimestre 2024.
L'entreprise a finalisé un important refinancement de sa dette, comprenant une émission de 900 millions de dollars d'obligations senior garanties à 9,625 % et une émission de 775 millions de dollars d'obligations senior garanties à 7,25 %. Gray a également annoncé des acquisitions et cessions stratégiques avec Scripps, Sagamore Hill Broadcasting et Block Communications, dont la clôture est prévue au quatrième trimestre 2025.
Pour le troisième trimestre 2025, Gray prévoit une baisse des revenus publicitaires principaux par rapport au troisième trimestre 2024, qui comprenait 20 millions de dollars de revenus publicitaires liés aux Jeux Olympiques.
Gray Media (NYSE:GTN) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Gesamtumsatz von 772 Millionen US-Dollar, was einem Rückgang von 7 % im Jahresvergleich entspricht. Die Kernwerbeeinnahmen sanken um 3 % auf 361 Millionen US-Dollar, während die Einnahmen aus der Weiterverbreitungszustimmung um 1 % auf 369 Millionen US-Dollar zurückgingen. Das Unternehmen verzeichnete einen Nettoverlust von 69 Millionen US-Dollar im Vergleich zu einem Nettogewinn von 9 Millionen US-Dollar im zweiten Quartal 2024.
Das Unternehmen schloss eine bedeutende Umschuldung ab, darunter eine Emission von 900 Millionen US-Dollar besicherter Senior Notes mit 9,625 % Zinsen sowie eine Emission von 775 Millionen US-Dollar besicherter Senior Notes mit 7,25 % Zinsen. Gray kündigte außerdem strategische Übernahmen und Veräußerungen mit Scripps, Sagamore Hill Broadcasting und Block Communications an, die voraussichtlich im vierten Quartal 2025 abgeschlossen werden.
Für das dritte Quartal 2025 erwartet Gray einen Rückgang der Kernwerbeeinnahmen im Vergleich zum dritten Quartal 2024, das 20 Millionen US-Dollar an Werbeeinnahmen der Olympischen Spiele enthielt.
- Reduced principal amount of outstanding debt by $22 million in Q2
- Increased Revolving Credit Facility availability to $750 million
- Strategic acquisitions and divestitures expected to reduce Leverage Ratio
- Maintains strong market position with top-rated stations in 78 markets
- No material income tax payments expected for remainder of 2025
- Total revenue decreased 7% year-over-year to $772 million
- Net loss of $69 million compared to $9 million profit in Q2 2024
- Core advertising revenue declined 3% to $361 million
- Recognized $28 million non-cash impairment due to CBS network non-renewal
- Political advertising revenue dropped 81% to $9 million
- Adjusted EBITDA decreased 25% to $169 million
Insights
Gray Media reports Q2 revenue decline of 7% YoY amid political ad cycle downturn, with strategic debt restructuring and station acquisitions to strengthen future positioning.
Gray Media's Q2 2025 financial results reflect the expected cyclical downturn in political advertising revenue during an off-year of the two-year political cycle. Total revenue decreased
Core advertising revenue showed modest pressure, declining
Despite these challenges, Gray has been proactive with its balance sheet management. The company reduced outstanding debt principal by
Gray has announced several strategic station acquisitions and divestitures that management believes will contribute to reducing its leverage ratio, which stood at 5.60× as of June 30, 2025. These transactions include station swaps with Scripps across five markets, acquisitions from Sagamore Hill Broadcasting, and an
Looking ahead, management is guiding for continued revenue pressure in Q3 2025, with core advertising projected to decline year-over-year, partly due to tough comparisons against the 2024 Olympic Games which generated
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 of7% from the second quarter of 2024. - Core advertising revenue in the second quarter of 2025 was
$361 million , a decrease of3% , consistent with our updated guidance for the quarter. - Retransmission consent revenue in the second quarter of 2025 was
$369 million , a decrease of1% 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 of81% 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 of9.625% 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 outstanding7.0% 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 of7.25% 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
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
On August 1, 2025, we announced that we reached an agreement with BCI to acquire its television stations for
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.
| Guidance |
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
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 | $ | 355 | |||
| Political advertising | 173 | 6 | 7 | ||||||
| Retransmission consent | 369 | 343 | 345 | ||||||
| Production companies | 26 | 26 | 27 | ||||||
| Other | 17 | 15 | 16 | ||||||
| Total revenue | $ | 950 | $ | 735 | $ | 750 | |||
| Operating expenses (excluding depreciation, amortization and loss on disposal of assets): | |||||||||
| Broadcasting: | |||||||||
| Station expenses | $ | 336 | $ | 342 | $ | 345 | |||
| Network affiliation fees | 234 | 213 | 215 | ||||||
| Non-cash stock-based compensation | 1 | - | - | ||||||
| Total broadcasting expense | $ | 571 | $ | 555 | $ | 560 | |||
| Production companies | $ | 22 | $ | 24 | $ | 25 | |||
| Corporate and administrative: | |||||||||
| Corporate expenses | $ | 20 | $ | 25 | $ | 30 | |||
| Non-cash stock-based compensation | 4 | 5 | 5 | ||||||
| Total corporate and administrative expense | $ | 24 | $ | 30 | $ | 35 | |||
| Year Ending | |||||||||
| December 31, 2025 | |||||||||
| (Guidance) | |||||||||
| Supplemental full-year information: | (in millions) | ||||||||
| Interest expense | |||||||||
| Amortization of deferred financing costs | |||||||||
| Preferred stock dividends | |||||||||
| Common stock dividends | |||||||||
| Total capital expenditures, excluding Assembly Atlanta | |||||||||
| Capital expenditures for Assembly Atlanta, net of anticipated reimbursements | |||||||||
| Income tax payments, net of refunds | |||||||||
| 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 | $ | 4 | |||
| Adjustments to reconcile from net (loss) income to Adjusted EBITDA | ||||||||||
| Depreciation | 32 | 36 | 35 | |||||||
| Amortization of intangible assets | 28 | 32 | 50 | |||||||
| Impairment of intangible assets | 28 | - | - | |||||||
| Non-cash stock-based compensation | 5 | 6 | 7 | |||||||
| (Gain) loss on disposal of assets, net | (6 | ) | (1 | ) | 16 | |||||
| Miscellaneous (income) expense, net | - | (2 | ) | 1 | ||||||
| Interest expense | 117 | 118 | 109 | |||||||
| Loss from early extinguishment of debt | - | 7 | - | |||||||
| Income tax expense | 21 | 7 | 5 | |||||||
| Adjusted EBITDA | $ | 169 | $ | 225 | $ | 227 | ||||
| Supplemental Information: | ||||||||||
| Amortization of deferred loan costs | 4 | 4 | 3 | |||||||
| Preferred stock dividends | 13 | 13 | 13 | |||||||
| Common stock dividends | 8 | 8 | 7 | |||||||
| Purchases of property and equipment (1) | 14 | 22 | 26 | |||||||
| Reimbursements of property and equipment purchases (2) | - | - | - | |||||||
| Income taxes paid, net of refunds | 39 | 83 | 24 | |||||||
| (1) Excludes | ||||||||||
| (2) Excludes | ||||||||||
| 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 | |||||||||||
| (4) Excludes | |||||||||||
| 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. | ||||
FAQ
What were Gray Media's (GTN) key financial results for Q2 2025?
How much debt did Gray Media (GTN) refinance in July 2025?
What acquisitions did Gray Media (GTN) announce in Q2 2025?
What is Gray Media's (GTN) Q3 2025 revenue guidance?
What caused Gray Media's (GTN) impairment charge in Q2 2025?
