Gray Media Reports Fourth Quarter Results Exceeding Guidance
Rhea-AI Summary
Gray Media (NYSE: GTN) reported fourth-quarter 2025 results with total revenue of $792 million and Adjusted EBITDA of $179 million, both beating prior guidance but down versus 2024. Broadcasting expenses fell and debt refinancings extended maturities beyond 2028, improving near-term liquidity.
Management closed the WBBJ-TV acquisition for $25 million, received $28 million in CID reimbursement, and provided March 2026 and full-year 2026 guidance including $140 million capital expenditures and $440 million estimated interest expense.
Positive
- Net Retransmission Revenue +3% in Q4 2025
- Total broadcasting expense down 7% in Q4 2025
- Full-year broadcasting expenses down 3% in 2025
- Debt refinancing extended majority of maturities beyond 2028
- WBBJ-TV acquisition completed for $25 million in Feb 2026
Negative
- Total revenue down 24% in Q4 2025 versus Q4 2024
- Adjusted EBITDA down 55% in Q4 2025 versus Q4 2024
- Political advertising revenue down 95% in Q4 2025
- Leverage Ratio remains high at 5.80 to 1 as of Dec 31, 2025
News Market Reaction – GTN
On the day this news was published, GTN gained 23.79%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.5% during that session. Our momentum scanner triggered 63 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $117M to the company's valuation, bringing the market cap to $609M at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GTN was up 1.28% pre-release while peers were mixed: SBGI down 0.5%, IHRT up 0.32%, FUBO up 0.43%, SSP up 2.41%. Momentum data show FUBO up and NXST down, supporting a stock-specific read for GTN.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 07 | Q3 2025 earnings | Positive | +4.8% | Q3 revenue and Adjusted EBITDA beat guidance plus major refinancing deals. |
| Aug 08 | Q2 2025 earnings | Negative | -0.2% | Revenue and core advertising declines with a swing to net loss year-over-year. |
| Jul 08 | Q2 2025 guidance cut | Negative | +10.4% | Lowered guidance and impairment charge tied to loss of CBS affiliation. |
| May 08 | Q1 2025 earnings | Negative | +16.9% | Revenue decline and net loss despite debt reduction and facility expansion. |
| Feb 27 | Q4 2024 earnings | Positive | +0.5% | Q4 revenue beat, strong political ad spend, and significant debt reduction. |
Earnings and guidance updates have often driven sizable reactions, with some instances of shares rising even when headline metrics were under pressure.
Over the last year, Gray Media’s earnings releases have combined revenue pressure with active balance sheet management. Prior updates highlighted refinancing moves, new note issuances, leverage ratios, and guidance changes tied to political and Olympic cycles. Some quarters showed net losses and lower core advertising, yet the stock sometimes moved higher, indicating investors focused on debt reduction, refinancing progress, and strategic transactions rather than headline declines alone. Today’s results exceeding guidance fit into this pattern of execution against expectations.
Historical Comparison
Recent earnings and guidance updates for GTN have produced an average move of 6.47%, with investors often weighing leverage and refinancing progress alongside revenue trends.
Across the last several earnings cycles, Gray Media has reported softer year-over-year revenues while actively refinancing debt, extending maturities, and managing leverage ratios, framing each quarter within a broader balance sheet optimization strategy.
Market Pulse Summary
The stock surged +23.8% in the session following this news. A strong positive reaction aligns with the company’s pattern of investors rewarding beats versus guidance and visible refinancing progress. Q4 2025 revenue of $792 million topped guidance, while broadcasting expenses fell and liquidity stood at $368 million. However, total debt of $5,810 million and leverage ratios above 5x left balance sheet risk that could limit how long any sharp upside move might persist.
Key Terms
adjusted ebitda financial
mvpd technical
net retransmission revenue financial
retransmission consent revenue financial
senior secured second lien notes financial
first lien leverage ratio financial
secured leverage ratio financial
revolving credit facility financial
AI-generated analysis. Not financial advice.
ATLANTA, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Gray Media (NYSE: 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
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 of3% 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 increased3% 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, or7% , compared to fourth quarter of 2024. In addition, for full year 2025, broadcasting expenses decreased$78 million , or3% , 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, | ||||||||||||||||||
| 2025 | 2024 | % Change 2025 to 2024 | 2025 | 2024 | % Change 2025 to 2024 | ||||||||||||||
| (dollars in millions) | |||||||||||||||||||
| Revenue (less agency commissions): | |||||||||||||||||||
| Core advertising | $ | 392 | $ | 380 | $ | 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 | 107 | 105 | |||||||||||||||
| 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 | $ | 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 | $ | 95 | $ | 83 | |||||||||||
| Corporate and administrative | |||||||||||||||||||
| Corporate expenses | $ | 21 | $ | 20 | $ | 86 | $ | 87 | (1)% | ||||||||||
| Transaction Related Expenses | 2 | - | 6 | - | |||||||||||||||
| Non-cash stock-based | |||||||||||||||||||
| compensation | 5 | 4 | 21 | 17 | |||||||||||||||
| Total corporate and | |||||||||||||||||||
| administrative expense | $ | 28 | $ | 24 | $ | 113 | $ | 104 | |||||||||||
| 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
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 |
LIQUIDITY - As of December 31, 2025:
- Unrestricted cash -
$368 million - Borrowing availability under our
$750 million undrawn Revolving Credit Facility -$745 million (reflecting only certain outstanding undrawn letters of credit) - Accounts receivable securitization facility of
$400 million was fully drawn
OTHER NOTEWORTHY EVENTS
WBBJ-TV Acquisition - On December 16, 2025, we announced that we reached an agreement with Bahakel Communications, Limited, to purchase the assets of television station WBBJ-TV (ABC/CBS) in the Jackson, Tennessee television market (DMA 175). On January 1, 2026, we acquired all of the non-license assets of the station and commenced operating the station pursuant to a standard pre-closing agreement, and, on February 13, 2026, we acquired the license assets of the station, which completed our acquisition, for total consideration of
GUIDANCE FOR THE QUARTER ENDED MARCH 31, 2026
Based on our current forecasts for the quarter ending March 31, 2026, we anticipate the following key financial results, as outlined below in approximate ranges and as compared to the quarter ended March 31, 2025, as well as certain currently anticipated full-year financial results. Our guidance includes estimated results for television station WBBJ-TV, while it does not include estimates for any of the announced and not yet completed transactions.
We earned
Our first quarter 2026 will benefit from the broadcasts of the recently concluded Winter Olympics across our NBC affiliated channels. We currently estimate the 2026 Winter Olympic broadcasts will generate approximately
As always, guidance may change in the future based on several factors and therefore may not reflect future actual results.
| Quarter Ending | ||||||||
| Quarter Ended | March 31, 2026 | |||||||
| March 31, 2025 | (Guidance) | |||||||
| (Unaudited) | Low | High | ||||||
| (in millions) | ||||||||
| Revenue (less agency commissions): | ||||||||
| Core advertising | $ | 344 | Approximately Flat | |||||
| Political advertising | $ | 13 | $ | 25 | $ | 30 | ||
| Total revenue | $ | 782 | $ | 755 | $ | 770 | ||
| Net Retransmission Revenue | $ | 146 | $ | 148 | $ | 150 | ||
| Operating expenses (excluding depreciation, | ||||||||
| amortization and (gain) loss on disposal of assets): | ||||||||
| Total broadcasting expense | $ | 577 | $ | 555 | $ | 560 | ||
| Total corporate and administrative expense | $ | 32 | $ | 30 | $ | 35 | ||
| Year Ending | ||||||||
| December 31, | ||||||||
| 2026 | ||||||||
| Estimated supplemental information (in millions): | (Guidance) | |||||||
| Interest expense, excluding amortization of deferred financing costs | $ | 440 | ||||||
| Amortization of deferred financing costs | $ | 16 | ||||||
| Preferred stock dividends | $ | 52 | ||||||
| Common stock dividends | $ | 32 | ||||||
| Capital expenditures | $ | 140 | ||||||
| Income tax payments, excluding refunds | ||||||||
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 114 full-power television markets that collectively reach approximately
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: the inability to achieve estimates of future revenue, expenses, capital expenditures, and income tax payments, the inability to complete the pending acquisitions within the expected timeframes, or at all, including as a result of the failure to obtain necessary FCC or other regulatory approvals, 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, 2025, 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 and webcast to discuss our operating results for the quarter ended December 31, 2025, on February 26, 2026. The call will begin at 11:00 a.m. Eastern Time. The live dial-in number is +1 800-715-9871 or +1 646-307-1963 conference ID 3663076. The call will be live and available for replay at www.graymedia.com. A replay of the conference call will also be available at +1 800-770-2030, using passcode: 3663076 until March 26, 2026.
Gray Contacts:
Web site: www.graymedia.com
Alan Gould, Vice President, Investor Relations, (404) 266-8333, alan.gould@graymedia.com
| GRAY MEDIA, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions, except for share data) | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Assets: | |||||||
| Current assets: | |||||||
| Cash | $ | 368 | $ | 135 | |||
| Accounts receivable, net | 205 | 337 | |||||
| Current portion of program broadcast rights, net | 17 | 17 | |||||
| Income tax refunds receivable | 6 | 6 | |||||
| Prepaid income taxes | 35 | 25 | |||||
| Prepaid and other current assets | 25 | 21 | |||||
| Total current assets | 656 | 541 | |||||
| Property and equipment, net | 1,509 | 1,577 | |||||
| Operating lease right of use asset | 66 | 69 | |||||
| Broadcast licenses | 5,309 | 5,311 | |||||
| Goodwill | 2,642 | 2,642 | |||||
| Other intangible assets, net | 157 | 290 | |||||
| Investments in broadcasting and technology companies | 37 | 66 | |||||
| Deferred pension assets | 21 | 19 | |||||
| Other | 43 | 27 | |||||
| Total assets | $ | 10,440 | $ | 10,542 | |||
| Liabilities and stockholders’ equity: | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 144 | $ | 154 | |||
| Employee compensation and benefits | 103 | 111 | |||||
| Accrued interest | 151 | 112 | |||||
| Other accrued expenses | 47 | 53 | |||||
| Federal and state income taxes | 5 | 5 | |||||
| Current portion of program broadcast obligations | 18 | 18 | |||||
| Deferred revenue | 20 | 29 | |||||
| Dividends payable | 16 | 15 | |||||
| Current portion of operating lease liabilities | 10 | 10 | |||||
| Current portion of long-term debt | 2 | 20 | |||||
| Total current liabilities | 516 | 527 | |||||
| Long-term debt, less current portion and less deferred financing costs | 5,742 | 5,601 | |||||
| Deferred income taxes | 1,300 | 1,347 | |||||
| Operating lease liabilities, less current portion | 59 | 62 | |||||
| Other | 18 | 72 | |||||
| Total liabilities | 7,635 | 7,609 | |||||
| Series A Perpetual Preferred Stock, no par value; cumulative; redeemable; | |||||||
| designated 1,500,000 shares, issued and outstanding 650,000 shares at | |||||||
| each date and | 650 | 650 | |||||
| Stockholders’ equity: | |||||||
| Common stock, no par value; authorized 200,000,000 shares, | |||||||
| issued 113,779,383 shares and 111,166,022 shares, outstanding 92,444,984 | |||||||
| shares and 90,768,247 shares, respectively | 1,210 | 1,198 | |||||
| Class A common stock, no par value; authorized 25,000,000 shares, | |||||||
| issued 12,198,808 shares and 11,237,386 shares, outstanding 9,557,830 shares | |||||||
| and 8,814,187 shares, respectively | 67 | 57 | |||||
| Retained earnings | 1,205 | 1,375 | |||||
| Accumulated other comprehensive loss | (4 | ) | (30 | ) | |||
| 2,478 | 2,600 | ||||||
| Treasury stock at cost, common stock, 21,334,399 shares and | |||||||
| 20,397,775 shares, respectively | (288 | ) | (284 | ) | |||
| Treasury stock at cost, Class A common stock, 2,640,978 shares and | |||||||
| 2,423,199 shares, respectively | (35 | ) | (33 | ) | |||
| Total stockholders’ equity | 2,155 | 2,283 | |||||
| Total liabilities and stockholders’ equity | $ | 10,440 | $ | 10,542 | |||
| GRAY MEDIA, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in millions, except for net income per share data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue (less agency commissions): | |||||||||||||||
| Broadcasting | $ | 755 | $ | 1,008 | $ | 2,988 | $ | 3,539 | |||||||
| Production companies | 37 | 37 | 107 | 105 | |||||||||||
| Total revenue (less agency commissions) | 792 | 1,045 | 3,095 | 3,644 | |||||||||||
| Operating expenses before depreciation, amortization, | |||||||||||||||
| impairment and (gain) loss on disposal of assets, net: | |||||||||||||||
| Broadcasting | 557 | 598 | 2,239 | 2,317 | |||||||||||
| Production companies | 33 | 26 | 95 | 83 | |||||||||||
| Corporate and administrative | 28 | 24 | 113 | 104 | |||||||||||
| Depreciation | 34 | 36 | 133 | 144 | |||||||||||
| Amortization of intangible assets | 24 | 31 | 104 | 125 | |||||||||||
| Impairment of goodwill and other intangible assets | 2 | - | 30 | - | |||||||||||
| (Gain) loss on disposal of assets, net | (2 | ) | 5 | (11 | ) | 20 | |||||||||
| Operating expenses | 676 | 720 | 2,703 | 2,793 | |||||||||||
| Operating income | 116 | 325 | 392 | 851 | |||||||||||
| Other (expense) income : | |||||||||||||||
| Miscellaneous income (expense), net | 1 | 3 | (1 | ) | 117 | ||||||||||
| Impairment of investments | (20 | ) | (25 | ) | (20 | ) | (25 | ) | |||||||
| Interest expense | (119 | ) | (122 | ) | (474 | ) | (485 | ) | |||||||
| (Loss) gain on early extinguishment of debt | (4 | ) | 35 | (10 | ) | 34 | |||||||||
| (Loss) income before income tax | (26 | ) | 216 | (113 | ) | 492 | |||||||||
| Income tax (benefit) expense | (16 | ) | 47 | (28 | ) | 117 | |||||||||
| Net (loss) income | (10 | ) | 169 | (85 | ) | 375 | |||||||||
| Preferred stock dividends | 13 | 13 | 52 | 52 | |||||||||||
| Net (loss) income attributable to common stockholders | $ | (23 | ) | $ | 156 | $ | (137 | ) | $ | 323 | |||||
| Basic per share information: | |||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (0.24 | ) | $ | 1.64 | $ | (1.41 | ) | $ | 3.40 | |||||
| Weighted-average shares outstanding | 97 | 95 | 97 | 95 | |||||||||||
| Diluted per share information: | |||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (0.24 | ) | $ | 1.59 | $ | (1.41 | ) | $ | 3.36 | |||||
| Weighted-average shares outstanding | 97 | 98 | 97 | 96 | |||||||||||
| GRAY MEDIA, INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in millions) | |||||||
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (85 | ) | $ | 375 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation | 133 | 144 | |||||
| Amortization of intangible assets | 104 | 125 | |||||
| Amortization of deferred loan costs | 16 | 15 | |||||
| Stock-based compensation | 22 | 22 | |||||
| Amortization of program broadcast rights | 27 | 28 | |||||
| Payments on program broadcast obligations | (27 | ) | (29 | ) | |||
| Deferred income taxes | (56 | ) | (9 | ) | |||
| (Gain) loss on disposal of property and equipment, net | (6 | ) | 20 | ||||
| Gain on sale of investments | (5 | ) | (110 | ) | |||
| Loss (gain) on early extinguishment of debt | 10 | (34 | ) | ||||
| Impairment of investments | 20 | 25 | |||||
| Impairment of goodwill and other intangible assets | 30 | - | |||||
| Other | 15 | (1 | ) | ||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable, net | 132 | 5 | |||||
| Income tax receivable or prepaid | (10 | ) | 8 | ||||
| Other current assets | (6 | ) | 27 | ||||
| Accounts payable | (10 | ) | 52 | ||||
| Employee compensation, benefits and pension costs | (7 | ) | 1 | ||||
| Accrued other expenses | (38 | ) | 49 | ||||
| Accrued interest | 39 | 49 | |||||
| Income taxes payable | - | (17 | ) | ||||
| Deferred revenue | (9 | ) | 6 | ||||
| Net cash provided by operating activities | 289 | 751 | |||||
| Cash flows from investing activities: | |||||||
| Acquisitions of businesses and broadcast licenses, net of cash acquired | - | (1 | ) | ||||
| Purchases of property and equipment | (108 | ) | (143 | ) | |||
| Proceeds from asset sales | 47 | 14 | |||||
| Proceeds from sale of investments | 24 | 110 | |||||
| Investments in broadcast, production and technology companies | (8 | ) | (7 | ) | |||
| Other | (18 | ) | (1 | ) | |||
| Net cash used in investing activities | (63 | ) | (28 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings on long-term debt | 2,110 | 2,070 | |||||
| Repayments of borrowings on long-term debt | (1,987 | ) | (2,544 | ) | |||
| Payments of common stock dividends | (33 | ) | (32 | ) | |||
| Payments of preferred stock dividends | (52 | ) | (52 | ) | |||
| Deferred and other loan costs | (26 | ) | (47 | ) | |||
| Payments for taxes related to net share settlement of equity awards | (5 | ) | (4 | ) | |||
| Net cash provided by (used in) financing activities | 7 | (609 | ) | ||||
| Net increase (decrease) in cash | 233 | 114 | |||||
| Cash at beginning of year | 135 | 21 | |||||
| Cash at end of year | $ | 368 | $ | 135 | |||
Non-GAAP Terms
This earnings release includes certain non-GAAP financial measures, including “Adjusted EBITDA” and “Net Retransmission Revenue.” We present these measures, in addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), because management believes they are useful in evaluating the performance of the business. Adjusted EBITDA is calculated as net income (loss), adjusted for income tax expense (benefit), interest expense, gain or 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. Net Retransmission Revenue is calculated as retransmission consent revenue less broadcasting network affiliation fees. We consider Adjusted EBITDA and Net Retransmission Revenue to be indicators 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 certain 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 certain 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 may be useful to investors to understand how we assess compliance with our Senior Credit Agreement. 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 January 1, 2024. 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 completeness or 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, and should not be relied upon as indicative of future results. Leverage Ratio Denominator, as determined in the Senior Credit Agreement, represents an average amount for the preceding eight quarters then ended.
Specified Transaction Costs and Expenses are defined in our Senior Credit Agreement and include 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 “First Lien Adjusted Total Indebtedness”, “Secured Adjusted Total Indebtedness” and “Adjusted Total Indebtedness” in each case presented 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 measures are not defined by 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 measures 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 | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Net (loss) income | $ | (10 | ) | $ | 169 | ||
| Adjustments to reconcile from net (loss) income to Adjusted EBITDA: | |||||||
| Depreciation | 34 | 36 | |||||
| Amortization of intangible assets | 24 | 31 | |||||
| Impairment of goodwill and other intangible assets | 2 | - | |||||
| Non-cash stock-based compensation | 5 | 5 | |||||
| (Gain) loss on disposal of assets, net | (2 | ) | 5 | ||||
| Miscellaneous income, net | (1 | ) | (3 | ) | |||
| Impairment of investments | 20 | 25 | |||||
| Interest expense | 119 | 122 | |||||
| Loss (gain) from early extinguishment of debt | 4 | (35 | ) | ||||
| Income tax (benefit) expense | (16 | ) | 47 | ||||
| Adjusted EBITDA | $ | 179 | $ | 402 | |||
| Supplemental Information: | |||||||
| Pension expense (benefit) | $ | 1 | $ | (3 | ) | ||
| Amortization of deferred loan costs | 4 | 4 | |||||
| Preferred stock dividends | 13 | 13 | |||||
| Common stock dividends | 9 | 8 | |||||
| Purchases of property and equipment (1) | 31 | 33 | |||||
| Income taxes (refunded) paid, net | (1 | ) | 5 | ||||
| (1) Excludes | |||||||
| Year Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Net (loss) income | $ | (85 | ) | $ | 375 | ||
| Adjustments to reconcile from net (loss) income to Adjusted EBITDA: | |||||||
| Depreciation | 133 | 144 | |||||
| Amortization of intangible assets | 104 | 125 | |||||
| Impairment of goodwill and other intangible assets | 30 | - | |||||
| Non-cash stock-based compensation | 22 | 22 | |||||
| (Gain) loss on disposal of assets, net | (11 | ) | 20 | ||||
| Miscellaneous expense (income), net | 1 | (117 | ) | ||||
| Impairment of investments | 20 | 25 | |||||
| Interest expense | 474 | 485 | |||||
| Loss (gain) on early extinguishment of debt | 10 | (34 | ) | ||||
| Income tax (benefit) expense | (28 | ) | 117 | ||||
| Adjusted EBITDA | $ | 670 | $ | 1,162 | |||
| Supplemental Information: | |||||||
| Pension expense (benefit) | $ | 4 | $ | (3 | ) | ||
| Amortization of deferred loan costs | 16 | 15 | |||||
| Preferred stock dividends | 52 | 52 | |||||
| Common stock dividends | 33 | 32 | |||||
| Purchases of property and equipment (2) | 74 | 97 | |||||
| Income taxes paid, net | 38 | 135 | |||||
| (2) Excludes | |||||||
| Calculation of First Lien Leverage Ratio, Secured Leverage Ratio and Leverage Ratio as each is defined in our Senior Credit Agreement (Unaudited): | |||
| Eight Quarters Ended | |||
| December 31, 2025 | |||
| (in millions) | |||
| Net income | $ | 290 | |
| Adjustments to reconcile from net income to Leverage Ratio | |||
| Denominator as defined in our Senior Credit Agreement: | |||
| Depreciation | 277 | ||
| Amortization of intangible assets | 229 | ||
| Non-cash stock-based compensation | 44 | ||
| Loss on disposal of assets, net | 14 | ||
| Gain on disposal of investments, not in the ordinary course | (115 | ) | |
| Interest expense | 959 | ||
| Gain on early extinguishment of debt | (24 | ) | |
| Income tax expense | 89 | ||
| Impairment of goodwill, other intangible assets and investments | 75 | ||
| Amortization of program broadcast rights | 55 | ||
| Payments for program broadcast rights | (56 | ) | |
| Pension expense | 1 | ||
| Adjustments for unrestricted subsidiaries | 34 | ||
| Specified Transaction Costs and Expenses | 6 | ||
| Other | 1 | ||
| Total eight quarters ended December 31, 2025 | $ | 1,879 | |
| Leverage Ratio Denominator (total eight quarters ended | |||
| December 31, 2025, divided by 2) | $ | 939 | |
| December 31, 2025 | |||
| (dollars in millions) | |||
| Total outstanding principal secured by a first lien | $ | 2,649 | |
| Less cash | (368 | ) | |
| First Lien Adjusted Total Indebtedness | $ | 2,281 | |
| First Lien Leverage Ratio (maximum permitted incurrence is 3.50 to 1.00) (1) | 2.43 | ||
| Total outstanding principal secured by a lien | $ | 3,799 | |
| Less cash | (368 | ) | |
| Secured Adjusted Total Indebtedness | $ | 3,431 | |
| Secured Leverage Ratio (maximum permitted incurrence is 5.50 to 1.00) (2) | 3.65 | ||
| Total outstanding principal, including current portion | $ | 5,810 | |
| Letters of credit outstanding | 5 | ||
| Less cash | (368 | ) | |
| Adjusted Total Indebtedness | $ | 5,447 | |
| Leverage Ratio (maximum permitted incurrence is 7.00 to 1.00) | 5.80 | ||
| (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. | |||
| (2) For our Senior Secured Second Lien Notes due 2032 Notes, the maximum permitted second lien incurrence is 4.50 to 1.00 | |||
FAQ
What were Gray Media (GTN) fourth-quarter 2025 revenue and EBITDA figures?
How did Gray Media (GTN) adjust its debt profile in 2025 and what changes occurred?
What impact will the WBBJ-TV acquisition have on Gray Media (GTN) leverage?
How did broadcasting expenses change for Gray Media (GTN) in 2025?
What guidance did Gray Media (GTN) give for Q1 2026 and full-year 2026 key items?
Why did Gray Media (GTN) report lower political advertising revenue in Q4 2025?
