Lee Enterprises Reports Strong Second Quarter Results
Rhea-AI Summary
Lee Enterprises (NASDAQ: LEE) reported preliminary Q2 fiscal 2026 results for the period ended March 29, 2026. Adjusted EBITDA was $15 million, up 95% year-over-year; total operating revenue was $122 million and digital revenue was $68 million (56% of total). The company finished the quarter with $53 million cash, $455 million debt, and a reduced fixed interest rate of 5%. Lee reaffirmed FY26 Adjusted EBITDA growth guidance in mid-single digits.
Positive
- Adjusted EBITDA +95% year-over-year to $15 million
- Digital revenue 56% of total operating revenue
- Cash balance increased to $53 million
- Interest rate cut to 5%, expected ~$18M annual interest savings
Negative
- Net loss of $2 million in Q2 (improved from prior year)
- Total debt remains $455 million net of no fixed principal payments
- Total operating revenue declined to $122 million year-over-year
Key Figures
Market Reality Check
Peers on Argus
LEE was nearly flat at -0.24% with elevated volume, while peers were mixed: TNMG +12.63%, EDUC +1.39%, SCHL +0.94%, DALN +0.06%, and GCI -1.09%. Momentum scanners only flagged SNAL at -3.78%, reinforcing that LEE’s action appears company-specific to its Q2 report rather than a broad publishing-sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 24 | Leadership appointments | Positive | +2.5% | Permanent CEO and CFO appointments following February strategic investment. |
| Apr 23 | Earnings call notice | Neutral | -4.2% | Announcement of date and access details for Q2 earnings call. |
| Feb 10 | Q1 results & investment | Positive | +6.5% | Strong Q1 Adjusted EBITDA and details of $50M strategic investment. |
| Feb 09 | Content partnership | Positive | -0.6% | Nationwide Hudl partnership to expand free high school sports coverage. |
| Feb 05 | Strategic equity deal | Positive | -4.5% | Closure of $50M private placement and interest rate cut on long-term debt. |
Recent fundamentally oriented news (earnings, strategic investment, leadership changes) has produced mixed but often positive price reactions, with some strategic announcements selling off despite constructive fundamentals.
Over the last six months, Lee has focused on strategic investment, balance sheet repair, and digital transition. A February private placement and debt repricing cut interest costs on about $455.5M of debt and were followed by strong Q1 results and rising Adjusted EBITDA. Governance shifted with David Hoffmann’s investment and new executive appointments in April. Today’s Q2 release extends the trend of improving profitability, digital mix, and capital structure efficiency established in earlier 2026 updates.
Regulatory & Risk Context
An effective S-3 filed on 2026-03-06 registers 15,384,615 shares of common stock for resale by selling stockholders from a prior private placement. The company is not selling shares in this registration and will receive no proceeds from these resales.
Market Pulse Summary
This announcement highlights strong Q2 fundamentals, with Adjusted EBITDA rising to $15.1M (up 95% YoY) and digital revenue of $67.8M representing 56% of total revenue. Net loss narrowed to $2M, while cash increased to $53M against $455M of debt repriced to a fixed 5% rate. Investors may track future Adjusted EBITDA trends as insurance benefits taper, the impact of up to $8M in FY26 capex, and resale activity under the 15.38M-share S-3 registration.
Key Terms
adjusted ebitda financial
cash costs financial
non-gaap financial measures financial
private placement financial
same-store revenues financial
AI-generated analysis. Not financial advice.
Digital revenue(2) represents
Improved capital structure;
Reaffirms guidance of YOY Adjusted EBITDA growth in FY26
DAVENPORT, Iowa, May 07, 2026 (GLOBE NEWSWIRE) -- Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 114 markets, today reported preliminary second quarter fiscal 2026 financial results(4) for the period ended March 29, 2026.
"Our second quarter results reflect continued momentum in the business and disciplined execution across our operations," said Nathan Bekke, Lee’s President and Chief Executive Officer. "Adjusted EBITDA increased
“In the quarter, we continued to take proactive steps to align our cost structure with the ongoing shift in our revenue mix,” added Bekke. “These actions include further optimization of our operating footprint, streamlining of workflows, reduction in corporate overhead and continued prioritization of investments that support digital growth. As a result, we are realizing meaningful efficiencies while maintaining our focus on delivering high-quality local journalism and content. We expect these efforts to continue supporting margin improvement and enhancing the scalability of our business over time.”
"We are also beginning to realize benefits from the strategic investment completed in February," said Bekke. "The amendment to our credit agreement reduced our interest rate mid-quarter, which will drive meaningful interest expense savings going forward. We expect these savings to total approximately
"Net loss for the quarter totaled
“Our progress continues to reflect the strength of our strategy and advances we are making in our digital transformation," Bekke added. "We remain focused on expanding recurring digital revenue while maintaining disciplined cost management to support margin improvement. We are highly encouraged by our performance through the first half of the fiscal year and remain confident in our strategy and our ability to deliver continued growth in the quarters ahead."
For the second quarter ended March 29, 2026:
- Total operating revenue was
$122 million . - Total Digital Revenue was
$68 million and represented56% of our total operating revenue. - Revenue from digital-only subscribers totaled
$22 million . Digital-only subscription revenue increased17% annually over the past three years. Digital-only subscribers totaled 591,000 at the end of the quarter. - Digital advertising and marketing services revenue represented
74% of our total advertising revenue and totaled$41 million . Amplified Digital® Agency revenue totaled$23 million in the quarter. - Digital services revenue, which is predominantly from BLOX Digital, totaled
$5 million . - Total Print Revenue was
$54 million . - Operating expenses totaled
$114 million and Cash Costs(1) totaled$112 million , representing20% and15% decreases compared to the prior year, respectively. During the quarter, operating expenses were reduced by$4 million due to business interruption insurance recoveries(6), recorded in the Insurance proceeds line item and included in Adjusted EBITDA. Operating expenses were further reduced by$1 million from insurance recoveries related to expenses incurred in response to the prior year cyber incident, recorded in Restructuring costs and other. Excluding these business interruption insurance proceeds and expense reimbursements, operating expenses decreased17% compared to the prior year. - Net loss totaled
$2 million , an improvement of$10 million , or86% , over the prior year quarter. - Adjusted EBITDA totaled
$15 million , an increase of$7 million , or95% , over the prior year quarter.
2026 Fiscal Year Outlook:
| Adjusted EBITDA | YOY growth in the mid-single digits |
Debt and Free Cash Flow:
The Company has
As of and for the period ended March 29, 2026:
- The principal amount of debt totaled
$455 million . - Cash on the balance sheet totaled
$53 million . Debt, net of cash on the balance sheet, totaled$402 million . - Capital expenditures totaled
$1 million for the quarter. We expect up to$8 million of capital expenditures in FY26. - We expect cash paid for income taxes to total between
$2 million and$8 million in FY26. - We do not expect any pension contributions in the fiscal year.
- The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility.
Conference Call Information:
As previously announced, we will hold an earnings conference call and audio webcast today at 9 a.m. Central Time. The live webcast will be accessible at www.lee.net and will be available for replay 24 hours later. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please register at www.lee.net. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.
About Lee:
Lee Enterprises is a leading provider of local news and information and a major subscription and advertising platform, with daily and weekly newspapers and rapidly expanding digital products serving 114 markets across 25 states. Lee's markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net.
FORWARD-LOOKING STATEMENTS — The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are:
- Our ability to manage declining print revenue and circulation subscribers;
- The impact and duration of adverse conditions in certain aspects of the economy affecting our business;
- Changes in advertising and subscription demand;
- Changes in technology that impact our ability to deliver digital advertising;
- Potential changes in newsprint, other commodities and energy costs;
- Interest rates;
- Labor costs;
- Significant cyber security breaches or failure of our information technology systems;
- Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions;
- Our ability to maintain employee and customer relationships;
- Our ability to manage increased capital costs;
- Our ability to maintain our listing status on NASDAQ;
- Competition;
- We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise;
- The impacts of changes to our leadership and corporate governance; and
- Other risks detailed from time to time in our publicly filed documents.
Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements. Statements regarding our plans, strategies, prospects and expectations regarding our business and industry and our responses thereto may have on our future operations, are forward-looking statements. They reflect our expectations, are not guarantees of performance and speak only as of the date the statement is made. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law.
Contact:
IR@lee.net
(563) 383-2100
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| Three months ended | Six months ended | |||||||
| (Thousands of Dollars, Except Per Common Share Data) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||
| Operating revenue: | ||||||||
| Print advertising revenue | 14,274 | 16,532 | 31,465 | 36,393 | ||||
| Digital advertising revenue | 40,693 | 43,941 | 83,488 | 90,670 | ||||
| Advertising and marketing services revenue | 54,967 | 60,473 | 114,953 | 127,063 | ||||
| Print subscription revenue | 32,902 | 41,079 | 67,898 | 84,511 | ||||
| Digital subscription revenue | 22,279 | 23,789 | 44,985 | 45,354 | ||||
| Subscription revenue | 55,181 | 64,868 | 112,883 | 129,865 | ||||
| Print other revenue | 7,032 | 7,213 | 14,578 | 15,101 | ||||
| Digital other revenue | 4,784 | 4,826 | 9,612 | 9,913 | ||||
| Other revenue | 11,816 | 12,039 | 24,190 | 25,014 | ||||
| Total operating revenue | 121,964 | 137,380 | 252,026 | 281,942 | ||||
| Operating expenses: | ||||||||
| Compensation | 46,745 | 56,659 | 96,178 | 116,913 | ||||
| Newsprint and ink | 2,520 | 3,111 | 5,483 | 6,727 | ||||
| Other operating expenses | 62,750 | 71,455 | 131,564 | 146,135 | ||||
| Insurance proceeds | (3,840 | ) | — | (5,840 | ) | — | ||
| Depreciation and amortization | 3,515 | 5,171 | 7,094 | 11,436 | ||||
| (Gain) loss on asset sales, impairments and other, net | (900 | ) | 126 | (903 | ) | (803 | ) | |
| Restructuring costs and other | 3,640 | 6,516 | 6,788 | 11,666 | ||||
| Total operating expenses | 114,430 | 143,038 | 240,364 | 292,074 | ||||
| Equity in earnings of associated companies | 1,008 | 1,155 | 2,088 | 2,277 | ||||
| Operating income (loss) | 8,542 | (4,503 | ) | 13,750 | (7,855 | ) | ||
| Non-operating (expense) income: | ||||||||
| Interest expense | (7,629 | ) | (9,950 | ) | (17,877 | ) | (20,232 | ) |
| Pension and OPEB related benefit and other, net | 826 | 658 | 1,671 | 1,311 | ||||
| Curtailment/Settlement gains | — | — | — | — | ||||
| Total non-operating expense, net | (6,803 | ) | (9,292 | ) | (16,206 | ) | (18,921 | ) |
| Income (loss) before income taxes | 1,739 | (13,795 | ) | (2,456 | ) | (26,776 | ) | |
| Income tax expense (benefit) | 3,448 | (1,780 | ) | 4,379 | 1,463 | |||
| Net loss | (1,709 | ) | (12,015 | ) | (6,835 | ) | (28,239 | ) |
| Net loss attributable to non-controlling interests | (439 | ) | (496 | ) | (924 | ) | (1,020 | ) |
| Loss attributable to Lee Enterprises, Incorporated | (2,148 | ) | (12,511 | ) | (7,759 | ) | (29,259 | ) |
| Other comprehensive loss, net of income taxes | (79 | ) | (115 | ) | (158 | ) | (230 | ) |
| Comprehensive loss attributable to Lee Enterprises, Incorporated | (2,227 | ) | (12,626 | ) | (7,917 | ) | (29,489 | ) |
| Loss per common share: | ||||||||
| Basic: | (0.16 | ) | (2.07 | ) | (0.78 | ) | (4.87 | ) |
| Diluted: | (0.16 | ) | (2.07 | ) | (0.78 | ) | (4.87 | ) |
| DIGITAL / PRINT REVENUE COMPOSITION (UNAUDITED) | ||||
| Three months Ended | Six months ended | |||
| (Thousands of Dollars) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 |
| Digital Advertising and Marketing Services Revenue | 40,693 | 43,941 | 83,488 | 90,670 |
| Digital Only Subscription Revenue | 22,279 | 23,789 | 44,985 | 45,354 |
| Digital Services Revenue | 4,784 | 4,826 | 9,612 | 9,913 |
| Total Digital Revenue | 67,756 | 72,556 | 138,085 | 145,937 |
| Print Advertising Revenue | 14,274 | 16,532 | 31,465 | 36,393 |
| Print Subscription Revenue | 32,902 | 41,079 | 67,898 | 84,511 |
| Other Print Revenue | 7,032 | 7,213 | 14,578 | 15,101 |
| Total Print Revenue | 54,208 | 64,824 | 113,941 | 136,005 |
| Total Operating Revenue | 121,964 | 137,380 | 252,026 | 281,942 |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) The tables below reconcile the non-GAAP financial performance measure of Adjusted EBITDA to Net loss, its most directly comparable U.S. GAAP measure: | ||||||||
| Three months ended | Six months ended | |||||||
| (Thousands of Dollars) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||
| Net loss | (1,709 | ) | (12,015 | ) | (6,835 | ) | (28,239 | ) |
| Adjusted to exclude | ||||||||
| Income tax expense (benefit) | 3,448 | (1,780 | ) | 4,379 | 1,463 | |||
| Non-operating expenses, net | 6,803 | 9,292 | 16,206 | 18,921 | ||||
| Equity in earnings of TNI and MNI | (1,008 | ) | (1,155 | ) | (2,088 | ) | (2,277 | ) |
| Depreciation and amortization | 3,515 | 5,171 | 7,094 | 11,436 | ||||
| Restructuring costs and other | 3,640 | 6,516 | 6,788 | 11,666 | ||||
| (Gain) loss on asset sales, impairments and other, net | (900 | ) | 126 | (903 | ) | (803 | ) | |
| Stock compensation | 213 | 358 | 541 | 788 | ||||
| Add: | ||||||||
| Ownership share of TNI and MNI EBITDA ( | 1,123 | 1,255 | 2,224 | 2,422 | ||||
| Adjusted EBITDA | 15,125 | 7,768 | 27,406 | 15,377 | ||||
The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure:
| Three months ended | Six months ended | ||||||
| (Thousands of Dollars) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | |||
| Operating expenses | 114,430 | 143,038 | 240,364 | 292,074 | |||
| Adjustments | |||||||
| Depreciation and amortization | 3,515 | 5,171 | 7,094 | 11,436 | |||
| (Gain) loss on asset sales, impairments and other, net | (900 | ) | 126 | (903 | ) | (803 | ) |
| Restructuring costs and other | 3,640 | 6,516 | 6,788 | 11,666 | |||
| Insurance proceeds | (3,840 | ) | — | (5,840 | ) | — | |
| Cash Costs | 112,015 | 131,225 | 233,225 | 269,775 | |||
The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure:
| Three months ended | Six months ended | |||||||
| (Thousands of Dollars) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | ||||
| Print Advertising Revenue | 14,274 | 16,532 | 31,465 | 36,393 | ||||
| Exited operations | (568 | ) | (2,108 | ) | (2,400 | ) | (4,487 | ) |
| Same-store, Print Advertising Revenue | 13,706 | 14,424 | 29,065 | 31,906 | ||||
| Digital Advertising Revenue | 40,693 | 43,941 | 83,488 | 90,670 | ||||
| Exited operations | (168 | ) | (1,483 | ) | (770 | ) | (3,060 | ) |
| Same-store, Digital Advertising Revenue | 40,525 | 42,458 | 82,718 | 87,610 | ||||
| Total Advertising Revenue | 54,967 | 60,473 | 114,953 | 127,063 | ||||
| Exited operations | (736 | ) | (3,590 | ) | (3,169 | ) | (7,548 | ) |
| Same-store, Total Advertising Revenue | 54,231 | 56,883 | 111,784 | 119,515 | ||||
| Print Subscription Revenue | 32,902 | 41,079 | 67,898 | 84,511 | ||||
| Exited operations | — | (50 | ) | (2 | ) | (109 | ) | |
| Same-store, Print Subscription Revenue | 32,902 | 41,029 | 67,896 | 84,402 | ||||
| Digital Subscription Revenue | 22,279 | 23,789 | 44,985 | 45,354 | ||||
| Exited operations | — | — | (1 | ) | (2 | ) | ||
| Same-store, Digital Subscription Revenue | 22,279 | 23,789 | 44,984 | 45,352 | ||||
| Total Subscription Revenue | 55,181 | 64,868 | 112,883 | 129,865 | ||||
| Exited operations | — | (50 | ) | (3 | ) | (111 | ) | |
| Same-store, Total Subscription Revenue | 55,181 | 64,818 | 112,880 | 129,754 | ||||
| Print Other Revenue | 7,032 | 7,213 | 14,578 | 15,101 | ||||
| Exited operations | — | — | — | — | ||||
| Same-store, Print Other Revenue | 7,032 | 7,213 | 14,578 | 15,101 | ||||
| Digital Other Revenue | 4,784 | 4,826 | 9,612 | 9,913 | ||||
| Exited operations | — | — | — | — | ||||
| Same-store, Digital Other Revenue | 4,784 | 4,826 | 9,612 | 9,913 | ||||
| Total Other Revenue | 11,816 | 12,039 | 24,190 | 25,014 | ||||
| Exited operations | — | — | — | — | ||||
| Same-store, Total Other Revenue | 11,816 | 12,039 | 24,190 | 25,014 | ||||
| Total Operating Revenue | 121,964 | 137,380 | 252,026 | 281,942 | ||||
| Exited operations | (736 | ) | (3,640 | ) | (3,172 | ) | (7,658 | ) |
| Same-store, Total Operating Revenue | 121,228 | 133,740 | 248,854 | 274,284 | ||||
NOTES
(1) The following are non-GAAP (Generally Accepted Accounting Principles) financial measures for which reconciliations to relevant U.S GAAP measures are included in tables accompanying this release:
- Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our
50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI. - Cash Costs represent a non-GAAP financial performance measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the Company’s cash-settled operating costs. Periodically, the Company provides forward-looking guidance of Cash Costs, which can be used by financial statement users to assess the Company's ability to manage and control its operating cost structure. Cash Costs are defined as compensation, newsprint and ink and other operating expenses. Depreciation and amortization, assets loss (gain) on sales, impairments and other, other non-cash operating expenses and other expenses are excluded. Cash Costs also exclude restructuring costs and other, which are typically paid in cash.
(2) Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified Digital®), digital-only subscription revenue and digital services revenue.
(3) The Company's debt is the
(4) This earnings release is a preliminary report of results for the periods included. The reader should refer to the Company's most recent reports on Form 10-Q and on Form 10-K for definitive information.
(5) Comparable basis is a non-GAAP performance measure based on U.S. GAAP trends for Lee for the current period, excluding the extra week in fiscal 2024. The fourth quarter and full year of fiscal 2025 consisted of 13 weeks and 52 weeks, respectively. The fourth quarter and full year of fiscal 2024 consisted of 14 weeks and 53 weeks, respectively.
(6) FY25 revenue and Adjusted EBITDA were materially impacted by a cyber incident in February 2025. The FY25 impact on revenue and Adjusted EBITDA was approximately
(7) TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI.
