Gray Media, Inc. Q3 FY2025 earnings call

• Q3 results favorable to guidance; total revenue at high end, expenses below low end. • TV stations contributed to lower expenses. • Significant M&A activity ongoing, anticipating entering 6 new markets and creating 11 new Big Four full duopolies. • Strengthened balance sheet with financing transactions in July. • Declared $0.08 per share quarterly common dividend. • Enhanced local content: renewed partnerships, expanded sports portfolio, Investigate TV premiered third season, launched AI multi-platform project, new streaming structure with Google Cloud rolling out in Jan 2026, renewed FOX affiliation agreement for 27 markets, WANF in Atlanta off to strong start with over 25.5 hours of local programming, progress on Assembly Atlanta with potential development partners.

Total revenue in the third quarter of 2025 was $749 million, at the high end of guidance. Operating expenses before depreciation, amortization, impairment and gain or loss on asset disposal were $592 million, $17 million below the low end of guidance. Net loss attributable to common stockholders was $23 million. Adjusted EBITDA was $162 million. Political advertising revenue hit $8 million. Station level operating expenses (excluding network affiliation fees) were down $8 million or 2% compared to Q3 2024.

• Fourth quarter 2025 core ad revenue guidance is low single digits growth. • Full year 2025 cash taxes guided at $39 million, no further cash tax payments expected. • CapEx range for full year 2025 reduced by $15 million to $70 million to $75 million. • Q4 retransmission consent revenue less network affiliation fees guide excludes WANF impact and will decline slightly vs prior year. • Political ad revenue in Q3 exceeded expectations ($8M vs $6M-$7M guide). • Optimistic about 2026 with early Q1 numbers encouraging and Braves spring training schedule kicking in with strong past ratings.

• Uncertainties in forward-looking statements due to various factors in SEC filings. • Macro environment impacting advertiser caution. • Potential delays in M&A approvals due to government shutdowns. • Dynamics of political fundraising and how it may impact revenue. • Risks associated with carriage disputes like YouTube TV and their impact on future negotiations.

Q: Dan Kurnos asked about net retrans run rate and direction for 2026.

A: Jeff Gignac said net retrans is flattening, too early to guide full year but hopeful for positive turn though there are declines.

Q: Aaron Watts inquired about core ad trends and 2026 outlook.

A: Pat LaPlatney was optimistic about 2026 with early Q1 numbers encouraging.

Q: Patrick Sholl asked about advertiser reception to WANF's increased news content.

A: Sandy Breland said viewers are responding with gains in mornings and key demos, and Hilton Howell mentioned a successful upfront event for WANF.

Q: Craig Huber asked about Assembly Atlanta's total cost and ROI.

A: Hilton Howell and Jeff Gignac discussed the net investment of around $650 million, ongoing negotiations with parties, and excitement about future returns.

Q: Steven Cahall asked about M&A strategy.

A: Kevin Latek said focus on announced M&A deals, looking at sub-$200M deleveraging deals down the road, and Hilton Howell added focus on filling market footprints for sports partners.

Q: Gengxuan Qiu asked about political revenue delta.

A: Kevin Latek discussed political fundraising dynamics and optimism for 2026 due to election outcomes.

Q: Avi Steiner asked about YouTube TV carriage dispute.

A: Patrick LaPlatney said the situation is frustrating, hoping for a resolution soon in the interest of both companies and consumers.