GRAY MEDIA, INC Q1 FY2025 earnings call

• Total revenue for Q1 2025 was $782M, 5% down from 2024 but 1% above guidance. Operating expenses before certain items were 1% below low end of guidance.
• Net loss in Q1 2025 was $9M vs. $88M net income in Q1 2024. Adjusted EBITDA in Q1 2025 was $160M, down 19% from 2024.
• Reduced outstanding indebtedness by $17M in Q1, finished with lower leverage ratio. Extended and increased accounts receivable securitization facility and revolver.
• Board declared $0.08 per share quarterly dividend. Enhanced local content offerings, entered new sports rights agreements (80% of stations now carry local sports).
• Core ad revenue in Q1 2025 down 8% vs. 2024; political ad revenue $13M vs. guide $2M-$4M. Q2 core ad revenue guided down mid-single digits, NCAA Final Four provided $5M benefit in early April.

Total revenue in the first quarter of 2025 was $782 million, a decrease of 5% from the first quarter of 2024 and 1% above the high end of guidance. Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024. Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024. Political ad revenue in Q1 2025 finished well above expectations, with actual results at $13 million vs. guidance of $2 million to $4 million. 80% of Gray's television stations now carry local sports, equating to 90 stations.

• Q2 core ad revenue guided down mid-single digits. Expenses for Q2 guided to remain below inflationary levels. Continues to use free cash to reduce leverage.
• Political ad buys seen for primaries a year away and general elections 18 months away.

• Uncertainty from trade and tariff developments impacting advertiser confidence. Regulatory environment impact on capital allocation and potential M&A. Difficulty in forecasting due to macroeconomic conditions and political advertising variability.

Q: How creative could Gray be with deregulation, attractive options, etc.?

A: Looking for smoke signals from Washington, actively pursuing opportunities like swaps for duopolies, but need waivers/rules.

Q: Impact of affiliate negotiations and reverse comp?

A: Conversations ongoing, hopeful for win-win renewals with networks.

Q: Assembly Atlanta progress, return on investment?

A: ~75-80% occupancy, productions ongoing, guide shows capital neutral this year, returns expected as phases complete.

Q: Political ad cycle comparison between 2026 and 2022 midterm?

A: More ad buys now than last midterm, political ad buys unpredictable.

Q: Cost-cutting impact, visibility to $60M cost reduction?

A: $60M in cost cuts implemented, expenses below inflationary levels, will continue optimizing.

Q: AR securitization and cash balance?

A: AR facility provides liquidity, cash balance managed for repurchases or acquisitions as opportunities arise.