Gray Media, Inc. Q3 FY2025 earnings call

• Strong Q3 results: Revenues at high end of guidance, expenses below low end. Net loss was $23 million, adjusted EBITDA $162 million, political ad revenue $8M.
• M&A activity: Anticipate entering 6 new markets, creating 11 Big Four full duopolies. Strengthened balance sheet with July financing transactions.
• Dividend: Board declared $0.08 per share quarterly common dividend.
• Operational enhancements: Renewed sports partnerships, Investigate TV season 3, Google Cloud partnership, renewed FOX affiliation, WANF as independent station with strong start, progress on Assembly Atlanta.

Total revenue in the third quarter of 2025 was $749 million, at the high end of guidance. Total 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 third quarter of 2024.

• Fourth quarter core ad revenue expected to be up low single digits.
• Full year 2025 retransmission consent revenue less network affiliation fees to decline slightly.
• Full year cash taxes expected at $39 million with no further cash tax payments.
• CapEx range reduced by $15 million to $70-$75 million for full year 2025.

• Forward-looking statements subject to risks and uncertainties from SEC filings.
• Impact of MVPD and network partner negotiations, e.g., YouTube TV carriage dispute.
• Uncertainties around M&A approval processes and regulatory changes.

Q: Dan Kurnos asked about net retrans run rate and directional color.

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

Q: Aaron Watts asked about core ad momentum and 2026.

A: Pat LaPlatney was optimistic about 2026, noting early Q1 numbers and optimism.

Q: Patrick Sholl asked about advertiser reception to WANF rebrand.

A: Sandy Breland said good reception with gains in demos, Hilton Howell mentioned successful upfront event.

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

A: Hilton Howell and Jeff Gignac discussed progress, net investment around $650M and upcoming activity.

Q: Steven Cahall asked about M&A strategy.

A: Kevin Latek and Hilton Howell talked about focus on announced deals, future sub-$200M deleveraging deals, and regulatory insights.

Q: Gengxuan Qiu asked about 4Q political revenue delta.

A: Kevin Latek discussed political spending dynamics, expecting change due to election outcomes.

Q: Avi Steiner asked about YouTube TV carriage dispute.

A: Pat LaPlatney and Hilton Howell expressed frustration and hope for resolution soon.