Gray Media, Inc. Q4 FY2025 earnings call

• Management introduced including new VP of Investor Relations. - 2025 results favorable to prior guidance, total revenue above high end, expenses below low end. - Completed acquisition of WBBJ - TV, continuing other transactions and strengthening balance sheet. - Newscasts attract engaged audiences, enhanced local content, won Murrow Awards. - Added local and regional live sports broadcasts, InvestigateTV premiered third season and launched AI project. - Digital team rolling out transition to Quick Play platform. - Renewed affiliation agreements, expanded Telemundo portfolio. - Efforts to monetize Assembly Atlanta, net capital investment in 2025 was essentially zero. - Struck deal with Intense Tennis to start competing in June.

2025 total revenue was $792 million, above the high end of guidance. Total operating expenses in Q4 were $618 million, $5 million below the low end of guidance. Broadcasting expenses declined by $78 million (about 3%) full - year in 2025 compared to 2024. Net retransmission revenue returned to growth in 2025, full - year net retransmission revenue stabilized at $547 million in 2025 similar to 2024. 2025 net capital investment in Assembly Atlanta was $1 million. Q4 core advertising revenue finished above high end of guidance, up 3% compared to 2024. Political advertising revenue of $12 million finished above expectations.

• Q1 2026 core ad revenue expected to be approximately flat with 2025. - Q1 2026 political ad guidance $25 million to $30 million. - First quarter 2026 net retransmission revenue guide $148 million to $156 million, expecting continued modest growth. - Expect net retransmission revenue to grow slightly in 2026 compared to 2025. - 2026 company - wide CapEx estimated at approximately $140 million.

• Forward - looking statements subject to risks and uncertainties from various factors in SEC filings. - Competition from large companies like Google, Meta. - Regulatory approvals for acquisitions. - Contract renewals and their impact on revenue. - Economic environment affecting advertising and revenue.

Q: Outside of Nexstar, does the potential deal change how you think about assets?

A: Hilton is optimistic about own transactions, if Nexstar - TEGNA closes may put impetus on company to get larger.

Q: Regarding leverage, progress in 2026?

A: Announced M&A about a quarter turn, political number affects leverage direction.

Q: Subscriber trends for retrans?

A: Rate of decline has slowed, similar to ATV industry trends.

Q: Atlanta Assembly update?

A: Will have announcements in 2026, net cost as of 2025 net of reimbursements is around $630 million.

Q: AI cost efficiency?

A: Gray AI helps with time - consuming tasks, allows journalists and sales to be more efficient, final product signed off by human, like saving cost of a thousand interns