Gray Media, Inc. Q1 FY2026 earnings call

• Financial Results: Total revenue in Q1 2026 was $768 million, operating expenses before certain items were $622 million ( $7 million below prior year), broadcasting expenses down $22 million vs Q1 2025, net loss $330 thousand, Adjusted EBITDA $154 million, political advertising revenue $30 million (high end of guidance). • Distribution and Agreements: Resolved DISH distribution blackout with new multi - year agreement. Negotiated retransmission consent agreement renewals with three large traditional MVPDs (39% of footprint) and expanded agreements with two virtual MVPDs. • Acquisitions: Acquired WBBJ in Jackson, Tennessee, stations from Allen Media Group, Block Communications, and expect to close remaining transactions with E.W. Scripps and Sagamore Hill. • Programming and Studios: CBS renewed Beyond the Gates for two additional seasons. Tennis Channel and TGL to host 2026 tennis matches in Assembly Studios. Upcoming FIFA World Cup on FOX and Telemundo affiliates. • Business Segments: Core advertising had strength in gaming, legal, insurance, financial; weakness in consumer goods. Digital had healthy growth, RYCOM Sports partnered with Atlanta Braves, digital apps/websites transitioned to Quickplay platform.

In the first quarter of 2026, total revenue was $768 million, which was at the high end of the guidance for the quarter. Total operating expenses before depreciation, amortization, impairment, and gain or loss on disposal of assets were $622 million, $7 million below the comparable period last year. Broadcasting expenses declined by $22 million in Q1 2026 compared to Q1 2025. The net loss attributable to common stockholders was $330 thousand, and Adjusted EBITDA was $154 million. Political advertising revenue was $30 million, at the high end of the guidance. Core advertising was above previously issued guidance, being approximately flat compared to 2025 with a boost from the Winter Olympics, but there was softness in Q2. Digital revenue continued healthy growth, up in the high-teens compared to 2025, and local direct business growth rate accelerated to 15% over the same period. Net retrans revenue was down $4 million in the first quarter of 2026 compared to 2025.

• Core Ad Revenue: Q2 2026 core ad revenue is expected to be down mid - single digits compared to Q2 2025. • Political Revenue: Q2 2026 political revenue is expected to be in the range of $60 million to $70 million. • Broadcasting Expenses: Q2 2026 broadcasting expenses are expected to be down 3% at the midpoint compared to 2025. • Net Retrans Revenue: Q1 2026 net retrans revenue is expected to be in a similar range as the just - ended quarter, with low single - digit growth, and clear line of sight to growth for full - year 2026 even before acquisitions. • CapEx and Tax: Full - year CapEx estimate is $140 million, back - end weighted. Full - year tax guide is down to a range of $90 million to $110 million.

• Economic and Advertising: Uncertain economic conditions can affect advertising spending. • Regulatory: Regulatory uncertainties related to M&A transactions, including DOJ and FCC reviews, and state AG regulatory risk. • Retransmission: Potential for retransmission disputes similar to the DISH one in the future. • Competitive: Impact of the competitive landscape on advertising revenue.

Q: Steven Lee Cahall asked about regulatory outlook, retrans outlook, etc.

A: Kevin P. Latek discussed the regulatory process, DOJ review, FCC process, state AG regulatory risk; Jeffrey R. Gignac discussed net retrans outlook.

Q: Daniel Louis Kurnos asked about retrans guide, political season.

A: Jeffrey R. Gignac discussed retrans sub trends; Kevin P. Latek and Hilton Hatchett Howell discussed political season outlook.

Q: Aaron Watts asked about retrans demand, expense in second half.

A: Kevin P. Latek discussed retrans negotiation details; Jeffrey R. Gignac discussed expense management.

Q: Patrick Sholl asked about advertising guidance, MVPD impact on local programming.

A: Donald Patrick LaPlatney discussed advertising guidance; Sandy Breland discussed MVPD impact on local programming.

Q: Gengxuan Qiu asked about net retrans, Charter/Cox.

A: Jeffrey R. Gignac discussed net retrans factoring.

Q: Craig Anthony Huber asked about FCC ownership cap, AI use.

A: Kevin P. Latek discussed FCC ownership cap irrelevance to Gray; Sandy Breland discussed AI benefits in time saving and productivity