Lee Enterprises, Incorporated Q4 FY2025 earnings call

• Lee's fiscal 2025 performance showcases a strong digital first foundation with digital revenue making up 53% of total revenue.
• Digital only subscription revenue grew 16% year over year on a same store basis, with $94,000,000 in revenue from 633,000 digitally only subscribers.
• The Amplify Digital Agency saw revenue exceed $100,000,000 with a 5% same store revenue growth, driven by innovative solutions and AI powered tools.
• The company has been disciplined in cost management, consolidating print operations and reducing legacy complexity to reinvest in digital initiatives.
• Local journalism and targeted retention strategies fueled a 16% same store growth in digital only consumer revenue.

Total revenue for Fiscal 2025 was $562,000,000. Digital revenue accounted for $298,000,000, which is 53% of total company revenue. Digital only subscription revenue was $94,000,000 from 633,000 digitally only subscribers, with a 16% year-over-year same store revenue growth. The Amplify Digital Agency, a digital marketing services business, surpassed $100,000,000 in revenue in FY '25 with a 5% same store revenue growth.

• Aim to reach $450,000,000 in digital revenue by 2030.
• Expect mid single-digit adjusted EBITDA growth in 2026.
• Plan a 50,000,000 common stock rights offering to support digital transformation and deleveraging.
• Successful rights offering would lead to an interest rate reduction on debt from 9% to 5% for five years, resulting in $18,000,000 annual interest savings.

• The February cyber incident interrupted efforts on several key projects in 2025.

Q: Was the total debt reduction in the fourth fiscal quarter and the full fiscal year?

A: Since the credit agreement launched in 2020, debt has been reduced by $121,000,000. In 2025, excluding increases related to the cyber incident, debt was reduced by roughly $3.5 million for the fiscal year due to operations and asset sales.