LEE ENTERPRISES, Inc Q1 FY2026 earnings call

• Lee Enterprises had a strong start to fiscal 2026 with significant first-quarter adjusted EBITDA growth and a transformational capital structure improvement. • Completed a $50 million equity investment that strengthens the balance sheet and liquidity. • Amended credit agreement reduced interest rate on $455 million debt to 5% from 9% for five years, expected to save ~$18 million annually. • Digital subscription revenue was $23 million with 5% growth, and digital revenue mix improved. • First-quarter adjusted EBITDA up $5 million or 61% driven by strong cost control, including reduced headcount and legacy print costs. • Terminated fully funded defined benefit pension plan and working to monetize $26 million in non-core assets. • Announced partnership with Huddl, a sports technology leader, to enhance local sports coverage and content.

In the first quarter, adjusted EBITDA grew 61% year over year to $12 million. Digital revenue was $70 million in Q1, representing over 54% of total revenue. Digital-only subscription revenue was $23 million from 609,000 digital-only subscribers, with a 5% growth. Digital revenue mix improved 330 basis points year over year, and digital sources represented 71% of total advertising revenue.

• Reaffirmed outlook for fiscal 2026 of adjusted EBITDA growth in the mid-single digits. • The $50 million equity investment and interest rate reduction boost confidence for fiscal 2026 and the next five years.

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