LEE ENTERPRISES, Inc Q2 FY2026 earnings call

Key managerial messages include reconnecting with communities through town hall meetings and adding reporters; shifting compensation structure to 100% equity-based; reducing corporate overhead and simplifying operating model; launching Community Center and expanding local sports coverage via partnership with Hudl; developing a disciplined acquisition strategy; prioritizing local journalism and digital transformation, and focusing on profitable advertising growth by prioritizing higher-margin, sustainable revenue

Digital revenue now represents 56% of total company revenue, up 270 basis points year over year, and accounts for 74% of total advertising revenue. Second quarter adjusted EBITDA grew 95% year over year. Excluding business interruption insurance proceeds, adjusted EBITDA grew 45% year over year. Digital subscription revenue grew 7% over the past 12 months, ending the quarter with 591 thousand digital-only subscribers and $22 million in revenue. Digital advertising revenue saw sequential improvement for the second consecutive quarter, with a 2 percentage point improvement in same-store revenue trends compared to the prior quarter. Cash costs declined 15%, or $19 million, with meaningful reductions across SG&A and print-related expenses

Reaffirmed full-year outlook of adjusted EBITDA growth in the mid-single digits, confident of delivering based on first-half performance. Disciplined approach to cost and focus on profitability were key drivers of strong first-half results, and will maintain operational rigor. Strategy is to accelerate digital growth, strengthen the balance sheet, and continue delivering sustainable value for shareholders

Risks related to forward-looking statements subject to certain risks, trends, and uncertainties that could cause actual results to differ, including the continued impact of prior cyber event

Q: Were there any debt principal payments made in the second quarter?

A: In the second quarter, we did not make any debt payments. However, we did have two real estate sales of noncore assets, and we made a $1 million debt payment just into the third quarter. But that would not be reflected in our second quarter debt