GTN

• M&A Activity and Integration • Closed 7 markets from Allen Media Group, 3 markets from Block Communications, a station swap with EW Scripps, and 2 additional markets from Sagamore Hill in Q2 2026. Immediately after quarter end on July 1, closed acquisition of non-licensed assets from American Spirit Media and WHPM Fox affiliate in Hattiesburg, Mississippi, with license assets expected to close in Q4 2026. • In total, 2026 year-to-date M&A added 4 new markets, 14 stations in existing markets, and 3 swapped markets to Scripps. Current M&A strategy focuses on combining operations within existing markets, rather than only horizontal expansion into new markets.

• Operational Growth and Investments • Won 93 Regional Edward R. Murrow Awards in 2026, up from 81 in 2025 and leading industry peers, reflecting investment in journalistic excellence. • Strengthened local sports content portfolio: Signed a multi-year deal with the Atlanta Hawks through 2028-29 to broadcast 70-75 regular season games across Atlanta affiliate WANF and Peachtree Sports Network, covering all Georgia markets and parts of Alabama, with Raycom Sports producing games. • Completed transition of all digital video streams to the Quick Play platform powered by Google Cloud. CTV and mobile app transitions are planned for Q3 2026 to deliver a unified personalized streaming experience. • Assembly Atlanta (studio facility) has hosted Intense Tennis, will host 2026 Georgia senatorial and gubernatorial debates, and Beyond the Gates, an in-studio soap opera, was renewed for 2 additional seasons. The facility is tracking to reach 90% occupancy for the remainder of 2026.

• Balance Sheet and Deleveraging Strategy • Post-quarter, redeemed $50 million of Series A preferred equity, repurchased $120 million of outstanding debt in a private transaction, and the board reauthorized up to $250 million of additional open market debt repurchases. • The company's top priority for incremental political advertising cash flow is further debt reduction to accelerate deleveraging. All 2026 acquisitions were closed without drawing on the company's revolving credit facility. The company ended Q2 with over $900 million in total liquidity.

• Full year 2026 capital expenditure guidance was lowered to $120-130 million from the prior $140 million estimate.
• Full year 2026 income tax guidance was adjusted to a range of $80-100 million, a slight downward revision from prior estimates.
• Q3 2026 core advertising guidance is flat year-over-year on an as-reported basis, or down mid-single digits when adjusting for 2026 acquisitions, with acquisition gains offsetting core softness and political crowd out. Full year 2026 interest expense guidance is $440 million, which could decline by over $30 million from opportunistic debt repurchases.
• Q3 2026 political advertising revenue is projected to be between $165-185 million, with September historically accounting for half of the quarter's political spending. Year-to-date political pacing is ahead of both 2024 (presidential cycle) and 2022 (non-presidential cycle), and management has high confidence in robust full year political revenue given strong fundraising by both major parties and the company's full exposure to all competitive Senate and gubernatorial battleground races.
• Net retransmission revenue growth is expected to accelerate into 2027, as all existing retransmission contracts are locked in through 2027, with contributions from newly acquired stations adding to organic low single-digit growth. Management expects 2027 adjusted EBITDA to be slightly up from 2025, once all 2026 acquisitions are fully integrated.

The company reports overall Q2 2026 total revenue was $839 million, a 9% year-over-year increase. Breakdown by revenue: 1. Political advertising: Total political revenue was $83 million, 9.9% of total revenue, with $3 million contributed by 2026 acquisitions. This beat the prior 60-70 million guidance range. 2. Retransmission revenue: Net retransmission revenue was $150 million, 17.9% of total revenue, with $6 million contributed by 2026 acquisitions, landing above the adjusted guidance range. 3. Core advertising: Reported core advertising revenue was down 1% year-over-year; adjusted for 2026 acquisitions, core advertising was down mid-single digits, in line with guidance. Digital revenue grew 12% year-over-year, with new local direct digital business up 5%. 4. Overall profitability: Net income attributable to stockholders was $21 million, and adjusted EBITDA was $214 million. Broadcast expenses before depreciation/amortization were $569 million, in the middle of guidance, with $30 million of expenses from new 2026 acquisitions.

• Near-term core advertising faces softness from macroeconomic turbulence, political crowd out from the 2026 election cycle, and weak demand in consumer-facing categories including restaurants, supermarkets, and some services, which contributes to core advertising weakness even after adjusting for political crowd out.
• Broadcast industry consolidation still faces regulatory and legal uncertainty, despite FCC ownership cap updates, as state attorney generals have raised new challenges to station consolidation.
• There is near-term uncertainty around core advertising demand, as broad macroeconomic and geopolitical uncertainty has made ad buyer planning volatile, particularly for the automotive category.
• Borrowing base under the $400 million securitization facility will experience a temporary temporary dip in Q4 2026 as prepaid political revenue replaces longer-term commercial receivables, though the dip is temporary and the borrowing base is expected to recover by the end of the year.

Q: What is the medium-term opportunity from FCC spectrum reallocation for Gray Media and the broadcast industry? / A: There is growing demand from mobile providers for additional broadcast spectrum, similar to the reverse auction 15 years ago. With the broadcast industry currently transitioning to NextGen TV 3.0, spectrum reallocation is much easier to implement than in the past. It would accelerate the 3.0 transition, allow stations to operate more efficiently with less allocated spectrum, and also provide a cost-effective national security backup for the GPS system, creating aligned incentives for multiple stakeholders. We expect any reallocation would occur in the medium term, not the near term.

Q: How has the FCC ownership cap repeal changed your M&A strategy moving forward? / A: Updating the outdated 80-year-old ownership rules to account for modern digital competitors like Google is a very positive development for the industry. In the short term, our top priority remains reducing debt with robust expected political revenue, so we will be selective, but we remain open to attractive acquisitions. Industry consolidation has allowed Gray to invest heavily in local news, which has led to our industry-leading journalism awards; without consolidation, many small market local newsrooms would not exist. We still have to address ongoing regulatory scrutiny from state attorneys general, which creates some near-term uncertainty.

Q: What is the goal of the newly authorized $250 million open market debt repurchase program, and how will it impact leverage and interest costs? / A: We have been opportunistic in reducing our cost of capital, driven by market conditions. If market conditions remain favorable, we will target expensive near-term debt to extend maturities and drive down overall interest costs. Current full year 2026 interest expense is guided at $440 million, and this program could reduce annual interest expense by over $30 million. Reduced interest expense translates directly to higher discretionary free cash flow under current tax rules, which will accelerate our deleveraging trajectory, as almost all incremental political cash flow will go toward debt reduction.

Q: How do you see 2027 EBITDA compared to 2025, given recent M&A and soft core advertising? / A: We expect 2027 EBITDA to be slightly up from 2025 after all 2026 acquisitions are fully integrated. Final results will depend on the overall macroeconomic environment and core advertising demand, which is facing near-term uncertainty from political crowd out and global macro volatility. Acquisitions, cost synergies, and growing retransmission revenue should offset any ongoing core softness to deliver modest growth.