Gray Media Reports Fourth Quarter Results Exceeding Guidance
Friday, February 27th, 2026
Gray Media (NYSE: GTN) today announced its financial results for the fourth quarter that ended December 31, 2025.
EXECUTIVE COMMENTARY
Hilton Howell, Jr., Chairman and CEO, commented, “We delivered strong fourth quarter financial results, with revenue and Adjusted EBITDA exceeding consensus expectations. The quarter benefited from better-than-expected MVPD subscriber trends, which drove year-over-year growth in “Net Retransmission Revenue” (retransmission consent revenue less network affiliation fees). We also achieved a 3% reduction in broadcasting expenses for full year 2025. Additionally, our 2025 debt refinancings extended the majority of our debt maturities beyond the 2026 and 2028 political cycles, meaningfully enhancing our financial flexibility.
Looking ahead to 2026, we remain encouraged by the likelihood of local ownership reform that would help level the playing field for our industry, positioning us to close the transactions announced over the past two quarters and pursue additional strategic and disciplined opportunities. Our diversified portfolio of leading stations, in which we operate the first or second highest rated television station in nearly all of our markets, positions us well to capitalize on the expected 2026 midterm election spending and an improving general advertising environment. At the same time, we will continue to evaluate deleveraging and refinancing opportunities throughout 2026 to reduce our overall leverage and interest expense.”
BUSINESS HIGHLIGHTS:
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Acquisitions – Remaining pending strategic and deleveraging acquisitions, announced in 2025, are expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
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Network Affiliations - On December 23, 2025, we announced a multi-year renewal of our NBC network affiliation agreements for all of our 54 NBC-affiliated markets nationwide. Our next network renewals occur in the second half of 2027.
FINANCIAL HIGHLIGHTS:
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Total Revenue – $792 million in the fourth quarter of 2025, exceeded our previously issued high-side guidance of $782 million.
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Core Advertising Revenue - $392 million in the fourth quarter of 2025, an increase of 3% compared to the fourth quarter of 2024, and exceeded our previously issued high-side guidance of $390 million.
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Retransmission Consent Revenue - $335 million in the fourth quarter of 2025, exceeded our previously issued high-side guidance of $330 million. Net Retransmission Revenue of $134 million increased 3% in the fourth quarter of 2025, compared to $130 million in the fourth quarter of 2024.
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Political Advertising Revenue - $12 million in the fourth quarter of 2025, reflective of the off-year of the two-year political advertising cycle, exceeded our previously issued high-side guidance of $8 million.
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Operating Expenses – Total broadcasting expense decreased $41 million in the fourth quarter of 2025, or 7%, compared to fourth quarter of 2024. In addition, for full year 2025, broadcasting expenses decreased $78 million, or 3%, compared to full year 2024. Overall, broadcasting, production and corporate expenses were all at, or below, the low end of our previously issued guidance ranges for the fourth quarter of 2025.
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Capital Expenditures – Capital expenditures, excluding capital expenditures related to Assembly Atlanta, were $74 million and $97 million during the years ended December 31, 2025 and 2024, respectively.
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Assembly Atlanta Capital Expenditures and Doraville CID Reimbursement – Cash proceeds received from the Doraville CID in December 2025, as reimbursement for certain of our public infrastructure investment at Assembly Atlanta, were $28 million. During full-year 2025, our gross capital expenditures at Assembly Atlanta totaled $34 million and total CID reimbursements were $33 million.
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Income Tax Payments - Federal and state income tax payments were $38 million and $135 million during the years ended December 31, 2025 and 2024, respectively.
| Selected Operating Data (Unaudited) | |||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||
| 2025 | 2024 | % Change 2025 to 2024 |
2025 | 2024 | % Change 2025 to 2024 |
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| (dollars in millions) | |||||||||||||||||||
| Revenue (less agency commissions): | |||||||||||||||||||
| Core advertising | $ | 392 | $ | 380 | 3% | $ | 1,452 | $ | 1,490 | (3)% | |||||||||
| Political advertising | 12 | 250 | (95)% | 42 | 497 | (92)% | |||||||||||||
| Retransmission consent | 335 | 361 | (7)% | 1,429 | 1,482 | (4)% | |||||||||||||
| Other | 16 | 17 | (6)% | 65 | 70 | (7)% | |||||||||||||
| Total broadcasting revenue | 755 | 1,008 | (25)% | 2,988 | 3,539 | (16)% | |||||||||||||
| Production companies | 37 | 37 | 0% | 107 | 105 | 2% | |||||||||||||
| Total revenue | $ | 792 | $ | 1,045 | (24)% | $ | 3,095 | $ | 3,644 | (15)% | |||||||||
| Net Retransmission Revenue: | |||||||||||||||||||
| Retransmission consent revenue | $ | 335 | $ | 361 | $ | 1,429 | $ | 1,482 | |||||||||||
| Less, broadcasting network | |||||||||||||||||||
| affiliation fees | (201 | ) | (231 | ) | (882 | ) | (932 | ) | |||||||||||
| Net Retransmission Revenue | $ | 134 | $ | 130 | 3% | $ | 547 | $ | 550 | (1)% | |||||||||
| Operating expenses (1): | |||||||||||||||||||
| Broadcasting | |||||||||||||||||||
| Station expenses | $ | 356 | $ | 366 | (3)% | $ | 1,356 | $ | 1,380 | (2)% | |||||||||
| Network affiliation fees | 201 | 231 | (13)% | 882 | 932 | (5)% | |||||||||||||
| Non-cash stock-based | |||||||||||||||||||
| compensation | - | 1 | (100)% | 1 | 5 | (80)% | |||||||||||||
| Total broadcasting expense | $ | 557 | $ | 598 | (7)% | $ | 2,239 | $ | 2,317 | (3)% | |||||||||
| Production companies | $ | 33 | $ | 26 | 27% | $ | 95 | $ | 83 | 14% | |||||||||
| Corporate and administrative | |||||||||||||||||||
| Corporate expenses | $ | 21 | $ | 20 | 5% | $ | 86 | $ | 87 | (1)% | |||||||||
| Transaction Related Expenses | 2 | - | 6 | - | |||||||||||||||
| Non-cash stock-based | |||||||||||||||||||
| compensation | 5 | 4 | 25% | 21 | 17 | 24% | |||||||||||||
| Total corporate and | |||||||||||||||||||
| administrative expense | $ | 28 | $ | 24 | 17% | $ | 113 | $ | 104 | 9% | |||||||||
| Net (loss) income | $ | (10 | ) | $ | 169 | (106)% | $ | (85 | ) | $ | 375 | (123)% | |||||||
| Adjusted EBITDA (2) | $ | 179 | $ | 402 | (55)% | $ | 670 | $ | 1,162 | (42)% | |||||||||
(1) Excludes depreciation, amortization, impairment and (gain) loss on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net (loss) income included herein.
FINANCIAL POSITION AND LEVERAGE
DEBT SUMMARY- The table below summarizes our debt principal and cash balances:
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Outstanding principal of debt obligations (1) | |||||||
| First lien term loans | $ | 749 | $ | 1,893 | |||
| Senior secured first lien loans | 1,900 | 1,250 | |||||
| Senior secured second lien notes | 1,150 | - | |||||
| Senior unsecured notes | 2,011 | 2,547 | |||||
| Total outstanding principal of debt obligations | 5,810 | 5,690 | |||||
| Less cash | (368 | ) | (135 | ) | |||
| Total outstanding principal of debt obligations, less cash | $ | 5,442 | $ | 5,555 | |||
(1) Excludes letters of credit, accounts receivable securitization facility and preferred stock.
RECENT REFINANCING ACTIVITIES - On December 12, 2025, we completed the issuance of an additional $250 million of our 9.625% Senior Secured Second Lien Notes due 2032 and used a portion of the proceeds to redeem $125 million of our higher interest rate 10.5% Senior Secured First Lien Notes due 2029. We have no debt maturities due prior to 2028.
LEVERAGE METRICS - As of December 31, 2025, calculated as set forth in our Senior Credit Agreement (unaudited):
| • First Lien Leverage Ratio | 2.43 to 1.00 |
| • Secured Leverage Ratio | 3.65 to 1.00 |
| • Leverage Ratio | 5.80 to 1.00 |
LIQUIDITY - As of December 31, 2025:
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Unrestricted cash - $368 million
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Borrowing availability under our $750 million undrawn Revolving Credit Facility - $745 million (reflecting only certain outstanding undrawn letters of credit)
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Accounts receivable securitization facility of $400 million was fully drawn
OTHER NOTEWORTHY EVENTS
WBBJ-TV Acquisition - On December 16, 2025, we announced that we reached an agreement with Bahakel Communications, Limited, to purchase the assets of television station WBBJ-TV (ABC/CBS) in the Jackson, Tennessee television market (DMA 175). On January 1, 2026, we acquired all of the non-license assets of the station and commenced operating the station pursuant to a standard pre-closing agreement, and, on February 13, 2026, we acquired the license assets of the station, which completed our acquisition, for total consideration of $25 million. Along with other station transactions announced in the second half of 2025, we anticipate that the WBBJ-TV acquisition will contribute to reducing our leverage.
GUIDANCE FOR THE QUARTER ENDED MARCH 31, 2026
Based on our current forecasts for the quarter ending March 31, 2026, we anticipate the following key financial results, as outlined below in approximate ranges and as compared to the quarter ended March 31, 2025, as well as certain currently anticipated full-year financial results. Our guidance includes estimated results for television station WBBJ-TV, while it does not include estimates for any of the announced and not yet completed transactions.
We earned $11 million in advertising revenue from the Super Bowl broadcast on our 54 NBC and 47 Telemundo channels in 2026 compared to the first quarter of 2025, when Super Bowl advertising revenue was $9 million on our 27 FOX channels. We were very pleased that our Super Bowl advertising revenue on our NBC channels increased to $11 million in 2026, compared to $5 million on our NBC channels in 2022.
Our first quarter 2026 will benefit from the broadcasts of the recently concluded Winter Olympics across our NBC affiliated channels. We currently estimate the 2026 Winter Olympic broadcasts will generate approximately $15 million of revenue compared to approximately $8 million of revenue earned in the first quarter 2022 Winter Olympics broadcasts.
As always, guidance may change in the future based on several factors and therefore may not reflect future actual results.
| Quarter Ending | ||||||||
| Quarter Ended | March 31, 2026 | |||||||
| March 31, 2025 | (Guidance) | |||||||
| (Unaudited) | Low | High | ||||||
| (in millions) | ||||||||
| Revenue (less agency commissions): | ||||||||
| Core advertising | $ | 344 | Approximately Flat | |||||
| Political advertising | $ | 13 | $ | 25 | $ | 30 | ||
| Total revenue | $ | 782 | $ | 755 | $ | 770 | ||
| Net Retransmission Revenue | $ | 146 | $ | 148 | $ | 150 | ||
| Operating expenses (excluding depreciation, | ||||||||
| amortization and (gain) loss on disposal of assets): | ||||||||
| Total broadcasting expense | $ | 577 | $ | 555 | $ | 560 | ||
| Total corporate and administrative expense | $ | 32 | $ | 30 | $ | 35 | ||
| Year Ending | ||||||||
| December 31, | ||||||||
| 2026 | ||||||||
| Estimated supplemental information (in millions): | (Guidance) | |||||||
| Interest expense, excluding amortization of deferred financing costs | $ | 440 | ||||||
| Amortization of deferred financing costs | $ | 16 | ||||||
| Preferred stock dividends | $ | 52 | ||||||
| Common stock dividends | $ | 32 | ||||||
| Capital expenditures | $ | 140 | ||||||
| Income tax payments, excluding refunds | $105 to $125 | |||||||
