NEW YORK, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Gannett Co., Inc. (NYSE: GCI) today announced DeeperDive, an industry-first Gen AI answer engine created by Taboola (NASDAQ: TBLA) is now fully implemented on USA TODAY for an audience of over 195 million monthly unique visitors. After completing a successful beta, DeeperDive delivers the power of GenAI conversations directly on USA TODAY’s platform for all users, tapping into years of proprietary, real-time, high-quality content created by journalists and editor ...

Connects readers with trusted answers exclusively from USA TODAY and USA TODAY Network contentNEW YORK, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Gannett Co., Inc. (NYSE: GCI) today announced DeeperDive, an industry-first Gen AI answer engine created by Taboola (NASDAQ: TBLA) is now fully implemented on USA TODAY for an audience of over 195 million monthly unique visitors. After completing a successful beta, DeeperDive delivers the power of GenAI conversations directly on USA TODAY’s platform for all users, tappin ...

NEW YORK, NY--(BUSINESS WIRE)--Gannett Co., Inc. (NYSE: GCI) today announced DeeperDive, an industry-first Gen AI answer engine created by Taboola, is now fully implemented on USA TODAY for an audience of over 195 million monthly unique visitors. After completing a successful beta, DeeperDive delivers the power of GenAI conversations directly on USA TODAY's platform for all users, tapping into years of proprietary, real-time, high-quality content created by journalists and editors at USA TODAY. ...

Group 1 - Gannett Co., Inc. (NYSE: GCI) is undergoing multiple changes aimed at enhancing its operations and increasing profitability [1]

Group 1 - The largest contributor during the quarter was Gannett (GCI), which increased by 24%, recovering part of its first quarter drawdown [2] - Gannett is considered significantly mispriced in the market [2]

Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q2 2025 financial statements report total assets decreased to $2.01 billion, liabilities to $1.77 billion, and net income significantly improved to $78.4 million, despite a 9% revenue decline [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $88,542 | $106,299 | | Total current assets | $392,840 | $425,895 | | Total assets | $2,010,187 | $2,040,147 | | Total current liabilities | $540,953 | $545,602 | | Total debt (Long-term + Convertible) | $919,571 | $1,005,511 | | Total liabilities | $1,773,598 | $1,887,513 | | Total equity | $236,589 | $152,634 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $584,861 | $639,840 | $1,156,434 | $1,275,601 | | Net income (loss) attributable to Gannett | $78,391 | $13,748 | $71,058 | $(71,020) | | Diluted income (loss) per share | $0.42 | $0.09 | $0.40 | $(0.50) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $55,863 | $57,576 | | Cash provided by (used for) investing activities | $27,804 | $(16,266) | | Cash used for financing activities | $(102,163) | $(43,524) | | Decrease in cash, cash equivalents and restricted cash | $(20,016) | $(1,818) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail Q2 2025 revenue disaggregation, showing a decline to $584.9 million, with $12.3 million in restructuring costs and total debt reduced to $988.9 million, while Domestic Gannett Media remains the largest segment Q2 2025 Revenue by Segment and Type (in thousands) | Revenue Type | Domestic Gannett Media | Newsquest | Digital Marketing Solutions | Consolidated Total | | :--- | :--- | :--- | :--- | :--- | | Digital | $161,026 | $20,165 | $117,478 | $265,435 | | Print and commercial | $278,273 | $41,153 | $— | $319,426 | | **Total Segment Revenues** | **$439,299** | **$61,318** | **$117,478** | **$584,861** | Integration and Reorganization Costs (in thousands) | Period | Severance-related | Other Reorganization | Total | | :--- | :--- | :--- | :--- | | **Q2 2025** | $8,204 | $4,114 | $12,318 | | **Q2 2024** | $4,429 | $15,346 | $19,775 | Debt Summary (in millions) | Debt Instrument | Carrying Value (June 30, 2025) | Carrying Value (Dec 31, 2024) | | :--- | :--- | :--- | | 2029 Term Loan Facility | $750.7 | $830.1 | | 2031 Notes | $216.3 | $215.9 | | 2027 Notes | $21.9 | $33.8 | | **Total Debt** | **$988.9** | **$1,079.8** | - In April 2025, the company repurchased **$14.0 million** principal amount of its 2027 Notes for **$15.0 million** in cash, financed by drawing from its 2029 Delayed Draw Facility[50](index=50&type=chunk)[76](index=76&type=chunk) - On February 28, 2025, the company sold the Austin American-Statesman, recognizing a pre-tax gain of approximately **$20.8 million**[122](index=122&type=chunk)[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(MD%26A)) MD&A highlights a 9% Q2 2025 revenue decrease driven by print decline, a 5% digital revenue drop, and an 8% reduction in operating costs, with net income improving due to tax benefits and asset sales, and **$97.9 million** debt prepaid [Business Trends and Recent Developments](index=31&type=section&id=Business%20Trends%20and%20Recent%20Developments) - Key business trends include the ongoing decline of print advertising and circulation, macroeconomic pressures on ad spending, reliance on third-party technology platforms, and the increasing pace of change due to artificial intelligence (AI)[132](index=132&type=chunk)[133](index=133&type=chunk) - The Detroit Joint Operating Agreement (JOA) will not be renewed and is set to end in December 2025[134](index=134&type=chunk) - New U.S. tax legislation, the "One Big Beautiful Bill Act," signed in July 2025, is being evaluated for its impact on interest deductibility and R&D expensing[137](index=137&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Consolidated Results Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $584,861 | $639,840 | (9)% | | Digital revenues | $265,435 | $278,378 | (5)% | | Print and commercial revenues | $319,426 | $361,462 | (12)% | | Operating costs | $359,448 | $391,474 | (8)% | | Net income attributable to Gannett | $78,391 | $13,748 | 470% | Segment Adjusted EBITDA (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Domestic Gannett Media | $43,224 | $52,898 | (18)% | | Newsquest | $14,894 | $14,138 | 5% | | Digital Marketing Solutions | $11,498 | $11,773 | (2)% | | **Total Segment Adjusted EBITDA** | **$69,616** | **$78,809** | **(12)%** | - The significant increase in net income for Q2 2025 was primarily driven by an **$87.5 million** benefit for income taxes, compared to a **$26.8 million** benefit in Q2 2024[143](index=143&type=chunk)[161](index=161&type=chunk) [Key Performance Indicators](index=47&type=section&id=Key%20Performance%20Indicators) Key Performance Indicators (as of June 30) | KPI | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Digital-only paid subscriptions (thousands) | 1,723 | 2,034 | (15)% | | Domestic Gannett Media Digital-only ARPU | $7.92 | $7.70 | 3% | | DMS Core platform average customer count (thousands) | 13.8 | 14.7 | (6)% | | DMS Core platform ARPU | $2,830 | $2,777 | 2% | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash provided by operating activities was **$55.9 million** for the first six months of 2025, a slight decrease from **$57.6 million** in the prior-year period[217](index=217&type=chunk) - The company's total outstanding debt had a carrying value of **$988.9 million** as of June 30, 2025, with **$97.9 million** prepaid under its 2029 Term Loan Facility in the first half of 2025[220](index=220&type=chunk)[224](index=224&type=chunk) - No shares were repurchased under the **$100 million** Stock Repurchase Program during Q2 2025, leaving approximately **$96.9 million** authorized[230](index=230&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported for Q2 2025 compared to the 2024 Annual Report on Form 10-K - No material changes have occurred in the quantitative and qualitative disclosures about market risks since the company's 2024 Form 10-K[234](index=234&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[235](index=235&type=chunk) - No material changes were made to the company's internal control over financial reporting during Q2 2025[236](index=236&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a civil action filed against Google and Alphabet Inc. on June 20, 2023, alleging anticompetitive ad-tech practices - The company has filed a lawsuit against Google and Alphabet Inc. for alleged anticompetitive practices in the ad-tech market, with an unpredictable outcome[106](index=106&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have occurred - No material changes to the risk factors described in the 2024 Form 10-K have occurred[240](index=240&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company did not repurchase equity securities in the open market, but withheld 95,000 shares from employees at **$3.39** per share for tax obligations - The company did not repurchase any shares of its common stock under its publicly announced repurchase program during the three months ended June 30, 2025[241](index=241&type=chunk)[242](index=242&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total shares purchased (a) | Average price paid per share (a) | | :--- | :--- | :--- | | April 2025 | 3,000 | $3.02 | | May 2025 | 0 | $— | | June 2025 | 92,000 | $3.40 | | **Total** | **95,000** | **$3.39** | (a) Represents shares withheld to cover employee tax-withholding obligations upon vesting of restricted stock awards

Financial Data and Key Metrics Changes - In Q2 2025, total revenues were $584.9 million, a decrease of 8.6% year over year, or 6.4% on a same-store basis, with a 130 basis point improvement from Q1 [33] - Total adjusted EBITDA was $64.2 million, reflecting a sequential increase of 27% [9][35] - Free cash flow totaled $17.6 million, representing sequential growth of 73% [9][42] - Net income was $78.4 million, significantly improved by a tax benefit of $87.5 million [36] Business Line Data and Key Metrics Changes - Digital revenues in Q2 were $265.4 million, down 4.6% year over year, but digital advertising returned to growth due to improved page views and programmatic revenue [36][37] - Digital-only subscription revenues totaled $42.7 million, with ARPU increasing to $7.79, showing sequential and year-over-year growth [37][38] - The Digital Marketing Solutions (DMS) segment saw total core platform revenue of $116.9 million, up 8.1%, and segment adjusted EBITDA of $11.5 million, reflecting growth of 35.8% [41] Market Data and Key Metrics Changes - The company maintained an audience of 181 million average monthly unique visitors, indicating strong reach and engagement [12] - Digital advertising revenues grew 4% year over year, with significant potential for further growth as the advertising marketplace stabilizes [10][13] Company Strategy and Development Direction - The company is focusing on a diversified digital revenue strategy, enhancing audience engagement, and leveraging AI for content licensing [7][24] - A $100 million cost reduction program is underway, targeting operational efficiencies and improved EBITDA margins [11][34] - The company aims to grow digital-only subscriptions intentionally, focusing on high-value subscribers and sustainable growth [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting stronger performance driven by digital revenue growth and cost reduction initiatives [6][11] - The digital advertising marketplace is showing strength, with expectations for robust growth in Q3 and Q4 [50] - Management anticipates that revenue trends will stabilize and improve, aiming for flat revenues in early 2026 [51][44] Other Important Information - The company has implemented measures to protect its content from unauthorized AI scraping and is exploring partnerships for fair licensing [27][72] - Strategic hires in the entertainment sector are expected to enhance audience engagement and drive higher digital revenue [19] Q&A Session Summary Question: When do you think your revenues will turn flat? - Management expects revenues to stabilize in early 2026, driven by improvements in print trends and digital advertising [50] Question: Can you provide more details around the cost reduction program? - The program focuses on automation, outsourcing, and eliminating duplication, including the closure of two large print facilities [52][53] Question: What has been your experience with AI search and traffic? - The company continues to grow its digital audience and page views, leveraging automation and diversifying traffic sources [58][60] Question: Any updates on the ad tech antitrust case with Google? - Positive developments are noted in ongoing antitrust cases, with expectations for a ruling later this year [62][64] Question: When do you expect to return to year-over-year growth for digital subscriber revenue? - Management anticipates sequential growth in the third and fourth quarters, with overall growth expected next year [68] Question: Are you seeing trends in AI content partnership deals? - There is a momentum shift towards publishers, with more technology companies recognizing the need for fair licensing of content [71][73] Question: Can you dig into the digital advertising revenue drivers? - Growth was driven by page view increases, programmatic revenue, and the strength of the national brand [78][80] Question: What is happening with the DMS business strategy? - The strategy includes improving search capabilities and integrating CRM systems to enhance customer engagement and retention [83][87]

1 Disclaimer and Notes In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." Gannett Co., Inc. is referred to in this Presentation as "Gannett," "we," "us," "our" or the "Company". Cautionary Statement Regarding Forward-Looking Statements. Certain items in this Presentation may constitute forward-looking statements within the mean ...

[Gannett Announces Second Quarter 2025 Results and Outlook](index=1&type=section&id=Gannett%20Announces%20Second%20Quarter%202025%20Results) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlighted sequential Q2 2025 financial improvements, digital ad growth, $100M cost cuts, debt repayment, and AI traction - Sequential improvement across key financial metrics: **Total Adjusted EBITDA margin expanded to 11% from ~9%**, net income attributable to Gannett, cash provided by operating activities, free cash flow, and cash balance[2](index=2&type=chunk) - Digital advertising trends improved from a decline in Q1 to a **4% increase in Q2**, with further improvement expected in Q3[2](index=2&type=chunk) - Implementing targeted annualized expense reductions of approximately **$100 million** to create a lower, more variable cost structure and increase margins[3](index=3&type=chunk) - Repaid **$23.4 million of debt in Q2 2025**, totaling approximately **$100 million in H1 2025**, and expects to exceed initial projections by repaying over **$135 million by year-end 2025**[3](index=3&type=chunk) - Seeing meaningful traction in AI initiatives, including a licensing deal with Perplexity, launching Taboola's generative AI answer engine 'DeeperDive' on USA TODAY, and utilizing technology to block unauthorized AI scraping[3](index=3&type=chunk) [Second Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) [Financial Highlights](index=1&type=section&id=2.1.%20Financial%20Highlights) Gannett reported Q2 2025 total revenues of **$584.9 million** (down **8.6%** YoY), with significant net income and Adjusted EBITDA margin expansion Q2 2025 Key Financial Metrics | Metric | Value (in millions) | | :-------------------------------- | :------------------ | | Total revenues | $584.9 | | Same store revenues | - | | Net income attributable to Gannett | $78.4 | | Adjusted net income attributable to Gannett | $84.5 | | Total Adjusted EBITDA | $64.2 | | Total Adjusted EBITDA margin | 11.0% | | Cash provided by operating activities | $32.6 | | Free cash flow | $17.6 | [Digital Highlights](index=1&type=section&id=2.2.%20Digital%20Highlights) Gannett's Q2 2025 digital operations reported **181 million** unique visitors, **$265.4 million** total digital revenues, and sequential improvements in DMS metrics - **181 million** average monthly unique visitors, with approximately **129 million** from U.S. media network (USA TODAY) and **52 million** from U.K. digital properties[5](index=5&type=chunk) Q2 2025 Digital Revenue Breakdown | Metric | Value (in millions) | | :------------------------------------ | :------------------ | | Total digital revenues | $265.4 | | Digital advertising revenues | $87.9 | | Digital-only subscription revenues | $42.7 | | Digital Marketing Solutions segment core platform revenues | $116.9 | - Key metrics for Digital Marketing Solutions segment, including core platform revenues, Segment Adjusted EBITDA, core platform average revenue per user, and core platform average customer count, improved sequentially[10](index=10&type=chunk) [Capital Structure Highlights](index=2&type=section&id=2.3.%20Capital%20Structure%20Highlights) As of June 30, 2025, Gannett held **$88.5 million** cash, **$1,014.9 million** total principal debt, a **2.7x** first lien net leverage, and repaid **$23.4 million** debt in Q2 Capital Structure as of June 30, 2025 | Metric | Value (in millions) | | :-------------------------------- | :------------------ | | Cash and cash equivalents | $88.5 | | Total principal debt outstanding | $1,014.9 | | First lien debt | $767.1 | | First lien net leverage | 2.7x | | Debt repaid in Q2 2025 | $23.4 | - Received a waiver from certain lenders of its **$900 million** five-year first lien term loan facility and repurchased **$14.0 million** of principal of its **6%** Senior Secured Convertible Notes due 2027 for **$15.0 million** in cash, financed by a delayed draw term loan[10](index=10&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) [Second Half 2025 Business Outlook](index=2&type=section&id=3.1.%20Second%20Half%202025%20Business%20Outlook) Gannett projects H2 2025 total digital revenues to grow **3%-5%** (same-store), total revenues to decline low single digits, and significant YoY growth in Adjusted EBITDA and cash flows Second Half 2025 Business Outlook (YoY Growth) | Metric | Expected Growth | | :-------------------------------- | :-------------- | | Total digital revenues (same store) | ~3%-5% | | Total revenues (same store) | Low single digits decline | | Net income attributable to Gannett | Decline | | Total Adjusted EBITDA | Growth | | Cash provided by operating activities | >70% Growth | | Free cash flow | >100% Growth | [Full Year 2025 Business Outlook](index=2&type=section&id=3.2.%20Full%20Year%202025%20Business%20Outlook) Gannett's FY2025 outlook projects flat same-store digital revenues (over **50%** of total by 2026), low-mid single-digit total revenue decline, and improved net income, Adjusted EBITDA, and strong cash flow growth Full Year 2025 Business Outlook (YoY Growth) | Metric | Expected Growth | | :-------------------------------- | :-------------- | | Total digital revenues (same store) | Flat | | Total revenues (same store) | Low-mid single digits decline | | Net income attributable to Gannett | Improvement | | Total Adjusted EBITDA | Growth | | Cash provided by operating activities | >30% Growth | | Free cash flow | >30% Growth | - Total digital revenues are expected to make up **50%+ of total revenues during 2026**[10](index=10&type=chunk) - Total revenues are expected to be down in the low-mid single digits on a same store basis leading to flat same store revenue trends in early 2026[10](index=10&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [Earnings Conference Call](index=3&type=section&id=Earnings%20Conference%20Call) Management hosted an earnings conference call on July 31, 2025, at 8:30 A.M. ET to discuss Q2 results, with webcast and replay details available [About Gannett](index=3&type=section&id=About%20Gannett) Gannett (NYSE: GCI) is a diversified media company empowering communities through journalism, local content, and digital experiences via USA TODAY NETWORK, Newsquest, and LocaliQ - Gannett Co., Inc. (NYSE: GCI) is a diversified media company with national and local reach, focused on empowering and enriching communities[13](index=13&type=chunk) - Key brands include the USA TODAY NETWORK (USA TODAY and local media organizations in the U.S.) and Newsquest (wholly-owned subsidiary in the U.K.)[13](index=13&type=chunk) - LocaliQ, its digital marketing solutions brand, supports small and medium-sized businesses with innovative digital marketing products and solutions[13](index=13&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section warns that the press release contains forward-looking statements, subject to risks and uncertainties, and advises readers to consult SEC filings for detailed risk factors - The press release contains forward-looking statements regarding business outlook, digital revenue growth, debt repayment, cost reductions, AI initiatives, and financial performance[14](index=14&type=chunk) - These statements are based on current expectations and beliefs, subject to risks and uncertainties that could cause actual results to differ materially[16](index=16&type=chunk) - Readers should not place undue reliance on forward-looking statements and should refer to the Company's SEC filings (10-K, 10-Q) for detailed risk factors[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Gannett's total assets were **$2,010.2 million** (slight decrease), total liabilities **$1,773.6 million** (decrease), and total equity **$236.6 million** (significant increase) Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $88,542 | $106,299 | $(17,757) | | Total current assets | $392,840 | $425,895 | $(33,055) | | Total assets | $2,010,187 | $2,040,147 | $(29,960) | | Total current liabilities | $540,953 | $545,602 | $(4,649) | | Long-term debt | $681,352 | $755,754 | $(74,402) | | Convertible debt | $238,219 | $249,757 | $(11,538) | | Total liabilities | $1,773,598 | $1,887,513 | $(113,915) | | Total equity | $236,589 | $152,634 | $83,955 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2025 total revenues were **$584.9 million** (down YoY), with a **$78.4 million** net income (up significantly YoY) and diluted EPS of **$0.42** Condensed Consolidated Statements of Operations (Selected Items, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Digital revenues | $265,435 | $278,378 | (4.6)% | | Print and commercial revenues | $319,426 | $361,462 | (11.6)% | | Total revenues | $584,861 | $639,840 | (8.6)% | | Operating costs | $359,448 | $391,474 | (8.3)% | | Selling, general and administrative expenses | $164,097 | $177,906 | (7.7)% | | Loss before income taxes | $(9,074) | $(13,086) | 30.6% | | Benefit for income taxes | $(87,472) | $(26,803) | 226.3% | | Net income attributable to Gannett | $78,391 | $13,748 | 470.2% | | Diluted EPS | $0.42 | $0.09 | 366.7% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) H1 2025 operating cash flow was **$55.9 million** (slight decrease), investing activities generated **$27.8 million** (significant improvement), and financing activities used **$102.2 million** due to higher debt repayments Condensed Consolidated Statements of Cash Flows (Selected Items, in thousands) | Metric | H1 2025 | H1 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net income (loss) | $71,065 | $(71,051) | $142,116 | | Cash provided by operating activities | $55,863 | $57,576 | $(1,713) | | Cash provided by (used for) investing activities | $27,804 | $(16,266) | $44,070 | | Cash used for financing activities | $(102,163) | $(43,524) | $(58,639) | | Decrease in cash, cash equivalents and restricted cash | $(20,016) | $(1,818) | $(18,198) | | Cash, cash equivalents and restricted cash at end of period | $96,165 | $108,794 | $(12,629) | - Proceeds from sale of real estate and other assets significantly increased to **$50.2 million in H1 2025** from **$6.1 million in H1 2024**[20](index=20&type=chunk) - Repayments of long-term debt increased to **$97.9 million in H1 2025** from **$39.6 million in H1 2024**[20](index=20&type=chunk) [Segment Information](index=8&type=section&id=SEGMENT%20INFORMATION) In Q2 2025, Domestic Gannett Media revenues decreased to **$439.3 million** with declining EBITDA, Newsquest revenues were stable at **$61.3 million** with increased EBITDA, and DMS revenues slightly decreased to **$117.5 million** Segment Revenues and Adjusted EBITDA (Q2 2025 vs. Q2 2024, in thousands) | Segment | Q2 2025 Revenues | Q2 2024 Revenues | % Change Revenues | Q2 2025 Adj. EBITDA | Q2 2024 Adj. EBITDA | % Change Adj. EBITDA | | :------------------------ | :--------------- | :--------------- | :---------------- | :------------------ | :------------------ | :------------------- | | Domestic Gannett Media | $439,299 | $491,909 | (10.7)% | $43,224 | $52,898 | (18.3)% | | Newsquest | $61,318 | $61,252 | 0.1% | $14,894 | $14,138 | 5.3% | | Digital Marketing Solutions | $117,478 | $123,798 | (5.1)% | $11,498 | $11,773 | (2.3)% | Segment Adjusted EBITDA Margin (Q2 2025 vs. Q2 2024) | Segment | Q2 2025 Margin | Q2 2024 Margin | Change (bps) | | :------------------------ | :------------- | :------------- | :----------- | | Domestic Gannett Media | 9.8% | 10.8% | (100) | | Newsquest | 24.3% | 23.1% | 120 | | Digital Marketing Solutions | 9.8% | 9.5% | 30 | [Non-GAAP Financial Information](index=9&type=section&id=USE%20OF%20NON-GAAP%20INFORMATION) [Use of Non-GAAP Information](index=9&type=section&id=6.1.%20Use%20of%20Non-GAAP%20Information) Gannett uses non-GAAP measures (Adjusted EBITDA, net income, free cash flow, same-store revenues) to supplement GAAP, acknowledging their limitations and non-comparability to other companies' metrics - Non-GAAP measures (Total Adjusted EBITDA, Adjusted net income, Free cash flow, Same store revenues) are used to supplement GAAP information, providing insight into day-to-day performance and core expenses[22](index=22&type=chunk)[23](index=23&type=chunk) - These measures are not GAAP and should not be considered in isolation or as alternatives to GAAP measures; they have limitations, such as excluding cash interest, income tax, and asset impairment charges[25](index=25&type=chunk)[27](index=27&type=chunk) - The company does not reconcile forward-looking non-GAAP measures to GAAP due to unreasonable efforts required for estimation and quantification of future GAAP components[28](index=28&type=chunk) [Total Adjusted EBITDA and Net Income Reconciliation](index=11&type=section&id=TOTAL%20ADJUSTED%20EBITDA%2C%20NET%20INCOME%20%28LOSS%29%20ATTRIBUTABLE%20TO%20GANNETT%2C%20NET%20INCOME%20%28LOSS%29%20ATTRIBUTABLE%20TO%20GANNETT%20MARGIN%20AND%20TOTAL%20ADJUSTED%20EBITDA%20MARGIN) Q2 2025 Total Adjusted EBITDA was **$64.2 million** (down YoY) with an **11.0%** margin, while net income attributable to Gannett significantly increased to **$78.4 million** Total Adjusted EBITDA and Net Income Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Segment Adjusted EBITDA | $69,616 | $78,809 | (11.7)% | | Corporate | $(5,379) | $(4,278) | (25.7)% | | Total Adjusted EBITDA | $64,237 | $74,531 | (13.8)% | | Net income attributable to Gannett | $78,391 | $13,748 | 470.2% | | Net income attributable to Gannett margin | 13.4% | 2.1% | +1130 bps | | Total Adjusted EBITDA margin | 11.0% | 11.6% | (60) bps | [Adjusted Net Income Attributable to Gannett Reconciliation](index=12&type=section&id=ADJUSTED%20NET%20INCOME%20%28LOSS%29%20ATTRIBUTABLE%20TO%20GANNETT) Q2 2025 Adjusted net income attributable to Gannett was **$84.5 million**, a substantial increase from **$29.1 million** in Q2 2024, reflecting adjustments for debt extinguishment, reorganization, and asset impairments Adjusted Net Income Attributable to Gannett Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Net income attributable to Gannett | $78,391 | $13,748 | 470.2% | | Loss on early extinguishment of debt | $183 | $87 | 110.3% | | Integration and reorganization costs | $12,318 | $19,775 | (37.7)% | | Third-party debt expenses and acquisition costs | $1,165 | $248 | 370.0% | | Asset impairments | $181 | $0 | - | | (Gain) loss on sale or disposal of assets, net | $(1,584) | $236 | (771.2)% | | Other items | $(4,137) | $7 | (59,199.9)% | | Tax impact of above items | $(2,055) | $(4,972) | 58.7% | | Adjusted net income attributable to Gannett | $84,462 | $29,129 | 190.0% | [Free Cash Flow Reconciliation](index=13&type=section&id=FREE%20CASH%20FLOW) Q2 2025 free cash flow was **$17.6 million**, a decrease from **$25.4 million** in Q2 2024, primarily due to increased capital expenditures of **$15.1 million** Free Cash Flow Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Cash provided by operating activities (GAAP) | $32,555 | $35,125 | (7.3)% | | Capital expenditures | $(15,058) | $(9,726) | (54.8)% | | Third-party debt expenses | $99 | $0 | - | | Free cash flow (non-GAAP) | $17,596 | $25,399 | (30.7)% | - Free cash flow was negatively impacted by interest paid (**$32.2M in Q2 2025** vs **$32.1M in Q2 2024**), integration and reorganization costs (**$7.9M** vs **$10.3M**), and other costs (**$3.3M** vs **$3.8M**)[31](index=31&type=chunk) [Same Store Revenues Reconciliation](index=14&type=section&id=SAME%20STORE%20REVENUES%20-%20CONSOLIDATED%20%26%20DIGITAL) Q2 2025 total same-store revenues decreased **6.4%** to **$579.3 million** (improved from Q1), while digital same-store revenues decreased **2.8%** to **$262.1 million** Same Store Total Revenues Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------- | :------ | :------ | :------- | | Total revenues | $584,861 | $639,840 | (8.6)% | | Currency impact | $(3,113) | $0 | - | | Exited operations | $(2,478) | $(20,690) | 88.0% | | Same store total revenues | $579,270 | $619,150 | (6.4)% | Same Store Digital Revenues Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------- | :------ | :------ | :------- | | Digital revenues | $265,435 | $278,378 | (4.6)% | | Currency impact | $(877) | $0 | - | | Exited operations | $(2,478) | $(8,732) | 71.7% | | Same store digital revenues | $262,080 | $269,646 | (2.8)% | [Key Performance Indicators (KPIs)](index=15&type=section&id=KEY%20PERFORMANCE%20INDICATORS) [KPI Definitions](index=15&type=section&id=7.1.%20KPI%20Definitions) KPIs are quantifiable metrics used by Gannett to gauge strategic, financial, and operational achievements, including definitions for Digital-only ARPU and Core platform ARPU - KPIs are quantifiable measurements used to gauge performance and track trends across segments[33](index=33&type=chunk)[35](index=35&type=chunk) - Digital-only ARPU = digital-only subscription average monthly revenues / average digital-only paid subscriptions[34](index=34&type=chunk) - Core platform ARPU = core platform average monthly revenues / average monthly customer count; core platform revenues are from proprietary digital marketing services platform[34](index=34&type=chunk) [KPI Data](index=16&type=section&id=7.2.%20KPI%20Data) Q2 2025 Digital-only ARPU increased **2%** to **$7.79**, but subscriptions decreased **15%** to **1,723 thousand**; DMS core platform revenues decreased **5%** to **$116.9 million**, with ARPU up **2%** Key Performance Indicators (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :-------------------------------- | :------ | :------ | :----- | :------- | | **Digital-only ARPU:** | | | | | | Domestic Gannett Media | $7.92 | $7.70 | $0.22 | 3% | | Newsquest | $6.01 | $5.94 | $0.07 | 1% | | Total Gannett | $7.79 | $7.62 | $0.17 | 2% | | **DMS:** | | | | | | Core platform revenues (in thousands) | $116,927 | $122,843 | $(5,916) | (5)% | | Core platform ARPU | $2,830 | $2,777 | $53 | 2% | | Core platform average customer count (in thousands) | 13.8 | 14.7 | (0.9) | (6)% | | **Digital-only paid subscriptions (in thousands):** | | | | | | Domestic Gannett Media | 1,597 | 1,938 | (341) | (18)% | | Newsquest | 126 | 96 | 30 | 31% | | Total Gannett | 1,723 | 2,034 | (311) | (15)% |

Group 1 - Gannett (NYSE: GCI) is viewed as a deeply discounted turnaround opportunity, with the market pricing in failure while overlooking execution potential [1] - If management successfully continues deleveraging and meets digital revenue targets, there is a credible path for a 50-70% re-rating through modest multiple expansion [1] - The analysis emphasizes the importance of financial trends, profit growth, and institutional capital accumulation in identifying high-growth, underanalyzed companies [1] Group 2 - The research approach integrates both fundamental and technical analysis, focusing on indicators such as relative strength, trading volume shifts, and accelerating profit growth [1] - The goal is to identify strong growth stocks before they gain widespread attention, enhancing market understanding and providing actionable investment insights [1]