Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Revenue Performance - Total revenues for Q3 2025 were $560.8 million, a decrease of 8.4% compared to $612.4 million in Q3 2024[13] - Digital revenue for Q3 2025 was $262.7 million, down 5.3% from $277.4 million in Q3 2024[13] - Print and commercial revenue decreased by 11.1% to $298.1 million in Q3 2025 from $335.1 million in Q3 2024[13] - For the nine months ended September 30, 2025, total revenues were $1.72 billion, a decrease from $1.89 billion in the same period of 2024, reflecting a decline of 9.0%[35] - International operations contributed 12.9% of total revenues for the three months ended September 30, 2025, up from 11.4% in the same period of 2024[34] - Segment revenues for Domestic Gannett Media were $417.1 million for the three months ended September 30, 2025, down from $468.5 million in the same period of 2024, a decrease of about 10.9%[119] - Digital Marketing Solutions generated $114.4 million in revenues for the three months ended September 30, 2025, compared to $119.9 million in the same period of 2024, reflecting a decline of approximately 4.2%[119] Net Loss and Income - Net loss attributable to Gannett for Q3 2025 was $39.2 million, compared to a net loss of $19.7 million in Q3 2024[13] - For the nine months ended September 30, 2025, Gannett achieved a net income of $31.81 million, compared to a net loss of $90.71 million for the same period in 2024[18] - The company experienced a net loss attributable to Gannett of $39,249,000 for Q3 2025, compared to a net loss of $19,653,000 in Q3 2024[121] - Basic loss per share attributable to Gannett for the three months ended September 30, 2025, was $(0.27), compared to $(0.14) in the same period of 2024[96] Operating Costs - Operating costs for Q3 2025 were $352.3 million, a decrease of 6.3% from $375.9 million in Q3 2024[13] - Total operating costs decreased by $26.4 million (9%) and $98.6 million (11%) for the three and nine months ended September 30, 2025, reflecting lower costs in newsprint, distribution, and compensation[180] - Selling, general and administrative expenses decreased by $13.5 million (10%) and $27.9 million (7%) for the three and nine months ended September 30, 2025, primarily due to a decline in payroll expenses[186] Cash and Assets - Cash provided by operating activities for the nine months ended September 30, 2025, was $71.0 million, down from $91.3 million in the same period of 2024[14] - The company reported a decrease in cash and cash equivalents to $75.2 million as of September 30, 2025, from $106.3 million at the end of 2024[12] - Total assets decreased to $1.92 billion as of September 30, 2025, from $2.04 billion at the end of 2024[12] - Total liabilities decreased to $1.73 billion as of September 30, 2025, from $1.89 billion at the end of 2024[12] Debt and Interest - The total debt as of September 30, 2025, was $996.4 million, down from $1,111.8 million as of December 31, 2024, indicating a reduction of approximately 10.4%[47] - Interest expense for the nine months ended September 30, 2025, was $56.8 million, compared to $26.9 million for the same period in 2024, reflecting a 111% increase[55] - The effective interest rate for the 2029 Term Loan Facility as of September 30, 2025, was 9.9%[56] Segment Performance - Domestic Gannett Media segment reported adjusted EBITDA of $35,362,000 for Q3 2025, down 23.7% from $46,301,000 in Q3 2024[121] - Digital revenues for the three months ended September 30, 2025, decreased by $5,511, or 5%, compared to the same period in 2024[199] - Digital advertising revenues increased by 3% to $73.0 million for the three months ended September 30, 2025, compared to $71.2 million in 2024, driven by an increase in national revenues[173] Other Comprehensive Income and Expenses - Other comprehensive income for the nine months ended September 30, 2025, was $8.47 million, while the prior year reported $6.93 million[18] - Share-based compensation expense for the nine months ended September 30, 2025, totaled $6.84 million, compared to $9.24 million in the same period of 2024[18] - The total compensation cost not yet recognized related to non-vested awards as of September 30, 2025, was $18.0 million, expected to be recognized over a weighted-average period of 2.4 years[98] Legal and Regulatory Matters - The Company filed a civil action against Google seeking injunctive relief and damages for anticompetitive practices in advertising technology markets[107] - The Company plans to continue engaging experts for the lawsuit against Google, although it does not expect significant costs associated with this action[107] Strategic Focus - Gannett operates in three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions, focusing on digital-first strategies and audience engagement[20][21] - The Domestic Gannett Media segment is focusing on optimizing print operations due to declining print audience, while aiming to grow a digitally-oriented audience[131]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $560.8 million, a decrease of 8.4% year-over-year, or 6.8% on a same-store basis [27] - Adjusted EBITDA was $57.2 million, representing a 10.2% margin, impacted by revenue timing shifts and incremental expenses [28] - Total digital revenues were $262.7 million, a decrease of 5.3% year-over-year, representing 47% of total company revenue [29] Business Line Data and Key Metrics Changes - Digital-only subscription revenues totaled $43.7 million, reflecting sequential growth of 2.4% [29] - Digital-only ARPU reached a record high of $8.80, up approximately 8% year-over-year [30] - Core platform revenue in the Digital Marketing Solutions (DMS) segment was $114 million, with segment adjusted EBITDA at $9.8 million [32] Market Data and Key Metrics Changes - The company achieved an average of 187 million monthly unique visitors, growing more than 3% compared to Q2 [11] - Digital advertising revenues increased by 2.9%, driven by improved client retention and a large audience base [29] - The company anticipates stronger results in Q4, fueled by strong advertiser response in high engagement verticals [29] Company Strategy and Development Direction - The company is focused on expanding its digital audience and maximizing monetization across the customer journey [11] - A $100 million cost reduction program is fully implemented, expected to drive significant year-over-year growth in adjusted EBITDA in Q4 [5][28] - The company is optimistic about the potential of AI licensing deals, including partnerships with Microsoft and Perplexity [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong Q4, driven by the realization of delayed revenues and the full benefit of cost reduction measures [28][80] - The recent ruling in the Google antitrust lawsuit is seen as a significant win, establishing liability and moving the case towards damages [40][80] - The company expects to achieve full-year growth in adjusted EBITDA and a 30% increase in free cash flow [33] Other Important Information - Total debt fell below $1 billion for the first time since the merger in 2019, marking a significant milestone [5][33] - The company blocked 75 million AI bots in September, primarily from OpenAI, indicating the value of its content [21][63] Q&A Session Summary Question: Can you share the recent developments in the Google antitrust lawsuit? - Management highlighted a positive ruling from Judge Castell, establishing liability for Google and focusing the case on damages [40] Question: What is driving the shift of large revenue drivers from Q3 to Q4? - Management clarified that the shift was primarily due to timing related to product launches and advertising deals, not broader trends [42] Question: Can you elaborate on the incremental expenses incurred during Q3? - Incremental expenses were mainly tied to headcount reductions and associated benefits, which are not expected to continue in Q4 [44] Question: How do you see the digital revenue mix evolving into 2026? - The company expects digital revenue to surpass 50% in 2026, supported by diverse revenue streams and strong audience engagement [48] Question: Can you elaborate on the AI partnerships and their monetization? - Management discussed the importance of high-quality content and the evolving monetization models with AI partners, emphasizing the need for fair compensation [51] Question: What is the current status of traffic from AI platforms? - Management noted that there is currently no meaningful traffic from AI search companies, highlighting the importance of licensing deals for monetization [60]

Financial Highlights - Total digital revenues reached $262.7 million, accounting for 47% of total company revenues[14, 18, 20] - Digital advertising revenues experienced year-over-year growth for the second consecutive quarter[10] - Total debt paydown amounted to $18.5 million, bringing total debt under $1 billion[10, 16] - Cash and cash equivalents totaled $75.2 million[14, 16] - The company achieved a First Lien Net Leverage of 2.69x[14, 16] Key Performance Indicators - Average monthly unique visitors reached 187 million in Q3 2025[10, 14, 42, 47, 51] - Digital-only paid subscriptions reached 1.6 million, marking an all-time high[14] - Core platform average customer count stood at 13400[14, 65] - Core platform ARPU was $2828[50, 65] Revenue Performance - Digital Marketing Solutions segment reported core platform revenues of $114 million[65] - Same store revenues decreased by 6.8% compared to Q3 2024[22] Business Outlook - The company expects total digital revenues to be down in the low single digits on a same store basis for full year 2025[37]

Financial Performance - Total revenues for Q3 2025 were $560.8 million, a decrease of 8.4% year-over-year; same store revenues decreased by 6.8%[6] - Total revenues for Q3 2025 decreased to $560.8 million, down 8.4% from $612.4 million in Q3 2024[17] - Same store total revenues decreased by 6.8% to $556,017,000 in Q3 2025 from $596,409,000 in Q3 2024[30] - Net loss attributable to Gannett was $39.2 million, with total Adjusted EBITDA of $57.2 million[9] - Net loss attributable to Gannett for Q3 2025 was $39.2 million, compared to a net loss of $19.7 million in Q3 2024[17] - Total Adjusted EBITDA for Q3 2025 was $57,173,000, a decrease from $62,879,000 in Q3 2024, reflecting a margin of 10.2% compared to 10.3% in the previous year[27] - Adjusted net loss attributable to Gannett for Q3 2025 was $31,021,000, significantly higher than the loss of $6,054,000 in Q3 2024[28] - Free cash flow for Q3 2025 was $4,880,000, down from $19,762,000 in Q3 2024, impacted by $18.9 million in interest paid[29] Digital Revenue - Digital revenues totaled $262.7 million, representing 46.9% of total revenues[6] - Digital segment revenues were $262.7 million, a decline of 5.3% compared to $277.4 million in the same period last year[17] - The company expects total digital revenues to decline in the low single digits on a same store basis for the full year 2025, but to exceed 50% of total revenues in 2026[11] - Fourth quarter total digital revenues are anticipated to grow in the low single digits on a same store basis[11] - Digital-only average revenue per user (ARPU) increased by 10% to $9.03 in Q3 2025 from $8.24 in Q3 2024[34] - Domestic Gannett Media digital-only paid subscriptions fell by 26% to 1,452,000 in Q3 2025 from 1,953,000 in Q3 2024[34] Cash Flow and Liquidity - Cash provided by operating activities was $15.2 million, and free cash flow was $4.9 million[6] - Cash provided by operating activities for the nine months ended September 30, 2025, was $71.0 million, a decrease from $91.3 million in the same period of 2024[18] - The company reported a decrease in cash and cash equivalents to $75.2 million as of September 30, 2025, from $106.3 million at the end of 2024[16] - Cash and cash equivalents are expected to reach approximately $100.0 million by year-end 2025[11] Debt and Liabilities - The company achieved a significant milestone with total debt falling below $1.0 billion, totaling $996.4 million as of September 30, 2025[3][11] - Total liabilities decreased to $1.73 billion, down from $1.89 billion at the end of 2024[16] - Long-term debt decreased to $663.9 million as of September 30, 2025, down from $755.8 million at the end of 2024[16] Operational Metrics - Average monthly unique visitors reached 187 million, with 128 million from the U.S. media network and 59 million from U.K. digital properties[5] - Print and commercial revenues fell to $298.1 million, down 11.1% from $335.1 million in Q3 2024[17] - Core platform revenues decreased by 4% to $113,959,000 in Q3 2025 from $119,158,000 in Q3 2024[34] - Integration and reorganization costs for Q3 2025 were $15,708,000, slightly down from $17,307,000 in Q3 2024[27] Strategic Initiatives - Gannett announced a new AI licensing agreement with Microsoft for the Publisher Content Marketplace[3] - The outlook for 2025 includes non-GAAP measures such as Same store revenues and Total Adjusted EBITDA, factoring in the sale of the Austin-American Statesman[26]

Core Points - Gannett Co., Inc. will release its third quarter 2025 financial results on October 30, 2025, before the New York Stock Exchange opens [1] - Management will host a conference call on the same day at 8:30 A.M. Eastern Time to discuss the financial and operating results for the period [1] - The earnings release will be available in the Investor Relations section of Gannett's website [1]

Core Points - Gannett Co., Inc. will release its third quarter 2025 financial results on October 30, 2025, before the New York Stock Exchange opens [1] - Management will host a conference call on the same day at 8:30 A.M. Eastern Time to discuss the financial and operating results [1] - The earnings release will be available on the Investor Relations section of Gannett's website [1]

Core Viewpoint - Major news publishers are facing lawsuits from Rich Media Club LLC, which claims that they are infringing on its patents related to online advertising tools [1][2][15]. Group 1: Legal Context - Rich Media Club has filed lawsuits against prominent publishers including Comcast, Guardian Media Group, Gannett, News Corp's UK publishing arm, and MediaNews Group [1]. - The lawsuits come at a time when web publishers are experiencing declining search traffic and a volatile advertising market, with potential legal costs exceeding $1 million for each publisher [2]. - Legal experts suggest that these lawsuits exhibit characteristics of a "patent troll," targeting end users rather than technology companies [3][4]. Group 2: Rich Media Club's Background - Rich Media Club was established in 2002 as an IP holding company for patents related to its adtech arm, RealVu, which focuses on ad viewability technologies [11]. - The company holds several US patents for ad viewability solutions, including "ad refreshing" and "lazy loading," which are commonly used by publishers to enhance user experience [12][14]. Group 3: Patent Enforcement and Legal Strategy - Rich Media Club has initiated a patent enforcement campaign since 2022, previously suing Duration Media for similar patent infringements [17]. - The company is seeking damages from the publishers, claiming lost profits or a "reasonable royalty" to be determined at trial [16]. - Rich Media Club prefers to enter licensing agreements rather than pursue litigation, although it has indicated a willingness to file further lawsuits if necessary [22]. Group 4: Industry Implications - The current trend of elevated refusals to institute inter partes reviews (IPRs) by the USPTO may lead to an increase in patent troll cases, as companies find it more challenging to contest patents [20][21].

Core Insights - Gannett Co., Inc. has launched DeeperDive, an industry-first Generative AI answer engine developed by Taboola, fully implemented on USA TODAY, reaching over 195 million monthly unique visitors [1][2][3] - The DeeperDive technology aims to enhance user engagement by providing clear, AI-generated responses enriched with relevant stories and context, addressing the challenges posed by traditional AI search engines [2][3] - This partnership is expected to create new revenue channels through stronger advertising CPMs and increased reader engagement, with plans to integrate purchasing opportunities tailored to user interests [2][3] Company Overview - Gannett Co., Inc. is a diversified media company focused on empowering communities through trusted journalism and digital marketing solutions, reaching approximately 140 million monthly unique visitors [5][7] - USA TODAY, a cornerstone of the national media landscape since 1982, serves as the foundation for Gannett's newsroom network, delivering high-quality content to a significant audience [6][7] - Taboola, the partner behind DeeperDive, provides performance advertising technology that reaches approximately 600 million daily active users, enabling businesses to achieve measurable outcomes [8]

Core Insights - Gannett Co., Inc. has launched DeeperDive, an industry-first Generative AI answer engine developed by Taboola, now fully implemented on USA TODAY, reaching over 195 million monthly unique visitors [1][2] - DeeperDive aims to enhance user engagement by providing AI-generated responses enriched with relevant stories and context, addressing the challenges posed by traditional AI search engines [2][3] - The partnership with Taboola is expected to drive stronger advertising CPMs and create new revenue channels through curated ads and increased reader engagement [2][3] Company Overview - Gannett Co., Inc. is a diversified media company focused on empowering communities through trusted journalism and digital marketing solutions, reaching approximately 140 million monthly unique visitors [5][7] - USA TODAY, a cornerstone of the national media landscape since 1982, serves as the foundation for Gannett's newsroom network, delivering high-quality content to an audience of about 73 million unique visitors each month [6][7] - Taboola specializes in performance advertising technology, reaching approximately 600 million daily active users and partnering with major publishers to enhance audience engagement and revenue [8]