Q2 2025 Performance Highlights - The company reached 181 million average monthly unique visitors[9, 13] - Digital advertising growth improved to +4% year-over-year[10, 46] - Total debt paydown of $23.4 million[10, 13, 16] and ~$100 million year-to-date[13, 16] - The company has $88.5 million in cash and cash equivalents[13, 16, 61] Financial Results - Total revenues were $584.9 million[22] - Total digital revenues reached $265.4 million, accounting for 45% of total revenues[13, 18, 23, 49] - Free cash flow was $17.6 million[32, 99] - Total Adjusted EBITDA was $64.2 million[29] with a margin of 11%[30, 97] Digital Marketing Solutions - Core platform revenues for Digital Marketing Solutions were $116.9 million[13, 66, 69] - Core platform ARPU for Digital Marketing Solutions reached $2,830[50, 66, 69] - Core platform average customer count for Digital Marketing Solutions was 13800[13, 66, 69] 2025 Business Outlook - Total digital revenues are expected to grow approximately 3%-5% on a same-store basis in the second half of 2025[38] - The company expects growth in excess of 30% versus the prior year in cash provided by operating activities[38] - Free cash flow is expected to grow in excess of 30% versus the prior year[38]

[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]

Financial Performance - Total revenues for Q1 2025 were $571.6 million, a decrease of 10.1% compared to $635.8 million in Q1 2024[13] - Operating income for Q1 2025 was $9.8 million, a significant improvement from an operating loss of $49.9 million in Q1 2024[13] - Net loss attributable to Gannett was $7.3 million, compared to a net loss of $84.8 million in the prior year, reflecting a 91.4% reduction in losses[13] - Adjusted EBITDA for the three months ended March 31, 2025, was $50.509 million, down from $57.589 million in the same period of 2024, representing a decline of 12.1%[103][104] - The company recognized a pre-tax gain of approximately $20.8 million from the sale of the Statesman to Hearst Corporation on February 28, 2025[105] Revenue Breakdown - Digital revenues decreased to $250.4 million, down 6.4% from $267.5 million in the same period last year[13] - Print and commercial revenues fell by 12.8% to $321.2 million from $368.3 million year-over-year[13] - Digital revenues accounted for $250.394 million, which is 43.8% of total revenues for Q1 2025, compared to $267.499 million or 42.0% in Q1 2024[28][29] - Revenues generated from international operations comprised 11.5% of total revenues for Q1 2025, compared to 11.0% in Q1 2024[28][31] - Digital marketing solutions brand, LocaliQ, contributed $108.709 million in revenue for Q1 2025, down from $117.045 million in Q1 2024[28][29] Cash Flow and Assets - Cash provided by operating activities was $23.3 million, slightly up from $22.5 million in Q1 2024[14] - The company reported a decrease in cash and cash equivalents to $85.9 million from $106.3 million at the end of 2024[11] - Total assets decreased to $1.95 billion as of March 31, 2025, down from $2.04 billion at the end of 2024[11] - Total liabilities decreased to $1.80 billion, down from $1.89 billion at the end of 2024[11] - The company’s total equity decreased to $149.6 million as of March 31, 2025, down from $152.6 million at the end of 2024[11] Debt and Interest - Total debt as of March 31, 2025, was $1.008 billion, down from $1.080 billion at the end of 2024, representing a decrease of 6.7%[41] - Interest expense for the three months ended March 31, 2025, was $20.1 million, significantly higher than $9.3 million in the prior year, marking a 116.2% increase[47] - The effective interest rate for the 2029 Term Loan Facility was 10.1% as of March 31, 2025[48] - The Company recognized a loss of $1.3 million on early extinguishment of debt due to prepayments on the 2029 Term Loan Facility[47] Operational Costs - Integration and reorganization costs for the three months ended March 31, 2025, amounted to $9.498 million, compared to $17.881 million in the same period of 2024[103][104] - The company recorded an impairment charge of approximately $1.9 million for the three months ended March 31, 2025, compared to $46.0 million in the prior year[118][119] - Corporate and other operating expenses decreased by 62% to $26.5 million for the three months ended March 31, 2025, compared to $70.0 million in the same period of 2024[191] Shareholder Information - The company did not repurchase any shares of Common Stock under the Stock Repurchase Program during the three months ended March 31, 2025, leaving approximately $96.9 million remaining authorized for repurchase[89] - The company does not currently pay a quarterly dividend and has restrictions on dividend payments due to the terms of its indebtedness[207] Taxation - The effective tax rate for the three months ended March 31, 2025, was 48.2%, compared to an effective tax rate of -13.5% for the same period in 2024[76] - The total amount of unrecognized tax benefits as of March 31, 2025, was approximately $43.6 million, an increase from $41.7 million as of December 31, 2024[79] Legal Proceedings - The company is involved in ongoing legal proceedings, including a civil action against Google for anticompetitive practices, but does not expect these to materially affect its financial position[95][96] Digital Strategy - The company is focused on a digital-first strategy to drive audience growth and engagement while diversifying revenue streams through its digital marketing solutions brand, LocaliQ[113]

Financial Data and Key Metrics Changes - Total operating revenues for Q1 were $571.6 million, a decrease of 10.1% year-over-year, or 7.7% on a same-store basis [31] - Adjusted EBITDA totaled $50.5 million, representing a margin of 8.8%, with a year-over-year decline in line with expectations [33] - The company reported a net loss of $7 million, an improvement of approximately $77 million compared to the previous year [35] - Free cash flow in Q1 totaled $10.2 million, growing 7.6%, with expectations for similar performance in Q2 [40][41] Business Line Data and Key Metrics Changes - Total digital revenues in Q1 were $250.4 million, down 6.4% year-over-year, representing approximately 44% of total revenues [36] - Digital-only subscription revenues exceeded $43 million, reflecting minor same-store growth, impacted by the sale of Austin and elevated customer churn [36] - Adjusted EBITDA for the Digital Marketing Solutions (DMS) segment totaled $8.5 million, with core platform revenue at $108.2 million [39] Market Data and Key Metrics Changes - The company experienced a slowdown in digital advertising trends, particularly in the UK market, affecting the NewsQuest segment [38] - The average monthly unique visitors reached 195 million, growing over 4% compared to the prior year [14] Company Strategy and Development Direction - The company aims to leverage its industry-leading scale and diverse digital businesses to capture long-term growth opportunities [11] - A key focus is on enhancing monetization opportunities through a unified content strategy and the launch of new platforms like Studio Nine [19] - The company is committed to reducing debt and improving its capital structure, with a target of repaying over $125 million in debt through various means [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year 2025 business outlook, citing improving revenue trends and operational efficiencies [56] - The recent DOJ ruling against Google is seen as a positive development that could lead to a more equitable digital advertising marketplace [12][46] - Management noted that Q1 results were viewed as an anomaly, with expectations for stabilization and growth in digital revenues moving forward [36][68] Other Important Information - The company has made several changes to streamline its executive leadership team, resulting in a more cohesive structure and significant cost savings [35] - The company is focused on enhancing customer experience across its product suite, particularly in the DMS segment [29] Q&A Session Summary Question: Impact of DOJ case against Google - Management believes the ruling sets the stage for a more favorable ad marketplace, potentially leading to higher revenue shares for publishers [46][49] Question: Adjustments to affiliate revenue business - The company is working with affiliate partners to navigate changes and reenergize revenue growth through existing content [50][51] Question: Confidence in 2025 guidance - Management reaffirmed confidence in guidance, citing improvements in retention and diversified revenue base [56][57] Question: Digital subscription revenue trends - On a same-store basis, there was some growth in digital subscriptions, but impacted by revenue reversals [72][74] Question: Tools to aggregate budgets onto the platform - The company is leveraging relationships with advertisers and building out first-party data solutions to drive up CPM [78][79] Question: Status of non-strategic asset sales - The company has largely completed its real estate sales and does not feel pressured to sell any strategic assets [81][83]

Financial Data and Key Metrics Changes - Total operating revenues for Q1 were $571.6 million, a decrease of 10.1% year-over-year, or 7.7% on a same-store basis [31] - Adjusted EBITDA totaled $50.5 million, representing a margin of 8.8%, with a year-over-year decline in line with expectations [33] - The company reported a net loss of $7 million, an improvement of approximately $77 million compared to the previous year [35] Business Line Data and Key Metrics Changes - Total digital revenues in Q1 were $250.4 million, down 6.4% year-over-year, representing approximately 44% of total revenues [36] - Digital-only subscription revenues exceeded $43 million, reflecting minor same-store growth, impacted by elevated customer churn [36] - Adjusted EBITDA for the Digital Marketing Solutions (DMS) segment totaled $8.5 million, with core platform revenue at $108.2 million [39] Market Data and Key Metrics Changes - The company experienced a slowdown in digital advertising trends, particularly in the UK market, affecting the NewsQuest segment [38] - The average monthly unique visitors reached 195 million, growing over 4% compared to the prior year [14] Company Strategy and Development Direction - The company aims to leverage its industry-leading scale and diverse digital businesses to capture long-term growth opportunities [11] - A key focus is on enhancing monetization opportunities through a unified content strategy and the launch of new platforms like Studio Nine [19] - The company is committed to reducing debt and improving its capital structure, with expectations to repay over $125 million in debt through various means [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for 2025, despite a challenging economic backdrop [6] - The recent DOJ ruling against Google is seen as a positive development that could lead to a more equitable digital advertising marketplace [12] - Management noted that Q1 results were viewed as an anomaly, with expectations for improved revenue trends in the second half of the year [66] Other Important Information - The company made significant leadership changes, including the appointment of a new CFO, to strengthen financial and operational performance [10] - The company is focused on enhancing customer experience and retention through product development and marketing initiatives [28] Q&A Session Summary Question: Impact of DOJ case against Google - Management believes the ruling sets the stage for a more favorable ad marketplace, potentially increasing revenue shares for publishers [46] Question: Adjustments to affiliate revenue business - The company is working with affiliate partners to navigate changes and reenergize revenue growth through existing content [50] Question: Confidence in 2025 guidance - Management reaffirmed confidence in guidance, citing improvements in retention and operational efficiencies [56] Question: Digital subscription revenue trends - On a same-store basis, there was some growth in digital subscriptions, but impacted by revenue reversals [74] Question: Tools to aggregate budgets onto the platform - The company is leveraging relationships with advertisers and building out first-party data solutions to drive up CPM [80] Question: Status of non-strategic asset sales - The company has largely worked through its real estate portfolio and does not feel pressured to sell assets that could negatively impact the business [83]

Financial Data and Key Metrics Changes - Total operating revenues for Q1 were $571.6 million, a decrease of 10.1% year-over-year, or 7.7% on a same-store basis [30] - Adjusted EBITDA totaled $50.5 million, representing a margin of 8.8%, with a year-over-year decline in line with expectations [31] - The company reported a net loss of $7 million in Q1, an improvement of approximately $77 million compared to the previous year [33] - Free cash flow in Q1 totaled $10.2 million, growing 7.6%, with expectations for similar performance in Q2 [38] Business Line Data and Key Metrics Changes - Total digital revenues in Q1 were $250.4 million, down 6.4% year-over-year, representing approximately 44% of total revenues [34] - Digital-only subscription revenues exceeded $43 million, reflecting minor same-store growth, impacted by elevated customer churn [34] - Adjusted EBITDA for the Digital Marketing Solutions (DMS) segment totaled $8.5 million, with core platform revenue at $108.2 million [37] Market Data and Key Metrics Changes - The company had 195 million average monthly unique visitors, growing over 4% compared to the prior year [14] - The UK market experienced a slowdown in digital advertising trends, reflective of the local economy [36] Company Strategy and Development Direction - The company aims to leverage its industry-leading scale and diverse digital businesses to drive long-term growth [11] - A key focus is on enhancing monetization opportunities through investments in digital initiatives and expanding first-party data [13] - The recent DOJ ruling against Google is seen as a potential catalyst for a more equitable digital advertising marketplace, benefiting the company [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 business outlook despite a challenging first quarter [7] - The company anticipates a marked improvement in top-line trends, particularly in digital revenue, as it moves past unique first-quarter challenges [6] - Management noted that the fundamentals of the business are improving, with stronger retention and a more diversified revenue base [56] Other Important Information - The company reduced its debt by approximately $75 million in Q1, strengthening its capital structure [8] - A leadership transition occurred with the appointment of Tricia Gosser as Chief Financial Officer [9] Q&A Session Summary Question: Impact of DOJ case against Google - Management believes the DOJ's win sets the stage for a more favorable ad marketplace, leading to greater transparency and higher revenue shares for publishers [44] Question: Adjustments to affiliate revenue business - The company is working with affiliate partners to navigate changes and reenergize revenue growth through leveraging existing content [50] Question: Confidence in 2025 guidance - Management remains confident in the guidance, citing improvements in fundamentals and operational efficiencies [56] Question: Digital subscription revenue trends - On a same-store basis, there was some growth in digital subscriptions, but impacted by higher revenue reversals [73] Question: Tools to aggregate budgets onto the platform - The company is leveraging relationships with advertisers and building out first-party data solutions to drive up CPM [79] Question: Status of non-strategic asset sales - The company has largely worked through its real estate portfolio and does not feel pressured to sell assets that could negatively impact the business [83]

Financial Performance Highlights - The company achieved a $77.4 million year-over-year improvement in free cash flow in Q1 2025[15] - Net income attributable to Gannett grew by 7.6% to $10.2 million in Q1 2025, compared to $9.5 million in Q1 2024[15] - Adjusted net loss attributable to Gannett improved by $23.4 million, from a loss of $36.4 million in Q1 2024 to a loss of $13.1 million in Q1 2025[18, 19] - Cash provided by operating activities grew by 3.8% to $23.3 million in Q1 2025, compared to $22.5 million in Q1 2024[15] - Total revenues were $571.6 million in Q1 2025[39] - Adjusted EBITDA was $50.5 million in Q1 2025[45] Digital Revenue & Audience - Total digital revenues reached $250.4 million in Q1 2025, accounting for 44% of total revenues[29, 31] - The company reached 195 million average monthly unique visitors in Q1 2025[12, 34] - Digital-only subscription revenues were $43.3 million in Q1 2025, representing 8% of total revenues[29] Debt & Capital Structure - Total debt paydown was $74.5 million in Q1 2025[12, 34] - Cash and cash equivalents stood at $85.9 million[34, 37] - First Lien Net Leverage was 2.6x[34, 37]

Financial Performance - Total revenues for Q1 2025 were $571.6 million, a decrease of 10.1% year-over-year, with same store revenues down 7.7%[6] - Total revenues for Q1 2025 were $571.573 million, a decrease of 10.1% from $635.761 million in Q1 2024[16] - For the three months ended March 31, 2025, Gannett reported a consolidated total revenue of $571.573 million, a decrease of 10.1% compared to $635.761 million in the same period of 2024[31] - Digital revenues totaled $250.4 million, with digital advertising revenues at $83.4 million and digital-only subscription revenues at $43.3 million[6] - Digital revenues decreased to $250.394 million, down 6.5% from $267.499 million year-over-year[16] - Digital revenues for Q1 2025 were $250.394 million, down 6.4% from $267.499 million in Q1 2024[31] - Print and commercial revenues fell to $321.179 million, a decline of 12.8% compared to $368.262 million in the same period last year[16] Profitability and Loss - Net loss attributable to Gannett improved by $77.4 million to $7.3 million in Q1 2025[6] - The net loss attributable to Gannett for Q1 2025 was $7.333 million, an improvement from a net loss of $84.768 million in Q1 2024[29] - Operating income for Q1 2025 was $9.778 million, a significant improvement from a loss of $49.886 million in Q1 2024[16] - The company reported a basic loss per share of $0.05 for Q1 2025, improved from a loss of $0.60 per share in Q1 2024[16] Cash Flow and Liquidity - Free cash flow increased by 7.6% to $10.2 million in Q1 2025[6] - Free cash flow for the three months ended March 31, 2025, was $10.168 million, compared to $9.452 million in the same period of 2024[30] - Cash provided by operating activities was $23.308 million, slightly up from $22.451 million in Q1 2024[17] - Cash provided by operating activities is expected to grow in excess of 30% compared to the prior year[10] - Free cash flow is projected to grow in excess of 40% compared to the prior year[10] Debt and Leverage - The company repaid approximately $75 million of debt in Q1 2025, reducing first lien net leverage to 2.6x, a decrease of 4.8% sequentially[10] - Long-term debt was reduced to $689.945 million, a decrease from $755.754 million at the end of 2024[15] Digital Metrics - Average monthly unique visitors reached 195 million, growing by 4.7% year-over-year[6] - Digital-only average revenue per user (ARPU) for Domestic Gannett Media was $7.31 in Q1 2025, slightly up from $7.28 in Q1 2024[35] - The number of digital-only paid subscriptions for Total Gannett decreased by 4% to 1,931 in Q1 2025 from 2,017 in Q1 2024[35] Future Outlook - Full year 2025 digital revenues are expected to grow approximately 7%-10% on a same store basis, making up 50% of total revenues[10] - Gannett's outlook for full year 2025 includes non-GAAP measures such as Same store revenues and Adjusted EBITDA, but does not factor in future acquisitions or dispositions[26] Cost Management - Integration and reorganization costs for Q1 2025 were $9.498 million, compared to $17.881 million in Q1 2024[29] Assets and Liabilities - Total assets decreased to $1.951 billion as of March 31, 2025, down from $2.040 billion at the end of 2024[15] - Total liabilities decreased to $1.802 billion, down from $1.888 billion at the end of 2024[15]

Core Insights - Gannett Fleming TranSystems has rebranded to GFT, integrating multiple businesses into a unified platform for infrastructure consulting services [1] - GFT serves over 5,000 clients across North America, focusing on transportation, water, power, environmental, and federal markets [2] - The company has been recognized by Engineering News-Record, ranking 18 on the Top 500 Design Firms list and achieving high rankings in various sectors [2] Company Overview - GFT employs over 5,000 professionals and operates 130 offices, leveraging a 110-year legacy to provide long-term value [2] - The firm specializes in architecture, engineering, and construction (AEC) within key markets [5] Leadership Changes - Mike Orth has been appointed as the new CEO, bringing 36 years of leadership experience from Black & Veatch [3] - The leadership team emphasizes the importance of building on the company's strong foundation and delivering innovative solutions [4] Strategic Vision - The rebranding is seen as a strategic evolution aimed at enhancing technical excellence and client relationships [4] - The company aims to drive sustainable growth and expand opportunities for employees under the new brand [4][5] Investment Background - OceanSound Partners, a private equity firm, has invested in GFT with the goal of transforming it into a scaled and differentiated business [6]