Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [8] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [10] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [10] - Total operating expenses were 1% below the low end of previously announced guidance [9] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 was down 8% compared to Q1 2024, primarily due to the Super Bowl airing on different channels [18] - Political advertising revenue exceeded expectations, coming in at $13 million against a guidance of $2 million to $4 million [21] - Digital advertising revenue was up double digits, indicating growth in this segment [20] Market Data and Key Metrics Changes - Automotive advertising revenue was down in high single digits, reflecting ongoing macroeconomic uncertainties [18] - Categories linked to consumer discretionary spending, such as restaurants and department stores, were soft, while essential categories like education and financial services performed better [20] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top capital allocation priority being debt reduction [24] - There is a commitment to enhancing local content offerings and entering new sports rights agreements to increase relevance in local markets [12][13] - The company is exploring opportunities for mergers and acquisitions, particularly in creating new duopolies [30][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a more favorable regulatory environment that could facilitate strategic transactions [34] - There is cautious optimism regarding the second half of the year, particularly in political advertising, despite overall uncertainty in the advertising market [50] - Management noted that the recent trade deal with the UK could stabilize the advertising market, which has been affected by uncertainties [51] Other Important Information - The company declared a quarterly dividend of $0.08 per share [12] - The Assembly Studios project is progressing, with multiple productions currently shooting and plans for future developments [15][69] Q&A Session Summary Question: What are the most attractive options for market expansion? - Management is actively pursuing various opportunities and is optimistic about potential regulatory changes that could allow for new duopolies [30][34] Question: How does the new regulatory environment affect affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively impact negotiations [37][62] Question: Are there any cancellations in advertising? - There are no cancellations, but there is hesitancy in booking ads due to economic uncertainty [48] Question: What is the outlook for political advertising? - Political ad buys are currently strong, with significant orders coming in, indicating a positive trend for the upcoming election cycle [58] Question: What is the status of Assembly Studios? - Assembly Studios is currently around 75% to 80% leased, with ongoing inquiries and productions actively shooting [75][69]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [6] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [7] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [7] - Total operating expenses decreased by 1% compared to the low end of previously announced guidance [6][7] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 finished down 8% versus Q1 2024, attributed partly to the Super Bowl airing on different channels [15] - Political advertising revenue was significantly higher than expected, reaching $13 million against a guidance of $2 million to $4 million [19] - Digital advertising revenue continued to grow in double digits, indicating a positive trend [19] Market Data and Key Metrics Changes - The automotive advertising category saw a decline in high single digits, reflecting ongoing macroeconomic uncertainties [15][17] - Essential categories like education and financial services performed better, while discretionary spending categories like restaurants were soft [17] - Political ad buys are expected to continue growing, with early signs of spending for upcoming elections [20][44] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top priority on capital allocation [22] - There is a commitment to expanding local content offerings and entering new sports rights agreements [10][11] - The company is exploring opportunities for mergers and acquisitions, particularly in light of a more relaxed regulatory environment [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deregulation to create new opportunities for growth and consolidation [31][41] - There is cautious optimism regarding the advertising market, with expectations for some recovery in key verticals despite ongoing uncertainties [44][47] - The company is committed to maintaining cost discipline and expects to see benefits from cost-saving initiatives throughout 2025 [24][90] Other Important Information - The company declared a quarterly dividend of $0.08 per share [10] - The Assembly Studios project is progressing, with several productions currently in operation and plans for future developments [61][62] Q&A Session Summary Question: How creative could the company get if deregulation allows for attractive opportunities? - The company is actively pursuing various options and is optimistic about potential regulatory changes that could facilitate new transactions [31] Question: What impact does the new regulatory environment have on affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively influence negotiations [34] Question: What is the margin lift from creating new duopolies? - The margin improvement from creating duopolies varies significantly based on market conditions and the specific stations involved [38] Question: Are there actual cancellations in advertising or just hesitancy? - The company is not seeing cancellations but rather hesitancy in ad bookings due to economic uncertainties [43] Question: What is the outlook for political advertising in the upcoming cycles? - Political ad buys are currently strong, with significant orders coming in, indicating a potentially robust political advertising cycle ahead [54] Question: What is the current occupancy rate at Assembly Studios? - The occupancy rate is estimated to be around 75% to 80%, with ongoing inquiries for additional leases [68]

Revenue Performance - Total revenue decreased by $41 million, or 5%, to $782 million for the three months ended March 31, 2025, compared to $823 million in the same period of 2024[94]. - Core advertising revenue decreased by $28 million, with Super Bowl advertising revenue on FOX channels increasing to $9 million in 2025 from $6 million in 2024[94]. - Political advertising revenue decreased by $14 million, primarily due to 2025 being the "off-year" of the two-year election cycle[94]. - Retransmission consent revenue decreased by $2 million, attributed to a decrease in subscriptions offset by an increase in rates[94]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $132 million in the 2025 three-month period from $68 million in 2024[103]. - Cash on hand as of March 31, 2025, was $210 million, up from $135 million at the end of 2024[103]. - The company anticipates sufficient cash flows from operations and borrowing availability to meet future capital expenditures and long-term debt service obligations[106]. Debt and Financial Ratios - Long-term debt, including current portion, was $5.609 billion as of March 31, 2025, compared to $5.621 billion at the end of 2024[103]. - Interest expense increased by $3 million to $118 million for the 2025 three-month period, primarily due to higher average interest rates[99]. - The company has a Leverage Ratio of 5.48, which is below the maximum permitted incurrence of 7.00 to 1.00[113]. - The First Lien Leverage Ratio stands at 2.92, under the maximum permitted incurrence of 3.5 to 1.00[113]. - Adjusted Total Indebtedness, net of all cash, is $5.471 billion[113]. - As of March 31, 2025, the total outstanding principal of long-term debt is $5.673 billion, with various senior notes maturing between 2026 and 2031[114]. - As of March 31, 2025, the company was in compliance with all required covenants under its debt obligations[114]. Expenses and Capital Expenditures - Corporate and administrative expenses increased by $4 million to $32 million, mainly due to increases in non-cash stock-based compensation[96]. - The company expects routine capital expenditures to be in the range of $70 million to $75 million for the remainder of 2025[116]. - Anticipated reimbursements from the Doraville Community Improvement District for infrastructure projects are approximately $20 million during the remainder of 2025[116]. - The company has approximately $240 million remaining under the debt repurchase authorization, which is valid through December 31, 2025[115]. Tax Obligations - The company expects to make income tax payments between $48 million and $68 million during the remainder of 2025[117]. Leverage Ratio Calculation - The Leverage Ratio Denominator, calculated for the total eight quarters ended March 31, 2025, is $998 million[113].

Financial Performance - Gray Media's 1Q25 total revenue exceeded guidance, reporting $782 million compared to the guidance of $764-$775 million[9] - Retransmission revenue in 1Q25 also surpassed guidance, reaching $379 million against a guidance of $375-$377 million[9] - Core revenue for 1Q25 aligned with guidance at $344 million[9] - Broadcasting expenses for 1Q25 were below the low end of guidance at $577 million, compared to the guidance of $582-$587 million[9] - Production companies' expenses for 1Q25 were also below the low end of guidance at $20 million, versus a guidance of $21-$22 million[9] - Corporate expenses for 1Q25 were below the low end of guidance at $32 million, compared to the guidance of $33-$35 million[9] - Adjusted EBITDA for the quarter ending March 31, 2025, was $160 million[12] - Net loss for the quarter ending March 31, 2025, was $9 million, compared to a net income of $88 million for the same period in 2024[12] - Total revenue for the year ending December 31, 2024, was $3644 million, compared to $3281 million in 2023[12] Debt and Leverage - Gray Media reduced debt principal by $17 million in 1Q25 and $520 million in 2024[13, 15] - As of March 31, 2025, the company had $240 million remaining under its debt repurchase authorization[15] - The leverage ratio at 1Q25 was 548x, with a leverage ratio denominator of $998 million[13] - First lien leverage ratio at 1Q25 was 292x[13] - Total outstanding principal including current portion was $5673 million as of March 31, 2025[20]

Exhibit 99.1 NEWS RELEASE Gray Media Announces First Quarter Financial Results Atlanta, Georgia – May 8, 2025. . . Gray Media, Inc. ("Gray," "Gray Media," "we," "us" or "our") (NYSE: GTN) today announced its financial results for the quarter ended March 31, 2025, which included total revenues above the high end of our guidance for the quarter. Total operating expenses were also below our guidance for the quarter. Moreover, for the first time since the COVID slowdown in 2020, our broadcasting operating expen ...

Gray Media (GTN) came out with a quarterly loss of $0.23 per share versus the Zacks Consensus Estimate of a loss of $0.49. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 53.06%. A quarter ago, it was expected that this broadcast television company would post earnings of $1.59 per share when it actually produced earnings of $1.59, delivering no surprise.Over the last four quarters, the compan ...

Core Insights - Gray Media, Inc. reported total revenues of $782 million for Q1 2025, a decrease of 5% from Q1 2024, but 1% above the high end of guidance for the quarter [6][12] - The company experienced a decline in core advertising revenue, which was $344 million, down 8% year-over-year, attributed to the Super Bowl airing on fewer channels compared to the previous year [6][12] - Political advertising revenue saw a significant drop of 52% to $13 million, consistent with the off-year of the political advertising cycle, yet it was 225% greater than the high end of guidance for the quarter [6][12] Financial Performance - Adjusted EBITDA for Q1 2025 was $160 million, down from $197 million in Q1 2024, primarily due to the cyclical decrease in political advertising revenue [14][6] - The net loss attributable to common stockholders was $22 million in Q1 2025, compared to a net income of $75 million in Q1 2024 [6][14] - Total operating expenses were $690 million, slightly down from $699 million in Q1 2024, with broadcasting expenses decreasing year-over-year for the first time since the COVID slowdown [6][12] Debt and Financial Flexibility - The company reduced its outstanding debt by $17 million during Q1 2025 and amended its revolving accounts receivable securitization facility to increase commitments from $300 million to $400 million [6][12] - As of March 31, 2025, Gray Media had a First Lien Leverage Ratio of 2.92 to 1.00 and a total leverage ratio of 5.48 to 1.00, indicating a manageable level of debt relative to its earnings [6][12] - The company has $692 million of borrowing availability under its undrawn Revolving Credit Facility, enhancing its financial flexibility [6][12] Future Guidance - For the quarter ending June 30, 2025, the company anticipates core advertising revenue to decline by mid-single digits compared to the same quarter in 2024, influenced by macroeconomic uncertainties [8][12] - Despite the anticipated decline in core advertising revenue, the company expects strong double-digit growth in digital advertising revenue and continued growth from local customers [8][12] - The company has implemented cost containment measures that are expected to exceed an annualized savings run-rate of $60 million [9][12]

Core Insights - Gray Media and its stations received multiple prestigious awards for journalistic excellence, highlighting their commitment to impactful local journalism [1][4][11] Awards and Recognitions - Sandy Breland, Gray's Executive Vice President and COO, was awarded the 2025 John F. Hogan Distinguished Service Award by the Radio Television Digital News Association for her contributions to journalism [2][3] - Jeff Schlesser, news director at Gray's WWSB, received the 2025 RTDNA Loren Tobia Leadership Award for his leadership in local programming [3] - WANF in Atlanta won first place in the National Headliner Awards for the documentary "In Plane Sight: The Fix," which investigated abuses by Drug Enforcement Task Force Agents [5] - WAVE in Louisville secured third place in the same category for its documentary on the Old National Bank mass shooting [5] - InvestigateTV, Gray's national investigative unit, received second place for its report on automakers' data collection practices [6] - WANF and WVUE in New Orleans were nominated for the 46th annual News & Documentary Emmy Awards for their investigative stories [7][8] - WIBW in Topeka won the 2025 Celebration of Service to America Award for its mental health awareness campaign [9][10] Company Overview - Gray Media, Inc. is the largest owner of local television stations in the U.S., reaching approximately 37% of U.S. television households [12]

Core Insights - The Zacks Broadcast Radio and Television industry is experiencing challenges due to cord-cutting, but companies like Netflix, Gray Media, Fox Corporation, and TEGNA are benefiting from increased digital content consumption and diverse offerings [1][2]. Industry Overview - The industry includes companies providing entertainment, sports, news, and musical content across various platforms, generating revenue through program sales, advertising, and subscriptions [2]. - There is a shift towards a variable cost model to enhance flexibility and reduce fixed costs amid evolving market dynamics [2]. Trends - Companies are diversifying content for OTT services to adapt to changing consumer preferences, which is expected to boost ad revenues [3]. - The rise in digital viewing is driving demand for tailored content, leveraging AI and machine learning for user engagement [4]. - The macroeconomic landscape, including high inflation and competition from tech companies, is impacting advertising budgets and revenue growth [5]. - The introduction of low-priced "skinny bundles" is changing revenue dynamics, potentially dampening top-line performance [6]. Performance Metrics - The industry ranks 41 in the Zacks Industry Rank, indicating it is in the top 17% of over 250 industries, with a positive earnings outlook [7][9]. - The industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500, gaining 54.4% over the past year compared to 2% and 1.5% respectively [11]. - The current EV/EBITDA ratio for the industry is 15.35X, slightly above the S&P 500's 15.19X [14]. Company Highlights - **Fox Corporation**: Demonstrated strong financial momentum with a 20% revenue growth and record EBITDA of $781 million, while also expanding its audience share and attracting new advertisers [17][18]. - **TEGNA**: Focused on modernization and technology deployment, targeting $90-$100 million in annualized savings, with a strong balance sheet and digital transformation initiatives [22][24]. - **Netflix**: Achieved first-quarter revenues of $10.54 billion, up 12.5% year over year, with a growing subscriber base and ambitious revenue targets [27][28]. - **Gray Media**: Positioned to capitalize on market-leading stations and diversified revenue streams, with successful partnerships in local sports and a focus on reducing debt [31][35].

It's said that the stock market is forward-looking by around six months. If that is the case, value investors who also happen to have fairly high-risk tolerance should put Gray Media, Inc. (NYSE:I am a private investor based out of Toronto, Canada and I have been investing since 2003. After 8 years in Corporate Finance with a Canadian Telecom company I have decided to dedicate myself full-time to the capital markets. I write on Seeking Alpha to demonstrate my financial analysis and writing skills across a v ...