Financial Performance & Guidance - Gray Media's 3Q25 total revenue reached $749 million, hitting the high-end of guidance[12] - Core advertising revenue for 3Q25 also reached the high-end of guidance at $346 million[12] - Retransmission revenue for 3Q25 exceeded guidance at $355 million[12] - Corporate expense for 3Q25 was below the low-end of guidance at $22 million[12] - Broadcasting expense for 3Q25 was below the low-end of guidance at $542 million[12] - Production companies expense for 3Q25 was below the low-end of guidance at $28 million[12] - For the nine months ending September 30, 2025, total revenue was $2303 million, compared to $2599 million for the same period in 2024[15] - Adjusted EBITDA for the nine months ending September 30, 2025, was $491 million, compared to $760 million for the same period in 2024[15] Debt & Leverage - As of September 30, 2025, Gray Media's secured leverage ratio was 366x[16] - As of September 30, 2025, the first lien leverage ratio was 272x[16] - As of September 30, 2025, the leverage ratio was 577x[16]

Group 1: Earnings Performance - Gray Media reported a quarterly loss of $0.24 per share, better than the Zacks Consensus Estimate of a loss of $0.41, and compared to earnings of $0.86 per share a year ago, indicating an earnings surprise of +41.46% [1] - The company posted revenues of $749 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.27%, but down from $950 million in the same quarter last year [2] - Over the last four quarters, Gray Media has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Gray Media shares have increased by approximately 46% since the beginning of the year, outperforming the S&P 500's gain of 14.3% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.05 on $810 million in revenues for the coming quarter and -$1.40 on $3.11 billion in revenues for the current fiscal year [4][7] - The current Zacks Rank for Gray Media is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Broadcast Radio and Television industry, to which Gray Media belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Total revenue for Q3 2025 was $749 million, at the high end of the guidance range of $750 million[6]. - Core advertising revenue reached $355 million, reflecting strong performance despite the prior year's $16 million from the Summer Olympics[6]. - Retransmission consent revenue was $346 million, exceeding guidance by $1 million, with a decline attributed to WANF's transition to an independent station[6]. - Political advertising revenue was $8 million, exceeding guidance by $1 million, reflecting the off-year in the political advertising cycle[6]. - Total revenue for the three months ended September 30, 2025, was $749 million, a decrease of 21% compared to $950 million in the same period of 2024[15]. - Core advertising revenue decreased by 3% to $355 million from $365 million year-over-year for the three months ended September 30, 2025[15]. - Political advertising revenue plummeted by 95% to $8 million from $173 million in the same quarter of 2024[15]. - Total broadcasting revenue for the nine months ended September 30, 2025, was $2,233 million, a decrease of 12% from $2,531 million in the same period of 2024[18]. Financial Results - Net loss attributable to common stockholders was $23 million, compared to a net income of $83 million in Q3 2024, primarily due to decreased political advertising[6]. - Adjusted EBITDA for Q3 2025 was $162 million[6]. - Adjusted EBITDA for the three months ended September 30, 2025, was $162 million, a decrease of 52% compared to $338 million in the same period of 2024[34]. - Net loss for the three months ended September 30, 2025, was $10 million, compared to a net income of $96 million in the same quarter of 2024, representing a 110% decline[15]. - The net loss for the nine months ended September 30, 2025, was $75 million, compared to a net income of $206 million for the same period in 2024[35]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $177 million, down from $383 million in 2024[20]. - The company's interest expense for the three months ended September 30, 2025, was $120 million, down from $130 million in the same period of 2024[34]. Debt and Financing - The company completed refinancing activities, including a $900 million issuance of Senior Secured Second Lien Notes and an amendment to increase the Revolving Credit Facility by $50 million[6][11]. - The First Lien Leverage Ratio as of September 30, 2025, was 2.72 to 1.00, with a total borrowing availability of $742 million under the Revolving Credit Facility[11]. - The First Lien Leverage Ratio as of September 30, 2025, was 2.72, below the maximum permitted incurrence of 3.50 to 1.00[37]. - Total outstanding principal secured by a first lien was $2,774 million as of September 30, 2025[37]. - The Adjusted Total Indebtedness as of September 30, 2025, was $5,511 million, with a Leverage Ratio of 5.77, which is above the maximum permitted incurrence of 7.00 to 1.00[37]. - Long-term debt as of September 30, 2025, was $5,610 million, slightly down from $5,621 million at the end of 2024[20]. - The company incurred Transaction Related Expenses amounting to $4 million for the eight quarters ended September 30, 2025[37]. Operational Activities - The company entered into agreements for television station acquisitions and divestitures, expecting to enter six new markets and create 11 new full-power "duopolies"[8][9]. - The company plans to host a conference call on November 7, 2025, to discuss its operating results for the quarter[24]. Depreciation and Expenses - Depreciation for the nine months ended September 30, 2025, was $99 million, compared to $108 million in the same period of 2024[35]. - The company reported a pension expense of $3 million for the nine months ended September 30, 2025[35]. - The company’s purchases of property and equipment for the nine months ended September 30, 2025, were $43 million, down from $64 million in the same period of 2024[35].

Core Insights - Gray Media, Inc. reported strong financial results for Q3 2025, with total revenue of $749 million, exceeding the high end of guidance [4][12] - Core advertising revenue reached $355 million, reflecting solid performance despite a comparison to the previous year's Olympic-related revenue [4][14] - The company successfully executed debt market transactions to enhance liquidity and extend debt maturities, increasing financial flexibility [4][6] Financial Performance - Total revenue for Q3 2025 was $749 million, aligning with the high end of guidance [4] - Core advertising revenue was $355 million, slightly down from $365 million in Q3 2024, but at the high end of guidance [14] - Retransmission consent revenue was $346 million, exceeding guidance by $1 million, though down from $369 million in Q3 2024 [4][14] - Political advertising revenue was $8 million, exceeding guidance by $1 million, but significantly lower than $173 million in Q3 2024 [4][14] - Net loss attributable to common stockholders was $23 million, compared to a net income of $83 million in Q3 2024, primarily due to decreased political advertising [4][14] Operational Highlights - Broadcast operating expenses were $542 million, significantly below guidance, reflecting ongoing cost containment efforts [4][14] - The transition of WANF in Atlanta to an independent station is expected to enhance local news and sports programming [4][14] - The company is pursuing acquisitions and divestitures to expand its market presence, with agreements involving several television stations [6][7] Debt and Liquidity Management - The company amended its Senior Credit Agreement to increase the Revolving Credit Facility by $50 million, extending the term to December 2028 [4][9] - Gray Media issued $900 million in Senior Secured Second Lien Notes and $775 million in Senior Secured First Lien Notes to refinance existing debt [4][9] - As of September 30, 2025, the company had $742 million available under its Revolving Credit Facility [9][18] Future Guidance - For Q4 2025, the company anticipates a decrease in retransmission consent revenue compared to the prior year, primarily due to WANF's transition [12] - Guidance for core advertising revenue is projected between $380 million and $390 million for Q4 2025 [12] - Total revenue guidance for the year ending December 31, 2025, is set between $3,070 million and $3,085 million [12]

Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations and digital assets in the United States, serving 113 television markets that reach approximately 37% of US television households [6] - The company operates 78 markets with the top-rated television station and 99 markets with the first and/or second highest-rated television station during 2024 [6] - Gray Media also owns the largest Telemundo Affiliate group with 44 markets and a full-service digital agency, Gray Digital Media, which provides advanced digital marketing strategies [6] Leadership Announcement - Nick Hasenecz has been promoted to General Manager of WNDU, the NBC affiliate in South Bend, Indiana, effective December 1, 2025 [1] - Hasenecz has over 30 years of experience in broadcast television, with a proven track record in leading teams, growing revenue, and driving innovation [3] - He has previously served as Director of Sales and Interim General Manager for WOIO, WUAB, and Telemundo Cleveland, achieving record-breaking new business results in 2024 and 2025 [3] Career Background - Nick Hasenecz began his career in research at TELEREP and later became Research Director at WAVY-TV 10 in Norfolk, Virginia, where he transitioned into sales [4] - He joined WCAX-TV in Burlington, Vermont, in 2013 as Director of Sales, where he built a strong sales team and led the station to all-time highs in market share and revenue during his eleven-year tenure [5] - Hasenecz is a graduate of the Walter Cronkite School of Journalism and Mass Communication at Arizona State University [5]

Core Points - Gray Media, Inc. has appointed Chris Conroy as the General Manager for WOIO (CBS), WUAB (CW), and WTCL (Telemundo) in Cleveland, Ohio [1] - Chris Conroy has over 40 years of media leadership experience, previously serving as General Manager of Gray's KFVS in Cape Girardeau, MO, where he achieved significant ratings growth and digital engagement [3][4] - Conroy has held leadership roles at various stations, including launching the NBC affiliate at KAIT in Jonesboro, AR, and has received multiple industry awards, including two Southeast Region Emmy Awards [4][5] Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations in the U.S., operating in 113 television markets and reaching approximately 37% of U.S. television households [6] - The company owns 78 markets with the top-rated television station and 99 markets with the first or second highest-rated station as of 2024, along with the largest Telemundo Affiliate group [6] - Gray Media also includes Gray Digital Media, which provides advanced digital marketing strategies, and owns several media properties, including video production companies and studio facilities [6]

Company Overview - Gray Media has appointed Jon Pollard as the General Manager of WTOK, effective November 3, 2025 [1] - Gray Media, Inc. is the largest owner of local television stations in the U.S., reaching approximately 37% of U.S. television households [5] - The company operates in 113 television markets, with 78 markets having the top-rated television station and 99 markets with the first or second highest-rated station in 2024 [5] Leadership Background - Jon Pollard has 20 years of experience in the broadcast television industry, previously leading WMDN/WGBC, the CBS, NBC, and FOX affiliates in East Mississippi [3] - He has a history with Gray Media, having worked at WTOK for nine years as Regional Sales Manager and Account Executive [3] - Pollard has served on the board of the Mississippi Association of Broadcasters and is involved with the Salvation Army and the Meridian Rotary Club [4]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for Gray Media (GTN) [1][5]. Brokerage Recommendations - Gray Media has an average brokerage recommendation (ABR) of 1.67, indicating a position between Strong Buy and Buy, based on recommendations from six brokerage firms [2]. - Out of the six recommendations, four are Strong Buy, accounting for 66.7% of the total [2]. Limitations of Brokerage Recommendations - Solely relying on ABR for investment decisions may not be advisable, as studies indicate that brokerage recommendations often fail to guide investors effectively [5]. - Brokerage analysts tend to exhibit a positive bias due to their firms' vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more reliable indicator of near-term stock performance [8][11]. - The Zacks Rank is updated more frequently than ABR, reflecting timely changes in earnings estimates, which are crucial for predicting future price movements [12]. Current Earnings Estimates for Gray Media - The Zacks Consensus Estimate for Gray Media remains unchanged at -$1.4 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Gray Media holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the favorable ABR [14].

Company Performance - Gray Media's stock increased by 1.72% to $4.74, outperforming the S&P 500's gain of 1.56% [1] - The stock has decreased by 20.48% over the past month, underperforming the Consumer Discretionary sector's loss of 5.13% and the S&P 500's gain of 0.41% [1] Upcoming Financial Results - Gray Media is set to announce its earnings on November 7, 2025, with an expected EPS of -$0.41, a decline of 147.67% from the previous year [2] - The consensus estimate projects revenue of $747 million, reflecting a 21.37% decrease from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict an EPS of -$1.4 and revenue of $3.11 billion, indicating changes of -141.67% and -14.63% respectively from the prior year [3] - Recent changes to analyst estimates for Gray Media are important for investors as they reflect the evolving business trends [3] Analyst Ratings and Market Trends - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks averaging an annual return of +25% since 1988 [5] - Gray Media currently holds a Zacks Rank of 3 (Hold), with no changes in the consensus EPS projection over the past 30 days [5] Industry Overview - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 49, placing it in the top 20% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Points - Gray Media has been awarded the 2025 Catalyst Award for its significant contributions to the Ad Council's Project Roadblock initiative, which focuses on preventing buzzed driving during the holiday season [1][2] - In 2024, Gray Media was the top contributor to Project Roadblock, accounting for 17% of all PSA airings nationwide [2] - The 2024 Project Roadblock campaign achieved over 65.9 thousand detections of donated local broadcast TV airtime, generating an estimated media value of $6.5 million, reflecting a year-over-year increase of 9% in detections and 68% in value [3] Company Contributions - Gray Media's support for Project Roadblock demonstrates its commitment to social responsibility and public safety, as highlighted by the Ad Council and TVB executives [5] - The company has been actively involved in the initiative since its inception in 2004, which aims to raise awareness about the dangers of buzzed driving [5][10] - Gray Media operates the largest portfolio of top-rated local television stations in the U.S., reaching approximately 37% of U.S. television households [10] Industry Impact - The Project Roadblock initiative, a collaboration between the Ad Council, TVB, and NHTSA, emphasizes the effectiveness of local TV in disseminating life-saving messages [3][5] - The campaign reached 208 of 210 Designated Market Areas (DMAs) nationwide, covering 99.96% of all U.S. households, showcasing the extensive reach of local broadcast television [3] - The annual Catalyst Award recognizes the impact of media donations in promoting social causes, highlighting the role of communications companies in driving change [2][4]