[Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Management%20Commentary) Lee Enterprises reported **$73 million** in digital revenue (53% of total), with digital-only subscriptions up **20% YoY**, despite a **$2 million** cybersecurity incident - Digital transformation continues with digital-only subscription revenue up **20% YoY** (same-store) and Amplified Digital Agency revenue up **9% YoY** (same-store)[1](index=1&type=chunk) - A February cybersecurity incident incurred **$2 million** in restoration costs and negatively impacted advertising revenue and digital subscriber growth[1](index=1&type=chunk) - The company launched an AI Enablement solution for local businesses in March 2025 to prepare them for the AI transformation of advertising[2](index=2&type=chunk) - Executed **$40 million** in annualized cost reductions to improve free cash flow in the second half of FY25[3](index=3&type=chunk) Q2 FY2025 Key Metrics | Metric | Value | | :--- | :--- | | Total Operating Revenue | $137 million | | Total Digital Revenue | $73 million (53% of total) | | Digital-Only Subscription Revenue | $24 million (+17% YoY) | | Digital-Only Subscribers | 728,000 | | Net Loss | $12 million | | Adjusted EBITDA | $8 million | [Financial Condition](index=2&type=section&id=Financial%20Condition) As of March 30, 2025, Lee Enterprises reported **$453 million** in debt and **$5 million** in cash, with its lender waiving interest payments to enhance short-term liquidity Debt and Liquidity as of March 30, 2025 | Metric | Value | | :--- | :--- | | Principal Debt Outstanding | $453 million | | Cash on Balance Sheet | $5 million | | Net Debt | $448 million | | FY25 Expected CapEx | Up to $7 million | - The company's sole lender, BH Finance, waived March and April 2025 interest and rent payments to provide short-term liquidity, with the waived amounts added to the principal balance[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's consolidated financial performance, detailing revenue, expenses, net loss, and the evolving digital-to-print revenue mix [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Lee Enterprises reported **$137.4 million** in total operating revenue for Q2 2025, a decrease from the prior year, resulting in a net loss of **$12.0 million** Q2 FY2025 vs Q2 FY2024 Statement of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Operating Revenue | $137,380 | $146,550 | | Total Operating Expenses | $143,038 | $152,308 | | Operating Loss | ($4,503) | ($4,552) | | Net Loss | ($12,015) | ($11,636) | | Loss Per Share (Basic) | ($2.07) | ($2.06) | [Digital / Print Revenue Composition](index=6&type=section&id=Digital%20%2F%20Print%20Revenue%20Composition) Digital revenue increased to **$72.6 million** in Q2 2025, now comprising **53%** of total operating revenue, while print revenue declined significantly Q2 Revenue Composition (in thousands) | Revenue Stream | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Digital Revenue | $72,556 | $70,773 | +2.5% | | Total Print Revenue | $64,824 | $75,777 | -14.5% | | **Total Operating Revenue** | **$137,380** | **$146,550** | **-6.3%** | - Digital Only Subscription Revenue was a key growth driver, increasing **17.4%** to **$23.8 million** from **$20.3 million** YoY[14](index=14&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP financial metrics, including Adjusted EBITDA, Cash Costs, and Same-store Revenues, to GAAP measures [Reconciliation of Adjusted EBITDA and Cash Costs](index=7&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20Cash%20Costs) Adjusted EBITDA for Q2 2025 significantly decreased to **$7.8 million** from **$15.1 million** YoY, while Cash Costs slightly decreased to **$131.2 million** Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss | ($12,015) | ($11,636) | | **Adjusted EBITDA** | **$7,768** | **$15,061** | Cash Costs Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Expenses | $143,038 | $152,308 | | **Cash Costs** | **$131,225** | **$133,259** | [Reconciliation of Same-store Revenues](index=8&type=section&id=Reconciliation%20of%20Same-store%20Revenues) Same-store total operating revenue decreased **5.3%** to **$137.4 million**, while same-store Digital Subscription Revenue grew strongly by **19.7%** Same-Store Revenue Growth (in thousands) | Revenue Stream (Same-Store) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Digital Subscription Revenue | $23,789 | $19,880 | +19.7% | | Digital Advertising Revenue | $43,938 | $45,050 | -2.5% | | Total Operating Revenue | $137,357 | $144,966 | -5.3% | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section outlines Lee Enterprises' business as a subscription and advertising platform, details forward-looking statement risks, and defines key non-GAAP financial measures - Lee Enterprises is a subscription and advertising platform and a leading provider of local news, serving **72 markets** in **25 states**[8](index=8&type=chunk) - The report contains forward-looking statements subject to risks including declining print revenue, cybersecurity breaches, and changes in advertising demand[9](index=9&type=chunk)[12](index=12&type=chunk) - Non-GAAP measures like Adjusted EBITDA and Cash Costs are used by management to assess operating performance by excluding unusual, infrequent or non-cash items[17](index=17&type=chunk)

Financial Data and Key Metrics Changes - The total operating revenue for the second quarter was $137 million, showing an improvement in trend from the first quarter despite the impact of a cyber incident [13] - Net loss totaled $12 million in the quarter, and free cash flow was minimal, which included expenses associated with debt even though payments were waived [23] Business Line Data and Key Metrics Changes - Total digital revenue grew 4% year over year on a same-store basis, with digital subscription revenue leading the way at a growth rate of 20% [10][14] - Amplified Digital agency revenue grew 9% year over year, contributing to the overall digital revenue growth [14] Market Data and Key Metrics Changes - Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing the nearest industry competitor [8] - Amplified Digital agency revenue growth has outpaced competitors, growing 18% annually over the past three years [8] Company Strategy and Development Direction - The company is committed to a digital transformation strategy, aiming for $450 million in digital revenue by 2028 [7] - The introduction of a suite of AI products is expected to accelerate digital revenue growth, with the first product, AI enablement, aimed at local businesses [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant disruption caused by a cyber incident but expressed confidence in the company's recovery and ongoing digital transformation efforts [6][7] - The updated outlook reflects improved total digital revenue growth trends in the second half of the fiscal year, with expectations for free cash flow to be positive in that period [20][23] Other Important Information - The company executed approximately $40 million in annualized cost reductions in the second quarter to drive margin improvements [15] - The cyber incident impacted the ability to bill and collect from customers, affecting the balance sheet [16][17] Q&A Session Summary Question: Did the net loss of $12 million in the quarter include the interest deferral? When does the company expect to be free cash flow positive? - The net loss includes expenses associated with debt, even though payments were waived. The company expects to be free cash flow positive in the second half of fiscal year 2025 [23]

Financial Data and Key Metrics Changes - The total operating revenue for the second quarter was $137 million, showing an improvement in trend from the first quarter despite the impact of a cyber incident [12] - The net loss for the quarter totaled $12 million, which included expenses associated with debt, even though payments were waived [22] - Free cash flow was minimal, but the company expects to be free cash flow positive in the second half of fiscal year 2025 due to significant changes in cost structure [22] Business Line Data and Key Metrics Changes - Total digital revenue grew 4% year over year on a same-store basis, with digital subscription revenue leading the way at a growth rate of 20% [9][13] - Amplified Digital agency revenue grew 9% year over year, contributing to the overall digital revenue growth [13] - The company executed approximately $40 million in annualized cost reductions in the second quarter, aimed at driving margin improvements [14] Market Data and Key Metrics Changes - Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing the nearest industry competitor [8] - The company’s digital revenue has grown more than 17% annually since fiscal year 2021, translating to comparable annual growth in digital gross margin [12] Company Strategy and Development Direction - The company is committed to a digital transformation strategy, aiming for $450 million in digital revenue by 2028 [7] - The introduction of a suite of AI products is expected to accelerate digital revenue growth, with the first product, AI enablement, aimed at local businesses [10] - The focus remains on replacing print revenue with growing and profitable digital revenue to achieve long-term sustainability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable growth and deliver long-term value to shareholders despite the challenges faced during the quarter [7] - The updated outlook reflects improved total digital revenue growth trends in the second half of the fiscal year, with expectations for year-over-year growth in adjusted EBITDA [19] Other Important Information - The cyber incident in February caused significant disruption, impacting operations and financial performance, but the company has since fully recovered [6][7] - The company has made considerable progress in paying down debt and remains committed to reducing debt going forward [16] Q&A Session Summary Question: Did the net loss of $12 million in the quarter include the interest deferral? When does the company expect to be free cash flow positive? - The net loss includes expenses associated with debt, even though payments were waived. The company expects to be free cash flow positive in the second half of fiscal year 2025 due to changes in cost structure and digital revenue outlook [22]

Financial Performance - Q2 FY2025 - Total operating revenue reached $137 million, a decrease of 6% year-over-year (YoY), or 5% on a same-store basis[14] - Total digital revenue amounted to $73 million, reflecting a 3% YoY increase[14] - Print revenue totaled $65 million, experiencing a 14% decline[14] - Adjusted EBITDA stood at $8 million[15] Digital Revenue Growth - Digital subscription revenue grew by 20% to $24 million[16] - Amplified Digital® agency revenue increased by 9% to $25 million[16] - Digital advertising revenue decreased by 2% to $44 million[16] - Lee expects the Three Pillar Digital Growth Strategy to drive more than $450 million of digital revenue by 2028[3] Cost Management and Debt Reduction - Total cash costs were $131 million, a 2% YoY decrease[15] - Approximately $40 million of annualized cost reductions were executed in the second quarter of FY25[21] - Debt was reduced by $123 million since refinancing in March 2020, bringing the total to $453 million in Q2 2025 from $576 million in Q2 2020[23, 25] Future Outlook - The company anticipates low-single-digit YoY growth in total digital revenue for the second half of FY25[26] - The company anticipates low-single-digit YoY growth in Adjusted EBITDA for the second half of FY25[26]

Core Viewpoint - Lee Enterprises reported a quarterly loss of $2.07 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.58, indicating a substantial earnings surprise of -256.90% [1] Financial Performance - The company posted revenues of $137.38 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.63% and down from $146.55 million a year ago [2] - Over the last four quarters, Lee Enterprises has consistently failed to surpass consensus EPS and revenue estimates [2] Stock Performance - Lee Enterprises shares have declined approximately 45.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $147.46 million, and for the current fiscal year, it is -$3.58 on revenues of $587.63 million [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Publishing - Newspapers industry, to which Lee Enterprises belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a relatively strong position [8]

Core Insights - Lee Enterprises reported a total operating revenue of $137 million for the second quarter of fiscal 2025, with digital revenue accounting for 53% of this total at $73 million, reflecting a 3% increase year-over-year [2][9] - Digital-only subscription revenue grew by 20% year-over-year, reaching $24 million, with a total of 728,000 digital-only subscribers [2][9] - The company faced challenges due to a cyber security incident in February, incurring $2 million in restoration costs and impacting advertising revenue [4][9] Financial Performance - Total operating revenue was $137 million, down from $146.55 million in the same quarter last year [9][16] - Operating expenses totaled $143 million, which included $2 million related to cyber restoration costs, marking a 6% decrease compared to the prior year [9][16] - The net loss for the quarter was $12 million, with an Adjusted EBITDA of $8 million [9][18] Digital Transformation - Digital subscription revenue increased by 20% on a same-store basis, indicating strong growth in the digital segment [3][9] - Amplified Digital Agency revenue reached $25 million, up 9% year-over-year, showcasing the effectiveness of the company's digital marketing services [2][3] - The company launched an AI solution aimed at supporting local businesses in adapting to the evolving advertising landscape [5] Cost Management - Lee Enterprises executed $40 million in annualized cost reductions during the second quarter to address near-term challenges [6] - The company anticipates improving year-over-year trends in Total Digital Revenue for the third and fourth fiscal quarters of FY25 [6] Debt and Cash Flow - The company has $453 million in outstanding debt under a favorable credit agreement with BH Finance, which includes a fixed annual interest rate of 9.0% [8][14] - Cash on the balance sheet totaled $5 million, with debt net of cash amounting to $448 million [14]

Core Viewpoint - Lee Enterprises, Incorporated is set to announce preliminary results for its quarter ended March 30, 2025, during a scheduled audio webcast and conference call on May 8, 2025 [1] Company Overview - Lee Enterprises is a significant subscription and advertising platform, providing local news and information through daily newspapers and nearly 350 weekly and specialty publications across 72 markets in 25 states [3] - The company emphasizes its commitment to delivering valuable, intensely local news to the communities it serves, with notable markets including St. Louis, MO; Buffalo, NY; and Omaha, NE [3] - Lee Common Stock is traded on NASDAQ under the symbol LEE [3]

Seasoned Real Estate Expert to Lead Company-Owned Brokerage OperationsNEW YORK, April 21, 2025 /PRNewswire/ -- Sotheby's International Realty today announced that seasoned real estate expert Mary Lee Blaylock has joined the brand as president of brokerage. Responsible for leading its company-owned brokerage operations, she will oversee 48 brokerage offices nationally that support more than 2,300 affiliated agents responsible for $20B in annual sales volume in 2024. Blaylock will focus on the development and ...

Core Insights - Wang and Lee Group, Inc. announced a strategic investment in TROOPS, Inc. to integrate AI-driven advertising media, smart home devices, and blockchain-powered token rewards into TROOPS' infrastructure [1][2] - The partnership aims to deploy Wang and Lee's technologies across TROOPS' potential 200-building portfolio, enhancing user engagement through a token rewards ecosystem aligned with ESG principles [2][4] Synergies and Strategic Vision - The collaboration seeks to leverage TROOPS' real estate footprint to accelerate the adoption of smart technologies and create an interconnected ecosystem [3] - The CEO of Wang and Lee emphasized the transformative nature of this investment in building smarter, sustainable communities [3] Driving ESG Value and Market Growth - The partnership aligns with global ESG priorities by promoting energy-efficient technologies and empowering users through tokenized rewards [4] - Wang and Lee anticipates increased demand for its smart devices and advertising services as TROOPS' buildings evolve into innovation hubs [4] Transaction Details - The investment is subject to customary closing conditions, regulatory approvals, and final agreement terms, with further details to be disclosed upon finalization [5] Company Overview - Wang and Lee Group, Inc. is a Hong Kong-based construction prime and subcontractor specializing in Electrical & Mechanical Systems installation, offering design and contracting services across the construction industry [6]

Innovative partnership with City University of Hong Kong paves the way for sustainable urban solutions HONG KONG, March 28, 2025 (GLOBE NEWSWIRE) -- Wang & Lee Group, Inc. (Nasdaq: ​WLGS) (the “Company”) today announced the successful installation of the first ever developed and made in Hong Kong smart flooring system capable of converting kinetic energy from human footsteps into usable electricity. This milestone achievement, developed in collaboration with City University of Hong Kong (“CityU”), marks a t ...