Lee Enterprises(LEE) - 2025 Q4 - Annual Results

Revenue Performance - Q4 total operating revenue was $139 million, with total digital revenue at $74 million, representing 53% of total revenue[2] - For the fiscal year 2025, total operating revenue was $562 million, with total digital revenue flat at $298 million[5] - Total Operating Revenue for the three months ended September 28, 2025, was $139.1 million, a decrease of 12.3% compared to $158.6 million for the same period in 2024[15] - Same-store Total Advertising Revenue for the twelve months ended September 29, 2025, was $252.3 million, down 5.5% from $266.9 million in 2024[15] - Digital Advertising Revenue for the three months ended September 28, 2025, was $44.1 million, a decline of 16.0% from $52.5 million in the same period last year[15] - Print Subscription Revenue for the twelve months ended September 29, 2025, decreased to $164.2 million, down 16.9% from $197.6 million in 2024[15] - Total Subscription Revenue for the three months ended September 28, 2025, was $67.0 million, a decrease of 8.5% from $73.0 million in the same period last year[15] Digital Revenue Insights - Digital-only subscription revenue increased by 16% year-over-year, totaling $25 million, with 633,000 digital-only subscribers at the end of the quarter[2] - The company reported Same-store Digital Subscription Revenue of $94.2 million for the twelve months ended September 29, 2025, an increase of 16.2% from $81.0 million in 2024[15] Financial Performance - Adjusted EBITDA for Q4 was $15 million, a decrease of $2 million year-over-year, but an increase of $2 million on a comparable basis[2] - Adjusted EBITDA for FY25 was negatively impacted by a cyber incident, with an estimated impact of approximately $8 million[17] - The company expects mid-single-digit Adjusted EBITDA growth for fiscal year 2026[4] Operating Expenses and Losses - Operating expenses for FY25 totaled $571 million, a 7% decrease compared to the prior year[5] - The company reported a net loss of $36 million for FY25, compared to a net loss of $25.8 million in the previous year[5] Debt and Financial Strategy - The company has $455 million of debt outstanding with favorable financing terms, including a fixed annual interest rate of 9.0%[4] - The company’s debt stands at $576 million under a credit agreement with BH Finance LLC[17] Strategic Changes - The strategic termination of the fully funded benefit pension plan is aimed at improving balance sheet flexibility and reducing long-term volatility[6] Operational Context - The fourth quarter of fiscal 2025 consisted of 13 weeks, compared to 14 weeks in the fourth quarter of fiscal 2024[17] - Cash Costs are defined as compensation, newsprint, ink, and other operating expenses, excluding non-cash operating expenses[17]