DallasNews Corporation Announces Second Quarter 2025 Financial Results

Core Insights - DallasNews Corporation reported a net loss of $33.5 million, or $(6.26) per share, for Q2 2025, compared to a net income of $1.5 million, or $0.27 per share, in Q2 2024 [2][4] - The company experienced a total revenue decline of $2.3 million, or 7.2%, year-over-year, with total revenue at $29.8 million for Q2 2025 [4][6] - A merger agreement with Hearst Media West, LLC was announced, offering DallasNews shareholders $15.00 in cash per share, representing a 242% premium based on the stock price prior to the announcement [10][12] Financial Performance - The operating income for Q2 2025 was reported at $1.3 million, an increase from $0.6 million in Q2 2024 [2][3] - Adjusted operating income for Q2 2025 was $1.6 million, a 36.7% increase from $1.2 million in Q2 2024, primarily due to expense savings [3][8] - Total consolidated operating expenses decreased by $3.0 million, or 9.5%, to $28.5 million in Q2 2025 [7][8] Revenue Breakdown - Advertising and marketing services revenue was $12.3 million, down $0.5 million, or 3.8%, from $12.8 million in Q2 2024 [5][21] - Circulation revenue decreased by $0.9 million, or 5.7%, to $15.3 million, primarily due to a decline in print circulation [6][25] - Printing, distribution, and other revenue fell by $0.9 million, or 28.9%, to $2.2 million, attributed to the cancellation of a mailed advertisements partnership [6][21] Employee and Cash Position - As of June 30, 2025, the company had 451 employees, a decrease of 82, or 15.4%, from the previous year [9] - Cash and cash equivalents stood at $33.7 million, with no debt reported [9][23] Merger Details - The merger with Hearst is subject to customary closing conditions, including a shareholder vote, and is expected to close in Q3 or early Q4 2025 [10][12] - If completed, DallasNews' Series A Common Stock will be delisted from Nasdaq [12]