Lee Enterprises Reports Fourth Quarter and Full Year FY25 results

Core Insights - Lee Enterprises reported a fourth quarter fiscal 2025 Adjusted EBITDA growth of $2 million year-over-year on a comparable basis, indicating a positive trend in profitability [1][2] - Total Digital Revenue accounted for 53% of total revenue in the quarter, amounting to $74 million, showcasing the company's strong digital presence [1][5] - Digital-only subscription revenue increased by 16% year-over-year, reflecting the effectiveness of the company's digital growth strategy [2][5] Financial Performance - For the fourth quarter ended September 28, 2025, total operating revenue was $139 million, with digital revenue contributing $74 million [5][15] - Operating expenses totaled $142 million, with cash costs at $126 million, both showing a decrease of 13% and 12% respectively compared to the prior year [5][16] - The net loss for the quarter was $6 million, while Adjusted EBITDA was reported at $15 million [5][16] Digital Strategy - Digital-only subscribers reached 633,000 by the end of the quarter, with digital-only subscription revenue totaling $25 million, a 6% increase year-over-year [5][15] - Digital advertising and marketing services revenue represented 74% of total advertising revenue, totaling $44 million [5][15] - The company has seen a 32% annual increase in digital-only subscription revenue over the past three years, indicating strong growth in this segment [5][15] Debt and Cash Flow - The company has $455 million of debt outstanding under a credit agreement with favorable terms, including a fixed annual interest rate of 9.0% [6][9] - Cash on the balance sheet totaled $10 million, resulting in net debt of $445 million after accounting for cash [9][19] - Capital expenditures for the quarter were $1 million, with expectations of up to $10 million in FY26 [9][19] Operational Highlights - The company is executing a strategic termination of its fully funded benefit pension plan, which is expected to improve balance sheet flexibility [9][19] - The fiscal year 2025 results were materially impacted by a cyber incident in February 2025, affecting revenue and Adjusted EBITDA by approximately $12 million and $8 million respectively [19][20]