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]

Financial Performance - Gray Media's 1Q25 total revenue exceeded guidance, reporting $782 million compared to the guidance of $764-$775 million[9] - Retransmission revenue in 1Q25 also surpassed guidance, reaching $379 million against a guidance of $375-$377 million[9] - Core revenue for 1Q25 aligned with guidance at $344 million[9] - Broadcasting expenses for 1Q25 were below the low end of guidance at $577 million, compared to the guidance of $582-$587 million[9] - Production companies' expenses for 1Q25 were also below the low end of guidance at $20 million, versus a guidance of $21-$22 million[9] - Corporate expenses for 1Q25 were below the low end of guidance at $32 million, compared to the guidance of $33-$35 million[9] - Adjusted EBITDA for the quarter ending March 31, 2025, was $160 million[12] - Net loss for the quarter ending March 31, 2025, was $9 million, compared to a net income of $88 million for the same period in 2024[12] - Total revenue for the year ending December 31, 2024, was $3644 million, compared to $3281 million in 2023[12] Debt and Leverage - Gray Media reduced debt principal by $17 million in 1Q25 and $520 million in 2024[13, 15] - As of March 31, 2025, the company had $240 million remaining under its debt repurchase authorization[15] - The leverage ratio at 1Q25 was 548x, with a leverage ratio denominator of $998 million[13] - First lien leverage ratio at 1Q25 was 292x[13] - Total outstanding principal including current portion was $5673 million as of March 31, 2025[20]