Gray Media (NYSE:GTN) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsAlan Gould - VP, of Investor RelationsHilton Howell - Chairman and CEOJeff Gignac - CFOKevin Latek - EVP, Chief Legal and Development OfficerPat LaPlatney - President and Co-CEOSandy Breland - EVP and COOConference Call ParticipantsAaron Watts - Equity Research AnalystCraig Huber - Equity Research AnalystDan Kurnos - Senior Research AnalystSteven Cahall - Equity Research AnalystOperatorGood day, everyone, and thank ...

Gray Media (NYSE:GTN) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsAlan Gould - VP, of Investor RelationsHilton Howell - Chairman and CEOJeff Gignac - CFOKevin Latek - EVP, Chief Legal and Development OfficerPat LaPlatney - President and Co-CEOSandy Breland - EVP and COOConference Call ParticipantsAaron Watts - Equity Research AnalystCraig Huber - Equity Research AnalystDan Kurnos - Senior Research AnalystSteven Cahall - Equity Research AnalystOperatorGood day, everyone, and thank ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $792 million, exceeding the high end of guidance [6] - Total operating expenses were $618 million, $5 million below the low end of guidance [6] - Net loss attributable to common stockholders was $23 million in Q4 2025 [7] - Adjusted EBITDA for Q4 2025 was $179 million [7] - Net Retransmission Revenue stabilized at $547 million for the full year 2025, similar to 2024 [8] Business Line Data and Key Metrics Changes - Broadcasting expenses declined by $41 million in Q4 2025 compared to Q4 2024, and by $78 million or about 3% for the full year 2025 compared to 2024 [6] - Core advertising revenue was up 3% compared to Q4 2024, with strong growth in services like financial, health, and home improvement [14] - Political advertising revenue reached $12 million in Q4 2025, exceeding expectations [7] Market Data and Key Metrics Changes - Core advertising categories showed strength in services, while automotive finished down low double digits [14] - Digital advertising continued healthy growth in Q4, up low double digits [15] - The first quarter 2026 guidance for core ad revenue is expected to be flat compared to Q1 2025 [17] Company Strategy and Development Direction - The company is focused on enhancing local content offerings and has won multiple national awards for journalistic excellence [10] - Continued investment in digital platforms, including a transition to the Quickplay platform powered by Google Cloud [11] - The company is optimistic about closing several M&A transactions in early 2026 to strengthen its market position [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming political cycle in 2026, which is expected to drive revenue growth [19] - The company is focused on achieving a sustainable model for net retransmission revenue, aiming for modest growth moving forward [29] - Management acknowledged the competitive landscape and the need for consolidation in the industry to maintain local news [31] Other Important Information - The company completed the acquisition of WBBJ-TV for $25 million and is working towards closing other announced transactions [9] - The total capital investment in Assembly Atlanta was approximately $630 million as of the end of 2025 [54] Q&A Session Summary Question: Impact of Nexstar's potential deal on asset availability - Management indicated that if Nexstar's deal closes, it may change the competitive landscape and could prompt the company to consider larger transactions [30] Question: Expectations for net retransmission revenue growth - Management confirmed that modest growth in net retransmission revenue is expected, despite some lumpiness due to renewals [29] Question: Leverage and M&A opportunities - Management stated that they are focused on reducing leverage and are open to transactions that make sense for the company [36] Question: Health of core advertising backdrop - Management noted that while Q1 is expected to be flat, there is optimism due to strong performance in February and upcoming political advertising [42] Question: NFL TV rights reassessment and its impact - Management believes that extending NFL contracts is a positive for the industry and critical for maintaining audience engagement [46] Question: Subscriber trends for retransmission revenue - Management reported improvements in subscriber trends, with a slower rate of decline in traditional MVPDs [50] Question: AI implementation and cost efficiency - Management highlighted that AI is enhancing efficiency across various departments, likening its impact to having additional interns [60][64]