Core Insights - Lee Enterprises reported a significant growth in Adjusted EBITDA of 92% over Q2, indicating strong operational performance and effective cost management [1][2] - Total Digital Revenue reached $78 million, accounting for 55% of total revenue, reflecting the company's successful transition to a digital-first model [1][6] - Digital-only subscription revenue increased by 16% year-over-year, showcasing the growing demand for digital content among consumers [1][6] Financial Performance - Total operating revenue for the quarter was $141 million, with a net loss of $2 million and Adjusted EBITDA of $15 million, a 1% increase compared to the previous year [6][15] - Operating expenses decreased by 6% to $137 million, while cash costs fell by 7% to $128 million, demonstrating effective cost control measures [6][17] - The company achieved organic free cash flow growth, fulfilling all mandatory principal and interest payments through cash from operations since May 2025 [2][10] Digital Growth - Digital advertising and marketing services revenue totaled $49 million, representing 74% of total advertising revenue [6][16] - Amplified Digital Agency revenue grew by 10% year-over-year, highlighting the company's competitive position in the digital marketing space [1][2] - The number of digital-only subscribers reached 670,000, contributing $23 million in revenue, a 13% increase over the prior year [6][16] Debt and Cash Flow - The company has $455 million in outstanding debt with favorable terms, including a fixed annual interest rate of 9.0% and no fixed principal payments [5][10] - Cash on the balance sheet totaled $14 million, resulting in a net debt of $441 million after accounting for cash [10][20] - Capital expenditures for the quarter were $1 million, with expectations of up to $5 million for FY25 [10][20]

Core Insights - Lee Enterprises reported a total operating revenue of $137 million for the second quarter of fiscal 2025, with digital revenue accounting for 53% of this total at $73 million, reflecting a 3% increase year-over-year [2][9] - Digital-only subscription revenue grew by 20% year-over-year, reaching $24 million, with a total of 728,000 digital-only subscribers [2][9] - The company faced challenges due to a cyber security incident in February, incurring $2 million in restoration costs and impacting advertising revenue [4][9] Financial Performance - Total operating revenue was $137 million, down from $146.55 million in the same quarter last year [9][16] - Operating expenses totaled $143 million, which included $2 million related to cyber restoration costs, marking a 6% decrease compared to the prior year [9][16] - The net loss for the quarter was $12 million, with an Adjusted EBITDA of $8 million [9][18] Digital Transformation - Digital subscription revenue increased by 20% on a same-store basis, indicating strong growth in the digital segment [3][9] - Amplified Digital Agency revenue reached $25 million, up 9% year-over-year, showcasing the effectiveness of the company's digital marketing services [2][3] - The company launched an AI solution aimed at supporting local businesses in adapting to the evolving advertising landscape [5] Cost Management - Lee Enterprises executed $40 million in annualized cost reductions during the second quarter to address near-term challenges [6] - The company anticipates improving year-over-year trends in Total Digital Revenue for the third and fourth fiscal quarters of FY25 [6] Debt and Cash Flow - The company has $453 million in outstanding debt under a favorable credit agreement with BH Finance, which includes a fixed annual interest rate of 9.0% [8][14] - Cash on the balance sheet totaled $5 million, with debt net of cash amounting to $448 million [14]