Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $792 million, exceeding the high end of guidance, while total operating expenses were $618 million, $5 million below the low end of guidance [8] - Net loss attributable to common stockholders was $23 million in Q4 2025, with Adjusted EBITDA at $179 million [9] - Broadcasting expenses declined by $41 million in Q4 2025 compared to Q4 2024, and on a full-year basis, broadcasting expenses decreased by $78 million, or about 3% [8] Business Line Data and Key Metrics Changes - Core advertising revenue increased by 3% compared to Q4 2024, with notable strength in services such as financial, health, and home improvement [16] - Political advertising revenue reached $12 million, surpassing expectations for an off-cycle period [9] - Digital revenue continued to grow in Q4, up low double digits, while new local direct business grew low single digits [16] Market Data and Key Metrics Changes - The Super Bowl generated $11 million on NBC affiliates in Q1 2026, compared to $9 million on FOX affiliates in 2025, with expectations for significant contributions from the Winter Olympics [18] - Q1 2026 guidance for political advertising revenue is projected to be $25 million-$30 million, compared to $26 million in Q1 2022 [19] Company Strategy and Development Direction - The company is focused on enhancing local content offerings and has made significant investments in new programming and partnerships, including a new series called Aging Un-told [11][12] - The company aims to strengthen its balance sheet and reduce leverage through M&A transactions and political revenue in 2026 [10][20] - The company is optimistic about the competitive landscape and the importance of consolidation in the industry to maintain local news [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in net retransmission revenue, indicating progress in creating a sustainable model [9][24] - The company anticipates a favorable political cycle in 2026, which is expected to enhance revenue opportunities [10][19] - Management acknowledged the challenges posed by competition from larger tech companies and emphasized the need for the industry to consolidate [33] Other Important Information - The company completed the acquisition of WBBJ-TV for $25 million and is working towards closing additional transactions [10] - The company has renewed its affiliation agreements with NBC and Telemundo, expanding its reach in key markets [14] Q&A Session Summary Question: Impact of Nexstar's potential deal on asset availability - Management indicated that if Nexstar's deal closes, it could change the competitive landscape and potentially influence their approach to larger transactions [29][32] Question: Trajectory of net retransmission revenue - Management confirmed that modest growth in net retransmission revenue is expected, with a focus on achieving a sustainable model [30] Question: Leverage and M&A opportunities - Management discussed ongoing conversations in the industry and the potential for further M&A to accelerate deleveraging [36][38] Question: Health of core advertising backdrop - Management noted that while Q1 is projected to be flat, there is optimism due to strong performance in February and upcoming political advertising [44][45] Question: NFL TV rights negotiations - Management expressed that extending NFL contracts is a positive for the industry, emphasizing the importance of keeping NFL broadcasts on traditional media [46][48] Question: Subscriber trends for retransmission - Management reported improvements in subscriber trends, with a slower rate of decline in traditional MVPDs [51] Question: AI implementation and cost efficiency - Management highlighted the efficiency gains from AI, comparing its impact to having additional interns, while ensuring human oversight on final products [62][66]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $792 million, exceeding the high end of guidance, while 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, with Adjusted EBITDA at $179 million [7] - Broadcasting expenses declined by $41 million in Q4 2025 compared to Q4 2024, and on a full-year basis, broadcasting expenses decreased by $78 million, or about 3% [6][7] Business Line Data and Key Metrics Changes - Core advertising revenue increased by 3% in Q4 2025 compared to Q4 2024, with notable growth in services such as financial, health, and home improvement [14] - Political advertising revenue reached $12 million, surpassing expectations for an off-cycle period [7] - Digital advertising continued to grow in Q4 2025, up low double digits, while local direct business grew low single digits [15] Market Data and Key Metrics Changes - The first quarter 2026 guidance for core ad revenue is expected to be flat compared to Q1 2025, with strong contributions anticipated from the Super Bowl and Winter Olympics [16] - Political ad revenue for Q1 2026 is projected to be between $25 million and $30 million, compared to $26 million in Q1 2022 [17] Company Strategy and Development Direction - The company is focused on enhancing local content offerings and has made significant investments in new programming and partnerships, including a renewed affiliation agreement with NBC for 54 markets [11][10] - The company is optimistic about closing several M&A transactions in early 2026, which are expected to reduce debt and leverage ratios [8][19] - The company is also transitioning digital platforms to the Quickplay platform powered by Google Cloud, aiming to improve viewer engagement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming political cycle in 2026, which is expected to drive significant revenue growth [8][17] - The company is addressing competitive pressures in the industry and believes that consolidation is necessary to maintain local news coverage [31] - Management highlighted the importance of returning to growth in net retransmission revenue as a sign of progress in creating a sustainable business model [7][22] Other Important Information - The company completed the acquisition of WBBJ-TV for $25 million and is working towards closing additional transactions [8] - The company reported a total liquidity of over $1.1 billion at the end of Q4 2025 [18] Q&A Session Summary Question: Impact of Nexstar's potential deal on asset availability - Management indicated that if Nexstar's deal closes, it could change the competitive landscape and potentially create opportunities for larger transactions [27][30] Question: Future trajectory of net retransmission revenue - Management confirmed that modest growth in net retransmission revenue is expected moving forward, with a focus on achieving a sustainable model [28] Question: Leverage and M&A opportunities - Management acknowledged that while current M&A deals will provide some deleveraging, further opportunities may arise depending on industry conditions and regulatory clarity [35][36] Question: Health of core advertising backdrop - Management noted that while Q1 2026 is expected to be flat, strong performance in February and upcoming political events provide optimism for growth [42] Question: NFL TV rights negotiations - Management views the potential reassessment of NFL TV rights as a positive for the industry, emphasizing the importance of maintaining NFL broadcasts for local affiliates [44][46] Question: Subscriber trends for retransmission revenue - Management reported improvements in subscriber trends, with a slower rate of decline in traditional MVPDs and increases in virtual MVPDs [49] Question: Update on Assembly Atlanta project costs - Management disclosed that the net cost of the Assembly Atlanta project is approximately $630 million as of the end of 2025 [54]

Core Insights - Gray Media and its stations received multiple prestigious awards for journalistic excellence, highlighting their commitment to impactful local journalism [1][4][11] Awards and Recognitions - Sandy Breland, Gray's Executive Vice President and COO, was awarded the 2025 John F. Hogan Distinguished Service Award by the Radio Television Digital News Association for her contributions to journalism [2][3] - Jeff Schlesser, news director at Gray's WWSB, received the 2025 RTDNA Loren Tobia Leadership Award for his leadership in local programming [3] - WANF in Atlanta won first place in the National Headliner Awards for the documentary "In Plane Sight: The Fix," which investigated abuses by Drug Enforcement Task Force Agents [5] - WAVE in Louisville secured third place in the same category for its documentary on the Old National Bank mass shooting [5] - InvestigateTV, Gray's national investigative unit, received second place for its report on automakers' data collection practices [6] - WANF and WVUE in New Orleans were nominated for the 46th annual News & Documentary Emmy Awards for their investigative stories [7][8] - WIBW in Topeka won the 2025 Celebration of Service to America Award for its mental health awareness campaign [9][10] Company Overview - Gray Media, Inc. is the largest owner of local television stations in the U.S., reaching approximately 37% of U.S. television households [12]