NYSE: GTN Gray Media, Inc. Quarterly Investor Update February 26, 2026 Reflects Q4 2025 and 2025 Full-Year Results Gray Media, Inc. A multimedia company headquartered in Atlanta, Georgia, Gray Media, Inc. ("Gray Media," "Gray," or the "Company") owns local television stations and digital assets serving 114 television markets that collectively reach approximately 37 percent of US television households. The portfolio includes 77 markets with the top-rated television station and 97 markets with the first and/o ...

Core Advertising Revenue - Local Media division core advertising revenue increased by 2% in Q3, driven by services category and national advertising growth due to strong sales execution and Scripps' sports strategy [1] - The company anticipates strong core revenue growth in Q4, supported by a new agreement with the NHL's Tampa Bay Lightning and growth in live sports markets [1] Financial Performance - E.W. Scripps reported a revenue decline of 18.6% year-on-year to $525.9 million in Q3, meeting Wall Street's expectations [2][6] - Free Cash Flow was -$15.07 million, down from $127.4 million in the same quarter last year [2] - Operating margin decreased to 7.2%, down from 18.8% in the same quarter last year [2][9] Revenue Growth and Projections - Over the last five years, E.W. Scripps experienced a sluggish sales growth rate of 6.5% compounded annually, which is below the standard for the consumer discretionary sector [4] - Analysts project a further revenue decline of 1.5% over the next 12 months, indicating a lack of excitement regarding the company's newer products and services [6] Cost Management and Profitability - The Scripps Networks division achieved a 27% margin, aided by a 7% reduction in expenses [1] - Despite a higher efficiency reflected in the operating margin averaging 7.5% over the last two years, the company still faces challenges with profitability [8] Strategic Moves - Scripps announced the sale of two network-affiliated stations for total proceeds of $123 million, aligning with its strategy to optimize its portfolio and improve local station performance [1] - The company successfully closed on the placement of $750 million in new senior secured second-lien notes, which were used to pay off existing debt [1]

Core Viewpoint - Gray Media, Inc. is set to release its earnings results for the quarter ended September 30, 2025, on November 7, 2025, and will host a conference call to discuss these results [1]. Group 1: Earnings Announcement - Gray Media, Inc. will announce its earnings results for Q3 2025 on November 7, 2025 [1]. - A conference call and webcast will be held on the same day at 11:00 a.m. Eastern Time to discuss the operating results [1]. - The live dial-in number for the conference call is 1-800-715-9871, with a conference ID of 3663076 [1]. Group 2: Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations and digital assets in the U.S., serving 113 television markets [2]. - The company reaches approximately 37 percent of U.S. television households, with 78 markets having the top-rated television station [2]. - Gray Media also owns the largest Telemundo Affiliate group with 44 markets and operates Gray Digital Media, a full-service digital agency [2].

Financial Performance - Gray Media's 2Q25 total revenue exceeded guidance, reaching $772 million [9] - Core advertising revenue for 2Q25 was $361 million, a 3% decline [9] - Retransmission revenue for 2Q25 was $369 million, aligning with guidance [9] - Adjusted EBITDA for the six months ending June 30, 2025, was $329 million [11] - The company reduced debt principal by $22 million in 2Q25 [12] Debt and Leverage - As of 2Q25, Gray Media's leverage ratio was 560x [12] - First lien leverage ratio at 2Q25 was 299x [12] - Total outstanding principal secured by a first lien as of June 30, 2025, was $3112 billion [15] - Adjusted Total Indebtedness was $5460 billion as of June 30, 2025 [15] Strategic Initiatives - Gray Media is focused on a multi-pronged deleveraging approach, including refinancing and debt reduction [21] - The company issued 9625% 2L Secured Notes to extend portfolio duration and reduce 1L leverage [23]

Group 1 - Gray Media stations and InvestigateTV received awards for outstanding investigative journalism at the IRE annual conference [1][2] - WANF in Atlanta and InvestigateTV won Video Division II for their investigation "In Plane Sight: The Fix," which led to significant changes in the US Department of Justice's practices [2] - WSMV in Nashville won Video Division III for "Predator: System Failure," revealing serious flaws in the handling of sexual assault complaints and resulting in the arrest of a predator [2] - KMOV in St. Louis was a finalist in Video Division III for "Secrets of a School Shooting Revealed," uncovering critical information about a school shooting and the failures that allowed it to occur [2] Group 2 - Gray Media, Inc. is the largest owner of local television stations in the US, serving 113 television markets and reaching approximately 37% of US television households [3] - The company operates 78 markets with top-rated television stations and has the largest Telemundo Affiliate group with 44 markets [3] - Gray Media also includes Gray Digital Media, which provides advanced digital marketing strategies, and owns various video production companies and studio facilities [3]

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]