Core Insights - Lee Enterprises reported a significant growth in Adjusted EBITDA of $5 million, representing a 61% year-over-year increase, positioning the company favorably for fiscal 2026 [1][3] - The company secured a $50 million equity investment, enhancing its financial stability and supporting its digital transformation efforts [3][4] - The interest rate on outstanding debt was reduced from 9% to 5%, expected to save approximately $18 million annually, totaling up to $90 million over five years [3][6] Financial Performance - For the first quarter ended December 28, 2025, total operating revenue was $130 million, with digital revenue accounting for $70 million, or 54% of total revenue [5][15] - Digital-only subscription revenue reached $23 million, up 5% year-over-year, with a total of 609,000 digital-only subscribers [5][15] - Operating expenses totaled $126 million, reflecting a 16% decrease compared to the previous year, while cash costs decreased by 13% to $121 million [5][17] Debt and Capital Structure - The company has $455 million of debt outstanding, with favorable terms including a 25-year maturity and no fixed principal payments [6][10] - The recent $50 million private placement of common stock led to amendments in the credit agreement, significantly lowering the interest rate on the term loan [6][19] - The company anticipates a net loss of $5 million for the quarter, but Adjusted EBITDA was reported at $12 million, an increase of $5 million from the prior year [5][13] Strategic Outlook - The company aims for mid-single-digit Adjusted EBITDA growth year-over-year for fiscal 2026, supported by its Three Pillar Digital Growth Strategy [4][5] - The focus remains on building durable, recurring revenue streams while managing costs associated with legacy revenue [3][4] - The company expects to receive additional reimbursements from its insurance carrier related to a previous cyber event, which will further support financial performance [3][5]