How did LEE's revenue and expenses trend in Q1 2025?

**Lee Enterprises Inc. (LEE) experienced a notable digital growth trajectory in Q1 2025**, which was a key highlight amidst challenging revenue dynamics: 1. **Digital Growth Highlights**: - Total Digital Revenue: LEE achieved $302 million in digital revenue over a trailing 12-month period, with a 5% year-over-year growth in Q1 2025. - Digital Subscription Revenue Growth: This segment saw a robust 40% annual increase in Q1 2025. - Amplified Digital Agency Revenue Growth: This grew by 14% year-over-year in Q1 2025. - Gross Margin: The company maintained a strong digital gross margin of 70%. 2. **Strategic Initiatives**: LEE is focusing on cost management and efficiency improvements, with plans to execute $40 million in annual cost reductions by the end of Q2 2025. 3. **Financial Performance Challenges**: - Total Operating Revenue: LEE reported $145 million in operating revenue for Q1 2025, which indicates that other revenue streams are facing challenges. - Net Loss: The company reported a net loss of $16.7 million for Q1 2025, compared to a profit of $0.6 million in the same period the previous year. - Earnings Per Share (EPS): LEE reported an EPS loss of $2.07 for Q1 2025, missing analysts’ expectations of a $0.58 loss. 4. **Expense Management**: Operating expenses were flat from the previous year at $149 million, with cash costs down only 1% in Q1 2025. 5. **Cash Flow and Liquidity**: At the end of Q1 2025, LEE had $6 million in cash and $440 million in debt, which could be a concern for liquidity and financial flexibility. In conclusion, LEE's Q1 2025 performance shows resilience in digital growth, but it also reflects ongoing challenges in traditional revenue areas and the need for effective cost management to sustain financial health.