Gray Media 2025 Q3 Earnings EPS Beats Estimates Amid Revenue Decline

Gray Media (GTN) reported Q3 2025 results on Nov 8, 2025, with a $0.24 per-share loss, outperforming expectations of a $0.48 loss. Total revenue fell 21.2% to $749 million but met the high end of guidance. The company revised 2025 Q4 core advertising revenue guidance upward to low single-digit growth.

Revenue

Core advertising revenue totaled $355 million, while retransmission consent fees contributed $346 million. Political advertising generated $8 million, and production companies added $25 million. Additional segments accounted for $15 million, bringing the total revenue to $749 million.

Earnings/Net Income

The EPS of -$0.24 marked a strong beat, reflecting improved profitability despite a 21.2% revenue decline.

Post-Earnings Price Action Review

The stock experienced mixed reactions post-earnings, with a 2.61% premarket dip to $4.48 followed by a 4.13% close at $4.60. While the narrower-than-expected loss signaled resilience, concerns lingered over the revenue decline and conservative Q4 guidance. Gray Media’s 2026 outlook hinges on political advertising and strategic M&A, but short-term volatility remains elevated due to 46 price swings exceeding 5% in the past year. A 30-day holding period is advised to assess the impact of these factors on the stock’s trajectory.

CEO Commentary

CEO Hilton Howell highlighted a $23 million net loss but emphasized beating revenue and expense guidance. Strategic priorities include M&A to enter six new markets and create 11 duopolies, alongside balance sheet improvements via $900 million in new debt and a $750 million credit facility expansion.

Guidance

2025 Q4 core advertising revenue is projected to grow low single digits. Full-year 2025 cash taxes are expected at $39 million, with capital expenditures reduced to $70-75 million.

Additional News

Gray Media announced six new market acquisitions and 11 duopoly creations to bolster its footprint. The company declared a $0.08 quarterly dividend, payable Dec 31. Recent insider activity included a $46,000 share purchase by CFO Jeff Gignac and a $116,460 sale by Richard Lee Boger.

M&A and Strategic Moves

Gray’s Q3 M&A activity includes a historic station swap and three acquisitions, expanding into six new markets. These transactions aim to strengthen its balance sheet and operational scale, with regulatory approvals pending. The company also renewed FOX affiliation agreements in 27 markets and transitioned Atlanta’s WANF to an independent station, boosting local programming by 25.5 hours.

Financial Flexibility

Refinancing efforts included issuing $900 million in 9.625% notes and upsizing its credit facility to $750 million. These moves extended debt maturities until 2028, enhancing liquidity to $900 million.

Long-Term Outlook

With 2026 political ad revenue potential and 11 new duopolies in the pipeline, Gray aims to leverage growth drivers. However, near-term challenges include retransmission revenue declines and macroeconomic headwinds. Investors should monitor debt reduction progress and M&A integration.