Gannett Q2 Profit Surges to $78.39M on Tax Benefits, Revenue Down 8.6%

Gannett Co. reported Q2 earnings of $78.39 million, a significant increase from $13.75 million last year, driven by tax benefits. Revenues declined 8.6% to $584.86 million, and same-store revenues dropped 6.4%. The company plans to repay $135 million of debt by year-end and expects Total Adjusted EBITDA growth in the back half of the year. Shares are up 8.07% to $3.95.

Gannett Co., Inc. (NYSE: GCI) reported its financial results for the second quarter ended June 30, 2025, showcasing significant improvements across key financial metrics. The company's net income attributable to Gannett increased to $78.4 million, a substantial jump from $13.75 million in the same period last year. This growth was primarily driven by tax benefits [1].

Total revenues declined 8.6% to $584.9 million, while same-store revenues dropped 6.4%. However, Gannett's digital advertising trends showed notable improvement, increasing by 4% in the second quarter compared to a decline in the first quarter. The company expects digital advertising trends to continue improving in the third quarter [1].

To support long-term growth objectives, Gannett is implementing a targeted annualized expense reduction program of approximately $100 million. This initiative aims to create a lower and more variable cost structure, positioning the company to increase its margins and deliver Total Adjusted EBITDA growth in the back half of the year and for the full year of 2026 [1].

The company also made notable progress in its debt repayment efforts. During the first six months of 2025, Gannett repaid approximately $100 million of debt, and it expects to exceed its initial projections by repaying over $135 million by the end of 2025. Additionally, Gannett is leveraging AI initiatives to protect its content and expand monetization opportunities [1].

Gannett's stock price reacted positively to the earnings report, with shares up 8.07% to $3.95 as of July 2, 2025 [1].

References:
[1] https://www.businesswire.com/news/home/20250731715481/en/Gannett-Announces-Second-Quarter-2025-Results-Updated-Business-Outlook-%24100-Million-Cost-Reduction-Program