Gray Media 2025 Q2 Earnings Sharp Net Loss Amid Revenue Decline

Gray Media (GTN) reported its fiscal 2025 Q2 earnings on August 8, 2025, with revenue declining 6.5% year-over-year to $772 million, marking a significant miss relative to expectations. The company swung to a net loss of $56 million, representing a 354.5% deterioration from a $22 million net income in the prior year period. The earnings result highlighted structural challenges, with core segments like advertising and political revenue underperforming despite active M&A activity. The stock has seen volatile short-term price swings, reflecting investor uncertainty. The company's performance underscores the need for strategic cost discipline and execution amid evolving market dynamics.

Revenue
Gray Media’s second-quarter revenue totaled $772 million, a 6.5% decline from $826 million in the year-ago period. The core advertising segment contributed $361 million, while political advertising brought in $9 million, and retransmission consent revenue stood at $369 million. Production companies generated $18 million, and other revenue segments accounted for $15 million. While the political segment showed strength, the broader revenue mix reflected a challenging media landscape with declining ad spend and shifting consumer preferences.

Earnings/Net Income
Gray Media posted a net loss of $56 million in Q2 2025, swinging from a $22 million profit in the same period the prior year. On a per-share basis, the company reported a loss of $0.71, representing an 888.9% negative change from the $0.09 profit in 2024 Q2. The sharp deterioration in profitability highlights the pressure on margins amid a difficult operating environment. Despite cost management efforts, the combination of lower revenue and higher operational costs contributed to the significant net loss, signaling the need for strategic restructuring and tighter financial controls.

Post-Earnings Price Action Review
Post-earnings trading strategies have historically underperformed for Gray Media, with a CAGR of 0.00% and an excess return of -23.23% over the past three years. Holding shares after a revenue raise quarter has failed to yield positive returns, and the stock has faced considerable short-term volatility. The maximum drawdown stands at 0.00%, with a Sharpe ratio of 0.00%, indicating no risk-adjusted returns or meaningful downside protection. The stock’s short-term performance underscores the challenges of timing and positioning, with investor sentiment heavily influenced by macroeconomic and market conditions.

CEO Commentary
Hilton Hatchett Howell, Chairman and CEO, noted Q2 revenue of $772 million, down 7% year-over-year but exceeding internal guidance. He highlighted strong political advertising performance and active M&A activity, which added six new markets and 11 Big 4 duopolies. Howell emphasized strategic deleveraging, operational improvements, and expanded local news and sports offerings. He expressed optimism about the company’s balance sheet progress, new affiliations like KWTX, and the successful transition of WANF to an independent station. He stressed the importance of prudent growth and regulatory compliance, while maintaining a commitment to community service and journalistic excellence.

Guidance
For Q3 2025, Donald Patrick LaPlatney, President and Co-CEO, projected core advertising revenue to decline in the low to mid-single-digit range, with political spending expected to remain a performance driver. Digital revenue is anticipated to grow in the low double digits. Total operating expenses are expected to remain flat compared to Q2 2024. Jeff Gignac, CFO, confirmed that first lien leverage is projected to decrease by approximately 0.25x following announced M&A transactions, with total leverage at 5.6x. No material tax payments are expected for the remainder of 2025, supporting the company’s focus on financial discipline and long-term stability.

Additional News
Recent developments include a significant M&A strategy by Gray Media, which has engaged in transactions with Scripps, Sagamore, Block, and Allen Media, expanding its market presence and enhancing its Big 4 duopoly portfolio. C-level leadership remains stable, with the CEO and Co-CEO emphasizing strategic priorities. The company has not announced any new dividend or buyback programs, focusing instead on deleveraging and operational efficiency. Market participants have been closely watching Gray Media’s M&A activity, as well as its ability to execute its strategic vision in a competitive media landscape.