Gray Media 2025 Q3 Earnings Revenue Beats Guidance, Net Loss Widens

Gray Media (GTN) reported Q3 2025 earnings on Nov 8, 2025, with revenue of $749 million, meeting the high end of guidance, but net income swung to a $0.24 loss per share, a 127.6% decline from $0.87 in 2024 Q3. The company’s results highlight a stark contrast between revenue performance and profitability, driven by cyclical declines in political advertising and retransmission consent revenue.

Revenue

Core advertising revenue totaled $355 million, while retransmission consent revenue reached $346 million, both exceeding guidance. Political advertising revenue, though modest at $8 million, outperformed expectations. Production companies contributed $25 million, and other revenue segments added $15 million. The overall revenue decline of 21.2% year-over-year underscores challenges in core advertising and retransmission markets.

Earnings/Net Income

The company swung to a net loss of $10 million in Q3 2025, reflecting a 110.4% deterioration from the $96 million net income in 2024 Q3. The EPS loss of $0.24 marked a 127.6% negative change, signaling significant margin pressure.

Post-Earnings Price Action Review

The strategy of buying Gray Television (GTN) when revenues beat expectations and holding for 30 days showed favorable performance based on the provided data. Here’s a detailed analysis: Recent Performance: GTN's recent report of beating revenue expectations with a 16.7% beat in adjusted EBITDA, despite a 21.2% year-over-year sales decline, has positively influenced investor sentiment. The stock closed up 4.2% at $4.82 on the day of the earnings release. Market Reaction and Outlook: The market initially reacted with a mixed response, as evidenced by premarket trading activity. While the last close was higher, premarket trading saw a decline, indicating potential volatility in the short term. However, the company’s optimistic outlook for 2026, focusing on expanding local news and sports content, along with expected significant political advertising revenue, suggests a positive long-term prospect. Historical Volatility: GTN’s shares have been highly volatile, with 46 days experiencing moves greater than 5% over the past year. This volatility indicates significant price swings are possible even over a relatively short holding period. Potential Risks: While the company’s profitability beat expectations, the revenue guidance for the next quarter was below estimates, which could lead to downward pressure on the stock if realized. The company’s historical performance shows variability, with a significant miss of analysts’ EPS estimates in the previous quarter, which might be a concern for investors. Conclusion: The strategy of buying GTN on earnings beats and holding for 30 days can be attractive given the recent positive developments and the potential for long-term growth. However, investors should be mindful of the stock’s volatility and the risks associated with revenue guidance misses. The positive earnings surprise and the potential for future growth in political advertising and content expansion support a cautious optimism for this strategy.

CEO Commentary

Hilton Howell, Executive Chairman & CEO, highlighted Gray Media’s Q3 2025 performance, noting revenue of $749 million met guidance high-end and operating expenses were $17 million below the low end, driven by cost discipline and TV station efficiency. He emphasized strategic priorities, including acquiring six new markets with #1-ranked stations, creating 11 Big Four duopolies, and strengthening the balance sheet via July financing. Howell underscored investments in local content, such as the Atlanta station’s 25.5-hour news expansion and a Google Cloud-powered streaming platform launching in January 2026. He expressed optimism about 2026, citing political spending cycles, renewed sports affiliations, and local news preservation as growth drivers.

Guidance

Gray Media reported Q3 2025 revenue of $749 million and adjusted EBITDA of $162 million, with a net loss of $23 million. For Q4 2025, core ad revenue is expected to grow low single digits, supported by easier political comparables and strengthening categories like legal and financial services.

Additional News

Gray Media announced significant M&A activity in Q3 2025, including agreements to enter six new markets and create 11 new Big Four duopolies. These transactions, pending regulatory approvals, aim to strengthen the company’s market footprint and balance sheet. CEO Hilton Howell emphasized the strategic value of these acquisitions in enhancing local content and operational efficiency. Additionally, the company declared a quarterly dividend of CAD 0.08 per share, payable Dec. 31, reflecting ongoing commitments to shareholder returns. The dividend follows a period of strategic debt refinancing and cost optimization, which improved liquidity and positioned the company for future growth.