Lee Enterprises Q3 2025 Earnings: Digital Growth, Print Decline, and Financial Recovery

Lee Enterprises Inc reported Q3 2025 earnings with a net loss of $2 million, missing estimates, and revenue of $141 million, below expectations. Digital revenue reached $78 million, representing 55% of total revenue, and digital-only subscription revenue increased by 16% YoY. Adjusted EBITDA rose 1% to $15 million, and operating expenses decreased by 6% to $137 million. The company has been able to fund all principal and interest payments through organic free cash flow since May 2025, marking a significant milestone in its financial recovery.

Lee Enterprises Inc. (NASDAQ: LEE) reported its third-quarter 2025 earnings, revealing a net loss of $2 million while falling short of analysts' estimates. The company's total operating revenue stood at $141 million, down from $147.3 million in the same period last year. Despite these challenges, Lee Enterprises showcased significant progress in its digital transformation strategy.

Digital revenue reached $78 million, accounting for 55% of total revenue, up from 51% in the first quarter of 2025. This growth was driven by a 16% year-over-year increase in digital-only subscription revenue. The company's AI-powered tools, such as SmartSuite and AWS partnerships, have significantly boosted digital engagement, leading to a 28% higher average revenue per user and 85% adoption of hyper-personalization features [2].

Adjusted EBITDA rose by 92% quarter-over-quarter to $15 million, despite a 1% year-over-year increase. Operating expenses decreased by 6% to $137 million, reflecting the company's cost-cutting measures. Notably, Lee Enterprises has successfully funded all principal and interest payments through organic free cash flow since May 2025, marking a significant milestone in its financial recovery [1].

However, the company continues to face challenges. Total operating revenue declined by 6.2% year-over-year, with print subscription revenue falling by 20%. The company's net loss narrowed to $1.7 million from $3.7 million in the year-ago period, indicating improved bottom-line performance despite top-line pressure.

Lee Enterprises aims to achieve $450 million in digital revenue by 2028 through AI-driven advertising and subscription growth. The company's debt remains substantial at $455 million, but the favorable terms of its credit agreement with BH Finance provide some relief [1].

The company's CEO, Kevin Mowbray, expressed optimism about the quarter's strong results, stating that they are on track to meet their second-half guidance for year-over-year growth in both total digital revenue and Adjusted EBITDA [1].

References:
[1] https://www.stocktitan.net/news/LEE/lee-enterprises-reports-third-quarter-adjusted-ebitda-xfff0ivkkk2v.html
[2] https://www.ainvest.com/news/lee-enterprises-q3-2025-earnings-navigating-digital-transformation-ai-driven-growth-long-term-2508/