Lee Enterprises Q4 2025 Earnings Loss Narrows 37.2% to $1.02 per Share

Lee Enterprises (LEE) reported Q4 2025 earnings on November 26, 2025, with a revenue miss and narrowed losses. The company delivered a 37.2% improvement in per-share losses year-over-year, though revenue declined 12.8% to $126.35 million. Management reiterated mid-single-digit adjusted EBITDA growth guidance for 2026, signaling cautious optimism amid digital transformation efforts.

Revenue

Lee Enterprises’ total revenue fell 12.8% to $126.35 million in Q4 2025, down from $144.88 million in the prior year. The decline was driven by a 3% drop in digital revenue to $74 million and an 8% print revenue contraction to $65 million. Digital-only subscription revenue, however, rose 16% year-over-year to $94 million, reflecting robust growth in its 633,000 subscriber base.

Earnings/Net Income

The company narrowed its net loss to $5.83 million in Q4 2025, a 38.5% improvement from $9.48 million in 2024. Per-share losses decreased to $1.02 from $1.63, indicating progress in cost management. The 37.2% reduction in per-share loss highlights progress, though the company remains unprofitable.

Post-Earnings Price Action Review

The strategy of purchasing Lee Enterprises shares following the Q4 revenue decline and holding for 30 days underperformed significantly. With a return of -65.00% against a benchmark of 69.43%, the approach yielded an excess return of -134.43%. The strategy’s CAGR of -29.66% and a Sharpe ratio of -0.42% underscored its high-risk, negative-return profile. Despite a 0.00% maximum drawdown, the stock’s post-earnings volatility and sustained declines—11.24% in a single trading day and 15.36% month-to-date—highlighted investor skepticism.

CEO Commentary

Kevin Mowbray emphasized Lee’s 53% digital revenue contribution ($298 million) in fiscal 2025, driven by 16% same-store growth in digital subscriptions and Amplified Digital Agency’s $100 million revenue. He reiterated disciplined cost management in print and corporate overhead, enabling reinvestment in digital initiatives. Challenges, including the February 2025 cyber incident, were acknowledged, but Mowbray expressed confidence in achieving $450 million in digital revenue by 2030 through AI-powered tools, hyper-local content, and scalable digital platforms.

Guidance

Lee Enterprises outlined ambitious targets: $450 million in digital revenue by 2030, $175 million in recurring digital subscription revenue (1.2 million subscribers), and $250 million in digital advertising revenue. CFO Tim Millage projected mid-single-digit adjusted EBITDA growth in 2026, supported by $40 million in annualized cost reductions and $121 million in cumulative debt reduction since 2020.

Additional News

Lee Enterprises announced a $50 million common stock rights offering to fund digital transformation and deleveraging, with expected $18 million in annual interest savings. The company also disclosed CFO Tim Millage’s departure in early 2026, introducing leadership uncertainty. A February 2025 cyber incident disrupted operations, costing $12 million in revenue and $8 million in Adjusted EBITDA for the fiscal year. These developments underscore both strategic momentum and operational risks as Lee navigates its digital-first transition.

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