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- **Revenue & Profit Growth**: Q3 revenue of $749M exceeded guidance, with EBITDA of $162M and $8M political ad revenue beat. Operating expenses reduced by $17M below target.
- **M&A Expansion**: Acquired 6 new markets and created 11 duopolies, enhancing local news dominance. Atlanta station WANF added 25.5 hours of programming with strong advertiser response.
- **Balance Sheet Strength**: Total leverage improved to 5.7x, liquidity at $900M, and $0.08 dividend declared. CapEx reduced by $15M to $70-75M.
- **Streaming & Digital Innovation**: Launched Google Cloud-powered streaming platform in Q1 2026, renewing FOX affiliations and expanding sports portfolio.
- **Assembly Atlanta Potential**: $650M invested, with $25M reimbursement expected. Joint ventures and leases could generate significant ROI within 2 years.
- **2026 Outlook**: Core ad revenue growth expected, driven by sports renewals and political spending rebound post-midterm elections.

**【CEO Summary Section】**
- Total revenue for Q3 2025 was $749 million, at the high end of guidance. Operating expenses were $592 million, $17 million below the low end of guidance, driven by cost containment across stations.
- Adjusted EBITDA was $162 million, with political advertising revenue exceeding expectations at $8 million.
- Completed 6 new market M&A deals, creating 11 Big Four duopolies to strengthen local news presence. Board declared a $0.08 quarterly dividend.
- Launched a Google Cloud-powered streaming platform in January 2026 and renewed 27 FOX affiliations for 2 additional years.
- WANF (Atlanta station) added 25.5 hours of local programming, with strong advertiser reception and ratings growth.

**【CFO Financial Commentary】**
- GAAP net loss was $23 million, with strong cash flow and $900 million in liquidity. Total leverage ratio improved to 5.7x post-M&A transactions.
- Station-level operating expenses decreased $8 million YoY, reflecting company-wide cost management.
- Retransmission consent revenue declined 6% YoY, partially offset by network affiliation fee reductions. Full-year CapEx reduced by $15 million to $70-75 million.
- Assembly Atlanta project net investment reached $650 million, with potential for significant ROI through joint ventures and lease agreements.

**【Q&A Key Highlights】**
- **2026 Outlook**: Management expressed optimism for core ad revenue growth, citing renewed sports contracts (Hawks, Braves) and improved advertiser confidence post-political cycle.
- **Assembly Atlanta**: $25 million reimbursement expected in Q4, with plans to monetize through production deals and joint ventures. Potential to become largest cash flow generator within 24 months.
- **M&A Strategy**: Focused on sub-$200 million deals to deleverage and enhance portfolio. No immediate plans for large-scale transactions, but open to opportunities that align with local news preservation goals.
- **Political Spending**: Q4 2025 political ad revenue guided at $7-8 million, with expectations of significant increase in 2026 due to Democratic fundraising momentum post-midterm elections.
- **YouTube TV Dispute**: Frustration over lack of control in MVPD negotiations, but hope for resolution to avoid long-term affiliate disputes.


Gray Media, Inc. (GTN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GTN

GTN fundamentals

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