Gray Media (GTN) investor relations material

Executive summary

• Q3 revenue was $972M, up 30% YoY and above the $965M high end of revised guidance; Adjusted EBITDA was $319M, up 97%.

• Q3 political revenue reached $198M, a third-quarter election-year record; core advertising rose 1% as reported, while acquisitions contributed to revenue growth.

• Refinancing extended maturities, and planned debt reduction is expected to lower annual interest and preferred dividend costs by $40M–$50M.

Financial highlights

• Q3 net income was $78M versus a $10M loss; net income attributable to common stockholders was $66M versus a $23M loss. Adjusted EBITDA was $319M versus $162M.

• Nine-month revenue was $2.579B versus $2.303B; net income was $72M versus a $75M loss, and Adjusted EBITDA was $687M versus $491M.

• Q3 core advertising revenue was $358M, up 1%; political advertising was $198M, and net retransmission revenue was $150M.

• Q3 broadcasting expenses were $596M, up 10% YoY, with $52M attributable to acquisitions; corporate expense was $31M.

• Nine-month operating cash flow was $258M versus $177M; investing cash use was $372M versus $34M.

Outlook and guidance

• FY 2026 political revenue is expected at $630M–$640M; Q4 political revenue guidance is $319M–$329M.

• FY 2026 total revenue guidance is $3.695B–$3.720B; net retransmission revenue guidance is $594M–$597M.

• FY 2026 CapEx guidance was lowered to $110M–$120M; income-tax guidance was lowered to $75M–$80M.

• Q4 core advertising is expected to decline by low- to mid-single digits; early Q1 same-station core ad pacing was positive, with difficult comparisons from prior-year Winter Olympics and NBC Super Bowl revenue.

• Acquired-station expenses are expected to fall materially from $52M in Q3; integration was 75%–80% complete, with further savings expected through Q4 and Q1.