Gray Media (GTN) investor relations material

Executive summary

• First quarter 2026 revenue reached $768 million, at the high end of guidance, with core and political advertising both exceeding expectations, though total revenue was down 2% year-over-year due to retransmission declines.

• Net loss attributable to common stockholders was $33 million, compared to $22 million in Q1 2025; adjusted EBITDA was $154 million.

• Major retransmission consent renewals were completed, but net retransmission revenue declined due to a resolved distribution dispute and subscriber losses.

• Multiple acquisitions closed or were announced in Q1 and May 2026, expanding the station portfolio and market presence.

• Operating expenses decreased year-over-year, while corporate expenses rose due to transaction-related costs.

Financial highlights

• Political advertising revenue was $30 million, up 15% from Q1 2022, and core advertising revenue increased by $8 million year-over-year.

• Digital revenue grew by high teens percentage year-over-year; local direct business grew 15%.

• Net retransmission revenue declined $4 million year-over-year and was impacted by a distribution dispute.

• CapEx for Q1 2026 was $19 million, up from $15 million in Q1 2025; full-year CapEx guidance remains $140 million.

• Adjusted EBITDA for Q1 2026 was $154 million, down 4% year-over-year.

Outlook and guidance

• Q2 2026 total revenue is expected between $780 million and $800 million, with core ad revenue projected to decline mid-single digits year-over-year.

• Q2 political revenue is guided at $60–$70 million.

• Broadcasting expenses for Q2 2026 are guided to be down 3% at the midpoint versus Q2 2025.

• Net retransmission revenue for 2026 is expected to show low single-digit growth, with all major renewals completed.

• Full-year tax guidance lowered by $25 million to $90–$110 million.