Gray Media (GTN) investor relations material

Executive summary

• Second quarter 2026 revenue was $839 million, up 9% year-over-year, exceeding guidance, with political advertising and retransmission revenues both outperforming expectations.

• Revenue for the six months ended June 30, 2026, increased 3% year-over-year to $1.61 billion, driven by acquisitions and a surge in political advertising.

• Multiple acquisitions and a major market swap closed, expanding scale and market presence, with stations added in up to 22 markets.

• Net income attributable to stockholders was $21 million for Q2 2026, while the net loss for the six months narrowed to $12 million.

• Integration of acquisitions and investments in local news, sports, and digital platforms are ongoing, with expanded local sports coverage.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $214 million, up 27% year-over-year.

• Net retransmission revenue was $150 million in Q2 2026, up 10% year-over-year, above guidance, despite a temporary blackout.

• Political advertising revenue reached $83 million in Q2 2026, up from $9 million in Q2 2025.

• Operating income for Q2 2026 was $136 million, up from $82 million in Q2 2025.

• Broadcast expenses before D&A were $569 million in Q2 2026, up $6 million year-over-year, including $30 million from new transactions.

Outlook and guidance

• Q3 2026 revenue guidance is $935–$965 million, with political advertising expected between $165–$185 million.

• Core advertising for Q3 is guided to be flat year-over-year as reported, with a mid-single digit decline excluding acquisitions.

• Full-year 2026 guidance includes interest expense of $440 million, capital expenditures of $120–$130 million, and income tax payments of $80–$100 million.

• All incremental political cash flow will be used to reduce debt.

• Management expects sufficient liquidity from cash, operations, and credit facilities to meet obligations for the next twelve months and foreseeable future.