Lee Enterprises
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Lee Enterprises (LEE) investor relations material

Lee Enterprises Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary10 Feb, 2026

Executive summary

  • Q1 Adjusted EBITDA increased 61% year-over-year to $12.3 million, driven by digital transformation and disciplined cost management.

  • Digital revenue now comprises 54% of total revenue, up from 21% in FY2020, with digital-only subscription revenue growing 5.3% to $22.7 million.

  • Completed a $50 million equity investment at $3.25 per share, materially strengthening the balance sheet and supporting digital transformation.

  • Amended credit agreement reduced interest rate on $455 million in debt from 9% to 5% for five years, generating $18 million in annual interest savings.

  • Net loss improved to $5.1 million from $16.2 million year-over-year, reflecting cost reductions and insurance reimbursements.

Financial highlights

  • Q1 FY26 total revenue was $130.1 million, with digital revenue at $70.3 million (54% of total), and digital-only subscription revenue at $22.7 million, up 5.3% year-over-year.

  • Adjusted EBITDA margin improved to 9.4% from 5.3% in the prior year.

  • Cash costs declined $17 million or 13% year-over-year, driven by reduced headcount and legacy print costs.

  • Digital advertising and marketing services revenue was $42.8 million, representing 71% of total advertising revenue.

  • Print subscription revenue declined 19.3% year-over-year to $35 million.

Outlook and guidance

  • Fiscal 2026 Adjusted EBITDA is expected to grow in the mid-single digits year-over-year.

  • Confident in achieving 2030 target of $450 million digital revenue and 90% digital revenue mix.

  • Digital gross margin is projected to surpass SG&A costs in FY27, nearing digital sustainability.

  • Management expects continued improvement in operating results and liquidity, supported by cost controls and the recent capital raise.

  • Capital expenditures for FY26 projected up to $5 million; no pension contributions anticipated.

How does $90M interest savings fuel digital growth
Strategy to re-accelerate digital-only subscriber growth?
Status of remaining cyber insurance claims
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Frequently asked questions

Lee Enterprises, Incorporated provides local news and information, and advertising services in the United States. It offers profile of local communities; information on local decisions made by elected officials; events in the community, such as school lunch menus, school boards, and city councils; obituaries of residents; photos of local events; classifieds of items to sell or buy; and coupons offering savings on products and services. The company also provides national content covering topics, such as breaking national news; sports scores and stories; stock market reports; and information on celebrities, including news and photos. The company was founded in 1890 and is based in Davenport, Iowa.

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