Gray Media (GTN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $782 million, down 5% year-over-year but above guidance, with net loss ranging from $9 million to $22 million compared to net income in Q1 2024.

• Adjusted EBITDA was $160 million, down from $197 million in Q1 2024, mainly due to lower political advertising.

• Political ad revenue was $13 million, down year-over-year but exceeded expectations, driven by key races.

• The company operates 113 television markets, reaching 37% of US TV households, and owns significant digital and production assets.

• Continued focus on local content, sports rights expansion, and recognition for journalistic excellence.

Financial highlights

• Core advertising revenue was $344 million, down 8% year-over-year, impacted by category softness and network mix.

• Retransmission consent revenue was $379 million, down slightly year-over-year but above guidance.

• Operating expenses before depreciation and amortization were below guidance; cost containment exceeded $60 million annualized run-rate.

• Reduced outstanding indebtedness by $17 million in Q1 2025; total liquidity at quarter-end was $1.0 billion.

• Declared $0.08 per share quarterly dividend.

Outlook and guidance

• Q2 2025 core ad revenue expected to decline mid-single digits year-over-year due to macroeconomic uncertainty.

• Expenses guided to remain below inflationary levels; digital and local customer growth expected to continue.

• Political ad revenue remains a bright spot with early spending for future elections.

• Management expects routine capital expenditures of $70–$75 million for the remainder of 2025.

• Uncertainty in macroeconomic conditions and advertiser hesitancy continue to impact forecasts.