Lee Enterprises (LEE) Q4 2024 earnings summary

Executive summary

• Digital revenue reached 51% of Q4 revenue and 49% of FY24 revenue, surpassing print and marking a major digital transformation milestone.

• Digital subscription revenue grew 41% year-over-year, with Amplify Digital Agency revenue nearing $100 million annually.

• FY24 total operating revenue was $611M, with digital revenue up 11% to $299M and print revenue down 21%.

• Despite digital gains, FY24 net loss widened to $23.6M, and Adjusted EBITDA was $65M.

• Forged new AI partnerships with Perplexity, ProRata AI, and AWS to drive innovation and revenue.

Financial highlights

• $82 million in cost savings achieved in 2024 through business transformation efforts.

• Digital gross margin stands at 72%, with a 13% CAGR since 2021.

• FY24 Adjusted EBITDA was $65M; Q4 Adjusted EBITDA was $17M.

• Asset sales exceeded $13M in 2024, with $25M in non-core assets identified for monetization.

• Net debt at year-end was $436M, with $10M cash on hand.

Outlook and guidance

• Targeting total digital revenue of over $450 million by 2028, with 1.2 million digital subscribers.

• FY25 digital revenue expected to grow 7–10% year-over-year; Adjusted EBITDA projected to grow in the low single digits.

• Digital gross margin is forecast to exceed SG&A costs by FY26.

• FY25 capital expenditures expected to be ~$12M; cash taxes between $4M and $10M.