Gray Media Q2 revenue falls 7%, but beats estimates

Gray Media

08/08/2025 11:13

Corrects to say "net loss attributable to common stockholders" in Overview and Key Details sections, and removes comparison with estimates in Key Details

Overview

Gray Media Q2 revenue falls 7% yr/yr, but beats analysts' expectations

Net loss attributable to common stockholders of $69 mln due to cyclical decrease in political advertising revenue

Adjusted EBITDA declines, impacted by reduced political advertising revenue

Outlook

Company expects Q3 core advertising revenue to decline due to effects of Olympics in year-ago period

Gray forecasts Q3 political advertising revenue at $6 mln to $7 mln

Company anticipates full-year interest expense of $460 mln

Gray sees full-year capital expenditures excluding Assembly Atlanta at $85 mln to $90 mln

Result Drivers

POLITICAL ADVERTISING - Revenue decreased by 81% due to the off-year in the political advertising cycle

NETWORK AFFILIATION LOSS - Non-cash impairment of $28 mln due to non-renewal of CBS network affiliation at WANF station

COST OPTIMIZATION - Efforts to optimize cost structure and improve local content offerings, particularly in sports broadcasting

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$772 mln
$766.30 mln (6 Analysts)
Q2 Net Income Attributable to Common Stockholders
Miss
-$69 mln
Q2 Pretax Profit
Miss
-$35 mln
-$29.60 mln (4 Analysts)
Q2 Operating income
$82 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the broadcasting peer group is "hold."

Wall Street's median 12-month price target for Gray Media Inc is $6.00, about 31% above its August 7 closing price of $4.14

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX8x8Dxq

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)