Lee Enterprises swings to profit in Q3 on cost controls, lower interest expense

Lee Enterprises

06/08/2026 12:39

Overview
U.S. digital news platform's preliminary fiscal Q3 revenue fell yr/yr as print declines continued
Net income turned positive at $5 mln, driven by cost cuts and lower interest expense
Fiscal Q3 adjusted EBITDA grew 23% yr/yr; company raised 2026 adjusted EBITDA growth outlook

Outlook
Lee Enterprises raises FY26 Adjusted EBITDA outlook to 22%-28% YOY growth
Company expects up to $7 mln in capital expenditures in FY26
Lee Enterprises expects FY26 cash paid for income taxes between $3 mln and $9 mln

Result Drivers
COST MANAGEMENT - Co said disciplined cost management and operational improvements drove margin expansion and profitability
LOWER INTEREST EXPENSE - Net income in the quarter was driven by continued Adjusted EBITDA growth and lower interest expense following February’s strategic investment
DIGITAL INVESTMENTS - Co said ongoing investment in digital products, technology and journalism supported long-term digital growth

Company press release: ID:nGNX2Ld4kj

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.21
 
Q3 Net Income
 
$5.17 mln
 
Q3 Operating Expenses
 
$118.26 mln
 
Q3 Operating Income
 
$8.63 mln
 
Q3 Pretax Profit
 
$6.57 mln
 

Reuters Recommended Reads
Aug 5 - New York Times Q2 revenue beats on digital subscription growth
Aug 5 - News Corp Q4 revenue beats on overall segment growth
Aug 5 - Thomson Reuters lifts full-year revenue forecast with focus on AI rollout

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)