Gray Media (GTN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $782 million, down 5% year-over-year but above guidance; net loss ranged from $9 million to $22 million compared to net income of $75–$88 million in Q1 2024.

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

• Cost containment initiatives resulted in over $60 million annualized run-rate savings and year-over-year operating expense declines.

• Political ad revenue was $13 million, significantly above guidance for an off-cycle year.

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

Financial highlights

• Core advertising revenue was $344 million, down 8% year-over-year, impacted by Super Bowl network mix and one less selling day.

• Retransmission consent revenue was $379 million, down 1% year-over-year but above guidance.

• Production companies revenue was $27 million, up from $24 million in Q1 2024.

• Operating expenses before depreciation and amortization were below guidance and declined year-over-year.

• Net cash from operating activities was $132 million; cash at quarter-end was $210 million.

Outlook and guidance

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

• Expenses for Q2 2025 are guided to remain below inflationary levels.

• Full-year 2025 guidance: interest expense $450 million, capital expenditures (excluding Assembly Atlanta) $85–$90 million, income tax payments $30 million.

• Management expects routine capital expenditures of $70–$75 million for the remainder of 2025, with reimbursements from Assembly Atlanta.

• Political ad revenue remains a bright spot, with early spending for races up to 18 months out.