Gray Media (GTN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $772 million, down 7% year-over-year but above the high end of guidance, driven by strong core advertising and retransmission revenue.

• Net loss for Q2 2025 was $56 million, with a six-month net loss of $91 million, compared to net income in the prior year; adjusted EBITDA for Q2 was $169 million, down 25% year-over-year.

• Significant non-cash impairment charge of $28 million was recorded due to changes in network affiliation at one station.

• Multiple M&A transactions and refinancing activities were announced, expected to add six new markets, reduce leverage, and support strategic growth.

• Political advertising revenue outperformed expectations for an off-cycle year but was significantly lower year-over-year.

Financial highlights

• Core advertising revenue declined 3% year-over-year to $361 million; digital revenue increased 8% year-over-year.

• Political advertising revenue reached $9 million in Q2 2025, down 81% year-over-year but above guidance.

• Operating expenses before depreciation were slightly below the low end of guidance; production company expenses increased.

• Net cash provided by operating activities for the first half of 2025 was $163 million, up from $86 million in the prior year.

• Debt principal was reduced by $22 million in Q2 2025.

Outlook and guidance

• Q3 2025 core ad revenue expected to be down year-over-year, partly due to the absence of Olympic-related revenue.

• Digital revenue projected to grow low double digits in Q3.

• Full-year 2025 guidance includes interest expense of $460 million, capital expenditures of $85–$90 million, and $39 million in income tax payments.

• No material tax payments expected for the remainder of 2025 due to legislative changes.

• Cash on hand, operating cash flow, and available credit are expected to be sufficient to meet obligations for the next twelve months.