Lee Enterprises (LEE) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA grew 95% year-over-year in Q2, marking the fourth consecutive quarter of growth on a comparable basis.

• Digital revenue now represents 56% of total revenue, up from 21% in 2020, reflecting significant digital transformation.

• Net loss improved to $1.7 million from $12.0 million in the prior-year quarter, driven by cost reductions and insurance recoveries.

• Leadership changes included a new Chairman, CEO, CFO, and refreshed Board, with executive compensation shifted to 100% equity-based.

• Strategic actions included cost structure alignment, workflow streamlining, and a credit agreement amendment reducing interest rates.

Financial highlights

• Q2 FY26 total revenue was $122.0 million, with digital revenue at $67.8 million (55.6% of total).

• Adjusted EBITDA for Q2 was $15.1 million, up 95% year-over-year, including $4 million in insurance proceeds.

• Cash costs declined 15% year-over-year, with significant reductions in SG&A, compensation, and print-related expenses.

• Digital advertising and marketing services revenue was $41 million, 74% of total advertising revenue.

• Cash on hand at quarter-end was $53 million.

Outlook and guidance

• Full-year outlook reaffirmed for mid-single digit adjusted EBITDA growth.

• Digital gross margin expected to surpass SG&A costs within three years, nearing digital sustainability.

• Management expects continued cost discipline and digital transformation to support financial flexibility.

• Liquidity is expected to be sufficient for at least the next 12 months, supported by private placement proceeds and improved operating results.

• No pension contributions expected for the fiscal year.