ATLANTA, May 07, 2026 (GLOBE NEWSWIRE) -- Gray Media $(GTN)$ today announced its financial results for the first quarter that ended March 31, 2026.
EXECUTIVE COMMENTARY
Hilton Howell, Jr., Executive Chairman and CEO, commented, "Our first quarter 2026 results were solid, with Core Advertising exceeding our guidance and Political revenue at the high end of our guidance range. A recently resolved dispute with a distribution partner impacted our Net Retransmission Revenue for the quarter. With all scheduled 2026 retransmission negotiations now complete and the improvement in underlying MVPD subscriber trends, we now have visibility on our growth in Net Retransmission Revenue for full year 2026. While we are seeing some softness in core advertising in Q2, we are optimistic that, as the largest owner of top-rated local television stations and a footprint covering most of the competitive races, we will again capitalize on a strong mid-term political cycle.
"We were thrilled to have added new stations in four new markets during the first quarter. A few days ago, we closed a transaction involving stations located in seven markets and yesterday closed on additional stations located in three markets. We continue to work to close the remaining strategic, deleveraging transactions announced last summer. As our industry transforms, we continue to find creative ways to drive shareholder value without taking on undue risk. We are strengthening our market position through innovative sports partnerships -- including airing 19 MLB teams across our 16 broadcast sports networks this year -- while continuing to focus on the balance sheet, evaluating accretive M&A opportunities, and attracting the best and brightest talent to Gray."
FINANCIAL HIGHLIGHTS:
-- Total Revenue -- $768 million in the first quarter of 2026, which was at
the high end of our previously issued guidance of $755 million to $770
million.
-- Core Advertising Revenue -- $352 million in the first quarter of 2026, a
2% increase, on both a reported and organic basis, compared to the first
quarter of 2025, which exceeded our previously issued guidance of
revenues being approximately flat with first quarter 2025.
-- Retransmission Consent Revenue -- $339 million in the first quarter of
2026, compared to $379 million for the first quarter of 2025 due
primarily to continued subscriber declines, the transition of one Atlanta
station to independent status, and a recently resolved dispute with a
distribution partner. Net Retransmission Revenue of $142 million
decreased 3% in the first quarter of 2026, compared to $146 million in
the first quarter of 2025.
-- Political Advertising Revenue -- $30 million in the first quarter of
2026, a 15% reported and organic increase compared to $26 million in
first quarter of 2022, which was at the high end our previously issued
guidance of $25 million to $30 million.
-- Operating Expenses -- Total broadcasting expenses of $555 million, a $22
million decrease, or 4%, in the first quarter of 2026, compared to first
quarter of 2025, which was at the low end of our previously issued
expense guidance of $555 million to $560 million. Corporate expenses of
$39 million were above the high end of the $30 million to $35 million
guidance range primarily due to transaction-related expenses.
-- Capital Expenditures -- Capital expenditures were $19 million in the
first quarter of 2026 compared to $15 million during the first quarter of
2025.
Selected Operating Data (Unaudited)
--------------------------------------------------------------------------
Three Months Ended
March 31,
2026 2025 % Change
--------------- -------------- ----------
(dollars in millions)
Revenue (less agency
commissions):
Core advertising $ 352 $ 344 2%
Political advertising 30 13 131%
Retransmission consent 339 379 (11)%
Other 18 19 (5)%
----------- ----------
Total broadcasting
revenue 739 755 (2)%
Production companies 29 27 7%
Total revenue $ 768 $ 782 (2)%
=== ====== ======
Net retransmission revenue
(1):
Retransmission consent
revenue $ 339 $ 379 (11)%
Less, broadcasting network
affiliation fees 197 233 (15)%
----------- ----------
Net retransmission revenue $ 142 $ 146 (3)%
=== ====== ======
Operating expenses (2):
Broadcasting:
Station expenses $ 358 $ 343 4%
Network affiliation fees 197 233 (15)%
Non-cash stock-based
compensation - 1 (100)%
----------- ----------
Total broadcasting
expense $ 555 $ 577 (4)%
=== ====== ======
Production companies $ 28 $ 20 40%
=== ====== ======
Corporate and
administrative:
Corporate expenses $ 27 $ 26 4%
Transaction Related
Expenses 4 - N/A
Non-cash stock-based
compensation 8 6 33%
----------- ----------
Total corporate and
administrative
expense $ 39 $ 32 22%
=== ====== ======
Net loss $ (20) $ (9) 122%
Adjusted EBITDA (2) $ 154 $ 160 (4)%
(1) See definition of non-GAAP terms included herein.
(2) Excludes depreciation, amortization, impairment and
(gain) loss on disposal of assets, net.
FINANCIAL POSITION AND LEVERAGE
Debt Summary - The table below summarizes our debt principal and cash balances:
March 31, December 31,
2026 2025
----------- --------------
(in millions)
Outstanding principal of debt obligations
(1):
First lien term loans $ 749 $ 749
Senior secured first lien notes 1,900 1,900
Senior secured second lien notes 1,150 1,150
Senior unsecured notes 2,009 2,011
---------- -----------
Total outstanding principal of debt
obligations 5,808 5,810
Less cash (259) (368)
Total outstanding principal of debt
obligations, less cash $ 5,549 $ 5,442
====== ==========
(1) Excludes letters of credit, accounts receivable securitization
facility and preferred stock.
Recent Financing Activities
-- Credit Agreement Amendment -- On March 31, 2026, we amended and restated
our senior credit agreement to update and enhance the legal framework.
The commitments under the revolving credit facility, the principal
amounts of the term loans, and the stated maturities remained unchanged
at closing. No new borrowings were incurred with the amendment.
-- Repayment of the 2026 Notes -- On January 20, 2026, we redeemed the
remaining balance of $2 million on the 5.875% senior notes due in 2026.
-- Repayment of Term Loan -- On April 2, 2026, we settled the remaining
balance of $10 million on the 2024 1L Term Loan, which was originally
scheduled to mature in June 2029. Our next debt maturity is in December
2028, after the next presidential election cycle.Leverage Metrics - As of
March 31, 2026, calculated as set forth in our Senior Credit Agreement
(unaudited):
-- First Lien Leverage Ratio 2.56 to 1.00
-- Secured Leverage Ratio 3.79 to 1.00
-- Leverage Ratio 5.94 to 1.00
Liquidity - As of March 31, 2026:
Cash -- $259 million
-- Borrowing availability under our $750 million undrawn Revolving Credit
Facility - $745 million (reflecting only certain outstanding undrawn
letters of credit)
-- Accounts receivable securitization facility of $400 million was fully
drawn
Other Noteworthy Events
-- On May 1, 2026, we acquired television stations in seven markets from
Allen Media Group for $115 million.
-- On May 6, 2026, we acquired television stations in three markets from
Block Communications, Inc. for $80 million.
Guidance for the Quarter Ending June 30, 2026:
Based on our current forecasts for the quarter ending June 30, 2026, we anticipate the following key financial results, as outlined below in approximate ranges and as compared to the three months ended June 30, 2026, as well as certain currently anticipated full-year financial results. Our guidance includes estimated results for television station WBBJ and the stations acquired in the Allen 3 acquisition that were closed in the first quarter, and it does not include estimates for any of the stations acquired in the Allen 7 acquisition, Block acquisition or the announced and not yet completed transactions.
As always, guidance may change in the future based on several factors and therefore may not reflect future actual results.
Three Months Ended June 30,
2025 2026 (Guidance)
(Unaudited) Low High
(in millions)
Revenue (less agency
commissions):
Core advertising $ 361 Down mid-single digits
Political advertising $ 9 $ 60 $ 70
Total revenue $ 772 $ 780 $ 800
Net Retransmission Revenue $ 136 $ 141 $ 143
Operating expenses (excluding depreciation, amortization
and loss on disposal of assets):
Total broadcasting
expense $ 563 $ 545 $ 550
Total corporate and
administrative expense $ 25 $ 30 $ 35
Year Ending
December 31,
2026
Estimated supplemental information (in millions) (Guidance)
Interest expense, excluding amortization of deferred
financing costs $ 440
Amortization of deferred financing costs $ 16
Preferred stock dividends $ 52
Common stock dividends $ 33
Capital expenditures $ 140
Income tax payments, excluding refunds $ 90 to $110
The Company
We are a multimedia company headquartered in Atlanta, Georgia. We are the nation's largest owner of top-rated local television stations and digital assets serving 120 full-power television markets that collectively reach approximately 37% of US television households. The portfolio includes 81 markets with the top-rated television station and 103 markets with the first and/or second highest rated television station in average all-day ratings across the 119 of such markets that were measured by Nielsen in 2025. We also own the largest Telemundo Affiliate group with 47 markets and Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services. Our additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios.
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act
This press release contains certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by us. These statements are statements other than those of historical fact and may be identified by words such as "estimates," "expect," "anticipate," "will," "implied," "assume" and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond our control, include: the inability to achieve estimates of future revenue, expenses, capital expenditures, and income tax payments, the inability to complete the pending acquisitions within the expected timeframes, or at all, including as a result of the failure to obtain necessary FCC or other regulatory approvals, and other future events. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections contained therein, which reports are made publicly available via our website, www.graymedia.com. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise. Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the year ended December 31, 2025, and may be contained in reports subsequently filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.
Conference Call Information
Gray Media, Inc. will host a conference call to discuss its operating results for the quarter ended March 31, 2026, on Thursday, May 7, 2026. The call will begin at 11:00 a.m. Eastern Time. The live dial-in number is 1-800-715-9871 or 1-646-307-1963 conference ID 3663076. The call will be webcast live and available for replay at www.graymedia.com. The taped replay of the conference call will be available at 1-800-770-2030 using conference ID 3663076# until June 7, 2026.
Gray Contacts:
Web site: www.graymedia.com
Alan Gould, Vice President, Investor Relations, (404) 266-8333, alan.gould@graymedia.com
GRAY MEDIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)
March 31, December 31,
2026 2025
----------- ----------------
Assets:
Current assets:
Cash $ 259 $ 368
Accounts receivable, net 178 205
Current portion of program broadcast
rights, net 11 17
Income tax refunds receivable 1 6
Prepaid income taxes 43 35
Prepaid and other current assets 31 25
---------- -------------
Total current assets 523 656
Property and equipment, net 1,504 1,509
Operating lease right of use asset 64 66
Broadcast licenses 5,368 5,309
Goodwill 2,651 2,642
Other intangible assets, net 128 157
Investment in broadcasting and technology
companies 32 37
Deferred pension assets 21 21
Other 28 43
Total assets $ 10,319 $ 10,440
====== =========
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 130 $ 144
Employee compensation and benefits 82 103
Accrued interest 103 151
Other accrued expenses 60 47
Federal and state income taxes 5 5
Current portion of program broadcast
obligations 11 18
Deferred revenue 21 20
Dividends payable 15 16
Current portion of operating lease
liabilities 10 10
Current portion of long-term debt - 2
---------- -------------
Total current liabilities 437 516
Long-term debt, less current portion and
deferred financing costs 5,746 5,742
Deferred income taxes 1,300 1,300
Operating lease liabilities, less current
portion 57 59
Other 16 18
Total liabilities 7,556 7,635
---------- -------------
Series A Perpetual Preferred Stock, no par
value; cumulative; redeemable; designated
1,500,000 shares, issued and outstanding
650,000 shares at each date and $650
aggregate liquidation value, at each date 650 650
---------- -------------
Stockholders' equity:
Common Stock, no par value; authorized
200,000,000 shares, issued 115,042,050
shares and 113,779,383 shares,
outstanding 92,912,582 shares and
92,444,984 shares, respectively 1,214 1,210
Class A Common Stock, no par value;
authorized 25,000,000 shares, issued
12,978,335 shares and 12,198,808 shares,
outstanding 9,869,307 shares and
9,557,830 shares, respectively 71 67
Retained Earnings 1,164 1,205
Accumulated other comprehensive loss, net
of income tax (4) (4)
---------- -------------
2,445 2,478
Treasury Stock at cost, Common Stock,
22,129,468 shares and 21,334,399 shares,
respectively (292) (288)
Treasury Stock at cost, Class A Common
Stock, 3,109,028 shares and 2,640,978
shares, respectively (40) (35)
Total stockholders' equity 2,113 2,155
---------- -------------
Total liabilities and stockholders'
equity $ 10,319 $ 10,440
====== =========
Gray Media, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions except for net income per common share
data)
Three Months Ended
March 31,
------------------------
2026 2025
Revenue (less agency commissions):
Broadcasting $ 739 $ 755
Production companies 29 27
----------- -------
Total revenue (less agency commissions) 768 782
Operating expenses before depreciation,
amortization,
and loss on disposal of assets, net:
Broadcasting 555 577
Production companies 28 20
Corporate and administrative 39 32
Depreciation 33 34
Amortization of intangible assets 32 29
Gain on disposal of assets, net - (2)
Operating expenses 687 690
----------- -------
Operating income 81 92
Other income (expense):
Miscellaneous income, net 8 1
Interest expense (117) (118)
Gain on early extinguishment of debt - 1
----------- -------
Loss before income tax (28) (24)
Income tax benefit (8) (15)
----------- -------
Net loss (20) (9)
Preferred stock dividends 13 13
Net loss attributable to common
stockholders $ (33) $ (22)
======= ======
Basic per share information:
Net loss attributable to common stockholders $ (0.34) $ (0.23)
======= ======
Weighted-average common shares outstanding 97 96
=========== =======
Diluted per share information:
Net loss attributable to common stockholders $ (0.34) $ (0.23)
======= ======
Weighted-average common shares outstanding 97 96
=========== =======
GRAY MEDIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Three Months Ended
March 31,
----------------------------
2026 2025
-------------- ------------
Cash flows from operating activities:
Net loss $ (20) $ (9)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 33 34
Amortization of intangible assets 32 29
Amortization of deferred loan costs 4 4
Stock-based compensation 8 7
Amortization of program broadcast rights 6 6
Payments on program broadcast obligations (7) (7)
Deferred income taxes - (16)
Gain on disposal of property and
equipment, net - (3)
(Gain) loss on sale of investments (8) 1
(Gain) on early extinguishment of debt - (1)
Other 1 4
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable, net 29 139
Income tax receivable or prepaid (3) 1
Other current assets (5) (13)
Accounts payable (14) (4)
Employee compensation, benefits and
pension costs (22) (36)
Accrued other expenses 14 17
Accrued interest (48) (14)
Income taxes payable - 1
Deferred revenue 1 (8)
Net cash provided by operating activities 1 132
---------- ---------
Cash flows from investing activities:
Acquisitions of businesses and broadcast
licenses, net of cash acquired (68) (1)
Purchases of property and equipment (19) (15)
Proceeds from asset sales - 10
Proceeds from sale of investments 10 1
Investments in broadcast, production and
technology companies - (8)
Other - (2)
Net cash used in investing activities (77) (15)
---------- ---------
Cash flows from financing activities:
Proceeds from borrowings on long-term debt - 129
Repayments of borrowings on long-term debt (2) (146)
Payments of common stock dividends (9) (8)
Payments of preferred stock dividends (13) (13)
Payments for taxes related to net share
settlement of equity awards (9) (4)
Net cash used in financing activities (33) (42)
---------- ---------
Net (decrease) increase in cash (109) 75
Cash at beginning of period 368 135
Cash at end of period $ 259 $ 210
====== =====
Non-GAAP Terms
This earnings release includes certain non-GAAP financial measures, such as "Adjusted EBITDA" and "Net Retransmission Revenue." We present these measures, in addition to results prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), because management believes they are useful in evaluating the performance of the business. Adjusted EBITDA is calculated as net income (loss), adjusted for income tax expense (benefit), interest expense, gain or loss on extinguishment of debt, non-cash stock-based compensation costs, non-cash 401(k) expense, depreciation, amortization of intangible assets, impairment of goodwill and other intangible assets, impairment of investments, loss (gain) on asset disposals and certain other miscellaneous items. Net Retransmission Revenue is calculated as retransmission consent revenue less broadcasting network affiliation fees. See "Selected Operating Data" above for a reconciliation of Net Retransmission Revenue to the most comperable GAAP metric. We consider Adjusted EBITDA and Net Retransmission Revenue to be indicators of our operating performance.
In addition to results prepared in accordance with GAAP, "Leverage Ratio Denominator" is a metric that management uses to calculate our compliance with certain financial covenants in our indebtedness agreements. This metric is calculated as specified in our Senior Credit Agreement and is a significant measure that represents the denominator of a formula used to calculate compliance with certain material financial covenants within the Senior Credit Agreement that govern our ability to incur indebtedness, incur liens, make investments and make restricted payments, among other limitations usual and customary for credit agreements of this type. Accordingly, management believes this metric may be useful to investors to understand how we assess compliance with our Senior Credit Agreement. Leverage Ratio Denominator gives effect to the revenue and broadcast expenses of all completed acquisitions and divestitures as if they had been acquired or divested, respectively, on April 1, 2024. It also gives effect to certain operating synergies expected from the acquisitions and related financings and adds back professional fees incurred in completing the various transactions. Certain financial information related to the acquisitions, if applicable, has been derived from, and adjusted based on, unaudited, un-reviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the completeness or accuracy of such information, or that our actual results would not differ materially from this financial information if the acquisitions had been completed on the stated date. In addition, the presentation of Leverage Ratio Denominator as determined in the Senior Credit Agreement and the adjustments to such information, including expected synergies, if applicable, resulting from such transactions, may not comply with GAAP or the requirements for pro forma financial information under Regulation S-X under the Securities Act of 1933, and should not be relied upon as indicative of future results. Leverage Ratio Denominator, as determined in the Senior Credit Agreement, represents an average amount for the preceding eight quarters then ended.
Specified Transaction Costs and Expenses are defined in our Senior Credit Agreement and include incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation, and contract termination fees. We present certain line items from our selected operating data, net of Transaction Related Expenses, to enhance the comparability of our operating expenses and results of operations across periods.
Our "Consolidated First Lien Net Debt", "Consolidated Secured Net Debt" and "Consolidated Total Net Debt" in each case presented net of all cash, represents the amount of outstanding principal of our long-term debt, plus certain other obligations as defined in our Senior Credit Agreement for the applicable amount of indebtedness.
These non-GAAP measures are not defined by GAAP, and our definitions may differ from, and therefore may not be comparable to, similarly titled measures used by other companies, thereby limiting their usefulness. Such measures are used by management in addition to, and in conjunction with, results presented in accordance with GAAP and should be considered as supplements to, and not as substitutes for, net income and cash flows reported in accordance with GAAP.
Reconciliation of Adjusted EBITDA (Unaudited):
----------------------------------------------------------------------------
Three Months Ended
March 31,
----------------------------
2026 2025
-------------- ------------
(in millions)
Net loss $ (20) $ (9)
Adjustments to reconcile from net loss to
Adjusted EBITDA
Depreciation 33 34
Amortization of intangible assets 32 29
Non-cash stock-based compensation 8 7
Gain on disposal of assets, net - (2)
Miscellaneous income, net (8) (1)
Interest expense 117 118
Gain on early extinguishment of debt - (1)
Income tax benefit (8) (15)
Adjusted EBITDA $ 154 $ 160
====== =====
Supplemental Information:
Amortization of deferred loan costs $ 4 $ 4
Preferred stock dividends $ 13 $ 13
Common stock dividends $ 8 $ 8
Purchases of property and equipment $ 19 $ 15
Calculation of Consolidated Total Net Leverage Ratio,
Consolidated First Lien Net Leverage Ratio and Consolidated
Secured
Net Leverage Ratio, as each is defined in our Senior
Credit Agreement (Unaudited):
------------------------------------------------------------------------------
Eight Quarters Ended
March 31, 2026
(in millions)
Net income $ 183
Adjustments to reconcile from net income to
Leverage Ratio
Denominator as defined in our 2019 Senior
Credit Facility:
Depreciation 274
Amortization of intangible assets 230
Non-cash stock-based compensation 46
Non-cash 401(k) expense -
Loss on disposal of assets, net -
Gain on disposal of investment, not in the
ordinary course 2
Interest expense 961
Gain on early extinguishment of debt (24)
Income tax expense 50
Impairment of investments, goodwill and other
intangible assets 74
Amortization of program broadcast rights 55
Payments for program broadcast rights (55)
Pension expense 2
Contributions to pension plans -
Adjustments for unrestricted subsidiaries 37
Adjustments for stations acquired or
divested, financings and expected synergies
during the eight quarter period 25
Specified Transaction Costs and Expenses 10
Total eight quarters ended March 31, 2026 $ 1,870
=== =============== ===
Leverage Ratio Denominator(total eight quarters
ended March 31, 2026, divided by 2) $ 935
March 31, 2026
(dollars in millions)
Total outstanding principal secured by a first lien $ 2,649
Cash (259)
Consolidated First Lien Net Debt $ 2,390
=== =============== ===
Consolidated First Lien Net Leverage Ratio(maximum
permitted incurrence is 3.5 to 1.00) (1) 2.56
Total outstanding principal secured by a lien $ 3,805
Cash (259)
Consolidated Secured Net Debt $ 3,546
=== =============== ===
Consolidated Secured Net Leverage Ratio(maximum
permitted incurrence is 5.50 to 1.00) (2) 3.79
Total outstanding principal, including current
portion $ 5,809
Letters of credit outstanding 5
Cash (259)
Consolidated Total Net Debt $ 5,555
=== =============== ===
Consolidated Total Net Leverage Ratio(maximum
permitted incurrence is 7.00 to 1.00) 5.94
(1) At any time any amounts are outstanding under
our revolving credit facility, our maximum Consolidated
First Lien Net Leverage Ratio cannot exceed 4.25 to
1.00.
(2) For our 9.625% senior secured second lien notes
due 2032 the maximum permitted Second Lien incurrence
is 4.5 to 1.00.
(END) Dow Jones Newswires
May 07, 2026 06:00 ET (10:00 GMT)