Gray Media — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended September 30, 2026, was $972 million, a 30% increase compared to $749 million in the third quarter of 2025.
• Core advertising revenue was $358 million, a 1% increase year-over-year from $355 million in Q3 2025.
• Political advertising revenue was $198 million, a 2,375% increase compared to $8 million in Q3 2025.
• Retransmission consent revenue was $366 million, a 6% increase from $346 million in Q3 2025.
• Net Retransmission Revenue was $150 million, a 14% increase from $132 million in Q3 2025.
• Broadcasting expenses were $596 million, a 10% increase compared to $542 million in Q3 2025.
• Corporate and administrative expenses were $31 million, an 11% increase from $28 million in Q3 2025.
• Net income for the quarter was $78 million, compared to a net loss of $10 million in Q3 2025.
• Adjusted EBITDA for the quarter was $319 million, a 97% increase from $162 million in Q3 2025.
• For the nine months ended September 30, 2026, total revenue was $2,579 million, a 12% increase from $2,303 million in the same period of 2025.
• Net income for the nine months ended September 30, 2026, was $72 million, compared to a net loss of $75 million in 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $687 million, a 40% increase from $491 million in 2025.
• Cash balances were $154 million as of September 30, 2026, down from $368 million as of December 31, 2025.
• Deferred revenue was $58 million as of September 30, 2026, up from $20 million as of December 31, 2025.
• Total outstanding principal of debt obligations was $5,822 million as of September 30, 2026, compared to $5,810 million as of December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 political advertising is expected to finish between $630 million and $640 million, a midpoint 28% ahead of $497 million in 2024 and 23% ahead of $515 million in 2022.
• Core advertising revenue for Q4 2026 is expected to be down low single digits to mid single digits compared to Q4 2025.
• Political advertising revenue for Q4 2026 is expected to be between $319 million and $329 million.
• Total revenue for Q4 2026 is expected to be between $1,115 million and $1,140 million.
• Net Retransmission Revenue for Q4 2026 is expected to be between $152 million and $155 million.
• Full-year 2026 total revenue is expected to be between $3,695 million and $3,720 million.
• Full-year 2026 Net Retransmission Revenue is expected to be between $594 million and $597 million.
• Full-year 2026 Broadcasting expenses are expected to be between $2,350 million and $2,360 million.
• Full-year 2026 Corporate and administrative expenses are expected to be between $142 million and $147 million.
• Full-year 2026 interest expense is estimated at $450 million.
• Full-year 2026 capital expenditures are estimated between $110 million and $120 million.
• Full-year 2026 income tax payments, net of refunds, are estimated between $75 million and $85 million.
• Management expects to use incremental political cash to reduce outstanding debt by $175 million to $200 million during Q4 2026.

Business Segments and Product Lines

• The "2026 Acquisitions" contributed $66 million in total advertising revenue, $24 million in core advertising revenue, $4 million in political advertising revenue, and $37 million in retransmission consent revenue for Q3 2026.
• The "2026 Acquisitions" contributed $52 million to broadcasting expenses and $9 million to Net Retransmission Revenue for Q3 2026.
• Production companies revenue was $34 million for Q3 2026, a 36% increase from $25 million in Q3 2025.
• Gray Digital Media is noted as a full-service digital agency offering national and local clients digital marketing strategies.
• The company owns the largest Telemundo Affiliate group with 46 markets.
• WANF in Atlanta, an independent station, won a National Edward R. Murrow Award for Overall Excellence.
• Gray stations hosted more than 100 candidate forums and/or debates for the 2026 midterms.

Market and Competitive Landscape

• Gray Media is the nation's largest owner of top-rated local television stations and digital assets, serving 117 full-power television markets reaching approximately 37% of US television households.
• The portfolio includes 78 markets with the top-rated television station and 101 markets with the first and/or second highest rated station.
• The company received nine National Edward R. Murrow Awards in August, more than any other broadcast television network, cable television network, or local television group.
• The company followed up industry-leading 93 Regional Edward R. Murrow Awards with the nine National awards.

Risks and Challenges

• Risks include the inability to achieve estimates of future revenue, expenses, capital expenditures, and income tax payments.
• There is a risk of the inability to complete pending acquisitions within expected timeframes or at all, including failure to obtain necessary FCC or other regulatory approvals.
• Subscriber declines partially offset the contribution from acquisitions in retransmission consent revenue.
• Political advertising revenue is subject to election cycles, with the third quarter of 2025 showing significantly lower political revenue ($8 million) compared to 2026 ($198 million).

Management Commentary and Tone

• Executive Chairman and CEO Hilton Howell, Jr. stated that third quarter results exceeded expectations across the board.
• Management noted that underlying non-political demand was stronger than anticipated in late September revised guidance.
• Management highlighted that the expected political advertising crowd out was more than offset by the contribution from acquisitions, resulting in 1% core advertising revenue growth.
• Management expressed pride in the company's journalism excellence and public service contributions, citing specific awards and debate hosting.
• Management indicated a focus on continuing to grow the company by building on financial, operational, and strategic progress.

Other Key Points

• During the nine months ended September 30, 2026, the company completed transactions to acquire several television stations and entered into management agreements for additional stations pending regulatory approval.
• A transaction to swap television stations was completed during the nine-month period.
• On August 21, 2026, the company issued $750 million of 7.500% senior secured first lien notes due 2034 to redeem $675 million of 10.500% first lien notes due 2029 and repay revolving credit facility borrowings.
• On October 8, 2026, the company amended its senior credit facility, issuing a new $600 million Term Loan G and reducing revolving credit facility commitments to $680 million.
• On October 9, 2026, the company increased Term Loan G by an additional $75 million to $675 million and used proceeds to redeem $150 million of the 2029 1L Notes.
• On November 2, 2026, the company completed an optional principal prepayment of $25 million on Term Loan G, satisfying all scheduled amortization payments prior to maturity.
• On November 5, 2026, the company amended its accounts receivable securitization facility to extend the termination date to November 5, 2029, add a $50 million uncommitted tranche, and reduce the drawn pricing margin to 1.15%.
• The company reduced its outstanding 10.500% first lien notes due 2029 by almost $1 billion through refinancings and repurchases, lowering future annual interest expense by over $30 million.
• Consolidated First Lien Net Leverage Ratio was 2.54 to 1.00 as of September 30, 2026.
• Consolidated Secured Net Leverage Ratio was 3.70 to 1.00 as of September 30, 2026.
• Consolidated Total Net Leverage Ratio was 5.70 to 1.00 as of September 30, 2026.
• Preferred stock dividends for the nine months ended September 30, 2026, were $38 million.
• Common stock dividends for the nine months ended September 30, 2026, were $25 million.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $258 million.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $372 million, primarily due to $302 million in acquisitions.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $100 million.
• The company repurchased $30 million of Series A preferred stock during the nine months ended September 30, 2026.
• A non-cash exchange of television stations valued at $70 million occurred during the nine months ended September 30, 2026.