Gray Media — Third Quarter 2026 Earnings Summary

Financial Performance:

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

Guidance and Future Outlook:

• Full-year 2026 political advertising is expected to finish between $630 million and $640 million.
• Core advertising revenue for the fourth quarter ending December 31, 2026, is expected to be down from the low single digits to the middle single digits compared to the fourth quarter of 2025.
• Political advertising revenue for the fourth quarter ending December 31, 2026, is expected to be between $319 million and $329 million.
• Total revenue for the fourth quarter ending December 31, 2026, is expected to be between $1,115 million and $1,140 million.
• Net Retransmission Revenue for the fourth quarter ending December 31, 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.
• Full-year 2026 preferred stock dividends are estimated at $50 million.
• Full-year 2026 common stock dividends are estimated at $33 million.

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 the third quarter of 2026.
• The 2026 Acquisitions contributed $9 million in Net Retransmission Revenue for the third quarter of 2026.
• The 2026 Acquisitions contributed $52 million in broadcasting expenses for the third quarter of 2026.
• 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.
• The company completed a transaction to swap television stations.
• Gray Digital Media operates as a full-service digital agency offering national and local clients digital marketing strategies.
• Video production companies include Raycom Sports, Tupelo Media Group, and PowerNation Studios.
• Studio production facilities include Assembly Atlanta and Third Rail Studios.

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 television station.
• The company owns the largest Telemundo Affiliate group with 46 markets.
• Gray stations hosted more than 100 candidate forums and/or debates for the 2026 midterms.
• In August, the company received nine National Edward R. Murrow Awards, more than any other broadcast television network, cable television network, or local television group.
• WANF in Atlanta won a National Edward R. Murrow Award for Overall Excellence and hosted Georgia's first Senatorial debate and only Gubernatorial debate.

Risks and Challenges:

• Risks include the inability to achieve estimates of future revenue, expenses, capital expenditures, and income tax payments.
• Risks include 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 to retransmission consent revenue.

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.
• Management indicated a focus on continuing to grow the company by building on financial, operational, and strategic progress.

Other Key Points:

• During the third quarter and into October, the company extended approximately $2 billion of debt maturities, including its revolving credit facility.
• The company reduced 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.
• The company expects to use incremental political cash to reduce outstanding debt by $175 million to $200 million during the fourth quarter of 2026.
• On August 21, 2026, the company issued $750 million of 7.500% senior secured first lien notes due 2034 to redeem $675 million of 2029 1L Notes and repay $21 million of the revolving credit facility.
• 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 2029 1L Notes.
• On November 2, 2026, the company completed an optional principal prepayment of $25 million on Term Loan G.
• 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 from 1.25% to 1.15%.
• The company repurchased $30 million of Series A Perpetual Preferred Stock during the nine months ended September 30, 2026.
• The company paid $25 million in common stock dividends and $39 million in preferred stock dividends during the nine months ended September 30, 2026.
• The company recorded a $20 million deemed contribution on the repurchase of Series A Perpetual Preferred Stock during the nine months ended September 30, 2026.
• The company recorded a $70 million non-cash exchange of television stations during the nine months ended September 30, 2026.