Gray Media’s Earnings Call: A Mixed Outlook

Gray Television ((GTN)) has held its Q2 earnings call. Read on for the main highlights of the call.

Gray Media’s recent earnings call presented a mixed outlook, reflecting both achievements and challenges. The company highlighted its robust M&A activity, debt reduction efforts, and operational successes, yet faced significant revenue declines and reported a net loss. This balance of positive developments and financial hurdles resulted in an overall neutral sentiment.

Strong M&A Activity

Gray Media has been actively engaging in mergers and acquisitions, including acquiring television stations from Block Communications and Allen Media, and executing a no-cash swap with Scripps. These strategic moves will expand their presence in six new markets and create 11 new Big 4 full-powered duopolies, strengthening their local market footprint.

Debt Reduction and Refinancing

The company made significant strides in reducing its debt, cutting down $22 million in Q2 2025. Additionally, Gray Media completed a $900 million offering of senior secured second lien notes to refinance existing debt, which improved their first lien leverage ratio to 2.6x, showcasing a commitment to financial stability.

Operational Achievements

Gray Media’s operational achievements were highlighted by receiving 81 regional Edward R. Murrow Awards for excellence in journalism. The company expanded its local content offerings to cover nearly 80% of their markets and reported strong performance in political advertising.

Renewal of CBS Affiliation

In a move that underscores its ongoing relationships with major networks, Gray Media renewed its CBS affiliation in 52 markets for an additional two years, ensuring continued access to popular content for its viewers.

Decrease in Total Revenue

The earnings call revealed a decrease in total revenue, with Q2 2025 figures at $772 million, marking a 7% drop compared to Q2 2024. This decline poses challenges for the company’s financial performance.

Net Loss Reported

Gray Media reported a net loss of $56 million for Q2 2025, a stark contrast to the net income of $22 million reported in the same quarter of the previous year, highlighting significant financial challenges.

Adjusted EBITDA Decline

The company’s adjusted EBITDA saw a 25% decline from the second quarter of 2024, dropping to $169 million, indicating pressures on profitability.

Core Ad Revenue Challenges

Core advertising revenue faced difficulties, with expectations of a low to mid-single digits decline in Q3 2025. The automotive and restaurant categories were particularly weak, affecting overall ad revenue.

Forward-Looking Guidance

Gray Media’s forward-looking guidance reflects cautious optimism. Despite a 7% revenue decline, the company exceeded the high end of its original guidance by 1%. Operating expenses were slightly below expectations, and the company continues to focus on deleveraging and strategic acquisitions, which are expected to be cash flow accretive and reduce leverage ratios.

In conclusion, Gray Media’s earnings call painted a picture of a company navigating through a complex financial landscape. While robust in strategic expansions and operational achievements, it faces significant financial challenges. The balanced sentiment reflects both optimism in strategic initiatives and caution due to revenue and profitability pressures.