Lee Enterprises Reports Digital Growth Amid Challenges

Lee Enterprises ( (LEE) ) has released its Q2 earnings. Here is a breakdown of the information Lee Enterprises presented to its investors.

Lee Enterprises, Incorporated is a digital-first subscription platform that provides high-quality, trusted local news and advertising services across 72 markets in the United States. The company has reported its second-quarter financial results for fiscal 2025, highlighting its ongoing digital transformation and challenges faced during the period.

In the second quarter of fiscal 2025, Lee Enterprises reported total digital revenue of $73 million, which accounted for 53% of the company’s total revenue. The company saw a 20% year-over-year increase in digital-only subscription revenue, reaching $24 million. Amplified Digital Agency, Lee’s full-service digital marketing agency, also experienced a 9% growth in revenue. However, the company faced a net loss of $12 million, partly due to a cybersecurity incident that incurred $2 million in restoration costs and impacted advertising revenue.

Despite the challenges, Lee Enterprises continues to focus on its digital growth strategy. The company launched an AI solution aimed at supporting local businesses with data-driven insights and personalized marketing capabilities. Additionally, Lee implemented $40 million in annualized cost reductions to improve free cash flow in the latter half of the fiscal year. The company expects to see improved year-over-year trends in total digital revenue and adjusted EBITDA in the upcoming quarters.

Looking ahead, Lee Enterprises remains committed to its digital transformation strategy and anticipates continued growth in its digital revenue streams. The management’s focus on cost reductions and strategic initiatives is expected to support the company’s financial performance in the coming quarters.