Sequential Financial Improvements
Q2 2025 saw a sequential increase in total adjusted EBITDA by 27% to $64.2 million, and free cash flow grew 73% to $17.6 million. The company also repaid $23.4 million of debt in the quarter, totaling nearly $100 million in debt repayment for the first half of 2025.
Digital Advertising Revenue Growth
Digital advertising revenues grew 4% year-over-year in Q2, a significant improvement compared to a slight decline in Q1. This growth was driven by increased page views and programmatic revenue.
AI Content Licensing Agreement with Perplexity
Gannett announced a strategic AI content licensing agreement with Perplexity, expected to boost revenue with licensing fees and advertising revenue share.
Cost Reduction Program
The company initiated a $100 million cost reduction program focusing on automation and outsourcing, expected to lead to meaningful growth in adjusted EBITDA for the second half of 2025 and into 2026.
Digital Marketing Solutions Improvement
The DMS segment saw sequential growth with core platform revenue increasing by 8.1% and segment adjusted EBITDA growing by 35.8%. Average customer count increased by 2.8%, and core platform ARPU reached a new high.