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Gannett (GCI)
NYSE:GCI
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Gannett (GCI) AI Stock Analysis

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GCI

Gannett

(NYSE:GCI)

Rating:60Neutral
Price Target:
$4.50
▲(9.49% Upside)
Gannett's overall score reflects significant challenges in financial performance due to declining revenues and high leverage. However, positive technical indicators and strategic initiatives from the earnings call provide some optimism. The valuation suggests potential undervaluation, but the lack of a dividend yield is a drawback for some investors.
Positive Factors
Debt Management
Gannett Co. is focusing on paying down debt, having paid off $74.5M of debt and projecting further reductions, which could create value before litigation upside.
Legal Proceedings
Gannett Co. is well positioned following a favorable ruling in the DOJ v. Google AdTech monopoly case, which enhances the strength of GCI’s claims and increases the likelihood of a favorable recovery from Google.
Revenue Growth
Gannett Co. reiterated the FY25 outlook that calls for 7%-10% digital revenue growth and same store revenue growth, indicating a potential inflection to growth after many years of contraction.
Negative Factors
Debt Concerns
Gannett's focus on finding creative ways to reduce dilution from outstanding convertible debt could be highly accretive to its equity value if successful.
Revenue History
Gannett is well positioned to inflect to positive consolidated revenue growth after many years of revenue contraction.

Gannett (GCI) vs. SPDR S&P 500 ETF (SPY)

Gannett Business Overview & Revenue Model

Company DescriptionGannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through two segments, Publishing and Digital Marketing Solutions. The company's principal products include 230 daily print media with total paid circulation of approximately 1.9 million and Sunday circulation of 2.2 million; 249 weekly print media with total circulation of approximately 1.4 million; and 292 locally-focused websites. Its principal products also comprise 123 daily and weekly news media brands and approximately 80 magazines, and related digital platforms; sports network, as well as Reviewed.com, an affiliate marketing service; and USA TODAY NETWORK, a community events platform. The company also offers digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions. In addition, it produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, the company offers local market news and information, as well as advertising and subscriptions, and commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was incorporated in 2013 and is headquartered in McLean, Virginia.
How the Company Makes MoneyGannett generates revenue through multiple streams, primarily focusing on advertising and subscription services. The company's advertising revenue comes from both print and digital sources, where it provides businesses with targeted advertising solutions through its extensive reach and audience data. Additionally, Gannett earns money through digital subscriptions, offering readers access to premium content on its online platforms. The company has also expanded its revenue model by providing marketing services, including digital marketing and social media management, to local businesses. Strategic partnerships with technology firms and collaborations with other media outlets further bolster its revenue capabilities, allowing Gannett to leverage new technologies and expand its audience engagement.

Gannett Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. On the positive side, Gannett reported growth in digital advertising revenue, a strategic AI content licensing agreement, significant debt reduction, and an impactful cost reduction program. However, these highlights were balanced by revenue declines in total revenues and digital revenues, as well as ongoing challenges in print and commercial revenue declines. The company is optimistic about future growth, driven by their digital transformation and cost reduction strategies.
Q2-2025 Updates
Positive Updates
Digital Advertising Revenue Growth
In Q2, digital advertising revenues grew 4% year-over-year, compared to a slight decline in the first quarter, driven by improved page views, programmatic revenue, and direct sales.
Strategic AI Content Licensing Agreement
Gannett announced a strategic AI content licensing agreement with Perplexity, expected to provide licensing fees and advertising revenue share, reflecting a fair value for their content.
Debt Reduction
Gannett repaid $23.4 million of debt in Q2 and nearly $100 million in the first half of the year, aiming for $135 million in debt paydown for the year.
Cost Reduction Program
A $100 million annualized cost reduction program was implemented, expected to drive adjusted EBITDA growth for the full year of 2025 and 2026.
Improvements in Digital Subscriber ARPU
Digital-only subscription ARPU increased to $7.79 in Q2, growing both sequentially and year-over-year, marking the first sequential growth since Q3 of 2024.
Negative Updates
Overall Revenue Decline
Total revenues for Q2 were $584.9 million, a decrease of 8.6% or 6.4% on a same-store basis, with a 130 basis point improvement from Q1.
Digital Revenue Decline
Total digital revenues in Q2 were $265.4 million, down 4.6% or 2.8% on a same-store basis, though showing a 100 basis point improvement in same-store digital trends from Q1.
Impact of Print and Commercial Revenue Decline
Despite efforts to manage print declines, print and commercial revenues continue to decrease, impacting overall revenue trends.
Company Guidance
During the Gannett Company Q2 2025 Earnings Call, significant guidance was provided for the upcoming fiscal periods. The company anticipates same-store digital revenue growth between 3% and 5% year-over-year in the second half of 2025. They also expect meaningful total adjusted EBITDA growth, with a reported $64.2 million in Q2, marking a 27% sequential increase. Free cash flow grew by 73% sequentially, reaching $17.6 million. Gannett announced a $100 million cost reduction program and emphasized strategic initiatives like a new AI content licensing agreement with Perplexity. These measures aim to drive stronger financial performance and position the company for further growth, including a projected flat revenue trend in early 2026. Gannett repaid $23.4 million of debt in Q2, contributing to nearly $100 million in debt reduction in the first half of the year.

Gannett Financial Statement Overview

Summary
Gannett's financial statements indicate challenges with declining revenue and profitability pressures. High leverage poses financial risks, despite a strong ROE. Declining cash flows and high debt levels weaken overall financial health.
Income Statement
45
Neutral
Gannett's income statement shows a declining revenue trend with a negative revenue growth rate of -2.25% in the TTM. Gross profit margin remains moderate at 37.75%, but the net profit margin is relatively low at 4.84%. The EBIT and EBITDA margins are also modest, indicating challenges in operational efficiency. Overall, the income statement reflects a company struggling with revenue contraction and profitability pressures.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 4.97, indicating significant leverage and potential financial risk. Return on equity is strong at 59.28%, suggesting effective use of equity to generate profits. However, the equity ratio is low, highlighting a reliance on debt financing. The balance sheet suggests financial instability due to high leverage, despite a strong ROE.
Cash Flow
50
Neutral
Cash flow analysis shows a decline in free cash flow growth by -15.47% in the TTM, reflecting cash generation challenges. The operating cash flow to net income ratio is 0.18, indicating moderate cash flow efficiency. The free cash flow to net income ratio is 0.44, suggesting some ability to convert income into cash. Overall, cash flow performance is mixed, with concerns over declining free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.39B2.51B2.66B2.95B3.21B3.41B
Gross Profit902.19M963.73M971.52M1.08B1.31B1.37B
EBITDA254.23M183.31M261.53M289.52M478.86M-263.12M
Net Income115.72M-26.35M-27.79M-78.25M-136.17M-672.40M
Balance Sheet
Total Assets2.01B2.04B2.18B2.39B2.83B3.11B
Cash, Cash Equivalents and Short-Term Investments88.54M106.30M100.18M94.25M130.76M170.72M
Total Debt1.18B1.29B1.29B1.38B1.49B1.87B
Total Liabilities1.77B1.89B1.86B2.10B2.30B2.74B
Stockholders Equity237.09M153.14M317.79M295.74M532.10M364.11M
Cash Flow
Free Cash Flow43.18M50.78M56.46M-4.60M87.89M20.80M
Operating Cash Flow98.60M100.31M94.57M40.78M127.45M57.77M
Investing Cash Flow16.12M-27.95M46.98M22.12M70.65M160.14M
Financing Cash Flow-127.49M-68.85M-135.51M-102.87M-261.17M-201.34M

Gannett Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.11
Price Trends
50DMA
3.85
Positive
100DMA
3.61
Positive
200DMA
4.05
Positive
Market Momentum
MACD
0.07
Positive
RSI
54.15
Neutral
STOCH
45.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCI, the sentiment is Positive. The current price of 4.11 is below the 20-day moving average (MA) of 4.12, above the 50-day MA of 3.85, and above the 200-day MA of 4.05, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 45.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCI.

Gannett Risk Analysis

Gannett disclosed 42 risk factors in its most recent earnings report. Gannett reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gannett Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$448.55M7.7814.21%-4.71%-14.88%
77
Outperform
$9.74B30.8117.13%1.04%7.82%19.39%
62
Neutral
$79.75M2.66-24.74%3.60%-8.00%-46.22%
61
Neutral
$264.12M6.158.30%5.25%
60
Neutral
$44.01B4.39-12.81%4.08%1.86%-42.71%
60
Neutral
$602.60M6.3347.54%-8.00%
46
Neutral
$27.15M0.00%-5.68%-127.26%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GCI
Gannett
4.11
-0.88
-17.64%
DALN
DallasNews
14.90
10.72
256.46%
SSP
E. W. Scripps Company Class A
2.99
1.12
59.89%
GRVY
Gravity Co
64.55
2.38
3.83%
LEE
Lee Enterprises
4.34
-4.46
-50.68%
NYT
New York Times
59.84
6.76
12.74%

Gannett Corporate Events

Executive/Board ChangesShareholder Meetings
Gannett Stockholders Elect Directors at Annual Meeting
Neutral
Jun 2, 2025

At the Annual Meeting of Stockholders held on June 2, 2025, Gannett Co., Inc. stockholders elected nine directors to serve until the 2026 meeting and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, stockholders did not approve several proposals to amend the company’s bylaws and charter, including those aimed at eliminating supermajority voting requirements, which would have required an 80% affirmative vote.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025