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Lee Enterprises
(NASDAQ:LEE)
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Rating:54Neutral
Price Target:
$8.50
▲(66.99% Upside)
Action:Reiterated
Date:05/21/26
The score is held back primarily by weak financial fundamentals—especially balance-sheet risk (negative equity/high leverage), ongoing net losses, and volatile/low cash generation. Technicals are a meaningful offset with a clear uptrend and positive momentum. Earnings-call commentary is moderately supportive due to EBITDA/margin improvement and reaffirmed guidance, but valuation remains constrained by unprofitability and lack of dividend data.
Positive Factors
Digital revenue mix
A majority-digital revenue base (56%) and multi-year digital subscription growth create a more recurring, higher-margin revenue profile than print. This structural shift improves scalability of revenue and resilience to local print declines, enabling long-term margin and customer lifetime value improvements if retention/conversion continue.
Negative Factors
Weak balance sheet / negative equity
Repeated negative equity and elevated leverage are structural financial risks that constrain access to capital, limit strategic optionality, and increase vulnerability to revenue shocks. Negative equity complicates covenant flexibility and can force asset sales or dilutive financings to restore solvency over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital revenue mix
A majority-digital revenue base (56%) and multi-year digital subscription growth create a more recurring, higher-margin revenue profile than print. This structural shift improves scalability of revenue and resilience to local print declines, enabling long-term margin and customer lifetime value improvements if retention/conversion continue.
Read all positive factors
Lee Enterprises Key Performance Indicators (KPIs)
Any
Revenue by Source
Breaks down revenue by advertising (print and digital), circulation/subscriptions, commercial printing and marketing services to show how dependent Lee Enterprises is on ad cycles versus recurring reader income. A larger share of subscription and digital revenue suggests steadier cash flow and progress on digital transformation, while heavy reliance on print ads or printing services increases exposure to economic downturns and long-term readership declines and can pressure margins and capital needs.
Breaks down revenue by advertising (print and digital), circulation/subscriptions, commercial printing and marketing services to show how dependent Lee Enterprises is on ad cycles versus recurring reader income. A larger share of subscription and digital revenue suggests steadier cash flow and progress on digital transformation, while heavy reliance on print ads or printing services increases exposure to economic downturns and long-term readership declines and can pressure margins and capital needs.
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The Fly
The FlyLee Enterprises (LEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$180.28M
Dividend YieldN/A
Average Volume (3M)54.01K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-9.93%
EPS Growth66.64%
CountryUS
Employees2,674
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)-2.63
Shares Outstanding22,229,937
10 Day Avg. Volume82,789
30 Day Avg. Volume54,011
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.77
Price to Sales (P/S)0.06
P/FCF Ratio-4.68
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit1.15
Enterprise Value/Ebitda13.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lee Enterprises Business Overview & Revenue Model
Company Description
Lee Enterprises, Incorporated, a long-standing media organization founded in 1890 and headquartered in Davenport, Iowa, delivers local news, critical information, and diverse advertising services throughout the United States. The company publishes...
How the Company Makes Money
Lee Enterprises primarily generates revenue from (1) audience revenue and (2) advertising/marketing services, with additional contributions from ancillary commercial printing and other service lines.
1) Audience revenue (subscriptions and circula...
Lee Enterprises Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational progress and measurable financial improvement driven by digital transformation and disciplined cost management: substantial adjusted EBITDA expansion, a majority-digital revenue mix (56%), meaningful cost reductions, a stronger cash position ($53M), reduced interest expense and clear strategic initiatives (Hudl partnership, Community Center, Amplified Digital Agency). Counterbalancing these positives were residual effects from last year’s cyber event that hindered subscriber starts and comparisons, modest near-term advertising revenue pressure due in part to exiting lower-margin business, inclusion of a $4M insurance recovery as a one-time uplift, and limited debt paydown in the quarter. On balance, the positives—sizable margin improvement, digital mix gains, cost savings, and improved liquidity—outweigh the challenges.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA of $57 million over the last 12 months; second quarter adjusted EBITDA nearly doubled year over year to $15 million (95% YoY increase) with margin expanding 670 basis points. Excluding $4 million in business interruption insurance proceeds, Q2 adjusted EBITDA grew 45% YoY. Year-to-date through March, adjusted EBITDA improved 78% (an increase of $12 million YoY); excluding insurance proceeds, first-half adjusted EBITDA grew 40% (approximately $6 million).
Negative Updates
Residual Impact from Prior-Year Cyber Event
Last year’s cyber incident continued to negatively affect year-over-year comparisons and operations: units (new starts) were challenged, there were processing limitations and lost starts that depressed Q2 revenue. Management acknowledged the quarter was impacted by lapping the cyber event.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA of $57 million over the last 12 months; second quarter adjusted EBITDA nearly doubled year over year to $15 million (95% YoY increase) with margin expanding 670 basis points. Excluding $4 million in business interruption insurance proceeds, Q2 adjusted EBITDA grew 45% YoY. Year-to-date through March, adjusted EBITDA improved 78% (an increase of $12 million YoY); excluding insurance proceeds, first-half adjusted EBITDA grew 40% (approximately $6 million).
Read all positive updates
Company Guidance
Lee reaffirmed full-year guidance of adjusted EBITDA growth in the mid‑single digits and framed that outlook with concrete progress metrics: trailing‑12‑month adjusted EBITDA of $57 million, Q2 adjusted EBITDA nearly doubled to $15 million (+95% YoY; +45% YoY excluding $4 million of business‑interruption insurance proceeds) with margin expansion of 670 basis points, and year‑to‑date through March adjusted EBITDA up 78% (+$12 million YoY; +40% or +$6 million YoY excluding insurance). Management cited a $53 million cash balance at March, cash costs down $37 million year over year (14% annually) including a $19 million (15%) reduction in the quarter, SG&A down about $23 million and legacy print costs down $13 million, digital revenue now 56% of total (up 270 bps YoY) and 74% of advertising, 591,000 digital‑only subscribers generating $22 million, $290 million of digital revenue LTM (4% annualized 3‑year growth) with digital subscription revenue up 7% LTM (25% CAGR over three years) and digital agency up ~5% annually, debt reduced $121 million since March 2020, identified $20 million of noncore asset value, interest expense down ~$2.4 million YoY after a rate cut (expected ~$18 million annual interest savings, up to $90 million over five years), and a three‑year target for digital revenue and margins to fully cover SG&A.Lee Enterprises Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 532.42M | 562.34M | 611.38M | 691.14M | 780.97M | 794.65M |
| Gross Profit | 415.16M | 314.52M | 594.57M | 665.79M | 750.87M | 764.87M |
| EBITDA | 34.32M | 16.70M | 37.66M | 69.01M | 79.11M | 97.75M |
| Net Income | -16.09M | -37.59M | -25.84M | -5.27M | -2.02M | 22.75M |
Balance Sheet | ||||||
| Total Assets | 618.64M | 601.73M | 649.17M | 711.62M | 744.04M | 843.55M |
| Cash, Cash Equivalents and Short-Term Investments | 53.27M | 9.99M | 9.60M | 14.55M | 16.18M | 26.11M |
| Total Debt | 477.49M | 481.58M | 483.85M | 500.08M | 516.42M | 548.91M |
| Total Liabilities | 621.80M | 642.69M | 656.50M | 687.91M | 726.80M | 800.32M |
| Stockholders Equity | -5.47M | -43.31M | -9.89M | 21.24M | 15.01M | 41.10M |
Cash Flow | ||||||
| Free Cash Flow | 855.00K | -7.08M | -8.09M | -7.63M | -4.11M | 42.60M |
| Operating Cash Flow | 810.00K | -5.54M | 1.12M | -2.52M | 3.43M | 50.08M |
| Investing Cash Flow | 3.48M | 7.71M | 3.73M | 7.98M | 6.91M | -2.28M |
| Financing Cash Flow | 43.57M | -1.78M | -9.80M | -7.09M | -19.69M | -55.42M |
Lee Enterprises Technical Analysis
Negative
5.09
Price Trends
9.22
Negative
8.90
Negative
6.79
Positive
Market Momentum
-0.26
Positive
37.13
Neutral
19.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEE, the sentiment is Negative. The current price of 5.09 is below the 20-day moving average (MA) of 9.10, below the 50-day MA of 9.22, and below the 200-day MA of 6.79, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEE.
Lee Enterprises Risk Analysis
Lee Enterprises disclosed 17 risk factors in its most recent earnings report. Lee Enterprises 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
Lee Enterprises Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.13B | 31.81 | 19.22% | 0.95% | 10.41% | 27.40% | |
66 Neutral | $989.93M | 17.78 | 6.91% | 2.78% | 1.38% | 296.53% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $180.28M | -3.05 | 46.64% | ― | -9.93% | 66.64% | |
47 Neutral | $76.69M | -0.12 | -567.03% | ― | -28.88% | -15473.93% | |
46 Neutral | $276.45M | -1.64 | -7.87% | ― | -13.33% | -299.71% |
* Communication Services Sector Average
LEE
Lee Enterprises
8.11
1.34
19.79%
SSP
E. W. Scripps Company Class A
3.02
-0.73
-19.47%
NYT
New York Times
74.96
19.43
35.00%
SCHL
Scholastic
45.53
24.41
115.59%
SEAT
Vivid Seats
6.98
-28.22
-80.17%
Lee Enterprises Corporate Events
Executive/Board Changes
Lee Enterprises announces retirement of longtime board director
Neutral
Jul 10, 2026
On July 7, 2026, Lee Enterprises, Incorporated disclosed that longtime director Mary Junck informed the Board she will retire from the Board of Directors, effective July 31, 2026. The company stated that Junck’s retirement involves no disagr...
Business Operations and Strategy
Lee Enterprises to Manage Hoffmann Newspaper Publications Nationwide
Positive
May 20, 2026
On May 14, 2026, Lee Enterprises entered into a management agreement with Hoffmann Media Group under which Lee will manage and operate certain Hoffmann newspaper publications and their digital properties across markets including Florida, Californi...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Lee Enterprises Highlights Strong Q2 2026 Digital-Driven Results
Positive
May 7, 2026
Lee Enterprises reported strong preliminary results for its second quarter of fiscal 2026, ended March 29, 2026, underscoring the accelerating shift of its business toward digital products and revenue streams. Total operating revenue reached $122 ...
Business Operations and StrategyExecutive/Board Changes
Lee Enterprises Appoints Bekke CEO, Rinehults CFO
Positive
Apr 24, 2026
On April 23, 2026, Lee Enterprises’ board named veteran executive Nathan E. Bekke as President and Chief Executive Officer and appointed Joshua P. Rinehults as Vice President, Chief Financial Officer and Treasurer, formalizing interim roles ...
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.