Lee Enterprises (LEE) AI Stock Analysis

• Market Cap: $25.42M
• Dividend Yield: N/A
• Average Volume (3M): 54.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -8.02%
• EPS Growth: -44.34%
• Country: US
• Employees: 2,674
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -1.06
• Shares Outstanding: 6,261,825
• 10 Day Avg. Volume: 82,789
• 30 Day Avg. Volume: 54,011
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 20.02
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 28.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-1.48% Downside)

Lee Enterprises faces significant financial challenges, with declining revenues and high leverage being the most critical issues. While there is progress in digital transformation and cost management, the stock's technical indicators and valuation remain weak. The proposed rights offering is a positive step but does not offset the broader financial concerns.

Positive Factors

Digital Revenue Growth

Strong digital revenue growth indicates successful adaptation to digital trends, enhancing long-term revenue potential and market position.

Cost Management

Effective cost management improves operational efficiency and supports margin sustainability, crucial for long-term financial health.

Favorable Credit Agreement

The favorable credit agreement provides financial stability and flexibility, supporting strategic initiatives and reducing financial risk.

Negative Factors

Declining Revenues

Despite some EBITDA growth, overall declining revenues indicate challenges in maintaining traditional revenue streams, impacting long-term growth.

High Financial Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and increasing vulnerability to economic downturns.

CFO Resignation

The CFO's departure could disrupt financial strategy execution and leadership stability, affecting long-term strategic initiatives.

Lee Enterprises Business Overview & Revenue Model

Company Description

Lee Enterprises, Incorporated provides local news and information, and advertising services in the United States. The company offers print and digital editions of daily, weekly, and monthly newspapers and publications; and web hosting and content management services. It also provides advertising and marketing services, such as audience extension, search engine optimization, search engine marketing, web and mobile production, social media services, and reputation monitoring and management. In addition, the company offers integrated digital publishing and content management solutions for creating, distributing, and monetizing multimedia content for media publications, universities, television stations, and niche publications. Further, it provides commercial printing services; distributes third party publications; and operates a digital marketing agency. The company was founded in 1890 and is based in Davenport, Iowa.

How the Company Makes Money

Lee Enterprises generates revenue through several key streams, primarily from advertising and circulation. The advertising segment includes digital, print, and classified advertising, serving local and national advertisers looking to reach targeted audiences. The circulation revenue comes from subscriptions and single-copy sales of its newspapers. In addition, the company has been enhancing its digital offerings, which include digital subscriptions and online advertising, to adapt to changing consumer preferences. Significant partnerships with technology firms and digital service providers also contribute to its revenue, allowing Lee to expand its reach and improve its digital advertising capabilities. Overall, the company focuses on transitioning towards a more digitally-oriented model while maintaining its traditional print revenue streams.

Lee Enterprises Financial Statement Overview

Summary

Lee Enterprises is facing significant financial challenges, including declining revenues, negative net profit margins, and high financial leverage. The balance sheet shows potential solvency risks with negative stockholders' equity, and cash flow stability remains a concern despite some improvements.

Income Statement

Lee Enterprises has faced declining revenues over the past few years, with a negative revenue growth rate of -3.35% in the most recent year. The company also reported negative net profit margins, indicating ongoing profitability challenges. Despite a positive gross profit margin in previous years, the recent decline in EBIT and EBITDA margins highlights operational inefficiencies.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity and a high debt-to-equity ratio. This indicates potential solvency risks. The negative return on equity further underscores the company's struggles to generate returns for shareholders.

Cash Flow

Cash flow analysis shows some improvement in free cash flow growth, but the company still faces challenges with negative operating cash flow. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses, but overall cash flow stability remains a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	581.81M	562.34M	611.38M	691.14M	780.97M	794.65M
Gross Profit	455.05M	314.52M	594.57M	665.79M	750.87M	764.87M
EBITDA	17.72M	16.70M	37.66M	69.01M	79.11M	97.75M
Net Income	-41.27M	-1.85M	-25.84M	-5.27M	-2.02M	22.75M
Balance Sheet
Total Assets	622.65M	601.73M	649.17M	711.62M	744.04M	843.55M
Cash, Cash Equivalents and Short-Term Investments	14.13M	9.99M	9.60M	14.55M	16.18M	26.11M
Total Debt	485.63M	481.58M	483.85M	500.08M	516.42M	548.91M
Total Liabilities	660.85M	642.69M	656.50M	687.91M	726.80M	800.32M
Stockholders Equity	-40.50M	-43.31M	-9.89M	21.24M	15.01M	41.10M
Cash Flow
Free Cash Flow	-5.69M	-7.08M	-8.09M	-7.63M	-4.11M	42.60M
Operating Cash Flow	504.00K	-5.54M	1.12M	-2.52M	3.43M	50.08M
Investing Cash Flow	8.35M	7.71M	3.73M	7.98M	6.91M	-2.28M
Financing Cash Flow	-8.15M	-1.78M	-9.80M	-7.09M	-19.69M	-55.42M

Lee Enterprises Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.06 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.33, and below the 200-day MA of 6.17, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEE.

Lee Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	79 Outperform	$11.03B	33.12	17.63%	0.99%	8.43%	21.38%
SSP	64 Neutral	$389.84M	-10.03	1.81%	―	-3.27%	86.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GCI	58 Neutral	―	―	44.25%	―	-8.56%	―
SCHL	53 Neutral	$728.27M	-44.09	-1.14%	2.76%	0.97%	-197.80%
LEE	45 Neutral	$25.42M	-0.65	―	―	-8.02%	-44.34%
SEAT	45 Neutral	$107.57M	-0.30	-51.54%	―	-16.83%	-485.31%

Lee Enterprises Corporate Events

Lee Enterprises Reschedules Special Stockholder Meeting

On December 2, 2025, Lee Enterprises announced the postponement and rescheduling of its Special Meeting of Stockholders from December 4, 2025, to December 19, 2025. The company believes this change will allow for more stockholder engagement and maximize participation. The purpose of the meeting and the proposals to be voted on remain unchanged, and proxies submitted prior remain valid unless changed or revoked. This decision reflects Lee Enterprises’ focus on ensuring comprehensive stockholder involvement in its decision-making processes.

Lee Enterprises Reports Q4 2025 Financial Results

Lee Enterprises reported its fourth quarter and full fiscal year 2025 results, highlighting a $2 million year-over-year growth in Adjusted EBITDA on a comparable basis. The company saw a 16% increase in digital-only subscription revenue for the quarter, marking five consecutive years of industry-leading performance. Digital revenue accounted for 53% of total operating revenue, with digital advertising and marketing services contributing significantly. Despite a net loss of $6 million for the quarter, Lee Enterprises continues to focus on its digital transformation strategy, aiming for sustainable growth and long-term value capture. The company also made strategic financial moves, such as terminating its pension plan to reduce balance sheet volatility, and successfully managing its debt obligations through organic free cash flow generation.

Lee Enterprises CFO Tim Millage Resigns

On November 21, 2025, Lee Enterprises announced the resignation of Tim Millage, its Vice President, Chief Financial Officer, and Treasurer, effective February 28, 2026. Millage is leaving to pursue a role in church ministry, specifically as an Executive Pastor at Coram Deo Bible Church in Davenport, Iowa. The company has initiated a search for his replacement and Millage will provide consulting services until May 31, 2026. His departure is not due to any disagreements with the company, and he expressed confidence in Lee’s strategic direction, particularly its Three Pillar Digital Growth Strategy. This strategy has been successful in transforming revenue composition and positioning the company for long-term value creation.

Lee Enterprises Announces Proposed Rights Offering

On November 10, 2025, Lee Enterprises announced its intent to initiate a Proposed Rights Offering to raise up to $50 million, aimed at supporting its digital transformation. This initiative is expected to potentially reduce the company’s term loan interest rate from 9% to 5% for five years, saving approximately $18 million annually. The raised capital will be used for working capital and investments in technology to enhance advertising strategies, audience outreach, and digital products. The company is also seeking stockholder consent to amend its charter for additional shares and new classes of stock, with the offering conditioned on receiving requisite consents.