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Lee Enterprises Inc. (LEE)
NASDAQ:LEE
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Lee Enterprises
(NASDAQ:LEE)
Rating:46Neutral
Price Target:
$4.50
▲(8.70% Upside)
Lee Enterprises (LEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.14M
Dividend YieldN/A
Average Volume (3M)21.87K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-5.68%
EPS Growth-127.26%
CountryUS
Employees2,674
SectorCommunication Services
Sector Strength85
IndustryPublishing
Share Statistics
EPS (TTM)-0.31
Shares Outstanding6,220,064
10 Day Avg. Volume35,860
30 Day Avg. Volume21,868
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-5.24
Price to Sales (P/S)0.08
P/FCF Ratio-6.40
Enterprise Value/Market Cap18.87
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit2.27
Enterprise Value/Ebitda-28.74
Forecast
1Y Price Target
$4.50Price Target Upside8.70% Upside
Rating ConsensusHold
Number of Analyst Covering1
Lee Enterprises Business Overview & Revenue Model
Company DescriptionLee Enterprises, Inc. is a publicly traded media company based in Davenport, Iowa, primarily engaged in providing local news and information through its portfolio of newspapers, digital platforms, and other related services. The company operates a number of daily and weekly newspapers, as well as online news websites, serving a diverse array of communities across the United States. Lee Enterprises focuses on delivering high-quality journalism, advertising solutions, and subscription services to its readers and advertisers.
How the Company Makes MoneyLee Enterprises generates revenue through multiple streams, primarily including advertising sales, subscription fees, and digital services. The advertising segment encompasses print and digital ads, with local businesses and national advertisers purchasing ad space to reach targeted audiences. Subscription revenue is derived from individuals and households paying for access to Lee's print and digital content, which includes news articles, special features, and other editorial content. Additionally, the company has been expanding its digital offerings, including online subscriptions and digital marketing services for local businesses, further enhancing its revenue potential. Partnerships with various advertising networks and digital platforms also contribute to its earnings by broadening the reach and effectiveness of its advertising services.
Lee Enterprises Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q3-2025)
| % Change Since: -14.64%|
Next Earnings Date:Dec 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the company's strong digital transformation and financial performance, with significant growth in digital revenue and effective cost management. Despite the impact of a previous cyber incident, the company is on track to achieve ambitious digital revenue goals and continues to innovate with AI products.Q3-2025 Updates
Positive Updates
Significant Growth in Adjusted EBITDA
The third quarter showed significant growth in adjusted EBITDA over Q2, indicating strong financial performance.
Appointment of New Chief Operating Officer
Nathan Bekke was named Chief Operating Officer, bringing strategic leadership and operational excellence to drive digital growth and innovation.
Improvement in Local Advertising Revenue
Local advertising revenue trends improved by 7 points year-over-year, fueled by strength across a core base of 20,000 local advertisers.
Successful Launch of AI-Powered Suite
The launch of an AI-powered suite was achieved in partnership with WeLevel, expected to accelerate digital advertising growth.
Digital Subscription Revenue Growth
Digital subscription revenue grew 16% year-over-year on a same-store basis, driven by a 28% growth in ARPU.
Ambitious Digital Revenue Target
Aiming to achieve $450 million in digital revenue by 2028, with $305 million annual digital revenue as of this quarter.
AI Product Suite Expansion
Expansion of the AI product suite is expected to lift FY '25 digital revenue, aiding long-term digital revenue sustainability.
Annual Cost Reductions and Effective Management
Execution of $40 million in annualized cost reductions and a decrease in cash costs by 7% compared to the same quarter last year.
Favorable Credit Terms with Berkshire Hathaway
The company's credit agreement includes a 20-year runway and fixed interest rate, aiding in financial stability post-cyber incident.
Monetization of Non-Core Assets
Closed $9 million of asset sales with an additional $20 million identified for monetization, improving liquidity.
Negative Updates
Impact of Cyber Incident on Digital Subscribers
The cyber event continued to impact digital subscribers, resulting in a sequential decline in digitally-only subscribers.
Temporary Increase in Principal Debt Balance
The principal debt balance increased temporarily due to waived payments post-cyber incident, though recovery efforts are ongoing.
Company Guidance
During the Lee Enterprises 2025 Third Quarter Conference Call, the company reported significant digital transformation progress, with digital revenue reaching $305 million on a trailing 12-month basis and comprising 55% of the overall revenue for the quarter. The company's digital subscription revenue grew 16% year-over-year, driven by a 28% increase in ARPU, although there was a sequential decline in digitally-only subscribers to 670,000 due to residual impacts from a prior cyber event. The Ampli Digital Agency reported a 10% year-over-year revenue increase. The company executed $40 million in annualized cost reductions, leading to a 7% decrease in cash costs compared to the previous year. Operating revenue for the quarter was $141 million, with digital revenue growth of 4% on a same-store basis. The company has set a long-term digital revenue target of $450 million by 2028 and is committed to reducing its debt, having closed $9 million in asset sales year-to-date and identified an additional $20 million in noncore assets for monetization.Lee Enterprises Financial Statement Overview
Summary
Lee Enterprises is experiencing financial difficulties, with declining revenue, profitability, and cash flow metrics. The balance sheet indicates high leverage and negative equity, posing significant financial risks.Income Statement
Lee Enterprises shows declining revenue and profitability metrics. Gross and net profit margins have been negative, with a significant net loss in the TTM. The EBIT and EBITDA margins have also contracted, indicating profitability challenges.30
Negative
Balance Sheet
The balance sheet reveals a negative stockholders' equity, indicating financial instability and high leverage. The debt-to-equity ratio is unfavorable due to the absence of equity, and the equity ratio is negative, suggesting solvency issues.20
Very Negative
Cash Flow
The company faces negative free cash flow and operating cash flow, with declining free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow challenges and profitability issues.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 600.26M | 611.38M | 691.14M | 780.97M | 794.65M | 618.00M |
| Gross Profit | 225.33M | 594.57M | 665.79M | 750.87M | 764.87M | 593.76M |
| EBITDA | -17.82M | 37.66M | 69.01M | 105.55M | 97.75M | 95.16M |
| Net Income | -42.19M | -25.84M | -5.27M | -2.02M | 22.75M | -1.98M |
Balance Sheet | ||||||
| Total Assets | 623.93M | 649.17M | 711.62M | 744.04M | 843.55M | 864.06M |
| Cash, Cash Equivalents and Short-Term Investments | 4.66M | 9.60M | 14.55M | 16.18M | 26.11M | 33.73M |
| Total Debt | 485.80M | 483.85M | 500.08M | 516.42M | 548.91M | 609.24M |
| Total Liabilities | 660.03M | 656.50M | 687.91M | 726.80M | 786.85M | 893.69M |
| Stockholders Equity | -38.92M | -9.89M | 21.24M | 15.01M | 54.56M | -31.56M |
Cash Flow | ||||||
| Free Cash Flow | -19.44M | -8.09M | -7.63M | -4.11M | 42.60M | 41.77M |
| Operating Cash Flow | -10.29M | 1.12M | -2.52M | 3.43M | 50.08M | 49.87M |
| Investing Cash Flow | 6.77M | 3.73M | 7.98M | 6.91M | -2.28M | -118.18M |
| Financing Cash Flow | -7.92M | -9.80M | -7.09M | -19.69M | -55.42M | 93.39M |
Lee Enterprises Technical Analysis
Negative
4.14
Price Trends
6.11
Negative
7.32
Negative
10.60
Negative
Market Momentum
-0.57
Positive
26.75
Positive
3.72
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 4.14 is below the 20-day moving average (MA) of 5.50, below the 50-day MA of 6.11, and below the 200-day MA of 10.60, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 26.75 is Positive, neither overbought nor oversold. The STOCH value of 3.72 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.37B | 29.60 | 17.13% | 1.08% | 7.82% | 19.39% | |
63 Neutral | $221.03M | 5.18 | 8.30% | ― | 5.25% | ― | |
62 Neutral | $79.22M | 2.66 | -24.74% | 3.60% | -8.00% | -46.22% | |
60 Neutral | $43.32B | 5.10 | -7.47% | 4.18% | 2.51% | -40.18% | |
57 Neutral | $570.34M | 5.99 | 47.54% | ― | -8.00% | ― | |
54 Neutral | $62.04M | ― | -16.65% | ― | 105.31% | 95.66% | |
46 Neutral | $27.14M | ― | 0.00% | ― | -5.68% | -127.26% |
* Communication Services Sector Average
Performance Comparison
LEE
Lee Enterprises
4.14
-4.64
-52.85%
DALN
DallasNews
14.80
10.60
252.38%
SSP
E. W. Scripps Company Class A
2.58
0.46
21.70%
NYT
New York Times
57.61
4.41
8.29%
GCI
Gannett
3.86
-0.35
-8.31%
CCG
Cheche Group
0.77
-0.03
-3.75%
Lee Enterprises Corporate Events
Business Operations and StrategyFinancial Disclosures
Lee Enterprises Reports Strong Q3 2025 Financial Growth
Positive
Aug 8, 2025
On August 7, 2025, Lee Enterprises reported significant growth in its third-quarter fiscal 2025 results, highlighting a 92% increase in Adjusted EBITDA over the previous quarter. The company achieved a 16% year-over-year increase in digital-only subscription revenue and a 10% rise in revenue from its Amplified Digital® Agency. The quarter marked a milestone in Lee’s cyber recovery, with all mandatory payments since May 2025 funded through cash from operations. Lee’s strategic focus on reducing print-related expenses and reinvesting in digital growth areas has positioned it well for continued progress toward its long-term digital goals.
The most recent analyst rating on (LEE) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.
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.