Lee Enterprises (LEE) AI Stock Analysis

• Market Cap: $194.15M
• Dividend Yield: N/A
• Average Volume (3M): 54.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -8.02%
• EPS Growth: -44.34%
• Country: US
• Employees: 2,674
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -0.92
• Shares Outstanding: 22,239,630
• 10 Day Avg. Volume: 82,789
• 30 Day Avg. Volume: 54,011
• 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 Cap: 2.77
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 23.62
• 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: 51 Neutral
• Price Target: $9.00 ▲(76.82% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by weak financial performance (revenue contraction, net losses, and negative equity with substantial leverage), partially offset by improved near-term operating momentum highlighted on the earnings call (strong Q1 adjusted EBITDA and material interest savings). Technicals are supportive but stretched (overbought signals), while valuation is difficult to assess with a negative P/E and no dividend yield provided.

Positive Factors

Digital Revenue Scale

Lee has shifted the revenue base toward digital, with digital at 54% of Q1 revenue and ~300M LTM. A large, growing pool of 609k digital-only subscribers and stated targets (e.g., $450M digital goal) support recurring revenue and lower structural exposure to print declines, improving long-term revenue durability if retention and monetization hold.

Margin Improvement & Cost Control

Sustained cost reductions and operational efficiencies materially improved margins and operating cash flow in Q1, producing positive adjusted EBITDA and reduced cash burn. If the company preserves these structural cost bases and invests in scalable digital products, higher margin profile can support reinvestment and deleveraging over the medium term.

Capital Structure Relief & Governance

The $50M strategic equity infusion plus a five-year cut in interest rate to 5% on ~$455M of debt delivers lasting interest savings (~$18M annually) and improves cash flow flexibility. Coupled with board/leadership changes, this reduces near-term refinancing pressure and aligns governance with the digital transformation plan.

Negative Factors

Negative Equity & Leverage

Negative shareholders' equity and historically elevated leverage constrain financial flexibility, increase refinancing and covenant risk, and limit the firm's ability to absorb shocks. This structural capital weakness makes durable investment and balance-sheet-driven growth harder without sustained cash flow improvement or further capital actions.

Ongoing Legacy Revenue Decline

A persistent multi-year decline in legacy (print) revenue erodes the durable top-line base. Even with digital growth, the pace of legacy declines can outstrip digital gains if subscription ARPU or ad yields weaken, creating a structural dependency on successful digital monetization to stabilize long-term revenue.

Reliance on External Financing

Repeated reliance on equity infusion and planned asset sales indicates operating cash flow alone has been insufficient to de-lever. This structural dependence increases dilution and execution risk, and suggests that sustainable balance-sheet repair is contingent on continued capital access or materially improved free cash generation.

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

Financials remain pressured: TTM revenue is down (~2.6%) with ongoing multi-year contraction, and profitability is weak with net losses (TTM net margin ~-4.8%) despite thin positive EBIT (~1.2%). The balance sheet is a major risk with negative stockholders’ equity and historically heavy leverage, though TTM cash flow is a relative positive (operating CF ~$6.3M; FCF ~$5.5M) but still volatile.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined to about $548M (down ~2.6%), continuing a multi-year downtrend from ~$795M in 2021. Profitability is weak: the company is still reporting net losses (TTM net margin about -4.8%), and operating profitability is thin (TTM EBIT margin ~1.2%, EBITDA margin ~4.2%). A positive is that gross margin is solid in the most recent period, but overall earnings power remains pressured by shrinking revenue and persistently negative bottom-line results.

Balance Sheet

Leverage and capital structure are the key concern. Stockholders’ equity is negative in the most recent periods (TTM and 2025 annual), which limits financial flexibility and makes debt-to-equity less meaningful as a solvency gauge. While TTM total debt shown is low versus prior annual periods, the annual balance sheets indicate historically high debt levels relative to assets and equity, and the negative equity position heightens refinancing and downturn risk.

Cash Flow

Cash generation is mixed. TTM (Trailing-Twelve-Months) operating cash flow is positive (~$6.3M) and free cash flow is also positive (~$5.5M), which is a constructive improvement versus several years of negative free cash flow. However, cash flow momentum is volatile: TTM free cash flow growth is sharply negative, and prior annual periods include negative operating cash flow (2025) and consistently negative free cash flow (2022–2025). Overall, liquidity support from cash flow looks uneven and not yet durable.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	547.84M	562.34M	611.38M	691.14M	780.97M	794.65M
Gross Profit	314.18M	314.52M	594.57M	665.79M	750.87M	764.87M
EBITDA	22.77M	16.70M	37.66M	69.01M	79.11M	97.75M
Net Income	-26.46M	-37.59M	-25.84M	-5.27M	-2.02M	22.75M
Balance Sheet
Total Assets	592.56M	601.73M	649.17M	711.62M	744.04M	843.55M
Cash, Cash Equivalents and Short-Term Investments	12.63M	9.99M	9.60M	14.55M	16.18M	26.11M
Total Debt	496.98M	481.58M	483.85M	500.08M	516.42M	548.91M
Total Liabilities	639.00M	642.69M	656.50M	687.91M	726.80M	800.32M
Stockholders Equity	-48.74M	-43.31M	-9.89M	21.24M	15.01M	41.10M
Cash Flow
Free Cash Flow	5.52M	-7.08M	-8.09M	-7.63M	-4.11M	42.60M
Operating Cash Flow	6.27M	-5.54M	1.12M	-2.52M	3.43M	50.08M
Investing Cash Flow	3.09M	7.71M	3.73M	7.98M	6.91M	-2.28M
Financing Cash Flow	-2.86M	-1.78M	-9.80M	-7.09M	-19.69M	-55.42M

Lee Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEE, the sentiment is Positive. The current price of 5.09 is below the 20-day moving average (MA) of 6.44, below the 50-day MA of 5.29, and below the 200-day MA of 5.30, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEE.

Lee Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	78 Outperform	$12.31B	36.02	―	0.95%	8.43%	21.38%
SCHL	65 Neutral	$836.01M	-167.06	-0.35%	2.78%	2.53%	-23.86%
SSP	64 Neutral	$308.14M	-7.93	1.81%	―	-3.27%	86.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LEE	51 Neutral	$194.15M	-2.02	―	―	-8.02%	-44.34%
SEAT	46 Neutral	$81.33M	-0.23	-51.54%	―	-16.83%	-485.31%

Lee Enterprises Corporate Events

Lee Enterprises Raises Capital and Cuts Debt Costs

Lee Enterprises reported preliminary results for its first fiscal quarter ended December 28, 2025, highlighting strong operating performance driven by digital growth and cost controls. Total operating revenue was $130 million, with digital revenue of $70 million accounting for 54% of the total, while digital-only subscription revenue rose 5% year over year to $23 million as digital subscribers reached 609,000.

The company delivered Adjusted EBITDA of $12 million, up $5 million from the prior year, aided by $2 million in cyber insurance reimbursement, while net loss narrowed to $5 million as operating expenses fell 16% to $126 million. Lee also closed a $50 million private placement of common stock in February 2026 that triggered an amendment to its BH Finance credit agreement, cutting the interest rate on $455 million of debt from 9% to 5% for five years and positioning the publisher for improved cash flow, reduced balance sheet volatility through the termination of its fully funded pension plan, and continued execution of its digital growth strategy.

The most recent analyst rating on (LEE) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.

Lee Enterprises Completes Strategic Investment and Leadership Transition

On February 5, 2026, Lee Enterprises closed a previously announced $50 million strategic equity private placement led by investor David Hoffmann, alongside other existing shareholders, providing committed capital intended to bolster the company’s financial and governance foundation. The transaction triggered a change of control, with Hoffmann and affiliates acquiring a majority stake and Hoffmann being appointed chairman of the board, while interim CEO Nathan Bekke highlighted the deal’s role in supporting Lee’s ongoing digital transformation. Concurrent with the investment, a previously agreed amendment to Lee’s credit facility became effective, lowering the interest rate on roughly $455.5 million of long-term debt from 9% to 5% for five years, a move that materially improves the company’s capital structure and cash flow outlook and is expected to generate substantial annual interest savings. In related governance and capital measures completed between February 3 and February 5, 2026, shareholders approved key proposals enabling the share issuance, the company terminated its shareholder rights plan, granted investors customary registration rights for resales, and implemented leadership changes including the retirement of CEO Kevin Mowbray and CFO Timothy Millage and the appointment of interim CEO Bekke and interim CFO Josh Rinehults, reshaping Lee’s ownership, board and executive team as it enters its next phase.

The most recent analyst rating on (LEE) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.

Lee Enterprises Announces Major Recapitalization and Leadership Transition

On December 30, 2025, Lee Enterprises entered into a definitive stock purchase agreement for a $50 million private placement of common stock at $3.25 per share, led and backstopped by investor David Hoffmann alongside other existing shareholders. The company plans to use the proceeds to bolster its balance sheet, and the transaction is expected to trigger an amendment to its credit facility that would cut the interest rate on roughly $455.5 million of long-term debt from 9% to 5% for five years, materially improving cash flow and capital structure. As part of the deal, subject to closing conditions and shareholder approval expected in the first quarter of 2026, Hoffmann is slated to join the board as chair, while the board and major stakeholders have signed voting agreements supporting the transaction, signaling a coordinated governance reset aimed at long-term value creation. Concurrently, longtime President and CEO Kevin Mowbray announced his retirement effective at closing, with Chief Operating Officer Nathan Bekke expected to serve as interim CEO as the board conducts a search for a permanent successor, marking a significant leadership transition alongside the recapitalization.

The most recent analyst rating on (LEE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.

Lee Enterprises Cancels Special Meeting Amid Strategic Review

On November 13, 2025, Lee Enterprises filed a definitive proxy statement for a special stockholder meeting that had been scheduled for December 19, 2025, but on December 18, 2025, the board of directors decided to cancel the meeting and withdraw the proposals that were to be considered. The company indicated that it is continuing to evaluate a range of potential strategic and financing transactions, and the cancellation of the meeting is intended to help facilitate that ongoing process.

The most recent analyst rating on (LEE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.

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.

The most recent analyst rating on (LEE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.

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.

The most recent analyst rating on (LEE) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lee Enterprises stock, see the LEE Stock Forecast page.