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Lee Enterprises Inc. (LEE)
NASDAQ:LEE
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Lee Enterprises
(NASDAQ:LEE)
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Rating:45Neutral
Price Target:
$4.00
▼(-5.44% Downside)
Lee Enterprises faces significant financial challenges, with declining profitability and high leverage being the most critical issues. While the earnings call showed promise in digital growth and cost management, the overall financial instability and bearish technical indicators weigh heavily on the stock's outlook.
Lee Enterprises (LEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.93M
Dividend YieldN/A
Average Volume (3M)49.85K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-5.68%
EPS Growth-127.26%
CountryUS
Employees2,674
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)-0.31
Shares Outstanding6,262,967
10 Day Avg. Volume44,513
30 Day Avg. Volume49,852
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap19.02
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit1.13
Enterprise Value/Ebitda28.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Lee Enterprises Business Overview & Revenue Model
Company DescriptionLee 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 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: |
Next Earnings Date:Dec 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in digital revenue, successful cost management, and innovative product launches, though it acknowledged ongoing challenges from the cyber incident affecting subscriber metrics.Q3-2025 Updates
Positive Updates
Significant Growth in Adjusted EBITDA
The third quarter represented significant growth in adjusted EBITDA over Q2, indicating strong financial performance.
Improvement in Local Advertising Revenue
Local advertising revenue trends showed meaningful improvement with the year-over-year trend favorable by 7 points, driven by sustained strength across a core base of 20,000 local advertisers.
Launch of AI-Powered Suite
The company launched its first-to-market AI-powered suite in Q2, including packages like Smart Answer, Smart Team, and Smart Suite HQ, designed to enhance lead capture, customer engagement, and business automation.
Digital Subscription Growth
Digital subscription revenue grew 16% year-over-year on a same-store basis, driven by a 28% increase in ARPU, though the number of digitally-only subscribers ended at 670,000, down sequentially.
Digital Revenue Milestone
Total digital revenue reached $305 million on a trailing 12-month basis, with the third quarter digital revenue representing 55% of overall revenue.
Cost Management Success
Cash costs decreased by 7% compared to the same quarter last year, with the fiscal year expected to finish with a 3% to 5% decline in cash costs over the prior year.
Negative Updates
Impact of Cyber Incident
The cyber incident in February continued to affect subscription processes, impacting the activation of new digital subscribers.
Sequential Decline in Digital Subscribers
Although digital revenue grew, the number of digitally-only subscribers decreased sequentially, reflecting the ongoing impact of the cyber event.
Company Guidance
During Lee Enterprises' 2025 Third Quarter Webcast and Conference Call, significant guidance was provided on the company's digital transformation and financial performance. The company reported a robust 16% year-over-year growth in digital subscription revenue, with an impressive 28% increase in ARPU, although there was a sequential decline in subscribers to 670,000 due to a prior cyber incident. Despite these challenges, Lee achieved a 4% increase in total digital revenue on a same-store basis over the previous quarter, reaching $305 million annually, and aims for $450 million by 2028. Additionally, local advertising revenue improved favorably by seven points year-over-year, and the Ampli Digital Agency saw double-digit growth. The company's cost management strategy resulted in a 3% to 5% decline in cash costs for the fiscal year, with additional asset monetization expected to generate $20 million. Overall, Lee continues to focus on digital growth, leveraging AI-powered solutions, and remains committed to reducing debt and sustaining long-term shareholder value.Lee Enterprises Financial Statement Overview
Summary
Lee Enterprises is facing significant financial challenges with declining revenue, profitability, and cash flow metrics. The balance sheet shows high leverage and negative equity, indicating financial instability and solvency issues.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 | 581.81M | 611.38M | 691.14M | 780.97M | 794.65M | 618.00M |
| Gross Profit | 455.05M | 594.57M | 665.79M | 750.87M | 764.87M | 593.76M |
| EBITDA | 17.72M | 37.66M | 69.01M | 105.55M | 97.75M | 95.16M |
| Net Income | -41.27M | -25.84M | -5.27M | -2.02M | 22.75M | -1.98M |
Balance Sheet | ||||||
| Total Assets | 622.65M | 649.17M | 711.62M | 744.04M | 843.55M | 864.06M |
| Cash, Cash Equivalents and Short-Term Investments | 14.13M | 9.60M | 14.55M | 16.18M | 26.11M | 33.73M |
| Total Debt | 30.16M | 483.85M | 500.08M | 516.42M | 548.91M | 609.24M |
| Total Liabilities | 660.85M | 656.50M | 687.91M | 726.80M | 786.85M | 893.69M |
| Stockholders Equity | -40.50M | -9.89M | 21.24M | 15.01M | 54.56M | -31.56M |
Cash Flow | ||||||
| Free Cash Flow | -5.69M | -8.09M | -7.63M | -4.11M | 42.60M | 41.77M |
| Operating Cash Flow | 504.00K | 1.12M | -2.52M | 3.43M | 50.08M | 49.87M |
| Investing Cash Flow | 8.35M | 3.73M | 7.98M | 6.91M | -2.28M | -118.18M |
| Financing Cash Flow | -8.15M | -9.80M | -7.09M | -19.69M | -55.42M | 93.39M |
Lee Enterprises Technical Analysis
Negative
4.23
Price Trends
4.68
Negative
5.20
Negative
7.29
Negative
Market Momentum
-0.14
Negative
41.69
Neutral
39.08
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 4.23 is below the 20-day moving average (MA) of 4.45, below the 50-day MA of 4.68, and below the 200-day MA of 7.29, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 39.08 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
| ― | $9.28B | 29.34 | 17.13% | 1.18% | 7.82% | 19.39% | |
| ― | $214.65M | 5.00 | 8.30% | ― | 5.25% | ― | |
| ― | $779.68M | 10.25 | 44.25% | ― | -8.56% | ― | |
| ― | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
| ― | $720.73M | -43.63 | -1.14% | 2.79% | 0.97% | -197.80% | |
| ― | $127.60M | ― | -75.68% | ― | -10.52% | -420.74% | |
| ― | $26.93M | -0.63 | ― | ― | -5.68% | -127.26% |
* Communication Services Sector Average
LEE
Lee Enterprises
4.23
-14.67
-77.62%
SSP
E. W. Scripps Company Class A
2.43
0.16
7.05%
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56.99
5.20
10.04%
SCHL
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28.67
5.71
24.87%
GCI
Gannett
5.30
0.43
8.83%
SEAT
Vivid Seats
12.41
-67.39
-84.45%
Lee Enterprises Corporate Events
Lee Enterprises’ Earnings Call Highlights Digital Growth
Aug 12, 2025
Lee Enterprises’ recent earnings call painted a picture of robust digital transformation and financial health. The company reported significant growth in digital revenue and effective cost management strategies. Despite facing challenges from a previous cyber incident, Lee Enterprises remains on track to meet its ambitious digital revenue targets and continues to innovate with AI-driven products.
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.
Lee Enterprises Reports Strong Digital Revenue Growth
Aug 8, 2025
Lee Enterprises, Incorporated is a digital-first subscription platform providing local news and advertising services across 72 markets in the United States. The company is known for its focus on digital growth and transformation in the media industry.
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.