Gray Media NYSE: GTN executives said the broadcaster finished the fourth quarter of 2025 ahead of its own expectations on both revenue and expenses, while highlighting renewed growth in net retransmission revenue and ongoing efforts to reduce leverage heading into a 2026 midterm election cycle.
Fourth-quarter results came in above guidance
Chairman and CEO Hilton Howell said Gray’s fourth-quarter 2025 total revenue was $792 million, which he noted was above the high end of the company’s guidance range. Total operating expenses before depreciation, amortization, impairment, and gains or losses on asset disposals were $618 million, or $5 million below the low end of guidance.
Howell added that broadcasting expenses declined $41 million year over year in the quarter, and fell $78 million, or about 3%, for the full year 2025 compared with 2024. The company reported a net loss attributable to common stockholders of $23 million for the quarter and Adjusted EBITDA of $179 million.
Political advertising was a contributor even in what management characterized as an off-cycle period. Howell said political advertising revenue totaled $12 million, coming in above expectations.
Net retransmission revenue returned to growth
Management emphasized that Gray’s Net Retransmission Revenue—retransmission revenue less network affiliation fees—“returned to growth” in the fourth quarter compared with the prior-year period. Howell described the improvement as a sign of progress in the company’s multiyear effort to create a more sustainable model amid changing subscriber trends.
Chief Financial Officer Jeff Gignac provided additional detail, noting that in the fourth quarter network affiliation expenses declined 13%, while Net Retransmission Revenue declined 7%. He also pointed to the impact of WANF’s move to an independent station beginning in the third quarter of 2025, which affected both revenue and expense comparability.
Despite guiding for a slight decline in Net Retransmission Revenue during the quarter, Gignac said Gray delivered growth of about $4 million, which he attributed largely to better-than-expected subscriber trends. For the full year, Net Retransmission Revenue was $547 million in 2025 compared with $550 million in 2024, which management described as essentially flat.
Looking ahead, Gignac said Gray’s first-quarter 2026 guidance of $148 million to $150 million for Net Retransmission Revenue implies continued modest growth, and he added that the company’s current expectation is for Net Retransmission Revenue to grow slightly for full-year 2026 compared with 2025.
Advertising trends and 2026 political setup
President and Co-CEO Pat LaPlatney said fourth-quarter core advertising revenue began strongly in October and ultimately finished the quarter up 3% year over year, slightly above the high end of guidance. He cited strength in services categories including financial, health, and home improvement, as well as continued growth in legal advertising. Gaming and lottery/gambling improved in the quarter, while automotive finished the quarter down low double digits.
For the full year, LaPlatney said core advertising was down 3%, but noted that the second half of 2025 ended in positive territory versus the second half of 2024. Digital revenue grew low double digits in the fourth quarter, and the company’s local direct business rose low single digits.
For the first quarter of 2026, Gray guided for core ad revenue to be approximately flat with the prior year. LaPlatney said February had been strong for the company, aided by Gray’s NBC affiliates carrying the Super Bowl and the Winter Olympics, while also noting the company operates non-NBC affiliates as well.
He also quantified event-driven revenue expectations for the quarter, stating the Super Bowl generated $11 million on Gray’s NBC and Telemundo affiliates in 2026 compared with $9 million on its FOX affiliates in 2025. The Winter Olympics on NBC are expected to contribute an estimated $15 million of net revenue in the quarter versus $8 million during the 2022 games.
On political advertising, LaPlatney said first-quarter 2026 guidance is $25 million to $30 million, compared with $26 million in the first quarter of 2022, which he described as a comparable period for midterm election cycles. He said the 2026 map appears favorable for Gray’s footprint, with competitive races in markets where Gray operates top-ranked local news stations.
Balance sheet actions, leverage, and capital spending
Gignac said Gray made further progress on its balance sheet in the fourth quarter, completing a $250 million add-on to its 9.625% Second Lien Notes at 102, and using part of the proceeds to call $125 million of its 10.5% First Lien Notes at 103. He characterized the move as part of a capital structure plan that aligns long-term funding with long-term investment for M&A while reducing interest costs.
Gray ended the quarter with over $1.1 billion in liquidity and $232 million available under its open market debt repurchase authorization. Year-end leverage metrics under its senior credit agreement were:
- 2.43x first lien leverage ratio
- 3.65x secured leverage ratio
- 5.8x total leverage ratio
In the Q&A, management reiterated a longer-term goal of getting leverage “back towards” 4x, while noting that the pace depends in part on political advertising performance. Gignac said the company has been proactive in managing the top of the capital structure and extending runway, with two political cycles before the next maturity.
On capital spending, Gignac said Gray finished 2025 with $74 million of CapEx excluding Assembly Atlanta, and that net capital investment in Assembly Atlanta during 2025 was $1 million after reimbursements related to public infrastructure. He said 2026 company-wide CapEx is estimated at approximately $140 million, reflecting higher political-year investment and planned projects, including taking advantage of bonus depreciation under what he referred to as the OBBBA bill.
Programming, distribution renewals, and strategic initiatives
Howell highlighted operational initiatives including new local and regional sports broadcasts and a range of content projects. He said Gray’s news operations earned 10 national Edward R. Murrow Awards, which he called the most of any media company in the U.S. The company also renewed and expanded several distribution relationships, including:
- A renewed NBC affiliation agreement covering 54 NBC markets for three additional years
- A renewed and expanded Telemundo portfolio to 47 markets, reaching 1.6 million Spanish-speaking households
Howell also said Gray’s digital team is transitioning apps and websites to the Quickplay platform powered by Google Cloud, and described Gray as Google’s first broadcast partner for Quickplay.
On M&A, Howell said Gray completed its previously announced acquisition of WBBJ-TV in Jackson, Tennessee for $25 million and expects to close other announced transactions in the coming months, subject to regulatory approvals. In response to an analyst question about industry consolidation, Howell said Gray believes consolidation is important to maintain local news across U.S. markets and expressed optimism about clarity on regulatory rules.
Separately, in response to questions about Assembly Atlanta, management said Gray had invested approximately $630 million in the project on a net basis through the end of 2025 and indicated it expects to announce development-related transactions during 2026.
Executives also discussed internal use of AI tools, describing “Ask Gray AI” as a way to automate time-consuming tasks and improve efficiency while maintaining a policy that any final product is reviewed and approved by a human.
About Gray Media NYSE: GTN
Gray Media NYSE: GTN is a U.S.-based broadcasting and digital media company that owns and operates a portfolio of local television stations and associated digital platforms. The company's core business centers on delivering local news, sports and entertainment programming through its network-affiliated broadcast outlets. In addition to traditional over-the-air distribution, Gray Media supports multi-platform video streaming and on-demand services for audiences across its markets.
Gray Media's television stations carry network programming from major national broadcasters, including ABC, CBS, NBC, Fox and The CW, and often feature locally produced news and public affairs content.
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