GTN-A · Gray Media, Inc.

Gray Media's Q1 2026 results showed total revenue of $768 million at the high end of guidance despite a 2% year-over-year decline, driven by core advertising revenue of $352 million exceeding expectations with a 2% increase on both reported and organic bases. Political advertising surged 131% to $30 million, hitting the top of the $25-30 million guidance range, while retransmission consent revenue fell 11% to $339 million due to subscriber declines, one Atlanta station transitioning to independent status, and a resolved distribution partner dispute, resulting in net retransmission revenue down 3% to $142 million. Operating expenses improved with broadcasting expenses dropping 4% to $555 million at the low end of guidance, though corporate expenses rose to $39 million due to transaction-related costs. Adjusted EBITDA declined 4% to $154 million, and the company reported a net loss of $20 million versus $9 million last year. CEO Hilton Howell highlighted solid core advertising and political performance, visibility into full-year retransmission growth post-negotiations, Q2 core advertising softness offset by midterm political potential, and recent station additions in four new markets plus closures of seven-market Allen Media deal for $115 million and three-market Block Communications deal for $80 million. Balance sheet remains stable with $259 million cash, $5.8 billion debt, and net debt of $5.5 billion; leverage ratios include First Lien at 2.56x, Secured at 3.79x, and Total at 5.94x. Liquidity strong at nearly $1 billion including $745 million revolver availability. Q2 guidance projects total revenue $780-800 million with core advertising down mid-single digits and political $60-70 million; full-year items include $440 million interest expense and $140 million capex. Recent debt actions include credit agreement amendment, 2026 notes redemption, and term loan repayment, pushing next maturity to 2028.