Key Financial Data
- Total revenue: $749 million (-21%)
- Core advertising revenue: $355 million (-3%)
- Political advertising revenue: $8 million (-95%)
- Distribution fee revenue: $346 million (-6%)
- Production revenue: $25 million (-4%)
- Operating expenses: $525 million (-5%)
- Long-term debt: $5.6 billion
- Read more Q3 2025 media earnings coverage
Gray Media reported third quarter revenue of $749 million, down 21 percent from a year earlier, as the company faced a predictable downturn in political advertising while maintaining a tight grip on expenses and balance sheet management.
The Atlanta-based broadcaster said the quarter’s results came in at or above the high end of its prior guidance, even as cyclical softness in advertising revenue and network fee pressures weighed on the top line. Core advertising totaled $355 million, off 3 percent from last year, while retransmission revenue slipped 6 percent to $346 million. Political advertising, a major driver in even-numbered election years, fell 95 percent to $8 million.
Broadcast operating expenses declined 5 percent to $542 million, reflecting what executives described as “the ongoing realization of our 2024 cost actions and continued focus on cost containment.” Adjusted EBITDA dropped to $162 million from $338 million a year earlier. The company reported a net loss attributable to common shareholders of $23 million, compared to a profit of $83 million in the same period of 2024.
Executives stressed that Gray’s cost discipline and recent financing moves have positioned it for long-term stability. The company issued $1.7 billion in new secured notes during the quarter, using proceeds to redeem near-term maturities and reduce term loan balances. As of September 30, Gray reported $182 million in cash and $742 million in borrowing availability under its $750 million credit facility.
“Reducing debt and leverage remains our top capital allocation priority,” said Chief Executive Officer Hilton Howell. “We have taken concrete steps to act on this priority and we will continue to do so until we have achieved our goals in this area.”
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Chief Financial Officer Jeff Gignac told analysts the company reduced its outstanding debt principal balance by $246 million during the quarter and expects to lower total net debt by roughly $500 million for the year. “We’re continuing to execute on the plan and pulling the levers that we have available to generate cash flow,” he said.
Executives also pointed to operational initiatives aimed at strengthening the company’s local station portfolio and digital growth. During the quarter, Gray entered into a historic station swap and three additional acquisition agreements that will expand its footprint into six new markets and create 11 new Big Four network duopolies once closed.
President and Co-CEO Pat LaPlatney said Gray’s core ad revenue grew year over year despite political displacement and competition from the Summer Olympics. “Our new local direct business in Q3 2024 was up almost 14 percent over Q3 2023,” he said. “Since August, we’ve identified and begun implementing various initiatives that will allow us to reduce our operating expense run rate by approximately $60 million on an annualized basis.”
Chief Operating Officer Sandy Breland highlighted the company’s growing slate of sports rights and local content. “In late September, we announced a significant media rights deal with the New Orleans Pelicans,” she said. “It brings every non-national Pelicans NBA game to 4.1 million households through our new Gulf Coast Sports and Entertainment Network.”
Breland added that the company’s local newscasts remain a key differentiator.
“Collectively, our 5 p.m. newscasts averaged 4.4 million viewers,” she said. “That’s 25 percent more than Fox News’s ‘The Five,’ despite reaching less than half as many homes. That is the power and reach of local broadcast television.”
Looking ahead, executives expressed cautious optimism about advertising trends heading into 2025. LaPlatney said the company has begun to see “some green shoots” in recent days, suggesting modest improvement in the post-election environment.
Howell said Gray is focused on “being a stronger, more efficient and impactful company that is best equipped to compete in the ever-changing business environment.”
For the fourth quarter, Gray expects total revenue between $767 million and $782 million, with core advertising in the range of $380 million to $390 million and political advertising of $7 million to $8 million.
