Gray Media Swings to $75M Loss as Broadcasting Revenue Plummets

TL;DR

**GTN-A is a sell; broadcasting revenue is cratering, and they're bleeding cash from operations.**

AI Summary

Gray Media, Inc. (GTN-A) reported a significant decline in financial performance for the nine months ended September 30, 2025, with total revenue decreasing by 11.4% to $2,303 million from $2,599 million in the prior year. This was primarily driven by a 11.8% drop in broadcasting revenue, from $2,531 million to $2,233 million. The company swung to a net loss of $75 million for the nine-month period, a stark contrast to the net income of $206 million reported in the same period of 2024. Net loss attributable to common stockholders was $114 million, or $1.19 per basic share, compared to net income of $167 million, or $1.76 per basic share, in 2024. Operating income also fell sharply by 47.6% to $276 million from $526 million. Key risks include a $28 million impairment of intangible assets in 2025, which was not present in 2024, and a substantial decrease in cash provided by operating activities, down to $177 million from $383 million. The strategic outlook appears challenging given the declining revenue in its core broadcasting segment and the shift to a net loss.

Why It Matters

This significant downturn for Gray Media signals potential headwinds for investors, as the core broadcasting segment, which accounts for the vast majority of revenue, is under pressure. The shift from a substantial net income to a net loss could impact dividend sustainability and future growth prospects, potentially leading to a re-evaluation of the company's valuation. For employees, declining revenue and profitability could lead to cost-cutting measures or reduced investment in operations. In the broader market, this performance reflects challenges facing traditional media companies in a competitive landscape dominated by digital alternatives, potentially impacting other regional broadcasters.

Risk Assessment

Risk Level: high — The company reported a net loss of $75 million for the nine months ended September 30, 2025, a significant deterioration from a $206 million net income in the prior year. Furthermore, cash provided by operating activities decreased by 53.8% from $383 million in 2024 to $177 million in 2025, indicating a substantial reduction in operational cash generation.

Analyst Insight

Investors should consider divesting from GTN-A given the sharp decline in broadcasting revenue, the swing to a net loss, and the significant reduction in operating cash flow. The company's core business appears to be under severe pressure, and future profitability is uncertain.

Financial Highlights

revenue

$2,303M

total Assets

$10,321M

total Debt

$6,127M

net Income

-$75M

eps

-$1.19

cash Position

$182M

revenue Growth

-11.4%

Revenue Breakdown

Key Numbers

• $2,303M — Total Revenue (9 months ended Sep 30, 2025) (Decreased by 11.4% from $2,599 million in 2024)
• $75M — Net Loss (9 months ended Sep 30, 2025) (Swing from $206 million net income in 2024)
• $114M — Net Loss Attributable to Common Stockholders (9 months ended Sep 30, 2025) (Compared to $167 million net income in 2024)
• $1.19 — Basic Net Loss Per Share (9 months ended Sep 30, 2025) (Compared to $1.76 basic net income per share in 2024)
• $276M — Operating Income (9 months ended Sep 30, 2025) (Decreased by 47.6% from $526 million in 2024)
• $28M — Impairment of Intangible Assets (9 months ended Sep 30, 2025) (New expense not present in 2024)
• $177M — Net Cash Provided by Operating Activities (9 months ended Sep 30, 2025) (Decreased by 53.8% from $383 million in 2024)
• $182M — Cash at End of Period (Sep 30, 2025) (Increased from $135 million at December 31, 2024)
• 113 — Television Markets Served (Gray Media's reach across the US)
• 37% — US Television Households Reached (Gray Media's market penetration)

Key Players & Entities

• Gray Media, Inc. (company) — Registrant of the 10-Q filing
• The Nielsen Company, LLC (company) — Source of station rank and television household data
• Comscore, Inc. (company) — Source of station rank and television household data
• Raycom Sports (company) — Video production company owned by Gray Media
• Tupelo Media Group (company) — Video production company owned by Gray Media
• PowerNation Studios (company) — Video production company owned by Gray Media
• Assembly Atlanta (company) — Studio production facility owned by Gray Media
• Third Rail Studios (company) — Studio production facility owned by Gray Media
• New York Stock Exchange (regulator) — Exchange where GTN.A and GTN are traded
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Impairment of Intangible Assets [medium — financial]: The company recorded a $28 million impairment of intangible assets for the nine months ended September 30, 2025. This expense was not present in the prior year, contributing to the current period's net loss.
• Declining Operating Income and Cash Flow [high — financial]: Operating income decreased by 47.6% to $276 million from $526 million. Net cash provided by operating activities fell significantly by 53.8% to $177 million from $383 million, indicating a substantial reduction in the company's ability to generate cash from its core operations.
• Broadcasting Revenue Decline [high — market]: Total revenue decreased by 11.4% to $2,303 million, largely due to an 11.8% drop in broadcasting revenue to $2,233 million. This highlights a significant challenge in the company's core business segment.
• Shift to Net Loss [high — financial]: The company swung to a net loss of $75 million for the nine months ended September 30, 2025, compared to a net income of $206 million in the prior year. This deterioration in profitability is a key concern for investors.

Industry Context

Gray Media operates in the highly competitive US television broadcasting industry, reaching 37% of US households across 113 markets. The industry faces ongoing challenges related to shifting advertising spend, the rise of digital media, and evolving consumer viewing habits. Consolidation and the need for content diversification are key trends.

Regulatory Implications

As a broadcaster, Gray Media is subject to FCC regulations regarding content, ownership, and technical standards. Changes in these regulations or enforcement could impact operations and profitability. The company's licenses are critical assets subject to renewal and regulatory oversight.

What Investors Should Do

1. Monitor the sustainability of revenue generation in the core broadcasting segment amidst industry shifts.
2. Analyze the drivers behind the significant decline in operating income and cash flow to assess operational efficiency.
3. Evaluate the impact of the $28 million intangible asset impairment on future earnings potential and asset valuations.
4. Assess the company's strategy to navigate the transition to a net loss position and improve profitability.
5. Review management's plans to address the substantial decrease in cash provided by operating activities.

Glossary

Impairment of Intangible Assets

A reduction in the carrying value of an intangible asset on the balance sheet when its fair value falls below its book value, often due to a decline in its expected future economic benefits. (A $28 million charge for impairment of intangible assets in the current period contributed to the company's net loss.)

Net Cash Provided by Operating Activities

The total cash generated from a company's normal business operations over a period, excluding cash flows from investing and financing activities. (A significant decrease to $177 million from $383 million indicates a weakening ability to generate cash from core operations.)

Broadcast Licenses

Intangible assets representing the right granted by regulatory bodies to operate a broadcasting station. (These are significant assets on the balance sheet, valued at $5,310 million as of September 30, 2025.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Represents a substantial portion of the company's intangible assets, valued at $2,642 million.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Gray Media reported a 11.4% decrease in total revenue to $2,303 million, a sharp contrast to the prior year. The company swung from a net income of $206 million to a net loss of $75 million, with operating income falling 47.6%. A new $28 million impairment charge and a significant drop in operating cash flow to $177 million from $383 million highlight a deteriorating financial performance compared to the previous year.

Filing Documents

• gtn20250930_10q.htm (10-Q) — 2177KB
• ex_875016.htm (EX-31.1) — 11KB
• ex_875017.htm (EX-31.2) — 11KB
• ex_875018.htm (EX-32.1) — 4KB
• ex_875019.htm (EX-32.2) — 4KB
• 0001437749-25-033779.txt ( ) — 9804KB
• gtn-20250930.xsd (EX-101.SCH) — 62KB
• gtn-20250930_def.xml (EX-101.DEF) — 444KB
• gtn-20250930_lab.xml (EX-101.LAB) — 423KB
• gtn-20250930_pre.xml (EX-101.PRE) — 487KB
• gtn-20250930_cal.xml (EX-101.CAL) — 66KB
• gtn20250930_10q_htm.xml (XML) — 1989KB

Financial Statements

Financial Statements Condensed consolidated balance sheets (Unaudited) - September 30, 2025 and December 31, 2024 3 Condensed consolidated statements of operations (Unaudited) - three-months and nine-months ended September 30, 2025 and 2024 5 Condensed consolidated statements of comprehensive (loss) income (Unaudited) – three-months and nine-months ended September 30, 2025 and 2024 6 Condensed consolidated statements of stockholders' equity (Unaudited) – three-month periods ended March 31, June 30, and September 30, 2025 and 2024 7 Condensed consolidated statements of cash flows (Unaudited) - nine-months ended September 30, 2025 and 2024 9 Notes to condensed consolidated financial statements (Unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 5. Other Information 38 Item 6. Exhibits 39

SIGNATURES

SIGNATURES 40 2 PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements GRAY MEDIA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) September 30, December 31, 2025 2024 Assets: Current assets: Cash $ 182 $ 135 Accounts receivable, net 204 337 Current portion of program broadcast rights, net 25 17 Income tax refund receivable 6 6 Prepaid income taxes 40 25 Prepaid and other current assets 28 21 Total current assets 485 541 Property and equipment, net 1,532 1,577 Operating leases right of use asset 68 69 Broadcast licenses 5,310 5,311 Goodwill 2,642 2,642 Other intangible assets, net 180 290 Investments in broadcasting and technology companies 56 66 Deferred pension assets 21 19 Other 27 27 Total assets $ 10,321 $ 10,542 See notes to condensed consolidated financial statements. 3 GRAY MEDIA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except for share data) September 30, December 31, 2025 2024 Liabilities and stockholders ' equity: Current liabilities: Accounts payable $ 18 $ 75 Employee compensation and benefits 95 111 Accrued interest 103 112 Accrued network programming fees 105 79 Other accrued expenses 110 53 Federal and state income taxes 7 5 Current portion of program broadcast obligations 25 18 Deferred revenue 28 29 Dividends payable 16 15 Current portion of operating lease liabilities 10 10 Current portion of long-term debt 2 20 Total current liabilities 519 527 Long-term debt, less current portion and deferred financing costs 5,608 5,601 Deferred income taxes 1,310 1,347 Operating lease liabilities, less current portion 61 62 Other 15 72 Total liabilities 7,513 7,609 Commitments and contingencies (Note 10) Series A Perpetual Preferred Stock, no par value; cumulative; redeemable; designated 1,500,000 shares, issued and outstanding 650,000 shares, at each date

View Full Filing

View this 10-Q filing on SEC EDGAR