Gray Media Q4 Revenue Tops Guidance at $792M, Net Retransmission Up $4M
Gray Media delivered Q4 revenue of $792 million, topping its guidance range, while Net Retransmission Revenue increased $4 million after network affiliation fees fell 13%. The company added $250 million in second-lien notes, lifted liquidity above $1.1 billion and forecasts slight Net Retransmission Revenue growth for 2026.
1. Q4 Financial Performance
Gray Media reported Q4 2025 revenue of $792 million, exceeding the high end of its guidance range. Net Retransmission Revenue rose by $4 million as network affiliation expenses declined 13%, contributing to Adjusted EBITDA of $179 million despite a $23 million net loss.
2. Balance Sheet and Liquidity
The company bolstered liquidity to over $1.1 billion and completed a $250 million add-on to its 9.625% second-lien notes, using proceeds to call $125 million of first-lien debt. Year-end leverage ratios were 2.43x first-lien, 3.65x secured and 5.8x total, with a longer-term target near 4x.
3. 2026 Guidance and Outlook
Gray Media guided Q1 Net Retransmission Revenue of $148 million to $150 million and expects slight full-year 2026 growth. Core advertising is forecast to be roughly flat, with event revenue—$11 million from the Super Bowl and an estimated $15 million from the Winter Olympics—supporting first-quarter results.
4. Cost Reductions and Operational Initiatives
Broadcasting expenses fell $78 million in 2025 and capital spending was $74 million excluding Assembly Atlanta. The company expanded local sports broadcasts, earned 10 national Edward R. Murrow Awards and renewed NBC affiliations in 54 markets while extending Telemundo to 47 markets, reaching 1.6 million households.