Lee Enterprises Posts 95% YoY Adjusted EBITDA Growth, Digital Revenue at 56%
Lee Enterprises’ second-quarter Adjusted EBITDA surged 95% year-over-year to $15 million on revenue of $122 million, with digital sales of $68 million accounting for 56% of the total. The company reduced cash costs by 15%, boosted cash to $53 million, cut interest rates to 5%, and reaffirmed FY26 EBITDA growth.
1. Q2 Financial Highlights
Lee Enterprises reported total operating revenue of $122 million for the quarter ended March 29, 2026, with Adjusted EBITDA rising 95% year-over-year to $15 million and net loss narrowing to $2 million, an 86% improvement.
2. Digital Transformation and Subscriber Growth
Digital revenue reached $68 million, representing 56% of total operating revenue. Digital-only subscriber revenue was $22 million, with 591,000 subscribers and 17% annual growth over three years, while digital advertising and marketing services brought in $41 million.
3. Cost Optimization and Capital Structure
Operating expenses fell 17% year-over-year excluding insurance recoveries, cash on hand rose to $53 million, and net debt stood at $402 million. A mid-quarter amendment cut the interest rate to 5%, yielding annual savings of about $18 million.
4. Outlook and Guidance
The company reaffirmed mid-single-digit Adjusted EBITDA growth for fiscal 2026, emphasizing ongoing investments in digital expansion and disciplined cost management to drive margin improvement and scalability.