Gray Media Reports 5% Revenue Decline and $9 Million Net Loss in Q1 2025

Gray Media, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 5% to $782 million compared to $823 million in the same period of 2024. The decrease was primarily driven by a $28 million drop in core advertising revenue, which was impacted by the absence of significant political advertising, as 2025 is an off-year in the election cycle. Additionally, the company earned approximately $9 million from the Super Bowl broadcast on its FOX channels, a decrease from the $18 million earned from the CBS channels in the previous year. Retransmission consent revenue also fell slightly by $2 million, while production company revenue saw a modest increase of $3 million.

In terms of expenses, Gray Media's broadcasting costs before depreciation and amortization decreased by 1% to $577 million. This reduction was largely attributed to an $11 million decrease in payroll expenses, primarily due to lower incentive compensation. However, non-payroll expenses rose by $6 million, reflecting increased internet and sports programming costs. Corporate and administrative expenses increased by $4 million, driven by higher non-cash stock-based compensation. The company reported a net loss of $9 million for the quarter, compared to a net income of $88 million in the prior year, resulting in a loss per share of $0.23.

Operationally, Gray Media continues to maintain a strong presence in the broadcasting sector, serving 113 television markets that reach approximately 37% of U.S. television households. The company has also been active in managing its debt, with long-term debt totaling $5.6 billion as of March 31, 2025. The company has a revolving credit facility with $692 million available for borrowing, and it remains in compliance with all covenants under its debt agreements. Cash provided by operating activities increased to $132 million, up from $68 million in the previous year, indicating improved cash flow management despite the decline in net income.

Looking ahead, Gray Media anticipates continued challenges in the advertising market, particularly in political advertising, which is expected to rebound in the next election cycle. The company is also focused on its capital expenditures, estimating routine expenditures between $70 million and $75 million for the remainder of 2025, including costs related to its Assembly Atlanta project. Management remains optimistic about leveraging its digital assets and expanding its market share, while also navigating the complexities of the current economic environment.