Lee Enterprises Reports Q3 Revenue Decline and Improved Net Loss Amid Digital Growth

Lee Enterprises, Incorporated reported its financial results for the third quarter and nine months ended June 29, 2025, revealing a total operating revenue of $141.3 million for the quarter, a decrease of 6.2% from $150.6 million in the same period last year. For the nine-month period, total operating revenue was $423.2 million, down 6.5% from $452.8 million in the prior year. The company experienced a net loss of $1.7 million for the quarter, significantly improved from a net loss of $3.7 million in the previous year, while the nine-month net loss widened to $29.9 million from $14.1 million.

The decline in revenue was attributed to a combination of factors, including a 20% drop in print subscription revenue and a 7.7% decrease in print advertising revenue, which were impacted by ongoing trends in the print media industry and a recent cybersecurity incident that disrupted operations. Digital subscription revenue, however, showed growth, increasing by 13.4% to $23.5 million for the quarter, with the total number of digital-only subscribers reaching 670,000. Digital advertising revenue also remained relatively stable, totaling $49.1 million, down just 1.6% year-over-year.

Operationally, Lee Enterprises has been focusing on digital transformation and cost management. The company reported a 20% reduction in compensation expenses, reflecting a decrease in full-time employees as part of its ongoing business transformation efforts. Total operating expenses for the quarter decreased by 6.4% to $137.3 million, driven by lower costs in newsprint and ink, which fell by 20.2%. However, restructuring costs surged by 88.2% to $7.1 million, primarily due to expenses related to the cybersecurity incident and ongoing business adjustments.

Looking ahead, Lee Enterprises is navigating a challenging environment marked by declining print revenues and the impacts of the cybersecurity incident, which has necessitated a reevaluation of its operational strategies. The company has implemented measures to enhance liquidity, including reducing operating and capital expenditures. Despite the current challenges, Lee Enterprises remains committed to its digital-first strategy, aiming to grow its audience and enhance engagement through improved digital offerings and marketing solutions. The company anticipates that these strategic initiatives will position it for future growth, although it acknowledges the ongoing risks and uncertainties in the media landscape.