Gray Television Inc. 2025 Annual Report: A Year of Challenges and Strategic Moves

As the largest owner of local television stations and digital assets in the United States, Gray Television operates 114 full-power television markets, reaching approximately 37% of U.S. television households. Despite the challenges faced in 2025, the company maintained a robust portfolio, featuring 77 markets with the top-rated television station and 97 markets with either the first or second highest-rated television station, as per Nielsen ratings. Notably, Gray Television also houses the largest Telemundo Affiliate group, covering 47 markets and over 1.6 million Hispanic TV households.

Gray Digital Media continues to excel as a full-service digital agency, providing advanced digital marketing strategies to clients at both national and local levels. The company’s diverse media properties include Raycom Sports, Tupelo Media Group, PowerNation Studios, Assembly Atlanta, and Third Rail Studios.

In 2025, Gray Television reported total revenues of $3.1 billion, down from $3.6 billion in 2024—a decrease of $549 million, or 15%. This decline was primarily attributed to reduced broadcast and digital advertising revenues. The company relies heavily on key revenue streams, including advertising, retransmission consent fees, and the production of television and event programming.

The revenue by segments for 2025 included:

Despite the decline in revenue, Gray Television managed to reduce broadcasting expenses by $78 million, or 3%, to $2.2 billion. However, production company expenses rose by approximately $12 million to $95 million, primarily due to increased property taxes at Assembly Atlanta and the non-recurring recovery from the Diamond Sports bankruptcy recorded in 2024. Corporate and administrative expenses rose by $9 million to $113 million, driven largely by increased professional services costs associated with pending business combination transactions.

The company recorded non-cash impairment charges of $30 million, reflecting changes in network affiliation and other asset value adjustments.

The key figures from the 2025 income statement include:

In a strategic effort to enhance its market presence, Gray Television announced the acquisition of WBBJ-TV (ABC) in Jackson, Tennessee, for $25 million, effective in early 2026. Additionally, the company sold its investment in FreeTV, Inc., receiving $10 million with the potential for further returns based on future performance.

Gray Television undertook refinancing initiatives to bolster liquidity and extend the maturity of certain debt obligations. The company reported a decrease in interest expenses of $11 million, or 2%, to $474 million, attributed to a reduction in the outstanding debt balance despite an increase in the average interest rate. The average total long-term debt balance stood at $5.7 billion in 2025, down from $6.1 billion in 2024.

Cash provided by operating activities saw a significant decrease to $289 million in 2025 from $751 million in 2024, reflecting the overall decline in net income and shifts in working capital.

Looking ahead, Gray Television anticipates capital expenditures of approximately $140 million in 2026 to support significant station construction projects and further investments at Assembly Atlanta. In 2025, gross capital expenditures related to Assembly Atlanta amounted to $34 million, with the company receiving $33 million in cash reimbursements for specific infrastructure projects.

The year 2025 was a challenging period for Gray Television, marked by a significant revenue drop and net cash from operations. However, the company’s focus on strategic acquisitions and debt refinancing reflects its commitment to enhancing liquidity and positioning for future growth. As Gray Television navigates the complexities of the broadcasting landscape, it remains poised to adapt to changing market dynamics and pursue opportunities for expansion.