Gray Television Inc. Reports Robust Third Quarter Results

For the quarter ending September 30, 2025, Gray Television recorded total revenue of $749 million, matching the high end of its previous guidance. Core advertising revenue reached $355 million, also at the high end of expectations, which is particularly notable given that the third quarter of 2024 had included $16 million from the Summer Olympics. Retransmission consent revenue was reported at $346 million, exceeding guidance by $1 million. Political advertising revenue came in at $8 million, surpassing expectations by $1 million despite being an off-year in the political advertising cycle.

Operating expenses before depreciation and amortization were significantly lower than anticipated at $542 million, reflecting the company's ongoing cost containment efforts. However, the company experienced a net loss of $23 million for the quarter, a stark contrast to the net income of $83 million reported in the same period last year, primarily due to the cyclical decline in political advertising.

Gray Television's Adjusted EBITDA for the third quarter was $162 million, representing a substantial decrease from the previous year, which recorded $338 million. This decline was attributed to reduced political advertising and the impact of ongoing operational adjustments.

The third quarter was marked by significant strategic maneuvers, including a historic station swap and plans for three additional acquisitions of leading television stations. Notably, Gray Television renewed its affiliation agreements with the FOX network for several years.

During this period, Gray executed two separate debt market transactions that enhanced its liquidity and extended debt maturities, thereby providing greater financial flexibility. Specifically, the company amended its Senior Credit Agreement, increasing the availability under its Revolving Credit Facility to $750 million.

Gray Television issued $900 million in Senior Secured Second Lien Notes due 2032 and $775 million in Senior Secured First Lien Notes due 2033. The proceeds were utilized to redeem all outstanding senior notes due 2027, repay significant portions of term loans, and cover transaction expenses. As of September 30, 2025, the company's leverage ratios reflected solid management of its debt, with a First Lien Leverage Ratio of 2.72 to 1.00.

Gray Television is actively pursuing acquisitions and divestitures aimed at expanding its market reach and enhancing its portfolio. The company has entered agreements with The E.W. Scripps Company, Sagamore Hill Broadcasting, Block Communications, and Allen Media Group. These transactions are expected to create 11 new full-power duopolies of stations affiliated with major networks, thereby fortifying Gray's local news and content offerings in six new markets.

For the upcoming quarter ending December 31, 2025, Gray Television anticipates a decline in retransmission consent revenue compared to the previous year, predominantly due to the transition of WANF in Atlanta to an independent station. The company projects core advertising revenues to range between $380 million to $390 million and expects total revenue for the full year to fall between $3.070 billion to $3.085 billion.

Gray Television's third quarter performance illustrates its resilience and adaptability in a challenging market environment. With strategic acquisitions and proactive financial management, the company is well-positioned for continued growth as it navigates the evolving landscape of the broadcasting industry. The upcoming conference call on November 7, 2025, will provide further insights into the company's operational strategies and future outlook.