Lee Enterprises Reports Strong Fourth Quarter FY25 Results Amid Digital Growth
Lee Enterprises, Incorporated (NASDAQ: LEE), a leading digital-first subscription platform focused on delivering local news and advertising services, has announced its preliminary financial results for the fourth quarter and full year of fiscal 2025, ending September 28, 2025. The press release highlights the company’s resilience and growth, particularly in its digital segments.
1. Positive Digital Performance
Kevin Mowbray, President and CEO of Lee Enterprises, expressed satisfaction with the company’s performance, stating, "We are pleased with our fourth quarter results as we continued to outperform the industry." Notably, digital subscription revenue surged by 16% on a same-store basis, marking five consecutive years of industry-leading performance. This impressive growth is attributed to the effectiveness of Lee's "Three Pillar Digital Growth Strategy" and the company's strong execution.
Key Financial Metrics for Q4 FY25
- Total Operating Revenue: $139 million
- Total Digital Revenue: $74 million, representing 53% of total operating revenue.
- Digital-Only Subscriber Revenue: $25 million, a 6% increase year-over-year, with total digital-only subscribers reaching 633,000.
- Digital Advertising and Marketing Services Revenue: Totaling $44 million, this segment accounted for 74% of total advertising revenue.
- Total Print Revenue: $65 million.
- Operating Expenses: $142 million, with Cash Costs at $126 million, a 13% and 12% decrease compared to the prior year, respectively.
- Net Loss: $6 million.
- Adjusted EBITDA: $15 million, with a notable increase of $2 million on a comparable basis.
2. Full Fiscal Year Overview
For the fiscal year ended September 28, 2025, Lee Enterprises reported:
- Total Operating Revenue: $562 million.
- Total Digital Revenue: $298 million, remaining flat compared to the prior year but reflecting a modest 2% increase on a same-store basis.
- Total Print Revenue: $264 million, a decline of 15% year-over-year, though this represents an improvement from the previous year's 21% decline.
- Net Loss for FY25: $36 million.
Mowbray emphasized that the company experienced its second consecutive quarter of Adjusted EBITDA growth, underscoring the sustainability of its transformation efforts. He anticipates that this momentum will continue into fiscal 2026.
3. 2026 Fiscal Year Outlook
Looking ahead, Lee Enterprises projects mid-single-digit year-over-year growth in Adjusted EBITDA for fiscal year 2026. The company remains optimistic about its ability to capture long-term value and lead the next chapter of its digital transformation.
4. Debt and Cash Flow Management
The company reported $455 million in outstanding debt under its Credit Agreement with BH Finance. The terms of this financing are favorable, featuring a 25-year maturity with a fixed annual interest rate of 9.0%, and no fixed principal payments required. Following a cyber incident earlier in 2025 that had a significant impact on financial metrics, Lee Enterprises has successfully managed to satisfy all principal and interest payments through organic free cash flow generation since May 2025. Cash on the balance sheet totaled $10 million, leading to a net debt figure of $445 million.
Cyber Incident and its Financial Impact
The FY25 financial results were materially impacted by a cyber incident that occurred in February 2025, affecting revenue and Adjusted EBITDA by approximately $12 million and $8 million, respectively. The company is actively working on cyber restoration and has not made any pension contributions during the fiscal year.
5. Conclusion
Lee Enterprises has demonstrated a strong commitment to digital transformation and operational efficiency amidst a challenging environment. The company’s focus on digital subscription growth, combined with disciplined cost management, has positioned it well for future success. As Lee Enterprises moves into fiscal 2026, the management remains optimistic about sustaining its growth trajectory and enhancing shareholder value.
For further insights, Lee Enterprises will hold an earnings conference call today at 9 a.m. Central Time, providing analysts and investors an opportunity to engage directly with company leadership.
