Gannett Co., Inc. Reports Mixed Results in 2025 Q3 Earnings
Gannett Co., Inc. (NYSE: GCI), a prominent player in the media sector with a significant portfolio including the USA TODAY NETWORK and Newsquest, released its third-quarter results for 2025, showcasing a complex picture of challenges and strategic pivots in a rapidly changing media landscape. The company continues to emphasize its digital-first approach, aiming to adapt to shifting consumer preferences and macroeconomic pressures while managing significant operational costs.
1. Overview of Q3 Performance
In Q3 2025, Gannett reported a net loss of $39.24 million, a notable decline compared to a loss of $19.65 million in the same quarter last year. The total revenue for the quarter was approximately $560.7 million, down from $612.4 million in Q3 2024. This performance underscores the ongoing hurdles the company faces as traditional print revenues decline and digital transformation efforts are underway.
| Oct 2024 | Oct 2025 | |
|---|---|---|
Net Income | -113.5M | 96.12M |
Net Income to Non-controlling Interest | -36K | 6K |
Profit | -113.6M | 96.13M |
Net Income Continuing | -113.6M | 96.13M |
Income Tax Expense | -1.57M | -104.7M |
Pretax Income | -115.1M | -8.64M |
Non-operating Income | -84.08M | -29.56M |
Operating Income | -31.08M | 19.53M |
Revenue | 2.55B | 2.33B |
Costs and Expenses | 2.58B | 2.31B |
Cost of Revenue | 1.58B | 1.44B |
Operating Expenses | 999.1M | 874.8M |
Depreciation, Depletion & Amortization | 155.4M | 167.8M |
Impairment Expense | 46.07M | 2.58M |
Restructuring Charge | 60.97M | 48.71M |
Selling, General & Administrative | 733.2M | 668.1M |
Other Operating Expenses | 3.33M | -12.47M |
Revenue Breakdown
Gannett's revenue composition reflects significant shifts, particularly within its three main segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions (DMS).
- Domestic Gannett Media: This segment experienced a decline in both digital and print revenues. While digital advertising revenues showed slight growth, they were offset by decreases in classified advertising and print circulation.
- Newsquest: This segment faced mixed results, with some growth in digital advertising but overall declines in print revenues, consistent with industry trends.
- Digital Marketing Solutions (DMS): The DMS segment saw a decline in revenues primarily due to a decrease in customer count, although fluctuations in average revenue per user metrics provided some counterbalance.
2. Cost Management Efforts
Gannett's operating expenses totaled $564.9 million, reflecting rising costs in several areas. However, the company has implemented cost control measures, resulting in a decrease in compensation and benefits costs driven by headcount reductions. Notably, integration and reorganization costs were significant, totaling $15.70 million, as Gannett continues to align its workforce with its strategic goals.
Interest Expense and Debt Management
Gannett's interest expenses have seen a reduction owing to a lower debt balance, which the company has actively sought to manage through various strategies, including the repurchase of its notes. As of September 30, 2025, the company reported total outstanding debt of approximately $971.8 million.
| Oct 2024 | Oct 2025 | |
|---|---|---|
Total Assets | 2.06B | 1.92B |
Total Current Assets | 432.7M | 366.0M |
Cash and Equivalents | 101.8M | 75.24M |
Net Inventories | 22.42M | 13.23M |
Accounts Receivable | 244.0M | 220.0M |
Prepaid Expenses | 43.16M | 45.15M |
Other Current Assets | 21.31M | 12.37M |
Total Non-current Assets | 1.63B | 1.55B |
Intangible Assets | 984.1M | 875.7M |
Non-current Deferred Tax Assets | 49.72M | 146.6M |
Net PP&E | 247.7M | 197.2M |
Lease Assets | 151.6M | 124.3M |
Other Non-current Assets | 197.4M | 214.3M |
Total Liabilities and Equity | 2.06B | 1.92B |
Total Liabilities | 1.82B | 1.73B |
Total Current Liabilities | 551.1M | 528.5M |
Current Debt | 60.45M | 69.31M |
Current Deferred Revenue | 108.3M | 107.7M |
Other Current Liabilities | 382.4M | 351.4M |
Total Non-current Liabilities | 1.27B | 1.20B |
Long-term Debt | 931.6M | 902.5M |
Non-current Deferred Tax Liabilities | 0 | 8.64M |
Other Non-current Liabilities | 340.6M | 291.1M |
Total Equity and Non-controlling Interests | 239.9M | 193.5M |
Total Equity | 240.4M | 194.0M |
Non-controlling Interests | -504K | -498K |
3. Macroeconomic Pressures
The broader economic environment continues to exert pressure on Gannett’s operations. Factors such as inflation, trade policy uncertainties, and interest rate fluctuations have negatively impacted advertising demand. Additionally, Gannett's reliance on third-party platforms for content visibility remains a concern, as it can affect traffic and revenue streams.
4. Legislative Changes and Their Impact
Recent tax law changes enacted on July 4, 2025, have introduced alterations to financial reporting and tax provisions that are expected to influence Gannett's future results. The reinstatement of EBITDA for tax calculations and revisions to the Global Intangible Low-Taxed Income regime may offer some relief in financial reporting.
5. Cash Flow and Liquidity
Gannett's cash flow from operating activities saw a decrease, totaling $15.16 million in Q3 2025, compared to $33.74 million in Q3 2024. The company reported a net change in cash of -$13.34 million for the quarter, reflecting the challenges in generating consistent cash flows amid declining revenues.
| Oct 2024 | Oct 2025 | |
|---|---|---|
Net Change in Cash | -8.35M | -28.86M |
Effect of Exchange Rate Changes | -1.60M | 1.44M |
Net Cash from Operating Activities | 112.4M | 80.01M |
Operating Profit | -113.6M | 96.13M |
Adjustment to Operating Profit | 226.0M | -16.11M |
Net Cash from Investing Activities | -24.15M | 6.73M |
Investments | 0 | -6.16M |
Productive Assets | 45.11M | 51.72M |
Other Investing Activities | 20.96M | 52.3M |
Net Cash from Financing Activities | -95.07M | -117.0M |
Debt | -90.04M | -103.0M |
Equity Issuance/Repurchase | -3.14M | -3.06M |
Other Financing Activities | -1.89M | -10.90M |
Future Outlook
Despite the challenges, Gannett's management remains focused on its digital transformation strategy, aimed at diversifying revenue streams and enhancing audience engagement. The company has emphasized its commitment to operational efficiency and cost reduction, including a $100 million cost reduction program announced earlier in the year.
In conclusion, while Gannett Co., Inc. faces significant hurdles in the current media landscape, its strategic initiatives and focus on digital growth may position it to better navigate the complexities ahead. As the company aligns itself with evolving consumer preferences and economic conditions, stakeholders will be keenly watching for signs of recovery and profitability in future quarters.
