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Lee Enterprises Reports Fourth Quarter and Full Year FY25 results

Q4 Adjusted EBITDA(1) growth of $2M YOY on a comparable basis(2)
Balance sheet derisking continues with pension plan termination
Total Digital Revenue(3) was 53% of revenue in the quarter, representing $74M
Digital-Only subscription revenue increased 16% YOY(4) in the quarter

DAVENPORT, Iowa, Nov. 26, 2025 (GLOBE NEWSWIRE) — Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 72 markets, today reported preliminary fourth quarter fiscal 2025 financial results(5) for the period ended September 28, 2025.

“We are pleased with our fourth quarter results as we continued to outperform the industry,” said Kevin Mowbray, Lee’s President and Chief Executive Officer. “Digital subscription revenue increased 16% on a same-store basis(4), marking five consecutive years of industry-leading performance. This consistent strength reflects the effectiveness of our Three Pillar Digital Growth Strategy and the exceptional execution of our team.”

“Lee also delivered its second consecutive quarter of Adjusted EBITDA growth(2), underscoring the sustainability of our transformation. Solid top-line performance combined with disciplined cost actions drove our profitability gains. Two consecutive quarters of Adjusted EBITDA growth, coupled with our continued leadership in digital subscriptions and Amplified Digital® Agency’s strong track record, demonstrate the strong momentum we’re building across the company. We expect the momentum to continue, delivering strong Adjusted EBITDA growth in fiscal 2026.”

“This progress strengthens our position as a growing, sustainable, and digitally focused organization—one that is well positioned to capture long-term value and lead the next chapter of our digital transformation,” Mowbray added.


For the fourth quarter ended September 28, 2025:

  • Total operating revenue was $139 million.
  • Total Digital Revenue was $74 million and represented 53% of our total operating revenue.
  • Revenue from digital-only subscribers totaled $25 million, up 6% over the prior year, or up 16% on a same-store basis(4). Digital-only subscription revenue increased 32% annually over the past three years. Digital-only subscribers totaled 633,000 at the end of the quarter.
  • Digital advertising and marketing services revenue represented 74% of our total advertising revenue and totaled $44 million. Amplified Digital® Agency revenue totaled more than $100 million in the fiscal year, growing 5% for the year(4).
  • Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million.
  • Total Print Revenue was $65 million.
  • Operating expenses totaled $142 million and Cash Costs(1) totaled $126 million, a 13% and 12% decrease compared to the prior year, respectively.
  • Net loss totaled $6 million and Adjusted EBITDA totaled $15 million. Adjusted EBITDA decreased by $2 million in the fourth quarter of fiscal 2025, or increased by $2 million on a comparable basis(2).


For the fiscal year ended September 28, 2025:

  • Total operating revenue was $562 million.
  • Total Digital Revenue was $298 million, flat to the prior year, or an increase of 2% on a same-store basis(4).
  • Total Print Revenue was $264 million, down 15% to the prior year, or down 13% to the prior year on a same-store basis(4), representing an improvement of 9 percentage points over the prior year’s decline of 21%.
  • Operating expenses totaled $571 million and Cash Costs totaled $524 million, a 7% and 5% decrease compared to the prior year, respectively. Operating expenses in FY25 included $4 million of cyber restoration expenses, which are included in the line Restructuring costs and other.
  • Net loss totaled $36 million.


2026 Fiscal Year Outlook:

Adjusted EBITDA YOY growth in the mid-single digits
   


Debt and Free Cash Flow:

The Company has $455 million of debt outstanding under our Credit Agreement(6) with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate of 9.0%, no fixed principal payments, and no financial performance covenants.

As of and for the period ended September 28, 2025:

  • The principal amount of debt totaled $455 million.
  • As a result of the cyber event and in an effort to provide short-term liquidity, the Company’s sole lender, BH Finance, waived payment of the Company’s March 2025, April 2025 and May 2025 interest and basic rent payments. Waived interest and basic rent payments were added to the principal amount due under the Credit Agreement.
  • Since May 2025, the Company has satisfied all principal and interest payments through organic free cash flow generation.
  • Cash on the balance sheet totaled $10 million. Debt, net of cash on the balance sheet, totaled $445 million.
  • Capital expenditures totaled $1 million for the quarter and $4 million for the year. We expect up to $10 million of capital expenditures in FY26.
  • For fiscal year 2025, cash paid for income taxes totaled $3 million. We expect cash paid for income taxes to total between $1 million and $6 million in FY26.
  • We made no pension contributions in the fiscal year.
  • The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility.


Conference Call Information:

As previously announced, we will hold an earnings conference call and audio webcast today at 9 a.m. Central Time. The live webcast will be accessible at www.lee.net and will be available for replay 24 hours later. Analysts have been invited to ask questions on the call. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.


About Lee:

Lee Enterprises is a major subscription and advertising platform and a leading provider of local news and information, with daily newspapers, rapidly growing digital products and nearly 350 weekly and specialty publications serving 72 markets in 25 states. Lee’s markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net.

FORWARD-LOOKING STATEMENTS — The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are:

  • We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise;
  • Our ability to manage declining print revenue and circulation subscribers;
  • The impact and duration of adverse conditions in certain aspects of the economy affecting our business;
  • Changes in advertising and subscription demand;
  • Changes in technology that impact our ability to deliver digital advertising;
  • Potential changes in newsprint, other commodities and energy costs;
  • Interest rates;
  • Labor costs;
  • Significant cyber security breaches or failure of our information technology systems;
  • Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions;
  • Our ability to maintain employee and customer relationships;
  • Our ability to manage increased capital costs;
  • Our ability to maintain our listing status on NASDAQ;
  • Competition; and
  • Other risks detailed from time to time in our publicly filed documents.

Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements.  Statements regarding our plans, strategies, prospects and expectations regarding our business and industry and our responses thereto may have on our future operations, are forward-looking statements. They reflect our expectations, are not guarantees of performance and speak only as of the date the statement is made.  Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report.  We do not undertake to publicly update or revise our forward-looking statements, except as required by law.

Contact:
[email protected]
(563) 383-2100

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

  Three months ended Twelve months ended
(Thousands of Dollars, Except Per Share Data) September 28,
2025		   September 29,
2024		   September 28,
2025		   September 29,
2024		  
         
Operating revenue:        
Print Advertising revenue 15,301   19,370   69,168   81,488  
Digital Advertising revenue and marketing services revenue 44,057   52,466   183,823   194,213  
Advertising and marketing services revenue 59,358   71,836   252,991   275,701  
Print Subscription revenue 41,585   49,141   164,172   197,584  
Digital Subscription revenue 25,406   23,902   94,242   84,331  
Subscription revenue 66,990   73,043   258,414   281,915  
Print Other revenue 7,924   8,418   30,861   33,257  
Digital Other revenue 4,833   5,276   20,075   20,507  
Other revenue 12,757   13,694   50,936   53,764  
Total operating revenue 139,105   158,573   562,341   611,380  
Operating expenses:        
Compensation 51,667   58,824   216,017   234,581  
Newsprint and ink 2,965   3,712   12,961   16,813  
Other operating expenses 71,255   80,704   294,642   301,950  
Depreciation and amortization 3,625   6,178   18,843   27,616  
Assets loss (gain) on sales, impairments and other, net 5,321   6,466   2,956   11,193  
Restructuring costs and other 7,045   7,054   25,850   19,253  
Operating expenses 141,879   162,938   571,269   611,406  
Equity in earnings of associated companies 1,315   703   4,278   4,572  
Operating income (1,459 ) (3,662 ) (4,650 ) 4,546  
Non-operating (expense) income:        
Interest expense (10,140 ) (10,805 ) (40,505 ) (41,232 )
Pension withdrawal cost —   —   —   —  
 Pension and OPEB related benefit (cost) and other, net 145   814   2,506   1,910  
 Curtailment/Settlement gain —   —   —   3,593  
Non-operating expenses, net (9,995 ) (9,991 ) (37,999 ) (35,729 )
Income (loss) before income taxes (11,454 ) (13,653 ) (42,649 ) (31,183 )
Income tax (benefit) expense (5,622 ) (4,172 ) (6,903 ) (7,610 )
Net (loss) income (5,832 ) (9,481 ) (35,746 ) (23,573 )
Net income attributable to non-controlling interests (583 ) (609 ) (1,847 ) (2,272 )
Loss attributable to Lee Enterprises, Incorporated (6,414 ) (10,090 ) (37,593 ) (25,845 )
         
Loss per common share:        
Basic (1.06 ) (1.69 ) (6.20 ) (4.35 )
Diluted (1.06 ) (1.69 ) (6.20 ) (4.35 )
                 



DIGITAL / PRINT REVENUE COMPOSITION
(UNAUDITED)

  Three months ended Twelve months ended
(Thousands of Dollars) September 28,
2025		   September 29,
2024		   September 28,
2025		   September 29,
2024		  
                 
Digital Advertising and Marketing Services Revenue 44,057   52,466   183,823   194,213  
Digital Only Subscription Revenue 25,406   23,902   94,242   84,331  
Digital Services Revenue 4,833   5,276   20,075   20,507  
Total Digital Revenue 74,296   81,644   298,140   299,051  
Print Advertising Revenue 15,301   19,370   69,168   81,488  
Print Subscription Revenue 41,585   49,141   164,172   197,584  
Other Print Revenue 7,924   8,418   30,861   33,257  
Total Print Revenue 64,809   76,929   264,201   312,329  
Total Operating Revenue 139,105   158,573   562,341   611,380  
                 



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

The tables below reconcile the non-GAAP financial performance measure of Adjusted EBITDA to Net loss, its most directly comparable U.S. GAAP measure:

  Three months ended Twelve months ended
(Thousands of Dollars) September 28,
2025		   September 29,
2024		   September 28,
2025		   September 29,
2024		  
         
Net loss (5,832 ) (9,481 ) (35,746 ) (23,573 )
Adjusted to exclude        
Income tax benefit (5,622 ) (4,172 ) (6,903 ) (7,610 )
Non-operating expenses, net 9,995   9,991   37,999   35,729  
Equity in earnings of TNI and MNI(6) (1,315 ) (703 ) (4,278 ) (4,572 )
Assets loss on sales, impairments and other, net 5,321   6,466   2,956   11,193  
Depreciation and amortization 3,625   6,178   18,843   27,616  
Restructuring costs and other 7,045   7,054   25,850   19,253  
Stock compensation 429   553   1,757   1,751  
Add:        
Ownership share of TNI and MNI EBITDA (50%) 1,413   874   4,901   5,519  
Adjusted EBITDA(8) 15,060   16,760   45,379   65,306  
Adjusted EBITDA associated with the 53rd week —   3,553   —   3,553  
Comparable Adjusted EBITDA 15,060   13,207   45,379   61,753  
                 


The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure:

  Three months ended Twelve months ended
(Thousands of Dollars) September 28,
2025		   September 29,
2024		   September 28,
2025		   September 29,
2024		  
                 
Operating expenses 141,879   162,938   571,269   611,406  
Adjustments                
Depreciation and amortization 3,625   6,178   18,843   27,616  
Assets loss (gain) on sales, impairments and other, net 5,321   6,466   2,956   11,193  
Restructuring costs and other 7,045   7,054   25,850   19,253  
Cash Costs 125,888   143,240   523,620   553,344  
                 


The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure:

  Three months ended Twelve months ended
(Thousands of Dollars) September 28,
2025		   September 29,
2024		   September 28,
2025		   September 29,
2024		  
         
Print Advertising Revenue 15,301   19,370   69,168   81,488  
Exited operations and the extra week in the prior year (79 ) (2,173 ) (715 ) (4,696 )
Same-store, Print Advertising Revenue 15,222   17,197   68,453   76,792  
Digital Advertising Revenue 44,057   52,466   183,823   194,213  
Exited operations and the extra week in the prior year —   (2,987 ) (13 ) (4,130 )
Same-store, Digital Advertising Revenue 44,057   49,479   183,810   190,083  
Total Advertising Revenue 59,358   71,836   252,991   275,701  
Exited operations and the extra week in the prior year (79 ) (5,160 ) (728 ) (8,826 )
Same-store, Total Advertising Revenue 59,279   66,676   252,263   266,875  
Print Subscription Revenue 41,585   49,141   164,172   197,584  
Exited operations and the extra week in the prior year (3 ) (3,742 ) (60 ) (4,793 )
Same-store, Print Subscription Revenue 41,582   45,399   164,112   192,791  
Digital Subscription Revenue 25,406   23,902   94,242   84,331  
Exited operations and the extra week in the prior year —   (2,067 ) (2 ) (3,301 )
Same-store, Digital Subscription Revenue 25,406   21,835   94,240   81,030  
Total Subscription Revenue 66,990   73,043   258,414   281,915  
Exited operations and the extra week in the prior year (2 ) (5,809 ) (62 ) (8,094 )
Same-store, Total Subscription Revenue 66,988   67,234   258,352   273,821  
Print Other Revenue 7,924   8,418   30,861   33,257  
Exited operations and the extra week in the prior year (16 ) (503 ) (15 ) (538 )
Same-store, Print Other Revenue 7,908   7,915   30,846   32,719  
Digital Other Revenue 4,833   5,276   20,075   20,507  
Exited operations and the extra week in the prior year —   (109 ) —   (109 )
Same-store, Digital Other Revenue 4,833   5,167   20,075   20,398  
Total Other Revenue 12,757   13,694   50,936   53,764  
Exited operations and the extra week in the prior year (16 ) (612 ) (15 ) (647 )
Same-store, Total Other Revenue 12,741   13,082   50,921   53,117  
Total Operating Revenue 139,105   158,573   562,341   611,380  
Exited operations and the extra week in the prior year (97 ) (11,581 ) (805 ) (17,568 )
Same-store, Total Operating Revenue 139,008   146,992   561,536   593,812  
                 

NOTES

(1) The following are non-GAAP (Generally Accepted Accounting Principles) financial measures for which reconciliations to relevant U.S GAAP measures are included in tables accompanying this release:

  • Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.
  • Cash Costs represent a non-GAAP financial performance measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the Company’s cash-settled operating costs. Periodically, the Company provides forward-looking guidance of Cash Costs, which can be used by financial statement users to assess the Company’s ability to manage and control its operating cost structure. Cash Costs are defined as compensation, newsprint and ink and other operating expenses. Depreciation and amortization, assets loss (gain) on sales, impairments and other, other non-cash operating expenses and other expenses are excluded. Cash Costs also exclude restructuring costs and other, which are typically paid in cash.
(2) Comparable basis is a non-GAAP performance measure based on U.S. GAAP trends for Lee for the current period, excluding the extra week in the prior year. The fourth quarter and full year of fiscal 2025 consisted of 13 weeks and 52 weeks, respectively. The fourth quarter and full year of fiscal 2024 consisted of 14 weeks and 53 weeks, respectively.
(3) Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified Digital®), digital-only subscription revenue and digital services revenue.
(4) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations and the extra week in the prior year. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets.
(5) This earnings release is a preliminary report of results for the periods included. The reader should refer to the Company’s most recent reports on Form 10-Q and on Form 10-K for definitive information.
(6) The Company’s debt is the $576 million term loan under a credit agreement with BH Finance LLC dated January 29, 2020 (the “Credit Agreement”). Excess Cash Flow is defined under the Credit Agreement as any cash greater than $20,000,000 on the balance sheet in accordance with U.S. GAAP at the end of each fiscal quarter, beginning with the quarter ending June 28, 2020.
(7) TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI.
(8) FY25 revenue and Adjusted EBITDA were materially impacted by a cyber incident in February 2025. The FY25 impact on revenue and Adjusted EBITDA was approximately $12M and $8M, respectively. These metrics exclude any potential reimbursement from cyber insurance carrier in FY25.