During its November 7 earnings call, Gray Media announced a Q3 2025 revenue of $749 million. Executive Chairman and CEO Hilton Howell described the current industry environment as operating in “the wild, wild west” due to unprecedented regulatory uncertainty. Despite these challenges, the company highlighted its strategic positioning and future growth plans.
The company reported exceeding its expense guidance by $17 million due to cost reductions across its television stations. Adjusted EBITDA reached $162 million for the quarter, and political advertising revenue surpassed expectations for an off-cycle year, hitting $8 million. Howell emphasized the unprecedented regulatory ambiguity affecting broadcasters, stating, “for the first time in the history of our business, we are really operating in the wild, wild west. No one knows what the rules actually are.”
Gray Media plans to enter six new markets through the acquisition of top-ranked local news stations and the creation of 11 new Big Four duopolies. Chief Legal and Development Officer Kevin Latek confirmed that the company remains “laser-focused” on previously announced transactions and is closely monitoring FCC proceedings expected to clarify regulatory restrictions by the end of the year. Latek added, "We think there are other opportunities to do transactions like the ones we’ve done here, which is, say, sub-$200 million deleveraging deals that improve our portfolio and our balance sheet."
While acknowledging “a lot of big opportunities to grow,” Howell stressed a cautious approach to expansion, emphasizing the company’s responsibility to its 10,000 employees and their families. Howell stated that Gray “does not believe that Gray actually has to do anything” to maintain its current trajectory. However, he added, “If we get an opportunity at the right price to get much bigger, we’re not going to run from it.”
Political advertising underperformed historical patterns in the first three quarters, with fourth quarter guidance set at $7 million to $8 million, considerably lower than the typical $20 million to $30 million generated before a political year. President and Co-CEO Patrick LaPlatney reported that core advertising finished down 3% in the third quarter, a slight improvement from the 4% decline in the first half. The company projects flat to low single-digit growth in the fourth quarter. LaPlatney stated, “We’re really optimistic about 2026,” citing “very encouraging” early first quarter numbers. Automotive advertising remained weak, down high single digits, while legal services continued double-digit growth, becoming a top-five category. Financial services showed high single-digit increases, and digital revenue saw healthy growth.
Gray Media is currently navigating a carriage dispute with YouTube TV affecting its ABC stations. LaPlatney voiced his dissatisfaction with the situation, stating: “Obviously, we prefer to have a voice in the MVPD negotiations for our stations. We don’t.” Regarding retransmission consent, CFO Jeff Gignac reported a 9% decrease in network affiliation expenses and a 6% decline in retransmission revenue during the third quarter. The company anticipates a slight decrease in net retransmission revenue in the fourth quarter, primarily due to WANF’s conversion to independent status in Atlanta. Gignac noted, “You’re seeing the quarters flatten out,” regarding net retransmission trends, adding, “Ideally, it can turn positive, and we’re hopeful.”
Chief Operating Officer McNamara Breland shared positive results from WANF’s August 16 conversion to independent status in Atlanta, which included the addition of 25.5 hours of news and local programming. Breland stated, “Viewers are responding. We’re seeing gains in mornings and key demos and in prime access.”
In July, the company completed refinancing transactions extending its maturity profile through 2033 and addressing all material maturities through December 2028. This had a minimal impact on overall debt costs (less than 25 basis points). Gray ended the quarter with over $900 million in liquidity and a total leverage ratio of 5.77x. The company also revised its full-year 2025 capital expenditure guidance downward by $15 million to a range of $70 million to $75 million. The board declared a quarterly dividend of $0.08 per share, consistent with recent quarters.