Gray Television | 10-Q: FY2026 Q1 Revenue: USD 768 M

Revenue: As of FY2026 Q1, the actual value is USD 768 M.

EPS: As of FY2026 Q1, the actual value is USD -0.34.

EBIT: As of FY2026 Q1, the actual value is USD 198 M.

Segment Revenue

• Gray Media, Inc.’s total revenue decreased by $14 million, or 2%, to $768 million for the three months ended March 31, 2026, compared to $782 million in the same period in 2025.
• Revenue for the Broadcasting segment was $739 million for the three months ended March 31, 2026, down from $755 million in the prior year period.
• The Production Companies segment’s revenue increased by $2 million, or 7%, to $29 million for the three months ended March 31, 2026, from $27 million in the same period in 2025.
• Core advertising revenue increased by $8 million, reaching $352 million in the 2026 three-month period, compared to $344 million in the 2025 period. This includes approximately $10 million in net revenue from the Super Bowl broadcast on NBC and Telemundo channels in 2026, up from $9 million on FOX channels in 2025. The 2026 Winter Olympics broadcasts generated approximately $15 million in revenue, compared to approximately $8 million in 2022.
• Political advertising revenue increased by $17 million, totaling $30 million in the 2026 three-month period, primarily due to 2026 being an “on-year” in the election cycle, compared to $13 million in the 2025 period.
• Retransmission consent revenue decreased by $40 million to $339 million in the 2026 three-month period, from $379 million in the 2025 period, attributed to decreased subscriptions, a station’s transition to independent status, and a distribution dispute, partially offset by increased rates.
• Other revenue was $18 million in the 2026 three-month period, compared to $19 million in the 2025 period.
• Direct sales channel revenue was $540 million in 2026 and $566 million in 2025, while advertising agency intermediary channel revenue was $228 million in 2026 and $216 million in 2025.

Operational Metrics

• Broadcasting expenses (before depreciation, amortization, and gain/loss on asset disposal) decreased by $22 million, or 4%, to $555 million in the 2026 three-month period, from $577 million in the 2025 period. Broadcasting Payroll expenses increased by $11 million, primarily due to routine compensation changes and higher employee healthcare benefits costs. Non-payroll broadcasting expenses decreased by $34 million, mainly due to reductions in retransmission expenses.
• Production company operating expenses (before depreciation, amortization, and gain/loss on asset disposal) increased by $8 million to $28 million in the 2026 three-month period, from $20 million in the 2025 period, mainly due to increased property taxes related to Assembly Atlanta.
• Corporate and administrative expenses increased by $7 million to $39 million in the 2026 three-month period, compared to $32 million in the 2025 period, driven by higher professional service fees related to completed and pending acquisitions.
• Consolidated operating income was $81 million for the three months ended March 31, 2026, down from $92 million in the prior year period. Broadcasting segment operating income was $125 million in 2026, compared to $122 million in 2025. Production Companies segment operating income was - $4 million in 2026, compared to $2 million in 2025. The Other segment operating loss was - $40 million in 2026, compared to - $32 million in 2025.
• Gray Media, Inc. reported a net loss of - $20 million for the three months ended March 31, 2026, compared to a net loss of - $9 million in the same period in 2025.
• Interest expense decreased by $1 million to - $117 million for the 2026 three-month period, compared to - $118 million in the 2025 period.
• The income tax benefit was - $8 million in the 2026 three-month period, compared to - $15 million in the 2025 period.
• Depreciation was $33 million in 2026 and $34 million in 2025. Amortization of intangible assets totaled $32 million in 2026 and $29 million in 2025.
• As of March 31, 2026, goodwill was $2,651 million and broadcast licenses were $5,368 million. Finite-lived intangible assets were $128 million, with expected amortization expense of approximately $49 million for the remainder of 2026, $42 million for 2027, $13 million for 2028, $3 million for 2029, $3 million for 2030, $2 million for 2031, and $16 million thereafter.

Cash Flow

• Net cash provided by operating activities was $1 million in the 2026 three-month period, a decrease of $131 million from $132 million in the 2025 period, primarily due to a decrease in net working capital and an increase in net loss, partially offset by an increase in non-cash charges.
• Net cash used in investing activities was - $77 million in the 2026 three-month period, compared to - $15 million in the 2025 period, mainly due to the WBBJ and Allen 3 acquisitions.
• Net cash used in financing activities was approximately - $33 million in the 2026 three-month period, compared to - $42 million in the 2025 period, primarily due to a reduction in net repayments of long-term debt.
• Cash reserves stood at $259 million as of March 31, 2026, compared to $368 million as of December 31, 2025.

Debt and Liquidity

• Total outstanding principal of long-term debt was $5,808 million as of March 31, 2026, and $5,810 million as of December 31, 2025. The fair value of long-term debt was $5.4 billion as of March 31, 2026, and $5.5 billion as of December 31, 2025.
• Borrowing availability under the Revolving Credit Facility remained at $745 million as of both March 31, 2026, and December 31, 2025.

Capital Expenditures and Outlook

• Routine capital expenditures are expected to be approximately $120 million for the remainder of 2026, including significant station construction projects and capital expenditures at Assembly Atlanta.
• Gray Media, Inc. estimates approximately $450 million in debt interest payments for the twelve months immediately following March 31, 2026, and anticipates making income tax payments between $90 million and $110 million for the remainder of 2026.
• Future reimbursements for public infrastructure costs at Assembly Atlanta are expected to be less than $4 million, and no contributions are expected to be made to the defined benefit pension plan for the remainder of 2026.

Strategic Acquisitions

• On January 1, 2026, Gray Media, Inc. acquired non-license assets of WBBJ-TV for $25 million, plus approximately $2 million in net working capital adjustments.
• On March 27, 2026, Gray Media, Inc. acquired assets of WTVA, WTHI, and WLFI from Allen Media Group for a total consideration of $56 million.
• Gray Media, Inc. has pending acquisitions, including a non-cash swap with Scripps, an acquisition from SGH for $2 million, and additional stations from Block Communications, Inc. (BCI) for $80 million (closed May 6, 2026) and Allen Media Group (Allen 7) for $115 million (closed May 1, 2026).