<div id="readability-page-1"><div>Lee Enterprises, Inc., a leading provider of local news, information, and advertising in mid-sized communities across the United States, has released its 2025 Form 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the evolving media landscape. Financial Highlights <ul><li>Total Operating Revenue: $562.3 million, reflecting an 8.0% decrease compared to 2024, primarily due to declines in print advertising and subscription revenues.</li><li>Operating (Loss) Income: $(4.7) million, compared to a gain of $4.5 million in 2024, driven by reduced revenues and restructuring costs.</li><li>Net Loss: $(35.7) million, compared to a net loss of $23.6 million in 2024, impacted by lower operating income and increased restructuring costs.</li><li>Loss Per Common Share: $(6.20), compared to a loss of $4.35 per share in 2024, reflecting the increased net loss.</li></ul> Business Highlights <ul><li>Digital-First Strategy: Lee Enterprises is focused on a digital-first approach, emphasizing the expansion of digital-only subscriptions and marketing services. The company serves 72 mid-sized communities across 25 states, with a digital platform reaching over 633,000 digital-only subscribers.</li><li>Revenue Segments: The company's primary revenue streams include subscriptions, advertising, and digital marketing services. Subscription revenue is derived from both digital and print subscriptions, while advertising revenue comes from a comprehensive suite of omni-channel marketing solutions.</li><li>Geographical Performance: The company operates in 25 states, with notable publications such as the St. Louis Post-Dispatch, Omaha World Herald, and Buffalo News. Each publication has a significant number of digital and print subscribers, contributing to the company's overall reach and engagement.</li><li>Sales Units: As of September 2025, the company reported a total of 889,802 digital and print subscribers across its publications, with significant unique visitor traffic and page views on its primary websites.</li><li>New Product Launches: The company continues to innovate with AI-powered solutions and targeted print products, enhancing its portfolio of digital products and marketing services.</li><li>Operational Challenges: The company faced challenges such as declining print revenue and circulation, changes in advertising demand, and impacts from a cyber incident that affected print advertising capacity.</li><li>Future Outlook: Lee Enterprises is committed to investing in digital growth, enhancing subscriber experiences, and expanding its digital marketing services. The company is also considering a proposed rights offering to raise capital for further investments in technology and operations.</li></ul> Strategic Initiatives <ul><li>Strategic Initiatives: The company is actively pursuing strategic initiatives to enhance liquidity and reduce costs. This includes targeted cost-reduction and cash-management initiatives such as lowering discretionary and capital spending, tightening control of print-related operating costs, and enhancing collection efforts to improve working capital. Additionally, the company is considering a proposed rights offering to raise $50 million, which, if successful, could lead to a reduction in the annual interest rate on its term loan from 9% to 5%, resulting in significant interest savings.</li><li>Capital Management: The company has focused on deleveraging and disciplined capital management to strengthen its balance sheet. It has made principal debt payments using proceeds from non-core asset sales and has prioritized debt reduction as a key component of its capital management strategy. The company has also received temporary lease and interest payment waivers to support liquidity during the cyber-recovery plan. Furthermore, the company is restricted from paying dividends on its common stock under its Credit Agreement, which also limits additional indebtedness and certain capital transactions.</li><li>Future Outlook: Looking ahead, the company plans to continue its focus on cost reduction and liquidity preservation. It expects to meet its cash requirements through operations and existing cash balances, while remaining in compliance with debt covenants. The proposed rights offering, if completed, could provide additional capital for general corporate purposes and reduce interest expenses. The company believes its liquidity will be sufficient to fund operations and meet debt service requirements for at least the next twelve months, despite potential challenges in executing strategic initiatives.</li></ul> Challenges and Risks <ul><li>Economic Conditions: Weakness in the retail sector and economic downturns can reduce advertising revenues, particularly from brick-and-mortar businesses.</li><li>Internal Controls: Deficiencies in internal controls over financial reporting could harm investor confidence and lead to regulatory sanctions.</li><li>Cybersecurity: The company experienced a significant cybersecurity incident in 2025, impacting operations and financial results. Ongoing threats require increased investment in security measures.</li><li>Competition: The rise of digital media and AI technologies presents competitive challenges, requiring significant capital investments to adapt.</li><li>Indebtedness: The company's substantial debt could limit operational flexibility and increase financial risk.</li><li>Natural Disasters: Events such as extreme weather and public health emergencies could disrupt operations and supply chains.</li><li>Stockholder Rights Plan: The adoption of a stockholder rights plan may deter potential takeovers, affecting stockholder interests.</li><li>Digital Transformation: The company is focusing on expanding its digital audience and enhancing digital products to offset declines in print revenue.</li><li>Cost Management: Initiatives to reduce costs and preserve liquidity include lowering discretionary spending and improving working capital management.</li><li>Proposed Rights Offering: A proposed rights offering aims to raise $50 million for general corporate purposes, with potential interest rate reductions contingent on its success.</li><li>Cyber Incident Recovery: Efforts are underway to recover from the 2025 cyber incident, including investments in IT infrastructure and security.</li><li>Market Risks: The company is exposed to market risks such as fluctuations in newsprint prices, which can impact operating costs. Additionally, interest rate changes could affect debt servicing costs, particularly if the proposed rights offering does not result in the anticipated interest rate reduction.</li></ul>SEC Filing: LEE ENTERPRISES, Inc [ LEE ] - 10-K - Nov. 26, 2025</div></div>

Lee Enterprises, Inc. released its 2025 Form 10-K report, highlighting an 8% revenue decrease to $562.3 million due to declining print advertising and subscriptions. The company reported a net loss of $35.7 million, driven by reduced revenues and restructuring costs. Lee is focusing on a digital-first strategy, expanding digital subscriptions, and considering a $50 million rights offering to reduce interest rates. Challenges include cybersecurity incidents, economic conditions, and competition from digital media. Strategic initiatives aim to enhance liquidity and reduce costs.

LEE ENTERPRISES, Inc SEC 10-K Report