Gray Media reported total revenue of $749 million for the third quarter of 2025, exactly matching the high end of its guidance range of $750 million. The figure represents a 21% decline from the $950 million earned in the same period last year, largely driven by a sharp drop in political advertising revenue, which fell 70% to $8 million from $27 million. Core advertising revenue and retransmission revenue both hit the high end of guidance, with retransmission revenue slightly exceeding its $345 million target thanks to higher consent fees and a more favorable station mix.
The company posted an earnings‑per‑share loss of $0.24, beating the consensus estimate of a $0.41 loss by $0.17—a 41% beat. The upside was largely the result of disciplined cost management: operating expenses were trimmed, and the company avoided large one‑time charges that had weighed on prior periods. Although operating income fell to a $5 million loss from a $12 million profit year‑over‑year, margin compression was limited, allowing the EPS beat to materialize.
Gray Media also highlighted several strategic transactions that strengthen its balance sheet. In July 2025 it completed a historic station swap with The E.W. Scripps Company, and it agreed to acquire ten stations from Allen Media Group for $171 million, with closing expected in Q4. The company raised $900 million in second‑lien notes and $775 million in first‑lien notes, extending debt maturities and reducing its total debt load to $5.64 billion as of June 30 2025. These moves improve liquidity and support future growth initiatives.
Management guidance for the next quarter projects revenue of $767 million to $782 million, a modest 2–3% increase from Q3. Full‑year 2025 revenue guidance is set at $3.07 billion to $3.09 billion, slightly below the prior $3.10 billion to $3.12 billion range, reflecting caution amid the cyclical nature of political advertising. The company reiterated confidence in maintaining profitability through continued cost discipline and strategic acquisitions.
Investors reacted cautiously, focusing on the revenue shortfall and year‑over‑year decline despite the EPS beat. Analysts noted that while the earnings surprise was solid, the muted top‑line growth and the cyclical downturn in political advertising raised concerns about sustained growth in a challenging media environment. "We are pleased to report that our total revenue, core advertising revenue, retransmission revenue, and political advertising revenue all were at or exceeded the high‑end of our previously issued guidance ranges for the quarter," said Executive Chairman and CEO Hilton H. Howell, Jr.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.