Lee Enterprises reported a fourth‑quarter 2025 net loss of $6.4 million, a sharp increase from the $6.1 million loss in the same period a year earlier. Total revenue for the quarter was $139.1 million, down 4.3% from $145.5 million in Q4 2024, reflecting continued pressure on legacy print advertising and subscription revenue.
Digital subscription revenue grew 16% year‑over‑year to $74 million, the strongest growth in the company’s history and the third consecutive year of industry‑leading performance. Total digital revenue, however, fell 3% to $74 million on a same‑store basis, while print advertising revenue declined 12% to $30 million. The decline in print revenue offset the digital gains, leaving overall revenue below analyst expectations of $154.6 million.
The loss was driven largely by one‑time charges. Cybersecurity restoration costs of $4 million and restructuring expenses of $1.2 million were recorded, adding $5.2 million to the operating loss. A February 2025 cyber incident had already cost the company $12 million in revenue and $8 million in adjusted EBITDA, further eroding profitability for the year.
Management reiterated its full‑year guidance, projecting a net loss of $36 million for FY 2025, a significant revision from the earlier guidance of $4.5 million to $5.0 million. The company cited continued digital transformation investments, a strategic pension plan termination, and a $50 million rights offering as key factors influencing the updated outlook.
CEO Kevin Mowbray emphasized that digital subscription growth remains a priority, stating, “Digital represents 53% of total revenue, and we are on track to reach $450 million in digital revenue by 2030.” He also highlighted new AI partnerships and the focus on cost discipline as drivers of the company’s long‑term strategy.
The market reaction was mixed. While some investors praised the company’s digital momentum and adjusted EBITDA growth, others expressed concern over the widened net loss and the discrepancy between the earlier guidance and the actual full‑year loss. The company’s debt position remains a key risk, with net debt of $445 million and ongoing efforts to deleverage through organic cash flow and capital structure adjustments.
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