Gray Media, Inc. - 10-Q Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, and the six-month period ended on the same date. Gray Media, Inc. is a multimedia company and the nation's largest owner of top-rated local television stations, serving 117 full-power markets. The company operates two primary segments: Broadcasting and Production Companies.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $1,607 |
| Operating Income | $217 |
| Net Income (Loss) | $(6) |
| Net Loss Attributable to Common Stockholders | $(12) |
| Diluted EPS (Common) | $(0.12) |
| Operating Cash Flow | $124 |
| Long-Term Debt (Net of current portion) | $5,808 |
| Cash and Cash Equivalents | $176 |
| Revolving Credit Facility Availability | $745 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $53 million (3%) compared to the six months ended June 30, 2025. This was driven by a $91 million increase in political advertising revenue due to the 2026 election cycle and $44 million in revenue from 2026 acquisitions.
- Acquisitions and Divestitures: The company completed significant transactions in the first half of 2026, including the acquisition of stations from Allen Media Group, Block Communications, and others, totaling approximately $272 million in consideration. A non-cash loss of $22 million was recognized on a station swap with The E. W. Scripps Company.
- Profitability: Operating income improved to $217 million from $174 million in the prior year period, despite a $20 million loss on disposal of assets. Net loss attributable to common stockholders narrowed significantly to $(12) million from $(91) million in the prior year, aided by a $20 million deemed contribution from the repurchase of preferred stock.
- Cash Flow: Net cash provided by operating activities decreased to $124 million from $163 million, primarily due to changes in working capital. Net cash used in investing activities surged to $(290) million from $(14) million due to acquisition spending.
Guidance, Outlook, and Risks
- Capital Allocation: The Board authorized up to $250 million for debt repurchases through December 31, 2027. The company repurchased $50 million of Series A Perpetual Preferred Stock in June 2026.
- Subsequent Events: In July 2026, the company completed the first closing of the American Spirit Media acquisition ($40 million paid) and repurchased $120 million of senior notes (2029 and 2031 issues).
- Pension Plan: The Board approved the termination of the company's defined benefit pension plan, effective October 1, 2026, with settlement expected in 2028.
- Liquidity: Management anticipates sufficient liquidity from cash on hand, operating cash flows, and the revolving credit facility to fund debt service and capital expenditures for the next 12 months.
- Risks: Key risks include the cyclical nature of political advertising, retransmission consent disputes (a satellite dispute was resolved in May 2026), and the ability to secure regulatory approvals for pending acquisitions.
Investor Verification Checklist
- Verify the finalization of purchase price allocations for the Block Communications and Station Swap transactions, which remain preliminary.
- Monitor the regulatory approval status for the second closing of the American Spirit Media acquisition and the WHPM acquisition.
- Assess the impact of the terminated pension plan on future cash flows and potential settlement charges.
- Review the company's leverage ratios (Consolidated Total Net Leverage Ratio was 5.73x as of June 30, 2026) against debt covenants.
- Track the execution of the new $250 million debt repurchase authorization and its effect on the capital structure.