Gray Media, Inc.

What they do

Gray Media operates local television stations and digital assets, generating revenue primarily from broadcast and digital advertising and retransmission consent fees. It owns the largest Telemundo affiliate group (47 markets) and Gray Digital Media, a full-service digital agency. It also owns video production companies and studio facilities, including Raycom Sports, Tupelo Media Group, PowerNation Studios, Assembly Atlanta, and Third Rail Studios.

Revenue drivers

• Core Advertising Revenue — Sale of advertising time on broadcast and digital platforms; core advertising revenue declined 1% year-over-year in Q2 2026 (excluding acquisitions), reflecting seasonal and cyclical demand.
• Political Advertising Revenue — Q2 2026 political advertising was $83M, exceeding the high end of guidance ($73M) and trending ahead of 2024 and 2022 year-to-date levels.
• Retransmission Consent Fees — Net retransmission revenue (retransmission consent less network affiliation fees) returned to year-over-year growth in Q2 2026, reaching $150M, even excluding acquisitions, despite a blackout that ended May 1, 2026.

Recent performance

For Q2 2026 (quarter ended June 30, 2026), reported total revenue was $839M, above the high end of guidance ($830M). Total revenue grew from $768M in Q1 2026 and $749M in Q3 2025, but full-year 2025 revenue was $3.10B, down from $3.64B in 2024. Net income swung from $375M in 2024 to a loss of $85M in 2025; operating cash flow fell from $751M to $289M. As of June 30, 2026, total assets were $10.44B, total liabilities $7.71B, and long-term debt $5.81B.

Strategy

Management is focused on M&A to expand market reach, adding stations in 22 markets net of dispositions, including seven markets from Allen Media. They are investing in local programming, such as adding approximately 70 televised Atlanta Hawks regular season games on WANF and Peachtree Sports Network. The company is also prioritizing balance sheet deleveraging through creative transactions to lower cost of capital and enhance cash flow. They aim to extend market leadership as the largest owner of top-rated local television stations.

Risks

• Advertising revenue dependence — Revenue relies heavily on advertising, which is seasonal and cyclical, sensitive to economic conditions, demographics, and competition from digital and streaming platforms.
• Network affiliation expirations — Big Four network affiliation agreements expire from mid-2027 through December 31, 2028, and renegotiations could affect programming costs or revenues.
• Retransmission blackouts — A blackout ended May 1, 2026; future disputes with MVPDs could disrupt retransmission consent revenue and subscriber reach.
• High leverage — Long-term debt is $5.81B against $2.13B equity, increasing vulnerability to interest rate changes and limiting financial flexibility.

Outlook

Management did not provide explicit forward guidance in the excerpts, but they cite progress on M&A, political advertising trending ahead of both 2024 and 2022 year-to-date levels, and core advertising improving. Net retransmission revenue is expected to remain a growth driver, and they continue to prioritize deleveraging.