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Lee Enterprises (LEE) investor relations material
Lee Enterprises Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q1 Adjusted EBITDA increased 61% year-over-year to $12.3 million, driven by digital transformation and disciplined cost management.
Digital revenue now comprises 54% of total revenue, up from 21% in FY2020, with digital-only subscription revenue growing 5.3% to $22.7 million.
Completed a $50 million equity investment at $3.25 per share, materially strengthening the balance sheet and supporting digital transformation.
Amended credit agreement reduced interest rate on $455 million in debt from 9% to 5% for five years, generating $18 million in annual interest savings.
Net loss improved to $5.1 million from $16.2 million year-over-year, reflecting cost reductions and insurance reimbursements.
Financial highlights
Q1 FY26 total revenue was $130.1 million, with digital revenue at $70.3 million (54% of total), and digital-only subscription revenue at $22.7 million, up 5.3% year-over-year.
Adjusted EBITDA margin improved to 9.4% from 5.3% in the prior year.
Cash costs declined $17 million or 13% year-over-year, driven by reduced headcount and legacy print costs.
Digital advertising and marketing services revenue was $42.8 million, representing 71% of total advertising revenue.
Print subscription revenue declined 19.3% year-over-year to $35 million.
Outlook and guidance
Fiscal 2026 Adjusted EBITDA is expected to grow in the mid-single digits year-over-year.
Confident in achieving 2030 target of $450 million digital revenue and 90% digital revenue mix.
Digital gross margin is projected to surpass SG&A costs in FY27, nearing digital sustainability.
Management expects continued improvement in operating results and liquidity, supported by cost controls and the recent capital raise.
Capital expenditures for FY26 projected up to $5 million; no pension contributions anticipated.
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