LEE

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a critical milestone with digital revenue now representing 57% of total revenue, signaling a fundamental shift away from legacy print dependency. Entered a long-term management agreement with Hoffman Media Group to monetize Lee's internal operating platform and digital capabilities for third-party media brands. Delivered the fifth consecutive quarter of comparable adjusted EBITDA growth, driven by a 15% reduction in cash costs and disciplined SG&A management. Prioritized high-margin recurring digital revenue over lower-quality transactional advertising to improve the long-term durability of the revenue base. Leveraged a strategic investment to reduce interest rates from 9% to 5%, nearly halving interest expense and facilitating a return to positive net income. Strengthened community engagement through town hall events to reinforce the local journalism value proposition and identify new advertiser partnerships. Raised full-year adjusted EBITDA growth guidance to a range of 22% to 28% based on year-to-date operational strength and cost efficiencies. Projecting that digital gross margin will fully cover total company SG&A costs within the next three years, marking a total transition to a sustainable digital-first model. Anticipating approximately $18 million in annual interest savings over the next five years following the recent strategic investment that resulted in a significant interest rate reduction. Planning to utilize excess cash flows above a $64 million balance cap and proceeds from $20 million in identified non-core asset sales for mandatory debt paydown. Focusing future investments on high-ROI digital products, AI-driven automation, and personalized audience experiences to increase customer lifetime value. Recognized $560,000 in business interruption insurance proceeds during the quarter related to a prior fiscal year cyber event. Increased cash on hand to $59 million compared to $14 million in the prior year, providing a liquidity buffer for targeted digital investments. Identified $20 million in non-core assets for potential monetization, with one sale already closed subsequent to the quarter's end. Reported the first positive net income quarter since 2024, totaling $5.2 million, driven by both operational improvements and reduced interest burdens. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed $1 million in debt was paid down during the third quarter, with an additional $2 million paid subsequent to quarter-end. Total year-to-date debt reduction reached $3 million as of the call date. Future debt reduction will be fueled by two primary sources: proceeds from non-core asset sales and excess operational cash flow. The company's debt agreement includes a $64 million cash cap; any cash balances exceeding this threshold must be directed toward debt repayment.

Delivered Net Income of $5 million23% YOY Adjusted EBITDA(1) growth in Q3Digital revenue(2) represents 57% of total revenue in Q3Ended Q3 with $59 million in cashIncreased fiscal 2026 Adjusted EBITDA(1) outlook DAVENPORT, Iowa, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 114 markets, today reported preliminary third quarter fiscal 2026 financial results(3) for the period ended June 28, 2026. "Our third quarter results demonstrate the continued execution of our digital-first strategy and the meaningful progress we are making across the business," said Nathan Bekke, Lee's President and Chief Executive Officer. "We delivered another quarter of year-over-year Adjusted EBITDA growth while generating positive net income, reflecting disciplined cost management, ongoing operational improvements and the benefits of the strategic actions we've taken over the past year. Third quarter Adjusted EBITDA increased 23% year-over-year, or 19% excluding insurance reimbursements received. These results underscore the strength of our operating model and reinforce our confidence in the direction of the business." “Based on our performance through the first nine months of the fiscal year and continued confidence in our operating momentum, we are increasing our outlook for fiscal 2026 Adjusted EBITDA,” added Bekke. “We now expect to finish the year with year-over-year growth between 22% and 28%. Excluding the insurance proceeds received this year related to last year’s cyber event, that still translates to year-over-year Adjusted EBITDA growth near 10%. The updated outlook reflects continued execution of our strategy, sustained operational discipline, and confidence in continued profitability through the remainder of the fiscal year.” "Our return to positive net income reflects the progress we've made in strengthening the business and improving our financial foundation," added Josh Rinehults, Lee's Vice President, Chief Financial Officer and Treasurer. "Net income in the quarter was driven by continued Adjusted EBITDA growth and lower interest expense following February's strategic investment. Interest expense declined 45%, or $5 million, from the prior-year quarter, reflecting the reduction in our interest rate from 9% to 5%. We also ended the quarter with $59 million in cash on our balance sheet, providing additional flexibility as we continue to invest in our digital transformation while maintaining a disciplined approach to capital allocation." "Our operational focus remains centered on improving profitability while continuing to invest in the products, technology and journalism that support long-term digital growth," Bekke added. "Throughout the quarter, we continued to optimize our workflows and align resources with the evolving needs of our business. These initiatives are driving greater efficiency, supporting margin expansion and positioning Lee to operate with increased scale as our digital business continues to evolve." "During the quarter, we also announced a new management agreement with Hoffmann Media Group," Bekke continued. "This partnership highlights the value of Lee's operating platform, digital expertise and deep experience serving local markets. As we assume management responsibilities, we have the opportunity to further leverage our technology, operational capabilities and best practices while deepening a relationship that aligns with our long-term strategic objectives. We believe this agreement demonstrates the strength and scalability of our platform while creating opportunities for future growth for Lee." "We remain focused on building a more resilient, scalable business that delivers sustainable long-term value," Bekke concluded. "We are encouraged by our performance through the first nine months of the fiscal year combined with the expansion of our operating platform which reinforces our confidence in the direction of the business. We believe Lee is well positioned to continue driving long-term profitability and creating lasting value for our shareholders." For the third quarter ended June 28, 2026: Total operating revenue was $126 million. Total Digital Revenue was $72 million and represented 57% of our total operating revenue. Revenue from digital-only subscribers totaled $22 million. Digital-only subscription revenue increased 20% annually over the past three years. Digital-only subscribers totaled 584,000 at the end of the quarter. Digital advertising and marketing services revenue represented 76% of our total advertising revenue and totaled $45 million. Amplified Digital® Agency revenue totaled $27 million in the quarter. Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million. Total Print Revenue was $54 million. Operating expenses totaled $118 million and Cash Costs(1) totaled $109 million, representing 14% and 14% decreases compared to the prior year, respectively. Net income totaled $5 million, an improvement of $7 million over the prior year quarter. Adjusted EBITDA totaled $18 million, an increase of $3 million, or 23%, over the prior year quarter. 2026 Fiscal Year Outlook: Debt and Free Cash Flow: The Company has $455 million of debt outstanding under our Credit Agreement with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate, no fixed principal payments, and no financial performance covenants. The $50 million private placement of common stock closed in February 2026 made operative certain amendments to the Credit Agreement with BH Finance, resulting in the fixed annual interest rate dropping to 5% from 9% for a five-year period(4). As of and for the period ended June 28, 2026: The principal amount of debt totaled $455 million. Cash on the balance sheet totaled $59 million. Debt, net of cash on the balance sheet, totaled $395 million. Capital expenditures totaled $1 million for the quarter. We expect up to $7 million of capital expenditures in FY26. We expect cash paid for income taxes to total between $3 million and $9 million in FY26. We do not expect any pension contributions in the fiscal year. The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility. Conference Call Information: As previously announced, we will hold an earnings conference call and audio webcast today at 9 a.m. Central Time. The live webcast will be accessible at www.lee.net and will be available for replay 24 hours later. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please register at www.lee.net. Upon registering, a dial-in number and unique PIN will be provided to join the conference call. About Lee: Lee Enterprises is a leading provider of local news and information and a major subscription and advertising platform, with daily and weekly newspapers and rapidly expanding digital products serving 114 markets across 25 states. Lee's markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net. FORWARD-LOOKING STATEMENTS — The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are: Our ability to manage declining print revenue and circulation subscribers; The impact and duration of adverse conditions in certain aspects of the economy affecting our business; Changes in advertising and subscription demand; Changes in technology that impact our ability to deliver digital advertising; Potential changes in newsprint, other commodities and energy costs; Interest rates; Labor costs; Significant cyber security breaches or failure of our information technology systems; Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions; Our ability to maintain employee and customer relationships; Our ability to manage increased capital costs; Our ability to maintain our listing status on NASDAQ; Competition; We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise; The impacts of changes to our leadership and corporate governance; and Other risks detailed from time to time in our publicly filed documents. Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements. Statements regarding our plans, strategies, prospects and expectations regarding our business and industry and our responses thereto may have on our future operations, are forward-looking statements. They reflect our expectations, are not guarantees of performance and speak only as of the date the statement is made. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law. Contact:[email protected](563) 383-2100 CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) DIGITAL / PRINT REVENUE COMPOSITION(UNAUDITED) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(UNAUDITED) The tables below reconcile the non-GAAP financial performance measure of Adjusted EBITDA to Net loss, its most directly comparable U.S. GAAP measure: The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure: The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure: NOTES (1)        The following are non-GAAP (Generally Accepted Accounting Principles) financial measures for which reconciliations to relevant U.S GAAP measures are included in tables accompanying this release: Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI. Cash Costs represent a non-GAAP financial performance measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the Company’s cash-settled operating costs. Periodically, the Company provides forward-looking guidance of Cash Costs, which can be used by financial statement users to assess the Company's ability to manage and control its operating cost structure. Cash Costs are defined as compensation, newsprint and ink and other operating expenses. Depreciation and amortization, assets loss (gain) on sales, impairments and other, other non-cash operating expenses and other expenses are excluded. Cash Costs also exclude restructuring costs and other, which are typically paid in cash. (2)        Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified Digital®), digital-only subscription revenue and digital services revenue. (3)        This earnings release is a preliminary report of results for the periods included. The reader should refer to the Company's most recent reports on Form 10-Q and on Form 10-K for definitive information. (4)        The Company's current debt balance is $455 million, reflecting the outstanding balance of the $576 million term loan originally incurred under the credit agreement with BH Finance LLC dated January 29, 2020 (the "Credit Agreement"). Excess Cash Flow was previously defined under the Credit Agreement as any cash greater than $20.0 million on the balance sheet in accordance with U.S. GAAP at the end of each fiscal quarter, beginning with the quarter ending June 28, 2020. Concurrently with the execution of the Stock Purchase Agreement, we entered into the Second Amendment to the Credit Agreement. The amendments set forth therein became operative upon the Company's receipt of the proceeds from the Private Placement at the Closing. The amendments include a reduction of the applicable margin on our 25-year term loan from 9% to 5% for a period of five years following the closing and amending the definition of Excess Cash Flow such that the minimum amount of cash on hand held by us before being deemed Excess Cash Flow would be equal to $64.0 million. (5)       Comparable basis is a non-GAAP performance measure based on U.S. GAAP trends for Lee for the current period, excluding the extra week in fiscal 2024. The fourth quarter and full year of fiscal 2025 consisted of 13 weeks and 52 weeks, respectively. The fourth quarter and full year of fiscal 2024 consisted of 14 weeks and 53 weeks, respectively. (6)        FY25 revenue and Adjusted EBITDA were materially impacted by a cyber incident in February 2025. The FY25 impact on revenue and Adjusted EBITDA was approximately $12M and $8M, respectively. These metrics exclude any potential reimbursement from cyber insurance carrier in FY25. For the nine months ended June 28 2026, we received $6.4 million in business interruption reimbursements that were recorded on their own line in "Operating Expenses" and included in Adjusted EBITDA. The remaining business-interruption claims remain under review. (7)        TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI.

Management is executing a 'next chapter' vision focused on reconnecting with local communities by reinvesting in journalism to fill coverage gaps identified during market town halls. The company achieved a 95% year-over-year increase in adjusted EBITDA, driven by a 15% reduction in cash costs and the accelerating mix shift toward digital revenue. Digital revenue now represents 56% of total company revenue, marking a structural transition from a print-dependent model to a digital-dominant engine. Management is intentionally exiting lower-margin advertising products and commoditized ad dollars to prioritize profitability and customer lifetime value over pure volume. Operational efficiency was bolstered by a 14% year-to-date decline in cash costs, primarily through reduced corporate overhead and optimized print operations. Strategic partnerships, such as the collaboration with Hudl for local sports video, are being used to differentiate content and create premium, brand-safe environments for advertisers. The company expects digital revenue and margins to fully cover all SG&A costs within the next three years based on current growth trajectories. Management is actively developing a disciplined acquisition strategy to expand the company's footprint in markets that offer strategic and financial scale. Full-year adjusted EBITDA growth is reaffirmed at mid-single digits, supported by strong first-half performance and continued operational rigor. The company anticipates approximately $18 million in annual interest savings following a recent strategic investment and resulting lower interest rate. Future growth initiatives will focus on expanding high-value content offerings like 'Community Center' and 'Vidmax' to drive multi-platform advertising campaigns. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter results included $4 million in business interruption insurance proceeds related to a prior-year cyber event, which significantly impacted year-over-year comparisons. The board and top 120 executives have shifted to a 100% equity-based compensation structure to align leadership directly with long-term shareholder value. Digital-only subscriber units were negatively impacted by 'lost starts' and processing limitations stemming from the lingering effects of the previous year's cyber incident. The company has identified approximately $20 million in noncore assets for potential monetization to accelerate debt deleveraging. Management confirmed that no debt principal payments were made during the second quarter itself. A $1 million debt payment was made early in the third quarter following the sale of two noncore real estate assets, which will be reflected in future reporting. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

95% YOY Adjusted EBITDA(1) growth in Q2 Digital revenue(2) represents 56% of total revenue in Q2 Improved capital structure; $53M in cash & interest rate(3) reduced to 5% Reaffirms guidance of YOY Adjusted EBITDA growth in FY26 DAVENPORT, Iowa, May 07, 2026 (GLOBE NEWSWIRE) -- Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 114 markets, today reported preliminary second quarter fiscal 2026 financial results(4) for the period ended March 29, 2026. "Our second quarter results reflect continued momentum in the business and disciplined execution across our operations," said Nathan Bekke, Lee’s President and Chief Executive Officer. "Adjusted EBITDA increased $7 million, or 95%, over the prior year quarter, marking our fourth consecutive quarter of Adjusted EBITDA growth on a comparable basis(5). Our 2026 results continue to benefit from insurance reimbursements related to last year's cyber event, contributing $4 million to Adjusted EBITDA in the quarter. Excluding these reimbursements, our underlying operating performance still drove Adjusted EBITDA growth of 45% year-over-year, highlighting the strength of our core business. These results reinforce our confidence that we will deliver year-over-year Adjusted EBITDA growth in fiscal 2026, while highlighting the resilience, momentum and ongoing evolution of our business model." “In the quarter, we continued to take proactive steps to align our cost structure with the ongoing shift in our revenue mix,” added Bekke. “These actions include further optimization of our operating footprint, streamlining of workflows, reduction in corporate overhead and continued prioritization of investments that support digital growth. As a result, we are realizing meaningful efficiencies while maintaining our focus on delivering high-quality local journalism and content. We expect these efforts to continue supporting margin improvement and enhancing the scalability of our business over time.” "We are also beginning to realize benefits from the strategic investment completed in February," said Bekke. "The amendment to our credit agreement reduced our interest rate mid-quarter, which will drive meaningful interest expense savings going forward. We expect these savings to total approximately $18 million annually, or up to $90 million over the next five years, further strengthening our capital structure and enhancing our financial flexibility as we continue to invest in digital growth. Additionally, we finished the quarter with $53 million in cash on our balance sheet, up $49 million year-over-year. This improved liquidity, combined with lower interest expense, positions us well to accelerate our strategic priorities and further strengthen our balance sheet over time." "Net loss for the quarter totaled $2 million, an improvement of $10 million, or 86%, compared to the prior year quarter. The year-over-year improvement was driven by higher Adjusted EBITDA, lower interest expense following the strategic investment, and continued cost discipline," added Bekke. “Our progress continues to reflect the strength of our strategy and advances we are making in our digital transformation," Bekke added. "We remain focused on expanding recurring digital revenue while maintaining disciplined cost management to support margin improvement. We are highly encouraged by our performance through the first half of the fiscal year and remain confident in our strategy and our ability to deliver continued growth in the quarters ahead." For the second quarter ended March 29, 2026: Total operating revenue was $122 million. Total Digital Revenue was $68 million and represented 56% of our total operating revenue. Revenue from digital-only subscribers totaled $22 million. Digital-only subscription revenue increased 17% annually over the past three years. Digital-only subscribers totaled 591,000 at the end of the quarter. Digital advertising and marketing services revenue represented 74% of our total advertising revenue and totaled $41 million. Amplified Digital® Agency revenue totaled $23 million in the quarter. Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million. Total Print Revenue was $54 million. Operating expenses totaled $114 million and Cash Costs(1) totaled $112 million, representing 20% and 15% decreases compared to the prior year, respectively. During the quarter, operating expenses were reduced by $4 million due to business interruption insurance recoveries(6), recorded in the Insurance proceeds line item and included in Adjusted EBITDA. Operating expenses were further reduced by $1 million from insurance recoveries related to expenses incurred in response to the prior year cyber incident, recorded in Restructuring costs and other. Excluding these business interruption insurance proceeds and expense reimbursements, operating expenses decreased 17% compared to the prior year. Net loss totaled $2 million, an improvement of $10 million, or 86%, over the prior year quarter. Adjusted EBITDA totaled $15 million, an increase of $7 million, or 95%, over the prior year quarter. 2026 Fiscal Year Outlook: Debt and Free Cash Flow: The Company has $455 million of debt outstanding under our Credit Agreement with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate, no fixed principal payments, and no financial performance covenants. The $50 million private placement of common stock closed in February 2026 made operative certain amendments to the Credit Agreement with BH Finance, resulting in the fixed annual interest rate dropping to 5% from 9% for a five-year period(3). As of and for the period ended March 29, 2026: The principal amount of debt totaled $455 million. Cash on the balance sheet totaled $53 million. Debt, net of cash on the balance sheet, totaled $402 million. Capital expenditures totaled $1 million for the quarter. We expect up to $8 million of capital expenditures in FY26. We expect cash paid for income taxes to total between $2 million and $8 million in FY26. We do not expect any pension contributions in the fiscal year. The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility. Conference Call Information: As previously announced, we will hold an earnings conference call and audio webcast today at 9 a.m. Central Time. The live webcast will be accessible at www.lee.net and will be available for replay 24 hours later. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please register at www.lee.net. Upon registering, a dial-in number and unique PIN will be provided to join the conference call. About Lee: Lee Enterprises is a leading provider of local news and information and a major subscription and advertising platform, with daily and weekly newspapers and rapidly expanding digital products serving 114 markets across 25 states. Lee's markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net. FORWARD-LOOKING STATEMENTS — The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are: Our ability to manage declining print revenue and circulation subscribers; The impact and duration of adverse conditions in certain aspects of the economy affecting our business; Changes in advertising and subscription demand; Changes in technology that impact our ability to deliver digital advertising; Potential changes in newsprint, other commodities and energy costs; Interest rates; Labor costs; Significant cyber security breaches or failure of our information technology systems; Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions; Our ability to maintain employee and customer relationships; Our ability to manage increased capital costs; Our ability to maintain our listing status on NASDAQ; Competition; We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise; The impacts of changes to our leadership and corporate governance; and Other risks detailed from time to time in our publicly filed documents. Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements. Statements regarding our plans, strategies, prospects and expectations regarding our business and industry and our responses thereto may have on our future operations, are forward-looking statements. They reflect our expectations, are not guarantees of performance and speak only as of the date the statement is made. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law. Contact: [email protected] (563) 383-2100 The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure: The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure: NOTES (1) The following are non-GAAP (Generally Accepted Accounting Principles) financial measures for which reconciliations to relevant U.S GAAP measures are included in tables accompanying this release: Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI. Cash Costs represent a non-GAAP financial performance measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the Company’s cash-settled operating costs. Periodically, the Company provides forward-looking guidance of Cash Costs, which can be used by financial statement users to assess the Company's ability to manage and control its operating cost structure. Cash Costs are defined as compensation, newsprint and ink and other operating expenses. Depreciation and amortization, assets loss (gain) on sales, impairments and other, other non-cash operating expenses and other expenses are excluded. Cash Costs also exclude restructuring costs and other, which are typically paid in cash. (2) Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified Digital®), digital-only subscription revenue and digital services revenue. (3) The Company's debt is the $576 million term loan under a credit agreement with BH Finance LLC dated January 29, 2020 (the "Credit Agreement"). Excess Cash Flow was previously defined under the Credit Agreement as any cash greater than $20.0 million on the balance sheet in accordance with U.S. GAAP at the end of each fiscal quarter, beginning with the quarter ending June 28, 2020. Concurrently with the execution of the Stock Purchase Agreement, we entered into the Second Amendment to the Credit Agreement. The amendments set forth therein became operative upon the Company's receipt of the proceeds from the Private Placement at the Closing. The amendments include a reduction of the applicable margin on our 25-year term loan from 9% to 5% for a period of five years following the closing and amending the definition of Excess Cash Flow such that the minimum amount of cash on hand held by us before being deemed Excess Cash Flow would be equal to $64.0 million. (4) This earnings release is a preliminary report of results for the periods included. The reader should refer to the Company's most recent reports on Form 10-Q and on Form 10-K for definitive information. (5) Comparable basis is a non-GAAP performance measure based on U.S. GAAP trends for Lee for the current period, excluding the extra week in fiscal 2024. The fourth quarter and full year of fiscal 2025 consisted of 13 weeks and 52 weeks, respectively. The fourth quarter and full year of fiscal 2024 consisted of 14 weeks and 53 weeks, respectively. (6) FY25 revenue and Adjusted EBITDA were materially impacted by a cyber incident in February 2025. The FY25 impact on revenue and Adjusted EBITDA was approximately $12M and $8M, respectively. These metrics exclude any potential reimbursement from cyber insurance carrier in FY25. For the six months ended March 29, 2026, we received $5.8 million in business interruption reimbursements that were recorded on their own line in "Operating Expenses" and included in Adjusted EBITDA. The remaining business-interruption claims remain under review. (7) TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI.

This article first appeared on GuruFocus. Adjusted EBITDA: Increased 61% year-over-year to $12 million. Equity Investment: Completed a $50 million equity investment to strengthen the balance sheet. Digital Revenue: Nearly $300 million over the last 12 months, with a target of $450 million by 2030. Digital-Only Subscription Revenue: Grew 14% over the last 12 months. Total Digital Revenue: Over $70 million in Q1, representing 54% of total revenue. Digital Advertising Revenue: Digital sources represent 71% of total advertising revenue. Interest Rate Reduction: Reduced from 9% to 5% on $455 million in debt, generating $18 million in annual interest savings. Adjusted EBITDA Margin: Improved to 9.4% in Q1 2026 from 5.3% in the prior year. Business Interruption Insurance Proceeds: $2 million received in Q1. Debt Reduction: Paid down $121 million of principal since March 2020. Noncore Assets: Identified $26 million to monetize for future debt reduction. Warning! GuruFocus has detected 7 Warning Signs with LEE. Is LEE fairly valued? Test your thesis with our free DCF calculator. Release Date: February 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lee Enterprises Inc (NASDAQ:LEE) reported a significant 61% year-over-year growth in adjusted EBITDA, reaching $12 million, driven by disciplined cost management and core business execution. The company completed a $50 million equity investment, strengthening its balance sheet and improving liquidity. Digital revenue now constitutes 54% of total revenue, showcasing a successful shift towards a digital-first business model. The interest rate on outstanding debt was reduced from 9% to 5%, expected to save approximately $18 million annually, enhancing cash flow and financial flexibility. A new strategic partnership with Hudl aims to enhance local sports media coverage, aligning with LEE's mission to serve communities with high-quality journalism. Despite the positive financial results, the company is still navigating dynamic changes in the digital media landscape, which could pose future challenges. The reliance on digital transformation means that any setbacks in digital growth could significantly impact overall performance. The company is still managing declining legacy revenue streams, which requires careful balancing to ensure sustainable growth. The transition to a digital-first model involves significant investments, which may strain resources if not managed effectively. LEE's future success is heavily dependent on continued digital subscription growth and advertising revenue, which are subject to market fluctuations and competition. Q: Can you elaborate on the impact of the recent $50 million equity investment on Lee Enterprises' financial stability and future strategy? A: Nathan Bekke, Chief Operating Officer, explained that the $50 million equity investment significantly strengthens Lee Enterprises' balance sheet and liquidity. This investment, anchored by David Hoffmann, reduces the interest rate on outstanding debt from 9% to 5%, generating approximately $18 million in annual interest savings. The proceeds will be used for working capital and digital transformation projects, enhancing digital platforms and improving operational efficiency. Q: How has Lee Enterprises' digital transformation strategy impacted its revenue and growth? A: Josh Rinehults, Interim CFO, highlighted that digital revenue now represents 54% of total revenue, with digital-only subscription revenue growing by 5%. The company has seen a 61% increase in adjusted EBITDA, driven by digital growth and cost management. The digital transformation strategy has positioned Lee Enterprises to achieve 90% digital revenue by fiscal 2030. Q: What are the key components of Lee Enterprises' Three Pillar Digital Growth Strategy? A: Nathan Bekke outlined the strategy as focusing on expanding audience through local content, accelerating digital subscription growth, and building a digital advertising business. The strategy has enabled Lee to transform into a digital-first company, with nearly $300 million in digital revenue over the last 12 months and a target of $450 million by 2030. Q: What measures has Lee Enterprises taken to manage costs and improve profitability? A: Josh Rinehults stated that the company has maintained disciplined cost management, particularly in legacy costs and corporate overhead. Total cash costs declined by $17 million over the prior year, driven by reduced headcount and legacy print costs. This has resulted in a substantial improvement in adjusted EBITDA margin, from 5.3% to 9.4%. Q: Can you provide details on the new strategic partnership with Hudl? A: Nathan Bekke announced a partnership with Hudl, a leader in sports technology and video analysis. This collaboration aims to enhance local sports coverage by adding video content and providing free access to local sports stories. The partnership aligns with Lee's mission to serve communities with high-quality journalism and strengthens its position in local sports media. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management characterizes the company as having reached a tipping point where digital is now the primary economic engine, representing 54% of total revenue. Adjusted EBITDA growth of 61% in Q1 was primarily attributed to disciplined cost management, specifically the reduction of legacy print costs and headcount. The company's three-pillar digital growth strategy is focused on expanding local content to drive digital-only subscription revenue, which grew 14% over the last twelve months. A $50 million private placement of common stock was executed to shore up the balance sheet and provide working capital for digital transformation projects. Management views their local journalism as a competitive moat that commands a strong audience and attracts advertisers despite a dynamic digital media landscape. The transition to a digital-first model is intended to decouple the company's sustainability from declining legacy print products by fiscal 2030. Management reaffirmed fiscal 2026 guidance for adjusted EBITDA growth in the mid-single digits, supported by strong Q1 performance. The company expects to achieve a digital revenue target of $450 million by 2030, aiming for a 90% digital revenue mix by that time. An amended credit agreement will reduce the interest rate from 9% to 5% for the next five years, projected to save approximately $18 million annually. Future growth initiatives include a strategic partnership with Huddl to integrate high school sports video content into digital platforms to deepen community engagement. Management plans to monetize $26 million in identified non-core assets to further contribute to debt reduction. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The company successfully terminated its fully funded defined benefit pension plan, removing future cost uncertainty and volatility from the balance sheet. Q1 results included $2 million in business interruption insurance proceeds related to a prior cyber incident, with more proceeds expected later in the year. The $50 million equity investment was anchored by David Hoffman, who has been appointed as the new Chairman of the Board of Directors. Management highlighted that digital subscription revenue growth has outpaced peers, growing more than double the rate of the nearest competitor over three years. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Q1 Adjusted EBITDA(1) growth of $5M or 61% YOY $50M equity investment(2) enhances financial stability Interest rate on outstanding debt reduced to 5% from 9%(3) DAVENPORT, Iowa, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 72 markets, today reported preliminary first quarter fiscal 2026 financial results(4) for the period ended December 28, 2025. “Our core business delivered operating results in the first quarter that exceeded our expectations,” said Nathan Bekke, Lee’s President and Interim Chief Executive Officer. “Adjusted EBITDA growth of $5 million puts us in a great position to achieve our expectations for year-over-year growth in fiscal 2026. This marks our third consecutive quarter of Adjusted EBITDA growth on a comparable basis(5), led by continued industry-leading performance in digital subscription revenue coupled with disciplined cost management. These results validate our focus on building durable, recurring revenue streams while continuing to actively manage the cost structure tied to legacy revenue. Additionally, our 2026 results are expected to include reimbursement from our insurance carrier for business interruption related to the cyber event last year(6) – $2 million of which was received in the first quarter and included in Adjusted EBITDA. Excluding the insurance reimbursement, Adjusted EBITDA was up $3 million or 35% year-over-year, representing exceptionally strong operating growth.” “We are also pleased to announce the Company closed on a transformational $50 million private placement of common stock last week led by David Hoffmann,” added Bekke. “This transaction strengthens the Company’s balance sheet which will further fuel our digital transformation and drive long term shareholder value.” “A key component of the transaction is an amendment to the Company’s credit agreement that reduces the annual interest rate on the Company’s outstanding debt to 5% from 9% for a five-year period. This rate reduction is expected to result in interest savings of approximately $18 million annually or up to $90 million over the five-year period, further improving the Company’s capital structure and strengthening the balance sheet,” added Bekke. “The consistent strength of our core business reflects the effectiveness of our Three Pillar Digital Growth Strategy and the progress of our digital transformation,” added Bekke. “That strength along with the $50 million capital infusion and up to $90 million of interest savings sets Lee up for an exciting future as we drive sustainable growth and create long-term value for our shareholders.” For the first quarter ended December 28, 2025: Total operating revenue was $130 million. Total Digital Revenue(7) was $70 million and represented 54% of our total operating revenue. Revenue from digital-only subscribers totaled $23 million, up 5% over the prior year. Digital-only subscription revenue increased 23% annually over the past three years. Digital-only subscribers totaled 609,000 at the end of the quarter. Digital advertising and marketing services revenue represented 71% of our total advertising revenue and totaled $43 million. Amplified Digital® Agency revenue totaled $24 million in the quarter. Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million. Total Print Revenue was $60 million. Operating expenses totaled $126 million and Cash Costs(1) totaled $121 million, a 16% and 13% decrease compared to the prior year, respectively. Operating expenses in the quarter included $2 million of cyber insurance reimbursement(6). Net loss totaled $5 million and Adjusted EBITDA totaled $12 million. Adjusted EBITDA increased by $5 million over the prior year in the first quarter of fiscal 2026. 2026 Fiscal Year Outlook: Debt and Free Cash Flow: The Company has $455 million of debt outstanding under our Credit Agreement with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate of 9.0%, no fixed principal payments, and no financial performance covenants. The $50 million private placement of common stock closed in February 2026, which made operative certain amendments to the Credit Agreement with BH Finance, resulting in the fixed annual interest dropping to 5% from 9% for a five-year period(3). As of and for the period ended December 28, 2025: The principal amount of debt totaled $455 million. Cash on the balance sheet totaled $13 million. Debt, net of cash on the balance sheet, totaled $443 million. Capital expenditures totaled $1 million for the quarter. We expect up to $5 million of capital expenditures in FY26. We expect cash paid for income taxes to total between $2 million and $8 million in FY26. We do not expect any pension contributions in the fiscal year. The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility. Conference Call Information: As previously announced, we will hold an earnings conference call and audio webcast today at 9 a.m. Central Time. The live webcast will be accessible at www.lee.net and will be available for replay 24 hours later. Analysts have been invited to ask questions on the call. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call. About Lee: Lee Enterprises is a major subscription and advertising platform and a leading provider of local news and information, with daily newspapers, rapidly growing digital products and nearly 350 weekly and specialty publications serving 72 markets in 25 states. Lee's markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net. FORWARD-LOOKING STATEMENTS — The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are: Our ability to manage declining print revenue and circulation subscribers; The impact and duration of adverse conditions in certain aspects of the economy affecting our business; Changes in advertising and subscription demand; Changes in technology that impact our ability to deliver digital advertising; Potential changes in newsprint, other commodities and energy costs; Interest rates; Labor costs; Significant cyber security breaches or failure of our information technology systems; Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions; Our ability to maintain employee and customer relationships; Our ability to manage increased capital costs; Our ability to maintain our listing status on NASDAQ; Competition; We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise; The impacts of changes to our leadership and corporate governance; and Other risks detailed from time to time in our publicly filed documents. Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements. Statements regarding our plans, strategies, prospects and expectations regarding our business and industry and our responses thereto may have on our future operations, are forward-looking statements. They reflect our expectations, are not guarantees of performance and speak only as of the date the statement is made. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law. Contact: [email protected] (563) 383-2100 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) DIGITAL / PRINT REVENUE COMPOSITION (UNAUDITED) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) The tables below reconcile the non-GAAP financial performance measure of Adjusted EBITDA to Net loss, its most directly comparable U.S. GAAP measure: The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure: The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure: NOTES

Image source: The Motley Fool. Tuesday, Feb. 10, 2026 at 10 a.m. ET President and Chief Executive Officer — Nathan Becky Chief Financial Officer — Josh Reinholz Need a quote from a Motley Fool analyst? Email [email protected] Nathan Becky: Thank you, Jared. Good morning, everyone, and thank you for joining us. Lee Enterprises delivered a strong start to fiscal 2026, highlighted by significant first-quarter adjusted EBITDA growth and a transformational improvement to our capital structure. Adjusted EBITDA grew 61% year over year to $12 million, driven by consistent execution across the core business and disciplined cost management. Last week, we completed a $50 million equity investment that materially strengthens our balance sheet and significantly improves our liquidity. In this morning's call, we'll provide a closer look at the financial stability that the transaction provides and the transition following the closing of the deal. Before we dive into that, let me begin by reinforcing the fundamentals of our three-pillar digital growth strategy which has enabled Lee to rapidly transform over the last five years into a digital-first company. Our transformation into a strong and stable digital media company is not theoretical. It's measurable, repeatable, and scalable. Digital is no longer an emerging segment inside a legacy business but the primary economic engine of the company. The trajectory of Lee is increasingly governed by digital growth rates, digital markets, and digital unit economics. This shift represents disciplined execution, expanding our audience through rich local content, accelerating digital subscription growth, and building a digital advertising business that delivers results. With nearly $300 million in digital revenue over the last twelve months, we are well-positioned to reach our $450 million digital revenue target by 2030. Our investment thesis is centered on a strengthened balance sheet and continued debt reduction. The $50 million common stock private placement shores up our balance sheet in both the near and long term and will lead to future deleveraging. Furthermore, with the close of this deal, our already favorable credit agreement will see a significant boost. We'll touch on the details of this transaction and the amended credit agreement in just a moment. But for now, I'd just point out the transformational impact these will have on our future. By strengthening the balance sheet and improving the company's capital structure, we are putting the company in a much better position to execute our strategy and deliver long-term value to our shareholders. I'm excited to share the details of the strategic deal that closed this past week. We raised $50 million in gross proceeds through a private placement of common stock at $3.25 per share. The private placement was anchored and backstopped by David Hoffman, with additional existing investors also participating. This transaction followed a comprehensive review of the company's performance and capital structure, consideration of alternatives, and approval by both the Board and shareholders who recognize that by strengthening the balance sheet and reducing the interest rate under our credit agreement, the company would be in a better position to execute and create long-term shareholder value. As part of the closing of the transaction, we welcome Mr. Hoffman as Chairman of the Board of Directors. Concurrently, with this private placement, the credit agreement has been amended to reduce the interest rate on our outstanding debt to 5% from 9% for the next five years. On $455 million in debt, the interest rate is expected to generate approximately $18 million in annual interest savings or up to $90 million over the five-year period. That significant cash flow improvement over the five-year horizon will allow us the flexibility to invest in our core business and drive digital growth. The proceeds from the deal will be used primarily for working capital and to fund current and future digital transformation projects. This transaction accelerates our ability to strengthen our digital platforms, enhance the consumer's experience, and deliver measurable performance for our local advertising clients. In the near term, it improves operating efficiency while positioning us with a more flexible, scalable digital infrastructure designed to support sustainable long-term growth. Fiscal 2026 presents a tremendous opportunity for growth driven by the strength of our digital businesses and operational discipline. Particularly as we've already delivered strong first-quarter results. At a macro level, we are a leading provider of high-quality local news information, and advertising in 72 markets across the US. Our local journalism is what sets us apart. As a digital-first subscription platform, we provide breaking news and local content that commands a strong audience, and attracts advertisers within the local communities we serve. Over the last twelve months, sustained growth of 14% in our digital-only subscription revenue has further diversified our revenue mix and boosted our reliance on growing revenue streams. At the same time, we've maintained disciplined cost management across the organization, particularly in legacy costs and corporate overhead. These efforts are driving steady momentum in adjusted EBITDA which was $50 million over the last twelve months. Now I'll hand the call over to Josh to run through our first-quarter results. Thanks, Nathan. Josh Reinholz: Our strong first quarter was marked by meaningful year-over-year improvement in adjusted EBITDA driven by continued progress in our digital transformation and disciplined cost. Q1 adjusted EBITDA increased by a significant 61% or $5 million over the prior year reflecting improved operating efficiency and higher expense control. These results demonstrate the company's ability to expand profitability even as we navigate dynamic changes in the digital media landscape. On the digital subscription front, we finished the quarter with $23 million in revenue, from our 609,000 digital-only subscribers. 5% growth in digital-only subscription revenue was fueled by increased efforts to maximize engagement within our subscriber base as well as to optimize price within our highly engaged subscriber cohorts. Targeted investments in personalization content delivery, and life cycle marketing are increasing subscriber lifetime value and improving overall monetization. Q1 finished with over $70 million in total digital revenue. Which represented over 54% of our total rep. This progress builds on the continued evolution of our revenue with digital revenue mix improving 330 basis points year over year digital-only subscription revenue growing 5%, and digital sources representing 71% of total advertising revenue. Underscoring the transformational effect of our digital growth strategy. The strength of our first-quarter performance clearly demonstrates a strong foundation for Lee's future as a digital-first company. Lastly, and most significantly, Q1 saw substantial growth in adjusted EBITDA. Up $5 million or 61% over the prior year. Our first-quarter growth in adjusted EBITDA was driven by strong cost control. Particularly tied to our legacy revenue streams. With total cash costs declining $17 million over the prior year. The operational efficiency demonstrated this quarter was primarily driven by reduced headcount, and legacy print costs. This quarter represents our third consecutive quarter of adjusted EBITDA growth on a comparable basis. The year-over-year improvement in adjusted EBITDA margin was also quite substantial. With the 2026 representing 9.4% compared to 5.3% in the prior year. Another brief note on the quarter. Our results included $2 million in business interruption insurance proceeds tied to the cyber incident last year. Excluding these proceeds, Q1 adjusted EBITDA showed very strong 35% growth. We expect to receive further insurance proceeds as the fiscal year progresses. Overall, our first-quarter results highlight the strength of our digital strategy and our continued path towards transforming local media. Compared to our broader peer group, we have consistently outperformed across several key indicators of digital growth. Including digital subscription revenue, and digital agency rep. Over the past three years, digital subscription revenue has grown significantly. More than double that of our nearest competitor. Reflecting the consistent strength of our local journalism, effective subscription strategies for managing both volume and rate, and continual improvement in digital platforms. Over the past year, we have continued to modernize our technology and expand our product ecosystem using data-driven marketing, and audience insights to deepen engagement and enhance monetization. Post-transaction, we expect to further bolster our digital products and technology. Ultimately, our goal is improving the user's experience by delivering journalism that is credible, and timely as well as intuitive, accessible, and engaging across devices. Our roadmap will ensure our platforms evolve alongside audience expectations also supporting sustainable business outcomes. On the advertising side, revenue from our amplified digital agency has also outpaced peers. Growing at a 5% annual rate over the last three years. This performance underscores our ability to generate sustainable, digital advertising growth through scalable solutions, innovative services, and highly skilled digitally focused teams. Looking ahead, our trajectory toward 90% digital revenue by fiscal 2030 positions us to operate a sustainable business model that is no longer dependent on print products. As Nathan mentioned earlier, our focus remains on strengthening our digital products enhancing audience engagement, and building scalable capabilities that position the company for sustained performance in a digital media landscape. Just six years ago, our revenue was primarily print. Making up nearly 80% of our operating. As of 2026, 54% of our revenue is now digital. This transformational shift demonstrates that we're less reliant on legacy print than ever before. As we move forward, we will continue to build on this digital revenue growth momentum while also managing our declining legacy revenue streams all driving us towards a day when we are sustainable solely from our digital platforms. Our core digital business has grown 12% annually from fiscal 2021 to fiscal 2025. And that is translated to comparable annual growth in digital gross margin. Replacing our print revenue with growing and profitable digital revenue, sets us up to achieve long-term sustainability. By fiscal 2030, we will be sustainable from just our digital revenue and margin. Which is something we're more confident in now than ever as post-transaction, we begin to realize the impact of the transformational Vistas project we have underway and that are forthcoming. From a cost perspective, we have a consistent track record of disciplined cost management. While making strategic investments that support long-term growth. We remain steadfast in our commitment to long-term financial sustainability and the continued delivery of high-quality local journals. In fiscal 2026, reducing legacy costs and complexity throughout our business remains a top priority for us. By enhancing operational rigor this year, without compromising quality, we strengthened our long-term position and are poised to drive sustainable shareholder value over the long term. Lastly, before I pass it back to Nathan, I just like to reiterate how impactful the amended credit agreement is to our long-term financial. Since refinancing in March 2020, we have paid down $121 million of principal. With a strengthened balance sheet and a reduced interest rate, our path to debt reduction is stronger than ever. On $455 million in debt, the interest rate reduction of 5% is expected to generate approximately million dollars in annual interest savings or up to approximately $90 million over the five years. This savings is a boost that will generate long-term debt reduction and shareholder value creation. Another recent improvement to our balance sheet is the strategic termination of the company's fully funded defined benefit pension plan. Since the plan's assets were sufficient to cover all obligations, the company is free from any future cost uncertainty. Lastly, we have identified $26 million in non-core that we are actively working to monetize. These asset sales will contribute toward future debt reduction. I'll now pass the call over to Nathan for final remarks. Thanks, Josh. Nathan Becky: Looking ahead to the full year, we're reaffirming our outlook for fiscal 2026 of adjusted EBITDA growth in the mid-single digits. The strength of our first quarter positions us well to achieve our 2026 outlook. Josh Reinholz: The transaction and interest reduction give us increased confidence in not only fiscal 2026, but also the next five years. Nathan Becky: In other news, Josh Reinholz: recently announced a new strategic partnership with Huddl. A leader in sports technology video analysis, and data. Huddl works with thousands of high schools and local sports teams across the nation, providing video, data, and tools to support athletes, coaches, and communities. This partnership represents one of the largest collaborations in local sports media and aligns with our mission to serve our communities with high school sports coverage at the core. It also reinforces our commitment to journalism and storytelling that bring communities together. This partnership with Huddl will allow us to serve our communities even better by adding video content with free access and continue to tell the amazing local sports stories that reflect the pride, passion, and connection people feel for their schools and teams. Nathan Becky: What leaves deep roots in local communities Josh Reinholz: we create meaningful value for both our readers and advertisers positioning our digital platforms as the place to go for local sports consumption and advertising. While in the early stages, we're extremely excited to partner with the Huddl team and we'll share more as the relationship develops. Operator: With that, Josh Reinholz: open the call for questions. Nathan Becky: Lee? Operator: Thank you. At this time, we will be conducting a question and answer session. As a reminder, if you are accessing this call by webcast, you may submit typed questions on your screen. Those questions will be answered during the call as time permits. Nathan Becky: Questions. Josh Reinholz: We have no questions from our live participants. I'll now turn the call back to Nathan for closing remarks. Great. Thank you. I'll reiterate that we are a leader in local content and are well underway on a significant digital transformation. We have become a digital-first organization growing our digital revenue mix to 54% as of this past quarter. More than doubling over the past five years. With the $50 million private placement transaction supporting both deleveraging and continued digital investment, and up to $90 million in interest savings over the next five years we've meaningfully strengthened our balance sheet and increased our financial flexibility. With a clear strategy, strong foundation, and a compelling future, we are set up now more than ever for our next stage of evolution as a digital media company. I want to thank our employees for their dedication, and our shareholders for their continued support. Operator: Thank you. We have reached the end of our question and answer session. This concludes our call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Lee Enterprises LEE Q1 2026 Earnings Transcript was originally published by The Motley Fool