The massive political advertising beat ($83M vs $9M YoY) and Q3 guidance pointing to $165-$185M political are the main bullish levers for near-term momentum, but the GAAP EPS miss and core advertising decline (-1% YoY) are headwinds. Monitor net retransmission revenue trajectory and the pace of balance sheet deleveraging; debt repurchase authorization is a positive credit signal but does not offset operating revenue trends.
Price Chart
Executive Summary
Gray Media reported Q2 2026 total revenue of $839M (+9% YoY) driven by a surge in political advertising ($83M vs $9M YoY). However, GAAP EPS was -$0.34, a significant miss versus consensus of $0.25, reflecting a net loss attributable to common stockholders of $21M after preferred dividends and a deemed contribution on preferred stock repurchase. Core advertising declined 1% YoY, and total debt net of cash increased to $5.69B, though net leverage improved slightly.
Key Financial Metrics
Key Facts
- Total revenue $839M vs $772M YoY (+9%), beating guidance high end of $830M
- GAAP EPS -$0.34 vs consensus $0.25 — a 236% miss
- Political advertising $83M, well above guidance of $70M and $9M YoY
- Core advertising declined 1% YoY to $357M
- Net retransmission revenue rose 10% YoY to $150M
- Adjusted EBITDA $214M vs $169M YoY (+27%)
- Total net debt (principal less cash) $5.69B, up from $5.44B at year-end 2025
- Consolidated Total Net Leverage Ratio 5.73x vs 5.75x at Dec 2025
- Q3 guidance: total revenue $935-$965M vs $749M in Q3 2025, political $165-$185M
- Board authorized up to $250M for debt repurchases through Dec 2027
Financial Impact
Revenue beat guidance but GAAP EPS miss of $0.59 vs consensus (-236%) is the headline. The positive political ad surge is balanced by core advertising weakness and high leverage.
Risk Factors
- Core advertising continuing to decline amid a non-political quarter
- High leverage (5.73x Total Net Leverage) limits financial flexibility
- Subscriber declines pressuring retransmission consent revenue
- Guidance may be overly optimistic if political spending does not materialize as forecast
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3340983 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $4.55 | awaiting T+5 | — | $4.37 (−3.85%) |
Oct 20, 2026 6d ago | Press Release | $4.63 | awaiting T+5 | — | $4.37 (−5.62%) |
Oct 15, 2026 11d ago | Press Release | $4.46 $4.70 | ▲ +5.38% | ▲ +6.40% | $4.37 (−2.02%) |
Oct 9, 2026 17d ago | 8-K | $4.43 $4.48 | ▲ +1.13% | ▲ +2.62% | $4.37 (−1.35%) |
Oct 9, 2026 17d ago | 8-K | $4.54 $4.38 | ▼ −3.52% | ▼ −1.56% | $4.37 (−3.74%) |
Oct 2, 2026 24d ago | Press Release | $4.54 $4.54 | · 0.00% | ▼ −1.16% | $4.37 (−3.74%) |
Sep 28, 2026 28d ago | 8-K | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 28, 2026 28d ago | Press Release | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 28, 2026 28d ago | Press Release | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 23, 2026 4w ago | Press Release | $4.58 $4.50 | ▼ −1.75% | ▼ −1.07% | $4.37 (−4.59%) |
US Market Status
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