Lee Enterprises, Incorporated · NASDAQ:LEE
Lee Enterprises — Q2 2026 Earnings Presentation
25 slides from Lee Enterprises's earnings presentation, May 7, 2026
Slide 1: Second Quarter FY2026 Earnings
SECOND QUARTER FY2026 EARNINGS MAY 7, 2026
Slide 2: Safe Harbor
SAFE HARBOR The information provided in this presentation may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or
Slide 3: Lee Enterprises: At-a-Glance
LEE ENTERPRISES: AT-A-GLANCE Intensely local content Serving 114 local markets across the US Breaking news Lee Enterprises is a leading provider of high quality, trusted, local news and information. Our robust local and national digital media and advertising platforms are the fastest growing in the
Slide 4: Digital-First Subscription Platform
DIGITAL-FIRST SUBSCRIPTION PLATFORM Total Revenue Digital Mix of Total Revenue Adjusted EBITDA(1) $532M 56% $57M(2) LTM March 2026 Q2 FY26 LTM March 2026 Digital Subscribers Digital Subscription Revenue Digital Agency Revenue 591,000 $94M $100M March FY26 LTM March FY26 LTM March FY26 Lee is a domin
Slide 5: Adjusted EBITDA Growth
ADJUSTED EBITDA GROWTH Adjusted EBITDA(1), last four quarters Adjusted EBITDA YOY %, last four quarters $15M $15M 95% $15M $15M $13M $12M 61% $8M $8M 14% 1% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 78% Adjusted EBITDA growth YOY in 1st Half FY26 (1) Adjusted EBITDA is a non-GA
Slide 6: Second Quarter 2026 Business Highlights
SECOND QUARTER 2026 BUSINESS HIGHLIGHTS Adjusted EBITDA and Adjusted Saw positive momentum in digital Improved capital structure EBITDA margin grew over prior year revenue mix • Adjusted EBITDA(1) grew 95% to $15 million • Significant year-over-year improvement in • $53 million of cash on the Balanc
Slide 7: Strategies to Drive Digital Subscription Revenue
STRATEGIES TO DRIVE DIGITAL SUBSCRIPTION REVENUE Key Themes Addressable Market 1. High-quality Local Audience: • Shift toward high-intent users to deliver stronger engagement & monetization Anonymous Users 13 million 2. Strengthen Conversion & Retention: • Use data, analytics and product improvement
Slide 8: Strategies to Expand Digital Advertising Revenue
STRATEGIES TO EXPAND DIGITAL ADVERTISING REVENUE Key Themes 1. Recurring Revenue: • Move from transactional sales to predictable & performance-based deals 2. Integrated Solutions: • End-to-end marketing services that drive deeper client relationships 3. Data-driven Growth: • Utilize owned platforms
Slide 9: Building Sustainable Digital Revenue
BUILDING SUSTAINABLE DIGITAL REVENUE Digital Subscription Digital Agency Total Digital Revenue Revenue Revenue +25%(1) +5%(1) +4%(1) $290M $94M $100M $86M $256M $48M LTM Mar FY23 LTM Mar FY26 LTM Mar FY23 LTM Mar FY26 LTM Mar FY23 LTM Mar FY26 Scaling high-quality, recurring digital revenue streams
Slide 10: Strategy Is Transforming the Composition of Revenue
STRATEGY IS TRANSFORMING THE COMPOSITION OF REVENUE FY2020 Q2 FY2026 REVENUE MIX 21% 56% % Digital Early stages of Industry-leading digital Digital Transformation revenue growth is transforming 7% the mix of revenue From print-dependent to digital-dominant 10
Slide 11: Execution of Digital Transformation Drives Sustainability & Growth
EXECUTION OF DIGITAL TRANSFORMATION DRIVES SUSTAINABILITY & GROWTH Digital Transformation Digital Sustainability Key Takeaways ✓ Digital revenue replacing print revenue and growing at 9% CAGR(2) ✓ Digital subscription revenue and gross margin growing at a 28% CAGR(2) ✓ Amplified Digital® Agency reve
Slide 12: Strong Track Record of Sustainable Cost Management
STRONG TRACK RECORD OF SUSTAINABLE COST MANAGEMENT Total Cash Costs(1) Last Five Years Total Cash Costs(1) First Half $686M $524M Down 14%(1) $270M $233M $144M $121M $81M $68M $45M $44M FY21 FY22 FY23 FY24 FY25 1H FY25 1H FY26 Digital Costs Print Costs SG&A Total Cash Costs Digital Costs Print Costs
Slide 13: Credit Agreement Represents Strategic Asset
CREDIT AGREEMENT REPRESENTS STRATEGIC ASSET • $121 million debt reduction since refinancing in March 2020 Debt Reduction • Favorable credit agreement with Berkshire Hathaway $576M • Fixed annual interest rate reduced to 5% from 9% for five years post $455M private placement transaction in February 2
Slide 14: Reaffirming 2026 Outlook
REAFFIRMING 2026 OUTLOOK Key Metric FY26 Outlook Adjusted EBITDA(1) YOY growth in the mid-single digits 14 (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix.
Slide 15: Lee Enterprises
EE ENTERPRISES
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION The Company uses non-GAAP financial performance measures to supplement the financial information presented on a U.S. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not be considered i
Slide 17: Quarterly Revenue Composition
QUARTERLY REVENUE COMPOSITION (Millions of Dollars) Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 FY 2025 Q1 FY2026 Q2 FY2026 Digital Advertising and Marketing Services 46.7 43.9 49.1 44.1 183.8 42.8 40.7 YoY % (1) 1.7% -2.5% -1.0% -11.0% -3.3% -6.6% -4.6% Digital Only Subscription Revenue 21.6 23.8 23.5
Slide 18: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Millions of Dollars) Q2 FY26 Q2 FY25 Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users’ overall Net loss (1.7) (12.0) understanding of the operating performance of the Company. The measure isolates unusu
Slide 19: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Millions of Dollars) 1H FY26 1H FY25 Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users’ overall Net loss (6.8) (28.2) understanding of the operating performance of the Company. The measure isolates unusu
Slide 20: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Cash Costs represent a non-GAAP financial performance (Millions of Dollars) Q2 FY26 Q2 FY25 measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to Operating Expenses 114.4 143.0 investors in un
Slide 21: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Cash Costs represent a non-GAAP financial performance (Millions of Dollars) 1H FY26 1H FY25 measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to Operating Expenses 240.4 292.1 investors in un
Slide 22: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) Q2 Q2 $ % Q2 Q2 $ % (Millions of Dollars) (Millions of Dollars) FY2026 FY2025 Change Change FY2026 FY2025 Change Change Print Advertising Revenue 14.3 16.5 (2.3) -13.7% Print Other Revenue 7.0 7.2 (0.2) -2.5% Exited operations (0.6) (2.1) 1.5 NM Exited o
Slide 23: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) 1H 1H $ % 1H 1H $ % (Millions of Dollars) (Millions of Dollars) FY2026 FY2025 Change Change FY2026 FY2025 Change Change Print Advertising Revenue 31.5 36.4 (4.9) -13.5% Print Other Revenue 14.6 15.1 (0.5) -3.5% Exited operations (2.4) (4.5) 2.1 NM Exited
Slide 24: Direct Costs Reconciliation
DIRECT COSTS RECONCILIATION (Millions of Dollars) Q2 FY26 Q2 FY25 Direct Costs is a non-GAAP financial performance measure that enhances financial statement users overall Operating expenses 114.4 143.0 understanding of the operating performance of the Company. The measure isolates operating costs th
Slide 25: Direct Costs Reconciliation
DIRECT COSTS RECONCILIATION (Millions of Dollars) 1H FY26 1H FY25 Direct Costs is a non-GAAP financial performance measure that enhances financial statement users overall Operating expenses 240.4 292.1 understanding of the operating performance of the Company. The measure isolates operating costs th