Lee Enterprises reports third quarter Adjusted EBITDA growth

About this update from Lee Enterprises, Incorporated

Adjusted EBITDA (1) growth of 92% over Q2 Total Digital Revenue (2) of $78M represented 55% of total revenue Digital-Only subscription revenue increased 16% YOY (3) Amplified Digital ® Agency revenue totaled $29M, or up 10% YOY (3) DAVENPORT, Iowa, Aug. 07, 2025 (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 third quarter fiscal 2025 financial results (4) for the period ended June 29, 2025. “Our third quarter results mark significant progress in our transformation strategy,” said Kevin Mowbray, Lee's President and Chief Executive Officer. “By rigorously managing our operating expenses and continuing to grow our digital business, we are driving sustainable improvements in profitability. The increase in Adjusted EBITDA demonstrates the strength of our underlying business and our commitment to disciplined execution. Adjusted EBITDA improvement drove organic free cash flow growth. This improvement was a major milestone in our cyber recovery, as since May 2025, all mandatory principal and interest payments were funded through cash from operations.” “During the quarter, Lee achieved meaningful reductions in print-related expenses and corporate overhead, while reinvesting in high-growth digital areas. These efforts enabled Adjusted EBITDA expansion and continued progress toward the Company's long-term digital goals.” “We are pleased with our industry-leading digital subscription and digital agency revenue growth. Digital subscription revenue continues to grow rapidly, up 16% on a same-store basis (3) in the quarter, as we yield higher average digital subscription rates for our 670,000 digital only subscribers. Amplified Digital ® Agency, our full-service digital marketing agency, continues to have strong revenue growth, up an industry-leading 10% on a same-store basis (3) over the prior year,” added Mowbray. “The quarter's strong results put us on pace to achieve our second half's guidance of year-over-year growth in Total Digital Revenue and Adjusted EBITDA,” said Mowbray. Key Third Quarter Highlights: Debt and Free Cash Flow: The Company has $455 million of debt outstanding under our Credit Agreement (5) 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. As of and for the period ended June 29, 2025: 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: 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:

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