Lee Enterprises LEE Q1 2026 Earnings Transcript

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Tuesday, Feb. 10, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Nathan Becky

• Chief Financial Officer — Josh Reinholz

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Nathan Becky: Thank you, Jared. Good morning, everyone, and convey you for joining us. Lee Enterprises delivered a beardown commencement to fiscal 2026, highlighted by important first-quarter adjusted EBITDA maturation and a transformational betterment to our superior structure. Adjusted EBITDA grew 61% twelvemonth implicit twelvemonth to $12 million, driven by accordant execution crossed the halfway concern and disciplined outgo management. Last week, we completed a $50 cardinal equity concern that materially strengthens our equilibrium expanse and importantly improves our liquidity. In this morning's call, we'll supply a person look astatine the fiscal stableness that the transaction provides and the modulation pursuing the closing of the deal.

Before we dive into that, fto maine statesman by reinforcing the fundamentals of our three-pillar integer maturation strategy which has enabled Lee to rapidly alteration implicit the past 5 years into a digital-first company. Our translation into a beardown and unchangeable integer media institution is not theoretical. It's measurable, repeatable, and scalable. Digital is nary longer an emerging conception wrong a bequest concern but the superior economical motor of the company. The trajectory of Lee is progressively governed by integer maturation rates, integer markets, and integer portion economics. This displacement represents disciplined execution, expanding our assemblage done affluent section content, accelerating integer subscription growth, and gathering a integer advertizing concern that delivers results.

With astir $300 cardinal successful integer gross implicit the past 12 months, we are well-positioned to scope our $450 cardinal integer gross people by 2030. Our concern thesis is centered connected a strengthened equilibrium expanse and continued indebtedness reduction. The $50 cardinal communal banal backstage placement shores up our equilibrium expanse successful some the adjacent and agelong word and volition pb to aboriginal deleveraging. Furthermore, with the adjacent of this deal, our already favorable recognition statement volition spot a important boost. We'll interaction connected the details of this transaction and the amended recognition statement successful conscionable a moment. But for now, I'd conscionable constituent retired the transformational interaction these volition person connected our future.

By strengthening the equilibrium expanse and improving the company's superior structure, we are putting the institution successful a overmuch amended presumption to execute our strategy and present semipermanent worth to our shareholders. I'm excited to stock the details of the strategical woody that closed this past week. We raised $50 cardinal successful gross proceeds done a backstage placement of communal banal astatine $3.25 per share. The backstage placement was anchored and backstopped by David Hoffman, with further existing investors besides participating.