Gray Media - Earnings Call - Q3 2025

Executive Summary

• Q3 2025 revenue was $0.749B, at the high end of guidance, and expenses came in below the low end; Adjusted EBITDA was $162M, and diluted EPS was $(0.24).
• Versus consensus, revenue modestly beat ($745.0M* vs $749.0M actual), EPS beat (Primary EPS -$0.48* vs -$0.204* S&P actual; company diluted EPS -$0.24), and EBITDA beat (consensus $138.8M* vs S&P actual $157.0M*; company Adjusted EBITDA $162M).
• Q4 2025 guidance calls for total revenue of $0.767–$0.782B and broadcasting core advertising of $380–$390M; FY 2025 capex ex-Assembly Atlanta was reduced to $70–$75M from $85–$90M (maintained interest expense $460M; cash taxes $39M).
• Strategic catalysts: multi-year FOX affiliation renewal, significant debt refinancing pushing maturities out to 2032/2033, and announced station swap/acquisitions creating eleven new Big Four duopolies; Board declared $0.08 quarterly dividend.

What Went Well and What Went Wrong

What Went Well

• Exceeded guidance on retransmission ($346M vs $345M high) and political ($8M vs $7M high) while core ad revenue landed at guidance high; broadcasting expenses were materially below the range.
• Balance sheet actions extended maturities and addressed material amortization until 2028; liquidity and availability improved with revolver commitments raised to $750M.
• Management highlighted content momentum and tech upgrades: “a first-of-its-kind partnership with Google Cloud powered by Quick Play to revolutionize how our viewers find and connect with our content” with rollout starting January.

What Went Wrong

• Political revenue fell sharply vs off-cycle 2024 comps (Q3 political $8M vs $173M prior year) and Adjusted EBITDA compressed to $162M from $338M YoY.
• Net loss to common shareholders of $(23)M vs $83M in Q3 2024, driven by cyclical political decline and lower net retrans after WANF’s transition to independent.
• Network affiliation fees and retrans revenue both declined YoY (fees -9%, retrans -6% in Q3), with Q4 net retrans expected to decline slightly versus prior year due primarily to WANF becoming independent.

Transcript

Operator (participant)

Good day, everyone, and thank you for joining this Gray Media Q3 2025 earnings call. As a reminder, all phone participants have been placed in a muted or listen-only mode to prevent background noise. Today's question-and-answer session will take place after our prepared remarks, and we ask today that you limit yourself to a single question and any follow-ups you engage with management following today's call. As a reminder, today's session is also being recorded. It is now my pleasure to turn the floor over to our host, CEO and President, Mr. Hilton Howell, Jr. Please go ahead, sir.

Hilton Howell (CEO and President)

Thank you, Operator. Good morning, everyone. As the Operator mentioned, this is Hilton Howell, the Chairman and CEO of Gray Media, and I want to thank all of you for joining our third quarter 2025 earnings call. As usual, all of our executive officers are here with me in Atlanta: Pat LaPlatney, our President and Co-CEO; Sandy Breland, our Chief Operating Officer; Kevin Latek, our Chief Legal and Development Officer; and Jeff Gignac, our Chief Financial Officer. And then also we have Jim here for the last formal time to join us here, but he will not be doing anything but telling us what the right answers are. We will begin with a disclaimer that Kevin will be providing.

Kevin Latek (Chief Legal and Development Officer)

Thank you, Hilton. Good morning, everyone. Today we filed with the SEC on Form 8-K, our earnings release, and then updated investor slides. Later today, we will file with the SEC our quarterly report on Form 10-Q. These materials are all available on our website, which is www.graymedia.com. Included on the call may be a discussion of non-GAAP financial measures, and in particular, adjusted EBITDA, leverage ratio, denominator, and certain leverage ratios. These metrics are not meant to replace GAAP measurements but are provided as supplements to assist the public in its analysis and valuation of our company. Further discussions and reconciliations of the company's non-GAAP financial measures to comparable GAAP financial measures can be found on our website. All statements and comments made by management during this conference call, other than statements of historical fact, should be deemed forward-looking statements.

These forward-looking statements are subject to a number of risks and uncertainties. Actual results in the future could differ from those described in the forward-looking statements as a result of various important factors that are contained in our most recent filings with the SEC. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Now I return the call to Hilton.

Hilton Howell (CEO and President)

Thank you, Kevin. Today, we are very happy to announce that our results for the third quarter of 2025 compared favorably to our Q3 guidance for both revenues and expenses. Total revenue in the third quarter of 2025 was $749 million, at the high end of our guidance for the quarter. Total operating expenses before depreciation, amortization, impairment, and gain or loss in any disposal of assets in the third quarter were $592 million, which was $17 million below the low end of our guidance. While some of this was due to tightening the belt at the corporate headquarters, I want to take a moment to thank our TV stations who uniformly contributed to a much lower expense than we have had in previous operating quarters. So thank you, Gray. Net loss attributable to common stockholders was $23 million in the third quarter of 2025.

Adjusted EBITDA was $162 million in the third quarter of 2025. Political advertising revenue hit $8 million, which finished above our expectations for an off-cycle year. In addition to these operating results, the third quarter saw a significant acceleration of mergers and acquisition activity as we looked to identify and negotiate accretive transactions that strengthen our business and our balance sheet. All told, as we have described previously, we anticipate entering into six new markets by acquiring the local news station that was ranked number one in their respective markets in 2024. We also plan to create 11 new Big Four full duopolies. We may deal with this in questions, but we believe these duopolies are absolutely necessary for our industry and to preserve local news in respective smaller markets. We also made significant progress on strengthening our balance sheet during the third quarter of 2025.

The financing transactions completed in July were transformational and provide additional avenues for us to manage our debt and our leverage. As noted in our press release this morning, our Board of Directors has declared an $0.08 per share quarterly common dividend, which is consistent with recent quarters. As always, the Board will consider capital allocation each quarter in light of other opportunities to deploy capital for growth. Operationally, we continue to enhance our local content offerings in the third quarter of 2025. We renewed our partnership with the Suns and the Mercury, and we expanded our sports portfolio to include the Dallas Stars outer markets. Investigate TV premiered its third season in September and also launched a multi-platform project to educate viewers about artificial intelligence.

We also announced a first-of-its-kind partnership with Google Cloud powered by Quick Play to revolutionize how our viewers find and connect with our content. This new streaming structure will begin rolling out in all Gray markets in January next year. In August, we announced that we renewed our affiliation agreement covering our 27 Fox markets for two additional years. WANF, our station in Atlanta, became an independent television station on August 16 and, as we expected, is off to an exceptionally strong start, adding over 25.5 hours of news and other locally focused programming in our home market here in Atlanta. Finally, we are continuing to work with potential development partners at Assembly Atlanta who are contributing their financial resources and development expertise as we look to further monetize our investment in this remarkable asset.

We expect to have more announcements in the following quarter and next year about all of these exciting plans. We have made a lot of progress so far in 2025, and we are excited that we're capitalizing on opportunities across multiple aspects of our business to enhance value for all of our stakeholders. At this time, I'll turn our call over to Pat to address our operations.

Pat LaPlatney (President and Co-CEO)

Thanks, Hilton. Q3 continued the theme we've been describing throughout 2025, with advertisers remaining somewhat cautious due to the macro environment. Through the quarter, though, we saw core activity strengthen more than we had projected back in August, and we ultimately finished on the high side of guidance. Remember that the Olympics on NBC provided about a $20 million uplift in July and August of 2024, of which about $16 million was core ad revenue and $4 million was political. Factoring that in, our third quarter was up about 1% over 2024. From a categoric perspective in first and second quarters, and as we guided for third quarter, automotive finished down high single digits. Services as a whole were up, driven by legal, which continues to grow at double-digit percentages versus last year and is the top five category for Gray.

The financial services category is also a bright spot, up high single-digit percentages. Digital continued its healthy growth, and our new local direct business was up low single digits over the same period in 2024. Our sales teams continue to perform admirably in a challenging environment. Political ad revenue exceeded our expectations in third quarter of 2025. Our guide for the third quarter was $6 million-$7 million, and our actual results came in at $8 million. Some of this revenue was generated from issue advertisers supporting the president's legislative priorities. We also saw early spending supporting 2026 U.S. Senate candidates and generated good results in Virginia from the 2025 governor and attorney general races. Our fourth quarter 2025 guidance is for core ad revenue to be up low single digits as we have less challenging comps due to political displacement in the prior year quarter.

October finished up low double digits, which really isn't surprising given the significant demand from political advertisers in the prior year period. It's also encouraging that as of today, November and December are pacing up slightly. Across categories in the fourth quarter, we're seeing a lot of green in services like legal, financial, home improvement, and yes, in financial home improvement. Supermarkets and travel and tourism are trending better, and it's good to see automotive flattening out at a new run rate down low single digits as opposed to the higher single digits numbers we saw earlier in the year. Jeff will now address the key financial developments.

Jeff Gignac (CFO)

Thanks, Pat. As Hilton mentioned earlier, we continued to make progress on our balance sheet during the third quarter. We took advantage of strong debt market conditions in July to extend our maturity profile out to 2033. Our capital markets activities addressed all material maturities through December of 2028, with a modest impact of less than 25 basis points on our overall cost of debt. We finished the third quarter with over $900 million in liquidity and $232 million in availability on our open market repurchase authorization. Our leverage metrics at 9/30/2025 were 2.72x first lien leverage ratio, 3.66 secured leverage ratio, which includes the second lien that's new this period, and 5.77x total leverage ratio, each of those calculated as prescribed in our senior credit agreement. On our second quarter call, we discussed the expected impact of our pending M&A transactions on our leverage.

We continue to estimate that if we close those transactions today using cash on hand and/or revolver borrowings, our total leverage ratio, again, as defined in our senior credit agreement, would be approximately a quarter turn lower than where we finished the quarter. Our expense reductions continue to show up in our results, and we're proud of our team for the company-wide focus on cost containment. In third quarter of 2025, our station-level operating expenses, excluding network affiliation fees, were actually down $8 million, or 2%, compared to third quarter of 2024. That follows a decline in first quarter versus first quarter of 2024 and flat in second quarter versus second quarter of 2024. We've had a lot of questions about net retrans, so let me provide a little more context to help everyone understand the current situation.

We've discussed our multi-year effort working towards sustainability with our MVPD and network partners. In third quarter, our network affiliation expenses declined by 9%, while our retransmission consent revenue declined by 6%. Our fourth quarter guide, which now fully excludes the expected impact on both revenue and expenses related to WANF, is that our retransmission consent revenue, less network affiliation fees, will decline slightly compared to the prior year period. That decline is primarily attributable to WANF and Atlanta shifting to be independent. Our guide for full-year cash taxes for 2025 remains at $39 million, and we continue to expect that we will have no further cash tax payments this year. We've reduced our expected CapEx range for full year 2025 by $15 million to a new range of $70 million-$75 million, again, reflecting a company-wide effort on where and when to invest.

We expect a further reimbursement related to public works construction at Assembly Atlanta to be received prior to year-end, such that our net capital investment in Assembly Atlanta during 2025 will be zero. That concludes my remarks, and I'll turn the call back to Hilton.

Hilton Howell (CEO and President)

Thank you so much, Jeff. Operator, let us open it up to any questions anyone may have.

Operator (participant)

Thank you, gentlemen. To our audience joining over the phone, at this time, if you would like to ask a question, simply press the star followed by the digit one on your telephone keypad. Pressing star and one will place your line into a queue, and I will open your lines one at a time. Also, we kindly ask today that you limit yourself to a single question, and then if you have a follow-up, you are invited to contact management with a message or email following today's session. Once again, ladies and gentlemen, that is star and one if you would like to ask a question. We will hear first from the line of Dan Kurnos at The Benchmark Company.

Dan Kurnos (Equity Research Analyst)

Yeah, great. Thanks. Good morning, guys. Nice print. I guess, Jeff, thanks for the color around net retrans. Super helpful. You're finishing the year at this $202-$203. Is that kind of the right run rate we should think of as we start heading into 2026? Should we think about things kind of puts and takes there on the reverse side? Obviously, you have renewals, so I know you're not going to guide to net next year, but it just feels like it could be an accelerating net year, so just any directional color would be helpful. Thank you.

Jeff Gignac (CFO)

Yeah, Dan. Let me focus the commentary more on the net because that's really how we think about it. There are hundreds of contracts that underlie all of this. The way to really think about it is that you can see how much it has flattened out, even if you go back to 2024 versus 2023 and where the guide implies for full year 2025 versus 2024. You are seeing the quarters flatten out, and it's too early to give a guide for full year, but there is really this flattening that's occurring in front of us. Look, ideally, it can turn positive, and we're hopeful, but the big input there is some declines, and we do not know those.

Operator (participant)

Our next question will come from Aaron Watts at Deutsche Bank.

Aaron Watts (Managing Director and Media, Entertainment, Cable, and Satellite Credit Analyst)

Hi. Thanks for having me on. Core advertising was down 4% in the first half of this year, down 3% in the third quarter, and you're guiding flat to up low single digits for Q4. I know there's some noise in those numbers, but you're closing the book on a tough 2025 with improved momentum. How does that frame the discussion on core for next year when you'll have the typical political crowd out and what's expected to be a very healthy political spending cycle, but also a lot of incremental sports content and hopefully firming across key verticals as well?

Pat LaPlatney (President and Co-CEO)

Yeah. Aaron, it's Pat. I would say that we're really optimistic about 2026. We have some early Q1 numbers that are encouraging, in fact, very encouraging. Towards the end of the year, we'll obviously get political crowd out, as you saw in the comps for this year from last year. As we sit here today, we're very, very optimistic about 2026.

Operator (participant)

Our next question this morning will come from Patrick Scholl at Barrington Research.

Patrick Sholl (VP and Research Analyst)

Hi. Thanks for taking the question. Just another follow-up on the ad trends. With the rebrand of the Atlanta station, could you maybe just talk about the advertiser reception to that increase in news content and if there was any sort of, I guess, disruption in how that viewership of that as that station transitioned?

Sandy Breland (COO)

Yeah, this is Sandy. We've had really good reception to what we're doing in Atlanta. We added 25 hours of local news and sports, and viewers are responding. We're seeing gains in mornings and key demos and in prime access, and we're able to really serve the community with hyper-local content, and they're responding, and it's quality content. This is a team that won 26 Southeast Emmy Awards and a National Emmy Award this year. The quality of the content, people are finding it, they're staying with us longer, and we expect those numbers to continue to grow.

Hilton Howell (CEO and President)

Patrick, I just want to tell you, I was not there because I was previously committed, but Sandy and Pat were, plus our whole team at WANF for the first time ever, and we may be repeating this in the future. We used the stage at Assembly Atlanta, and we had a full-scale local WANF, Telemundo, Peachtree TV, CW upfront for all of the advertising community, and it was hugely well attended, and it really helped set the whole transition off to an independent station in a remarkable, remarkable way. We see this as being the WANF as being the local CNN from the days when Ted Turner owned CNN for our local market in this really growing and really exciting city of Atlanta. That upfront was unique, different, and special.

Pat LaPlatney (President and Co-CEO)

I'd add that we renewed our Hawks deal, and our Braves deal for 2026 is going to kick in in March with a 10-game spring training schedule, and the ratings last year were great for those games. There is a lot of momentum over there.

Operator (participant)

Thank you, gentlemen. To our phone audience, once again, that is star and one if you would like to ask a question. If you find your question has been asked and you would like to remove yourself from the queue, repeating the steps of star and one will also remove you. We will hear next from the line of Craig Huber at Huber Research. Please go ahead.

Craig Huber (Equity Research Analyst)

Great. Thank you. My one question has to do with Assembly Atlanta. Can you remind us, please, of what the total cost, the net cost you've done there so far? I believe it's around $600 million. Along those fronts, can you just touch on when you think you're going to get a proper ROI off that spend? I see your production company, EBITDA, was about $3 million in the quarter, but just when do you think you'll be getting fuller lease commitments, etc., where the number will go up significantly? Thank you.

Hilton Howell (CEO and President)

We are not a development company, but we are actually and have been from day one on the building portion of what we had at the old General Motors plant, which is the studios. It is doing quite well. The partnership between NBC Universal and Gray Media is probably stronger than ever. They're bringing their shows in. We have leased out things, and we actually heard last night, and we kind of think that the dam may be broken, that Hulu renewed a third season on a show that we believe is going to occupy three of our stages out there. I can't commit to you today that's going to happen, but it is. Each of those parts add to a growing EBITDA out of what's been built.

We're not making money, Craig, on raw land, but we are in negotiations with a wide variety of parties who will bring their financial assets. We will be entering into joint ventures with them to create assets that we would like to maintain an interest in, and then other assets like an apartment complex. We may just absolutely sell and liquidate. As Jeff mentioned, we have finished up sort of the last obstacles to getting about $25 million back from the cities, which we will be picking up in Q4. We're not going to go and tout what we've got coming, but it's really, really, really exciting. I think within 12 to 24 months, I think it'll be the biggest cash-flowing operation we've got in the company.

Jeff Gignac (CFO)

Craig, just to follow up on the numbers, it's around $650 million of net investment thus far. There will be, as Hilton just mentioned, some of the development ideas that are being basically diligenced at this point. Those will we can get return either of capital or on capital as those come to fruition. As Hilton mentioned, later in the year, hopefully by the time we have our next call, hopefully we'll have more to report. There's a lot of activity and a lot going on up there.

Operator (participant)

Anything else, Brad?

Hilton Howell (CEO and President)

Go right ahead, operator.

Operator (participant)

Apologies. Sir, did not mean to speak over you. We will hear next from Mr. Steven Cahall at Wells Fargo.

Steven Cahall (Senior Analyst)

Thank you. A question on M&A. I mean, you've been very active already this year between the announced deals and the swaps and related to pushing some of the debt out. I know you're in a strong position to figure the next few years out. There's always the risk that things happen, and I guess that you're not a part of in terms of mergers and acquisitions. How do you think about maybe something that's more strategic on the M&A side right now, and what do you look for that would be a particularly attractive sort of large-scale transaction if that is indeed something that could be on your radar?

Kevin Latek (Chief Legal and Development Officer)

Hey, Stephen, it's Kevin. Just to repeat what we said last time, we are laser-focused on the deals that we announced in the third quarter. The government being shut for so long has clearly delayed our efforts to work on that approval process and transition, but we remain fully committed and fully occupied by those transactions. Looking sort of down the road into the future, I think was really a question. We think there are other opportunities to do transactions like the ones we've done here, which is, say, sub-$200 million deleveraging deals that improve our portfolio and our balance sheet. Those we will look at, again, down the road as we get through these transactions. Also, closing these transactions will give us some real intel on where the new regulatory restrictions will be.

We have FCC proceedings that are ongoing, and more news will come out of that by the end of this year, which will provide all of us some additional insight into what our real opportunities are. I would say from the very beginning, this company was essentially a single TV station. It was about becoming a large company with very, very high-quality TV stations, and we've stuck with that now for decades. It's number one, strong number two TV stations. There are a lot of stations out there that we think would be good fits for Gray, and we're going to continue our focus on transactions that improve the overall portfolio that do not tax the balance sheet with high-quality assets and great employees. Again, thinking down the road, nothing's really changed in our views there.

Hilton Howell (CEO and President)

I will add to that, Stephen. With regard to smaller acquisitions and what we announced in Q3, we did a lot of transactions of markets that really helped fill in our footprint, particularly a footprint that we want to address with regard to our sports partners that we have created. You need to know that that's very much part of what we're doing. We have created, I can't remember how many, Sandy, different sports networks across the United States.

Kevin Latek (Chief Legal and Development Officer)

Yeah, 13.

Hilton Howell (CEO and President)

They literally go really from coast to coast. We like to fill those holes in, and so you can kind of look at our map and get a guess where we might be interested in going. In terms of really big transactions, obviously, there was sort of some news on TV News Check this morning, and we are well aware of that, but there is nothing that we are in deep negotiation with at the moment. We are in a period of time in our industry where things change faster than I have ever, ever seen it. For the first time in the history of our business, we are really operating in the wild, wild west. No one knows what the rules actually are. Anybody that tells you that they do is just walk—I mean, they just do not. They cannot.

Now, there's a lot of things that we think we can do, but also the one thing I don't want to get to happen to our company is to do any deal that would put the basic company in any kind of risk. We have 10,000 employees and all of their families to look after. That's sort of my first job, is looking after what they do. Now, there's a lot of big opportunities to grow. Unlike perhaps some of our competitors, I don't believe, and my management team unanimously does not believe, that Gray actually has to do anything. I mean, we're just fine where we are, and we can carry on our previously announced efforts to just reduce our debt and pay it down and then return more to our shareholders.

If we get an opportunity at the right price to get much bigger, we're not going to run from it. We're not going to run from it. There are a lot of opportunities to make a bigger company that does better by its shareholders and then, from our standpoint, does better by creating more local news within its individual community. If you go back and you look at the full 30+ year history of building this company, the reason we only bought number one and number two stations is because we know that those stations deliver something that is absolutely needed. Today, local news is threatened. We're going to do everything we can to make sure that that threatened piece of what needs to be done in our country is retained and enhanced. That will drive our M&A discussions.

Operator (participant)

Again, to our phone audience today, that is star and one, if you would like to place yourself in the queue for a question, we'll hear next from Shanna Qiu at Barclays.

Shanna Qiu (High Yield Credit Research Senior Analyst)

Thank you guys for taking my question. Sorry if I missed this, but I think historically, Q4, ahead of a political year, generated $20 million, $30 million of revenue. And I think in the fourth quarter guide, it's $7 million-$8 million. I guess just what's driving that delta if it seems like political is still going to be a reasonably strong year into 2026.

Kevin Latek (Chief Legal and Development Officer)

Sure. Hi, Sandy. This is Kevin. The first half of this year is essentially the same political revenue we had in the first half two years ago and three years ago. There is always puts and takes. There was some Georgia Senate runoff money in early 2021, for example. There are some ballot initiatives pop up that generate a lot of money. A couple of years ago, Maine had a ballot initiative that brought in more money than the Virginia governor's race for us despite our bigger presence in Virginia. There is always sort of puts and takes. The second half of this year, we did not see up until this week, we have not seen as robust spending on races that we have seen in prior off-years.

We would attribute that not to any sort of change in the dynamic of the rate of necessarily our coverage of the races, but rather the fundraising levels were really different this year. For the last kind of 10 months, there has been, at least in my world in Washington, a feeling that the Trump administration was doing more than any prior administration, and the Democrats were not, let's say, effectively addressing those issues. There was a lot of sort of seemingly some hand-wringing on the Democratic side about Trump administration's efforts. The election on Tuesday showed that not only were the polls radically wrong, but the Democrats did exceptionally well from statewide races in Georgia to California, Virginia Statehouse, across the board.

It would appear this week that the Democrats have a much better shot at races that were written off as recently as a week ago, some races that we expected to not be competitive will be competitive, and that fundraising for the Democrats is going to change in a very material way now that the electorate showed on Tuesday that the Democrats do have a really good shot in a lot of races. We have seen just not a lot of, frankly, very strong Democratic fundraising this year to support the races we went into on Tuesday. At least as of our last read on pacings last week that we used for our guidance, we have not anticipated a huge upsurge in spending in the fourth quarter of this year for races that happen next year like we have seen in the last couple of off-cycles.

We're pretty optimistic that's going to change because of the outcome on Tuesday this week. We certainly hope to see the Democratic fundraising flow through pretty quickly to supporting races that are going to happen in the primaries next year and, of course, the general next November. As we do know, as Democrats start spending heavily, the Republicans will follow. We've seen a number of races where it seems candidate quality is where we've talked about the last couple of elections. It's back in the dialogue again this week. Some races next year seem to be attracting some marquee names on both sides. I think we're set up really well for next year.

This year, we are a bit disappointed in the fundraising levels that have impacted us in the second quarter, but we also went into the year expecting political not to be as strong as it has been. We are actually pretty happy with how political has done versus our expectations at the beginning of this year. That would be our view on political at this time.

Hilton Howell (CEO and President)

Shanna, this is Hilton, and let me just add something. I stayed up late and watched the returns on Tuesday night, and it was a Democratic blowout. I left, regardless of where people come out on political, what I love is a great fight out there. I think the Democrats are going to be able to raise a ton of money. I know the Republicans are going to be able to do the same thing. My confidence in the level of political spend in the midterm this year is tremendous. I think it's going to be gargantuan. I'm really looking forward to seeing it all rolling in.

Operator (participant)

Next question today will come from the line of Avi Steiner at JPMorgan. Please go ahead. Your line is open.

Avi Steiner (Managing Directo)

Thank you. Good morning. I would love to get your thoughts on the YouTube TV carriage dispute, what might the impact be on future negotiations and maybe between affiliates and networks as well going forward. Thank you for the time.

Pat LaPlatney (President and Co-CEO)

Sure. Hey, Avi, it's Pat LaPlatney. Look, the situation with our ABC stations going off YouTube is frustrating. Obviously, we prefer to have a voice in the MVPD negotiations for our stations. We don't. Hopefully, they get it worked out soon. I can't really speculate on what's going to happen here, how it's going to impact the market going forward, but these are two very big companies that have very big footprints. Again, it's our hope that for the good of both companies and, candidly, the American consumer, they get something worked out soon. That's our thoughts.

Hilton Howell (CEO and President)

It is. It is very frustrating that we're getting penalized and have no control over the outcome of that dispute. Like the government dispute, we hope they all come to a positive conclusion soon.

Operator (participant)

Ladies and gentlemen, we thank you all for your questions and comments today. Again, if you did have a question or comment or follow-up that we did not get to today, you are invited to reach out to management following today's conference. It is now my pleasure to turn the call back to Mr. Hilton and our management team for any additional or closing remarks.

Hilton Howell (CEO and President)

Thank you, Operator. I want to thank you all for the questions. In closing, I just want to say that the first half of 2025, the third quarter was very, very busy, and we accomplished a tremendous number of objectives that will have long-term benefits to Gray Media and all of its stakeholders. We will continue to take actions to enhance the value for our advertisers, for our investors, and for the communities and families that we serve. I really want to thank everyone for joining the call today. We will talk to you next quarter.

Operator (participant)

Thank you, ladies and gentlemen, for joining today's Gray Media Q3 2025 earnings call. You may now disconnect your lines and have a good day.