A Big Drop at Gray

Gray Television announced a significant 21% year-over-year decline in total revenue for the third quarter of 2025, reporting $749 million, down sharply from $950 million in the same period last year. The decline, while landing at the high end of the company’s issued guidance of $750 million, underscores the media giant's vulnerability to the cyclical nature of political spending, a factor that pushed the company into a net loss for the quarter.

The primary driver of the overall revenue plunge was the massive drop-off in Political Advertising Revenue, which plummeted by 88% to just $8 million, compared to the previous year's quarter. The company stated this was "reflective of the off-year of the two-year political advertising cycle," as the 2024 results benefited from high-volume political activity. This cyclical shift was the main reason for a Net Loss attributable to common stockholders of $23 million in Q3 2025, a dramatic reversal from the Net Income of $83 million reported in the prior year's period.

Core advertising and retransmission consent segments also faced headwinds. Core advertising revenue came in at $355 million, a 5% decline from Q3 2024. The company noted that the prior year's figure included $16 million of core advertising revenue associated with the broadcast of the Summer Olympics, suggesting a relatively strong quarter-over-quarter performance despite the overall decrease. Similarly, retransmission consent revenue was $346 million, down 2% from the prior year. Gray attributed the decline in retransmission consent revenue (less network affiliation fees) primarily to the transition of WANF Atlanta to an independent station.

Despite the revenue setbacks, Gray Television demonstrated effective cost control. Broadcast operating expenses of $542 million were reported as significantly below the guidance range, which management credited to "the ongoing realization of the company’s 2024 cost actions and continued focus on cost containment." Network affiliation fees of $214 million were in line with previously issued guidance.

The results highlight how dependent broadcast groups are on political spending in even-numbered years, leaving a substantial financial hole in off-cycle reporting periods.