Lee Enterprises, Incorporated

of 2025. It is available at lee.net as well as major financial websites. Please also refer to our earnings presentation found at investors.lee.net, which includes supplemental information. As a reminder, this morning's discussion will include forward-looking statements based on our current expectations. These statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially. Such factors are described in this morning's news release and in our SEC filings. During the call, we refer to certain non-GAAP financial measures. Reconciliations to the relevant GAAP measures are included in the tables accompanying the release. And now to open the discussion is our President and Chief Executive Officer, Kevin Mowbray.

Thanks, Jared, and good morning, everyone. This morning, I'll provide an update on our fiscal 2025 performance. We'll also hear from Nathan and Tim later in the call to discuss operations and an outlook on fiscal 2026. Our 2025 performance clearly demonstrates the strong foundation of Lee's future as a digital-first company. Fiscal 2025 finished with $562 million in total revenue, 53% which was digital, showing more reliance on our digital business. and our legacy print business. On the digital subscription front, we finished the fiscal year with $94 million in revenue from our 633,000 digitally-only subscribers. I'm incredibly proud of this industry-leading revenue growth of 16% year-over-year on a same-store basis. Considering the February cyber incident hampered our ability to generate digitally subscriptions, we are really encouraged to see where we finished the year on the revenue side. We see an opportunity in 2026 to grow units in combination with continued rate optimization. Our digital marketing services business, known as Amphi Digital Agency, surpassed the 100 million mark in FY25 with industry-leading 5% growth on a same-store basis. I'm very encouraged by OnSite's ability to consistently deliver steady top-line growth even as the broader digital advertising market remains competitive. Progress in these revenue categories gives us confidence in our ability to drive sustainable growth and deliver long-term value to our shareholders. As a reminder, our three-filler digital growth strategy is expected to result in $450 million in digital revenue by 2030. Our team continues to execute exceptionally well on our digital transformation strategy. In 2025, we delivered an excellent 16% growth in digital-only subscription revenue, further diversifying our revenue mix, expanding our digital margins, and leading the industry. At the same time, we maintained disciplined cost management across the organization, particularly in print production and corporate overhead. which allowed us to reinvest in high-growth digital initiatives. These efforts are driving steady momentum in adjusted EBITDA, which grew for the second consecutive quarter when adjusted for the extra week in the prior year. This level of performance is truly a testament to Nathan and his operations team, and the positions lead to achieved sustained success in the years ahead. In 2025, we continue to lay the foundation for Lee's future as a digital-first company. We're driving our digital transformation, and we're confident in our ability to drive sustainable growth and deliver long-term value to our shareholders. The strength of our core digital business is to build a solid foundation of over $298 million of digital revenue annually, putting us firmly on track to achieve $450 million of digital revenue by fiscal 2030. We have consistently outpaced our industry peers in several key measures of digital growth, both digital subscriptions and digital agency revenue growth. Digital subscription revenue growth grew 32% annually over the last three years, more than doubling the nearest industry peer. The substantial growth is a testament to the value of our hyperlocal content as well as our top-notch digital platforms and tools. Over the course of 2025, we've continued to modernize our digital platforms and expand our product ecosystem, leveraging data and marketing to maximize engagement. On the advertising side, Amphidigital agency revenue growth has significantly outpaced our nearest peer, growing 5% annually over the past three years. Again, we've demonstrated the ability to grow digital advertising revenue through innovative and scalable operations and services with our tremendously talented digitally-driven teams. Overall, Lee continues to advance our strategy by driving digital transformation across every part of the business, expanding reach through ongoing digital innovation, and investing in initiatives that support industry-leading growth. Our focus remains on strengthening our digital products, enhancing audience engagement, and building scalable capabilities that position the company for sustained performance and increasingly digital media landscape. Total digital revenue was $298 million in fiscal 25, well on our way to achieving our long-term target of $450 million, and we're confident in our ability to get there. Next, I'll pass it over to Nathan.

Thank you, Kevin. As Kevin mentioned earlier, we closed the year with solid digital momentum, delivering 2% digital revenue growth on a same-store basis, a clear indication that our digital transformation strategy is taking hold across the enterprise. Within advertising, we strengthened SMB retention throughout the year and nearly doubled the number of clients now valued at more than $1 million annually, demonstrating the rising impact of our innovative solutions and the deepening value we provide to local, and regional businesses. This improved customer performance, combined with accelerating adoption of our AI-powered tools, including AI Enablement, AI Boost, Smart Answer, and Smart Sites, directly fuels 5% same-store revenue growth in the Amplified Digital Agency, contributing $103 million to our $184 million in digital advertising revenue and reinforcing the durability of our commercial base and our first-to-market leading position. On the consumer side, digital-only subscription revenue increased 16% on a same-store basis, driven by the strength of our local journalism and targeted retention strategies. These gains reflect the quality and relevance of our local content, the stickiness of our consumer products, and our continued ability to grow high-margin recurring digital revenues. Altogether, we do over $298 million in total digital revenue, representing 53% of total company revenue, a key performance measure that underscores the shift toward a sustainable, higher-margin digital enterprise. Importantly, digital growth and product innovation are enabled by rigorous operational execution. Throughout the fiscal year, we continued optimizing our cost structure, including consolidating print operations and reducing costs. legacy complexity. These actions created the financial capacity to invest in cloud modernization, AI-driven product development, and the digital capabilities that fuel this year's digital growth. This slide highlights the fundamental shift underway in our business and the clear progress of our digital transformation. In 2020, before we launched the three pillar digital growth strategy, only 21% of our revenue came from digital. Today, digital represents 53% of total revenue, meaning we have already surpassed the critical revenue inflection point where digital leads the enterprise. This transition is the result of industry-leading digital revenue growth across advertising, subscription, and new digital products, supported by disciplined execution and consistent investment in our digital capabilities. We are also effectively optimizing print operations to maximize profitability and free up resources for digital growth. Looking ahead, our strategy positions us to achieve our long-term target of 90% digital revenue by fiscal year 2030, enabling a sustainable business model that is no longer reliant on print products as they mature. This trajectory demonstrates we are moving with purpose toward a stronger, more resilient, predominantly digital company. With that, I'll turn it over to Tim.