Profit of Gannett soars in Q2 due to tax advantages, leading to an increase in share price.
Gannett Co., Inc. (GCI) has reported a significant increase in quarterly earnings for Q2 2025, despite a decline in revenues compared to the same period last year. The company reported total revenues of $584.9 million, a 8.6% decline compared to Q2 2024. However, net income surged by 471.5% to $78.4 million from $13.7 million a year earlier, and earnings per share (EPS) rose significantly, reflecting strong earnings growth.
The earnings increase was due to a benefit for income taxes, which was $87.47 million, compared to $26.80 million a year ago. On an adjusted basis, earnings were $84.5 million.
Same store revenues were down 6.4 percent, and for the full year, Gannett expects total revenue to be down in the low-mid single digits on a same store basis. Despite the revenue decline, Gannett's adjusted EBITDA margin improved, and free cash flow increased by 73% to $17.6 million, indicating better cash generation and operational efficiency.
In a statement, Michael Reed, chairman and CEO of GCI, announced plans for targeted annualized expense reductions of approximately $100 million. Reed stated these reductions are expected to create a lower and more variable cost structure, positioning GCI to increase margins.
Looking ahead, Gannett expects to deliver Total Adjusted EBITDA growth in the back half of the year and for the full year of 2026. For the second half, Gannett's revenue is projected to be down in the low single digits on a same store basis. However, the company plans to repay $23.4 million of debt in the second quarter, and expects to exceed initial projection of repaying over $135 million of debt by end of 2025.
GCI's shares have increased by 8.07 percent from the previous close, currently trading at $3.95. For the full year, Gannett expects net income attributable to improve from the previous year. Additionally, Gannett Co., Inc. reported a narrowed pre-tax loss of $9.07 million, from $13.09 million last year.
In the digital space, Gannett expects total digital revenues to grow approximately 3 to 5 percent on a same store basis for the second half of the year. For the full year, same store revenue trends are expected to be flat in early 2026.
[1] Gannett Co., Inc. Reports Q2 2025 Results
[2] Gannett Co., Inc. Q2 2025 Earnings Call Transcript
[3] Gannett Co., Inc. Q2 2025 Press Release
[4] Gannett Co., Inc. 2025 Q2 Earnings Release
[5] Gannett Co., Inc. 2025 Q2 Earnings Call Transcript
[1] In the business sector, Gannett Co., Inc. (GCI) announced an impressive 471.5% surge in net income for Q2 2025, while also reporting a significant increase in earnings per share (EPS), despite a decline in total revenues.
[2] The finance segment of GCI's Q2 2025 results also showed an improvement in adjusted EBITDA margin and a increase in free cash flow by 73%, showcasing better cash generation and operational efficiency.
