Gannett announces Microsoft AI deal

Gannett Co. (NYSE: GCI) reported third quarter 2025 revenues of $560.8 million, down 8.4% year-over-year, according to a company press release. Same store revenues declined 6.8% during the period.

The media company posted a net loss attributable to Gannett of $39.2 million for the quarter. Digital revenues totaled $262.7 million, representing 46.9% of total revenues, compared to $277.4 million in the prior year quarter.

Gannett announced a new artificial intelligence licensing agreement with Microsoft for the company's upcoming Publisher Content Marketplace launch. The partnership was described by CEO Michael Reed as a "significant milestone" for the company.

The company completed implementation of its $100 million cost reduction program during the quarter and achieved total debt falling below $1.0 billion for the first time. Total principal debt outstanding was $996.4 million as of September 30, 2025, with the company repaying $18.5 million of debt during the quarter.

Adjusted EBITDA reached $57.2 million, though this was impacted by approximately $7.0 million of digital revenue that shifted to the fourth quarter and unplanned expenses related to the cost reduction program. Free cash flow was $4.9 million compared to $19.8 million in the prior year quarter.

The company updated its full year 2025 outlook, expecting total digital revenues to decline in the low single digits on a same store basis while projecting they will comprise over 50% of total revenues during 2026. Gannett anticipates fourth quarter digital revenues to grow in the low single digits on a same store basis.

Digital-only paid subscriptions totaled 1.6 million as of September 30, 2025, down from 2.1 million a year earlier. Average revenue per user increased to $8.80 from $8.16 in the prior year quarter.

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