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Lee Enterprises (LEE) AI Stock Analysis
Lee Enterprises
(NASDAQ:LEE)
The overall score of 47 reflects a company in transition with a highly challenged financial foundation but credible operational momentum. The most significant negative factors are the extremely weak balance sheet, characterized by minimal equity and high leverage, and a bearish technical trend. These are partially offset by strong, measurable improvements highlighted in the earnings call, including substantial adjusted EBITDA growth, successful cost reductions, and a clear shift toward a digital-first revenue model. The company's path to sustainable profitability is visible but remains unproven, keeping the score in the lower range.
Lee Enterprises Key Performance Indicators (KPIs)
Revenue by SourceBreaks down revenue by advertising (print and digital), circulation/subscriptions, commercial printing and marketing services to show how dependent Lee Enterprises is on ad cycles versus recurring reader income. A larger share of subscription and digital revenue suggests steadier cash flow and progress on digital transformation, while heavy reliance on print ads or printing services increases exposure to economic downturns and long-term readership declines and can pressure margins and capital needs.
Advertising has been under steady, structural pressure while subscription revenue — the higher‑margin pillar management leans on — has flattened and recently softened; TownNews was removed/reclassified, suggesting asset monetization. Management’s profitability gains therefore look driven more by aggressive cost cuts, asset sales and a one‑time insurance recovery than by a sustainable rebound in ad dollars. The investment case hinges on whether product, agency and subscriber initiatives can restore durable ad demand and accelerate paid‑subscriber growth to fully cover SG&A over the next three years.
The FlyLee Enterprises (LEE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $136.43M
- Dividend Yield
- ―
- Average Volume (3M)
- 37.28K
- Price to Earnings (P/E)
- -3.9
- Beta (1Y)
- 0.42
- Revenue Growth
- -11.12%
- EPS Growth
- 72.31%
- Country
- US
- Employees
- 2,365
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Publishing
Lee Enterprises Business Overview & Revenue Model
Company Description
Lee Enterprises, Incorporated, a long-standing media organization founded in 1890 and headquartered in Davenport, Iowa, delivers local news, critical information, and diverse advertising services throughout the United States. The company publishes a...
How the Company Makes Money
Lee Enterprises makes money primarily by monetizing audience attention and subscriber relationships across its local news brands, and by selling marketing services to businesses. Key revenue streams include: (1) Subscription and circulation revenue:...
Lee Enterprises Earnings Call Summary
The call emphasized material progress in Lee Enterprises' digital transformation, strong profitability gains (adjusted EBITDA up 23% YoY, margin expansion, return to net income), meaningful balance sheet improvements (cash up to $59M, lower interest costs), and new capital-light growth channels (Hoffman Media Group management agreement). Offsetting these positives are continued advertising-market uncertainty, modest near-term debt paydown, reliance on cost reductions for improved results, and limited realized proceeds from non-core asset monetization. Overall, the positive operational momentum and financial improvements outweigh the challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company raised its full‑year guidance for adjusted EBITDA to growth of 22%–28%, and said it expects digital revenue and digital gross margin to fully support the business (covering SG&A) within the next three years; management also expects approximately $18 million of annual interest savings (about $90 million over five years) after reducing its interest rate from 9% to 5%. To accelerate deleveraging, Lee will apply proceeds from monetizing non‑core assets (identified value ~$20 million; one sale closed since quarter end) and any cash above a $64 million cap to debt repayment—the company paid $1 million in Q3 ( $3 million year‑to‑date including post‑quarter payments) and has reduced outstanding debt by $121 million since March 2020—while finishing the quarter with $59 million of cash versus $14 million a year ago.
Lee Enterprises Financial Statement Overview
Summary
Financial performance is weak, driven by a very low balance sheet score of 15 due to minimal equity and extreme leverage, and poor cash flow generation. While the income statement shows some improvement with a narrowed net loss and a 5.1% EBIT margin, persistent revenue declines and a lack of consistent profitability weigh heavily. The overall financial position remains precarious.
Income Statement
35NegativeBalance Sheet
15Very NegativeCash Flow
25Negative| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 517.10M | 562.34M | 611.38M | 691.14M | 780.97M | 794.65M |
| Gross Profit | 506.13M | 549.38M | 594.57M | 665.79M | 750.87M | 764.87M |
| EBITDA | 40.48M | 16.70M | 37.66M | 69.01M | 79.11M | 119.66M |
| Net Income | -9.50M | -37.59M | -25.84M | -5.27M | -2.02M | 22.75M |
Balance Sheet | ||||||
| Total Assets | 624.60M | 601.73M | 649.17M | 711.62M | 744.04M | 843.55M |
| Cash, Cash Equivalents and Short-Term Investments | 59.43M | 9.99M | 9.60M | 14.55M | 16.18M | 26.11M |
| Total Debt | 475.30M | 481.58M | 483.85M | 500.08M | 516.42M | 548.91M |
| Total Liabilities | 624.56M | 642.69M | 656.50M | 687.91M | 726.80M | 800.32M |
| Stockholders Equity | -2.24M | -43.31M | -9.89M | 21.24M | 15.01M | 41.10M |
Cash Flow | ||||||
| Free Cash Flow | -578.00K | -7.08M | -8.09M | -7.63M | -4.68M | 42.60M |
| Operating Cash Flow | -167.00K | -5.54M | 1.12M | -2.52M | 2.85M | 50.08M |
| Investing Cash Flow | 538.00K | 7.71M | 3.73M | 7.98M | 6.91M | -2.28M |
| Financing Cash Flow | 44.18M | -1.78M | -9.80M | -7.09M | -19.69M | -55.42M |
Lee Enterprises Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEE, the sentiment is Negative. The current price of 6.12 is below the 20-day moving average (MA) of 6.71, below the 50-day MA of 7.21, and below the 200-day MA of 8.00, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 32.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEE.
Lee Enterprises Risk Analysis
Lee Enterprises disclosed 17 risk factors in its most recent earnings report. Lee Enterprises reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskLee Enterprises Peers Comparison
Overall Rating
NYT68Neutral
SCHL49Neutral- LEE47Neutral
SEAT44Neutral
SSP41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NYT | 68Neutral | $11.32B | 29.00 | 19.47% | 1.24% | 10.76% | 23.78% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| SCHL | 49Neutral | $723.49M | 26.03 | 7.05% | 2.29% | -2.53% | ― |
| LEE | 47Neutral | $136.43M | -3.95 | 38.08% | ― | -11.12% | 72.31% |
| SEAT | 44Neutral | $25.97M | -0.06 | 9301.18% | ― | -25.24% | -83.32% |
| SSP | 41Neutral | $242.79M | -0.19 | -127.81% | ― | -14.18% | -2948.71% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LEE | Lee Enterprises | 6.12 | 1.83 | 42.66% | |
| SSP | E. W. Scripps Company Class A | 2.62 | 0.27 | 11.49% | |
| NYT | The New York Times Company | 70.17 | 13.79 | 24.47% | |
| SCHL | Scholastic | 39.30 | 11.46 | 41.17% | |
| SEAT | Vivid Seats Inc. | 2.31 | -9.89 | -81.07% |
Lee Enterprises Corporate Events
Lee Enterprises Signs New AI-Focused Software Agreements
PositiveOn October 16, 2026, Lee Enterprises and its majority-owned subsidiary BLOX Digital each entered into three-year Master Service Agreements with Quintype Solutions for software development services, backed by guaranties from shareholder Quint Digital....
Lee Enterprises Adds Hoffmann to Board Amid Governance Shift
PositiveOn September 24, 2026, Lee Enterprises appointed Gregory Hoffmann, Co-Chief Executive Officer of Hoffmann Family of Companies and an experienced real estate and investment executive, to its Board of Directors, with service running through the 2028 an...
Lee Enterprises Enhances Executive Incentives and Leadership Alignment
PositiveOn April 23, 2026, Lee Enterprises’ board named Nathan E. Bekke president and chief executive officer and Joshua P. Rinehults vice president, chief financial officer and treasurer, and on August 6, 2026, its executive compensation committee app...
Lee Enterprises Highlights Strong Digital Growth and Profitability
PositiveLee Enterprises, Inc. reported preliminary results for its third quarter of fiscal 2026, ended June 28, highlighting the impact of its digital-first strategy and tighter cost controls. Digital revenue reached $72 million, or 57% of total operating re...
Lee Enterprises Announces Board Retirement and Governance Transition
NeutralOn July 28, 2026, Herbert W. Moloney III informed the Board of Directors of Lee Enterprises that he was retiring from the Board, effective that same day. The company stated that Moloney’s departure involved no disagreements with the Board, indi...
Lee Enterprises Updates Stock Purchase Agreement Standstill Terms
PositiveOn July 24, 2026, Lee Enterprises, Incorporated amended a December 30, 2025 Stock Purchase Agreement with a group of major investors, adjusting standstill provisions that govern how much company stock they may buy during a restricted period. The upda...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 22, 2026