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1. Company Snapshot

1.a. Company Description

Gannett Co., Inc.operates as a media and marketing solutions company in the United States.It operates through two segments, Publishing and Digital Marketing Solutions.


The company's principal products include 230 daily print media with total paid circulation of approximately 1.9 million and Sunday circulation of 2.2 million; 249 weekly print media with total circulation of approximately 1.4 million; and 292 locally-focused websites.Its principal products also comprise 123 daily and weekly news media brands and approximately 80 magazines, and related digital platforms; sports network, as well as Reviewed.com, an affiliate marketing service; and USA TODAY NETWORK, a community events platform.The company also offers digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions.


In addition, it produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate.Further, the company offers local market news and information, as well as advertising and subscriptions, and commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations.The company was formerly known as New Media Investment Group Inc.


and changed its name to Gannett Co., Inc.in November 2019.Gannett Co., Inc.


was incorporated in 2013 and is headquartered in McLean, Virginia.

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1.b. Last Insights on GCI

Gannett Co., Inc.'s recent performance was positively driven by its Q3 2025 earnings release, which highlighted solid progress across key digital operating priorities and the completion of its $100 million cost reduction program. A new AI licensing deal with Microsoft also contributed to the momentum. Additionally, Aurelius Capital Management's new investment in the company, comprising 1,165,592 shares valued at approximately $4,173,000, signals confidence from institutional investors. The company's rebranding to USA TODAY Co., Inc. may also enhance its brand recognition.

1.c. Company Highlights

2. Gannett's Q3 2025 Earnings: A Mixed Bag with Promising AI Licensing Prospects

Gannett reported total revenues of $560.8 million, a decrease of 8.4% or 6.8% on a same-store basis, missing expectations. The company's adjusted EBITDA showed a positive trend, driven by the full implementation of their $100 million cost reduction program. The actual EPS came out at -$0.21, worse than the estimated -$0.125. Total digital revenues were $262.7 million, representing 47% of total company revenue, with digital advertising revenues increasing 2.9% year-over-year.

Publication Date: Nov -12

📋 Highlights
  • Total Debt Reduction: Debt fell below $1 billion for the first time since the 2019 merger, with $18.5 million repaid in Q3 and $135 million+ expected by year-end.
  • Digital Revenue Growth: Digital revenue hit $262.7 million (47% of total revenue) in Q3, up from prior quarters, with a 47%→50% total revenue target by Q4.
  • Cost Program Impact: $100 million cost reduction program fully implemented, driving 2.9% digital advertising revenue growth and 8.5% digital-only ARPU to $8.80.
  • AI Monetization Traction: DeeperDive AI answer engine achieved 3 million user interactions in September, while 99% of AI bots were blocked, preventing 70 million scrapes.
  • Licensing & EBITDA Momentum: AI licensing deals (e.g., Microsoft) and cost savings drove Q4 adjusted EBITDA growth, with $35.4 million in Domestic Gannett Media and $14.6 million in Newsquest.

Segment Performance

The Domestic Gannett Media segment reported segment adjusted EBITDA of $35.4 million, with a margin of 8.5%. The Newsquest segment adjusted EBITDA totaled $14.6 million, up 4.6%, with segment adjusted EBITDA margins increasing 50 basis points to 23.9%. The Digital Marketing Solutions segment reported Core Platform revenue of $114 million, with segment adjusted EBITDA of $9.8 million. Core Platform ARPU remained near record highs at approximately $2,800, reflecting growth of 2%.

AI Licensing and Debt Reduction

Gannett has made significant progress in AI licensing, securing a new deal with Microsoft and blocking 99% of AI bots trying to scrape their content. The company expects AI licensing fees to become a critical revenue stream. Gannett has also repaid $18.5 million of debt in Q3, bringing their total debt below $1 billion. They expect to repay over $135 million in debt during 2025. As Trisha Gosser mentioned, "We have a few small to mid-sized real estate deals in our pipeline, which we expect to complete in Q4 and Q1."

Valuation and Outlook

With a P/S Ratio of 0.32 and an EV/EBITDA of 7.03, the market seems to have moderate expectations from Gannett. However, the company's ROE is 52.36%, indicating a relatively strong return on equity. Analysts estimate next year's revenue growth at -1.8%, which may put pressure on the stock. Nevertheless, Gannett's efforts in AI licensing and debt reduction are positive signs for the company's future prospects.

3. NewsRoom

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Aurelius Capital Management LP Makes New Investment in Gannett Co., Inc. $GCI

Dec -01

Source: defenseworld.net

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GCI Liberty Announces Terms for Previously Announced Rights Offering

Nov -25

Source: businesswire.com

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Gannett Changes Name to USA TODAY Co.

Nov -18

Source: businesswire.com

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GCI Liberty to Participate in Q&A Session During Liberty Media Annual Investor Meeting

Nov -13

Source: businesswire.com

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GCI Liberty Reports Third Quarter 2025 Financial Results

Nov -05

Source: businesswire.com

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GCI Liberty Announces $300 Million Rights Offering for Series C GCI Group Common Stock

Nov -05

Source: businesswire.com

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Gannett Rebrands to USA TODAY Co.

Nov -04

Source: businesswire.com

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Gannett Co., Inc. (GCI) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.28%)

6. Segments

Domestic Gannett Media

Expected Growth: 1.83%

Domestic Gannett Media's 1.83% growth is driven by increasing digital subscriptions, robust online advertising, and strategic cost savings initiatives. Additionally, the segment benefits from a strong local presence, diversified revenue streams, and a growing events business. These factors contribute to a stable and growing top-line performance.

Digital Marketing Solutions

Expected Growth: 10.27%

Gannett Co.'s 10.27% growth in Digital Marketing Solutions is driven by increasing demand for online advertising, expansion of its digital product offerings, and strategic acquisitions. Additionally, the company's focus on providing data-driven marketing solutions and its ability to help small businesses reach local customers digitally have contributed to its growth.

Newsquest

Expected Growth: 2.5%

Newsquest's 2.5% growth is driven by its strong local media presence, diversified revenue streams, and strategic acquisitions. The company's focus on digital transformation, including investments in online advertising and e-commerce platforms, has also contributed to its growth. Additionally, Newsquest's cost-saving initiatives and operational efficiencies have helped to improve profitability.

Intersegment Eliminations

Expected Growth: 2.5%

Gannett Co., Inc.'s 2.5% Intersegment Eliminations growth is driven by increasing advertising revenue, strategic acquisitions, and cost savings initiatives. The company's focus on digital transformation and expansion into new markets also contributes to this growth. Additionally, the elimination of intercompany transactions and the consolidation of financial statements further support this growth rate.

Corporate and Other

Expected Growth: 4.83%

Gannett Co., Inc.'s Corporate and Other segment growth of 4.83% is driven by increased digital marketing services, expansion of affiliate marketing agreements, and cost savings initiatives. Additionally, the company's focus on digital transformation, including investments in data analytics and e-commerce capabilities, has contributed to the segment's growth.

7. Detailed Products

USA TODAY NETWORK

A portfolio of national and local news brands, including USA TODAY, offering news, sports, entertainment, and lifestyle content

LOCALiQ

A digital marketing agency providing services such as website design, SEO, social media management, and online advertising

GATEHOUSE MEDIA

A network of local news organizations providing community-focused news, sports, and entertainment content

REACHLOCAL

A digital marketing agency providing services such as online advertising, social media management, and website design

NEWSPAPER PUBLISHING

A portfolio of local newspapers and publications providing community-focused news, sports, and entertainment content

8. Gannett Co., Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Gannett Co., Inc. is medium due to the presence of alternative sources of news and information, such as online news websites and social media platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market, with many individual customers having limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of newsprint and other essential materials, but the company has some flexibility in sourcing.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and established relationships with advertisers and subscribers.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established competitors in the newspaper publishing industry, leading to intense competition for advertising revenue and readers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 77.43%
Debt Cost 3.95%
Equity Weight 22.57%
Equity Cost 15.56%
WACC 6.57%
Leverage 343.12%

11. Quality Control: Gannett Co., Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.97$

Current Price

4.97$

Potential

-0.00%

Expected Cash-Flows