Gray Television’s third quarter results prompted a mildly negative market reaction, as strong revenue growth and margin expansion were offset by a notable shortfall in reported profit per share. Management attributed the top-line performance to elevated political advertising tied to the election cycle and incremental contributions from recent acquisitions. CEO Hilton Howell highlighted the company’s “exceptional results” in political ad revenue and the ongoing benefits from integrating newly acquired stations. Management also pointed to continued digital growth and operational cost increases primarily tied to acquisitions.
Is now the time to buy GTN? Find out in our full research report (it’s free for active Edge members).
Gray Television (GTN) Q3 2026 highlights:
- Revenue $972 million vs S&P analyst consensus of $958.9 million (29.8% year-on-year growth, 1.4% beat)
- Adjusted EPS $0.95 vs S&P analyst consensus of $0.97 (2.2% miss)
- Adjusted EBITDA $316 million vs analyst estimates of $306.7 million (32.5% margin, 3% beat)
- Revenue guidance $1.13 billion at the midpoint for Q4 2026, above analyst estimates of $1.07 billion
- Operating margin 27.4%, up from 13.6% in the same quarter last year
- Market capitalization $488.7 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Gray Television’s Q3 earnings call
- Patrick Sholl (Barrington Research) asked about expense reductions from recent acquisitions; CFO Jeff Gignac explained integration is about 75–80% complete, with further savings expected as stations are consolidated.
- Patrick Sholl (Barrington Research) inquired about the duration of sports programming deals; President Pat LaPlatney said most deals are short-term, with only a few multi-year, as leagues pursue broader national agreements.
- Dan Kurnos (StoneX) sought clarity on capital allocation between debt reduction and M&A; CEO Hilton Howell and CFO Jeff Gignac emphasized prioritizing high-return opportunities, with debt paydown remaining a focus but M&A considered if it accelerates deleveraging.
- Aaron Watts (Deutsche Bank) asked about core ad trends and green shoots post-election; President Pat LaPlatney noted early signs of improvement in Q1 pacing, despite a difficult prior-year comparison due to the Olympics and Super Bowl.
- Steven Cahall (Wells Fargo) questioned the scalability of the Louisville newsroom consolidation; COO Sandy Breland said the model is scalable but must be customized by market, with CEO Howell confirming plans to apply lessons learned to other markets.
Catalysts in upcoming quarters
Looking forward, the StockStory team will be monitoring (1) the pace and success of further cost reductions from acquisition integrations, (2) the sustainability of digital advertising growth as platform upgrades continue, and (3) signs of stabilization or improvement in core advertising trends post-election. Additionally, we will watch for any new M&A activity or further progress on deleveraging, which could influence the company’s operational flexibility.
Gray Television currently trades at $4.67, down from $4.88 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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