ガネットの四半期報告

0001579684false2024Q212/31P1Mxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesgci:segmentxbrli:puregci:amendmentgci:puregci:component00015796842024-01-012024-06-3000015796842024-07-2900015796842024-06-3000015796842023-12-310001579684gci:DigitalMember2024-04-012024-06-300001579684gci:DigitalMember2023-04-012023-06-300001579684gci:DigitalMember2024-01-012024-06-300001579684gci:DigitalMember2023-01-012023-06-300001579684gci:PrintAndCommercialMember2024-04-012024-06-300001579684gci:PrintAndCommercialMember2023-04-012023-06-300001579684gci:PrintAndCommercialMember2024-01-012024-06-300001579684gci:PrintAndCommercialMember2023-01-012023-06-3000015796842024-04-012024-06-3000015796842023-04-012023-06-3000015796842023-01-012023-06-3000015796842022-12-3100015796842023-06-300001579684us-gaap:CommonStockMember2024-03-310001579684us-gaap:AdditionalPaidInCapitalMember2024-03-310001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001579684us-gaap:RetainedEarningsMember2024-03-310001579684us-gaap:TreasuryStockCommonMember2024-03-310001579684us-gaap:NoncontrollingInterestMember2024-03-3100015796842024-03-310001579684us-gaap:RetainedEarningsMember2024-04-012024-06-300001579684us-gaap:NoncontrollingInterestMember2024-04-012024-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001579684us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001579684us-gaap:CommonStockMember2024-04-012024-06-300001579684us-gaap:TreasuryStockCommonMember2024-04-012024-06-300001579684us-gaap:CommonStockMember2024-06-300001579684us-gaap:AdditionalPaidInCapitalMember2024-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001579684us-gaap:RetainedEarningsMember2024-06-300001579684us-gaap:TreasuryStockCommonMember2024-06-300001579684us-gaap:NoncontrollingInterestMember2024-06-300001579684us-gaap:CommonStockMember2023-03-310001579684us-gaap:AdditionalPaidInCapitalMember2023-03-310001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001579684us-gaap:RetainedEarningsMember2023-03-310001579684us-gaap:TreasuryStockCommonMember2023-03-310001579684us-gaap:NoncontrollingInterestMember2023-03-3100015796842023-03-310001579684us-gaap:RetainedEarningsMember2023-04-012023-06-300001579684us-gaap:NoncontrollingInterestMember2023-04-012023-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001579684us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001579684us-gaap:CommonStockMember2023-04-012023-06-300001579684us-gaap:TreasuryStockCommonMember2023-04-012023-06-300001579684us-gaap:CommonStockMember2023-06-300001579684us-gaap:AdditionalPaidInCapitalMember2023-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001579684us-gaap:RetainedEarningsMember2023-06-300001579684us-gaap:TreasuryStockCommonMember2023-06-300001579684us-gaap:NoncontrollingInterestMember2023-06-300001579684us-gaap:CommonStockMember2023-12-310001579684us-gaap:AdditionalPaidInCapitalMember2023-12-310001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001579684us-gaap:RetainedEarningsMember2023-12-310001579684us-gaap:TreasuryStockCommonMember2023-12-310001579684us-gaap:NoncontrollingInterestMember2023-12-310001579684us-gaap:RetainedEarningsMember2024-01-012024-06-300001579684us-gaap:NoncontrollingInterestMember2024-01-012024-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001579684us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001579684us-gaap:CommonStockMember2024-01-012024-06-300001579684us-gaap:TreasuryStockCommonMember2024-01-012024-06-300001579684us-gaap:CommonStockMember2022-12-310001579684us-gaap:AdditionalPaidInCapitalMember2022-12-310001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001579684us-gaap:RetainedEarningsMember2022-12-310001579684us-gaap:TreasuryStockCommonMember2022-12-310001579684us-gaap:NoncontrollingInterestMember2022-12-310001579684us-gaap:RetainedEarningsMember2023-01-012023-06-300001579684us-gaap:NoncontrollingInterestMember2023-01-012023-06-300001579684us-gaap:CommonStockMember2023-01-012023-06-300001579684us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300001579684us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001579684us-gaap:TreasuryStockCommonMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalAdvertisingMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2024-04-012024-06-300001579684gci:DigitalMarketingServicesMemberus-gaap:IntersegmentEliminationMember2024-04-012024-06-300001579684gci:DigitalMarketingServicesMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalOnlySubscriptionMember2024-04-012024-06-300001579684gci:DigitalOtherMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001579684gci:DigitalOtherMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalOtherMemberus-gaap:CorporateNonSegmentMember2024-04-012024-06-300001579684gci:DigitalOtherMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2024-04-012024-06-300001579684us-gaap:CorporateNonSegmentMembergci:DigitalMember2024-04-012024-06-300001579684gci:DigitalMemberus-gaap:IntersegmentEliminationMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAdvertisingMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAdvertisingMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:PrintAdvertisingMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintCirculationMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintCirculationMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:PrintCirculationMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialAndOtherMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialAndOtherMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:CommercialAndOtherMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAndCommercialMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAndCommercialMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001579684us-gaap:CorporateNonSegmentMember2024-04-012024-06-300001579684us-gaap:IntersegmentEliminationMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMember2024-04-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684us-gaap:NonUsMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalAdvertisingMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2023-04-012023-06-300001579684gci:DigitalMarketingServicesMemberus-gaap:IntersegmentEliminationMember2023-04-012023-06-300001579684gci:DigitalMarketingServicesMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalOnlySubscriptionMember2023-04-012023-06-300001579684gci:DigitalOtherMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001579684gci:DigitalOtherMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalOtherMemberus-gaap:CorporateNonSegmentMember2023-04-012023-06-300001579684gci:DigitalOtherMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2023-04-012023-06-300001579684us-gaap:CorporateNonSegmentMembergci:DigitalMember2023-04-012023-06-300001579684gci:DigitalMemberus-gaap:IntersegmentEliminationMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAdvertisingMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAdvertisingMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:PrintAdvertisingMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintCirculationMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintCirculationMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:PrintCirculationMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialAndOtherMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialAndOtherMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:CommercialAndOtherMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAndCommercialMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAndCommercialMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001579684us-gaap:CorporateNonSegmentMember2023-04-012023-06-300001579684us-gaap:IntersegmentEliminationMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMember2023-04-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684us-gaap:NonUsMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalAdvertisingMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2024-01-012024-06-300001579684gci:DigitalMarketingServicesMemberus-gaap:IntersegmentEliminationMember2024-01-012024-06-300001579684gci:DigitalMarketingServicesMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalOnlySubscriptionMember2024-01-012024-06-300001579684gci:DigitalOtherMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001579684gci:DigitalOtherMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalOtherMemberus-gaap:CorporateNonSegmentMember2024-01-012024-06-300001579684gci:DigitalOtherMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2024-01-012024-06-300001579684us-gaap:CorporateNonSegmentMembergci:DigitalMember2024-01-012024-06-300001579684gci:DigitalMemberus-gaap:IntersegmentEliminationMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAdvertisingMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAdvertisingMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:PrintAdvertisingMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintCirculationMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintCirculationMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:PrintCirculationMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialAndOtherMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialAndOtherMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:CommercialAndOtherMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAndCommercialMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAndCommercialMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001579684us-gaap:CorporateNonSegmentMember2024-01-012024-06-300001579684us-gaap:IntersegmentEliminationMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMember2024-01-012024-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684us-gaap:NonUsMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalAdvertisingMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalAdvertisingMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMarketingServicesMember2023-01-012023-06-300001579684gci:DigitalMarketingServicesMemberus-gaap:IntersegmentEliminationMember2023-01-012023-06-300001579684gci:DigitalMarketingServicesMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalOnlySubscriptionMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalOnlySubscriptionMember2023-01-012023-06-300001579684gci:DigitalOtherMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001579684gci:DigitalOtherMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalOtherMemberus-gaap:CorporateNonSegmentMember2023-01-012023-06-300001579684gci:DigitalOtherMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:DigitalMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMembergci:DigitalMember2023-01-012023-06-300001579684us-gaap:CorporateNonSegmentMembergci:DigitalMember2023-01-012023-06-300001579684gci:DigitalMemberus-gaap:IntersegmentEliminationMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAdvertisingMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAdvertisingMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:PrintAdvertisingMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintCirculationMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintCirculationMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:PrintCirculationMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialAndOtherMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialAndOtherMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:CommercialAndOtherMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:PrintAndCommercialMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:PrintAndCommercialMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001579684us-gaap:CorporateNonSegmentMember2023-01-012023-06-300001579684us-gaap:IntersegmentEliminationMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMember2023-01-012023-06-300001579684us-gaap:OperatingSegmentsMembergci:CommercialPrintingAndDeliveryRevenueMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684us-gaap:NonUsMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-06-300001579684

2024-07-01

srt:MinimumMembergci:CustomerSubscriptionMember2024-06-300001579684

2024-07-01

srt:MaximumMembergci:CustomerSubscriptionMember2024-06-300001579684gci:AdvertiserRelationshipsMember2024-06-300001579684gci:AdvertiserRelationshipsMember2023-12-310001579684us-gaap:CustomerRelationshipsMember2024-06-300001579684us-gaap:CustomerRelationshipsMember2023-12-310001579684gci:SubscriberRelationshipsMember2024-06-300001579684gci:SubscriberRelationshipsMember2023-12-310001579684us-gaap:OtherIntangibleAssetsMember2024-06-300001579684us-gaap:OtherIntangibleAssetsMember2023-12-310001579684gci:MastheadsMember2024-06-300001579684gci:MastheadsMember2023-12-310001579684us-gaap:EmployeeSeveranceMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001579684us-gaap:EmployeeSeveranceMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001579684us-gaap:EmployeeSeveranceMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001579684us-gaap:EmployeeSeveranceMembergci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-04-012024-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-04-012023-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2024-01-012024-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:OperatingSegmentsMembergci:NewsquestSegmentMember2023-01-012023-06-300001579684us-gaap:EmployeeSeveranceMembergci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001579684us-gaap:EmployeeSeveranceMembergci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001579684us-gaap:EmployeeSeveranceMembergci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001579684us-gaap:EmployeeSeveranceMembergci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:CorporateNonSegmentMember2024-04-012024-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:CorporateNonSegmentMember2023-04-012023-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:CorporateNonSegmentMember2024-01-012024-06-300001579684us-gaap:EmployeeSeveranceMemberus-gaap:CorporateNonSegmentMember2023-01-012023-06-300001579684us-gaap:EmployeeSeveranceMember2024-04-012024-06-300001579684us-gaap:EmployeeSeveranceMember2023-04-012023-06-300001579684us-gaap:EmployeeSeveranceMember2024-01-012024-06-300001579684us-gaap:EmployeeSeveranceMember2023-01-012023-06-300001579684us-gaap:EmployeeSeveranceMember2023-12-310001579684us-gaap:EmployeeSeveranceMember2024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2023-04-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2023-01-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2024-04-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2023-04-012023-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2024-01-012024-06-300001579684gci:DigitalMarketingSolutionsSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2023-01-012023-06-300001579684us-gaap:CorporateNonSegmentMemberus-gaap:OtherRestructuringMember2024-04-012024-06-300001579684us-gaap:CorporateNonSegmentMemberus-gaap:OtherRestructuringMember2023-04-012023-06-300001579684us-gaap:CorporateNonSegmentMemberus-gaap:OtherRestructuringMember2024-01-012024-06-300001579684us-gaap:CorporateNonSegmentMemberus-gaap:OtherRestructuringMember2023-01-012023-06-300001579684us-gaap:OtherRestructuringMember2024-04-012024-06-300001579684us-gaap:OtherRestructuringMember2023-04-012023-06-300001579684us-gaap:OtherRestructuringMember2024-01-012024-06-300001579684us-gaap:OtherRestructuringMember2023-01-012023-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:OtherRestructuringMultiemployerPensionPlansMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:OtherRestructuringMultiemployerPensionPlansMember2024-04-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:OtherRestructuringLicensedContentMember2024-01-012024-06-300001579684gci:DomesticGannettMediaSegmentMemberus-gaap:OperatingSegmentsMembergci:OtherRestructuringMultiemployerPensionPlansMember2023-01-012023-06-300001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2024-06-300001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2023-12-310001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2024-06-300001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2023-12-310001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2024-06-300001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2023-12-310001579684gci:TwentyTwentyFourNotesMemberus-gaap:ConvertibleDebtMember2024-06-300001579684gci:TwentyTwentyFourNotesMemberus-gaap:ConvertibleDebtMember2023-12-310001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-152021-10-150001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-150001579684gci:SeniorSecuredTermLoanMembergci:IncrementalTermLoansMember2022-01-310001579684gci:SeniorSecuredTermLoanMembergci:IncrementalTermLoansMember2022-01-012022-12-310001579684gci:SeniorSecuredTermLoanMembergci:IncrementalTermLoansMember2022-12-310001579684srt:MinimumMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMemberus-gaap:SecuredOvernightFinancingRateSofrMember2021-10-152021-10-150001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMemberus-gaap:SecuredOvernightFinancingRateSofrMember2021-10-152021-10-150001579684gci:AlternateBaseRateMembersrt:MinimumMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-152021-10-150001579684gci:AlternateBaseRateMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-152021-10-150001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2022-04-080001579684srt:MinimumMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-150001579684gci:SeniorSecuredTermLoanMembergci:DebtCovenantRangeOneMembergci:SeniorSecuredTermLoanMember2021-10-150001579684gci:DebtCovenantRangeTwoMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-150001579684gci:DebtCovenantRangeThreeMembergci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2021-10-150001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2024-01-012024-06-300001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2024-04-012024-06-300001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2023-04-012023-06-300001579684gci:SeniorSecuredTermLoanMembergci:SeniorSecuredTermLoanMember2023-01-012023-06-300001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2021-10-150001579684gci:TwentyTwentySixNotesMembergci:SeniorSecuredTermLoanMember2022-01-012022-12-310001579684gci:TwentyTwentySixNotesMembergci:SeniorSecuredTermLoanMember2022-12-310001579684us-gaap:DebtInstrumentRedemptionPeriodOneMembergci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2021-10-152021-10-150001579684us-gaap:FairValueInputsLevel2Membergci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2024-06-300001579684us-gaap:FairValueInputsLevel2Membergci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2023-12-310001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2024-01-012024-06-300001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2023-01-012023-06-300001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2024-04-012024-06-300001579684gci:TwentyTwentySixNotesMemberus-gaap:SeniorNotesMember2023-04-012023-06-300001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2020-11-170001579684us-gaap:ScenarioPlanMembergci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2020-11-170001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2021-12-310001579684us-gaap:DebtInstrumentRedemptionPeriodOneMembergci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2020-11-172020-11-170001579684us-gaap:DebtInstrumentRedemptionPeriodOneMembergci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2020-11-170001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2020-11-172020-11-170001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2020-11-170001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2020-11-172020-11-170001579684us-gaap:FairValueInputsLevel2Membergci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2024-06-300001579684us-gaap:FairValueInputsLevel2Membergci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2023-12-310001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2024-04-012024-06-300001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2024-01-012024-06-300001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2023-04-012023-06-300001579684gci:TwentyTwentySevenNotesMemberus-gaap:ConvertibleDebtMember2023-01-012023-06-300001579684gci:TwentyTwentyFourNotesMemberus-gaap:ConvertibleDebtMember2024-04-140001579684us-gaap:PensionPlansDefinedBenefitMember2024-04-012024-06-300001579684us-gaap:PensionPlansDefinedBenefitMember2023-04-012023-06-300001579684us-gaap:PostemploymentRetirementBenefitsMember2024-04-012024-06-300001579684us-gaap:PostemploymentRetirementBenefitsMember2023-04-012023-06-300001579684us-gaap:PensionPlansDefinedBenefitMember2024-01-012024-06-300001579684us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-06-300001579684us-gaap:PostemploymentRetirementBenefitsMember2024-01-012024-06-300001579684us-gaap:PostemploymentRetirementBenefitsMember2023-01-012023-06-300001579684gci:GannettRetirementPlanMembersrt:ScenarioForecastMember2024-09-300001579684gci:GannettRetirementPlanMembersrt:ScenarioForecastMember2022-10-012024-09-300001579684gci:GannettRetirementPlanMember2024-06-300001579684us-gaap:WarrantMember2024-04-012024-06-300001579684us-gaap:WarrantMember2023-04-012023-06-300001579684us-gaap:WarrantMember2024-01-012024-06-300001579684us-gaap:WarrantMember2023-01-012023-06-300001579684us-gaap:StockOptionMember2024-04-012024-06-300001579684us-gaap:StockOptionMember2023-04-012023-06-300001579684us-gaap:StockOptionMember2024-01-012024-06-300001579684us-gaap:StockOptionMember2023-01-012023-06-300001579684us-gaap:RestrictedStockMember2024-04-012024-06-300001579684us-gaap:RestrictedStockMember2023-04-012023-06-300001579684us-gaap:RestrictedStockMember2024-01-012024-06-300001579684us-gaap:RestrictedStockMember2023-01-012023-06-300001579684us-gaap:ConvertibleDebtSecuritiesMember2024-04-012024-06-300001579684us-gaap:ConvertibleDebtSecuritiesMember2023-04-012023-06-300001579684us-gaap:ConvertibleDebtSecuritiesMember2024-01-012024-06-300001579684us-gaap:ConvertibleDebtSecuritiesMember2023-01-012023-06-300001579684gci:RestrictedStockAwardsMember2024-01-012024-06-300001579684gci:RestrictedStockAwardsMember2024-04-012024-06-300001579684gci:CashPerformanceUnitsAndLongTermCashAwardsMember2024-06-300001579684gci:StockRepurchaseProgramMember2022-02-010001579684gci:StockRepurchaseProgramMember2024-01-012024-06-300001579684gci:StockRepurchaseProgramMember2024-06-300001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310001579684us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001579684us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-06-300001579684us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-06-300001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-06-300001579684us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-06-300001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300001579684us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300001579684us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300001579684us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300001579684gci:CompensatoryDamagesMembergci:ScottO.SapulpaV.GannettCo.Inc.Member2024-02-012024-02-290001579684gci:ScottO.SapulpaV.GannettCo.Inc.Membergci:PunitiveDamagesMember2024-02-012024-02-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

_______________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number 001-36097

___________________________

GANNETT CO., INC.
(Exact name of registrant as specified in its charter)

___________________________

Delaware

38-3910250

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

175 Sully's Trail, Suite 203,

Pittsford,

New York

14534-4560

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (585) 598-0030

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.01 per share

GCI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of July 29, 2024, 147,599,699 shares of the registrant's Common Stock were outstanding.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including "Part I, Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views regarding, among other things, our future or ongoing growth, results of operations, performance, business prospects and opportunities, stock repurchases, and our environmental, social and governance goals, and are not statements of historical fact. Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "focus," "goal," "project," "believe(s)," "will," "aim," "would," "could," "can," "may," "seek(s)," "estimate(s)" and similar expressions are intended to identify such forward-looking statements.

Forward-looking statements are based on management's current expectations and beliefs and are subject to a number of known and unknown risks, uncertainties, and other factors that could lead to actual results materially different from those described in the forward-looking statements. We can give no assurance our expectations will be attained. Our actual results, liquidity, and financial condition may differ from the anticipated results, liquidity, and financial condition indicated in the forward-looking statements. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause our actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others, the risks identified by us under the heading "Risk Factors" in this Quarterly Report on Form 10-Q, and under the heading "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission on February 22, 2024, as well as other risks and factors identified from time to time in our subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.

INDEX TO GANNETT CO., INC.

Q2 2024 FORM 10-Q


Item No.		Page
	Part I. Financial Information
1	Financial Statements (unaudited)	2
2	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
3	Quantitative and Qualitative Disclosures About Market Risk	46
4	Controls and Procedures	46

	Part II. Other Information
1	Legal Proceedings	48
1A	Risk Factors	48
2	Unregistered Sales of Equity Securities and Use of Proceeds	48
3	Defaults Upon Senior Securities	48
4	Mine Safety Disclosures	48
5	Other Information	48
6	Exhibits	49
	Signatures	50

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GANNETT CO., INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


In thousands, except share data	June 30, 2024		December 31, 2023
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	98,886	$	100,180
Accounts receivable, net of allowance of $14,514 and $16,338 as of June 30, 2024 and December 31, 2023, respectively	241,649		266,096
Inventories	22,427		26,794
Prepaid expenses	39,426		36,210
Other current assets	15,647		14,957
Total current assets	418,035		444,237
Property, plant and equipment, net of accumulated depreciation of $342,821 and $336,408 as of June 30, 2024 and December 31, 2023, respectively	233,892		239,087
Operating lease assets	157,980		221,733
Goodwill	533,687		533,876
Intangible assets, net	478,697		524,350
Deferred tax assets	40,166		37,125
Pension and other assets	191,029		180,839
Total assets	$	2,053,486	$	2,181,247
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities	$	304,882	$	293,444
Deferred revenue	112,259		120,502
Current portion of long-term debt	60,452		63,752
Operating lease liabilities	41,694		45,763
Other current liabilities	8,361		10,052
Total current liabilities	527,648		533,513
Long-term debt	531,211		564,836
Convertible debt	423,370		416,036
Deferred tax liabilities	—		2,028
Pension and other postretirement benefit obligations	40,391		42,661
Long-term operating lease liabilities	183,137		203,871
Other long-term liabilities	98,459		100,989
Total noncurrent liabilities	1,276,568		1,330,421
Total liabilities	1,804,216		1,863,934
Commitments and contingent liabilities (See Note 11)
Equity
Preferred stock, $0.01 par value per share, 300,000 shares authorized, none of which were issued and outstanding at June 30, 2024 and December 31, 2023	—		—
Common stock, $0.01 par value per share, 2,000,000,000 shares authorized, 158,817,284 shares issued and 147,653,745 shares outstanding at June 30, 2024; 158,554,705 shares issued and 148,939,463 shares outstanding at December 31, 2023	1,588		1,586
Treasury stock, at cost, 11,163,539 shares and 9,615,242 shares at June 30, 2024 and December 31, 2023, respectively	(20,499)		(17,393)
Additional paid-in capital	1,432,682		1,426,325
Accumulated deficit	(1,098,212)		(1,027,192)
Accumulated other comprehensive loss	(65,786)		(65,541)
Total Gannett stockholders' equity	249,773		317,785
Noncontrolling interests	(503)		(472)
Total equity	249,270		317,313
Total liabilities and equity	$	2,053,486	$	2,181,247

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

GANNETT CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share amounts	2024		2023		2024		2023
Digital	$	278,378	$	262,103	$	545,877	$	509,581
Print and commercial	361,462		410,254		729,724		831,693
Total revenues	639,840		672,357		1,275,601		1,341,274
Operating costs	391,474		426,096		793,873		856,284
Selling, general and administrative expenses	183,019		184,127		363,508		364,517
Depreciation and amortization	38,258		39,784		76,556		83,482
Integration and reorganization costs	19,775		7,287		37,656		19,414
Asset impairments	—		1,177		45,989		1,182

Loss (gain) on sale or disposal of assets, net	236		146		788		(17,535)
Other operating expenses	112		229		151		458
Total operating expenses	632,874		658,846		1,318,521		1,307,802
Operating income (loss)	6,966		13,511		(42,920)		33,472
Interest expense	26,270		28,559		52,835		56,889
Loss (gain) on early extinguishment of debt	87		—		(530)		(496)
Non-operating pension income	(3,137)		(2,263)		(6,283)		(4,078)
Equity income in unconsolidated investees, net	(559)		(621)		(374)		(831)
Other non-operating (income) expense, net	(2,609)		(807)		(792)		414
Non-operating expenses	20,052		24,868		44,856		51,898
Loss before income taxes	(13,086)		(11,357)		(87,776)		(18,426)
(Benefit) provision for income taxes	(26,803)		1,333		(16,725)		(15,996)
Net income (loss)	13,717		(12,690)		(71,051)		(2,430)
Net loss attributable to noncontrolling interests	(31)		(13)		(31)		(97)
Net income (loss) attributable to Gannett	$	13,748	$	(12,677)	$	(71,020)	$	(2,333)

Income (loss) per share attributable to Gannett - basic	$	0.10	$	(0.09)	$	(0.50)	$	(0.02)
Income (loss) per share attributable to Gannett - diluted	$	0.09	$	(0.09)	$	(0.50)	$	(0.02)

Other comprehensive income (loss):
Foreign currency translation adjustments	$	(223)	$	5,827	$	(912)	$	12,164
Pension and other postretirement benefit items:
Net actuarial gain (loss)	—		13,968		(538)		25,564
Amortization of net actuarial gain (loss)	232		8		469		12

Amortization of prior service cost	(125)		17		(250)		33
Equity method investments	—		—		116		610
Other	(317)		(2,631)		1,010		(5,542)
Total pension and other postretirement benefit items	(210)		11,362		807		20,677
Other comprehensive (loss) income before tax	(433)		17,189		(105)		32,841
Income tax (benefit) provision related to components of other comprehensive income (loss)	(30)		2,942		140		5,304
Other comprehensive (loss) income, net of tax	(403)		14,247		(245)		27,537
Comprehensive income (loss)	13,314		1,557		(71,296)		25,107
Comprehensive loss attributable to noncontrolling interests	(31)		(13)		(31)		(97)
Comprehensive income (loss) attributable to Gannett	$	13,345	$	1,570	$	(71,265)	$	25,204

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

GANNETT CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six months ended June 30,
In thousands	2024		2023
Operating activities
Net loss	$	(71,051)	$	(2,430)
Adjustments to reconcile net loss to operating cash flows:
Depreciation and amortization	76,556		83,482
Share-based compensation expense	6,338		8,783
Non-cash interest expense	10,513		10,567
Loss (gain) on sale or disposal of assets, net	788		(17,535)

Gain on early extinguishment of debt	(530)		(496)

Asset impairments	45,989		1,182

Pension and other postretirement benefit obligations	(15,399)		(6,792)
Equity income in unconsolidated investees, net	(374)		(831)
Change in other assets and liabilities, net	4,746		(23,144)







Cash provided by operating activities	57,576		52,786
Investing activities

Purchase of property, plant and equipment	(22,725)		(16,448)
Proceeds from sale of real estate and other assets	6,073		31,465
Change in other investing activities	386		(12)
Cash (used for) provided by investing activities	(16,266)		15,005
Financing activities




Repayments of long-term debt	(39,575)		(51,291)



Treasury stock	(3,103)		(2,622)


Changes in other financing activities	(846)		(647)
Cash used for financing activities	(43,524)		(54,560)
Effect of currency exchange rate change on cash	396		98
(Decrease) increase in cash, cash equivalents and restricted cash	(1,818)		13,329
Cash, cash equivalents and restricted cash at beginning of period	110,612		104,804
Cash, cash equivalents and restricted cash at end of period	$	108,794	$	118,133

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

GANNETT CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)


	Three months ended June 30, 2024
	Common stock			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Treasury stock			Non-controlling interest
In thousands	Shares	Amount								Shares	Amount				Total
Balance at March 31, 2024	158,565	$	1,586	$	1,429,137	$	(65,383)	$	(1,111,960)	10,979	$	(19,927)	$	(472)	$	232,981
Net income (loss) attributable to Gannett	—	—		—		—		13,748		—	—		(31)		13,717




Other comprehensive loss, net(a)	—	—		—		(403)		—		—	—		—		(403)
Share-based compensation expense	—	—		3,512		—		—		—	—		—		3,512
Issuance of common stock	252	2		22		—		—		—	—		—		24
Treasury stock	—	—		—		—		—		130	(571)		—		(571)
Restricted share forfeiture	—	—		—		—		—		54	(1)		—		(1)
Other activity	—	—		11		—		—		—	—		—		11
Balance at June 30, 2024	158,817	$	1,588	$	1,432,682	$	(65,786)	$	(1,098,212)	11,163	$	(20,499)	$	(503)	$	249,270


	Three months ended June 30, 2023
	Common stock			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Treasury stock			Non-controlling interest
In thousands	Shares	Amount								Shares	Amount				Total
Balance at March 31, 2023	157,981	$	1,580	$	1,413,397	$	(87,941)	$	(989,057)	8,760	$	(16,883)	$	(453)	$	320,643
Net loss attributable to Gannett	—	—		—		—		(12,677)		—	—		(13)		(12,690)



Other comprehensive income, net(a)	—	—		—		14,247		—		—	—		—		14,247
Share-based compensation expense	—	—		5,047		—		—		—	—		—		5,047
Issuance of common stock	455	4		21		—		—		—	—		—		25

Treasury stock	—	—		—		—		—		167	(483)		—		(483)
Restricted share forfeiture	—	—		—		—		—		384	(4)		—		(4)
Other activity	—	—		112		—		—		—	—		—		112
Balance at June 30, 2023	158,436	$	1,584	$	1,418,577	$	(73,694)	$	(1,001,734)	9,311	$	(17,370)	$	(466)	$	326,897

(a) For the three months ended June 30, 2024 and 2023, Other comprehensive (loss) income is net of an income tax benefit of $30 thousand and an income tax provision of $2.9 million, respectively.

Table of Contents

GANNETT CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)


	Six months ended June 30, 2024
	Common stock			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Treasury stock			Non-controlling interest
In thousands	Shares	Amount								Shares	Amount				Total
Balance at December 31, 2023	158,555	$	1,586	$	1,426,325	$	(65,541)	$	(1,027,192)	9,615	$	(17,393)	$	(472)	$	317,313
Net loss attributable to Gannett	—	—		—		—		(71,020)		—	—		(31)		(71,051)




Other comprehensive loss, net(a)	—	—		—		(245)		—		—	—		—		(245)
Share-based compensation expense	—	—		6,338		—		—		—	—		—		6,338
Issuance of common stock	262	2		47		—		—		—	—		—		49

Treasury stock	—	—		—		—		—		1,281	(3,103)		—		(3,103)
Restricted share forfeiture	—	—		—		—		—		267	(3)		—		(3)
Other activity	—	—		(28)		—		—		—	—		—		(28)
Balance at June 30, 2024	158,817	$	1,588	$	1,432,682	$	(65,786)	$	(1,098,212)	11,163	$	(20,499)	$	(503)	$	249,270


	Six months ended June 30, 2023
	Common stock			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Treasury stock			Non-controlling interest
In thousands	Shares	Amount								Shares	Amount				Total
Balance at December 31, 2022	153,286	$	1,533	$	1,409,578	$	(101,231)	$	(999,401)	7,063	$	(14,737)	$	(369)	$	295,373
Net loss attributable to Gannett	—	—		—		—		(2,333)		—	—		(97)		(2,430)


Restricted share grants	4,682	47		(47)		—		—		—	—		—		—

Other comprehensive income, net(a)	—	—		—		27,537		—		—	—		—		27,537
Share-based compensation expense	—	—		8,783		—		—		—	—		—		8,783
Issuance of common stock	468	4		46		—		—		—	—		—		50

Treasury stock	—	—		—		—		—		1,124	(2,622)		—		(2,622)
Restricted share forfeiture	—	—		—		—		—		1,124	(11)		—		(11)
Other activity	—	—		217		—		—		—	—		—		217
Balance at June 30, 2023	158,436	$	1,584	$	1,418,577	$	(73,694)	$	(1,001,734)	9,311	$	(17,370)	$	(466)	$	326,897

(a) For the six months ended June 30, 2024 and 2023, Other comprehensive (loss) income is net of an income tax provision of $0.1 million and $5.3 million, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — Description of business and basis of presentation

Description of business

Gannett Co., Inc. ("Gannett", "we", "us", "our", or the "Company") is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth focused media and digital marketing solutions company. We endeavor to deliver essential content, marketing solutions, and experiences for curated audiences, advertisers, consumers, and stakeholders by leveraging our diverse teams and suite of products to enrich the local communities and businesses we serve.

Our current portfolio of trusted media brands includes the USA TODAY NETWORK, comprised of the national publication, USA TODAY, and local media organizations in the United States (the "U.S."), and Newsquest, a wholly-owned subsidiary operating in the United Kingdom (the "U.K."). Our digital marketing solutions brand, LocaliQ, uses innovation and software to enable small and medium-sized businesses ("SMBs") to grow, and USA TODAY NETWORK Ventures, our events division, creates impactful consumer engagements, promotions, and races.

Through USA TODAY, our network of local properties, and Newsquest, we deliver high-quality, trusted content with a commitment to balanced, unbiased journalism, where and when consumers want to engage. We have strong relationships with hundreds of thousands of local and national businesses in both our U.S. and U.K. markets due to our large local and national sales forces and a robust advertising and digital marketing solutions product suite. Our strategy prioritizes maximizing the monetization of our audience through the growth of increasingly diverse and highly recurring digital businesses. We deliver value to our customers, advertisers, partners and shareholders with essential content, joyful experiences, and relevant digital solutions.

The Company reports in three segments: Domestic Gannett Media, Newsquest and Digital Marketing Solutions ("DMS"). We also have a Corporate and other category that includes activities not directly attributable to a specific reportable segment and includes broad corporate functions, such as legal, human resources, accounting, analytics, finance, marketing and technology, as well as other general business costs. A full description of our reportable segments is included in Note 12 — Segment reporting.

Basis of presentation

The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The unaudited condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

In the opinion of management, the unaudited condensed consolidated financial statements as of June 30, 2024 include all the assets, liabilities, revenues, expenses, and cash flows of entities which Gannett controls due to ownership of a majority voting interest ("subsidiaries"). In addition, in the opinion of management, the unaudited condensed consolidated financial statements as of June 30, 2024 reflect all necessary adjustments for a fair statement of the results for the interim period. All significant intercompany accounts and transactions have been eliminated in consolidation, and the Company consolidates its subsidiaries.

Use of estimates

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and footnotes thereto. Actual results could differ materially from those estimates.

Significant estimates inherent in the preparation of the unaudited condensed consolidated financial statements include pension and postretirement benefit obligation assumptions, income taxes, goodwill and intangible asset impairment analysis, valuation of property, plant, and equipment and the mark to market of the conversion feature associated with the convertible debt.

Table of Contents

Reclassifications

Certain reclassifications have been made to the prior year unaudited condensed consolidated financial statements to conform to classifications used in the current year. Beginning in the first quarter of 2024, the Company updated the presentation of its revenues to reflect the disaggregation between Digital revenues and Print and commercial revenues. These reclassifications had no impact on net income (loss), stockholders' equity or cash flows as previously reported.

Recent accounting pronouncements not yet adopted

Disclosure improvements

In November 2023, the FASB issued guidance, ASU 2023-07, which will improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 applies to all public entities that are required to report segment information in accordance with ASC 280, "Segment Reporting." The Company will be required to report these enhanced segment disclosures starting in annual periods beginning after December 15, 2023 and requires retrospective application to all prior periods presented in the financial statements. The Company does not expect the adoption of this guidance will have a material impact on the condensed consolidated financial statements and disclosures.

In November 2023, the FASB issued guidance, ASU 2023-09, which enhances annual income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the provisions of the updated guidance and assessing the impact on the condensed consolidated financial statements and disclosures.

NOTE 2 — Revenues

Revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The Company's condensed consolidated statements of operations and comprehensive income (loss) present revenues disaggregated by revenue type. Sales taxes and other usage-based taxes are excluded from revenues.

The following tables present our revenues disaggregated by segment and revenue type:


	Three months ended June 30, 2024
In thousands	Domestic Gannett Media		Newsquest		Digital Marketing Solutions		Corporate and other		Intersegment eliminations		Consolidated
Digital advertising	$	70,922	$	13,543	$	—	$	—	$	—	$	84,465
Digital marketing services	35,967		1,925		123,798		—		(38,377)		123,313
Digital-only subscription	44,622		1,660		—		—		—		46,282
Digital other	20,444		2,616		—		1,258		—		24,318
Digital	171,955		19,744		123,798		1,258		(38,377)		278,378

Print advertising	119,000		19,904		—		—		—		138,904
Print circulation	146,690		16,633		—		—		—		163,323
Commercial and other(a)	54,264		4,971		—		—		—		59,235
Print and commercial	319,954		41,508		—		—		—		361,462

Total revenues(b)	$	491,909	$	61,252	$	123,798	$	1,258	$	(38,377)	$	639,840

(a) For the three months ended June 30, 2024, included in Commercial and other revenues was Commercial printing and delivery revenues of $37.3 million and $2.6 million at the Domestic Gannett Media and Newsquest segments, respectively.

(b) Revenues generated from international operations comprised 11.1% of total revenues for the three months ended June 30, 2024.

Table of Contents


	Three months ended June 30, 2023
In thousands	Domestic Gannett Media		Newsquest		Digital Marketing Solutions		Corporate and other		Intersegment eliminations		Consolidated
Digital advertising	$	69,175	$	12,321	$	—	$	—	$	—	$	81,496
Digital marketing services	35,357		2,301		122,789		—		(37,908)		122,539
Digital-only subscription	36,601		1,255		—		—		—		37,856
Digital other	15,898		2,641		—		1,673		—		20,212
Digital	157,031		18,518		122,789		1,673		(37,908)		262,103

Print advertising	131,311		17,964		—		—		—		149,275
Print circulation	178,264		17,492		—		—		—		195,756
Commercial and other(a)	61,588		3,635		—		—		—		65,223
Print and commercial	371,163		39,091		—		—		—		410,254

Total revenues(b)	$	528,194	$	57,609	$	122,789	$	1,673	$	(37,908)	$	672,357

(a) For the three months ended June 30, 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $45.0 million and $1.9 million at the Domestic Gannett Media and Newsquest segments, respectively.

(b) Revenues generated from international operations comprised 10.0% of total revenues for the three months ended June 30, 2023.


	Six months ended June 30, 2024
In thousands	Domestic Gannett Media		Newsquest		Digital Marketing Solutions		Corporate and other		Intersegment eliminations		Consolidated
Digital advertising	$	141,863	$	27,068	$	—	$	—	$	—	$	168,931
Digital marketing services	72,053		4,013		240,843		—		(77,182)		239,727
Digital-only subscription	86,533		3,228		—		—		—		89,761
Digital other	39,241		5,355		—		2,862		—		47,458
Digital	339,690		39,664		240,843		2,862		(77,182)		545,877

Print advertising	234,619		38,961		—		—		—		273,580
Print circulation	302,936		33,710		—		—		—		336,646
Commercial and other(a)	110,383		9,115		—		—		—		119,498
Print and commercial	647,938		81,786		—		—		—		729,724

Total revenues(b)	$	987,628	$	121,450	$	240,843	$	2,862	$	(77,182)	$	1,275,601

(a) For the six months ended June 30, 2024, included in Commercial and other revenues was Commercial printing and delivery revenues of $77.8 million and $5.1 million at the Domestic Gannett Media and Newsquest segments, respectively.

(b) Revenues generated from international operations comprised 11.1% of total revenues for the six months ended June 30, 2024.

Table of Contents


	Six months ended June 30, 2023
In thousands	Domestic Gannett Media		Newsquest		Digital Marketing Solutions		Corporate and other		Intersegment eliminations		Consolidated
Digital advertising	$	136,849	$	24,857	$	—	$	—	$	—	$	161,706
Digital marketing services	67,422		4,495		235,606		—		(72,301)		235,222
Digital-only subscription	71,279		2,408		—		—		—		73,687
Digital other	30,789		5,106		—		3,071		—		38,966
Digital	306,339		36,866		235,606		3,071		(72,301)		509,581

Print advertising	259,488		37,741		—		—		—		297,229
Print circulation	366,767		34,443		—		—		—		401,210
Commercial and other(a)	125,537		7,717		—		—		—		133,254
Print and commercial	751,792		79,901		—		—		—		831,693

Total revenues(b)	$	1,058,131	$	116,767	$	235,606	$	3,071	$	(72,301)	$	1,341,274

(a) For the six months ended June 30, 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $94.1 million and $3.9 million at the Domestic Gannett Media and Newsquest segments, respectively.

(b) Revenues generated from international operations comprised 10.1% of total revenues for the six months ended June 30, 2023.

Deferred revenues

The Company records deferred revenues when cash payments are received in advance of the Company's performance obligation. The Company's primary source of deferred revenues is from circulation subscriptions paid in advance of the service provided, which represents future delivery of publications (the performance obligation) to subscription customers. The Company expects to recognize the revenue related to unsatisfied performance obligations over the next one to twelve months in accordance with the terms of the subscriptions.

The Company's payment terms vary by the type and location of the customer and the products or services offered. The period between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer. The majority of our subscription customers are billed and pay on monthly terms.

The following table presents the change in the deferred revenues balance:


	Six months ended June 30,
In thousands	2024		2023
Beginning balance	$	120,502	$	153,648

Receipts, net of refunds	544,626		546,494
Revenue recognized	(552,869)		(562,664)
Ending balance	$	112,259	$	137,478

Table of Contents

NOTE 3 — Accounts receivable, net

Receivables are presented net of allowances, which reflect the Company's expected credit losses based on historical experience as well as current and expected economic conditions. The following table presents changes in the allowance for doubtful accounts:


	Six months ended June 30,
In thousands	2024		2023
Beginning balance	$	16,338	$	16,697
Current period provision	1,619		3,305
Write-offs charged against the allowance	(5,503)		(8,993)
Recoveries of amounts previously written-off	2,024		2,045
Other	36		116

Ending balance	$	14,514	$	13,170

For the three and six months ended June 30, 2024, the Company recorded $1.0 million and $1.6 million in bad debt expense, respectively. For the three and six months ended June 30, 2023, the Company recorded $1.9 million and $3.3 million in bad debt expense, respectively. Bad debt expense is included in Selling, general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).

NOTE 4 — Goodwill and intangible assets

Goodwill and intangible assets consisted of the following:


	June 30, 2024						December 31, 2023
In thousands	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Finite-lived intangible assets:
Advertiser relationships	$	445,841	$	257,536	$	188,305	$	446,609	$	236,168	$	210,441
Other customer relationships	100,980		61,573		39,407		101,819		56,601		45,218
Subscriber relationships	250,822		169,549		81,273		251,099		155,528		95,571
Other intangible assets	66,870		63,944		2,926		68,780		62,536		6,244
Sub-total	$	864,513	$	552,602	$	311,911	$	868,307	$	510,833	$	357,474
Indefinite-lived intangible assets:
Mastheads					166,786						166,876
Total intangible assets					$	478,697					$	524,350

Goodwill					$	533,687					$	533,876

The Company performs its annual goodwill and indefinite-lived intangible impairment assessments as of November 30. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred under both ASC 350 "Intangibles - Goodwill and Other" ("ASC 350"), and ASC 360 "Property, Plant and Equipment" ("ASC 360"), which would require interim impairment testing.

As of June 30, 2024, the Company performed a review of potential impairment indicators under both ASC 350 and ASC 360, and it was determined that no indicators of impairment were present.

NOTE 5 — Integration and reorganization costs, and asset impairments

Integration and reorganization costs

Integration and reorganization costs include severance costs as well as other reorganization costs associated with individual restructuring programs, designed primarily to right-size the Company's employee base, consolidate facilities and improve operations. These initiatives impact all the Company's operations and can be influenced by the terms of union contracts. Costs related to these programs, which primarily include severance and other reorganization-related expenses, are accrued when probable and reasonably estimable or at the time of program announcement.

Table of Contents

Severance-related expenses

The Company recorded severance-related expenses by segment as follows:


	Three months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Domestic Gannett Media	$	4,116	$	1,332	$	8,193	$	6,844
Newsquest	243		376		412		976
Digital Marketing Solutions	84		(48)		109		(28)
Corporate and other	(14)		891		969		5,012
Total	$	4,429	$	2,551	$	9,683	$	12,804

A roll-forward of the accrued severance and related expenses included in Accounts payable and accrued liabilities on the condensed consolidated balance sheets for the six months ended June 30, 2024 is as follows:


In thousands	Severance and related expenses
Beginning balance	$	6,928
Restructuring provision included in integration and reorganization costs	9,683
Cash payments	(8,041)
Ending balance	$	8,570

Other reorganization-related expenses

Other reorganization-related costs represent individual restructuring programs, designed primarily to right-size the Company's employee base, consolidate facilities and improve operations. The Company recorded Other reorganization-related costs as follows:


	Three months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Domestic Gannett Media(a)	$	10,577	$	602	$	21,389	$	(861)

Digital Marketing Solutions	803		—		803		—
Corporate and other	3,966		4,134		5,781		7,471
Total	$	15,346	$	4,736	$	27,973	$	6,610

(a) For the three and six months ended June 30, 2024, Other reorganization-related costs at the Domestic Gannett Media segment primarily reflected a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan. In addition, for the six months ended June 30, 2024, Other reorganization-related costs at the Domestic Gannett Media segment also reflected $9.7 million expensed as of the cease-use date related to certain licensed content. For the six months ended June 30, 2023, Other reorganization-related costs at the Domestic Gannett Media segment primarily reflected the reversal of a withdrawal liability related to a multiemployer pension plan of $2.0 million based on the settlement of the withdrawal liability.

Asset impairments

Corporate office relocation

On March 1, 2024, we exited and ceased use of our leased facility in McLean, Virginia and moved our corporate headquarters to our existing office space in New York. We will continue to seek subleases for the leased facility in McLean. As a result of the headquarters relocation, we recorded an impairment charge of approximately $46.0 million during the six months ended June 30, 2024 related to the McLean operating lease right-of-use asset and the associated leasehold improvements. The fair value was measured using a discounted cash flow model based on market rents projected over the remaining lease term.

Table of Contents

NOTE 6 — Debt

The Company's debt consisted of the following:


	June 30, 2024								December 31, 2023
In millions	Principal balance		Unamortized original issue discount		Unamortized deferred financing costs		Carrying value		Principal balance		Unamortized original issue discount		Unamortized deferred financing costs		Carrying value
Senior Secured Term Loan	$	326.1	$	(3.9)	$	(0.9)	$	321.3	$	350.4	$	(5.2)	$	(1.1)	$	344.1
2026 Senior Notes	278.5		(4.6)		(3.5)		270.4		291.6		(5.8)		(4.6)		281.2
2027 Notes	485.3		(60.6)		(1.3)		423.4		485.3		(67.8)		(1.5)		416.0
2024 Notes	—		—		—		—		3.3		—		—		3.3
Total debt	$	1,089.9	$	(69.1)	$	(5.7)	$	1,015.1	$	1,130.6	$	(78.8)	$	(7.2)	$	1,044.6
Less: Current portion of long-term debt	$	(60.5)	$	—	$	—	$	(60.5)	$	(63.8)	$	—	$	—	$	(63.8)
Non-current portion of long-term debt	$	1,029.4	$	(69.1)	$	(5.7)	$	954.6	$	1,066.8	$	(78.8)	$	(7.2)	$	980.8

Senior Secured Term Loan

On October 15, 2021, Gannett Holdings LLC ("Gannett Holdings"), a wholly-owned subsidiary of the Company, entered into the five-year senior secured term loan facility in an original aggregate principal amount of $516.0 million (the "Senior Secured Term Loan") with Citibank N.A., as collateral agent and administrative agent for the lenders. On January 31, 2022, Gannett Holdings entered into an amendment (the "Term Loan Amendment") to the Senior Secured Term Loan to provide for new incremental senior secured term loans (the "Incremental Term Loans") in an aggregate principal amount of $50 million. The Incremental Term Loans have substantially identical terms as the Senior Secured Term Loan and are treated as a single tranche with the Senior Secured Term Loan. The Term Loan Amendment also amended the Senior Secured Term Loan to transition the interest rate base from the London Inter-bank Offered Rate ("LIBOR") to the Adjusted Term Secured Overnight Financing Rate ("Adjusted Term SOFR"). During 2022, Gannett Holdings entered into two separate amendments to the Senior Secured Term Loan to provide for incremental senior secured term loans totaling an aggregate principal amount of $30.0 million (collectively, the "Exchanged Term Loans"). The Exchanged Term Loans have substantially identical terms as the Senior Secured Term Loan and Incremental Term Loans and are treated as a single tranche with the Senior Secured Term Loan and the Incremental Term Loans.

The Senior Secured Term Loan bears interest at a per annum rate equal to the Adjusted Term SOFR (which shall not be less than 0.50% per annum) plus a margin equal to 5.00% or an alternate base rate (which shall not be less than 1.50% per annum) plus a margin equal to 4.00%. Loans under the Senior Secured Term Loan may be prepaid, at the option of Gannett Holdings, at any time without premium. In addition, we are required to repay the Senior Secured Term Loan from time to time with (i) the proceeds of non-ordinary course asset sales and casualty and condemnation events, (ii) the proceeds of indebtedness not permitted under the Senior Secured Term Loan, and (iii) the aggregate amount of cash and cash equivalents on hand at the Company and its restricted subsidiaries in excess of $100 million at the end of each fiscal year of the Company. Subsequent to the amendment effective as of April 8, 2022, the Senior Secured Term Loan is amortized at $15.1 million per quarter (or, if the ratio of debt secured on an equal basis with the Senior Secured Term Loan less unrestricted cash of the Company and its restricted subsidiaries to Consolidated EBITDA (as such terms are defined in the Senior Secured Term Loan) (such ratio, the "First Lien Net Leverage Ratio"), for the most recently ended period of four consecutive fiscal quarters is equal to or less than 1.20 to 1.00, $7.6 million per quarter). All obligations under the Senior Secured Term Loan are secured by all or substantially all of the assets of the Company and the wholly-owned domestic subsidiaries of the Company (the "Senior Secured Term Loan Guarantors"). The obligations of Gannett Holdings under the Senior Secured Term Loan are guaranteed on a senior secured basis by the Company and the Senior Secured Term Loan Guarantors.

The Senior Secured Term Loan contains usual and customary covenants for credit facilities of this type, including a requirement to have minimum unrestricted cash of $30 million as of the last day of each fiscal quarter, and restricts, among other things, our ability to incur debt, grant liens, sell assets, make investments and pay dividends, in each case with customary exceptions, including an exception that permits dividends and repurchases of outstanding junior debt or equity in (i) an amount of up to $25 million per fiscal quarter if the First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 2.00 to 1.00, (ii) an amount of up to $50 million per fiscal quarter if the First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 1.50 to 1.00, and (iii) an unlimited amount if First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 1.00 to 1.00.

Table of Contents

As of June 30, 2024, the Company was in compliance with all of the covenants and obligations under the Senior Secured Term Loan.

As of June 30, 2024 and December 31, 2023, the Senior Secured Term Loan was recorded at carrying value, which approximated fair value, in the condensed consolidated balance sheets and was classified as Level 2.

During the six months ended June 30, 2024, the Company received a waiver from certain lenders of the Senior Secured Term Loan that reduced the scheduled quarterly amortization payments payable to those lenders by approximately $12.0 million for the six months ended June 30, 2024 (the "2024 Waiver"), and which was the amount used by the Company to repurchase a portion of its 2026 Senior Notes (defined below). For the three and six months ended June 30, 2024, the Company made payments of $21.0 million and $24.3 million, respectively, on our Senior Secured Term Loan (net of the 2024 Waiver for the six months ended June 30, 2024), including quarterly amortization payments, which were classified as financing activities in the condensed consolidated statements of cash flows.

For the three and six months ended June 30, 2024, the Company recognized interest expense of $9.0 million and $18.3 million, respectively, and paid cash interest of $9.0 million and $18.3 million, respectively. For the three and six months ended June 30, 2023, the Company recognized interest expense of $10.4 million and $20.7 million, respectively, and paid cash interest of $10.4 million and $20.8 million, respectively. For the three and six months ended June 30, 2024, the Company recognized amortization of original issue discount of $0.5 million and $1.1 million, respectively, and amortization of deferred financing costs of $0.1 million and $0.2 million, respectively. For the three and six months ended June 30, 2023, the Company recognized amortization of original issue discount of $0.7 million and $1.5 million, respectively, and amortization of deferred financing costs of $0.2 million and $0.3 million, respectively. Additionally, for both the three and six months ended June 30, 2024, the Company recognized losses on the early extinguishment of debt, which were immaterial, related to the write-off of original issue discount and deferred financing costs as a result of prepayments on the Senior Secured Term Loan. For the three months ended June 30, 2023, there was no gain or loss on the early extinguishment of debt, and for the six months ended June 30, 2023, the Company recognized losses on the early extinguishment of debt of $0.4 million related to the write-off of original issue discount and deferred financing costs as a result of prepayments on the Senior Secured Term Loan. As of June 30, 2024, the effective interest rate for the Senior Secured Term Loan was 11.2%.

Senior Secured Notes due 2026

On October 15, 2021, Gannett Holdings completed a private offering of $400 million aggregate principal amount of 6.00% first lien notes due November 1, 2026 (the "2026 Senior Notes"). The 2026 Senior Notes were issued pursuant to an indenture, dated October 15, 2021 (the "2026 Senior Notes Indenture") among Gannett Holdings, the Company, the guarantors from time to time party thereto (the "2026 Senior Notes Guarantors"), U.S. Bank National Association, as trustee, and U.S. Bank National Association, as collateral agent, registrar, paying agent and authenticating agent. During 2022, the Company exchanged an aggregate principal amount equal to $30.0 million of the 2026 Senior Notes for $30.0 million of the Exchanged Term Loans.

Interest on the 2026 Senior Notes is payable semi-annually in arrears, beginning on May 1, 2022. The 2026 Senior Notes mature on November 1, 2026, unless redeemed or repurchased earlier pursuant to the 2026 Senior Notes Indenture. The 2026 Senior Notes may be redeemed at the option of Gannett Holdings, in whole or in part, at any time and from time to time after November 1, 2023, at the redemption prices set forth in the 2026 Senior Notes Indenture. If certain changes of control with respect to Gannett Holdings or the Company occur, Gannett Holdings must offer to purchase the 2026 Senior Notes at a purchase price in cash equal to 101% of the principal amount thereof on the date of purchase, plus accrued and unpaid interest to, but excluding, the date of purchase.

The 2026 Senior Notes are unconditionally guaranteed, jointly and severally, on a senior secured basis by the 2026 Senior Notes Guarantors. The 2026 Senior Notes and such guarantees are secured on a first-priority basis by the collateral, consisting of substantially all of the assets of Gannett Holdings and the 2026 Senior Notes Guarantors, subject to certain intercreditor arrangements.

The 2026 Senior Notes Indenture limits the Company and its restricted subsidiaries' ability to, among other things, make investments, loans, advances, guarantees and acquisitions; incur or guarantee additional debt and issue certain disqualified equity interests and preferred stock; make certain restricted payments, including a limit on dividends on equity securities or payments to redeem, repurchase or retire equity securities or other indebtedness; dispose of assets; create liens on assets to secure debt; engage in transactions with affiliates; enter into certain restrictive agreements; and consolidate, merge, sell or otherwise dispose of all or substantially all of their or the 2026 Senior Notes Guarantor's assets. These covenants are subject to a number of limitations and exceptions. The 2026 Senior Notes Indenture also contains customary events of default.

Table of Contents

As of June 30, 2024 and December 31, 2023, the 2026 Senior Notes were recorded at carrying value in the condensed consolidated balance sheets, which approximated fair value. The 2026 Senior Notes were classified as Level 2, and based on unadjusted quoted prices in the active market obtained from third-party pricing services, the Company determined that the estimated fair value of the 2026 Senior Notes was $265.3 million and $256.6 million as of June 30, 2024 and December 31, 2023, respectively, and was primarily affected by fluctuations in market interest rates.

In March 2024, the Company entered into a privately negotiated agreement with certain holders of our 2026 Senior Notes, and for the six months ended June 30, 2024, repurchased $13.0 million of principal of our outstanding 2026 Senior Notes at a discount to par value. In connection with the repurchase of our 2026 Senior Notes in March 2024, the Company received the 2024 Waiver from certain lenders of the Senior Secured Term Loan, which was used to reduce the scheduled quarterly amortization payments payable to those lenders by approximately $12.0 million. As a result of this repurchase of our 2026 Senior Notes, the Company recognized a gain on the early extinguishment of debt of approximately $0.6 million during the six months ended June 30, 2024, which included the write-off of unamortized original issue discount and deferred financing costs. Additionally, for the six months ended June 30, 2023, the Company recognized a gain on the early extinguishment of debt of approximately $0.9 million, which included the write-off of unamortized original issue discount and deferred financing costs.

The unamortized original issue discount and deferred financing costs will be amortized over the remaining contractual life of the 2026 Senior Notes using the effective interest method. For the three and six months ended June 30, 2024, the Company recognized interest expense of $4.2 million and $8.6 million, respectively, and paid cash interest of $8.4 million and $8.7 million, respectively. For the three and six months ended June 30, 2023, the Company recognized interest expense of $5.1 million and $10.1 million, respectively, and paid cash interest of $10.2 million and $10.3 million, respectively. For the three and six months ended June 30, 2024, the Company recognized amortization of original issue discount of $0.5 million and $1.0 million, respectively, and amortization of deferred financing costs of $0.4 million and $0.8 million, respectively. For the three and six months ended June 30, 2023, the Company recognized amortization of original issue discount of $0.6 million and $1.2 million, respectively, and amortization of deferred financing costs of $0.5 million and $1.0 million, respectively. As of June 30, 2024, the effective interest rate on the 2026 Senior Notes was 7.3%.

Senior Secured Convertible Notes due 2027

The $497.1 million in aggregate principal amount of 6.0% Senior Secured Convertible Notes due 2027 (the "2027 Notes") were issued pursuant to an Indenture dated as of November 17, 2020, as amended by the First Supplemental Indenture dated as of December 21, 2020 and the Second Supplemental Indenture dated as of February 9, 2021 (collectively, the "2027 Notes Indenture"), between the Company and U.S. Bank National Association, as trustee.

In connection with the issuance of the 2027 Notes, the Company entered into an Investor Agreement (the "Investor Agreement") with the holders of the 2027 Notes (the "Holders") establishing certain terms and conditions concerning the rights and restrictions on the Holders with respect to the Holders' ownership of the 2027 Notes. The Company also entered into an amendment to the Registration Rights Agreement dated November 19, 2019, between the Company and FIG LLC.

Interest on the 2027 Notes is payable semi-annually in arrears. The 2027 Notes mature on December 1, 2027, unless earlier repurchased or converted. The 2027 Notes may be converted at any time by the holders into cash, shares of the Company's common stock, par value $0.01 per share (the "Common Stock") or any combination of cash and Common Stock, at the Company's election. The initial conversion rate is 200 shares of Common Stock per $1,000 principal amount of the 2027 Notes, which is equal to a conversion price of $5.00 per share of Common Stock (the "Conversion Price").

The conversion rate is subject to customary adjustment provisions as provided in the 2027 Notes Indenture. In addition, the conversion rate will be subject to adjustment in the event of any issuance or sale of Common Stock (or securities convertible into Common Stock) at a price equal to or less than the Conversion Price in order to ensure that following such issuance or sale, the 2027 Notes would be convertible into approximately 42% (adjusted for repurchases and certain other events that reduce the outstanding amount of the 2027 Notes) of the Common Stock after giving effect to such issuance or sale (assuming the initial principal amount of the 2027 Notes remains outstanding). After giving effect to the repurchase of $11.8 million in aggregate principal amount of outstanding 2027 Notes during the year ended December 31, 2021, such percentage was approximately 41%.

Upon the occurrence of a "Make-Whole Fundamental Change" (as defined in the 2027 Notes Indenture), the Company will in certain circumstances increase the conversion rate for a specified period of time. If a "Fundamental Change" (as defined in the 2027 Notes Indenture) occurs, the Company will be required to offer to repurchase the 2027 Notes at a repurchase price of 110% of the principal amount thereof.

Table of Contents

Holders of the 2027 Notes will have the right to put up to approximately $100 million of the 2027 Notes at par on or after the date that is 91 days after the maturity date of the Senior Secured Term Loan.

Under the 2027 Notes Indenture, the Company can only pay cash dividends up to an agreed-upon amount, provided the ratio of consolidated debt to EBITDA (as such terms are defined in the 2027 Notes Indenture) does not exceed a specified ratio. In addition, the 2027 Notes Indenture provides that, at any time that the Company's Total Gross Leverage Ratio (as defined in the 2027 Notes Indenture) exceeds 1.5 and the Company approves the declaration of a dividend, the Company must offer to purchase a principal amount of 2027 Notes equal to the proposed amount of the dividend.

Until the four-year anniversary of the issuance date, the Company will have the right to redeem for cash up to approximately $99.4 million of the 2027 Notes at a redemption price of 130% of the principal amount thereof, with such amount reduced ratably by any principal amount of 2027 Notes that has been converted by the holders or redeemed or purchased by the Company.

The 2027 Notes are guaranteed by Gannett Holdings and any subsidiaries of the Company that guarantee the Senior Secured Term Loan. The 2027 Notes are secured by the same collateral that secures the Senior Secured Term Loan. The 2027 Notes rank as senior secured debt of the Company and are secured by a second priority lien on the same collateral package that secured the indebtedness incurred in connection with the Senior Secured Term Loan.

The 2027 Notes Indenture includes affirmative and negative covenants, including limitations on liens, indebtedness, dispositions, loans, advances and investors, sale and leaseback transactions, restricted payments, transactions with affiliates, restrictions on dividends and other payment restrictions affecting restricted subsidiaries, negative pledges, and modifications to certain agreements. The 2027 Notes Indenture also requires that the Company maintain, as of the last day of each fiscal quarter, at least $30.0 million of Qualified Cash (as defined in the 2027 Notes Indenture). The 2027 Notes Indenture includes customary events of default.

The 2027 Notes have two components: (i) a debt component, and (ii) an equity component. As of June 30, 2024 and December 31, 2023, the debt component of the 2027 Notes was recorded at carrying value in the condensed consolidated balance sheets. The carrying value of the 2027 Notes reflected the balance of the unamortized discount related to the value of the conversion feature assessed at inception. As of June 30, 2024, the carrying value of the 2027 Notes did not approximate fair value. The 2027 Notes were classified as Level 2, and based on unadjusted quoted prices in the active market obtained from third-party pricing services, the Company determined that the estimated fair value of the 2027 Notes was $521.9 million and $395.6 million as of June 30, 2024 and December 31, 2023, respectively, and was primarily affected by fluctuations in market interest rates and the price of the Company's Common Stock. The fair value of the equity component was classified as Level 3 because it was measured at fair value using a binomial lattice model using assumptions based on market information and historical data, and significant unobservable inputs. As of June 30, 2024 and December 31, 2023, the amount of the conversion feature recorded in Additional paid-in capital was $279.6 million.

For the three and six months ended June 30, 2024, the Company recognized interest expense of $7.3 million and $14.5 million, respectively, and paid cash interest of $14.6 million for both the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, the Company recognized interest expense of $7.3 million and $14.5 million, respectively, and paid cash interest of $14.6 million for both the three and six months ended June 30, 2023. In addition, during the three and six months ended June 30, 2024, the Company recognized amortization of the original issue discount of $3.6 million and $7.2 million, respectively, and an immaterial amount of amortization of deferred financing costs. For the three and six months ended June 30, 2023, the Company recognized amortization of original issue discount of $3.3 million and $6.5 million, respectively, and an immaterial amount of amortization of deferred financing costs. As of June 30, 2024, the effective interest rate on the liability component of the 2027 Notes was 10.5%.

For the six months ended June 30, 2024, no shares were issued upon conversion, exercise, or satisfaction of the required conditions. Refer to Note 10 — Supplemental equity and other information for details on the impact of the 2027 Notes to diluted earnings per share under the if-converted method.

Senior Convertible Notes due 2024

The $3.3 million principal value of the remaining 4.75% convertible senior notes was repaid on April 15, 2024 (the "2024 Notes").

Table of Contents

As of December 31, 2023, the 2024 Notes were reported within the Current portion of long-term debt and were recorded at carrying value, which approximated fair value, in the condensed consolidated balance sheet and were classified as Level 2.

NOTE 7 — Pensions and other postretirement benefit plans

We, along with our subsidiaries, sponsor various defined benefit retirement plans, including plans established under collective bargaining agreements. Our retirement plans include the Gannett Retirement Plan (the "GR Plan"), the Newsquest and Romanes Pension Schemes in the U.K., and other defined benefit and defined contribution plans. We also provide health care and life insurance benefits to certain retired employees who meet age and service requirements.

Retirement plan costs include the following components:


	Pension benefits				Postretirement benefits
	Three months ended June 30,				Three months ended June 30,
In thousands	2024		2023		2024		2023
Operating expenses:
Service cost - benefits earned during the period	$	289	$	346	$	8	$	10
Non-operating expenses:
Interest cost on benefit obligations	20,276		20,894		530		632
Expected return on plan assets	(24,050)		(23,814)		—		—
Amortization of prior service cost (benefit)	17		17		(142)		—
Amortization of actuarial cost (benefit)	710		544		(478)		(536)

Total non-operating (benefit) expense	$	(3,047)	$	(2,359)	$	(90)	$	96
Total (benefit) expense for retirement plans	$	(2,758)	$	(2,013)	$	(82)	$	106


	Pension benefits				Postretirement benefits
	Six months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Operating expenses:
Service cost - benefits earned during the period	$	578	$	670	$	17	$	20
Non-operating expenses:
Interest cost on benefit obligations	40,591		42,095		1,060		1,264
Expected return on plan assets	(48,153)		(47,482)		—		—
Amortization of prior service cost (benefit)	34		33		(284)		—
Amortization of actuarial cost (benefit)	1,425		1,084		(956)		(1,072)

Total non-operating (benefit) expense	$	(6,103)	$	(4,270)	$	(180)	$	192
Total (benefit) expense for retirement plans	$	(5,525)	$	(3,600)	$	(163)	$	212

Contributions

We are contractually obligated to contribute to our pension and postretirement benefit plans. During the six months ended June 30, 2024, we contributed $7.0 million and $2.7 million to our pension and other postretirement plans, respectively. Beginning with the quarter ended December 31, 2022, and ending with the quarter ending September 30, 2024, the GR Plan's appointed actuary has and will certify the GR Plan's funded status for each quarter (the "Quarterly Certification") in accordance with U.S. GAAP. If the GR Plan is less than 100% funded, the Company will make a $1.0 million contribution to the GR Plan no later than 60 days following the receipt of the Quarterly Certification, provided, however, that the Company's obligation to make additional contractual contributions will terminate the earlier of (a) the day following the date that a contractual contribution would be due for the quarter ending September 30, 2024, and (b) the date the Company has made a total of $5.0 million of contractual contributions subsequent to June 30, 2022. As of June 30, 2024, the GR Plan was more than 100% funded.

NOTE 8 — Fair value measurement

In accordance with ASC 820, "Fair Value Measurement," fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes between assumptions based on market data (observable inputs) and the Company's own assumptions (unobservable inputs).

Table of Contents

Level 1 refers to fair values determined based on quoted prices in active markets for identical assets or liabilities, Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs.

As of June 30, 2024 and December 31, 2023, assets and liabilities recorded at fair value and measured on a recurring basis primarily consist of pension plan assets. As permitted by U.S. GAAP, we use net asset values ("NAV") as a practical expedient to determine the fair value of certain investments. These investments measured at NAV have not been classified in the fair value hierarchy.

The Company's debt is recorded on the condensed consolidated balance sheets at carrying value. Refer to Note 6 — Debt for additional discussion regarding fair value of the Company's debt instruments.

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Assets held for sale (Level 3), which are recorded in Other current assets on the condensed consolidated balance sheets, are measured on a nonrecurring basis and are evaluated using executed purchase agreements, letters of intent or third-party valuation analyses when certain circumstances arise.

The Company performs its annual goodwill and indefinite-lived intangible impairment assessment during the fourth quarter of the year. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 measurements. Refer to Note 4 — Goodwill and intangible assets for additional discussion regarding the annual impairment assessment.

NOTE 9 — Income taxes

The following table outlines our pre-tax net loss and income tax amounts:


	Three months ended June 30,						Six months ended June 30,
In thousands	2024			2023			2024			2023
Loss before income taxes	$	(13,086)		$	(11,357)		$	(87,776)		$	(18,426)
(Benefit) provision for income taxes	(26,803)			1,333			(16,725)			(15,996)
Effective tax rate	204.8		%	(11.7)		%	19.1		%	86.8		%

The (benefit) provision for income taxes is calculated by applying the projected annual effective tax rate for the year to the current period income or loss before tax plus the tax effect of any significant or unusual items (discrete events), and changes in tax laws.

The benefit for income taxes for the three months ended June 30, 2024, was mainly driven by the release of uncertain tax position reserves related to an Internal Revenue Service ("IRS") audit in the second quarter of 2024, the release of foreign valuation allowances and the pre-tax book loss. The benefit was calculated using an estimated annual effective tax rate of negative 6.2%. The estimated annual effective tax rate before discrete items is principally impacted by valuation allowances on non-deductible interest expense carryforwards, the global intangible low-taxed income inclusion, and foreign tax expense, partially offset by the benefit of U.S. pre-tax book loss. The estimated annual effective tax rate is based on the projected tax expense for the full year.

The benefit for income taxes for the six months ended June 30, 2024, was mainly driven by the release of uncertain tax position reserves related to an IRS audit in the second quarter of 2024, the release of foreign valuation allowances and the pre-tax book loss.

The total amount of unrecognized tax benefits that, if recognized, may impact the effective tax rate was approximately $42.1 million and $52.6 million as of June 30, 2024 and December 31, 2023, respectively. The Company recognizes interest and penalties related to unrecognized tax benefit as a component of income tax expense. During the three and six months ended June 30, 2024, the Company released approximately $11.1 million of the uncertain tax position reserves and approximately $4.7 million of interest and penalties related to an IRS audit in the second quarter of 2024. As of June 30, 2024 and December 31, 2023, the amount of accrued interest and penalties payable related to unrecognized tax benefits was $0.1 million and $4.6 million, respectively.

Table of Contents

The provision for income taxes for the three months ended June 30, 2023, was mainly driven by a decrease in the estimated annual effective tax rate applied to the full year resulting from an increase in the net income before tax projections used in the second quarter of 2023, the change in valuation allowances on non-deductible U.S. interest expense carryforwards, and the global intangible low-taxed income inclusion. The provision was calculated using an estimated annual effective tax rate of 110.0%.

The benefit for income taxes for the six months ended June 30, 2023, was mainly driven by the tax benefit of the pre-tax book loss, the change in valuation allowances on non-deductible U.S. interest expense carryforwards, and the global intangible low-taxed income inclusion.

NOTE 10 — Supplemental equity and other information

Income (loss) per share

The following table sets forth the information to compute basic and diluted income (loss) per share:


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share data	2024		2023		2024		2023
Net income (loss) attributable to Gannett	$	13,748	$	(12,677)	$	(71,020)	$	(2,333)
Interest adjustment to Net income (loss) attributable to Gannett related to assumed conversions of the 2027 Notes, net of taxes	8,266		—		—		—
Net income (loss) attributable to Gannett for diluted earnings per share	$	22,014	$	(12,677)	$	(71,020)	$	(2,333)

Basic weighted average shares outstanding	142,827		139,805		141,809		138,873
Effect of dilutive securities:
Restricted stock grants(a)	1,596		—		—		—
2027 Notes	97,057		—		—		—
Diluted weighted average shares outstanding	241,480		139,805		141,809		138,873

Income (loss) per share attributable to Gannett - basic	$	0.10	$	(0.09)	$	(0.50)	$	(0.02)
Income (loss) per share attributable to Gannett - diluted	$	0.09	$	(0.09)	$	(0.50)	$	(0.02)

(a) Includes restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance stock units ("PSUs").

The Company excluded the following securities from the computation of diluted income (loss) per share because their effect would have been antidilutive:


	Three months ended June 30,		Six months ended June 30,
In thousands	2024	2023	2024	2023
Warrants(a)	—	845	—	845
Stock options	6,068	6,068	6,068	6,068
Restricted stock grants(b)	1,258	8,937	4,651	8,937
2027 Notes(c)	—	97,057	97,057	97,057

(a)The warrants expired on November 26, 2023.

(b)Includes RSAs, RSUs and PSUs.

(c)Represents the total number of shares that would be convertible for the six months ended June 30, 2024 and the three and six months ended June 30, 2023 as stipulated in the 2027 Notes Indenture.

The 2027 Notes may be converted at any time by the holders into cash, shares of the Company's Common Stock or any combination of cash and Common Stock, at the Company's election. Conversion of all of the 2027 Notes into Common Stock (assuming the maximum increase in the conversion rate as a result of a Make-Whole Fundamental Change but no other adjustments to the conversion rate), would result in the issuance of an aggregate of 287.2 million shares of Common Stock. The Company has excluded approximately 190.1 million shares from the loss per share calculation, representing the difference between the total number of shares that would be convertible at June 30, 2024 and the total number of shares issuable assuming the maximum increase in the conversion rate.

Table of Contents

Share-based compensation

Share-based compensation expense was $3.5 million and $6.3 million for the three and six months ended June 30, 2024, respectively, and $5.0 million and $8.8 million for the three and six months ended June 30, 2023, respectively, and is included in Selling, general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).

The total compensation cost not yet recognized related to non-vested awards as of June 30, 2024 was $10.2 million, and is expected to be recognized over a weighted-average period of 1.2 years through September 2025.

Equity awards

There were approximately 0.3 million RSAs granted during the three and six months ended June 30, 2024.

Cash awards

The Company grants certain employees either long-term cash awards ("LTCAs") or cash performance units ("CPUs"). During 2023, our LTCAs and CPUs were granted during the first quarter, and in the future we anticipate the majority of our LTCAs and CPUs to be granted in the third quarter of our fiscal year. CPUs generally vest and pay out in cash on the third anniversary of the grant date based upon the achievement of threshold goals depending on actual performance against financial objectives over a three-year period. LTCAs generally vest and pay out in cash on the first, second and third anniversaries of the date of grant. As of June 30, 2024, there was approximately $7.5 million of unrecognized compensation expense related to cash awards.

Preferred stock

The Company has authorized 300,000 shares of preferred stock, par value $0.01 per share, issuable in one or more series designated by the Company's Board of Directors. There were no issuances of preferred stock during the six months ended June 30, 2024.

Stock repurchase program

On February 1, 2022, the Company's Board of Directors authorized the repurchase of up to $100 million (the "Stock Repurchase Program") of the Company's Common Stock. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. The amount and timing of the purchases, if any, will depend on a number of factors, including, but not limited to, the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The Stock Repurchase Program may be suspended or discontinued at any time. Further, future repurchases under our Stock Repurchase Program may be subject to various conditions under the terms of our various debt instruments and agreements, unless an exception is available or we obtain a waiver or similar relief.

During the six months ended June 30, 2024, the Company did not repurchase any shares of Common Stock under the Stock Repurchase Program. As of June 30, 2024, the remaining authorized amount under the Stock Repurchase Program was approximately $96.9 million.

Table of Contents

Accumulated other comprehensive loss

The following tables summarize the components of, and the changes in, Accumulated other comprehensive loss, net of tax:


	Six months ended June 30, 2024						Six months ended June 30, 2023
In thousands	Pension and postretirement benefit plans		Foreign currency translation		Total		Pension and postretirement benefit plans		Foreign currency translation		Total
Beginning balance	$	(64,344)	$	(1,197)	$	(65,541)	$	(86,351)	$	(14,880)	$	(101,231)
Other comprehensive income (loss) before reclassifications, net of taxes	516		(912)		(396)		15,342		12,164		27,506
Amounts reclassified from accumulated other comprehensive income(a)(b)	151		—		151		31		—		31
Net current period other comprehensive income (loss), net of tax	667		(912)		(245)		15,373		12,164		27,537
Ending balance	$	(63,677)	$	(2,109)	$	(65,786)	$	(70,978)	$	(2,716)	$	(73,694)

(a)Amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic benefit cost. See Note 7 — Pensions and other postretirement benefit plans.

(b)Amounts reclassified from accumulated other comprehensive income are recorded net of tax impacts of $68 thousand and $14 thousand for the six months ended June 30, 2024 and 2023, respectively.

NOTE 11 — Commitments, contingencies, and other matters

Legal proceedings

The Company is and may become involved from time to time in legal proceedings in the ordinary course of its business, including, but not limited to, matters such as libel, invasion of privacy, intellectual property infringement, wrongful termination actions, complaints alleging employment discrimination, and regulatory investigations and inquiries. In addition, the Company is involved from time to time in governmental and administrative proceedings concerning employment, labor, environmental, and other claims. Insurance coverage mitigates potential loss for certain of these matters. Historically, such claims and proceedings have not had a material adverse effect on the Company's consolidated results of operations or financial position.

We are also defendants in judicial and administrative proceedings involving matters incidental to our business. Although the Company is unable to predict with certainty the eventual outcome of any litigation, regulatory investigation or inquiry, in the opinion of management, the Company does not expect its current and any threatened legal proceedings to have a material adverse effect on the Company's business, financial position or consolidated results of operations. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on the Company's financial results.

On June 20, 2023, the Company filed a civil action against Google LLC and Alphabet Inc. (together, "Google") in the U.S. District Court in the Southern District of New York seeking injunctive relief and damages for the anticompetitive monopolization of advertising technology markets and for deceptive commercial practices. The Company's complaint details more than a dozen anticompetitive and deceptive acts that the Company believes demonstrate Google's unfair control and manipulation of all sides of each online advertising transaction. The Company intends to vigorously pursue this action. However, at this stage, the Company is unable to predict the outcome or impact on its business and financial results. The Company is accounting for this matter as a gain contingency, and will record any such gain in future periods, if and when the contingency is resolved, in accordance with ASC 450 "Contingencies." We do not expect pursuing this lawsuit to be a significant cost to us; however, the Company has and plans to continue to engage certain experts to participate in this matter. The cost of those experts will be expensed as incurred and is not expected to be material.

The Company was a defendant in a lawsuit titled Scott O. Sapulpa ("Plaintiff") v. Gannett Co., Inc. in the District Court in the State of Oklahoma. In February 2024, a jury found for the Plaintiff and awarded compensatory damages of $5 million and $20 million in punitive damages. While we cannot predict with certainty the ultimate outcome of this action, the Company filed an appeal of the case in March 2024. We are currently unable to estimate a range of reasonably possible loss; however, we believe that damages, if any, would be covered by the Company's insurance policies. As a result, we believe the outcome will not have a material impact on the Company's condensed consolidated financial statements.

Table of Contents

NOTE 12 — Segment reporting

We define our reportable segments based on the way the Chief Operating Decision Maker ("CODM"), which is our Chief Executive Officer, manages the operations for purposes of allocating resources and assessing performance. Our reportable segments include the following:

•Domestic Gannett Media is comprised of our portfolio of domestic local, regional, and national newspaper publishers. The results of this segment include Digital revenues mainly derived from digital advertising offerings such as classified advertisements and display advertisements run on our platforms as well as third-party sites, digital marketing services delivered by our DMS segment, digital distribution of our publications and digital content syndication and affiliate and partnership revenues and Print and commercial revenues mainly derived from the sale of local, national, and classified print advertising products, the sale of both home delivery and single copies of our publications, as well as commercial printing and distribution arrangements, and revenues from our events business.

•Newsquest is comprised of our portfolio of international newspaper publishers. The results of this segment include Digital revenues mainly derived from digital advertising offerings such as classified advertisements and display advertisements run on our platforms as well as third-party sites, digital marketing services delivered by our DMS segment, digital distribution of our publications and digital syndication revenues and Print and commercial revenues mainly derived from the sale of local, classified, and national advertising as well as niche publications, the sale of both home delivery and single copies of our publications, as well as commercial printing.

•Digital Marketing Solutions is comprised of our digital marketing services companies under the brand LocaliQ. The results of this segment include Digital revenues derived from digital marketing services generated through multiple services, including search advertising, display advertising, search optimization, social media, website development, web presence products, customer relationship management, and software-as-a-service solutions.

In addition to the reportable segments above, we have a Corporate and other category that includes activities not directly attributable to a specific reportable segment. This category primarily consists of broad corporate functions, including legal, human resources, accounting, analytics, finance, marketing and technology, as well as other general business costs.

In the ordinary course of business, our reportable segments enter into transactions with one another. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues and expenses recognized by the segment that is the counterparty to the transaction are eliminated in consolidation and do not affect consolidated results.

The CODM uses Adjusted EBITDA to evaluate the performance of the segments and allocate resources. Adjusted EBITDA is a non-GAAP financial performance measure we believe offers a useful view of the overall operation of our businesses and may be different than similarly-titled measures used by other companies. We define Adjusted EBITDA as Net income (loss) attributable to Gannett before (1) Income tax expense (benefit), (2) Interest expense, (3) Gains or losses on the early extinguishment of debt, (4) Non-operating pension income, (5) Loss on convertible notes derivative, (6) Depreciation and amortization, (7) Integration and reorganization costs, (8) Third-party debt expenses and acquisition costs, (9) Asset impairments, (10) Goodwill and intangible impairments, (11) Gains or losses on the sale or disposal of assets, (12) Share-based compensation, (13) Other non-operating (income) expense, net, and (14) Non-recurring items.

Management considers Adjusted EBITDA to be an important metric to evaluate and compare the ongoing operating performance of our segments on a consistent basis across reporting periods as it eliminates the effect of items that we do not believe are indicative of each segment's core operating performance.

Table of Contents


	Three months ended June 30,				Six months ended June 30,
In thousands	2024		2023		2024		2023
Revenues:
Domestic Gannett Media	$	491,909	$	528,194	$	987,628	$	1,058,131
Newsquest	61,252		57,609		121,450		116,767
Digital Marketing Solutions	123,798		122,789		240,843		235,606
Corporate and other	1,258		1,673		2,862		3,071
Intersegment Eliminations	(38,377)		(37,908)		(77,182)		(72,301)
Total revenues	639,840		672,357		1,275,601		1,341,274
Adjusted EBITDA:
Domestic Gannett Media	52,929		53,377		97,409		97,794
Newsquest	14,138		12,442		28,301		25,288
Digital Marketing Solutions	11,773		15,470		20,552		27,153
Corporate and other	(4,278)		(10,138)		(14,111)		(16,182)
Net loss attributable to noncontrolling interests	31		13		31		97
Interest expense	26,270		28,559		52,835		56,889
Loss (gain) on early extinguishment of debt	87		—		(530)		(496)
Non-operating pension income	(3,137)		(2,263)		(6,283)		(4,078)
Depreciation and amortization	38,258		39,784		76,556		83,482
Integration and reorganization costs	19,775		7,287		37,656		19,414
Third-party debt expenses and acquisition costs(a)	248		229		426		458
Asset impairments	—		1,177		45,989		1,182

Loss (gain) on sale or disposal of assets, net	236		146		788		(17,535)
Share-based compensation expense	3,512		5,047		6,338		8,783
Other non-operating (income) expense, net	(2,609)		(807)		(792)		414
Non-recurring items	4,977		3,336		6,913		3,869
Loss before income taxes	(13,086)		(11,357)		(87,776)		(18,426)
(Benefit) provision for income taxes	(26,803)		1,333		(16,725)		(15,996)
Net income (loss)	13,717		(12,690)		(71,051)		(2,430)
Net loss attributable to noncontrolling interests	(31)		(13)		(31)		(97)
Net income (loss) attributable to Gannett	$	13,748	$	(12,677)	$	(71,020)	$	(2,333)

(a)Third-party debt expenses and acquisition costs are included in Other operating expenses on the condensed consolidated statements of operations and comprehensive income (loss).

Asset information by segment is not a key measure of performance used by the CODM function. Accordingly, we have not disclosed asset information by segment. Additionally, equity income in unconsolidated investees, net, interest expense, other non-operating items, net, and provision for income taxes, as reported in the condensed consolidated financial statements, are not part of operating income and are primarily recorded at the corporate level.

NOTE 13 — Other supplemental information

Cash and cash equivalents, including restricted cash

Cash equivalents represent highly liquid certificates of deposit which have original maturities of three months or less. Restricted cash is held as cash collateral for certain business operations. Restricted cash primarily consists of funding for letters of credit, cash held in an irrevocable grantor trust for our deferred compensation plans and cash held with banking institutions for insurance.

The following table presents a reconciliation of cash, cash equivalents and restricted cash:


	June 30,
In thousands	2024		2023
Cash and cash equivalents	$	98,886	$	106,633
Restricted cash included in other current assets	242		998
Restricted cash included in pension and other assets	9,666		10,502
Total cash, cash equivalents and restricted cash	$	108,794	$	118,133

Table of Contents

Supplemental cash flow information

The following table presents supplemental cash flow information, including non-cash investing and financing activities:


	Six months ended June 30,
In thousands	2024		2023
Cash paid for taxes, net of refunds	$	4,781	$	3,502
Cash paid for interest	41,655		45,702
Non-cash investing and financing activities:
Accrued capital expenditures	$	13,516	$	1,802

Accounts payable and accrued liabilities

A breakout of Accounts payable and accrued liabilities is presented below:


In thousands	June 30, 2024		December 31, 2023
Accounts payable	$	154,353	$	142,215
Compensation	67,196		82,160
Taxes (primarily property, sales, and payroll taxes)	10,198		9,990
Benefits	19,862		19,422
Interest	5,362		5,617
Other	47,911		34,040
Accounts payable and accrued liabilities	$	304,882	$	293,444

Table of Contents

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations and quantitative and qualitative disclosures should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission. Management's Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements that reflect our plans, estimates, and beliefs, all of which are based on our current expectations and could be affected by certain uncertainties, risks, and other factors described under Cautionary Note Regarding Forward-Looking Statements, Risk Factors, and elsewhere throughout this Quarterly Report on Form 10-Q, as well as the factors described in our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent periodic reports filed with the Securities and Exchange Commission, particularly under "Risk Factors." Our actual results could differ materially from those discussed in the forward-looking statements.

OVERVIEW

We are a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth focused media and digital marketing solutions company. We endeavor to deliver essential content, marketing solutions, and experiences for curated audiences, advertisers, consumers, and stakeholders by leveraging our diverse teams and suite of products to enrich the local communities and businesses we serve.

Through USA TODAY, our network of local properties, and Newsquest, we deliver high-quality, trusted content with a commitment to balanced, unbiased journalism, where and when consumers want to engage. We have strong relationships with hundreds of thousands of local and national businesses in both our U.S. and U.K. markets due to our large local and national sales forces and a robust advertising and digital marketing solutions product suite. Our strategy prioritizes maximizing the monetization of our audience through the growth of increasingly diverse and highly recurring digital businesses. We expect the execution of this strategy to enable us to continue our evolution to a predominantly digital media company. We deliver value to our customers, advertisers, partners and shareholders with essential content, joyful experiences, and relevant digital solutions.

We report in three segments: Domestic Gannett Media, Newsquest and Digital Marketing Solutions ("DMS"). We also have a Corporate and other category that includes activities not directly attributable to a specific reportable segment. This category primarily consists of broad corporate functions, including legal, human resources, accounting, analytics, finance, marketing and technology, as well as other general business costs. A full description of our reportable segments is included in Note 12 — Segment reporting in the notes to the condensed consolidated financial statements.

Business Trends

We have considered several industry trends when assessing our business strategy:

•Print advertising and Print circulation revenues have and are expected to continue to decline as our audience increasingly moves to digital platforms. We seek to optimize our print operations to efficiently manage for the declining print audience. We are focused on growing a digitally-oriented audience across multiple platforms and revenue streams.

•Our revenues and results of operations continue to be influenced by general macroeconomic conditions, including, but not limited to, interest rates, housing demand, employment levels, and consumer confidence. We believe that these factors are contributing to uncertainty, which is resulting in lower levels of advertising performance and reduced spending.

•Data privacy standards continue to evolve and implementation of standards may result in incremental costs.

•The application of artificial intelligence ("AI") and the rapid rate of change within the AI ecosystem is increasing the pace of change in the media sector.

Table of Contents

Certain Matters Affecting Comparability

The following items affect period-over-period comparisons and will continue to affect period-over-period comparisons for future results:

Asset impairments

For the three months ended June 30, 2024, we did not record an asset impairment, and for the six months ended June 30, 2024, we recorded an impairment charge of approximately $46.0 million related to the McLean, Virginia operating lease right-of-use asset and the associated leasehold improvements.

For both the three and six months ended June 30, 2023, we recorded an impairment charge of approximately $1.2 million related to our continued plan to monetize non-strategic assets.

Loss (gain) on sale or disposal of assets, net

For the three and six months ended June 30, 2024, we recognized a net loss on the sale of assets of $0.2 million and $0.8 million, respectively, primarily related to a net loss of $0.2 million and $1.1 million, respectively, at the Domestic Gannett Media segment, partially offset for the six months ended June 30, 2024, by a net gain of $0.4 million at the Newsquest segment as part of our continued plan to monetize non-strategic assets.

For the three and six months ended June 30, 2023, we recognized a net loss on the sale of assets of $0.1 million and a net gain of $17.5 million, respectively. For the six months ended June 30, 2023, the net gain was primarily related to a gain of $16.2 million at the Domestic Gannett Media segment, mainly due to the sale of a production facility as part of our plan to monetize non-strategic assets, as well as the gain on the sale of intellectual property of $1.4 million at our Corporate and other category.

Integration and reorganization costs

For the three and six months ended June 30, 2024, we incurred Integration and reorganization costs of $19.8 million and $37.7 million, respectively. Of the total costs incurred, $4.4 million and $9.7 million, respectively, were related to severance activities and $15.3 million and $28.0 million, respectively, were related to other reorganization-related costs, primarily reflecting a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan, as well as costs for consolidating operations. In addition, for the six months ended June 30, 2024, other reorganization-related costs also included $9.7 million expensed as of the cease-use date related to certain licensed content.

For the three and six months ended June 30, 2023, we incurred Integration and reorganization costs of $7.3 million and $19.4 million, respectively. Of the total costs incurred, $2.6 million and $12.8 million, respectively, were related to severance activities and $4.7 million and $6.6 million, respectively, were related to other reorganization-related costs, including costs for consolidating operations, mainly related to systems implementation and the outsourcing of corporate functions. In addition, for the six months ended June 30, 2023, other reorganization-related costs were partially offset by the reversal of a withdrawal liability related to a multiemployer pension plan of $2.0 million based on the settlement of the withdrawal liability.

Foreign currency

Our U.K. media operations are conducted through our Newsquest subsidiary. In addition, we have foreign operations in regions such as Canada, Australia, New Zealand and India. Earnings from operations in foreign regions are translated into U.S. dollars at average exchange rates prevailing during the period, and assets and liabilities are translated at exchange rates in effect at the balance sheet date. Currency translation fluctuations may impact revenue, expense, and operating income results for our international operations. For example, our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens relative to other foreign currencies. Foreign currency exchange rate fluctuations positively impacted our revenues and profitability during the three and six months ended June 30, 2024.

Strategy

We are committed to inspiring, informing and connecting audiences as a sustainable, growth-focused media and digital marketing solutions company. We endeavor to deliver essential content, marketing solutions and experiences for curated audiences, advertisers, consumers, and stakeholders by leveraging our diverse teams and suite of products to enrich the local communities and businesses we serve.

Table of Contents

The execution of this strategy is expected to allow us to continue our evolution from a more traditional print media business to a sustainable, growth-focused media and digital marketing solutions company.

We intend to create stockholder value through a variety of methods, including organic growth driven by our consumer and business-to-business strategies, as well as through paying down debt to strengthen our capital structure.

Stable foundation for ongoing growth

We continue to optimize and improve our foundation – completing systems consolidations and migrations, improving process workflows, and ensuring we have synergy across the organization to deliver the stabilization required to fuel our plan into the future. We also continue to invest in our people and in the skills needed to support our future aims and to retain our talent by remaining an attractive place to work.

Expand reach with our customer segments

Key to our ongoing growth is expanding our base – whether clients in our DMS segment or audience in our Domestic Gannett Media and Newsquest segments – and optimizing our revenue streams across this growing base. For both the Domestic Gannett Media and Newsquest segments, this includes content expansion, establishing a seamless print to digital continuum to introduce clients, readers, viewers, and listeners to a broader range of products we offer. For the DMS segment, expanding our client base and core revenue is anticipated to be supplemented by the development of a complementary software model.

Diversify digital revenues

We expect to continue to expand the ways that we grow digital revenues through innovative partnerships and developing new products and services that meet the needs of consumers and businesses. Examples of this growth strategy include our intention to continue to expand partnerships that rely on our unique and large audience base and developing new DMS software solutions.

Foundational commitment to environmental, social, and governance matters that impact our customers and communities

We will continue our environmental, social and governance ("ESG") journey that is rooted in our strategic mission to empower our communities to thrive and putting our customers at the center of everything we do. We support that mission with clearly defined values that aim to influence not only what we do, but how we do it, with one of the core pillars focusing on our ongoing commitments to inclusion, diversity, and equity ("ID&E"). From our internal efforts around recruiting, development and retention, to our external efforts to provide high quality products and excellent customer service, we believe our strategic focus will benefit from our continued commitment to building upon our culture and community values.

Macroeconomic Environment

We are exposed to certain risks and uncertainties caused by factors beyond our control, including economic and political instability and other geopolitical events. We believe that these uncertain economic conditions have adversely impacted and may continue to have an adverse impact on our revenues, and the occurrence of these factors has resulted in a reduction in demand for our print and digital advertising, reduced the rates for our advertising, and caused marketers to shift, reduce or stop spend.

We are exposed to potential increases in interest rates associated with our Senior Secured Term Loan, which accounted for approximately 30% and 31% of our outstanding debt as of June 30, 2024 and December 31, 2023, respectively, as well as fluctuations in foreign currency exchange rates, primarily related to our operations in the U.K. We expect continued uncertainty and volatility in the U.S. and global economies which will continue to impact our business.

Seasonality

We experience some seasonality in our revenues. The Domestic Gannett Media segment typically witnesses the greatest impact from seasonality in the third quarter, primarily attributed to reduced population in seasonal markets and decreased holiday related spending. The DMS segment generally experiences the greatest impact from seasonality in the first half of the fiscal year, which can be attributed to the advertising needs of specific verticals, which are generally lower in the first half of the year.

Table of Contents

Environmental, Social and Governance Initiatives

As a leading media organization, our longstanding corporate social responsibility position is driven by our deep commitment to our communities. We are dedicated to ensuring that we have mindful and ethical business practices that positively impact our world. In early 2024, we published our 2024 ESG Report detailing the progress we made on our U.N. Sustainable Development Goals ("U.N. SDGs") that include Reduced Inequalities, Climate Action, and Peace, Justice and Strong Institutions. The 2024 ESG Report included noteworthy highlights such as improving our workplace diversity, expanding our systems infrastructure to provide Scope 1 and Scope 2 emissions for our global carbon footprint, and reducing the number of manufacturing facilities.

We are committed to ensuring our coverage is widely available, actively promoted across our media sites and marketed to our millions of registered users. In January 2024, we published our network-wide 2023 Journalism Impact Report, which highlighted what we believe are the most influential articles we produced in 2023 and covers topics such as coverage on ID&E, as well as climate change. We are committed to the ongoing publishing of an annual network-wide Journalism Impact Report, which surfaces the top stories we produced that led to action.

The well-being of our employees is of paramount importance to us and we are committed to maintaining a corporate culture that conducts business in a responsible and ethical manner that includes promoting, protecting and supporting human rights across our operations and throughout our entire organization, which is why we have adopted a company-wide Human Rights Policy. This policy expands upon an existing policy enacted by our U.K. operations. Our Human Rights Policy covers areas such as our commitment to diversity and inclusion, a safe and healthy workplace, our communities and stakeholders, and freedom of association and collective bargaining, which helps ensure our employees' right to form and choose whether to join a labor union without fear of reprisal, intimidation, or harassment. The Human Rights Policy also reflects our commitment to bargaining in good faith with chosen representatives of such groups in accordance with applicable laws.

Use of Website to Distribute Material Company Information

Our website is www.gannett.com. Information contained on our website is not part of this Quarterly Report on Form 10-Q. We use our website as a distribution channel for material company information. Financial and other important information regarding the Company is routinely posted on and accessible on the Investor Relations and News and Events subpages of our website, which are accessible by clicking on the tab labeled "Investor Relations" and "News and Events", respectively, on the website home page. Therefore, investors should look to the Investor Relations, and News and Events subpages of the Company's website for important and time-critical information.

Table of Contents

RESULTS OF OPERATIONS

Consolidated Summary

A summary of our consolidated results is presented below:


	Three months ended June 30,								Six months ended June 30,
In thousands, except per share amounts					Change								Change
	2024		2023		$		%		2024		2023		$		%
Revenues:
Digital advertising	$	84,465	$	81,496	$	2,969	4	%	$	168,931	$	161,706	$	7,225	4	%
Digital marketing services(a)	123,313		122,539		774		1	%	239,727		235,222		4,505		2	%
Digital-only subscription	46,282		37,856		8,426		22	%	89,761		73,687		16,074		22	%
Digital other	24,318		20,212		4,106		20	%	47,458		38,966		8,492		22	%
Digital	278,378		262,103		16,275		6	%	545,877		509,581		36,296		7	%

Print advertising	138,904		149,275		(10,371)		(7)	%	273,580		297,229		(23,649)		(8)	%
Print circulation	163,323		195,756		(32,433)		(17)	%	336,646		401,210		(64,564)		(16)	%
Commercial and other(b)	59,235		65,223		(5,988)		(9)	%	119,498		133,254		(13,756)		(10)	%
Print and commercial	361,462		410,254		(48,792)		(12)	%	729,724		831,693		(101,969)		(12)	%

Total revenues	639,840		672,357		(32,517)		(5)	%	1,275,601		1,341,274		(65,673)		(5)	%

Total operating expenses(a)	632,874		658,846		(25,972)		(4)	%	1,318,521		1,307,802		10,719		1	%
Operating income (loss)	6,966		13,511		(6,545)		(48)	%	(42,920)		33,472		(76,392)		***
Non-operating expenses	20,052		24,868		(4,816)		(19)	%	44,856		51,898		(7,042)		(14)	%
Loss before income taxes	(13,086)		(11,357)		(1,729)		15	%	(87,776)		(18,426)		(69,350)		***
(Benefit) provision for income taxes	(26,803)		1,333		(28,136)		***		(16,725)		(15,996)		(729)		5	%
Net income (loss)	13,717		(12,690)		26,407		***		(71,051)		(2,430)		(68,621)		***
Net loss attributable to noncontrolling interests	(31)		(13)		(18)		***		(31)		(97)		66		(68)	%
Net income (loss) attributable to Gannett	$	13,748	$	(12,677)	$	26,425	***		$	(71,020)	$	(2,333)	$	(68,687)	***

Income (loss) per share attributable to Gannett - basic	$	0.10	$	(0.09)	$	0.19	***		$	(0.50)	$	(0.02)	$	(0.48)	***
Income (loss) per share attributable to Gannett - diluted	$	0.09	$	(0.09)	$	0.18	***		$	(0.50)	$	(0.02)	$	(0.48)	***

*** Indicates an absolute value percentage change greater than 100.

(a) Amounts are net of intersegment eliminations of $38.4 million and $37.9 million for the three months ended June 30, 2024 and 2023, respectively, and $77.2 million and $72.3 million for the six months ended June 30, 2024 and 2023, respectively. Intersegment eliminations represent digital marketing services revenues and expenses associated with products sold by sales teams in our Domestic Gannett Media and Newsquest segments but fulfilled by our DMS segment. When discussing segment results, these revenues and expenses are presented gross but are eliminated in consolidation.

(b) For the three months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $39.8 million and $46.9 million, respectively, and for the six months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $82.9 million and $98.0 million, respectively.

Revenues

Digital revenues are primarily derived from digital advertising offerings such as classified advertisements and display advertisements run on our platforms as well as third-party sites, digital marketing services generated through multiple services, including search advertising, display advertising, search optimization, social media, website development, web presence products, customer relationship management, and software-as-a-service solutions, digital distribution of our publications, as well as digital syndication, affiliate, partnership, and licensing revenues.

Print and commercial revenues are generated from the sale of local, national, and classified print advertising products, the sale of both home delivery and single copies of our publications, as well as commercial printing and distribution arrangements, and revenues from our events business.

Table of Contents

Operating expenses

Operating expenses consist primarily of the following:

•Operating costs at the Domestic Gannett Media and Newsquest segments include labor, newsprint, delivery and digital costs and at the DMS segment include the cost of online media acquired from third parties and costs to manage and operate our marketing solutions and technology infrastructure;

•Selling, general and administrative expenses include labor, payroll, outside services, benefits costs and bad debt expense;

•Depreciation and amortization;

•Integration and reorganization costs include severance costs as well as other reorganization costs associated with individual restructuring programs, designed primarily to right-size the Company's employee base, consolidate facilities and improve operations;

•Impairment charges, including costs incurred related to goodwill, intangible assets and property, plant and equipment;

•Gains or losses on the sale or disposal of assets; and

•Other operating expenses, including third-party debt expenses as well as acquisition-related costs.

Refer to Segment results below for a discussion of the results of operations by segment.

Non-operating expenses (income)

Interest expense: For the three and six months ended June 30, 2024, Interest expense was $26.3 million and $52.8 million, respectively, compared to $28.6 million and $56.9 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, interest expense decreased compared to the three and six months ended June 30, 2023, primarily due to a lower debt balance, mainly driven by quarterly amortization payments and required prepayments on our Senior Secured Term Loan and repurchases of our 2026 Senior Notes, partially offset by an increase in interest rates on the Senior Secured Term Loan.

Non-operating pension income: For the three and six months ended June 30, 2024, Non-operating pension income was $3.1 million and $6.3 million, respectively, compared to $2.3 million and $4.1 million for the three and six months ended June 30, 2023, respectively. The increase in Non-operating pension income for the three and six months ended June 30, 2024, compared to the same periods in 2023 was primarily due to the decrease in the discount rate, partially offset by a decline in the projected benefit obligation.

(Benefit) provision for income taxes

The following table outlines our pre-tax net loss before income taxes and income tax accounts:


	Three months ended June 30,						Six months ended June 30,
In thousands	2024			2023			2024			2023
Loss before income taxes	$	(13,086)		$	(11,357)		$	(87,776)		$	(18,426)
(Benefit) provision for income taxes	(26,803)			1,333			(16,725)			(15,996)
Effective tax rate	204.8		%	(11.7)		%	19.1		%	86.8		%

Table of Contents

Net income (loss) attributable to Gannett and diluted income (loss) per share attributable to Gannett

For the three months ended June 30, 2024, Net income attributable to Gannett and diluted income per share attributable to Gannett were $13.7 million and $0.09, respectively, compared to Net loss attributable to Gannett and diluted loss per share attributable to Gannett of $12.7 million and $0.09, respectively, for the three months ended June 30, 2023. For the six months ended June 30, 2024, Net loss attributable to Gannett and diluted loss per share attributable to Gannett were $71.0 million and $0.50, respectively, compared to Net loss attributable to Gannett and diluted loss per share attributable to Gannett of $2.3 million and $0.02, respectively, for the six months ended June 30, 2023. The change for the three and six months ended June 30, 2024, compared to the same periods in the prior year reflects the various items discussed above.

Table of Contents

Segment Results

Domestic Gannett Media segment

A summary of our Domestic Gannett Media segment results is presented below:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Revenues:
Digital	$	171,955	$	157,031	$	14,924	10	%	$	339,690	$	306,339	$	33,351	11	%
Print and commercial	319,954		371,163		(51,209)		(14)	%	647,938		751,792		(103,854)		(14)	%
Total revenues	491,909		528,194		(36,285)		(7)	%	987,628		1,058,131		(70,503)		(7)	%
Operating expenses:
Operating costs	304,573		342,988		(38,415)		(11)	%	625,435		692,316		(66,881)		(10)	%
Selling, general and administrative expenses	135,110		132,473		2,637		2	%	265,354		268,963		(3,609)		(1)	%
Depreciation and amortization	24,309		27,630		(3,321)		(12)	%	49,186		59,381		(10,195)		(17)	%
Integration and reorganization costs	14,693		1,934		12,759		***		29,582		5,983		23,599		***
Asset impairments	—		1,177		(1,177)		(100)	%	—		1,182		(1,182)		(100)	%

Loss (gain) on sale or disposal of assets, net	233		77		156		***		1,137		(16,194)		17,331		***
Other operating income	(38)		—		(38)		***		(90)		—		(90)		***
Total operating expenses	478,880		506,279		(27,399)		(5)	%	970,604		1,011,631		(41,027)		(4)	%
Operating income	$	13,029	$	21,915	$	(8,886)	(41)	%	$	17,024	$	46,500	$	(29,476)	(63)	%

*** Indicates an absolute value percentage change greater than 100.

Revenues

The following table provides the breakout of Revenues by category:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Digital advertising	$	70,922	$	69,175	$	1,747	3	%	$	141,863	$	136,849	$	5,014	4	%
Digital marketing services	35,967		35,357		610		2	%	72,053		67,422		4,631		7	%
Digital-only subscription	44,622		36,601		8,021		22	%	86,533		71,279		15,254		21	%
Digital other	20,444		15,898		4,546		29	%	39,241		30,789		8,452		27	%
Digital	171,955		157,031		14,924		10	%	339,690		306,339		33,351		11	%

Print advertising	119,000		131,311		(12,311)		(9)	%	234,619		259,488		(24,869)		(10)	%
Print circulation	146,690		178,264		(31,574)		(18)	%	302,936		366,767		(63,831)		(17)	%
Commercial and other(a)	54,264		61,588		(7,324)		(12)	%	110,383		125,537		(15,154)		(12)	%
Print and commercial	319,954		371,163		(51,209)		(14)	%	647,938		751,792		(103,854)		(14)	%

Total revenues	$	491,909	$	528,194	$	(36,285)	(7)	%	$	987,628	$	1,058,131	$	(70,503)	(7)	%

(a) For the three months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $37.3 million and $45.0 million, respectively, and for the six months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $77.8 million and $94.1 million, respectively.

For the three and six months ended June 30, 2024, Digital advertising revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in sponsored link and national programmatic revenue, as well as higher spend on automotive advertisements, partially offset by lower spend on obituary and employment notifications.

For the three and six months ended June 30, 2024, Digital marketing services revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in client spend.

For the three and six months ended June 30, 2024, Digital-only subscription revenues increased compared to the three and six months ended June 30, 2023, primarily driven by an increase in digital-only subscription average revenue per user ("Digital-only ARPU") of 21% and 22%, respectively, mainly due to product mix.

Table of Contents

Refer to "Key Performance Indicators" below for further discussion of Digital-only ARPU.

For the three and six months ended June 30, 2024, Digital other revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in affiliate, partnership, and syndication revenues.

For the three and six months ended June 30, 2024, Print advertising revenues decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in local and national print advertisements and lower advertiser inserts, mainly due to a reduction in spend from customers driven by macroeconomic factors, and lower spend on classified advertisements, mainly associated with obituary notifications and real estate advertisements.

For the three and six months ended June 30, 2024, Print circulation revenues decreased compared to the three and six months ended June 30, 2023, due to a decline in home delivery and single copy as a result of a reduction in the volume of subscribers, partially offset by an increase in rates.

For the three and six months ended June 30, 2024, Commercial and other revenues decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in commercial print and delivery revenues, driven by the decline in production volume, as well as facility closures, and a decrease in the price of newsprint. For the six months ended June 30, 2024, the decrease in Commercial and other revenues was partially offset by an increase in event revenues, mainly driven by an increase in ticket sales related to higher attendance.

Operating expenses

The following table provides the breakout of Operating costs for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Newsprint and ink	$	16,846	$	26,771	$	(9,925)	(37)	%	$	35,419	$	56,368	$	(20,949)	(37)	%
Distribution	69,283		82,979		(13,696)		(17)	%	143,766		166,921		(23,155)		(14)	%
Compensation and benefits	93,059		96,955		(3,896)		(4)	%	189,560		197,885		(8,325)		(4)	%
Outside services	79,094		82,799		(3,705)		(4)	%	160,059		161,794		(1,735)		(1)	%
Other	46,291		53,484		(7,193)		(13)	%	96,631		109,348		(12,717)		(12)	%
Total operating costs	$	304,573	$	342,988	$	(38,415)	(11)	%	$	625,435	$	692,316	$	(66,881)	(10)	%

For the three and six months ended June 30, 2024, Newsprint and ink costs decreased compared to the three and six months ended June 30, 2023, primarily due to lower volume due to the decline in revenues, as well as a decrease in the cost of newsprint of approximately $4.3 million and $9.1 million, respectively.

For the three and six months ended June 30, 2024, Distribution costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease of approximately $15.0 million and $27.0 million, respectively, associated with lower home delivery and single copy revenues, and the conversion to mail, partially offset by an increase in postage costs of approximately $1.3 million and $3.8 million, respectively, mainly due to conversion to mail delivery in multiple markets, as well as higher postage costs associated with an increase in advertising revenue.

For the three and six months ended June 30, 2024, Compensation and benefits costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in headcount tied to ongoing cost control initiatives, including facility closures and conversion to mail delivery in multiple markets.

For the three and six months ended June 30, 2024, Outside services costs, which includes professional services fulfilled by third parties, media fees and other digital costs, and paid search and ad serving services, decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease of approximately $3.3 million and $3.9 million, respectively, in miscellaneous expenses, mainly due to the cease-use of certain licensed content, partially offset for the six months ended June 30, 2024, by higher third-party media fees of approximately $2.2 million.

Table of Contents

For the three and six months ended June 30, 2024, Other costs decreased compared to the three and six months ended June 30, 2023, primarily due to lower miscellaneous expenses of approximately $4.3 million and $8.1 million, respectively, mainly related to lower technology costs, as well as lower facility related expenses of approximately $3.8 million and $7.6 million, respectively, mainly associated with real estate sales and facility consolidations, partially offset by higher promotion costs of approximately $0.9 million and $3.0 million, respectively.

The following table provides the breakout of Selling, general and administrative expenses for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Compensation and benefits	$	64,140	$	63,333	$	807	1	%	$	126,803	$	125,512	$	1,291	1	%
Outside services and other	70,970		69,140		1,830		3	%	138,551		143,451		(4,900)		(3)	%
Total selling, general and administrative expenses	$	135,110	$	132,473	$	2,637	2	%	$	265,354	$	268,963	$	(3,609)	(1)	%

For the three and six months ended June 30, 2024, Compensation and benefits costs increased compared to the three and six months ended June 30, 2023, primarily due to an increase in bonuses and employee benefit costs.

For the three months ended June 30, 2024, Outside services and other costs, which include services fulfilled by third parties, increased compared to the three months ended June 30, 2023, primarily due to higher miscellaneous expenses of approximately $2.1 million, including promotional expenses and professional service costs, partially offset by lower bad debt expense of approximately $0.3 million. For the six months ended June 30, 2024, Outside services and other costs, decreased compared to the six months ended June 30, 2023, primarily due to lower miscellaneous expenses of approximately $3.4 million, including lower product and finance costs, partially offset by higher technology costs, as well as lower bad debt expense of approximately $1.5 million.

For the three and six months ended June 30, 2024, Depreciation and amortization expense decreased compared to the three and six months ended June 30, 2023, reflecting the impact of fewer print facilities in 2024 compared to 2023.

For the three and six months ended June 30, 2024, Integration and reorganization costs increased compared to the three and six months ended June 30, 2023, mainly due to an increase in other reorganization-related costs of $10.0 million and $22.3 million, respectively, and an increase in severance costs of $2.8 million and $1.3 million, respectively. For the three and six months ended June 30, 2024, the change in other reorganization-related costs primarily reflected a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan. In addition, for the six months ended June 30, 2024, the change in other reorganization-related costs also reflected $9.7 million expensed as of the cease-use date related to certain licensed content and the absence in the first quarter of 2024 of a reversal of a withdrawal liability related to a multiemployer pension plan in the first quarter of 2023 of $2.0 million based on the settlement of the withdrawal liability.

For the three and six months ended June 30, 2024, we recognized a net loss on the sale of assets of $0.2 million and $1.1 million, respectively, as part of our continued plan to monetize non-strategic assets. For the three and six months ended June 30, 2023, we recognized a net loss on the sale of assets of $0.1 million and a net gain on the sale of assets of $16.2 million, respectively. For the six months ended June 30, 2023, the net gain was primarily related to the sale of a production facility as part of our plan to monetize non-strategic assets.

Table of Contents

Domestic Gannett Media segment Adjusted EBITDA


	Three months ended June 30,										Six months ended June 30,
							Change										Change
In thousands	2024			2023			$		%		2024			2023			$		%
Net income attributable to Gannett	$	16,043		$	22,786		$	(6,743)	(30)	%	$	21,506		$	45,795		$	(24,289)	(53)	%
Non-operating pension (income) expense	(1,306)			(80)			(1,226)		***		(2,612)			223			(2,835)		***
Depreciation and amortization	24,309			27,630			(3,321)		(12)	%	49,186			59,381			(10,195)		(17)	%
Integration and reorganization costs	14,693			1,934			12,759		***		29,582			5,983			23,599		***

Asset impairments	—			1,177			(1,177)		(100)	%	—			1,182			(1,182)		(100)	%

Loss (gain) on sale or disposal of assets, net	233			77			156		***		1,137			(16,194)			17,331		***
Other non-operating (income) expense, net	(1,118)			(157)			(961)		***		(1,465)			1,410			(2,875)		***
Non-recurring items	75			10			65		***		75			14			61		***
Adjusted EBITDA (non-GAAP basis)(a)	$	52,929		$	53,377		$	(448)	(1)	%	$	97,409		$	97,794		$	(385)	—	%
Net income attributable to Gannett margin	3.3		%	4.3		%					2.2		%	4.3		%
Adjusted EBITDA margin (non-GAAP basis)(a)(b)	10.8		%	10.1		%					9.9		%	9.2		%

*** Indicates an absolute value percentage change greater than 100.

(a)See "Non-GAAP Financial Measures" below for additional information about non-GAAP measures.

(b)We define Adjusted EBITDA margin as Adjusted EBITDA divided by total Revenues.

For the three and six months ended June 30, 2024, the decrease in Domestic Gannett Media segment Adjusted EBITDA compared to the three and six months ended June 30, 2023, was primarily attributable to the changes discussed above.

Newsquest segment

A summary of our Newsquest segment results is presented below:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Revenues:
Digital	$	19,744	$	18,518	$	1,226	7	%	$	39,664	$	36,866	$	2,798	8	%
Print and commercial	41,508		39,091		2,417		6	%	81,786		79,901		1,885		2	%
Total revenues	61,252		57,609		3,643		6	%	121,450		116,767		4,683		4	%
Operating expenses:
Operating costs	31,584		29,573		2,011		7	%	62,110		59,810		2,300		4	%
Selling, general and administrative expenses	15,628		15,685		(57)		—	%	31,224		31,843		(619)		(2)	%
Depreciation and amortization	2,043		2,126		(83)		(4)	%	4,078		3,884		194		5	%
Integration and reorganization costs	243		376		(133)		(35)	%	412		976		(564)		(58)	%


Loss (gain) on sale or disposal of assets, net	1		3		(2)		(67)	%	(444)		6		(450)		***
Other operating income	(120)		—		(120)		***		(207)		—		(207)		***
Total operating expenses	49,379		47,763		1,616		3	%	97,173		96,519		654		1	%
Operating income	$	11,873	$	9,846	$	2,027	21	%	$	24,277	$	20,248	$	4,029	20	%

*** Indicates an absolute value percentage change greater than 100.

Table of Contents

Revenues

The following table provides the breakout of Revenues by category:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Digital advertising	$	13,543	$	12,321	$	1,222	10	%	$	27,068	$	24,857	$	2,211	9	%
Digital marketing services	1,925		2,301		(376)		(16)	%	4,013		4,495		(482)		(11)	%
Digital-only subscription	1,660		1,255		405		32	%	3,228		2,408		820		34	%
Digital other	2,616		2,641		(25)		(1)	%	5,355		5,106		249		5	%
Digital	19,744		18,518		1,226		7	%	39,664		36,866		2,798		8	%

Print advertising	19,904		17,964		1,940		11	%	38,961		37,741		1,220		3	%
Print circulation	16,633		17,492		(859)		(5)	%	33,710		34,443		(733)		(2)	%
Commercial and other(a)	4,971		3,635		1,336		37	%	9,115		7,717		1,398		18	%
Print and commercial	41,508		39,091		2,417		6	%	81,786		79,901		1,885		2	%

Total revenues	$	61,252	$	57,609	$	3,643	6	%	$	121,450	$	116,767	$	4,683	4	%

(a) For the three months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $2.6 million and $1.9 million, respectively, and for the six months ended June 30, 2024 and 2023, included in Commercial and other revenues was Commercial printing and delivery revenues of $5.1 million and $3.9 million, respectively.

For the three and six months ended June 30, 2024, Digital advertising revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in national and local revenues, partially offset by lower spend on employment notifications.

For the three and six months ended June 30, 2024, Digital-only subscription revenues increased compared to the three and six months ended June 30, 2023, primarily driven by the increase in digital-only paid subscriptions. Refer to "Key Performance Indicators" below for further discussion of digital-only paid subscriptions.

For the three and six months ended June 30, 2024, Print advertising revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in national print advertisements.

For the three and six months ended June 30, 2024, Commercial and other revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in commercial printing and delivery revenues.

Operating expenses

The following table provides the breakout of Operating costs for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Newsprint and ink	$	2,461	$	3,620	$	(1,159)	(32)	%	$	5,085	$	7,516	$	(2,431)	(32)	%
Distribution	3,137		3,408		(271)		(8)	%	6,323		6,838		(515)		(8)	%
Compensation and benefits	12,930		12,356		574		5	%	25,909		24,318		1,591		7	%
Outside services	3,741		3,971		(230)		(6)	%	7,589		7,870		(281)		(4)	%
Other	9,315		6,218		3,097		50	%	17,204		13,268		3,936		30	%
Total operating costs	$	31,584	$	29,573	$	2,011	7	%	$	62,110	$	59,810	$	2,300	4	%

For the three and six months ended June 30, 2024, Newsprint and ink costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in the cost of newsprint of approximately $0.8 million and $1.8 million, respectively.

For the three and six months ended June 30, 2024, Distribution costs decreased compared to the three and six months ended June 30, 2023, primarily due to the decline in print circulation revenues.

Table of Contents

For the three and six months ended June 30, 2024, Compensation and benefits costs increased compared to the three and six months ended June 30, 2023, primarily due to higher headcount.

For the three months ended June 30, 2024, Other costs increased compared to the three and six months ended June 30, 2023, primarily associated with the increase in both digital and print advertising revenues.

The following table provides the breakout of Selling, general and administrative expenses for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Compensation and benefits	$	11,917	$	11,846	$	71	1	%	$	23,662	$	23,352	$	310	1	%
Outside services and other	3,711		3,839		(128)		(3)	%	7,562		8,491		(929)		(11)	%
Total selling, general and administrative expenses	$	15,628	$	15,685	$	(57)	—	%	$	31,224	$	31,843	$	(619)	(2)	%

For the three and six months ended June 30, 2024, Outside services and other costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in technology related costs and for the six months ended June 30, 2024, the decline was also due to lower bad debt expense of approximately $0.3 million.

Newsquest segment Adjusted EBITDA


	Three months ended June 30,										Six months ended June 30,
							Change										Change
In thousands	2024			2023			$		%		2024			2023			$		%
Net income attributable to Gannett	$	14,058		$	13,139		$	919	7	%	$	28,602		$	25,157		$	3,445	14	%
Non-operating pension income	(1,831)			(2,183)			352		(16)	%	(3,671)			(4,301)			630		(15)	%
Depreciation and amortization	2,043			2,126			(83)		(4)	%	4,078			3,884			194		5	%
Integration and reorganization costs	243			376			(133)		(35)	%	412			976			(564)		(58)	%
Third-party debt expenses and acquisition costs	(22)			—			(22)		***		(22)			—			(22)		***


Loss (gain) on sale or disposal of assets, net	1			3			(2)		(67)	%	(444)			6			(450)		***
Other non-operating income, net	(354)			(1,110)			756		(68)	%	(654)			(608)			(46)		8	%
Non-recurring items	—			91			(91)		(100)	%	—			174			(174)		(100)	%
Adjusted EBITDA (non-GAAP basis)(a)	$	14,138		$	12,442		$	1,696	14	%	$	28,301		$	25,288		$	3,013	12	%
Net income attributable to Gannett margin	23.0		%	22.8		%					23.6		%	21.5		%
Adjusted EBITDA margin (non-GAAP basis)(a)(b)	23.1		%	21.6		%					23.3		%	21.7		%

*** Indicates an absolute value percentage change greater than 100.

(a)See "Non-GAAP Financial Measures" below for additional information about non-GAAP measures.

(b)We define Adjusted EBITDA margin as Adjusted EBITDA divided by total Revenues.

For the three and six months ended June 30, 2024, the increase in Newsquest segment Adjusted EBITDA compared to the three and six months ended June 30, 2023, was primarily attributable to the changes discussed above.

Table of Contents

Digital Marketing Solutions segment

A summary of our DMS segment results is presented below:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Revenues:
Digital(a)	$	123,798	$	122,789	$	1,009	1	%	$	240,843	$	235,606	$	5,237	2	%

Total revenues	123,798		122,789		1,009		1	%	240,843		235,606		5,237		2	%
Operating expenses:
Operating costs	89,358		85,199		4,159		5	%	174,289		164,189		10,100		6	%
Selling, general and administrative expenses	22,671		22,120		551		2	%	46,636		44,264		2,372		5	%
Depreciation and amortization	6,065		5,927		138		2	%	11,945		11,787		158		1	%
Integration and reorganization costs (reversal)	887		(48)		935		***		912		(28)		940		***


Loss on sale or disposal of assets, net	—		66		(66)		(100)	%	89		101		(12)		(12)	%
Total operating expenses	118,981		113,264		5,717		5	%	233,871		220,313		13,558		6	%
Operating income	$	4,817	$	9,525	$	(4,708)	(49)	%	$	6,972	$	15,293	$	(8,321)	(54)	%

*** Indicates an absolute value percentage change greater than 100.

(a)Digital revenues are solely generated by digital marketing services revenues.

Revenues

For the three and six months ended June 30, 2024, Digital revenues increased compared to the three and six months ended June 30, 2023, primarily due to growth in the core direct business, including growth in revenues associated with both local and multi-location customers, and an increase in core platform average revenue per user ("Core platform ARPU") of 5% and 6% for the three and six months ended June 30, 2024, respectively. Refer to "Key Performance Indicators" below for further discussion of Core platform ARPU.

Operating expenses

The following table provides the breakout of Operating costs for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Outside services	$	78,449	$	75,021	$	3,428	5	%	$	152,548	$	144,117	$	8,431	6	%
Compensation and benefits	8,998		8,611		387		4	%	18,004		17,051		953		6	%
Other	1,911		1,567		344		22	%	3,737		3,021		716		24	%
Total operating costs	$	89,358	$	85,199	$	4,159	5	%	$	174,289	$	164,189	$	10,100	6	%

For the three and six months ended June 30, 2024, Compensation and benefits costs increased compared to the three and six months ended June 30, 2023, primarily due to higher headcount.

For the three and six months ended June 30, 2024, Other costs increased compared to the three and six months ended June 30, 2023, primarily due to an increase in miscellaneous expenses, including higher facility related expenses.

The following table provides the breakout of Selling, general and administrative expenses for the three and six months ended June 30, 2024 and 2023:

Table of Contents


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Compensation and benefits	$	19,786	$	19,172	$	614	3	%	$	39,431	$	38,238	$	1,193	3	%
Outside services and other	2,885		2,948		(63)		(2)	%	7,205		6,026		1,179		20	%
Total selling, general and administrative expenses	$	22,671	$	22,120	$	551	2	%	$	46,636	$	44,264	$	2,372	5	%

For the three and six months ended June 30, 2024, Compensation and benefits costs increased compared to the three and six months ended June 30, 2023, primarily due to higher headcount.

For the three months ended June 30, 2024, Outside services and other costs remained essentially flat compared to the three months ended June 30, 2023, and for the six months ended June 30, 2024, Outside services and other costs increased compared to the six months ended June 30, 2023, due to an increase in miscellaneous expenses.

DMS segment Adjusted EBITDA


	Three months ended June 30,										Six months ended June 30,
							Change										Change
In thousands	2024			2023			$		%		2024			2023			$		%
Net income attributable to Gannett	$	5,514		$	9,273		$	(3,759)	(41)	%	$	6,123		$	14,896		$	(8,773)	(59)	%
Depreciation and amortization	6,065			5,927			138		2	%	11,945			11,787			158		1	%
Integration and reorganization costs (reversal)	887			(48)			935		***		912			(28)			940		***


Loss on sale or disposal of assets, net	—			66			(66)		(100)	%	89			101			(12)		(12)	%
Other non-operating (income) expense, net	(697)			252			(949)		***		849			397			452		***
Non-recurring items	4			—			4		***		634			—			634		***
Adjusted EBITDA (non-GAAP basis)(a)	$	11,773		$	15,470		$	(3,697)	(24)	%	$	20,552		$	27,153		$	(6,601)	(24)	%
Net income attributable to Gannett margin	4.5		%	7.6		%					2.5		%	6.3		%
Adjusted EBITDA margin (non-GAAP basis)(a)(b)	9.5		%	12.6		%					8.5		%	11.5		%

*** Indicates an absolute value percentage change greater than 100.

(a)See "Non-GAAP Financial Measures" below for additional information about non-GAAP measures.

(b)We define Adjusted EBITDA margin as Adjusted EBITDA divided by total Revenues.

For the three and six months ended June 30, 2024, the decrease in DMS segment Adjusted EBITDA compared to the three and six months ended June 30, 2023, was primarily attributable to the changes discussed above.

Table of Contents

Corporate and other category

For the three and six months ended June 30, 2024, Corporate and other revenues were $1.3 million and $2.9 million, respectively, compared to $1.7 million and $3.1 million for the three and six months ended June 30, 2023, respectively.

The following table provides the breakout of Corporate and other operating expenses for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,								Six months ended June 30,
					Change								Change
In thousands	2024		2023		$		%		2024		2023		$		%
Operating expenses:
Operating costs	$	4,336	$	6,244	$	(1,908)	(31)	%	$	9,221	$	12,270	$	(3,049)	(25)	%
Selling, general and administrative expenses	9,610		13,849		(4,239)		(31)	%	20,294		19,447		847		4	%
Depreciation and amortization	5,841		4,101		1,740		42	%	11,347		8,430		2,917		35	%
Integration and reorganization costs	3,952		5,025		(1,073)		(21)	%	6,750		12,483		(5,733)		(46)	%
Asset impairments	—		—		—		—	%	45,989		—		45,989		***
Loss (gain) on sale or disposal of assets, net	2		—		2		***		6		(1,448)		1,454		***
Other operating expenses	270		229		41		18	%	448		458		(10)		(2)	%
Total operating expenses	$	24,011	$	29,448	$	(5,437)	(18)	%	$	94,055	$	51,640	$	42,415	82	%

*** Indicates an absolute value percentage change greater than 100.

For the three months ended June 30, 2024, Corporate and other operating expenses decreased compared to the three months ended June 30, 2023, and for the six months ended June 30, 2024, Corporate and other operating expenses increased compared to the six months ended June 30, 2023. For the three months ended June 30, 2024, Selling, general and administrative expenses decreased compared to the three months ended June 30, 2023, mainly driven by lower facility related costs and lower compensation and benefits costs. For the three and six months ended June 30, 2024, Operating costs decreased, mainly due to a decrease in credit card fees and Integration and reorganization costs decreased primarily due to a decrease in severance costs of $0.9 million and $4.0 million, respectively, and a decrease in other reorganization-related costs of $0.2 million and $1.7 million, respectively. For the three and six months ended June 30, 2024, these decreases were partially offset by an increase in Depreciation and amortization expense, mainly driven by software and capitalized labor. In addition, the increase in operating expenses for six months ended June 30, 2024, also included the impairment charge of approximately $46.0 million related to the write-off of the McLean, Virginia operating lease right-of-use asset and the associated leasehold improvements, as well as the absence in 2024 of the $1.4 million gain on the sale of intellectual property incurred in the first quarter of 2023.

Table of Contents

LIQUIDITY AND CAPITAL RESOURCES

Our primary cash requirements are for working capital, debt obligations, and capital expenditures.

We expect to fund our operations and debt service requirements through cash provided by our operating activities. We expect we will have adequate capital resources and liquidity to meet our ongoing working capital needs, borrowing obligations, and all required capital expenditures for at least the next twelve months. However, a further economic downturn or an increased rate of revenue declines would negatively impact our revenue, cash provided by operating activities and liquidity. We continue to implement cost reduction initiatives to reduce our ongoing level of operating expense. We believe our ability to realize benefits from our cost reduction initiatives will be necessary to offset the continued secular decline in our legacy print business revenue streams. We believe that these measures are important in response to the overall challenging macroeconomic environment that we are facing. Refer to "Overview - Macroeconomic Environment" above for further discussion.

Details of our cash flows are included in the table below:


	Six months ended June 30,
In thousands	2024		2023
Cash provided by operating activities	$	57,576	$	52,786
Cash (used for) provided by investing activities	(16,266)		15,005
Cash used for financing activities	(43,524)		(54,560)
Effect of currency exchange rate change on cash	396		98
(Decrease) increase in cash, cash equivalents and restricted cash	$	(1,818)	$	13,329

Cash flows provided by operating activities: Our largest source of cash provided by operating activities is generated by advertising and marketing services, primarily from local and national print advertising, as well as retail, classified, and online revenues. Additionally, we generate cash through circulation subscribers, commercial printing and delivery services to third parties, and events. Our primary uses of cash from our operating activities include compensation, newsprint, delivery, and outside services.

Cash flows provided by operating activities were $57.6 million for the six months ended June 30, 2024, compared to $52.8 million for the six months ended June 30, 2023. The increase in cash flows provided by operating activities was primarily due to decreases in severance payments and cash paid for interest, partially offset by an increase in contributions to our pension and other postretirement benefit plans, lower cash receipts related to deferred revenues and increased cash paid for taxes.

Cash flows (used for) provided by investing activities: Cash flows used for investing activities was $16.3 million for the six months ended June 30, 2024, compared to cash provided by investing activities of $15.0 million for the six months ended June 30, 2023. The change in cash flows used for investing activities was primarily due to a decrease in proceeds from the sale of real estate and other non-strategic assets of $25.4 million and an increase in purchases of property, plant and equipment of $6.3 million.

Cash flows used for financing activities: Cash flows used for financing activities were $43.5 million for the six months ended June 30, 2024, compared to $54.6 million for the six months ended June 30, 2023. The decrease in cash flows used for financing activities was primarily due to $11.7 million in lower repayments of long-term debt.

Debt

As of June 30, 2024, the carrying value of our outstanding debt totaled $1.015 billion, which consisted of $321.3 million related to the Senior Secured Term Loan, $270.4 million related to the 2026 Senior Notes, and $423.4 million related to the 2027 Notes (defined below).

The Senior Secured Term Loan bears interest at a per annum rate equal to the Adjusted Term SOFR (which shall not be less than 0.50% per annum) plus a margin equal to 5.00% or an alternate base rate (which shall not be less than 1.50% per annum) plus a margin equal to 4.00%. We are required to repay the Senior Secured Term Loan from time to time with (i) the proceeds of non-ordinary course asset sales and casualty and condemnation events, (ii) the proceeds of indebtedness not permitted under the Senior Secured Term Loan, and (iii) the aggregate amount of cash and cash equivalents on hand at the Company and its restricted subsidiaries in excess of $100 million at the end of each fiscal year of the Company. Subsequent to the amendment effective as of April 8, 2022, the Senior Secured Term Loan is amortized at a rate equal to $15.1 million per quarter (or, if the ratio of debt secured on an equal basis with the Senior Secured Term Loan less unrestricted cash of the Company and its restricted subsidiaries to Consolidated EBITDA (as such terms are defined in the Senior Secured Term Loan) (such ratio, the "First Lien Net Leverage Ratio"), for the most recently ended period of four consecutive fiscal quarters is equal to or less than 1.20 to 1.00, $7.6 million per quarter).

Table of Contents

For the three and six months ended June 30, 2024, we made payments of $21.0 million and $24.3 million, respectively, on our Senior Secured Term Loan (for the six months ended June 30, 2024, such amount was net of the waiver received from certain lenders of the Senior Secured Term loan in the first quarter of 2024), including quarterly amortization payments.

Interest on the 2026 Senior Notes is payable semi-annually in arrears. The 2026 Senior Notes mature on November 1, 2026, unless redeemed or repurchased earlier pursuant to the 2026 Senior Notes Indenture.

Interest on the 6.0% Senior Secured Convertible Notes due 2027 (the "2027 Notes") is payable semi-annually in arrears. The 2027 Notes mature on December 1, 2027, unless earlier repurchased or converted. The 2027 Notes may be converted at any time by the holders into cash, shares of our common stock, par value $0.01 per share (the "Common Stock") or any combination of cash and Common Stock, at our election. The initial conversion rate is 200 shares of Common Stock per $1,000 principal amount of the 2027 Notes, which is equal to a conversion price of $5.00 per share of Common Stock (the "Conversion Price"). For the six months ended June 30, 2024, no shares were issued upon conversion, exercise, or satisfaction of the required conditions.

Our Senior Secured Term Loan, 2026 Senior Notes and 2027 Notes all contain usual and customary covenants and events of default. As of June 30, 2024, we were in compliance with all such covenants and obligations.

Refer to Note 6 — Debt in the notes to the condensed consolidated financial statements for additional discussion regarding our debt.

Additional information

We continue to evaluate our results of operations, liquidity and cash flows, and as part of these measures, we have taken steps to manage cash outflow by rationalizing expenses and implementing various cost management initiatives. We do not presently pay a quarterly dividend and there can be no assurance that we will pay dividends in the future. In addition, the terms of our indebtedness, including the Senior Secured Term Loan, the 2026 Senior Notes Indenture and the 2027 Notes Indenture have terms that restrict our ability to pay dividends.

On February 1, 2022, our Board of Directors authorized the repurchase of up to $100 million (the "Stock Repurchase Program") of our Common Stock. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. The amount and timing of the purchases, if any, will depend on a number of factors, including, but not limited to, the price and availability of our shares, trading volume, capital availability, our performance and general economic and market conditions. The Stock Repurchase Program may be suspended or discontinued at any time. Further, future repurchases under our Stock Repurchase Program may be subject to various conditions under the terms of our various debt instruments and agreements, unless an exception is available or we obtain a waiver or similar relief.

During the three and six months ended June 30, 2024, we did not repurchase any shares of Common Stock under the Stock Repurchase Program. As of June 30, 2024, the remaining authorized amount under the Stock Repurchase Program was approximately $96.9 million. We do not currently anticipate repurchasing any shares of Common Stock pursuant to the Stock Repurchase Program during the third quarter of 2024.

Beginning with the quarter ended December 31, 2022, and ending with the quarter ending September 30, 2024, the Gannett Retirement Plan's (the "GR Plan") appointed actuary has and will certify the GR Plan's funded status for each quarter (the "Quarterly Certification") in accordance with U.S. GAAP. If the GR Plan is less than 100% funded, we will make a $1.0 million contribution to the GR Plan no later than 60 days following the receipt of the Quarterly Certification, provided, however, that our obligation to make additional contractual contributions will terminate the earlier of (a) the day following the date that a contractual contribution would be due for the quarter ending September 30, 2024, and (b) the date we have made a total of $5 million of contractual contributions subsequent to June 30, 2022. As of June 30, 2024, the GR Plan was more than 100% funded.

Table of Contents

We expect our capital expenditures for the remainder of 2024 to total approximately $37 million. These capital expenditures are anticipated to be primarily comprised of projects related to digital product development, costs associated with our print and technology systems, and system upgrades.

Our leverage may adversely affect our business and financial performance and restricts our operating flexibility. The level of our indebtedness and our ongoing cash flow requirements may expose us to a risk that a substantial decrease in operating cash flows due to, among other things, continued or additional adverse economic conditions or adverse developments in our business, could make it difficult for us to meet the financial and operating covenants contained in our Senior Secured Term Loan, the 2026 Senior Notes, and the 2027 Notes. In addition, our leverage may limit cash flow available for general corporate purposes such as capital expenditures as well as share repurchases and acquisitions and our flexibility to react to competitive, technological, and other changes in our industry and economic conditions generally. We continue to closely monitor economic factors, including, but not limited to, the current inflationary market and rising interest rates, and we expect to continue to take the steps necessary to appropriately manage liquidity.

CRITICAL ACCOUNTING ESTIMATES

See our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for a discussion of our critical accounting policies and use of estimates. There have been no material changes to our critical accounting policies and use of estimates discussed in such report.

NON-GAAP FINANCIAL MEASURES

A non-GAAP measure is generally defined as one that purports to measure historical or future financial performance, financial position, or cash flows, but excludes or includes amounts that would not be so excluded or included in the most comparable U.S. generally accepted accounting principles ("U.S. GAAP") measure.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial performance measures we believe offer a useful view of the overall operations of our business. These non-GAAP financial performance measures, which may not be comparable to, and may be defined differently than, similarly titled measures used or reported by other companies, should not be considered in isolation from or as a substitute for the related U.S. GAAP measures and should be read together with financial information presented on a U.S. GAAP basis.

We define Adjusted EBITDA as Net income (loss) attributable to Gannett before (1) Income tax expense (benefit), (2) Interest expense, (3) Gains or losses on the early extinguishment of debt, (4) Non-operating pension income, (5) Loss on convertible notes derivative, (6) Depreciation and amortization, (7) Integration and reorganization costs, (8) Third-party debt expenses and acquisition costs, (9) Asset impairments, (10) Goodwill and intangible impairments, (11) Gains or losses on the sale or disposal of assets, (12) Share-based compensation, (13) Other non-operating (income) expense, net, and (14) Non-recurring items. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total Revenues.

Management's use of Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance under U.S. GAAP and should not be considered in isolation or as an alternative to net income (loss), margin, or any other measure of performance or liquidity derived in accordance with U.S. GAAP. We believe these non-GAAP financial performance measures, as we have defined them, are helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations. These measures provide an assessment of core expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance.

We use Adjusted EBITDA and Adjusted EBITDA margin as measures of our day-to-day operating performance, which is evidenced by the publishing and delivery of news and other media and excludes certain expenses that may not be indicative of our day-to-day business operating results.

Limitations of Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools. They should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings. Material limitations in making the adjustments to our earnings to calculate Adjusted EBITDA and Adjusted EBITDA margin and using these non-GAAP financial measures as compared to U.S. GAAP net income (loss) include: the cash portion of interest/financing expense, income tax (benefit) provision, and charges related to asset impairments, which may significantly affect our financial results.

Table of Contents

Management believes these items are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial performance measures to supplement our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business.

Adjusted EBITDA and Adjusted EBITDA margin are not alternatives to net income (loss), margin, or any other measure of performance or liquidity derived in accordance with U.S. GAAP. As such, they should not be considered or relied upon as substitutes or alternatives for any such U.S. GAAP financial measures. We strongly urge you to review the reconciliation of Net income (loss) attributable to Gannett to Adjusted EBITDA and Adjusted EBITDA margin along with our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. We also strongly urge you not to rely on any single financial performance measure to evaluate our business. In addition, because Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance under U.S. GAAP and are susceptible to varying calculations, the Adjusted EBITDA and Adjusted EBITDA margin measures as presented in this report may differ from and may not be comparable to similarly titled measures used by other companies.

The table below shows the reconciliation of Net income (loss) attributable to Gannett to Adjusted EBITDA and Net income (loss) attributable to Gannett margin to Adjusted EBITDA margin:


	Three months ended June 30,						Six months ended June 30,
In thousands	2024			2023			2024			2023
Net income (loss) attributable to Gannett	$	13,748		$	(12,677)		$	(71,020)		$	(2,333)
(Benefit) provision for income taxes	(26,803)			1,333			(16,725)			(15,996)
Interest expense	26,270			28,559			52,835			56,889
Loss (gain) on early extinguishment of debt	87			—			(530)			(496)
Non-operating pension income	(3,137)			(2,263)			(6,283)			(4,078)
Depreciation and amortization	38,258			39,784			76,556			83,482
Integration and reorganization costs	19,775			7,287			37,656			19,414
Third-party debt expenses and acquisition costs	248			229			426			458
Asset impairments	—			1,177			45,989			1,182

Loss (gain) on sale or disposal of assets, net	236			146			788			(17,535)
Share-based compensation expense	3,512			5,047			6,338			8,783
Other non-operating (income) expense, net	(2,609)			(807)			(792)			414
Non-recurring items	4,977			3,336			6,913			3,869
Adjusted EBITDA (non-GAAP basis)	$	74,562		$	71,151		$	132,151		$	134,053
Net income (loss) attributable to Gannett margin	2.1		%	(1.9)		%	(5.6)		%	(0.2)		%
Adjusted EBITDA margin (non-GAAP basis)	11.7		%	10.6		%	10.4		%	10.0		%

KEY PERFORMANCE INDICATORS

A key performance indicator ("KPI") is generally defined as a quantifiable measurement or metric used to gauge performance, specifically to help determine strategic, financial, and operational achievements, especially compared to those of similar businesses.

We define Digital-only ARPU as digital-only subscription average monthly revenues divided by the average digital-only paid subscriptions within the respective period. We define Core platform ARPU as core platform average monthly revenues divided by average monthly customer count within the period. We define Core platform revenues as revenue derived from customers utilizing our proprietary digital marketing services platform that are sold by either our direct or local market teams.

Management believes Digital-only ARPU, Core platform ARPU, digital-only paid subscriptions, Core platform revenues and core platform average customer count are KPIs that offer useful information in understanding consumer behavior, trends in our business, and our overall operating results. Management utilizes these KPIs to track and analyze trends across our segments.

Table of Contents

The following tables provide information regarding certain KPIs for the Domestic Gannett Media, Newsquest and DMS segments:


	Three months ended June 30,								Six months ended June 30,
In thousands, except ARPU	2024		2023		Change		% Change		2024		2023		Change		% Change
Domestic Gannett Media
Digital-only ARPU	$	7.70	$	6.34	$	1.36	21	%	$	7.49	$	6.16	$	1.33	22	%

Newsquest
Digital-only ARPU	$	5.94	$	6.61	$	(0.67)	(10)	%	$	5.99	$	6.45	$	(0.46)	(7)	%

Total Gannett
Digital-only ARPU	$	7.62	$	6.35	$	1.27	20	%	$	7.43	$	6.17	$	1.26	20	%

DMS
Core platform revenues	$	122,843	$	121,574	$	1,269	1	%	$	238,893	$	232,981	$	5,912	3	%
Core platform ARPU	$	2,777	$	2,642	$	135	5	%	$	2,738	$	2,590	$	148	6	%
Core platform average customer count	14.7		15.3		(0.6)		(4)	%	14.5		15.0		(0.5)		(3)	%


	As of June 30,
In thousands	2024	2023	% Change
Digital-only paid subscriptions
Domestic Gannett Media	1,938	1,886	3	%
Newsquest	96	66	45	%
Total Gannett	2,034	1,952	4	%

Table of Contents

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk, including from changes in interest rates, commodity prices, and foreign currency exchange rates. Changes in these factors could cause fluctuations in earnings and cash flow. In the normal course of business, exposure to certain of these market risks is managed as described below.

Interest Rates

We generally manage our risk associated with changes in interest rates through the use of a combination of variable and fixed-rate debt. As of June 30, 2024, we had variable and fixed-rate debt totaling $326.1 million and $763.8 million, respectively. Our variable-rate debt consisted of the Senior Secured Term Loan, which bears interest at the Adjusted Term Secured Overnight Financing Rate. A hypothetical interest rate increase of 100 basis points would have increased our interest expense related to our variable-rate debt and likewise decreased our income and cash flows by approximately $0.8 million and $1.6 million for the three and six months ended June 30, 2024, respectively. See Note 6 — Debt to our condensed consolidated financial statements for further discussion of our debt.

Commodity Prices

Certain operating expenses of ours are sensitive to commodity price fluctuations, as well as inflation. Our primary commodity price exposures are newsprint and, to a lesser extent, ink, which in the aggregate represented approximately 3.1% of operating expenses for each of the three and six months ended June 30, 2024, and 4.6% and 4.9% of operating expenses for the three and six months ended June 30, 2023, respectively. A hypothetical $10 per metric ton increase in newsprint price would not have materially impacted our results of operations or cash flows based on newsprint usage for the three and six months ended June 30, 2024 of approximately 24 thousand and 49 thousand metric tons, respectively.

Foreign Currency

We are exposed to foreign exchange rate risk due to our operations in the U.K., for which the British pound sterling is the functional currency. We are also exposed to foreign exchange rate risk due to our DMS segment which has operating activities denominated in currencies other than the U.S. dollar, including the Australian dollar, Canadian dollar, Indian rupee, and New Zealand dollar.

Translation gains or losses affecting the condensed consolidated financial statements have not been significant in the past. At June 30, 2024 and 2023, cumulative foreign currency translation losses reported as part of equity were $2.1 million and $2.7 million, respectively. The fluctuation in cumulative foreign currency translation losses was driven by the impact of changing exchange rates, primarily due to the British pound sterling. A hypothetical 10% fluctuation of the price of the British pound sterling and the currencies in our DMS segment against the U.S. dollar would not have materially impacted operating income for the three and six months ended June 30, 2024.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), as of the end of the period covered by this Quarterly Report on Form 10-Q under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures were effective in recording, processing, summarizing and reporting on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information regarding legal proceedings may be found in Note 11 — Commitments, contingencies, and other matters — Legal proceedings of the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors described in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information regarding shares withheld from our employees to satisfy certain tax obligations in connection with the vesting of restricted stock awards during the three months ended June 30, 2024. The shares of common stock withheld to satisfy tax withholding obligations may be deemed purchases of such shares required to be disclosed pursuant to this Item 2. We did not repurchase any of our equity securities in the open market during the three months ended June 30, 2024.


In thousands, except per share amounts	Total number of shares purchased (a)	Average price paid per share (a)		Total number of shares purchased as part of publicly announced program (b)	Maximum approximate dollar value of shares that may yet be purchased under the Stock Repurchase Program (b)
Period
April 1, 2024 - April 30, 2024	—	$	—	—	$	—
May 1, 2024 - May 31, 2024	—	$	—	—	$	—
June 1, 2024 - June 30, 2024	130	$	4.40	—	$	—
Total	130	$	4.40	—	$	—

(a)Represents shares of Common Stock withheld pursuant to the 2023 Stock Incentive Plan to cover employee tax-withholding obligations upon vesting of restricted stock awards in the second quarter of 2024. Amounts in the average price paid per share column reflect the weighted average price for shares withheld in satisfaction of these tax-withholding obligations.

(b)In February 2022, the Company's Board of Directors authorized the repurchase of up to $100 million of Common Stock (the "Stock Repurchase Program"). Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. During the three months ended June 30, 2024, the Company did not repurchase any shares of Common Stock under the Stock Repurchase Program. As of June 30, 2024, the remaining authorized amount under the Stock Repurchase Program was approximately $96.9 million. The Company does not anticipate repurchasing any shares of Common Stock pursuant to the Stock Repurchase Program during the third quarter of 2024.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

This item is not applicable.

ITEM 5. OTHER INFORMATION

None.

Table of Contents

ITEM 6. EXHIBITS

Exhibit Number

Description

Location

3.1

Amended and Restated Certificate of Incorporation of the Company.

Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q, filed August 2, 2018.

3.2

Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company.

Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed November 20, 2019.

3.3

Certificate of Designation of Series A Junior Participating Preferred Stock of Gannett Co., Inc.

Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed April 7, 2020.

3.4

Certificate of Elimination of the Series A Junior Participating Preferred Stock of Gannett Co., Inc.

Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed May 8, 2023.

3.5

Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, dated June 3, 2024.

Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed June 4, 2024.

10.1

Form of Indemnification Agreement.*

Incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q, filed May 2, 2024.

31.1

Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.

Filed herewith.

31.2

Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.

Filed herewith.

32.1

Section 1350 Certification of Principal Executive Officer.

Furnished herewith.

32.2

Section 1350 Certification of Principal Financial Officer.

Furnished herewith.

101

The following financial information from Gannett Co., Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations and Comprehensive Income; (iii) Condensed Consolidated Statements of Cash Flow; (iv) Condensed Consolidated Statements of Equity; and (v) Notes to Condensed Consolidated Financial Statements

Attached.

104

Cover Page Interactive Data File (formatted as Inline XBRL and embedded within the Inline XBRL document)

Attached.

Management contract or compensatory plan or arrangement.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Date: August 1, 2024			GANNETT CO., INC.

			/s/ Douglas E. Horne
			Douglas E. Horne
			Chief Financial Officer
			(On behalf of the Registrant and as principal financial officer)

EX-31.1 2 gci-20240630xex31x1.htm EX-31.1 Document

EXHIBIT 31-1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Michael E. Reed, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Gannett Co., Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: August 1, 2024

/s/ Michael E. Reed
Michael E. Reed
President and Chief Executive Officer
(principal executive officer)

EX-31.2 3 gci-20240630xex31x2.htm EX-31.2 Document

EXHIBIT 31-2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Douglas E. Horne, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Gannett Co., Inc.;

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: August 1, 2024

/s/ Douglas E. Horne
Douglas E. Horne
Chief Financial Officer (principal financial officer)

EX-32.1 4 gci-20240630xex32x1.htm EX-32.1 Document

EXHIBIT 32-1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Gannett Co., Inc. (“Gannett”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael E. Reed, President and Chief Executive Officer of Gannett, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Gannett.


/s/ Michael E. Reed

Michael E. Reed

President and Chief Executive Officer

(principal executive officer)

August 1, 2024

EX-32.2 5 gci-20240630xex32x2.htm EX-32.2 Document

EXHIBIT 32-2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Gannett Co., Inc. (“Gannett”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Douglas E. Horne, Chief Financial Officer of Gannett, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Gannett.


/s/ Douglas E. Horne

Douglas E. Horne

Chief Financial Officer (principal financial officer)

August 1, 2024