Lee Enterprises Inc (LEE) 2026 Q2 法說會逐字稿

Welcome to the Lee Enterprises 2026 second quarter webcast and conference call. The call is being recorded and will be available for replay at investors.lee.net. (Operator instructions) on after the call. A link to the live webcast can be found at investors.lee.net. I will now turn the call over to your host, Jared Marks, Vice President, Finance.

歡迎收看 Lee Enterprises 2026 會計年度第二季網路直播與電話會議。本次電話會議將被錄音，並將於會後在 investors.lee.net 提供重播。（接線員指示）於會後提供。直播連結可於 investors.lee.net 找到。現在我將把電話會議交給本次主持人——財務副總裁 Jared Marks。

Thank you, and good morning, everyone. We appreciate you joining us today. With me on this morning's call are Nathan Bekke, President and Chief Executive Officer; Josh Rinehults, Vice President, Chief Financial Officer and Treasurer; Joe Battistoni, Chief Revenue Officer; and David Hoffman, Chairman of our Board of Directors.

謝謝，各位早安。感謝各位今天加入我們。今天早上的電話會議與我一同出席的有：總裁兼執行長 Nathan Bekke；副總裁、財務長兼財務主管（Treasurer）Josh Rinehults；營收長 Joe Battistoni；以及董事會主席 David Hoffman。

Earlier today, we issued a news release announcing preliminary results for our second fiscal quarter of 2026. The release and accompanying presentation are available at investors.lee.net. As a reminder, this morning's discussion will include forward-looking statements based on current expectations.

今天稍早，我們發布新聞稿，公布 2026 會計年度第二季的初步結果。新聞稿與隨附簡報可於 investors.lee.net 取得。提醒各位，今天早上的討論將包含以前瞻性陳述為主，係基於目前的預期。

These statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ. Such factors are described in this morning's news release and in our SEC filings. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in the tables accompanying the release.

這些陳述可能受到特定風險、趨勢與不確定性影響，致使實際結果有所差異。相關因素已於今早新聞稿及我們向 SEC 提交的文件中說明。我們也將提及若干非 GAAP 財務衡量指標。與最直接可比之 GAAP 指標的調節表已包含於新聞稿隨附表格中。

With that, I'll turn the call over to our Chairman, David Hoffman.

接下來，我將把電話會議交給我們的董事會主席 David Hoffman。

Thank you, Jared, and good morning, and thank you for joining us. As I open this call, I'd like to say that it's a privilege to step into this role at a company with more than a century of service to its communities, its shareholders, and the enduring importance of local journalism.

謝謝你，Jared，各位早安，也感謝各位加入我們。在我開始本次電話會議時，我想說，能在一家已服務其社區與股東逾百年、並持續彰顯在地新聞重要性的公司擔任此職務，是一項榮幸。

Lee's legacy is strong, but as important is the decisive transformation that is now underway at our company. I'd like to spend a few moments to frame the vision for Lee's next chapter. We are a different company than we were even a year ago, more focused, more accountable, and more closely connected to the communities we serve.

Lee 的傳承十分深厚，但同樣重要的是，我們公司目前正在推進果斷的轉型。我想花幾分鐘為 Lee 下一個篇章的願景定調。我們已不同於一年前的自己——更聚焦、更具問責性，也與我們所服務的社區連結更緊密。

We are thinking more expansively about our role in local media and our path to long-term growth. That has required meaningful change, deliberate and at times difficult, but meaningful to position Lee for a stronger and more sustainable future. Delivering on that vision requires strong leadership and clear alignment at the top.

我們以更宏觀的角度思考我們在在地媒體中的角色，以及邁向長期成長的路徑。這需要實質性的改變——有計畫、且有時艱難，但對於讓 Lee 站上更強健、更可持續的未來至關重要。實現該願景需要強而有力的領導與高層清晰一致的方向。

I'm very happy to share, following a comprehensive nationwide search, the Board and myself concluded that the right leadership for Lee's future was already in place. Nathan and Josh have demonstrated strong execution, deep industry knowledge, and a clear vision of where the company is headed.

我很高興分享，在完成一項全面的全國性徵才搜尋後，董事會與我一致認為，帶領 Lee 邁向未來的合適領導其實早已就位。Nathan 與 Josh 展現了強勁的執行力、深厚的產業知識，以及對公司前進方向的清晰願景。

Just as importantly, they've built alignment across the organization and already translating that into action across the business. Coming back to the vision for Lee's next chapter, let me start with one of our most important priorities, reconnecting with our communities.

同樣重要的是，他們已在整個組織建立一致性，並且正把這份一致性轉化為全公司各項業務的行動。回到 Lee 下一個篇章的願景，讓我先從我們最重要的優先事項之一談起：重新與我們的社區建立連結。

Over the past several months, I've been on the road with our leadership team conducting town hall meetings across our markets. These weren't symbolic visits. They were working sessions. We listened carefully to readers, advertisers, and community stakeholders and leaders. What we heard were gaps in local news coverage, areas where communities felt underserved.

過去幾個月，我與領導團隊走訪各地市場，舉辦市民大會（town hall）會議。這些不是象徵性的拜訪，而是工作會議。我們仔細聆聽讀者、廣告主，以及社區利害關係人與領袖的意見。我們聽到的是在地新聞報導存在缺口，有些領域讓社區覺得未被充分服務。

We've already begun to address those gaps by reinvesting in local journalism, including adding reporters in key markets to fill those holes. That work, we believe, is foundational to who we are, and it's where our turnaround begins.

我們已開始透過再投資在地新聞來補足這些缺口，包括在關鍵市場增聘記者以填補空白。我們相信，這項工作是我們身分的基石，也是我們扭轉局勢的起點。

At the same time, we've taken a disciplined approach to our cost structure. We are committed to being strong stewards of capital, and that starts at the top of the organization. Just recently, the Board has shifted its compensation structure to be 100% equity-based, aligning more directly with long-term shareholder value.

同時，我們也以嚴謹的方式管理成本結構。我們致力於成為資本的良好管理者，而這必須從組織高層做起。就在最近，董事會已將其薪酬結構調整為 100% 以股權為基礎，使其與長期股東價值更直接對齊。

A similar structure was put in place for our top 120 executives. We've also reduced corporate overhead and simplified our operating model, ensuring that many resources are directed to the front lines of the business, more resources, prioritizing our content and our customers.

我們也為前 120 位高階主管採用類似的結構。我們同時降低公司總部間接費用並簡化營運模式，確保更多資源能投入業務第一線——更多資源，優先用於我們的內容與客戶。

We're also producing more local content that is important to our readers. We recently launched Community Center, which is a free collection of publicly available content covering everything from municipal news releases to local real estate listings. Another area where we see real opportunity for differentiation is local sports.

我們也正在產出更多對讀者重要的在地內容。我們近期推出了 Community Center，這是一個免費的公開內容集合，涵蓋從市政新聞稿到在地房地產刊登資訊等各類內容。另一個我們看到具備真正差異化機會的領域是地方體育。

Through our partnership with Hudl, we are expanding and enhancing our coverage of high school and local sports. This is deeply relevant, highly engaging content for our communities. It's just yet another example of how we're investing where it matters most to our audience.

透過與 Hudl 的合作夥伴關係，我們正在擴大並強化對高中與地方體育的報導。這對我們的社區高度相關、互動性強。這也再次展現我們如何在最重要、最能影響受眾的地方進行投資。

And finally, I'll occasionally contribute a column sharing my perspective on opportunities to build stronger communities. Looking further ahead, we are actively developing a disciplined acquisition strategy. We believe there are opportunities to expand Lee's footprint in ways that make both strategic and financial sense.

最後，我也會不定期撰寫專欄，分享我對於打造更強健社區之機會的觀點。展望更長遠的未來，我們正積極制定一套嚴謹的併購策略。我們相信，有機會以兼具策略與財務合理性的方式擴大 Lee 的版圖。

Our focus will be on markets and assets that strengthen our commitment to local journalism while enhancing our overall scale and efficiency. We will be thoughtful and selective but insistent in our efforts to grow the business. Underlying all this is a clear financial priority, conserving cash and strengthening our balance sheet.

我們將聚焦於能強化我們對在地新聞承諾、同時提升整體規模與效率的市場與資產。我們會審慎且有選擇性，但也會堅定推動業務成長。支撐這一切的是明確的財務優先事項：保留現金並強化資產負債表。

We are managing liquidity carefully, improving operational efficiency daily and ensuring we have the financial flexibility to execute our strategy. That provides stability today and optionality for the future. I'm very confident in the direction we're headed, grounded in local journalism, disciplined in operations, and ambitious about our future.

我們正謹慎管理流動性、每日提升營運效率，並確保我們具備執行策略所需的財務彈性。這為當下提供穩定性，也為未來保留選擇權。我對我們前進的方向非常有信心——以在地新聞為根基、以紀律化營運為準則，並對未來抱持雄心。

With that, I'll pass it over to Nathan, our Chief Executive Officer.

接下來，我將把電話會議交給我們的執行長 Nathan。

Good morning, everyone, and thank you for joining the call today. I'd like to start today by thanking David for his investment in Lee and more importantly, for his commitment to local journalism and the communities we serve. As David mentioned, we're entering this next phase of the business from a position of strength and optimism.

各位早安，感謝各位今天加入電話會議。我想先感謝 David 對 Lee 的投入，更重要的是，他對在地新聞與我們所服務社區的承諾。如 David 所提到的，我們正以強勁與樂觀的姿態進入業務的下一階段。

Our strategy is clear, execution is gaining momentum, and our results are beginning to reflect the progress we've made. We are a leading provider of high-quality local news, information, and advertising with 114 daily and weekly publications.

我們的策略清晰，執行正加速推進，而我們的成果也開始反映我們所取得的進展。我們是高品質在地新聞、資訊與廣告的領先供應商，擁有 114 份日報與週報出版品。

Our strength is rooted in trusted local journalism delivered through a digital-first model that continues to deepen audience engagement and provide value to advertisers. Over the past 12 months, digital-only subscription revenue grew 7%, further strengthening our mix of sustainable and recurring revenue.

我們的優勢根植於值得信賴的在地新聞，並透過數位優先（digital-first）的模式傳遞，持續深化受眾互動並為廣告主創造價值。過去 12 個月，純數位訂閱收入成長 7%，進一步強化我們可持續且具經常性的收入組合。

At the same time, we've maintained disciplined cost management across the organization, particularly in legacy costs and corporate overhead. The combination of those efforts has driven adjusted EBITDA to $57 million over the last 12 months, reflecting both improved efficiency and structural improvement in the business.

同時，我們在全組織維持嚴謹的成本管理，特別是在傳統（legacy）成本與公司總部間接費用方面。這些努力的結合，推動過去 12 個月調整後 EBITDA 達到 5,700 萬美元，反映出效率提升以及業務結構性的改善。

Second quarter adjusted EBITDA grew 95% year-over-year. That level of growth reflects extremely strong execution and the accelerating progress of our digital transformation. We also recognized $4 million in business interruption insurance proceeds related to last year's cyber event.

第二季調整後 EBITDA 年增 95%。這樣的成長幅度反映出極為強勁的執行力，以及我們數位轉型進程的加速。我們也認列了 400 萬美元與去年資安事件相關的營運中斷保險理賠收入。

The magnitude of these reimbursements underscores the significant impact the cyber event had on prior year results and its continued effect on our operations, while also reflecting the diligent efforts of our team to secure these recoveries. While those proceeds contributed to the quarter, it's important to note that even excluding them, second quarter adjusted EBITDA grew 45% year-over-year, reflecting underlying operational strength.

這些補償款項的規模凸顯該資安事件對前一年度結果造成的重大影響，以及其對我們營運的持續影響，同時也反映我們團隊為取得這些回收款項所付出的勤勉努力。雖然這些理賠收入對本季有所貢獻，但重要的是，即使排除該等收入，第二季調整後 EBITDA 仍年增 45%，反映出基本面的營運實力。

The strong second quarter growth builds off our solid first quarter and now year-to-date through March, we've delivered a 78% increase in adjusted EBITDA, an improvement of $12 million year-over-year, driven by diligent cost management while continuing to advance our digital strategy.

強勁的第二季成長延續了我們穩健的第一季表現；截至三月的年初至今，我們已實現調整後 EBITDA 成長 78%，較去年同期改善 1,200 萬美元，主要受惠於嚴謹的成本管理，同時持續推進我們的數位策略。

Absent business interruption insurance proceeds, our adjusted EBITDA growth was 40% or $6 million year-over-year in the first half. These results highlight our ability to expand profitability while navigating industry change, particularly demonstrated over the last four quarters of adjusted EBITDA growth on a comparable basis.

若不計入營業中斷保險理賠收入，我們上半年調整後 EBITDA 較去年同期成長 40%，或增加 600 萬美元。這些結果凸顯我們在因應產業變革的同時仍能擴大利潤的能力，尤其體現在過去四個季度以可比基礎計算的調整後 EBITDA 持續成長。

Our standout performance in the second quarter was highlighted by adjusted EBITDA nearly doubling year-over-year to $15 million, with margin expanding 670 basis points. This improvement was driven primarily by decisive cost actions. Cash costs declined 15% or $19 million, with meaningful reductions across SG&A and print-related expenses.

我們第二季的亮眼表現，體現在調整後 EBITDA 較去年同期幾乎翻倍至 1,500 萬美元，且利潤率擴張 670 個基點。此改善主要由果斷的成本措施所驅動。現金成本下降 15% 或 1,900 萬美元，SG&A 與印刷相關費用均出現顯著下降。

From a revenue perspective, digital revenue now represents 56% of total company revenue, up 270 basis points year-over-year and now accounts for 74% of total advertising revenue, underscoring the growing importance of our digital offerings.

從營收角度來看，數位營收目前占公司總營收的 56%，較去年同期提升 270 個基點，且現已占總廣告營收的 74%，凸顯我們數位產品的重要性日益提升。

On the digital subscription side, we ended the quarter with 591,000 digital-only subscribers and $22 million in revenue. Year-over-year comparisons were impacted by a couple of factors tied to last year's cyber event. Units continue to be challenged compared to the prior year, particularly due to lost starts during the impact period from last year's cyber event in addition to other processing limitations. All things considered, lapping the cyber event had a negative impact on our second quarter's revenue. As we move beyond those impacts, we view this quarter as a clean baseline moving forward.

在數位訂閱方面，本季末我們的純數位訂閱戶達 591,000 名，營收為 2,200 萬美元。年對年比較受到與去年資安事件相關的幾項因素影響。與去年相比，訂閱量仍持續承壓，特別是因去年資安事件影響期間的新增訂閱流失，以及其他處理限制所致。綜合而言，跨越資安事件的比較基期對我們第二季營收造成負面影響。隨著我們逐步走出這些影響，我們將本季視為未來的乾淨基準。

We remain focused on building and growing high-quality recurring subscription revenue. In digital advertising revenue, we saw sequential improvement for the second consecutive quarter. The second quarter saw a 2-percentage-point improvement in same-store revenue trends compared to the prior quarter.

我們仍專注於建立並成長高品質的經常性訂閱營收。在數位廣告營收方面，我們連續第二季看到環比改善。第二季同店營收趨勢較上一季改善 2 個百分點。

While revenue declined modestly year-over-year, trends are stabilizing. Importantly, we continue to prioritize profitability over volume, which included the intentional exit of certain lower-margin advertisers and products that impacted top line revenue but had minimal impact to adjusted EBITDA.

雖然營收年對年小幅下滑，但趨勢正在趨於穩定。重要的是，我們持續將獲利能力置於量的優先順序之上，其中包括有意退出部分低毛利的廣告主與產品，這雖影響營收規模，但對調整後 EBITDA 的影響極小。

Our team is focused on profitable growth, which Joe will expand on momentarily. Before turning it over to Joe, I'll briefly touch on the balance sheet and our improved capital structure. Following the close of the strategic investment mid-second quarter, our cash balance surged to $53 million as of March.

我們的團隊專注於獲利性成長，Joe 稍後會進一步說明。在交棒給 Joe 之前，我先簡要談談資產負債表以及我們改善後的資本結構。隨著第二季中期策略性投資完成交割，截至三月我們的現金餘額躍升至 5,300 萬美元。

This strong baseline of cash provides us the opportunity to make targeted investments in high ROI areas that will drive improved content and subscriber engagement, acquisition and monetization. Additionally, interest expense decreased $2.4 million year-over-year as a direct result of the interest rate reduction from 9% to 5%, with further benefits expected in the coming quarters.

這樣強勁的現金基礎，使我們有機會在高投資報酬率（ROI）領域進行精準投資，以推動內容提升與訂戶互動、獲客與變現。此外，由於利率自 9% 降至 5%，利息費用較去年同期減少 240 萬美元，且預期未來幾季仍將帶來進一步效益。

With that, I'll hand it over to Joe to add some additional context to our subscription and advertising revenue performance.

接下來我把時間交給 Joe，請他就我們訂閱與廣告營收表現補充更多背景。

Thanks, Nathan, and glad to join the call this morning. From a revenue strategy standpoint, I'll start on the subscription side. Our digital growth strategy is centered on building the audience funnel with a focus on higher intent, more engaged users.

謝謝你，Nathan，也很高興今天早上加入這通電話。從營收策略角度來看，我先從訂閱端談起。我們的數位成長策略核心，是建立受眾漏斗，聚焦於意圖更高、參與度更強的使用者。

This reflects a move away from relying on algorithm-driven traffic toward focusing on our own platforms with repeatable channels that generate stronger, more consistent engagement. We are driving higher conversion and retention by applying data-driven insights and targeted product enhancements that grow customer lifetime value.

這反映出我們正從依賴演算法驅動的流量，轉向更聚焦於自有平台，透過可複製的渠道帶來更強、更一致的互動。我們運用數據驅動洞察與精準的產品優化，提升轉換與留存，進而提高客戶終身價值。

At the same time, we're scaling efficiently using AI and streamlined workflows to reduce acquisition costs while accelerating growth in our digital subscription base. Today, we reach millions of users across our markets. Our opportunity is to deepen those relationships, converting and retaining more of that audience as long-term subscribers.

同時，我們透過 AI 與精簡流程有效擴張，在降低獲客成本的同時，加速數位訂閱基礎的成長。如今，我們在各市場觸及數百萬名使用者。我們的機會在於深化這些關係，將更多受眾轉化並留存為長期訂戶。

As Nathan mentioned earlier, this quarter was hindered a bit by some of the fallout of the cyber incident last year. We know there is growth potential over the long term, and our primary focus is the consumer. Serving our local communities with high-quality local news with the best experience in the ways that matter most to them. Our advantage is being intensely local. There's a lot in store for Lee Enterprises on the subscription side of the house.

如 Nathan 先前提到，本季仍受到去年資安事件後續影響而略有拖累。我們知道長期仍具成長潛力，而我們的首要聚焦是消費者：以他們最重視的方式，提供最佳體驗的高品質在地新聞，服務我們的在地社群。我們的優勢在於高度在地化。Lee Enterprises 在訂閱端還有很多值得期待的布局。

We're executing several exciting initiatives in the second half of fiscal year 2026, all focused on expanding content offerings, driving new users, and improving the consumer experience. On the advertising side, the landscape continues to evolve, and our approach is grounded in profitability and long-term value. We are seeing early signs of stabilization with sequential improvement in revenue trends.

我們正在 2026 會計年度下半年推動多項令人振奮的計畫，皆聚焦於擴充內容供給、帶動新使用者成長並改善消費者體驗。在廣告端，市場環境持續演變，而我們的方法以獲利能力與長期價值為根基。我們已看到營收趨勢環比改善的初步穩定跡象。

At the same time, we're not chasing commoditized ad dollars. We are being disciplined, prioritizing higher margin, more sustainable revenue and reviewing and exiting lower-quality opportunities. Through Amplified Digital Agency, we deliver full funnel AI-enabled marketing services that help advertisers increase customer lifetime value and grow their business.

同時，我們不追逐商品化的廣告預算。我們保持紀律，優先布局毛利更高、可持續性更強的營收，並檢視與退出較低品質的機會。透過 Amplified Digital Agency，我們提供全漏斗、AI 賦能的行銷服務，協助廣告主提升客戶終身價值並擴大業務。

This year, we're sharply focused on delivering a more complete integrated solution for advertisers, especially across multiple products. Our full product suite remains a key differentiator, enabling us to meet a broader range of advertiser needs in one place. In last quarter's call, Nathan introduced our strategic partnership with Hudl, a leader in sports technology, video analysis, and data.

今年，我們高度聚焦於為廣告主提供更完整的整合式解決方案，特別是跨多項產品。我們完整的產品組合仍是關鍵差異化優勢，使我們能在同一平台滿足更廣泛的廣告主需求。在上一季的電話會議中，Nathan 介紹了我們與 Hudl 的策略合作夥伴關係；Hudl 是運動科技、影片分析與數據領域的領導者。

David also mentioned it earlier in today's call. I'd like to echo their excitement regarding this partnership, which represents one of the largest collaborations in local sports media and aligns with our mission to serve our communities with high school sports coverage at the core.

David 今天稍早也提到這點。我想呼應他們對此合作的期待；這代表在地運動媒體領域最大規模的合作之一，並與我們的使命一致——以高中體育報導為核心服務我們的社群。

Our partnership with Hudl will enable us to serve our communities better by adding video and free access to remarkable local sports content. Hudl also strengthens our ability to connect advertisers with highly engaged local audience at scale. By aligning with a platform that sits at the center of community sports, we give our clients direct access to passionate fans, families, and athletes, creating a more relevant, impactful advertising opportunities.

我們與 Hudl 的合作將透過新增影片與對卓越在地體育內容的免費存取，讓我們能更好地服務社群。Hudl 也強化我們以規模化方式，將廣告主與高度投入的在地受眾連結起來的能力。透過與位於社群運動核心的平台對齊，我們讓客戶能直接觸及熱情的球迷、家庭與運動員，創造更具相關性與影響力的廣告機會。

Also touching briefly on initiatives like America's 250th birthday coming up this July, Community Center and Vidmax, these are fantastic examples that further support how we're expanding higher-value, differentiated advertising opportunities. We're leveraging our owned audience and our local market strength to deliver premium brand-safe environments that drive stronger engagement for our advertisers.

另外簡要提及像是今年七月即將到來的美國 250 週年、Community Center 與 Vidmax 等計畫，這些都是極佳的例子，進一步支持我們如何擴大更高價值、差異化的廣告機會。我們正運用自有受眾與在地市場優勢，提供優質、品牌安全的環境，為廣告主帶來更強的互動。

They also enable a more integrated multi-platform campaigns, increasing client retention and deepening relationships through multichannel solutions. Collectively, these offerings support our shift toward higher-margin recurring digital revenue built on unique content and first-party data. Ultimately, these efforts support our broader goal, to build a more predictable, higher-margin digital advertising business.

它們也使更整合的多平台行銷活動成為可能，透過多渠道解決方案提升客戶留存並深化關係。整體而言，這些產品與服務支持我們轉向以獨特內容與第一方數據為基礎的高毛利、經常性數位營收。最終，這些努力支持我們更宏觀的目標：打造更可預測、毛利更高的數位廣告業務。

With that, I'll pass it back to Nathan.

接下來我把時間交回給 Nathan。

Stepping back, it's worth highlighting the strength and stability of our digital growth, especially considering the challenging landscape within the industry. Over the past several years, we've delivered consistent expansion in digital revenue, supported by both subscription and agency growth.

退一步來看，值得強調的是我們數位成長的強度與穩定性，尤其是在產業環境充滿挑戰的情況下。過去幾年，我們在訂閱與代理業務成長的支撐下，持續擴張數位營收。

Over the last three years, our digital subscription revenue has grown 25% annually, while our digital agency business has shown tremendous resiliency in a tough operating climate, growing 5% annually. Together, this has yielded a strong foundation of $290 million in total digital revenue over the last 12 months, representing 4% annualized growth over the past three years.

過去三年，我們的數位訂閱營收每年成長 25%，而我們的數位代理業務在艱困的營運環境下展現出極強韌性，每年成長 5%。合計之下，過去 12 個月我們的數位總營收達 2.90 億美元，代表過去三年年化成長 4%，奠定了強勁的基礎。

While the broader industry remains under pressure, our focus on local markets, owned audiences, and recurring revenue streams has positioned us to perform competitively. Our focus is not just on top line growth, but about improving the quality and margin profile of our revenue.

儘管整體產業仍面臨壓力，我們專注於在地市場、自有受眾以及經常性收入來源，使我們得以保持具競爭力的表現。我們的重點不僅在於營收規模成長，更在於提升營收的品質與毛利結構。

As we continue to execute, we believe this differentiated approach will drive sustainable performance over the long term. This slide further illustrates the long-standing progress we've made in building a more sustainable and higher quality digital revenue base. Over the past six years, we've gone from a print dependent to digital dominant.

隨著我們持續推進執行，我們相信這種差異化作法將在長期帶來可持續的表現。本頁進一步說明我們在建立更可持續且更高品質的數位營收基礎方面所取得的長期進展。過去六年，我們已從依賴印刷轉為以數位為主。

Digital revenue has grown from a minority of the business, 21% back in 2020 to 56% as of our second quarter, a clear and measurable shift. Digital is no longer a growth initiative, but the core engine of our business, and it will continue to drive both revenue expansion and margin improvement.

數位營收已從業務中的少數占比（2020 年為 21%）成長至截至第二季的 56%，這是一個清楚且可衡量的轉變。數位不再只是成長倡議，而是我們業務的核心引擎，並將持續推動營收擴張與毛利率改善。

Over time, this transition positions us to operate as a predominantly digital business with significantly reduced reliance on print. Our focus remains on strengthening our digital products, enhancing audience engagement, and building scalable capabilities that position the company for sustained performance in the digital media landscape.

隨著時間推移，這項轉型使我們得以以主要為數位的業務模式運作，並大幅降低對印刷的依賴。我們仍將重點放在強化數位產品、提升受眾互動，以及建立可擴展的能力，使公司在數位媒體版圖中維持長期表現。

We are focused on scaling these core drivers while continuing to optimize pricing, product mix, and customer lifetime value. As we execute, digital will continue to expand as the primary engine of our growth and profitability. And with that, I'll hand it over to Josh to provide some additional financial performance details.

我們專注於擴大這些核心驅動因素，同時持續優化定價、產品組合與客戶終身價值。隨著我們推進執行，數位將持續擴大，成為我們成長與獲利的主要引擎。接下來我把時間交給 Josh，請他補充一些財務表現的細節。

Thanks, Nathan. As Nathan said, we have made significant progress in our digital transformation. We are not only transforming our business, we are also strengthening our financial foundation. From a long-term execution standpoint, our digital business continues to scale toward a key milestone, where digital gross margins fully cover our SG&A costs. We've made meaningful progress since the start of our digital transformation, and our current trajectory gives us a clear achievable path forward.

謝謝你，Nathan。正如 Nathan 所說，我們在數位轉型方面已取得顯著進展。我們不僅在轉型業務，也在強化我們的財務基礎。從長期執行的角度來看，我們的數位業務持續擴張，朝向一個關鍵里程碑邁進：數位毛利可完全覆蓋我們的 SG&A 成本。自數位轉型開始以來，我們已取得實質進展，而目前的發展軌跡也讓我們清楚看到一條可達成的前進路徑。

Year-to-date through March, core digital revenue has grown at a 9% annual rate from fiscal '21, to fiscal '26, with digital gross margins expanding at a similar pace. This continued shift from print to higher-margin digital revenue is strengthening the underlying economics of our business.

截至 3 月的年初至今，核心數位營收自 2021 會計年度至 2026 會計年度以 9% 的年化成長率成長，數位毛利亦以相近速度擴張。這種從印刷轉向高毛利數位營收的持續轉移，正在強化我們業務的基本經濟性。

At our current pace, we expect digital revenue and margins to fully support our entire business within three years. Our confidence in reaching that milestone continues to build as we realize the benefits of our transformational initiatives and maintain disciplined execution across both revenue growth and cost management.

以目前的步調，我們預期在三年內，數位營收與毛利將能完全支撐我們整體業務。隨著我們實現轉型計畫的效益，並在營收成長與成本管理兩方面維持紀律化執行，我們對達成該里程碑的信心持續提升。

Turning to costs. We continue to pair strong cost discipline with targeted investments that support long-term growth. Our focus on reducing legacy costs and simplifying operations is strengthening our financial profile while preserving the quality of our journalism.

接著談成本。我們持續在嚴格的成本紀律下，搭配支持長期成長的重點投資。我們專注於降低傳統成本並簡化營運，在維持新聞品質的同時，強化我們的財務體質。

By enhancing operational rigor this year without compromising quality, we have improved our long-term positioning and are poised to drive sustainable shareholder value over the long term. In the first half of fiscal 2026, cash costs declined $37 million or 14% compared to the prior year.

今年我們在不犧牲品質的前提下提升營運嚴謹度，改善了長期競爭位置，並有望在長期推動可持續的股東價值。2026 會計年度上半年，現金成本較去年同期下降 3,700 萬美元或 14%。

The majority of that reduction came from SG&A costs, which decreased approximately $23 million, largely driven by lower corporate overhead. Legacy print costs declined by $13 million year-over-year, primarily reflecting efficiencies aligned with our evolving revenue mix and ongoing print optimization efforts.

其中大部分降幅來自 SG&A 成本，約減少 2,300 萬美元，主要由較低的公司管理費用所帶動。傳統印刷成本年減 1,300 萬美元，主要反映與我們收入組合演變一致的效率提升，以及持續的印刷優化措施。

Through the first half of fiscal '26, we have remained disciplined from a cost perspective. We continue to manage our print business for efficiency, scale our digital operations, and reduce SG&A costs. Lastly, before I pass it back to Nathan, I'd like to highlight the significant progress we've made on the balance sheet.

截至 2026 會計年度上半年，我們在成本面仍維持紀律。我們持續以效率為導向管理印刷業務、擴大數位營運規模，並降低 SG&A 成本。最後，在我把時間交回 Nathan 之前，我想強調我們在資產負債表方面取得的重大進展。

Since refinancing in March 2020, we have reduced debt by $121 million. Following our recent strategic investment and resulting lower interest rate, we expect to generate approximately $18 million in annual interest savings or up to $90 million over five years.

自 2020 年 3 月再融資以來，我們已將債務減少 1.21 億美元。隨著近期策略性投資以及因此帶來的較低利率，我們預期每年可節省約 1,800 萬美元的利息支出，或五年合計最多約 9,000 萬美元。

We are also actively monetizing noncore assets to further accelerate deleveraging, with assets estimated at $20 million in value currently identified. With a stronger balance sheet and reduced interest costs, we are in a significantly improved financial position compared to just a quarter ago. This enables us to invest in the business, reduce debt, and drive long-term shareholder value. I'll now turn the call back to Nathan for final remarks.

我們也正積極將非核心資產變現，以進一步加速去槓桿；目前已辨識的資產估計價值為 2,000 萬美元。隨著資產負債表更強健且利息成本降低，相較於僅一季之前，我們的財務狀況已顯著改善。這使我們能夠投資於業務、降低負債，並推動長期股東價值。現在我把電話會議交回 Nathan 作最後結語。

Thanks, Josh. We are reaffirming our full year outlook of adjusted EBITDA growth in the mid-single digits. And based on our first half performance, we are confident that we will deliver. Our disciplined approach to cost and focus on profitability were key drivers of our strong first half results, and we will maintain our operational rigor going forward. Our strategy is clear: accelerate digital growth, strengthen the balance sheet, and continue delivering sustainable value for shareholders.

謝謝你，Josh。我們重申全年展望：調整後 EBITDA 成長為中個位數百分比。並且基於上半年表現，我們有信心能夠達成。我們在成本上的紀律作法與對獲利能力的聚焦，是上半年強勁成果的關鍵驅動因素，未來也將持續維持營運嚴謹度。我們的策略很清楚：加速數位成長、強化資產負債表，並持續為股東創造可持續的價值。

We've moved beyond stabilization and are now executing with real momentum. As a result, Lee is better positioned than ever to accelerate into its next phase of sustained growth. Thank you again for joining us this morning. We'll now open the call for questions.

我們已走出穩定期，現在正以真正的動能推進執行。因此，Lee 的定位比以往任何時候都更有利於加速邁入下一階段的持續成長。再次感謝各位今天早上參與。我們現在開放提問。

(Operator Instructions)

（接線員指示）

We will now take our first question from the web. Were there any debt principal payments made in the second quarter?

我們現在先從網路提問開始。第二季是否有進行任何債務本金償還？

Great. Thank you for the question. Yes, in the second quarter, we did not make any debt payments. However, we did have two real estate sales of non-core assets, and we made a $1 million debt payment just into the third quarter, but that would not be reflected in our second quarter debt. All right. We have no more questions from our web participants. I will now turn the call back to Nathan for closing remarks.

好的。謝謝你的提問。是的，在第二季我們沒有進行任何債務償還。不過，我們完成了兩筆非核心資產的不動產出售，並在進入第三季後償還了 100 萬美元的債務，但這不會反映在我們第二季的債務數字中。好的。我們的網路參與者沒有更多問題了。現在我把電話會議交回 Nathan 作結語。

Great. Thank you. Midway through fiscal 2026, I'm pleased with our results. As an organization, we are fundamentally stronger than ever before, and our first half results meaningfully demonstrated our ability to execute across the Board with improved operating efficiency. With a clear strategy, strong foundation, and significant momentum, we are well positioned for our next stage of evolution as a digital media company.

好的。謝謝。2026 會計年度進行到一半，我對我們的成果感到滿意。就組織而言，我們比以往任何時候都更為強健，而上半年結果也有力展現了我們在提升營運效率的同時，能在各方面落實執行的能力。憑藉清晰的策略、穩固的基礎與顯著的動能，我們已為作為一家數位媒體公司邁向下一階段的演進做好準備。

I want to thank our employees for their dedication and our shareholders for their continued support. Thank you again for joining today's call.

我要感謝員工的投入，也感謝股東持續的支持。再次感謝各位參與今天的電話會議。

Thank you, ladies and gentlemen. That does conclude our call for today. Thank you all for joining, and you may now disconnect. Have a great day.

謝謝各位女士、先生。今天的電話會議到此結束。感謝各位參與，現在可以掛線。祝各位有美好的一天。