LEE ENTERPRISES, Inc

Previous wording

Lee Enterprises, Incorporated, together with its subsidiaries, is a digital-first subscription business providing local markets with valuable, high quality, trusted, intensely local news, information, advertising and marketing services. We inform consumers in 72 mid-sized local communities in 25 states with a rapidly growing digital subscription platform including 728,000 digital subscribers. Our core strategy aims to grow audiences and engagement through creating, collecting, and distributing trusted local news and information, continuous improvements to subscriber experience, and offering a full suite of omni-channel advertising and marketing to more than 25,000 local advertisers.

Current wording

Lee Enterprises, Incorporated, together with its subsidiaries, is a digital-first subscription business providing local markets with valuable, high quality, trusted, intensely local news, information, advertising and marketing services. We inform consumers in 72 mid-sized local communities in 25 states with a rapidly growing digital subscription platform including 670,000 digital subscribers. Our core strategy aims to grow audiences and engagement through creating, collecting, and distributing trusted local news and information, continuous improvements to subscriber experience, and offering a full suite of omni-channel advertising and marketing to more than 20,000 local advertisers.

Previous wording

Advertising and marketing services revenue totaled $60.5 million in the 2025 Quarter, down 5.7% compared to the 2024 Quarter. Print advertising revenues were $16.5 million in the 2025 Quarter, down 11.8% compared to the 2024 Quarter due to continued secular declines in demand for print advertising and impacts from the Cyber Incident, which limited capacity for print advertising for certain publications for a short period of time. Digital advertising and marketing services totaled $43.9 million in the 2025 Quarter, down 3.2% compared to the 2024 Quarter. Digital advertising and marketing services represented 72.7% of the 2025 Quarter total advertising and marketing services revenue, compared to 70.8% in the same period last year.

Current wording

Advertising and marketing services revenue totaled $66.6 million in the 2025 Quarter, down 3.3% compared to the 2024 Quarter. Print advertising revenues were $17.5 million in the 2025 Quarter, down 7.7% compared to the 2024 Quarter due to continued secular declines in demand for print advertising and impacts from the Cyber Incident, which limited capacity for print advertising for certain publications for a short period of time. Digital advertising and marketing services totaled $49.1 million in the 2025 Quarter, down 1.6% compared to the 2024 Quarter. Digital advertising and marketing services represented 73.8% of the 2025 Quarter total advertising and marketing services revenue, compared to 72.5% in the same period last year.

Previous wording

Subscription revenue totaled $64.9 million in the 2025 Quarter, down 6.3% compared to the 2024 Quarter. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions. Digital-only subscribers now total 728,000. Digital-only subscription revenue grew 17.4% compared to the 2024 Quarter.

Current wording

Subscription revenue totaled $61.6 million in the 2025 Quarter, down 9.9% compared to the 2024 Quarter. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, and price increases on digital subscriptions. Digital-only subscribers now total 670,000. Digital-only subscription revenue grew 13.4% compared to the 2024 Quarter.

Previous wording

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $1.2 million, or 8.7%, in the 2025 Quarter compared to the 2024 Quarter. Digital services revenue totaled $4.8 million in the 2025 Quarter, a 5.7% decrease compared to the 2024 Quarter. Commercial printing revenue totaled $3.8 million in the 2025 Quarter, a 8.5% decrease compared to the 2024 Quarter, primarily driven by reduction in print volumes from our partners.

Current wording

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $0.3 million, or 2.0%, in the 2025 Quarter compared to the 2024 Quarter. Digital services revenue totaled $5.3 million in the 2025 Quarter, a 3.5% increase compared to the 2024 Quarter. Commercial printing revenue totaled $4.2 million in the 2025 Quarter, a 4.9% decrease compared to the 2024 Quarter, primarily driven by reduction in print volumes from our partners.

Previous wording

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $72.6 million in the 2025 Quarter, an increase of 2.5% over the 2024 Quarter, and represented 52.8% of our total operating revenue in the 2025 Quarter.

Current wording

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $77.9 million in the 2025 Quarter, an increase of 2.8% over the 2024 Quarter, and represented 55.1% of our total operating revenue in the 2025 Quarter.

Previous wording

Total operating expenses were $143.0 million in the 2025 Quarter, a 6.1% decrease compared to the 2024 Quarter. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 1.5% in the 2025 Quarter.

Current wording

Total operating expenses were $137.3 million in the 2025 Quarter, a 6.4% decrease compared to the 2024 Quarter. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 7.0% in the 2025 Quarter.

Previous wording

Compensation expense decreased $0.1 million in the 2025 Quarter, or 0.3%, compared to the 2024 Quarter from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent and higher expenses related to the Company's self-insured medical plan.

Current wording

Compensation expense decreased $11.8 million in the 2025 Quarter, or 20.0%, compared to the 2024 Quarter from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent and higher expenses related to the Company's self-insured medical plan.

Previous wording

Newsprint and ink costs decreased $1.1 million in the 2025 Quarter, or 25.3%, compared to the 2024 Quarter. The decrease is attributable to declines in newsprint volumes.

Current wording

Newsprint and ink costs decreased $0.8 million in the 2025 Quarter, or 20.2%, compared to the 2024 Quarter. The decrease is attributable to declines in newsprint volumes.

Previous wording

Other operating expenses decreased $0.8 million in the 2025 Quarter, or 1.2%, compared to the 2024 Quarter. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially offset by investments to fund our digital growth strategy.

Current wording

Other operating expenses increased $3.1 million in the 2025 Quarter, or 4.1%, compared to the 2024 Quarter. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The increase is attributable to investments to our digital growth.

Previous wording

Restructuring costs and other increased $2.4 million, or 57.4%, compared to the 2024 Quarter. The increase is primarily driven from costs associated with recovering from the Cyber Incident, closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, cyber restoration costs, and advisor expenses.

Current wording

Restructuring costs and other increased $3.3 million, or 88.2%, compared to the 2024 Quarter. The increase is primarily driven from costs associated with recovering from the Cyber Incident, closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, cyber restoration costs, and advisor expenses.

Previous wording

Depreciation and amortization expense decreased $2.1 million, or 29.1%, in the 2025 Quarter. The decrease in both is attributable to assets becoming fully depreciated or amortized.

Current wording

Depreciation and amortization expense decreased $3.1 million, or 44.8%, in the 2025 Quarter. The decrease in both is attributable to assets becoming fully depreciated or amortized.

Previous wording

Assets loss (gain) on sales, impairments and other, was a net loss of $0.1 million in the 2025 Quarter compared to a net gain of $7.6 million in the 2024 Quarter. Assets loss (gain) on sales, impairments and other in the 2024 Quarter were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets.

Current wording

Assets gain on sales, impairments and other, was a net gain of $1.6 million in the 2025 Quarter compared to a net gain of $1.4 million in the 2024 Quarter. Assets gain on sales in both quarters were due to asset sales.

Previous wording

The factors noted above resulted in an operating loss of $4.5 million in the 2025 Quarter compared to $4.6 million in the 2024 Quarter.

Current wording

The factors noted above resulted in an operating income of $4.7 million in the 2025 Quarter compared to $4.9 million in the 2024 Quarter.

Previous wording

Non-operating income and expense decreased by $0.6 million, or 6.3%. The decrease is primarily driven by a decrease in Interest expense of $0.3 million, or 2.6%, to $10.0 million in the 2025 Quarter, compared to the same Quarter last year. The decrease was due to a lower average outstanding balance on our Term Loan. Our weighted average cost of debt was 9% at the end of the 2025 Quarter and 2024 Quarter.

Current wording

Non-operating income and expense decreased by $0.4 million, or 4.0%. The decrease is primarily driven by an increase in Pension and OPEB related benefits offset by an increase in Interest expense of $0.1 million, or 0.5%, to $10.1 million in the 2025 Quarter, compared to the same Quarter last year. The increase to interest expense was due to the interest and rent waivers received in the second quarter which was added to the outstanding balance on our Term Loan. Our weighted average cost of debt was 9% at the end of the 2025 Quarter and 2024 Quarter.

Previous wording

We recorded an income tax benefit of $1.8 million, or 12.9% of pretax loss in the 2025 Quarter. In the 2024 Quarter, we recognized an income tax benefit of $2.8 million, or 19.6% of pretax loss.

Current wording

We recorded an income tax benefit of $2.7 million, or 61.4% of pretax loss in the 2025 Quarter. In the 2024 Quarter, we recognized an income tax benefit of $0.8 million, or 18.7% of pretax loss.

Previous wording

Net loss was $12.0 million and diluted loss per share were $2.07 for the 2025 Quarter compared to net loss of $11.6 million and diluted losses per share of $2.06 for the 2024 Quarter. The change reflects the various items discussed above.

Current wording

Net loss was $1.7 million and diluted loss per share were $0.31 for the 2025 Quarter compared to net loss of $3.7 million and diluted losses per share of $0.73 for the 2024 Quarter. The change reflects the various items discussed above.

Previous wording

References to the “2025 Period” refer to the six months ended March 30, 2025. Similarly, references to the “2024 Period” refer to the six months ended March 24, 2024.

Current wording

References to the “2025 Period” refer to the nine months ended June 29, 2025. Similarly, references to the “2024 Period” refer to the nine months ended June 23, 2024.

Previous wording

Advertising and marketing services revenue totaled $127.1 million in the 2025 Period, down 5.9% compared to the 2024 Period. Print advertising revenues were $36.4 million in the 2025 Period, down 15.7% compared to the 2024 Period due to continued secular declines in demand for print advertising and impacts from the Cyber Incident, which limited capacity for print advertising for certain publications for a short period of time. Digital advertising and marketing services totaled $90.7 million in the 2025 Period, down 1.3% compared to the 2024 Period. Digital advertising and marketing services represented 71.4% of the 2025 Period total advertising and marketing services revenue, compared to 68.0% during the 2024 Period.

Current wording

Advertising and marketing services revenue totaled $193.6 million in the 2025 Period, down 5.0% compared to the 2024 Period. Print advertising revenues were $53.9 million in the 2025 Period, down 13.3% compared to the 2024 Period due to continued secular declines in demand for print advertising and impacts from the Cyber Incident, which limited capacity for print advertising for certain publications for a short period of time. Digital advertising and marketing services totaled $139.8 million in the 2025 Period, down 1.4% compared to the 2024 Period. Digital advertising and marketing services represented 72.2% of the 2025 Period total advertising and marketing services revenue, compared to 69.5% during the 2024 Period.

Previous wording

Subscription revenue totaled $129.9 million in the 2025 Period, down 7.6% compared to the 2024 Period. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions. Digital-only subscribers now total 728,000. Digital-only subscription revenue grew 14.2% compared to the 2024 Period.

Current wording

Subscription revenue totaled $191.4 million in the 2025 Period, down 8.4% compared to the 2024 Period. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, and price increases on digital subscriptions. Digital-only subscribers now total 670,000. Digital-only subscription revenue grew 14.0% compared to the 2024 Period.

Previous wording

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $1.6 million, or 6.1%, in the 2025 Period compared to the 2024 Period. Digital services revenue totaled $9.9 million in the 2025 Period, a 1.7% decrease compared to the 2024 Period. Commercial printing revenue totaled $7.9 million in the 2025 Period, a 9.2% decrease compared to the 2024 Period, primarily driven by reductions in print volumes from our partners.

Current wording

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $1.9 million, or 4.7%, in the 2025 Period compared to the 2024 Period. Digital services revenue totaled $15.2 million in the 2025 Period, a 0.1% increase compared to the 2024 Period. Commercial printing revenue totaled $12.1 million in the 2025 Period, a 8.0% decrease compared to the 2024 Period, primarily driven by reductions in print volumes from our partners.

Previous wording

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $145.9 million in the 2025 Period, an increase of 3.0% over the 2024 Period, and represented 51.8% of our total operating revenue in the 2025 Period.

Current wording

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $223.8 million in the 2025 Period, an increase of 3.0% over the 2024 Period, and represented 52.9% of our total operating revenue in the 2025 Period.

Previous wording

Total operating expenses were $292.1 million in the 2025 Period, a 3.2% decrease compared to the 2024 Period. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 1.0% in the 2025 Period.

Current wording

Total operating expenses were $429.4 million in the 2025 Period, a 4.3% decrease compared to the 2024 Period. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 3.0% in the 2025 Period.

Previous wording

Compensation expense increased $0.4 million in the 2025 Period, or 0.4%, compared to the 2024 Period due to higher expenses related to the Company's self-insured medical plan, investments in digital talent, partially offset by reductions in full time employees ("FTEs") due to continued business transformation efforts.

Current wording

Compensation expense decreased $11.4 million in the 2025 Period, or 6.5%, compared to the 2024 Period from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent and higher expenses related to the Company's self-insured medical plan.

Previous wording

Newsprint and ink costs decreased $2.3 million in the 2025 Period, or 25.3%, compared to the 2024 Period. The decrease is attributable to declines in newsprint volumes.

Current wording

Newsprint and ink costs decreased $3.1 million in the 2025 Period, or 23.7%, compared to the 2024 Period. The decrease is attributable to declines in newsprint volumes.

Previous wording

Other operating expenses decreased $0.9 million in the 2025 Period, or 0.6%, compared to the 2024 Period. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss (gain) on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially increases in investments to fund our digital growth strategy partially offset by investments to fund our digital growth strategy.

Current wording

Other operating expenses increased $2.1 million in the 2025 Period, or 1.0%, compared to the 2024 Period. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss (gain) on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The increase is attributable to investments to our digital growth.

Previous wording

Restructuring costs and other increased $3.3 million in the 2025 Period, compared to the 2024 Period. The increase is primarily driven from costs associated with recovering from the Cyber Incident, closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, cyber restoration costs, and advisor expenses.

Current wording

Restructuring costs and other increased $6.6 million in the 2025 Period, compared to the 2024 Period. The increase is primarily driven from costs associated with recovering from the Cyber Incident, closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, cyber restoration costs, and advisor expenses.

Previous wording

Depreciation and amortization expense decreased $3.2 million in the 2025 Period, or 21.6%, compared to the 2024 Period. The decrease in both is attributable to assets becoming fully depreciated or amortized.

Current wording

Depreciation and amortization expense decreased $6.2 million in the 2025 Period, or 29.0%, compared to the 2024 Period. The decrease in both is attributable to assets becoming fully depreciated or amortized.

Previous wording

Assets loss (gain) on sales, impairments and other, was a net gain of $0.8 million in the 2025 Period compared to a net loss of $6.1 million in the 2024 Period. Assets loss (gain) on sales, impairments and other in the 2024 Period were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets. Assets gain on sales, impairments and other in the 2025 Period were the result of the disposition of non-core assets, including real estate.

Current wording

Assets loss (gain) on sales, impairments and other, was a net gain of $2.4 million in the 2025 Period compared to a net loss of $4.7 million in the 2024 Period. Assets loss (gain) on sales, impairments and other in the 2024 Period were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets. Assets gain on sales, impairments and other in the 2025 Period were the result of the disposition of non-core assets, including real estate.

Previous wording

The factors noted above resulted in an operating loss of $7.9 million in the 2025 Period compared to operating income of $3.3 million in the 2024 Period.

Current wording

The factors noted above resulted in an operating loss of $3.2 million in the 2025 Period compared to operating income of $8.2 million in the 2024 Period.

Previous wording

Interest expense decreased $0.1 million, or 0.6%, to $20.2 million in the 2025 Period, compared to the same period last year. The decrease was due to a lower average outstanding balance on our Term Loan. Our weighted average cost of debt was 9.0% at the end of the 2025 Period and 2024 Period.

Current wording

Interest expense decreased $0.1 million, or 0.2%, to $30.4 million in the 2025 Period, compared to the same period last year. The decrease was due to a lower average outstanding balance on our Term Loan. Our weighted average cost of debt was 9% at the end of the 2025 Period and 2024 Period.

Previous wording

Other non-operating income and expense consists of benefits associated with our pension and other postretirement plans. We recorded $1.5 million of periodic pension and other postretirement benefits in the 2025 Period compared to $4.3 million in the 2024 Period. The decrease was attributable due to the Company recognizing a non-cash curtailment gain of $1.2 million in the 2024 Period as a result of outsourcing certain postemployment defined benefit plan functions. Additionally, during the 2024 Period, the Company completed a voluntary lump sum payment of future benefits to terminated vested participants. The offer was accepted by 522 participants, representing a $22.6 million pension plan liability. As a result of the offer, a non-cash settlement gain of $2.4 million was recorded in Curtailment/Settlement gain on the Consolidated Statements of Loss and Comprehensive Loss. Both assets and liabilities of the plan were reduced by $22.6 million.

Current wording

Other non-operating income and expense consists of benefits associated with our pension and other postretirement plans. We recorded $2.2 million of periodic pension and other postretirement benefits in the 2025 Period compared to $4.7 million in the 2024 Period. The decrease was attributable due to the Company recognizing a non-cash curtailment gain of $1.2 million in the 2024 Period as a result of outsourcing certain postemployment defined benefit plan functions. Additionally, during the 2024 Period, the Company completed a voluntary lump sum payment of future benefits to terminated vested participants. The offer was accepted by 522 participants, representing a $22.6 million pension plan liability. As a result of the offer, a non-cash settlement gain of $2.4 million was recorded in Curtailment/Settlement gain on the Consolidated Statements of Loss and Comprehensive Loss. Both assets and liabilities of the plan were reduced by $22.6 million.

Previous wording

We recorded an income tax expense of $1.5 million, or 5.5% of pretax loss in the 2025 Period. In the 2024 Period, we recognized an income tax benefit of $2.6 million, or 19.9% of pretax loss.

Current wording

We recorded an income tax expense of $1.3 million, or 4.1% of pretax loss in the 2025 Period. In the 2024 Period, we recognized an income tax benefit of $3.4 million, or 19.6% of pretax loss.

Previous wording

Net loss was $28.2 million and diluted loss per share were $4.87 for the 2025 Period compared to net loss of $10.4 million and diluted losses per share of $1.94 for the 2024 Period. The change reflects the various items discussed above.

Current wording

Net loss was $29.9 million and diluted loss per share were $5.16 for the 2025 Period compared to net loss of $14.1 million and diluted losses per share of $2.68 for the 2024 Period. The change reflects the various items discussed above.

Previous wording

EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.

Current wording

Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users' overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent, or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.

Previous wording

Cash required for operating activities totaled $8.1 million in the 2025 Period compared to cash provided by operating activities of $3.3 million in 2024 Period, a decrease of $11.4 million. The decrease was primarily driven by a decrease in operating results of $23.4 million (defined as net loss adjusted for non-working capital items), partially offset by non-cash interest expense of $6.8 million and an increase in working capital of $5.2 million. The increase in working capital is primarily related to the cyber incident, which increased both accounts payable and accounts receivable.

Current wording

Cash required for operating activities totaled $0.8 million in the 2025 Period compared to cash provided by operating activities of $1.4 million in 2024 Period, a decrease of $0.6 million. The decrease was primarily driven by a decrease in operating results of $24.1 million (defined as net loss adjusted for non-working capital items), partially offset by non-cash interest expense of $10.1 million and an increase in working capital of $13.4 million. The increase in working capital is primarily related to the cyber incident, which increased both accounts payable and accounts receivable.

Previous wording

Cash provided by investing activities totaled $3.2 million in the 2025 Period compared to cash provided by investing activities of $0.2 million in the 2024 Period. 2025 Period and 2024 Period included $6.1 million and $3.2 million, respectively, in proceeds from the sale of assets as the Company divested non-core real estate.

Current wording

Cash provided by investing activities totaled $5.1 million in the 2025 Period compared to cash provided by investing activities of $0.5 million in the 2024 Period. 2025 Period and 2024 Period included $8.7 million and $7.1 million, respectively, in proceeds from the sale of assets as the Company divested non-core real estate.

Previous wording

Cash provided by or required for financing activities totaled zero in the 2025 Period compared to $1.9 million required in the 2024 Period. The Debt reduction accounted for nearly all the usage of funds in the 2024 Period.

Current wording

Cash required for financing activities totaled $1.4 million in the 2025 Period compared to $3.0 million required in the 2024 Period. The Debt reduction accounted for nearly all the usage of funds in both periods.

Previous wording

Our liquidity, consisting of cash on the balance sheet, totaled $4.7 million on March 30, 2025. This liquidity amount excludes any future cash flows from operations. For the six months ending March 30, 2025, cash required for operating activities totaled $8.1 million. The current operating environment, business transformation spending, and impacts from the Cyber Incident have reduced net cash flows and put pressure on the Company's liquidity. In response to the current challenges, the Company has implemented specific plans to maintain sufficient liquidity for the foreseeable future.

Current wording

Our liquidity, consisting of cash on the balance sheet, totaled $14.1 million on June 29, 2025. This liquidity amount excludes any future cash flows from operations. For the nine months ending June 29, 2025, cash provided by operating activities totaled $0.8 million. The current operating environment, business transformation spending, and impacts from the Cyber Incident have reduced net cash flows and put pressure on the Company's liquidity. In response to the current challenges, the Company has implemented specific plans to maintain sufficient liquidity for the foreseeable future.

Previous wording

The Company's plan includes reducing operating and capital spending and reducing outstanding accounts receivable. Reductions in operating expenses and capital spending largely impact the Company's print businesses and future products that are not generating revenue today. The Company's working capital was impacted by the Cyber Incident, as statements to customers were delayed and collection efforts were challenged. The Company expects improved collections as we recover from the Cyber Incident. In addition to these tactics, the Company was granted waivers of interest and rent for three months, two of which are already reflected in the financial statements.

Current wording

The Company's plan includes reducing operating and capital spending and reducing outstanding accounts receivable. Reductions in operating expenses and capital spending largely impact the Company's print businesses and future products that are not generating revenue today. Due to the cyber incident and in an effort to improve liquidity, the Company was granted waivers of interest and rent for three months.