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DallasNews Corporation Announces Second Quarter 2025 Financial Results

• Agency segment profit improved $0.2听尘颈濒濒颈辞苍 on a year-over-year basis
• Pension annuitization is complete and the Company recognized a non-cash pension settlement charge of $35.3听尘颈濒濒颈辞苍
• On July 9, the Company entered into an Agreement and Plan of Merger with Hearst
  

DALLAS, July 30, 2025 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the 鈥淐ompany鈥� or 鈥淒allasNews鈥�), the Dallas-based holding company of 罢丑别听顿补濒濒补蝉听惭辞谤苍颈苍驳听狈别飞蝉 and Medium Giant, today reported financial results for the second quarter of 2025.

For the second quarter of 2025, the Company reported a net loss of $33.5听尘颈濒濒颈辞苍, or $(6.26)听per share, and operating income of $1.3听尘颈濒濒颈辞苍. The second quarter net loss includes a non-cash pension settlement charge of $35.3听尘颈濒濒颈辞苍 resulting from the annuitization of the Company鈥檚 pension plans. In the second quarter of 2024, the Company reported net income of $1.5听尘颈濒濒颈辞苍, or $0.27听per share, and operating income of $0.6听尘颈濒濒颈辞苍.

For the second quarter of 2025, on a non-GAAP basis, DallasNews reported operating income adjusted for certain items (鈥渁djusted operating income鈥�) of $1.6听尘颈濒濒颈辞苍, an increase of $0.4听尘颈濒濒颈辞苍 or 36.7听percent when compared to adjusted operating income of $1.2听尘颈濒濒颈辞苍 reported in the second quarter of 2024. The improvement is primarily due to expense savings of $1.0听尘颈濒濒颈辞苍 in employee compensation and benefits, $0.8听尘颈濒濒颈辞苍 in outside services, and $0.6听尘颈濒濒颈辞苍 attributable to the transition to a smaller, leased printing facility, partially offset by a total revenue decline of $2.3听尘颈濒濒颈辞苍.

Second Quarter Results

Total revenue was $29.8听尘颈濒濒颈辞苍 in the second quarter of 2025, a decrease of $2.3听尘颈濒濒颈辞苍 or 7.2听percent when compared to the second quarter of 2024.

Revenue from advertising and marketing services, including print and digital revenues, was $12.3听尘颈濒濒颈辞苍 in the second quarter of 2025, a decrease of $0.5听尘颈濒濒颈辞苍 or 3.8听percent when compared to the $12.8听尘颈濒濒颈辞苍 reported for the second quarter of 2024. The decline is primarily due to a print advertising revenue decrease of $0.3听尘颈濒濒颈辞苍 or 4.6听percent.

Circulation revenue was $15.3听尘颈濒濒颈辞苍 in the second quarter of 2025, a decrease of $0.9听尘颈濒濒颈辞苍 or 5.7听percent when compared to the $16.2听尘颈濒濒颈辞苍 reported for the second quarter of 2024. The decline is primarily due to a print circulation revenue decrease of $0.7听尘颈濒濒颈辞苍 or 5.9听percent.

Printing, distribution and other revenue was $2.2听尘颈濒濒颈辞苍, a decrease of $0.9听尘颈濒濒颈辞苍 or 28.9听percent when compared to the second quarter of 2024, due to the cancellation of a mailed advertisements partnership in April 2025.

Total consolidated operating expense in the second quarter of 2025, on a GAAP basis, was $28.5听尘颈濒濒颈辞苍, an improvement of $3.0听尘颈濒濒颈辞苍 or 9.5听percent. The improvement is primarily due to expense savings of $1.1听尘颈濒濒颈辞苍 in employee compensation and benefits, $0.8听尘颈濒濒颈辞苍 in outside services, $0.6听尘颈濒濒颈辞苍 attributable to the transition to a smaller, leased printing facility and $0.4听尘颈濒濒颈辞苍 in newsprint. $0.5听尘颈濒濒颈辞苍 of the savings in outside services is a result of the canceled mailed advertisements partnership, partially offsetting the loss in revenue associated with this partnership.

On a non-GAAP basis, adjusted operating expense was $28.2听尘颈濒濒颈辞苍, an improvement of $2.7听尘颈濒濒颈辞苍 or 8.8听percent when compared to the second quarter of 2024. Excluding the change in severance expense of $0.1听尘颈濒濒颈辞苍, employee compensation and benefits expense improved $1.0听尘颈濒濒颈辞苍.

As of June听30, 2025, the Company had 451 employees, a headcount decrease of 82 or 15.4听percent when compared to the prior year period, primarily the result of transitioning to a smaller, more efficient printing facility. Cash and cash equivalents were $33.7听尘颈濒濒颈辞苍 at June听30, 2025, and the Company has no debt.

Merger with Hearst

As previously announced, in July the Company entered into an Agreement and Plan of Merger with Hearst Media West, LLC (鈥淧arent鈥�), Destiny Merger Sub, Inc., a wholly owned subsidiary of Parent (鈥淢erger Sub鈥�), and, solely for the purposes specified therein, Hearst Communications, Inc., the indirect owner of all of the outstanding equity of each of Parent and Merger Sub (as amended on July 27, 2025, the 鈥淢erger Agreement鈥�). The Merger Agreement is subject to customary closing conditions including, among other things, a shareholder vote in favor of the Merger Agreement, and it may be terminated under certain circumstances. If the Merger Agreement is consummated, the Company鈥檚 Series A Common Stock will be delisted from The Nasdaq Stock Market LLC and deregistered under the Securities Exchange Act of 1934, as amended. DallasNews shareholders will receive $15.00 in cash for each share of common stock - a premium of approximately 242听percent based on the closing price of DallasNews鈥� common stock of $4.39 per share on July听9, 2025. The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close during the third or early fourth quarter of 2025.

Segment Information

The Company determined it has the following two reportable segments:

• TDMN primarily generates revenue from subscriptions and retail sales of 罢丑别听顿补濒濒补蝉听惭辞谤苍颈苍驳听狈别飞蝉, and sales of advertising within its newspaper and on related digital platforms by Medium Giant鈥檚 cross-functional sales team.
• Agency generates revenue from the services offered by the Company鈥檚 full-service advertising agency, Medium听Giant.

The primary measure of segment profitability utilized by the Chief Operating Decision Maker (鈥淐ODM鈥�) is segment profit (loss), which excludes Corporate听and听Other costs that are not associated with the ongoing operations of the segments.听Reconciliation of segment profit (loss) to consolidated operating income (loss), and disaggregated revenue by reportable segment and revenue source are included in the exhibits to this release.

Non-GAAP Financial Measures

The CODM uses adjusted operating income (loss) for the purposes of evaluating consolidated performance and allocating resources.

Reconciliations of operating income (loss) to adjusted operating income and total operating costs and expense to adjusted operating expense are included in the exhibits to this release.

The Company calculates adjusted operating income (loss) by adjusting operating income (loss) to exclude depreciation, severance expense, (gain) loss on sale/disposal of assets, and asset impairments (鈥渁djusted operating income (loss)鈥�). The Company believes that inclusion of certain noncash expenses and other items in the results makes for more difficult comparisons between years and with peer group companies.

Adjusted operating income (loss) is not a measure of financial performance under generally accepted accounting principles (鈥淕AAP鈥�). Management uses adjusted operating income (loss) and similar measures in internal analyses as supplemental measures of the Company鈥檚 financial performance, and for performance comparisons versus its peer group of companies. Management uses this non-GAAP financial measure for the purposes of evaluating consolidated Company performance. The Company therefore believes that the non-GAAP measure presented provides useful information to investors by allowing them to view the Company鈥檚 business through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods and providing a focus on the underlying ongoing operating performance of its business. Adjusted operating income (loss) should not be considered in isolation or as a substitute for net income (loss), cash flows provided by (used for) operating activities or other comparable measures prepared in accordance with GAAP. Additionally, this non-GAAP measure may not be comparable to similarly-titled measures of other companies.

About DallasNews Corporation

DallasNews Corporation is the Dallas-based holding company of 罢丑别听顿补濒濒补蝉听惭辞谤苍颈苍驳听狈别飞蝉 and Medium Giant.

, Texas鈥� leading daily newspaper, is renowned for its excellent journalistic reputation, intense regional focus, and close community ties. As a testament to its commitment to quality journalism, the publication has been honored with nine Pulitzer Prizes.

, an integrated creative marketing agency with offices in Dallas and Tulsa, works with a roster of premium brands and companies. In 2024, the agency earned top industry recognition, winning an AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year, along with six prestigious Davey Awards. Medium Giant is a wholly owned business of DallasNews Corporation. For additional information, visit .

Statements in this communication concerning the Merger, the expected timing and completion of the Merger, the Company鈥檚 business outlook or future economic performance, revenues, expenses, cash balance, investments, business initiatives, working capital, and other financial and听non-financial听items that are not historical facts are 鈥渇orward-looking statements鈥� as the term is defined under applicable federal securities laws. Words such as 鈥渁nticipate,鈥� 鈥渁ssume,鈥� 鈥渂elieve,鈥� 鈥渃an,鈥� 鈥渃ould,鈥� 鈥渆stimate,鈥� 鈥渇orecast,鈥� 鈥渋ntend,鈥� 鈥渆xpect,鈥� 鈥渕ay,鈥� 鈥減roject,鈥� 鈥減lan,鈥� 鈥渟eek,鈥� 鈥渟hould,鈥� 鈥渢arget,鈥� 鈥渨ill,鈥� 鈥渨ould鈥� and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements. Such risks, trends and uncertainties are, in most instances, beyond the Company鈥檚 control, and include but are not limited to, the factors and matters described in this communication and the Company鈥檚 other public disclosures and filings with the Securities and Exchange Commission, and the following factors: the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the Company鈥檚 obligation to pay a termination fee if the Merger is terminated under certain circumstances; the outcome of any legal proceedings that may be instituted against the Company and others following announcement of the Merger Agreement or the adoption of the Rights Agreement; the inability to complete the proposed Merger due to the failure to obtain the requisite approval of the Company鈥檚 shareholders or the failure to satisfy other conditions to completion of the Merger; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the Merger; the impact, if any, of the announcement or pendency of the Merger on the Company鈥檚 business and relationships with customers or other commercial partners; the impact, if any, of the restrictions on the conduct of the Company鈥檚 business imposed by the Merger Agreement; the amount of the costs, fees, expenses and charges related to the Merger and the shareholder rights agreement (the 鈥淩ights Agreement鈥�); the ability of the Rights Agreement to protect shareholders鈥� interests and to effectively ensure that the Board has sufficient time to make informed judgments that are in the best interests of the Company and its shareholders; changes in advertising demand and other economic conditions; consumers鈥� tastes; newsprint and distribution prices; program costs; the Company鈥檚 ability to successfully execute the Return to Growth Plan; the Company鈥檚 ability to maintain compliance with the continued listing requirements of The Nasdaq Capital Market; the success of the Company鈥檚 digital strategy; changes in economic policies and tariffs; labor relations; cybersecurity incidents; and technological obsolescence. Forward-looking statements, which are as of the date of this communication, are not updated to reflect events or circumstances after the date of the statement.

Contact:
Katy Murray
214-977-8869

DallasNews Corporation and Subsidiaries
Consolidated Statements of Operations

DallasNews Corporation and Subsidiaries
Consolidated Balance Sheets

DallasNews Corporation and Subsidiaries
Disaggregated Revenue by Reportable Segment and Revenue Source

DallasNews Corporation and Subsidiaries
Reconciliation of Segment Profit (Loss) to Operating Income (Loss)

DallasNews Corporation - Non-GAAP Financial Measures
Reconciliation of Operating Income (Loss) to Adjusted Operating Income