Lee Reports Q1 Revenue of $130.1M, Adjusted EBITDA Growth of $5M
Reports Q1 revenue $130.1M vs. $144.6M last year. "Our core business delivered operating results in the first quarter that exceeded our expectations," said Nathan Bekke, interim CEO. "Adjusted EBITDA growth of $5M puts us in a great position to achieve our expectations for year-over-year growth in fiscal 2026. This marks our third consecutive quarter of Adjusted EBITDA growth on a comparable basis, led by continued industry-leading performance in digital subscription revenue coupled with disciplined cost management. These results validate our focus on building durable, recurring revenue streams while continuing to actively manage the cost structure tied to legacy revenue. Additionally, our 2026 results are expected to include reimbursement from our insurance carrier for business interruption related to the cyber event last year - $2M of which was received in the first quarter and included in Adjusted EBITDA. Excluding the insurance reimbursement, Adjusted EBITDA was up $3M or 35% year-over-year, representing exceptionally strong operating growth. We are also pleased to announce the Company closed on a transformational $50M private placement of common stock last week led by David Hoffmann. This transaction strengthens the Company's balance sheet which will further fuel our digital transformation and drive long term shareholder value. A key component of the transaction is an amendment to the Company's credit agreement that reduces the annual interest rate on the Company's outstanding debt to 5% from 9% for a five-year period. This rate reduction is expected to result in interest savings of approximately $18M annually or up to $90M over the five-year period, further improving the Company's capital structure and strengthening the balance sheet. The consistent strength of our core business reflects the effectiveness of our Three Pillar Digital Growth Strategy and the progress of our digital transformation. That strength along with the $50M capital infusion and up to $90M of interest savings sets Lee up for an exciting future as we drive sustainable growth and create long-term value for our shareholders."
