Lee Enterprises, Incorporated (LEE) AI Stock Analysis
LEE AI stock analysis summary
AI ResearchLee Enterprises, Incorporated (LEE) is a US provider of local news, digital content, and advertising services. The company faces ongoing revenue contraction, with revenue falling 8.0% in FY2025 alongside a net loss of -$37.6M. Its balance sheet is heavily leveraged, carrying $475.3M in total debt and negative shareholders' equity of -$2.2M as of June 30, 2026.
- Market cap
- $143.1M
- Revenue (TTM)
- $517.1M
- P/E
- — fwd 15.1x
- 1Y return
- 62.9% S&P 500 16.8%
- Avg. target
- $20.00 211.5% vs last close
Bull case
- LEE gained 62.9% over the past year, outperforming the S&P 500's return of 16.8%.
- Gross margins remained steady, increasing slightly to 97.7% in FY2025.
- The analyst mean price target of $20.00 represents a 211.5% premium to the last close of $6.42.
Bear case
- Annual net losses deepened to -$37.6M in FY2025, resulting in diluted EPS of -$6.24.
- The balance sheet carries $475.3M in total debt against negative shareholders' equity of -$2.2M as of June 30, 2026.
- Quarterly revenue dropped 10.8% year-over-year in the quarter ended June 30, 2026.
What Lee Enterprises does
Lee Enterprises, Incorporated provides local news, information, and advertising services throughout the United States. Founded in 1890 and headquartered in Davenport, Iowa, it publishes daily, weekly, and monthly print and digital newspapers alongside web hosting and content management services. The company delivers digital advertising and marketing solutions such as audience extension, search engine optimization (SEO), search engine marketing (SEM), web and mobile production, social media management, and reputation monitoring. It also offers integrated digital publishing systems to universities, television stations, and niche media, and operates commercial printing, third-party distribution, and a digital marketing agency.
Growth and profitability
Revenue fell from $794.6M in FY2021 to $562.3M in FY2025, reflecting a 5-year revenue CAGR of -1.9% from FY2020 to FY2025. Annual net income deteriorated over this span, moving from $22.7M in FY2021 to -$37.6M in FY2025, while operating margin contracted from 7.1% to 3.5%. Free cash flow was negative in four of the past five fiscal years, reaching -$7.1M in FY2025 on operating cash flow of -$5.5M. For the trailing twelve months, revenue totaled $517.1M with a net profit margin of -1.8% and diluted EPS of -$1.26. In the latest quarter ended June 30, 2026, quarterly revenue fell 10.8% year-over-year and quarterly earnings declined 38.3%.
Balance sheet and cash flow
As of June 30, 2026, Lee Enterprises held $59.4M in cash and short-term investments against $475.3M in total debt, resulting in net debt of $415.9M. Total assets stood at $624.6M, while shareholders' equity was -$2.2M. The company maintains a current ratio of 1.17. In FY2025, capital expenditures totaled $1.5M, while its share count increased by 4.4% over five years.
Valuation and performance
At a last close of $6.42, Lee Enterprises carries a market capitalization of $143.1M and an enterprise value of $566.8M. The stock trades at a forward P/E of 15.1x, higher than the 14.1x median of its US-listed Communication Services peers. Its EV/EBITDA of 14.0x is also above the peer median of 10.0x, though its price-to-sales of 0.3x is below the peer median of 0.8x. Over the past year, LEE returned 62.9% compared to 16.8% for the S&P 500 (SPY), but its 5-year return of -70.3% lagged the index's 83.0% gain.
What analysts expect
Analysts have a mean price target of $20.00 for LEE, which sits 211.5% above its last close of $6.42. For the next fiscal year, consensus models revenue of $587.3M, representing a projected revenue decline of 0.1%, with an EPS estimate of $0.00. Over the last four quarters, the company beat EPS estimates twice. The next earnings date is November 25, 2026.
Key risks and what to watch
- Net debt of $415.9M and negative equity create balance sheet pressure amid ongoing negative free cash flow of -$7.1M in FY2025.
- Quarterly earnings fell 38.3% year-over-year in the latest quarter ended June 30, 2026.
- The 5-year revenue CAGR through FY2025 was -1.9%, driven by consistent annual sales contractions since FY2022.
- The stock traded 19.0% below its 200-day moving average as of October 16, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this LEE AI stock analysis
This page is an AI-written research summary of Lee Enterprises, Incorporated (LEE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: LEE income statement, LEE balance sheet, LEE key metrics, LEE analyst forecast, LEE chart. See the LEE stock overview for the latest quote and news.
LEE AI stock analysis FAQ
What is Lee Enterprises' current debt level?
As of June 30, 2026, Lee Enterprises had $475.3M in total debt and $59.4M in cash, leaving net debt of $415.9M. Total shareholders' equity was -$2.2M.
Does Lee Enterprises pay a dividend?
Lee Enterprises does not currently pay a dividend.
How did LEE perform against the market over the past year?
Over the past 12 months, LEE achieved a return of 62.9%, outperforming the S&P 500 (SPY), which gained 16.8%.
When is Lee Enterprises' next earnings report?
The company is scheduled to report earnings on November 25, 2026.