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Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 175 added, 130 removed, 369 unchanged (45% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(Thousands of Dollars) March 29,

(Thousands of Dollars) June 28,

2026 September 28,

24 unchanged sentences

The accompanying Notes are an integral part of the Consolidated Financial Statements.

(Thousands of Dollars and Shares, Except Per Share Data) March 29,

(Thousands of Dollars and Shares, Except Per Share Data) June 28,

2026 September 28,

20 unchanged sentences

issued and outstanding:

March 29, 2026;

June 28, 2026;

22,292 shares;

9 unchanged sentences

Non-controlling interests 2,279 2,347

Total deficit ( 3,164 ) ( 40,959 )

Total liabilities and deficit 618,638 601,729

Total equity (deficit) 39 ( 40,959 )

Total liabilities and stockholder's equity (deficit) 624,601 601,729

The accompanying Notes are an integral part of the Consolidated Financial Statements.

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

Three months ended Six months ended

(Thousands of Dollars, Except Per Common Share Data) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

Three months ended Nine months ended

(Thousands of Dollars, Except Per Common Share Data) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Operating revenue:

9 unchanged sentences

Depreciation and amortization 3,527 3,783 10,621 15,218

(Gain) loss on asset sales, impairments and other, net ( 900 ) 126 ( 903 ) ( 803 )

Gain on asset sales, impairments and other, net ( 73 ) ( 1,562 ) ( 976 ) ( 2,365 )

Restructuring costs and other 5,959 7,141 12,746 18,806

5 unchanged sentences

Pension and other post employment benefits ("OPEB") related and other, net 1,169 1,050 2,840 2,362

Settlement gain 2,330 — 2,330 —

Total non-operating expense, net ( 2,059 ) ( 9,082 ) ( 18,265 ) ( 28,003 )

1 unchanged sentence

Income tax expense (benefit) 1,400 ( 2,744 ) 5,779 ( 1,281 )

Net loss ( 1,709 ) ( 12,015 ) ( 6,835 ) ( 28,239 )

Net income (loss) 5,173 ( 1,676 ) ( 1,662 ) ( 29,915 )

Net income attributable to non-controlling interests ( 498 ) ( 244 ) ( 1,423 ) ( 1,264 )

Loss attributable to Lee Enterprises, Incorporated ( 2,148 ) ( 12,511 ) ( 7,759 ) ( 29,259 )

Income (loss) attributable to Lee Enterprises, Incorporated 4,675 ( 1,920 ) ( 3,085 ) ( 31,179 )

Other comprehensive loss, net of income taxes ( 1,611 ) ( 115 ) ( 1,769 ) ( 230 )

Comprehensive loss attributable to Lee Enterprises, Incorporated ( 2,227 ) ( 12,626 ) ( 7,917 ) ( 29,489 )

Loss per common share:

Comprehensive income (loss) attributable to Lee Enterprises, Incorporated 3,064 ( 2,035 ) ( 4,854 ) ( 31,409 )

Earnings (loss) per common share:

0.21 ( 0.31 ) ( 0.22 ) ( 5.16 )

24 unchanged sentences

March 29, 2026 ( 337,693 ) 223 309,390 22,595 2,310 ( 3,175 )

Shares issued — — — — — —

Income attributable to Lee Enterprises, Incorporated 4,675 — — — 498 5,173

Stock compensation — — 181 — — 181

Other comprehensive loss — — — ( 1,966 ) ( 1,966 )

Deferred income taxes, net — — — 355 — 355

Distributions to minority owners — — — — ( 529 ) ( 529 )

June 28, 2026 ( 333,018 ) 223 309,571 20,984 2,279 39

(Thousands of Dollars) Accumulated

18 unchanged sentences

March 30, 2025 ( 321,600 ) 62 262,927 19,690 2,823 ( 36,098 )

Shares issued (redeemed) — 1 ( 84 ) — — ( 83 )

Loss attributable to Lee Enterprises, Incorporated ( 1,920 ) — — — 244 ( 1,676 )

Stock compensation — — 540 — — 540

Other comprehensive loss — — — ( 151 ) — ( 151 )

Deferred income taxes, net — — — 36 — 36

Distributions to minority owners — — — — ( 765 ) ( 765 )

June 29, 2025 ( 323,520 ) 63 263,383 19,575 2,302 ( 38,197 )

The accompanying Notes are an integral part of the Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

Cash (required for) provided by operating activities:

3 unchanged sentences

Bad debt expense 7,343 10,853

Settlement gain ( 2,330 ) —

Stock compensation expense 722 1,328

6 unchanged sentences

Decrease (increase) in receivables 2,345 ( 7,628 )

Decrease in inventories and other 318 26

(Increase) decrease in inventories and other ( 382 ) 419

(Decrease) increase in accounts payable, unearned revenue, other accrued liabilities and other working capital items ( 3,263 ) 7,749

2 unchanged sentences

Other ( 1,573 ) ( 1,322 )

Net cash required for operating activities ( 1,776 ) ( 8,127 )

Cash provided by (required for) investing activities:

Net cash provided by operating activities 6,139 765

Cash (required for) provided by investing activities:

Purchases of property and equipment ( 2,407 ) ( 3,539 )

1 unchanged sentence

Net cash (required for) provided by investing activities ( 1,283 ) 5,134

Cash provided by financing activities:

Cash provided by (required for) financing activities:

Principal payments on long-term debt ( 753 ) ( 1,372 )

Costs of Private Placement of common stock ( 4,664 ) —

Private Placement proceeds 50,000 —

Net cash provided by financing activities 45,346 —

Net increase (decrease) in cash and cash equivalents 43,286 ( 4,934 )

Net cash provided by (required for) financing activities 44,583 ( 1,372 )

Net increase in cash and cash equivalents 49,439 4,527

Cash and cash equivalents:

6 unchanged sentences

The accompanying unaudited interim Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports.

In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of March 29, 2026, and our results of operations and cash flows for the periods presented.

In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of June 28, 2026, and our results of operations and cash flows for the periods presented.

The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2025 Annual Report on Form 10-K.

1 unchanged sentence

Fiscal year 2026 ends September 27, 2026, and fiscal year 2025 ended September 28, 2025.

Fiscal year 2026 and 2025 includes 52 weeks of operations.

Because of seasonal and other factors, the results of operations for the three and six months ended March 29, 2026, are not necessarily indicative of the results to be expected for the full year.

Fiscal years 2026 and 2025 include 52 weeks of operations.

Because of seasonal and other factors, the results of operations for the three and nine months ended June 28, 2026, are not necessarily indicative of the results to be expected for the full year.

The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5 % interest in INN Partners, L.C.

3 unchanged sentences

New accounting pronouncements not yet adopted

In December 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-11 which focuses on various interim reporting improvements.

The ASU is effective for interim periods within fiscal years beginning after December 15, 2027.

We are currently evaluating the guidance but we do not expect it will fundamentally change our interim reporting.

In December 2025, the FASB issued ASU 2025-12 which is the FASB's "Codification Improvements" update, making various technical corrections and clarifications to existing United States Generally Accepted Accounting Principles ("GAAP"), improving consistency and usability for preparers by refining guidance and making standards easier to apply.

The ASU is effective for annual periods beginning after December 15, 2026.

We are currently evaluating the updated guidance and assessing the impact on the Consolidated Financial Statements.

In November 2023, the FASB issued guidance, ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures which enhances annual income tax disclosures.

ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid.

ASU 2023-09 will be effective for annual periods beginning after December 15, 2024.

We are currently evaluating the guidance and assessing the impact on the Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date (“ASU 2025-01”) .

ASU 2024-03 requires additional disclosure of the nature of expenses included in the statement of operations as well as disclosures about specific types of expenses included in the expense captions presented in the statement of operations.

ASU 2024-03, as clarified by ASU 2025-01, is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

Both early adoption and retrospective

application are permitted.

We expect to enhance annual expense disclosures based on the new requirements.

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810) - Amendments to SEC Paragraphs Pursuant to Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity .

This update is effective for the annual period beginning after December 15, 2026, as well as interim periods within that period.

We are currently evaluating the updated guidance and assessing the impact on the Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which enhances annual income tax disclosures by requiring additional disaggregated information about the effective tax rate reconciliation and income taxes paid.

The guidance is effective for annual periods beginning after December 15, 2024.

We will adopt this guidance for our annual consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, I ncome Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures , and in January 2025 issued ASU 2025-01 to clarify the effective date.

The guidance requires additional disaggregation of certain expense captions presented on the statement of operations.

The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

We expect to enhance our expense disclosures upon adoption.

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which clarifies the accounting acquirer guidance for certain VIE transactions.

The guidance is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods.

We are evaluating the guidance and do not expect it to have a material impact on our consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides new optional guidance relating to the estimation of expected credit losses on current accounts receivable and current contract assets.

This ASU permits entities to apply a practical expedient when estimating credit losses and is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted, and should be applied prospectively.

We are currently evaluating the provisions of the updated guidance and assessing the impact on the Consolidated Financial Statements.

Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions.

The guidance is effective for annual reporting periods beginning after December 15, 2025, including interim periods within those annual periods, with early adoption permitted.

We are evaluating the guidance and do not expect it to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The amendments clarify the accounting for internal-use software and provide targeted improvements to the capitalization guidance.

The ASU is effective for annual reporting periods beginning after December 15, 2027, including interim periods within those annual reporting periods.

Early adoption is permitted.

We are currently evaluating the guidance and assessing the impact on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements, which improves the organization and navigability of interim reporting guidance and clarifies when such guidance applies.

The amendments are not intended to significantly change interim reporting or expand or reduce current interim disclosure requirements.

The guidance is effective for interim periods within fiscal years beginning after December 15, 2027.

We are evaluating the guidance and do not expect it to fundamentally change our interim reporting.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements , which makes technical corrections, clarifications and other incremental improvements to U.S.

The guidance is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted.

We are evaluating the guidance and assessing the impact on our consolidated financial statements.

2 AGREEMENT WITH HOFFMANN MEDIA GROUP ("HMG")

On May 14, 2026, we entered into a five-year management agreement with HMG, effective June 1, 2026, under which we manage certain HMG-owned newspaper publications and related digital properties.

HMG is owned by David H.

Hoffmann, our Chairman and majority shareholder ("Mr.

Under the agreement, we receive a fixed management fee of $ 135,000 per fiscal quarter, a variable fee based on the EBITDA of certain acquired publications, and reimbursement of shared service costs at cost.

HMG retains ownership of the publications and all related revenues and remains responsible for working capital and operating obligations.

The agreement was approved by our Board of Directors in accordance with our related-party transaction policies.

Hoffmann recused himself from the Board's review and approval of the agreement.

3 PRIVATE PLACEMENT FINANCING AND RELATED AGREEMENTS

3 unchanged sentences

With respect to the standstill, certain investors are each able to purchase up to 600,000 shares of Common Stock during the standstill period.

Since the closing of the Private Placement, our majority owner and Chairman of the Board, David Hoffmann purchased 357,009 shares through March 29, 2026 bringing his percentage ownership to 53.5 %.

Since the closing of the Private Placement, Mr.

Hoffmann purchased the full 600,000 shares through June 28, 2026 bringing his percentage ownership to 54.5 %.

Further, in connection with the closing of the Private Placement, we amended our Certificate of Incorporation, increasing the number of authorized shares from 12,000,000 to 40,000,000 .

Registration Rights Agreement

We entered into a registration rights agreement pursuant to which we will agree to provide certain customary registration rights, including the registration of the Shares for resale.

We were required to use commercially reasonable efforts to file a registration statement with the Securities and Exchange Commission covering the resale by the investors of their shares within 60 days following the closing and S-3 was filed on March 6, 2026.

We entered into a registration rights agreement pursuant to which we agreed to provide certain customary registration rights, including the registration of the Shares for resale.

We were required to use commercially reasonable efforts to file a registration statement with the Securities and Exchange

Commission covering the resale by the investors of their shares within 60 days following the closing and an S-3 was filed on March 6, 2026.

Financing costs

1 unchanged sentence

The following table presents our revenue disaggregated by source:

Three months Ended Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

Three months Ended Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Operating revenue:

38 unchanged sentences

The unearned revenue balances described herein are our only contract liability.

Revenue recognized in the six months ended March 29, 2026, that was included in the contract liability as of September 28, 2025, was $ 21.2 million.

Accounts receivable, excluding allowance for credit losses, was $ 49.3 million and $ 59.4 million as of March 29, 2026, and September 28, 2025 , respectively.

Allowance for credit losses was $ 3.7 million and $ 4.8 million as of March 29, 2026, and September 28, 2025 , respectively.

Revenue recognized in the nine months ended June 28, 2026, that was included in the contract liability as of September 28, 2025, was $ 23.6 million.

Accounts receivable, excluding allowance for credit losses, was $ 48.6 million and $ 59.4 million as of June 28, 2026, and September 28, 2025 , respectively.

Allowance for credit losses was $ 3.7 million and $ 4.8 million as of June 28, 2026, and September 28, 2025 , respectively.

Valuation and qualifying account information related to the allowance for credit losses related to continuing operations is as follows:

(Thousands of Dollars) March 29,

(Thousands of Dollars) June 28,

2026 September 28,

5 unchanged sentences

Sales commissions are expensed as incurred as the associated contractual periods are one year or less.

These costs are recorded within "Compensation" on our Consolidated Statements of Loss and Comprehensive Loss.

These costs are recorded within "Compensation" on our Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

The vast majority of our contracts have original expected lengths of one year or less and revenue is earned at a rate and amount that corresponds directly with the value to the customer.

4 unchanged sentences

Summarized results of TNI are as follows:

Three months ended Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

Three months ended Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Operating revenue 4,524 5,320 14,407 17,609

3 unchanged sentences

Equity in earnings of TNI 539 765 1,958 2,298

TNI makes periodic distributions of its earnings and for the three months ended March 29, 2026 and March 30, 2025, we received $ 0.5 million and $ 1.2 million in distributions, respectively.

In the six months ended March 29, 2026 and March 30, 2025, we received $ 1.1 million and $ 1.7 million in distributions, respectively.

TNI makes periodic distributions of its earnings and for the three months ended June 28, 2026 and June 29, 2025, we received $ 0.7 million and $ 0.7 million in distributions, respectively.

In the nine months ended June 28, 2026 and June 29, 2025, we received $ 1.7 million and $ 2.4 million in distributions, respectively.

Madison Newspapers, Inc.

3 unchanged sentences

Summarized results of MNI are as follows:

Three months ended Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

Three months ended Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Operating revenue 9,640 9,136 27,945 27,974

5 unchanged sentences

Equity in earnings of MNI 384 ( 79 ) 1,052 665

MNI makes periodic distributions of its earnings and in the three months ended March 29, 2026, and March 30, 2025, we received $ 0.4 million and $ 0.0 million i n distributions, respectively.

In the six months ended March 29, 2026 and March 30, 2025, we received $ 0.8 million and $ 0.9 million in distributions, respectively.

MNI makes periodic distributions of its earnings and in the three months ended June 28, 2026, and June 29, 2025, we received $ 0.3 million and $ 0.0 million i n distributions, respectively.

months ended June 28, 2026 and June 29, 2025, we received $ 1.1 million and $ 0.9 million in distributions, respectively.

6 GOODWILL AND OTHER INTANGIBLE ASSETS

1 unchanged sentence

Goodwill and identified intangible assets consist of the following:

(Thousands of Dollars) March 29,

(Thousands of Dollars) June 28,

2026 September 28,

17 unchanged sentences

Separate operating results for each SBU are not reviewed by the CODM when assessing performance or making operating decisions.

The CODM reviews our consolidated statements of (loss) income and balance sheets on a monthly basis and makes key decisions regarding resource allocation, including operating expenses and capital expenditures, primarily focusing on consolidated net (loss) income and consolidated total assets.

The CODM reviews our consolidated statements of income (loss) and balance sheets on a monthly basis and makes key decisions regarding resource allocation, including operating expenses and capital expenditures, primarily focusing on consolidated net income (loss) and consolidated total assets.

These consolidated statements are used by the CODM to monitor budget versus actual results and evaluate the return on assets.

Significant segment expenses are separately disclosed and presented in the Consolidated Statements of Loss and Comprehensive Loss.

Significant segment expenses are separately disclosed and presented in the Consolidated Statements of Income (Loss) and Comprehensive Loss.

The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets.

1 unchanged sentence

We have debt consisting of a single 25 -year term loan with BH Finance LLC, with an aggregate principal balance of $ 454.7 million at an annual fixed rate and maturing on March 16, 2045 (referred to herein as “Credit Agreement” and “Term Loan”).

On March 29, 2026, the fair value was $ 309.6 million, representing a Level 2 fair value measurement, which are fair values estimated using significant other observable inputs.

On June 28, 2026, the fair value was $ 332.5 million, representing a Level 2 fair value measurement, which are fair values estimated using significant other observable inputs.

Concurrently with the execution of the Private Placement agreement discussed in Note 3, we entered into the Second Amendment to Credit Agreement on February 5, 2026.

The amendments include, among other items, a reduction of the applicable margin on our 25 -year term loan from 9.00 % to 5.00 % for a period of 5 years following the closing and amending the definition of “Excess Cash Flow” such that the cash-on hand balance greater than $ 64.0 million held by us will be deemed Excess Cash Flow

for a 5 year period following the closing.

The amendments include,

among other items, a reduction of the applicable margin on our 25 -year term loan from 9.00 % to 5.00 % for a period of 5 years following the closing and amending the definition of “Excess Cash Flow” such that the cash-on hand balance greater than $ 64.0 million held by us will be deemed Excess Cash Flow for a 5 year period following the closing.

The interest rate amendment to 5.00 % is treated as modification to the existing Credit Agreement.

During the six months ended March 29, 2026, we had $ 0.8 million in transactions that generated proceeds that qualified as Net Cash Proceeds, as defined in our Credit Agreement, from asset sales and did not make any principal debt payments.

Future payments are contingent on our ability to generate future excess cash flow, as defined in the Credit Agreement.

As of March 29, 2026, there was no Excess Cash payment due as we did not generate the defined level of Excess Cash Flow.

During the nine months ended June 28, 2026, we had $ 0.8 million in proceeds that qualified as Net Cash Proceeds, as defined in our Credit Agreement, from asset sales which were applied towards our debt principal.

As of June 28, 2026, there was no Excess Cash payment due as we did not generate the defined level of Excess Cash Flow.

In February 2025, in an effort to provide short-term liquidity to fund the Cyber Incident's remediation efforts and other operations, BH Finance LLC waived the interest expense payment and BH Media Group, Inc.

6 unchanged sentences

We are the sponsor of one single-employer defined benefit pension plan, the Lee Enterprises, Incorporated Pension Plan ("the Plan").

As previously announced to participants on October 22, 2025, we are executing a strategic termination of our fully funded benefit pension Plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility.

We terminated the Plan on December 31, 2025 and submitted a request for a determination of the Plan's qualified status to the United States Internal Revenue Service.

We expect to complete the termination process, including payout, in late 2026.

As previously announced to participants on October 22, 2025, we are executing a strategic termination of our fully funded defined benefit pension Plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility.

We established December 31, 2025 as the termination date of the Plan and have submitted a request for a determination of the Plan's qualified status to the United States Internal Revenue Service.

The termination process is ongoing, and we expect to complete it, including the settlement and distribution of Plan assets, in fiscal year 2027.

Additionally, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations.

Through March 29, 2026, our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations.

In the three months ended June 28, 2026, we irrevocably transferred certain postretirement life insurance obligations under our Postretirement Plans to a third-party insurer.

The transaction qualified as a settlement under ASC 715, Compensation—Retirement Benefits and we recognized a settlement gain of approximately $2.3 million, which includes the recognition of the applicable portion of previously deferred actuarial gains associated with the settled obligations.

The settlement gain is recorded on a separate line in the Consolidated Statement of Income (Loss).

Through June 28, 2026, our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations.

The net periodic pension and postretirement cost (benefit) components for our plans are as follows:

PENSION PLAN Three months ended Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

PENSION PLAN Three months ended Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Service cost for benefits earned during the period 1 1 3 3

3 unchanged sentences

Net periodic pension benefit ( 277 ) ( 72 ) ( 830 ) ( 214 )

POSTRETIREMENT MEDICAL PLANS Three months ended Six months ended

(Thousands of Dollars) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

POSTRETIREMENT MEDICAL PLANS Three months ended Nine months ended

(Thousands of Dollars) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Service cost for benefits earned during the period — 1 — 2

3 unchanged sentences

Amortization of prior service benefit ( 71 ) ( 71 ) ( 214 ) ( 214 )

Settlement gain ( 2,330 ) — ( 2,330 ) —

Net periodic postretirement benefit ( 2,954 ) ( 664 ) ( 4,201 ) ( 1,994 )

In the six months ended March 29, 2026 and March 30, 2025, we made no contributions to our pension plans.

In the nine months ended June 28, 2026 and June 29, 2025, we made no contributions to our pension plans.

W e have no required contributions to our pension plans for 2026.

1 unchanged sentence

In prior periods, we completed withdrawals from several multi-employer plans.

As of March 29, 2026 and September 28, 2025, we had $ 21.7 million and $ 22.4 million of accrued withdrawal liabilities.

As of June 28, 2026 and September 28, 2025, we had $ 21.4 million and $ 22.4 million of accrued withdrawal liabilities.

The liabilities reflect the estimated value of payments to the funds, payable over 20 years.

10 INCOME TAXES

We recorded an income tax expense of $ 3.4 million related to income before taxes of $ 1.7 million for the three months ended March 29, 2026, and an income tax expense of $ 4.4 million related to loss before taxes of $ 2.5 million for the six months ended March 29, 2026.

We recorded an income tax benefit of $ 1.8 million related to loss before taxes of $ 13.8 million for the three months ended March 30, 2025, and an income tax expense of $ 1.5 million related to loss before income taxes of $ 26.8 million for the six months ended March 30, 2025.

The effective income tax rate for the three and six months ended March 29, 2026, was 198.3 % and ( 178.3 )%, respectively.

The effective income tax rate for the three and six months ended March 30, 2025, was 12.9 % and ( 5.5 )% respectively.

We recorded income tax expense of $ 1.4 million related to income before taxes of $ 6.6 million for the three months ended June 28, 2026, and income tax expense of $ 5.8 million related to income before taxes of $ 4.1 million for the nine months ended June 28, 2026.

We recorded an income tax benefit of $ 2.7 million related to loss before taxes of $ 4.4 million for the three months ended June 29, 2025, and an income tax benefit of $ 1.3 million related to loss before income taxes of $ 31.2 million for the nine months ended June 29, 2025.

The effective income tax rate for the three and nine months ended June 28, 2026, was 21.3 % and 140.4 %, respectively.

The effective income tax rate for the three and nine months ended June 29, 2025, was 61.4 % and 4.2 % respectively.

The primary differences between these rates and the U.S.

1 unchanged sentence

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 34 state and local jurisdictions.

We do not currently have any federal or material income tax examinations in progress.

We do not currently have any federal or material income tax

examinations in progress.

Our income tax returns have generally been audited or closed to audit through 2017.

10 LOSS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

Three months ended Six months ended

(Thousands of Dollars and Shares, Except Per Share Data) March 29,

2026 March 30,

2025 March 29,

2026 March 30,

Loss attributable to Lee Enterprises, Incorporated:

11 EARNINGS (LOSS) PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per common share:

Three months ended Nine months ended

(Thousands of Dollars and Shares, Except Per Share Data) June 28,

2026 June 29,

2025 June 28,

2026 June 29,

Net earnings (loss) attributable to Lee Enterprises, Incorporated:

4,675 ( 1,920 ) ( 3,085 ) ( 31,179 )

4 unchanged sentences

Diluted average common shares 22,285 6,112 14,040 6,043

Loss per common share:

Net earnings (loss) per common share:

Basic 0.21 ( 0.31 ) ( 0.22 ) ( 5.16 )

Diluted 0.21 ( 0.31 ) ( 0.22 ) ( 5.16 )

For the three and six months ended March 29, 2026 and March 30, 2025, no shares were considered in the computation of diluted earnings per common share because we recorded net losses.

For the three months ended June 28, 2026, 51,000 shares were excluded from the computation of diluted earnings per common share because their effect would have been antidilutive.

No shares were considered in the computation of diluted earnings per common share for the three month period ended June 29, 2025 and nine month periods ended June 28, 2026 and June 29, 2025 because we recorded net losses in those periods.

The increase in weighted common shares is due to shares issued for the Private Placement on February 5, 2026 described in Note 3.

13 unchanged sentences

Since the incident, we have incurred $ 10.5 million in cash flow losses attributable to the cyber incident, which have been submitted for recovery to our insurance providers.

Approximately $ 3.7 million of incurred expenses and $ 2.0 million of reimbursements were recognized in "Restructuring and Other" in the Consolidated Statements of Loss and Comprehensive Loss during the year ended September 28, 2025.

For the six months ended March 29, 2026, we have received $ 0.8 million of reimbursements,

which are presented as a reduction of related costs within “Restructuring and other” and $ 5.8 million in business interruption reimbursements that were recorded on a separate line within "Operating Expenses".

Approximately $ 3.7 million of incurred expenses and $ 2.0 million of business interruption reimbursements were recognized in "Restructuring and Other" in the Consolidated Statements of Loss and Comprehensive Loss during the year ended September 28, 2025.

For the nine months ended June 28, 2026, we have received $ 0.9 million of reimbursements, which are presented as a reduction of related costs within “Restructuring and other” and $ 6.4 million in business interruption reimbursements that were recorded on a separate line within "Operating Expenses".

13 COMMITMENTS AND CONTINGENT LIABILITIES

10 unchanged sentences

In July 2023, the Court denied our Motion to Dismiss.

This claim was submitted for coverage under the our media insurance policy.

This claim was submitted for coverage under our media insurance policy.

The parties successfully mediated the case on November 5, 2024, and the court granted final approval of the class action settlement on August 14, 2025.

The entire $ 9.5 million settlement amount was paid by our insurance carriers in October 2025.

Lee Enterprises.

Incorporated (Cyber Incident) .

Payments to class members went out in October 2025.

This case is now closed.

Lee Enterprises, Incorporated (Cyber Incident) .

On June 12, 2025, Sarah Fetes filed a Complaint in the U.S.

7 unchanged sentences

We anticipate final approval of the settlement by August 2026.

The probable settlement liability and insurance receivable are recorded within “Compensation and other accrued liabilities” and “Prepaids and other” on the Consolidated Balance Sheets as of March 29, 2026.

Lineup Systems Corporation v.

7 unchanged sentences

Discovery is ongoing in this case and the outcome is uncertain at this time.

13 SUBSEQUENT EVENT

On April 23, 2026, the Board of Directors appointed Nathan E.

Bekke as President and Chief Executive Officer of the Company and Joshua P.

Rinehults as Vice President, Chief Financial Officer and Treasurer.

The Associated Press v.

Lee Enterprises, Incorporated .

In June 2026, The Associated Press ("AP") filed a lawsuit against us in New York State Court alleging that we breached the parties' agreement.

seeks to recover alleged damages, including amounts purportedly due under the agreement, together with interest, attorneys' fees, and other relief requested in the complaint.

At this stage of the proceedings, loss is not reasonably estimable.

14 SUBSEQUENT EVENTS

On July 23, 2026, the Company completed the sale of its property located in Davenport, Iowa.

The transaction generated Net Cash Proceeds, as defined in the Company's Credit Agreement, of approximately $ 2.2 million, which were applied toward principal repayments of the Term Loan in accordance with the Credit Agreement.

In addition, subsequent to quarter-end, the Company entered into purchase agreements for several additional properties through auctions in July 2026 with aggregate contract values of approximately $ 6.8 million.

The remaining transactions are expected to close during the fourth quarter of 2026, subject to customary closing conditions, and have not been reflected in the accompanying consolidated financial statements.

On July 24, 2026, we amended our Stock Purchase Agreement with the Investors to modify the standstill provisions, permitting Investors owning more than 10 % of the Company's common stock to purchase up to 600,000 shares during the standstill period, and to exceed that limit through Company-approved Rule 10b5-1 trading plans.

All other terms of the Stock Purchase Agreement remain unchanged.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements