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DallasNews Incurs a Wider Y/Y Loss in Q2, Cuts Operating Costs
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Shares of DallasNews Corporation (DALN - Free Report) have gained 0.9% since the company reported its second-quarter 2025 results, modestly outperforming the S&P 500 index’s 0.6% decline over the same period. More notably, over the past month, the stock has skyrocketed by 226.2%, in stark contrast to the S&P 500’s 2% growth. This dramatic surge suggests that investors responded positively to strategic developments and possibly anticipated future value creation.
DallasNews incurred a net loss of $6.26 per share against a net income of 27 cents per share a year ago.
The company reported total net operating revenues of $29.8 million for the second quarter, marking an 7.2% decline from $32.1 million in the year-ago quarter.
The company swung to a net loss of $33.5 million from a net income of $1.5 million a year earlier. This sharp downturn was largely attributable to a non-cash pension settlement charge of $35.3 million, which significantly impacted the bottom line.
On a non-GAAP basis, which adjusts for one-time items such as the pension charge, adjusted operating income increased to $1.6 million compared to $1.2 million in the prior-year quarter. Adjusted operating expense for the quarter stood at $28.2 million, down from $30.9 million in the second quarter of 2024.
DallasNews Corporation Price, Consensus and EPS Surprise
Revenue from advertising and marketing services declined 3.8% year-over-year to $12.3 million, primarily due to a 4.6% drop in print advertising revenue. Circulation revenue also dipped 5.7% to $15.3 million, largely driven by a 5.9% decrease in print circulation revenue. Printing, distribution, and other revenues fell by 29%, down to $2.2 million, reflecting the cancellation of a printing contract in April 2025.
Segment-wise, the TDMN (The Dallas Morning News) business generated $25.9 million in revenue, down from $28.1 million in the prior-year quarter. The agency segment posted $3.9 million in revenue, a slight dip from $4 million last year. Despite the revenue decline, agency segment profit improved to $0.2 million from $0.03 million, suggesting improved operational efficiency.
Management Commentary
The company highlighted that the completion of its pension annuitization process was a key milestone. The $35.3 million non-cash charge, while dragging down current earnings, effectively removes future pension-related volatility from the balance sheet. DallasNews also emphasized cost control measures, with a $2.4 million reduction in adjusted operating expenses year-over-year.
According to the release, as of June 30, 2025, DallasNews had no debt and held $33.7 million in cash, providing a solid liquidity cushion. The company had 451 employees at the end of the quarter and continues to streamline operations following the 2023 transition out of its Plano printing facility.
Factors Influencing Results
The second quarter results were impacted by both strategic transitions and industry-wide pressures. The decline in print advertising and circulation revenue reflects continued headwinds in the traditional newspaper business. Additionally, the cancellation of a multi-decade printing agreement in April 2025 materially affected other revenue streams.
On the cost side, total operating expenses were $28.5 million, a reduction from $31.5 million a year ago. This decrease was primarily driven by reductions in employee compensation and production costs, though partially offset by an increase in severance expenses.
Other Developments
A pivotal development during the quarter was DallasNews’ entry into a definitive Agreement and Plan of Merger with Hearst Media West, LLC, announced on July 9, 2025.
This merger marks a significant turning point for DallasNews, aligning it with a major media conglomerate at a premium valuation, and could potentially reshape its operational and strategic direction in the quarters ahead.
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DallasNews Incurs a Wider Y/Y Loss in Q2, Cuts Operating Costs
Shares of DallasNews Corporation (DALN - Free Report) have gained 0.9% since the company reported its second-quarter 2025 results, modestly outperforming the S&P 500 index’s 0.6% decline over the same period. More notably, over the past month, the stock has skyrocketed by 226.2%, in stark contrast to the S&P 500’s 2% growth. This dramatic surge suggests that investors responded positively to strategic developments and possibly anticipated future value creation.
DallasNews incurred a net loss of $6.26 per share against a net income of 27 cents per share a year ago.
The company reported total net operating revenues of $29.8 million for the second quarter, marking an 7.2% decline from $32.1 million in the year-ago quarter.
The company swung to a net loss of $33.5 million from a net income of $1.5 million a year earlier. This sharp downturn was largely attributable to a non-cash pension settlement charge of $35.3 million, which significantly impacted the bottom line.
On a non-GAAP basis, which adjusts for one-time items such as the pension charge, adjusted operating income increased to $1.6 million compared to $1.2 million in the prior-year quarter. Adjusted operating expense for the quarter stood at $28.2 million, down from $30.9 million in the second quarter of 2024.
DallasNews Corporation Price, Consensus and EPS Surprise
DallasNews Corporation price-consensus-eps-surprise-chart | DallasNews Corporation Quote
Other Key Business Metrics
Revenue from advertising and marketing services declined 3.8% year-over-year to $12.3 million, primarily due to a 4.6% drop in print advertising revenue. Circulation revenue also dipped 5.7% to $15.3 million, largely driven by a 5.9% decrease in print circulation revenue. Printing, distribution, and other revenues fell by 29%, down to $2.2 million, reflecting the cancellation of a printing contract in April 2025.
Segment-wise, the TDMN (The Dallas Morning News) business generated $25.9 million in revenue, down from $28.1 million in the prior-year quarter. The agency segment posted $3.9 million in revenue, a slight dip from $4 million last year. Despite the revenue decline, agency segment profit improved to $0.2 million from $0.03 million, suggesting improved operational efficiency.
Management Commentary
The company highlighted that the completion of its pension annuitization process was a key milestone. The $35.3 million non-cash charge, while dragging down current earnings, effectively removes future pension-related volatility from the balance sheet. DallasNews also emphasized cost control measures, with a $2.4 million reduction in adjusted operating expenses year-over-year.
According to the release, as of June 30, 2025, DallasNews had no debt and held $33.7 million in cash, providing a solid liquidity cushion. The company had 451 employees at the end of the quarter and continues to streamline operations following the 2023 transition out of its Plano printing facility.
Factors Influencing Results
The second quarter results were impacted by both strategic transitions and industry-wide pressures. The decline in print advertising and circulation revenue reflects continued headwinds in the traditional newspaper business. Additionally, the cancellation of a multi-decade printing agreement in April 2025 materially affected other revenue streams.
On the cost side, total operating expenses were $28.5 million, a reduction from $31.5 million a year ago. This decrease was primarily driven by reductions in employee compensation and production costs, though partially offset by an increase in severance expenses.
Other Developments
A pivotal development during the quarter was DallasNews’ entry into a definitive Agreement and Plan of Merger with Hearst Media West, LLC, announced on July 9, 2025.
This merger marks a significant turning point for DallasNews, aligning it with a major media conglomerate at a premium valuation, and could potentially reshape its operational and strategic direction in the quarters ahead.