Lee Enterprises, Incorporated (LEE): Business Model Canvas [Dec-2025 Updated]

You're analyzing a legacy media player, Lee Enterprises, Incorporated (LEE), deep in the necessary, though often painful, digital transition. Honestly, the numbers show they are making serious headway: digital sources now drive over half the business, with digital-only subscriptions alone bringing in $94 million for FY2025, supported by 633,000 digital subscribers by Q4. They are balancing this growth against a significant $455 million term loan, proving that disciplined execution is key. This Business Model Canvas lays out the exact nine blocks they use to keep the lights on and the local news flowing-it's the blueprint for the modern local news fight, so let's dive into the mechanics below.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Lee Enterprises, Incorporated maintains to power its digital-first strategy as of late 2025. These aren't just vendor agreements; they are foundational to managing debt and scaling digital offerings.

Cloud Infrastructure and Content Delivery: Amazon Web Services (AWS)

Lee Enterprises selected Amazon Web Services (AWS) as its Preferred Cloud Provider to modernize its cloud infrastructure and accelerate Generative AI (GenAI) platform development. This move is central to advancing the digital transformation strategy, aiming to enhance subscriber experiences and advertising services through cutting-edge technologies. Key components of this partnership include leveraging specific AWS services:

• Amazon Bedrock for accessing high-performing models via a single API.
• Amazon Redshift for cost-effective cloud data warehousing and analysis.
• Amazon Nova foundation models, available exclusively on Amazon Bedrock.

AI Technology Partners for News Innovation: Perplexity and ProRata.ai

Strategic alliances with AI innovators like Perplexity and ProRata.ai are designed to scale rapidly and solidify Lee Enterprises' position in the local market. These partnerships help redefine how communities interact with local news and advertising, focusing on personalized content and real-time ad production. For context on the digital scale these partnerships support, Lee Enterprises reported Total Digital Revenue of $298 million in fiscal year 2025, which was 53% of total operating revenue of $562 million.

Here's a quick look at the scale of the digital business these partners help enhance:

Sole Lender for Term Loan: BH Finance

The relationship with BH Finance is a primary financial partnership, governing the company's significant debt load. As of September 28, 2025, the principal amount of debt outstanding under the Credit Agreement with BH Finance totaled $455 million. This financing carries a fixed annual interest rate of 9.0% and features a 25-year maturity with no fixed principal payments. To manage this, Lee Enterprises announced an intent to pursue a rights offering of up to $50.0 million. If successful, an agreement in-principle with BH Finance would reduce the loan's annual interest rate from 9% to 5% for five years, resulting in interest savings of approximately $18 million annually, or up to $90 million over the five-year period. The original loan size was $576 million.

The lender provided short-term relief in 2025, waiving the March, April, and May interest payments following a cyberattack.

Local Businesses for Amplified Digital Agency Services

Local businesses are key customers for Lee Enterprises' Amplified Digital® Agency, which provides full-service digital marketing. This agency is a major component of the digital revenue stream. For the full fiscal year 2025, Amplified Digital® Agency revenue totaled more than $100 million, marking 5% same-store growth for the year. This revenue stream represented a significant portion of the total digital advertising and marketing services revenue.

• FY 2025 Amplified Digital Agency Revenue: More than $100 million.
• FY 2025 Amplified Digital Agency Growth (Same-Store): 5%.
• Q3 2025 Amplified Digital Agency Revenue: $29 million.
• Q1 2025 Amplified Digital Agency Revenue: $24 million.

Finance: draft 13-week cash view by Friday.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Key Activities

You're looking at the core actions Lee Enterprises, Incorporated (LEE) is taking to run the business as of late 2025. These aren't just things they do; they are the specific, measurable activities driving their transformation.

Executing the Three Pillar Digital Growth Strategy

The execution of the Three Pillar Digital Growth Strategy is central to Lee Enterprises, Incorporated (LEE)'s operations, aiming for a significant digital revenue mix. The company finished fiscal year 2025 with total operating revenue of $562 million. Digital revenue represented 53% of that total, amounting to $298 million for the full year. The strategy has a long-term goal to achieve $450 million in digital revenue by 2030.

Here's a look at the key performance indicators tied to this strategy for the fiscal year ended September 28, 2025:

This strategy is built on driving recurring revenue; for instance, digital-only subscription revenue increased 32% annually over the past three years.

Producing high-quality, trusted local news content daily

A foundational activity is the daily production of local news content across the company's footprint. Lee Enterprises, Incorporated (LEE) provides this content across 72 markets. The content supports a subscriber base that, as of the end of the quarter, included approximately 890,000 total digital and print subscribers. This activity is supported by a print revenue base that was $264 million in FY2025.

Managing a full-service digital marketing agency (Amplified Digital)

Managing the Amplified Digital Agency is a key revenue-generating activity. For the full fiscal year 2025, the agency's revenue surpassed $100 million. On a same-store basis, this activity showed growth of 5%. To give you a more recent snapshot, the Q4 2025 revenue for the Amplified Digital agency was $25 million.

The agency's performance is part of the broader digital advertising and marketing services, which totaled $44 million in Q4 2025, representing 74% of total advertising revenue for that quarter.

Disciplined cost management, achieving $524 million in FY2025 Cash Costs

Disciplined cost management is a critical ongoing activity. For the fiscal year 2025, Lee Enterprises, Incorporated (LEE) achieved Cash Costs totaling $524 million. This represented a 5% decrease compared to the prior year. Total Operating Expenses for FY2025 were $571 million. The company executed approximately $40 million in annualized cost reductions during the second quarter of FY2025.

The focus on cost control is also evident in the reduction of debt-related expenses; a proposed rights offering is expected to cut annual interest expense by about $18 million if the term loan interest rate is reduced from 9% to 5% for five years.

Monetizing noncore assets, with $25 million identified for future sales

Monetizing noncore assets is an active part of the strategy to improve liquidity and support debt repayment. In the first quarter of fiscal 2025, Lee Enterprises, Incorporated (LEE) achieved $5 million in non-core asset sales. Furthermore, an additional $25 million has been identified for future monetization. Total asset sales that closed in 2025 amounted to $9 million.

Finance: draft 13-week cash view by Friday.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Key Resources

You're looking at the core assets Lee Enterprises, Incorporated (LEE) relies on to execute its digital-first strategy as of late 2025. These aren't just line items; they are the engines driving revenue and market presence.

The foundation remains its extensive geographic footprint. Lee Enterprises operates a portfolio of local news brands across 72 U.S. markets in 25 states. This includes publishing 72 daily newspapers and more than 350 weekly, classified, and specialty publications. This local depth is what the digital transformation is built upon.

Subscriber scale is a critical digital asset. As of the end of Q4 FY2025, the company reported 633,000 digital-only subscribers. This base is crucial, especially considering digital-only subscription revenue increased 16% year-over-year on a same-store basis in that quarter. To give you a clearer picture of the scale and recent performance underpinning these resources, here's a quick look at the Q4 FY2025 snapshot:

The technology stack is increasingly proprietary, centered around digital advertising and marketing services. This includes the operations of its Amplified Digital Agency, which generated more than $100 million in revenue for fiscal year 2025. Lee Enterprises is actively enhancing this stack by integrating artificial intelligence, launching solutions like AmplifiedDigital.AI, which features tools for AI Visibility, content creation, and distribution across AI engines. They are also leveraging partnerships, such as with Perplexity, to generate content for local businesses.

Human capital remains vital. The company relies on its experienced local journalists and sales teams to produce the content and sell the digital services that drive revenue. While specific current staffing numbers are tight, the commitment to talent is shown by the specialized teams, such as the 12-member Public Service Journalism team focused on investigative and data-focused reporting, designed to augment local newsrooms.

Finally, the balance sheet structure provides a unique form of resource security. The long-term, favorable debt structure is a key feature. The total principal amount of debt outstanding was $455 million as of September 28, 2025. What makes this structure a resource is its terms: a 25-year maturity, a fixed annual interest rate of 9.0%, and critically, no fixed principal payments and no financial performance covenants. That lack of restrictive covenants helps operational flexibility.

Finance: draft 13-week cash view by Friday.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Value Propositions

You're looking at the core value Lee Enterprises, Incorporated (LEE) delivers to its customers as of late 2025. It's a dual focus: serving communities with essential local information while simultaneously providing robust digital tools for local businesses.

Trusted, in-depth local news and information for communities

The foundational value proposition remains providing high-quality, trusted local news and information. Lee Enterprises, Incorporated serves a wide footprint, currently reaching readers across 72 markets in 25 states. This commitment is supported by a large base of paying readers, with the company reporting 633,000 digital-only subscribers at the end of the fourth quarter of fiscal year 2025.

This digital subscription base is a key driver of recurring value, showing consistent growth. The digital-only subscription revenue for the full fiscal year 2025 reached $94 million, marking an industry-leading 16% year-over-year growth on a same-store basis for that revenue stream.

Digital marketing services for small and medium-sized businesses (SMBs)

Beyond news delivery, Lee Enterprises, Incorporated offers innovative marketing services to local advertisers, primarily SMBs, through its Amplified Digital Agency. This service line is a significant value proposition, diversifying revenue away from pure content subscriptions. For the fiscal year 2025, revenue from the Amplified Digital Agency surpassed the $100 million mark, achieving 5% growth on a same-store basis for the year.

This digital advertising and marketing segment is critical to the overall digital health of the company. Here's a quick look at how the revenue streams stacked up in FY2025:

The digital portion of the business now represents 53% of total operating revenue, showing the market's preference for these digital value-adds.

Print products for audiences not yet fully transitioned to digital

While the strategic focus is digital-first, Lee Enterprises, Incorporated still provides value through its legacy print products for segments of its audience that haven't fully moved online. This segment supports the overall community reach and provides a necessary bridge for some advertisers and readers. For the full fiscal year 2025, total print revenue was reported at $264.2 million.

The value proposition here is maintaining comprehensive market coverage, even as this revenue stream naturally declines. The company is executing a strategy that balances the growth of its digital offerings with the continued servicing of its print-reliant customer base. The key components of the digital transformation supporting these value propositions include:

• Accelerating digital-only subscription growth.
• Diversifying product offerings for advertisers.
• Driving digital revenue toward a goal of $450 million by fiscal 2030.

Finance: draft 13-week cash view by Friday.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Customer Relationships

Lee Enterprises, Incorporated focuses its customer relationships on driving digital adoption across its local news platforms and through its specialized marketing services arm.

Automated, self-service digital subscription management is central to converting casual readers. As of the end of the fourth quarter of fiscal year 2025, Lee Enterprises reported 633,000 digital-only subscribers. For the full fiscal year 2025, revenue from these digital-only subscriptions reached $94 million. This segment has shown consistent strength, with digital-only subscription revenue increasing 16% year-over-year for the quarter on a same-store basis, marking five consecutive years of industry-leading performance.

The company utilizes paywall models to convert casual readers to paying subscribers. In earlier testing, the adoption of a dynamic paywall strategy resulted in a meter stop rate more than doubling, up to 15%, and generated 187% growth in conversions for the test sites compared to their prior weekly average. The long-term goal is to grow the subscriber base to surpass 1.2 million by fiscal 2030.

For business customers, Lee Enterprises deploys dedicated sales and service teams for Amplified Digital Agency clients. This agency, which is a key component of the digital strategy, surpassed $100 million in revenue for fiscal year 2025. The agency achieved 5% growth on a same-store basis for the full fiscal year 2025. The agency's revenue for the fourth quarter of fiscal 2025 was reported as $25 million.

Community engagement via local events and print/digital platforms remains a foundation, as Lee Enterprises serves customers across 72 markets. The company's overall digital focus is clear, with Total Digital Revenue for fiscal 2025 reaching $298 million, which accounted for 53% of the total operating revenue of $562 million.

Here's a look at the key financial metrics related to customer revenue streams for fiscal year 2025:

The relationship management efforts are supported by the overall digital scale:

• Digital-only subscribers totaled 633,000 as of September 28, 2025.
• Digital-only subscription revenue has grown 32% annually over the past three years.
• The company operates in 72 markets.
• Digital revenue is projected to reach 90% of total revenue by fiscal 2030.
• The company is executing a strategic termination of its fully funded benefit pension plan, which impacts long-term customer/employee relationship stability through balance sheet flexibility.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Channels

You're looking at how Lee Enterprises, Incorporated (LEE) gets its product-trusted local news and advertising services-into the hands of customers as of late 2025. The channels clearly show a company aggressively pivoting to digital, though print still carries significant weight.

The overall picture for fiscal year 2025 shows total operating revenue at $562 million, with the digital side now firmly in the lead, representing 53% of that total, or $298 million. This is a major shift; digital revenue was only 21% of total revenue back in fiscal 2020. Digital is the primary channel for growth, while print is managed for decline.

Local newspaper websites and mobile applications

This is the core digital delivery mechanism for Lee Enterprises, Incorporated. The company operates websites and mobile applications supporting its 72 daily newspapers and other publications. This channel is responsible for driving the crucial digital subscription revenue.

For the full fiscal year 2025, revenue from digital-only subscribers reached $94 million, or $94.2 million, showing an 11.8% growth for the year. In the fourth quarter alone, digital-only subscription revenue was $25 million, marking a strong 16% year-over-year increase. The base of dedicated digital customers reached 633,000 by the end of the fiscal year. Historically, Lee Enterprises has seen more than 26 million unique web and mobile visitors monthly.

• Digital-only subscribers totaled 633,000 as of September 28, 2025.
• Digital-only subscription revenue grew 16% year-over-year in Q4 FY25.
• Digital-only subscription revenue has increased 32% annually over the past three years.

Print newspapers and specialty publications

This represents the legacy distribution channel, encompassing daily, weekly, and specialty print products across 72 markets. While declining, it still accounts for a substantial portion of the top line. For the full fiscal year 2025, Total Print Revenue was $264 million. This figure represents a 15% decline from the prior year. The company is actively managing this channel's decline by reducing print frequency; for instance, Monday editions were cut for several Midwest publications, including the Omaha World-Herald and St. Louis-Post Dispatch, in late 2025.

Here's a look at the revenue split for the full fiscal year 2025:

Amplified Digital Agency direct sales force

The Amplified Digital Agency is a key component of the digital advertising channel, utilizing a direct sales force to deliver marketing services to small and medium-sized businesses (SMBs). This agency's performance is a direct indicator of the success of their advertising solutions delivery.

For the full fiscal year 2025, Amplified Digital Agency revenue surpassed $100 million, specifically reaching $103 million. This represented a 5% same-store growth for the year, though Q4 saw a 9% year-over-year fall to $25 million. The agency has shown a three-year Compound Annual Growth Rate (CAGR) of 5%.

Social media and search engine distribution for content reach

While not always broken out as a distinct revenue line, distribution via social media and search engines is integral to driving traffic to the local newspaper websites and mobile applications, which then converts to subscriptions or advertising impressions. Digital advertising and marketing services revenue, which relies heavily on these platforms for reach, totaled $44 million in Q4 2025.

The overall digital advertising and marketing services revenue represented 74% of the total advertising revenue in Q4. Digital services revenue, which is predominantly from BLOX Digital, contributed $5 million in Q4 and $5 million for the full fiscal year.

Finance: draft 13-week cash view by Friday.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Customer Segments

You're looking at the core groups Lee Enterprises, Incorporated (LEE) serves as of its late 2025 reporting. The business model clearly targets both content consumers and businesses needing to reach those consumers across its 72 markets.

The customer base is segmented into those paying directly for content and those paying for advertising and marketing services. The digital shift is evident, with digital revenue making up 53% of total operating revenue in the fourth quarter of fiscal 2025.

Here's a breakdown of the key customer segments Lee Enterprises, Incorporated serves, grounded in the fiscal year 2025 numbers:

• Local residents seeking trusted, high-quality local news, evidenced by the 633,000 digital-only subscribers at the end of Q4 FY2025.
• Small and medium-sized businesses (SMBs) needing digital marketing services, primarily served through the Amplified Digital® Agency.
• Regional and national advertisers for print and digital ad space, which contribute to the print and digital advertising revenue streams.
• Print-loyal subscribers in 72 markets, representing the legacy, but still substantial, subscription base.

To give you a clearer picture of the financial weight of these segments based on the fiscal year ended September 28, 2025, look at how the revenue streams map to these customers:

The digital consumer segment shows strong engagement; digital-only subscription revenue grew 11.8% year-over-year for the full fiscal year 2025, reaching $94.2 million.

For the advertising side, which includes both SMBs and larger advertisers, the digital component is now dominant. Total Digital Revenue for the full year was $298 million, while Total Print Revenue was $264 million.

The Amplified Digital® Agency, which targets the business segment, is a significant revenue driver, exceeding $100 million in revenue for the fiscal year, showing 5% growth for the year.

It's defintely worth noting the print segment is still large, but shrinking; Total Print Revenue for FY2025 was $264 million, a 15% decline year-over-year.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Cost Structure

The Cost Structure for Lee Enterprises, Incorporated centers heavily on the expenses required to maintain its legacy print operations while funding the digital transition, all under the burden of significant debt financing.

Personnel costs for editorial staff, sales teams, and digital development represent a substantial portion of the overall operational outlay. These costs are embedded within the total reported operating expenses for the fiscal year 2025.

Print production and distribution expenses are directly linked to the remaining print revenue stream. For fiscal year 2025, the company generated $264 million in Print Revenue, which saw a 15% decline year-over-year.

Financing costs are a critical, fixed component. Lee Enterprises carried $455 million of debt outstanding under its Credit Agreement as of September 28, 2025. This debt bears a fixed annual interest rate of 9.0%. Based on this, the annual interest obligation would be approximately $40.95 million ($455 million multiplied by 9%). The company has an agreement in principle to potentially cut this rate to 5% for five years, which would result in annual interest savings of about $18 million if a proposed $50 million rights offering is fully subscribed.

Technology and cyber restoration costs are a necessary, non-recurring drain on resources. Operating expenses for fiscal year 2025 included $4 million in cyber restoration expenses related to the February 2025 incident. One report noted $3.7 million of these expenses.

The overall cost base reflects the ongoing operational scale. Total Operating Expenses for fiscal year 2025 were $571 million. Cash Costs, which exclude certain non-cash items, totaled $524 million for the same period.

Here's a breakdown of the key cost and related revenue/debt metrics for the fiscal year ended September 28, 2025:

The company has been disciplined on the expense side, reporting a 7% decrease in operating expenses and a 5% decrease in Cash Costs compared to the prior year.

• Digital Revenue for FY2025 was $298 million.
• Digital-only subscription revenue grew 11.8% to $94.2 million for the full year.
• Amplified Digital Agency revenue surpassed $100 million in fiscal year 2025.
• Capital expenditures for the full year 2025 were $4 million.

Lee Enterprises, Incorporated (LEE) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Lee Enterprises, Incorporated as of late 2025, and it's a story of digital acceleration battling secular print decline. The overall picture shows a company heavily invested in its digital pivot, which is now the majority of its revenue base.

For the fiscal year 2025, Lee Enterprises, Incorporated reported a total operating revenue of $562 million. This figure represented an 8% drop from the prior year, but the composition of that revenue is what really tells the story of the business model shift.

The digital segment is now the primary driver, accounting for $298 million, which made up 53.0% of the total operating revenue for fiscal year 2025. Conversely, Total Print Revenue settled at $264 million, marking a significant 15% decrease year-over-year.

Here is the breakdown of the key revenue components:

• Digital-only subscription revenue: $94 million in FY2025.
• Digital advertising and marketing services (Amplified Digital): $103 million in FY2025.
• Print advertising revenue (declining)
• Print subscription and single-copy sales (declining)
• Total operating revenue of $562 million for fiscal year 2025.

The digital-only subscription stream is definitely gaining traction. The reported figure of $94 million for FY2025 aligns closely with the reported $94.2 million in the annual filing, showing an 11.8% year-over-year growth rate. This success supports a base of more than 633,000 digital-only subscribers by the end of the fiscal year. Honestly, five consecutive years of industry-leading digital subscription performance is a strong signal.

The digital advertising arm, Amplified Digital® agency, is another critical pillar. The requested figure of $103 million is consistent with the reported result of surpassing $100 million in revenue for the year, reflecting a 4% or 5% growth rate, depending on the specific reporting metric used. This segment, combined with other digital advertising revenue, is key to offsetting print weakness.

The traditional print revenue streams continue their expected erosion, but the rate of decline is slowing down, which is a small win in a tough market. Print advertising revenues specifically landed at $69.2 million, which was a 15.1% drop compared to the prior year. The remaining print revenue is comprised of subscription and single-copy sales, which are also declining as the model shifts.

You can see the revenue split clearly in this table:

To summarize the revenue mix with more detail on the digital side:

• Digital Revenue accounted for 53.0% of total operating revenue.
• Digital-only subscription revenue growth was 11.8%.
• Amplified Digital Agency revenue growth was between 4% and 5%.
• Total digital revenue, including advertising, was $298.1 million.
• Print revenue decline of 15% was a 10 percentage-point improvement over the prior year's decline.

Finance: draft 13-week cash view by Friday.