LEE Enterprises (LEE) risk factors, FY2025 10-K

Risks Related to our Business and Operations

1. 01Our advertising revenues may decline due to weakness in the retail sector
2. 02Our ability to generate revenue is highly sensitive to the strength of the economies in which we operate and the demographics of the local communities we serve
3. 03Uncertainty and adverse changes in the general economic conditions of markets in which we participate and increases in costs of raw materials, energy, labor and other factors may negatively affect our business
4. 04The collectability of accounts receivable under adverse economic conditions could deteriorate to a greater extent than provided for in our financial statements and in our projections of future results
5. 05The value of our intangible assets may become further impaired, depending upon future operating results22% rewritten
6. 06Attracting and retaining highly qualified personnel is difficult and costly, but the failure to do so could negatively affect our operations
7. 07Natural disasters, extreme weather conditions, public health emergencies or other catastrophic events could negatively affect our business, financial condition, and results of operations

Risks Related to our Common Stock

1. 08We have no current plans to pay cash dividends on our common stock; as a result, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for itNew
2. 09Provisions of our certificate of incorporation and by-laws may delay or prevent a takeover, which may not be in the best interest of our stockholdersNew
3. 10Equity ownership may become diluted if we conduct the proposed rights offering or another potential equity financing transactionNew
4. 11The stockholder rights plan, or “poison pill,” includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorableNew

Risk Related to Competition from Digital Media and Artificial Intelligence

1. 12Our operating revenue may be materially adversely affected if we do not successfully respond to the shift in newspaper readership and advertising expenditures away from traditional print media and towards digital media. Significant capital investments may be needed to respond to this shift
2. 13We compete with a large number of companies in the local media industry, including digital media businesses and, if we are unable to compete effectively, our advertising and subscription revenues may decline90% rewritten
3. 14Generative Artificial Intelligence (AI), as a rapidly developing technology, subjects us to risks involving security, protection of intellectual property, ethical concerns, brand trust, reputational harm, legal liability, and the maintenance and growth of revenue streams

Risks Related to Our Indebtedness and Liquidity

1. 15Our indebtedness could materially and adversely affect our business or financial condition
2. 16Certain actions, including our ability to incur additional indebtedness, require the consent of our lender which, if not provided, would limit our ability to take advantage of future opportunities