Published on: May 15, 2025
A cyberattack earlier this year has left Lee Enterprises grappling with a $2 million bill and a dip in advertising revenue, the company revealed. It also said that many of those expenses may eventually be reimbursed through insurance. The claims process is still underway, according to CFO Tim Millage.
The Iowa-based media company, which owns dozens of newspapers across the country, was hit in February when hackers infiltrated its systems, encrypting key applications and stealing sensitive data.
The cyberattack has been linked to the Qilin ransomware group, a known ransomware-as-a-service operation. Qilin claimed responsibility for the breach, alleging it had stolen 350 gigabytes of data from Lee Enterprises and threatening to leak portions of the information.
However, it remains unclear whether any of that data was actually released. A spokesperson for Lee Enterprises said the company is actively investigating the matter. The company also never revealed how the bad actors were able to breach its IT network.
Regardless, the breach caused significant operational disruptions. According to Millage, the attack temporarily crippled the company’s financial systems — halting billing, delaying collections from customers, and restricting payments to vendors.
“While technical recovery is complete, there are some lingering impacts on our balance sheet, as we aim to improve working capital by reducing both accounts receivable and outstanding accounts payable throughout the remainder of the fiscal year,” Millage explained during a quarterly earnings call with analysts last week.
To help ease the financial strain caused by the cyberattack, Lee Enterprises received a temporary lifeline from its sole lender, BH Finance. The lender agreed to waive interest and base rent payments for March, April, and May to give the company some breathing room as it dealt with the aftermath of the breach.
Lee Enterprises currently holds $453 million in outstanding debt under its agreement with BH Finance, making the lender’s support a crucial buffer.
Despite the disruption, Lee Enterprises brought in $137 million in total operating revenue for the quarter, with digital revenue showing modest growth, which is up 3 percent year-over-year to $73 million, or 4 percent on a same-store basis.