Nexstar Media Group, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 6 November 2025: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Net revenue fell on political: Net revenue was $1.20 billion, down $168 million or 12.3%, primarily from lower political advertising tied to the election cycle. Source
• Net income fell to $65 million: Net income was $65 million, down 63.9%, with margin of 5.4% against 13.2%. The company cited lower political revenue, one-time TEGNA-related corporate expenses, a customer claim resolution and lower TVFN equity income. Source
• Adjusted EBITDA fell 29.8%: Adjusted EBITDA was $358 million, with margin of 29.9% against 37.3%. Lower political revenue and reduced TVFN equity income were partly offset by lower operating expenses. Source
• Management called TEGNA agreement a major step: The company entered a definitive agreement to acquire TEGNA Inc. for $6.2 billion, described in the release as a highly accretive transaction. Source
• Political advertising down $145 million: Political advertising decreased $145 million to $10 million in the quarter. Source
• Distribution revenue slightly lower: Distribution revenue was $709 million, down 1.4%. Subscriber attrition and a non-recurring claim resolution were partly offset by higher rates, vMVPD growth and CW affiliations. Source
• Adjusted free cash flow fell 49.2%: Adjusted free cash flow was $166 million against $327 million, mainly from lower political revenue, partly offset by lower interest and operating expenses. Source
• First lien net leverage 1.73x: First lien net leverage was 1.73x against a 4.25x covenant. Total net leverage was 3.09x, both on the new definition. Source

“In the third quarter, we took a major step forward in shaping Nexstar’s future as we entered into a definitive agreement to acquire TEGNA Inc. for $6.2 billion in a highly accretive transaction.”

PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO

Guidance

What changed from last quarter

• New: Entered a definitive agreement to acquire TEGNA Inc. for $6.2 billion. Source
• New: Extended the Pac-12 Conference relationship through the 2030-2031 season, including 66 annual events. Source
• New: Entered a multi-year agreement with PBR (Professional Bull Riders), which began airing in August. Source

Quarter results and TEGNA deal

• Net revenue fell on political: Net revenue was $1.20 billion, down $168 million or 12.3%, primarily from lower political advertising tied to the election cycle. Source
• Net income fell to $65 million: Net income was $65 million, down 63.9%, with margin of 5.4% against 13.2%. The company cited lower political revenue, one-time TEGNA-related corporate expenses, a customer claim resolution and lower TVFN equity income. Source
• Adjusted EBITDA fell 29.8%: Adjusted EBITDA was $358 million, with margin of 29.9% against 37.3%. Lower political revenue and reduced TVFN equity income were partly offset by lower operating expenses. Source
• Nine-month revenue and income lower: Nine-month net revenue was $3,660 million against $3,920 million, and nine-month net income was $253 million against $453 million. Source
• Expected accretion to standalone cash flow: Management expects the transaction to be accretive to the company's standalone Adjusted Free Cash Flow. Source
• Management called TEGNA agreement a major step: The company entered a definitive agreement to acquire TEGNA Inc. for $6.2 billion, described in the release as a highly accretive transaction. Source

Advertising and political revenue

• Political advertising down $145 million: Political advertising decreased $145 million to $10 million in the quarter. Source
• Non-political advertising effectively flat: Growth in network and digital advertising and the absence of political crowd-out largely offset local advertising. Source
• Olympics absence hit local advertising: Local advertising was affected by the absence of the Olympics in the quarter compared with the prior year. Source
• Total advertising revenue down 23.5%: Advertising revenue was $476 million, down $146 million from the prior year quarter. Source

“Operationally, our core business is performing well, with stable year-over-year distribution and non-political advertising revenue”

PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO

Distribution and network growth

• Distribution revenue slightly lower: Distribution revenue was $709 million, down 1.4%. Subscriber attrition and a non-recurring claim resolution were partly offset by higher rates, vMVPD growth and CW affiliations. Source
• NewsNation fastest growing cable network: Management said NewsNation was the fastest growing cable network in the quarter, continuing a trend through September 2025. Source
• CW ratings growth and lower losses: The CW recorded its sixth consecutive quarter of primetime ratings growth, and its losses fell 24% year-over-year. Source

Operating costs and corporate expenses

• Total operating expenses declined: Total operating expenses were $1,023 million against $1,031 million a year earlier. Income from operations was $175 million against $335 million. Source
• Corporate expense rose on TEGNA: Corporate expense was $68 million against $53 million, reflecting increased one-time costs tied to the pending acquisition. Source
• Restructuring reduced operating expenses: Lower operating expenses from recent restructuring initiatives partly offset the decline in Adjusted EBITDA. Source

“Looking forward, we are focused on completing our upcoming distribution renewals, closing our acquisition of TEGNA Inc., and capitalizing on the 2026 mid-term election political advertising opportunity, all of which we anticipate will drive shareholder value.”

PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO

Equity income, interest and EPS

• TVFN equity income fell: Income from equity method investments was $5 million against $17 million. The company holds a 31.3% interest in TV Food Network LLC. Source
• Net interest expense declined: Interest expense, net was $94 million against $113 million, which management linked to reduced SOFR and debt reduction. Source
• Diluted EPS fell to $2.14: Diluted EPS was $2.14 against $5.27. Diluted weighted average shares were 30,649 thousand against 32,441 thousand. Source

Cash flow and capital spending

• Operating cash flow fell 69.8%: Net cash from operations was $117 million against $387 million, reflecting lower net income and timing of receipts and payments. Source
• Adjusted free cash flow fell 49.2%: Adjusted free cash flow was $166 million against $327 million, mainly from lower political revenue, partly offset by lower interest and operating expenses. Source
• Capital expenditures in quarter: Capital expenditures were $30 million against $29 million, and $94 million for nine months against $110 million. Source

Debt, leverage and shareholder returns

• Consolidated debt $6.4 billion: Consolidated debt of Nexstar and Mission was $6.4 billion, including $3.6 billion of senior secured debt. Source
• First lien net leverage 1.73x: First lien net leverage was 1.73x against a 4.25x covenant. Total net leverage was 3.09x, both on the new definition. Source
• Debt repaid and dividends paid: The company repaid $25 million of debt and paid $56 million in dividends, using cash on hand and operating cash flow. Source
• No buybacks in the quarter: No stock repurchases were made in the quarter, against $178 million a year earlier. Nine-month repurchases were $125 million. Source
• Unrestricted cash rose to $236 million: Unrestricted cash was $236 million against $144 million at December 31, 2024. Total debt was $6,359 million. Source

Coming up, as management said on 6 November 2025

• TEGNA closing expected 2H 2026: Management anticipates the TEGNA transaction closing by the second half of 2026, subject to regulatory approvals. Source
• Upcoming distribution renewals: Management said it is focused on completing upcoming distribution renewals. No dates were given. Source

Figures management reported

Risks management discussed

• Demand: Net revenue declined as political advertising fell, which management tied to the election cycle. Source
• Demand: Local advertising was affected by the absence of the Olympics compared with the prior year quarter. Source
• Demand: Distribution revenue reflected MVPD subscriber attrition, which management named as a driver of the decline. Source
• Financial: Lower TVFN performance reduced equity method income, which lowered net income and Adjusted EBITDA. Source

Earlier plans management reported on

• Not stated: Management said it is focused on completing upcoming distribution renewals. No status was given in the release. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.