Aug 6, 2026, 7:03 AM ETCommunication Services

Nexstar Media Group — Second Quarter 2026 Earnings Summary

NXSTNEXSTAR MEDIA GROUP INC

Financial Performance

Net revenue reached a record $1.993 billion for the quarter, a 62.2% year-over-year increase driven by $697 million in incremental revenue from the TEGNA acquisition and higher legacy advertising and distribution revenue.
Net income was $113 million, up 24.2% year-over-year, with a net income margin of 5.7% compared to 7.4% in the prior year period.
Adjusted EBITDA totaled $633 million, a 62.7% increase year-over-year, with a margin of 31.8% compared to 31.7% in the prior year.
Net cash provided by operating activities was $298 million, up 20.6% year-over-year.
Adjusted free cash flow was $238 million, a 135.6% increase year-over-year.
For the six months ended June 30, 2026, net revenue was $3.389 billion (up 37.7%), net income was $273 million (up 45.2%), and adjusted EBITDA was $1.103 billion (up 43.2%).
Distribution revenue increased 52.3% to $1.116 billion, while advertising revenue rose 81.5% to $862 million.
Advertising revenue included $147 million in political advertising, a $75 million increase from the prior year, partially offset by lower non-political advertising.

Management expressed confidence in strong free cash flow generation for the second half of 2026.
The company anticipates the trial on the merits of the TEGNA acquisition litigation to be held on July 6, 2027.
The FCC is scheduled to vote on a proposal to repeal the national ownership cap for television broadcast stations and replace it with case-by-case reviews.

Distribution revenue growth was driven by higher rates, growth in vMVPD subscribers, and the addition of CW affiliations, partially offset by MVPD subscriber attrition.
NewsNation maintained its position as the fastest-growing ad-supported cable news network in prime time and total day, growing 44% in total viewers year-over-year in June 2026.
The CW expanded its audience by 10% year-over-year in total day viewership and secured distribution partnerships with ESPN for CW Sports and Roku for entertainment programming and WWE NXT.
Nexstar completed a multi-year agreement with CBS to extend affiliations in 36 markets, replacing CBS with CW in four markets (Jackson, MS; Birmingham, AL; Bismarck, ND; Rapid City, SD) and promoting FOX to replace CBS in Albuquerque, NM.
The company launched new daily primetime local newscasts in Dallas and Phoenix.
ATSC 3.0 deployment was completed across all top 25 designated market areas (DMAs).

Nexstar remains the largest broadcast group in the U.S. following the acquisition of TEGNA.
The company faces competition from other broadcast markets and volatility in programming costs.
The CW partnership with WWE was expanded to include 20 NXT Premium Live Events in a multi-year deal.

A preliminary injunction issued by the U.S. District Court for the Eastern District of California on April 17, 2026, requires Nexstar and TEGNA to remain separate during pending litigation.
DIRECTV and various State Attorneys General filed a lawsuit challenging the TEGNA acquisition under federal antitrust laws.
The preliminary injunction has impacted the company's ability to execute on anticipated synergies, leading to the exclusion of synergies from leverage covenant ratio calculations for the second quarter of 2026.
One-time expenses of $53 million related to the TEGNA transaction and increased interest expense impacted net income.
Risks include the outcome of pending litigations, regulatory actions, and the ability to service and refinance outstanding debt.

CEO Perry A. Sook described the quarter as a "record second quarter" driven by the TEGNA acquisition, strong political advertising, FIFA World Cup events on FOX-affiliated stations, and streaming growth.
Management stated they are "well positioned for strong free cash flow generation" and remain confident the case challenging the TEGNA acquisition is "without merit."
TEGNA appointed Patrick Paolini as CEO to lead the company's independent operations under Nexstar ownership.

The company returned $57 million to shareholders via dividends and repaid $409 million of debt in the second quarter.
Total debt as of June 30, 2026, was $11.7 billion, including $9.0 billion in senior secured debt.
The pro forma first lien net leverage ratio was 3.21x, and the total net leverage ratio was 4.22x.
In April, Nexstar issued $1.725 billion of Senior Unsecured Notes due 2034 to refinance $1.714 billion of notes maturing in July 2027.
Nexstar earned 34 Regional Edward R. Murrow Awards for outstanding journalism.
The company celebrated its 30th anniversary with a charitable initiative awarding $300,000 in grants to 60 nonprofit organizations.
Shares outstanding increased by 268,000 during the quarter to 30,806,000.