Nexstar Media Group — Third Quarter 2026 Earnings Summary

Financial Performance

• Net revenue reached a record $2.133 billion for the quarter, a 78.0% year-over-year increase from $1.198 billion, driven by $765 million in incremental revenue from the TEGNA acquisition and higher legacy advertising and distribution revenue.
• Net income was $250 million for the quarter, up 284.6% from $65 million in the prior year period; net income margin improved to 11.7% from 5.4%.
• Adjusted EBITDA totaled $756 million, an 111.2% increase from $358 million, with a margin of 35.4% compared to 29.9% in the prior year; incremental Adjusted EBITDA from TEGNA was $243 million.
• Net cash provided by operating activities was $680 million, a 481.2% increase from $117 million.
• Adjusted free cash flow was $443 million, up 166.9% from $166 million.
• For the nine months ended September 30, 2026, net revenue was $5.522 billion (up 50.9% from $3.660 billion), net income was $523 million (up 106.7%), and Adjusted EBITDA was $1.860 billion (up 64.9%).
• Distribution revenue was $1.091 billion (up 53.9%), driven by $352 million in incremental revenue from TEGNA, higher rates, and subscriber growth, partially offset by MVPD attrition and CBS affiliation replacements.
• Advertising revenue was $1.023 billion (up 114.9%), driven by $405 million in incremental revenue from TEGNA and a $163 million increase in political advertising at legacy units; total Q3 political advertising revenue was $317 million.
• Interest expense increased to $186 million for the quarter and $495 million for the nine months, primarily related to the TEGNA transaction.

Guidance and Future Outlook

• Management stated the company will continue to execute its playbook to drive long-term shareholder value and enhance programming, products, and services.
• The company noted it is subject to a preliminary injunction impacting the ability to execute on synergies anticipated from the TEGNA acquisition; the trial on the merits is set for July 6, 2027.
• Due to the limited time between the trial resolution and the "Outside Synergies Date" (September 19, 2027), projected synergies have been excluded from the leverage calculation for covenant ratio tests.
• Nexstar aims to continue funding investments in local news and sports programming.

Business Segments and Product Lines

• Completed a multi-year FOX affiliation agreement extending coverage in 41 markets (August 2026).
• TEGNA completed a multi-year agreement extending ABC affiliation in 13 markets (October 2026).
• Nexstar and TEGNA completed multi-year CW affiliation agreements extending coverage in 66 and 8 markets, respectively (August 2026).
• The CW ranked as the #9 rated English-language ad-supported network in Q3 2026.
• The CW added the San Diego County Credit Union Poinsettia Bowl and Annual Holiday Bowl games to its college football lineup.
• Reached an exclusive multi-year media rights agreement with the National Hot Rod Association (NHRA) to broadcast the final seven races of the Mission Foods Drag Racing Series starting September 2027.
• NewsNation total day viewership grew 9% year-over-year in the third quarter.
• Produced 88 candidate debates and forums ahead of the midterm elections.

Market and Competitive Landscape

• 2026 is an election year, resulting in record political advertising revenue of $317 million, which partially crowded out non-political advertising.
• The CW outperformed three major broadcast networks in primetime among Adults 25–54 during the August New Mexico State – Florida State football game.
• Competition exists from other entities in broadcast television markets, and the company faces volatility in programming costs and industry consolidation.

Risks and Challenges

• Pending litigation related to the TEGNA acquisition, including a preliminary injunction and a trial set for July 6, 2027, poses a risk to realizing anticipated synergies.
• Risks include changes in national and regional economies, the ability to service and refinance outstanding debt, and future regulatory actions.
• The company faces risks related to pricing fluctuations in local and national advertising, technological developments, and major world news events.

Management Commentary and Tone

• Perry A. Sook, Founder, Chairman, and CEO, stated the quarter delivered the highest net revenue in the Company's history, reflecting the TEGNA acquisition and strong distribution and advertising performance.
• Management highlighted that strong operating performance for the first nine months generated $1.1 billion in Adjusted Free Cash Flow, enabling debt reduction and shareholder returns.
• The tone was confident regarding the integration of TEGNA and the momentum of NewsNation and The CW.

Other Key Points

• Repaid $1.3 billion of debt year-to-date through the date of the release, including $350 million in the third quarter and an additional $525 million subsequent to September 30.
• Returned $58 million to shareholders in dividends in the third quarter and $171 million year-to-date.
• Consolidated debt as of September 30, 2026, was $11.4 billion, including $8.6 billion in senior secured debt.
• Pro forma first lien net leverage ratio was 3.03x, and total net leverage ratio was 4.04x as of September 30, 2026.
• Cash on hand was $446 million as of September 30, 2026.
• TEGNA CEO Patrick Paolini appointed new operating and sales executives to the Company's leadership team in October 2026.
• Acquisitions spending was $3.657 billion for the nine months ended September 30, 2026.
• Shares outstanding increased by 0.0% in the quarter and 1.6% for the nine-month period.