Nexstar Media Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue reached a record $2.13 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.
• Distribution revenue was $1.091 billion, up 53.9% year-over-year, reflecting $352 million in incremental revenue from TEGNA, higher rates, growth in vMVPD subscribers, and new CW affiliations, partially offset by MVPD attrition and CBS affiliation replacements on six stations.
• Advertising revenue was $1.023 billion, up 114.9% year-over-year, driven by $405 million in incremental revenue from TEGNA and a $163 million increase in political advertising at legacy units; total political advertising revenue was $317 million.
• Net income was $250 million, a 284.6% increase from $65 million, with net income margin expanding to 11.7% from 5.4%.
• Adjusted EBITDA was $756 million, up 111.2% from $358 million, with Adjusted EBITDA margin increasing to 35.4% from 29.9%.
• 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%), net income was $523 million (up 106.7%), and Adjusted EBITDA was $1.86 billion (up 64.9%).
• Nine-month Adjusted free cash flow was $1.101 billion, up 79.0% from $615 million.

Business Segments and Product Lines:

• The CW set a network record with its most-watched sports broadcast ever, as the August New Mexico State – Florida State football game outperformed three major broadcast networks in primetime among Adults 25–54.
• NewsNation total day viewership grew 9% year-over-year in the third quarter.
• The CW ranked as the #9 rated English-language ad-supported network in Q3 2026.
• The CW expanded its college football lineup with the addition of the San Diego County Credit Union Poinsettia Bowl and the Annual Holiday Bowl games.
• Nexstar 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 beginning in September 2027.
• Nexstar completed a multi-year affiliation agreement extending the FOX affiliation in 41 markets (August 2026).
• TEGNA completed a multi-year agreement extending the ABC affiliation in 13 markets (October 2026).
• Nexstar and TEGNA each completed multi-year affiliation agreements extending CW affiliations in 66 and 8 markets, respectively (August 2026).

Market and Competitive Landscape:

• Nexstar's local television stations produced 88 candidate debates and forums ahead of the midterm elections.
• Non-political advertising was partially offset by crowd-out from political advertising during the election year.
• Legacy distribution revenue growth was partially offset by MVPD subscriber attrition.

Risks and Challenges:

• Nexstar 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.
• Synergies are excluded from the leverage covenant ratio test because they must be realized within 18 months of the transaction (September 19, 2027), and the limited time between the trial resolution and this date precludes their inclusion.
• Forward-looking statements involve risks including changes in economies, debt servicing ability, integration of acquisitions, litigation outcomes, advertising pricing fluctuations, regulatory actions, competition, programming cost volatility, and technological developments.

Management Commentary and Tone:

• CEO Perry A. Sook stated the quarter delivered the highest net revenue in company history, reflecting the TEGNA acquisition and strong distribution and advertising performance.
• Management highlighted strong operating performance in the first nine months generating $1.1 billion in Adjusted Free Cash Flow, enabling debt reduction and shareholder returns.
• The company expressed a commitment to executing its playbook to drive long-term shareholder value while enhancing programming, products, and services.
• TEGNA CEO Patrick Paolini appointed new operating and sales executives to the Company's leadership team in October 2026.

Other Key Points:

• The Company 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.
• The Company returned $58 million to shareholders in dividends in the third quarter and $171 million year-to-date.
• As of September 30, 2026, consolidated debt 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, compared to $280 million as of December 31, 2025.
• Shares outstanding increased by 12,000 in the quarter to 30,818,000 and by 490,000 year-to-date.
• No stock repurchases occurred in the third quarter or for the nine months ended September 30, 2026.