The E.W. Scripps Company — Q2 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $490 million, a 9.2% decrease ($49.7 million) compared to the prior-year quarter.
• Loss attributable to shareholders was $1.2 billion ($12.68 per share), compared to a loss of $51.7 million ($0.59 per share) in the prior-year quarter.
• The Q2 2026 loss included a $1.1 billion non-cash goodwill and intangible asset impairment charge for Scripps Networks, $35.8 million in restructuring costs, and a $9.3 million gain from a station swap with Gray Media.
• Year-to-date 2026 revenue was $1 billion, down 5.4% ($57.2 million) from the prior year.
• Year-to-date 2026 loss attributable to shareholders was $1.2 billion ($13.04 per share).
• Adjusted EBITDA for Q2 2026 was $55.2 million, down from $88.9 million in the prior-year quarter.
• Cash and cash equivalents totaled $13 million as of June 30, 2026.
• Total debt was $2.5 billion as of June 30, 2026, including $1.7 billion in senior notes, $558 million in term loans, and $314 million under an accounts receivable securitization facility.
• Capital expenditures for Q2 2026 were $16.8 million.
• Preferred stock dividends were not declared or paid in 2026; aggregated undeclared and unpaid cumulative dividends totaled $150 million as of June 30.

Guidance and Future Outlook

• The company targets $125-$150 million of enterprise EBITDA growth by 2028 through cost savings and revenue initiatives.
• The company expects to have implemented approximately $100 million in annual run-rate savings by the end of 2026.
• Full-year 2026 local political revenue is expected to be between $225-$250 million.
• Q3 2026 Local Media revenue is expected to be up about 20 percent.
• Q3 2026 Local Media expenses are expected to be down in the low-single-digit percent range.
• Q3 2026 Scripps Networks revenue is expected to be down in the mid-teens percent range.
• Q3 2026 Scripps Networks expenses are expected to be up in the low-single-digit percent range.
• Q3 2026 shared services and corporate expenses are expected to be about $25 million.

Business Segments and Product Lines

• Local Media: Revenue was $317 million, down 5.4% year-over-year. Core advertising revenue decreased 8.7% to $125 million. Political revenue was a record $28 million. Distribution revenue decreased 17% to $161 million, impacted by $26.7 million in service blackouts during contract negotiations. Segment profit was $55.8 million, flat from the prior year.
• Scripps Networks: Revenue was $172 million, down 16% year-over-year. Segment profit was $25.5 million, down from $55.9 million in the prior year. The decline was driven by the sale of Court TV, a challenging national advertising market, declining legacy linear viewing, and changes in Nielsen's measurement methodology.
• Scripps Sports: Signed its first NBA team, the Detroit Pistons, for a multi-year distribution agreement. Secured a full-season local rights agreement with the Nashville Predators (NHL). ION secured U.S. rights to televise the Women's Volleyball World Cup 2027.
• Transactions: Acquired a second Big 4 station in Lexington, Kentucky. Swapped stations with Gray Media across five mid-sized and small markets. Sold stations in Fort Myers, Florida, and Indianapolis.

Market and Competitive Landscape

• The national advertising market remains challenging, particularly for direct response advertising.
• There is a shift in advertiser spending from legacy linear viewing to streaming and digital.
• Changes in Nielsen's measurement methodology are impacting results, with the company working to mitigate these effects.
• Scripps is the nation's largest holder of broadcast spectrum and operates a portfolio of approximately 60 TV stations in 40 markets.

Risks and Challenges

• Macroeconomic uncertainty and weak national advertising markets are pressuring the business.
• Service blackouts during retransmission consent negotiations negatively impacted Q2 core advertising and distribution revenue.
• The company faces risks related to audience fragmentation, loss of affiliation agreements, and loss of distribution revenue.
• The company has a controlled ownership structure and must manage outstanding debt obligations.
• The company is prohibited from paying common dividends or repurchasing common shares until preferred shares are redeemed.

Management Commentary and Tone

• CEO Adam Symson stated the company is transforming operations using AI and automation to improve results and serve consumers.
• Management noted that Q2 results were impacted by the economic environment and measurement challenges but are not reflective of the progress being made.
• The company is executing M&A opportunities focused on accretive transactions to improve financial footing.
• Management emphasized making difficult decisions, including eliminating 268 jobs (approximately 6% of the workforce), to ensure long-term survival and success.
• Dean Littleton was promoted to President of Media, overseeing the complete television business.

Other Key Points

• The company eliminated 268 jobs across the organization in the second quarter.
• Scripps Networks incurred a $1.1 billion non-cash impairment charge reflecting ratings challenges and macroeconomic uncertainty.
• The company completed a station swap with Gray Media, resulting in a $9.3 million gain in Q2.
• The company sold Court TV, contributing to the decline in Scripps Networks revenue.
• The company made $60.6 million in principal pre-payments on term loans during the first six months of 2026.
• The company is prohibited from paying common dividends or repurchasing common stock due to Berkshire Hathaway's preferred equity investment terms.