The E.W. Scripps Company — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $545 million, an increase of 3.6% ($19 million) compared to the prior-year quarter.
• Income attributable to shareholders was $20.7 million, or $0.21 per share, compared to a loss of $49 million ($0.55 per share) in the prior-year quarter.
• The current quarter included $18.8 million in restructuring costs, which reduced income per share by $0.14.
• Year-to-date revenue was $1.6 billion, a decrease of 2.4% ($38.2 million) from the prior year.
• Year-to-date loss attributable to shareholders was $1.2 billion ($12.73 per share), driven by a $1.1 billion non-cash goodwill and intangible assets impairment charge for Scripps Networks.
• Adjusted EBITDA for Q3 2026 was $121.5 million, compared to $80.4 million in the prior-year quarter.
• Cash and cash equivalents totaled $83.4 million as of September 30, 2026.
• Total debt was $2.5 billion as of September 30, 2026, consisting of $1.7 billion in senior notes, $558 million in term loans, and $274 million under an accounts receivable securitization facility.
• The company made $60.6 million in principal pre-payments on term loans during the first nine months of 2026.
• Undeclared and unpaid cumulative preferred dividends totaled $166 million as of September 30, 2026.

Guidance and Future Outlook:

• The company aims to generate $125-$150 million of enterprise EBITDA growth by 2028 through cost savings and revenue initiatives.
• Approximately $100 million in annual run-rate savings from the transformation plan are expected to be implemented by year-end 2026.
• Q4 2026 Local Media revenue is expected to be up in the low-to-mid 40% range.
• Q4 2026 Local Media expenses are expected to be about flat.
• Q4 2026 Scripps Networks revenue is expected to be down in the high single digits.
• Q4 2026 Scripps Networks expenses are expected to be down in the low single digits.
• Q4 2026 Shared services and corporate expenses are expected to be about $27 million.
• Scripps expects to pay down at least $150 million of debt in the fourth quarter using Q4 political advertising revenue.
• Connected TV revenue is expected to end the year at approximately $155 million.

Business Segments and Product Lines:

• Local Media:
  • Revenue was $373 million, up 15% from the prior-year quarter.
  • Political revenue was $80.6 million, compared to $5.1 million in the prior-year quarter.
  • Core advertising revenue decreased 16% to $111 million due to displacement from political advertising.
  • Distribution revenue decreased 4.2% to $178 million, impacted by the sale of WRTV and WFTX and a DirecTV service blackout.
  • Segment profit was $118 million, up from $52.8 million in the prior-year quarter.
  • Full-year Local Media political advertising revenue through Election Day was $284 million, 44% above the 2022 midterm cycle.
• Scripps Networks:
  • Revenue was $173 million, down 14% from the prior-year quarter.
  • Connected TV revenue grew 37%.
  • Segment profit was $33 million, compared to $53.3 million in the prior-year quarter.
  • Adjusted combined expenses were up 0.9%, driven by the new WNBA contract.
• Transformation Initiatives:
  • The company reduced its workforce by approximately 20% in 2026.
  • More than 70 revenue growth initiatives are in the pipeline.
  • The connected local newsrooms transformation is nearly complete, integrating AI and automation to adapt stories for digital and broadcast platforms.

Market and Competitive Landscape:

• Local TV platforms captured nearly half of the record $11.9 billion spent on political advertising this year, according to AdImpact.
• Scripps' political footprint drove full-year political ad revenue 44% above 2022 midterm results.
• Pressure from the economy and low consumer confidence impacted direct response advertising in the Scripps Networks division.
• Nielsen's September 1 ratings methodology change to more accurately measure over-the-air households positively impacted Scripps Networks revenue after earlier negative impacts.

Risks and Challenges:

• Forward-looking statements note risks including changes in advertising demand, audience fragmentation, loss of affiliation agreements, and loss of distribution revenue.
• Risks include increases in programming costs, changes in law and regulation, and the company's ability to identify and consummate strategic transactions.
• The company faces risks related to its controlled ownership structure and its ability to manage outstanding debt obligations.
• The Scripps Networks division faced pressure from the economy and low consumer confidence affecting direct response advertising.

Management Commentary and Tone:

• CEO Adam Symson stated that broadcast television proved to be the best vehicle for reaching voters in a politically polarizing climate.
• Management described the companywide transformation launched in February as well underway and on track to deliver expected EBITDA benefits.
• The tone emphasized disciplined expense management, with total adjusted combined expenses declining year-over-year when excluding the first-year impact of the WNBA contract.
• Management indicated they continue to evaluate accretive M&A opportunities with discipline, focusing on transactions that enhance financial position and strategic flexibility.

Other Key Points:

• The company did not declare or pay any quarterly preferred stock dividends in 2026; the 9% dividend rate compounds quarterly.
• Under the terms of Berkshire Hathaway's preferred equity investment, the company is prohibited from paying dividends on or repurchasing common shares until all preferred shares are redeemed.
• In the first nine months of 2026, the company recorded a $38.9 million gain from the sale of Court TV and two television stations (WFTX and WRTV), as well as a station swap with Gray Media, Inc.
• The company ended the third quarter with $83 million in cash and plans to use Q4 political revenue to pay down debt.
• A conference call to discuss results is scheduled for November 6, 2026, at 9:30 a.m. Eastern time.