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

Financial Performance

• Third-quarter 2026 revenue 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.
• Current-year quarter income included $18.8 million in restructuring costs, which reduced income by $0.14 per share; the prior-year quarter loss included $7.6 million in debt extinguishment losses and other financing costs, increasing the loss by $0.15 per share.
• Year-to-date 2026 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.
• Segment expenses for the third quarter were $427 million, down from $449 million in the prior-year quarter.
• Adjusted EBITDA for the third quarter 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, comprising $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 stock 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, with impacts most evident in fourth-quarter results.
• Fourth-quarter 2026 guidance projects Local Media revenue to be up in the low-to-mid 40% range, while Scripps Networks revenue is expected to be down in the high single digits.
• Scripps Networks expenses are expected to begin a downward trend in the fourth quarter as transformation cost initiatives take effect.
• The company plans to use Q4 political advertising revenue and existing cash to pay down at least $150 million of debt in the fourth quarter.
• Management is evaluating accretive M&A opportunities with discipline to enhance financial position and strategic flexibility.

Business Segments and Product Lines

• Local Media: Revenue was $373 million, up 15% from the prior-year quarter. Segment profit was $118 million, up from $52.8 million.
  • 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 in Q1 2026 and a $3.8 million service blackout with DirecTV.
  • Full-year Local Media political advertising revenue reached $284 million, 44% above the 2022 midterm election cycle.
• Scripps Networks: Revenue was $173 million, down 14% from the prior-year quarter. Segment profit was $33 million, compared to $53.3 million.
  • Connected TV revenue grew 37%, with the division expecting to end the year at approximately $155 million.
  • Revenue pressure was attributed to the economy and low consumer confidence affecting direct response advertising.
  • Adjusted combined expenses were up 0.9%, driven by the new WNBA contract.
• 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 in political ad spending during the 2026 midterm election cycle, according to AdImpact.
• Scripps Networks benefited from Nielsen's September ratings methodology change, which more accurately measured over-the-air households.
• Scripps is the nation's largest holder of broadcast spectrum and operates a portfolio of about 60 stations in 40 markets.

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 also include increases in programming costs, changes in law and regulation, and the company's ability to manage outstanding debt obligations.
• The controlled ownership structure of the company is identified as a potential risk factor.
• Consumer confidence and economic pressure continue to impact 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 polarizing climate due to its trustworthy platform.
• Management expressed confidence that the companywide transformation launched in February is on track to deliver expected EBITDA benefits next year.
• 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 highlighted the goal of preserving local journalism while adapting to how Americans consume news across broadcast, streaming, digital, and social platforms.

Other Key Points

• The company did not declare or pay 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 common dividends or repurchasing common shares until preferred shares are redeemed.
• Year-to-date results included 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.
• A conference call to discuss results is scheduled for November 6, 2026, at 9:30 a.m. Eastern time.
• The company reported $18.8 million in restructuring costs for the third quarter and $55.3 million for the first nine months of 2026.