Nexstar Media Group, Inc.

Nexstar reported record second-quarter net revenue of $1.99 billion, up $764 million or 62.2% year over year, driven primarily by $697 million of TEGNA revenue plus higher advertising and distribution revenue at legacy businesses. Advertising revenue was $862 million, up $387 million or 81.5%, including $331 million from TEGNA and a $75 million increase in political advertising at legacy Nexstar. Distribution revenue was $1.1 billion, up $383 million or 52.3%. Adjusted EBITDA was $633 million, up $244 million from $389 million in Q2 2025, with a 31.8% margin; on a combined basis, Q2 2025 adjusted EBITDA would have been $545 million. Adjusted free cash flow was $238 million, more than double last year’s $101 million. For Q3, management expects nonpolitical advertising to decline mid-single digits, slightly better than Q2, and CapEx to be in the $50 million range, cash taxes around $65 million, and quarterly interest expense around $185 million based on current balances. Management also said the CW remains on track for profitability in Q4 and full-year losses are expected to improve by more than 30%.

Perry Sook described the quarter as record-setting and framed the company as benefiting from the TEGNA acquisition, political advertising, and disciplined execution. He repeatedly stressed Nexstar’s legal confidence in the TEGNA deal and said the FCC’s move on the national ownership cap reduces uncertainty for future M&A, though he sees the antitrust case as the bigger issue. His tone was confident and combative on the litigation, while still emphasizing local journalism, community service, and long-term value creation.

Lee Gliha highlighted that combined direct operating and SG&A expenses rose mainly because of TEGNA and $11 million of one-time transaction costs, though recurring cash operating expenses were down $10 million on a combined basis. She said Q2 corporate expense was $131 million, including $40 million of noncash compensation, and adjusted EBITDA was $633 million with a 31.8% margin. On cash and leverage, she cited $238 million of adjusted free cash flow, $409 million of debt repayment, $57 million returned in dividends, $218 million of cash, $11.7 billion of debt, a first lien covenant ratio of 3.21x, and total net leverage of 4.22x. She also said Q3 quarterly interest expense is about $185 million, and capital deployment will prioritize mandatory obligations and additional debt repayment.

Analysts focused on the FCC’s elimination of the broadcast ownership cap, the pace of political advertising, Nielsen’s upcoming local measurement change, the timeline and cost of the TEGNA litigation, and the company’s willingness to pursue smaller M&A or stock buybacks later. Management said the cap removal may modestly reduce regulatory uncertainty but the TEGNA case is mostly about antitrust, not the ownership cap. They said political advertising is running ahead of internal expectations and could stay robust through year-end, while Nielsen’s new local methodology on August 31 could be beneficial because it would align local impressions more closely with national measurement. On capital allocation, management said debt paydown remains the priority and buybacks would depend on balance sheet strength and valuation later.