TEGNA Inc.

Total company revenue for Q2 2025 decreased 5% year over year to $675 million. AMS revenue declined 4% to $288 million, with underlying AMS down 2% excluding an approximate 200 basis point Premion-related impact. Distribution revenue was flat at $370 million. Adjusted EBITDA fell 14% year over year to $151 million, and non-GAAP expenses were down 3%. Cash and cash equivalents were $757 million at quarter end, net leverage was 2.8x, and the company reduced interest expense guidance for full-year 2025 to $160 million to $165 million after calling $250 million of senior notes. For Q3, TEGNA expects total company revenue to decline 18% to 20% year over year and non-GAAP operating expenses to decline 2% to 3%. It reaffirmed adjusted free cash flow guidance of $900 million to $1.1 billion over 2024-2025 combined.

Mike Steib framed TEGNA as being in a position of strength because of its local brands, journalism, balance sheet, and team, and said the company is focused on execution rather than waiting on regulation. He was upbeat on industry deregulation prospects, saying recent court and FCC developments could open more scale opportunities, but he stressed disciplined capital allocation and said TEGNA could be a buyer or seller depending on the situation. He also emphasized the company’s shift toward local news expansion, streaming, automation, and AI-enabled workflow improvements.

Julie Heskett said Q2 results exceeded expectations mainly because operating expenses were lower than guided, even as ad softness persisted. She cited 5% lower revenue, 3% lower non-GAAP expenses, and 14% lower adjusted EBITDA, and noted owned-and-operated digital products delivered strong double-digit growth for a third consecutive quarter. On capital allocation, she reiterated the 40% to 60% adjusted free cash flow return target for 2024-2025, said $20 million was paid in dividends in Q2, and explained that the $250 million partial redemption of 2026 notes lowered full-year interest expense guidance to $160 million to $165 million. She also highlighted $757 million of cash and a 2.8x net leverage ratio.

Analysts focused on network affiliation and M&A. On NBC and network relationships, Steib said the affiliate model remains important and symbiotic, and that TEGNA takes a constructive approach with network partners, but he did not comment specifically on the NBC deal. On M&A, management said it sees deregulation as coming and views itself as both a potential buyer and seller, but emphasized discipline and shareholder value. Questions on AI-driven cost cutting drew examples such as transcription, video editing, summarizing incoming story leads, and sales/marketing automation; Heskett added that future station layouts and technology could reduce CapEx by about 80% and operating expenses by about 50%.