Nexstar Media Group NASDAQ: NXST reported record second-quarter results as revenue nearly reached $2 billion, aided by its acquisition of TEGNA, political advertising growth and higher distribution revenue.
Founder, Chairman and Chief Executive Officer Perry Sook said second-quarter revenue reached an all-time quarterly high of $2 billion, while adjusted EBITDA was $633 million and adjusted free cash flow more than doubled from a year earlier to $238 million.
“Our outstanding performance was driven by the TEGNA acquisition, advertising revenue growth, and disciplined operating execution,” Sook said. He cited efforts including centralized station marketing, automated content production and sales-incentive realignment.
Revenue Growth Led by TEGNA and Political Advertising
President and Chief Operating Officer Mike Biard said second-quarter net revenue was $1.99 billion, up $764 million, or 62.2%, from the prior-year period. The increase primarily reflected $697 million of revenue from TEGNA, along with higher advertising and distribution revenue from Nexstar’s legacy operations.
On an as-combined basis including TEGNA in the comparable 2025 period, revenue increased 4.7% year over year. Political advertising and distribution revenue drove the increase, partly offset by lower non-political advertising.
Distribution revenue rose 52.3% to $1.1 billion. TEGNA contributed $362 million of distribution revenue, while legacy Nexstar distribution revenue rose $23 million, or 3.1%, due to higher rates, growth in virtual multichannel video programming distributor subscribers and the addition of CW affiliations at some stations. Those gains were partly offset by traditional pay-TV subscriber attrition.
Advertising revenue increased 81.5% to $862 million, including $331 million from TEGNA and a $75 million increase in political advertising at legacy Nexstar. Political advertising totaled $147 million, up 8% compared with the 2022 midterm cycle and 99% versus 2024 on a combined basis. Biard cited spending in California, Georgia, Colorado, Texas and Maine.
Non-political advertising declined 5.8% on a combined basis, reflecting political advertising crowd-out, competitive pressures and economic softness. Incremental FIFA World Cup advertising and strong local digital revenue partly offset the decline. Top advertising categories included attorneys, gaming and sports betting, and general services, while medical healthcare, drugstores and medication, and auto were among the weakest categories.
For the third quarter, Nexstar expects combined non-political advertising to decline by a mid-single-digit percentage, though management said the result should be slightly better than the second quarter. Biard said Ohio could be a major source of third-quarter political advertising upside because of competitive Senate and gubernatorial races.
CW, NewsNation and Local Initiatives
Sook said NewsNation remained the fastest-growing cable news network in prime time and total day, with total viewers in June rising 44% from the comparable prior-year period. The CW ranked as the ninth most-watched ad-supported television network in total day, and CW Sports recorded its strongest quarter, according to the company.
Biard said Nexstar remains on track for The CW to reach profitability in the fourth quarter, with full-year losses expected to improve by more than 30%. The company recently reached distribution partnerships with ESPN and Roku and expanded its sports programming through a multiyear agreement with WWE for 20 NXT premium live events.
The NASCAR O’Reilly Auto Parts Series on The CW also contributed to viewership growth, with 18 of its first 19 races in 2026 surpassing 1 million total viewers. Viewership was up 14% year over year through the second quarter, Biard said.
In July, Nexstar completed a multiyear agreement with CBS extending affiliations in 36 markets. Nexstar said it replaced, or plans to replace, CBS affiliations with CW affiliations in Jackson, Mississippi; Bismarck, North Dakota; Rapid City, South Dakota; and Birmingham, Alabama. It also promoted Fox from a subchannel to its primary channel in Albuquerque, New Mexico.
The company launched ATSC 3.0 in Cleveland during July, completing deployment of the next-generation broadcast standard across the top 20 U.S. designated market areas. Sook said the Cleveland launch became possible through Nexstar’s acquisition of WBNX-TV.
Profitability, Cash Flow and Debt Reduction
Chief Financial Officer Lee Ann Gliha said adjusted EBITDA rose $244 million from a year earlier to $633 million, producing a 31.8% margin. TEGNA operations accounted for $187 million of the increase, with the balance primarily tied to the political advertising cycle.
Adjusted free cash flow increased to $238 million from $101 million a year earlier. Capital expenditures were $45 million, while net interest expense rose to $190 million, primarily because of debt incurred for the TEGNA acquisition.
Nexstar paid $57 million in dividends during the quarter, or $1.86 per share. It did not repurchase shares, instead using excess cash to repay $409 million of debt. Total outstanding debt was $11.7 billion as of June 30, up from $6.3 billion at year-end due to the TEGNA transaction.
Gliha said Nexstar expects to repay more than $1 billion of total debt from the acquisition closing through year-end. The company’s total net leverage was 4.22 times at quarter-end, while its first-lien covenant ratio was 3.21 times, below the 4.75-times covenant threshold.
TEGNA Litigation and M&A Outlook
Nexstar continues to operate under a preliminary injunction related to litigation challenging its acquisition of TEGNA. Sook said TEGNA appointed Patrick Paolini as chief executive officer in May and that TEGNA continues to operate independently under Nexstar ownership.
Nexstar filed an opening brief with the U.S. Court of Appeals for the Ninth Circuit on May 20 seeking to narrow the preliminary injunction and dismiss state plaintiffs. Oral arguments are anticipated in the fourth quarter. A bench trial in the U.S. District Court for the Eastern District of California is scheduled to begin July 6, 2027.
Sook said the company believes the legal claims lack merit and remains confident in its position, while acknowledging that an out-of-court resolution is possible. He said Nexstar has not been able to directly engage with TEGNA’s local operators during the injunction period, though management said TEGNA’s operating performance has generally tracked Nexstar’s, with distribution revenue a relative exception.
Looking ahead, Sook said Nexstar intends to focus on debt repayment and resolving the legal matter before more actively pursuing portfolio optimization, station swaps or additional acquisitions. He reiterated the company’s expectation for another record year of financial performance in 2026.
About Nexstar Media Group (NASDAQ:NXST)
Nexstar Media Group, Inc is a diversified American media company engaged primarily in the ownership, operation and strategic affiliation of local television stations, digital platforms and cable networks. The company provides a range of broadcast content, including local news, sports coverage, entertainment programming and syndicated shows, reaching audiences in more than 100 television markets across the United States.
Founded in 1996 by entrepreneur Perry Sook and headquartered in Irving, Texas, Nexstar has built its presence through organic growth and a series of high-profile acquisitions.
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