NXST

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10 a.m. ET Founder, Chairman and Chief Executive Officer - Perry Sook Chief Operating Officer - Michael Biard Executive Vice President and Chief Financial Officer - Lee Ann Gliha Investor Relations - Joseph Jaffoni Operator: Good day, and welcome to Nexstar Media Group's Second Quarter 2026 Conference Call. Today's call is being recorded. I will now turn the conference over to Joe Jaffoni, Investor Relations. Please ahead. Joseph Jaffoni: Thank you, Sachi, and good morning, everyone. I'll read the safe harbor language, and then we'll get right into the call. All statements and comments made by management during this conference call other than statements of historical fact may be deemed forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. . Nexstar cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those reflected by the forward-looking statements made during this call. For additional details on these risks and uncertainties, please see Nexstar's annual report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission and Nexstar's subsequent public filings with the SEC. Nexstar undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It's now my pleasure to turn the conference over to your host, Nexstar Founder, Chairman and Chief Executive Officer, Perry Sook. Perry, please go ahead. Perry Sook: Thank you, Joseph, and good morning, everyone. We appreciate you all joining us today. You'll be hearing from Mike Biard, our Chief Operating Officer; and Lee Ann Gliha, our Chief Financial Officer, after my opening remarks this morning. Nexstar delivered record second quarter results, including an all-time high quarterly revenue number of $2 billion, adjusted EBITDA of $633 million and year-over-year free cash flow of more than doubling to $238 million for the quarter. Our outstanding performance was driven by the TEGNA acquisition, advertising revenue growth and disciplined operating execution that has long been a hallmark of this company. Advertising revenue benefited from strong midterm election political advertising, incremental FIFA World Cup sports advertising and continued growth in legacy local streaming advertising. On the cost side, we continue to drive efficiencies and improve profitability by centralizing station marketing, automating content production and realigning our sales incentives. I'll briefly review a few of the operating highlights, after which I'll provide a brief update on our litigation matters. Starting with NewsNation, the network continues to distinguish itself through its commitment to objective, fact-based reporting and balanced perspectives, maintaining its position as the fastest-growing cable news network in primetime and total day with total viewers in June 2026 growing 44% over the comparable prior-year period. The CW also achieved impressive results, ranking as the ninth most watched ad-supported television network in total day, with CW Sports achieving its strongest quarter ever. In addition, the CW accelerated its growth strategy by entering into new distribution partnerships with both ESPN and Roku, expanding our reach to new streaming services. In July, we launched ATSC 3.0 in Cleveland, Ohio, completing the deployment of the next-generation broadcast standard now across the top 20 industry DMAs. This most important milestone was made possible by Nexstar's acquisition of WBNX-TV, which removed the structural constraints that have previously hindered deployment in that market. In addition to delivering superior picture quality and immersive audio, ATSC 3.0 leverages broadcast spectrum more efficiently to support high-speed data transmission and enhanced services, providing meaningful benefits for both viewers and local communities. In terms of local programming and community engagement, during the quarter, our owned and operated stations earned 34 regional Edward R. Murrow Awards for outstanding journalism and exceptional locally produced news programming. These awards represent and reflect the hard work of our teams and the crucial impact of quality local journalism on the communities that we serve nationwide. We also celebrated Nexstar's 30th anniversary on June 17 by giving back to our local communities through our annual Founders Day of Caring, which provides employees with paid time off to volunteer locally. This year, we expanded our commitment through the Nexstar Media Charitable Foundation's 30 Days of Giving initiative, which awarded grants to 60 employee nominated nonprofit organizations across our local television markets. On the capital allocation side, Nexstar returned $57 million or $1.86 per share to shareholders in the form of dividends, representing an annualized yield of just under 4%. In addition, during the quarter, we made significant progress towards our debt reduction goals by repaying $409 million in debt, which equates to a little bit more than $13 per share of equity value. Looking ahead, we are well positioned for strong free cash flow generation in the second half of 2026, and we remain committed to defending our acquisition of TEGNA against baseless attacks. To that end, we continue to focus on defending our position in the ongoing litigation and continuing our full compliance with the preliminary injunction issued last April. Now I'll spend a few minutes bringing you up to speed on where we are today. In May, TEGNA appointed an experienced broadcast executive, Patrick Paolini to CEO, where he is responsible for leading the company and overseeing all aspects of its business, including operations, local journalism, revenue growth and strategic initiatives. Since the Patrick has promoted or hired several executives to serve in various leadership roles spanning legal, finance, human resources, technology and programming affirming TEGNA's independent operations under Nexstar ownership. Nexstar remains resolute that a complete factual record will demonstrate that the DIRECTV and States Attorney's General lawsuit is without merit, and the company is committed to resolving the matter as expeditiously as the legal process will allow. With that, I'll briefly review the key milestones in the litigation to date, along with related regulatory developments. On May 20, 2026, Nexstar filed its opening brief with the U.S. Court of Appeals for the Ninth Circuit seeking an expedited appellate review to narrow the scope of the preliminary injunction and to dismiss the state's plaintiffs with oral arguments now anticipated in the fourth quarter of 2026. On July 9, 2026, the U.S. Court of Appeals for the D.C. Circuit rejected all challenges to the Media Bureau's order approving Nexstar's acquisition of TEGNA, concluding that the appellate have not met their burden to show a referable harm. Today, the FCC is scheduled to vote on a proposal to eliminate the national broadcast station ownership cap and replace it with a case-by-case review process for M&A in the future. Finally, on July 6, 2027, the bench trial for the U.S. District Court for the Eastern District of California is scheduled to begin. The court has allocated approximately 15 days for trial to consider the merits of the antitrust claims with equal time provided for each side. We recognize that several claims have been made about the TEGNA acquisition by the state's Attorney General and others. However, the facts tell a very different story. That's why we posted a new presentation on our website nexstar.tv to clarify the details for our investors and the public at large. While we encourage you to review this presentation on your own, I'll spend a few minutes just touching on the main points. First, this transaction underwent extensive review by both the FCC and the Department of Justice before receiving regulatory approval with the FCC concluding that the acquisition serves the public interest. Second, Nexstar remains a relatively small participant in the broader media landscape. Some pundits have confused the reach of our television stations with our market share. The signals of Nexstar's television stations and those of our partner stations now reach 80% of the U.S. population compared with 70% before the TEGNA acquisition. However, our stations account for less than 5% of the total viewing and we increasingly compete against significantly larger technology, media and distribution companies. In terms of ownership, Nexstar owns less than 15% of full power U.S. television stations. Third, the free universal access afforded by local broadcast television is not just a convenience, it is an essential public service and central to Nexstar's mission. Our stations have always been available to consumers for free over the air, and they remain so today. Prices paid for paid TV subscriptions are determined by the satellite, cable and streaming television providers and not by Nexstar. Fourth, our commitment to independent fact-based journalism, local journalism in particular, has not changed, and our local newsrooms continue to retain editorial independence as always. Underscoring this fact is the analysis from independent watchdog group Ad Fontes, which confirms time and again that Nexstar provides unbiased and reliable news. Finally, this acquisition strengthens and not weaken its local journalism. Nexstar has a long track record of expanding local news following acquisitions, increasing local news hours by 18% since the Tribune acquisition, and we have plans to do so with the TEGNA stations as well. Most recently, we announced the launch of new daily primetime local newscast in Dallas and in Phoenix. Greater scale enables us to invest more in local journalism, create differentiated programming and better serve the communities in which we operate. In summary, as these various processes play out, we remain committed to maintaining the same level of professionalism, integrity and respect that has defined Nexstar and earned us the trust of our viewers, our partners and our stakeholders for more than 3 decades. Taking the high road does not mean remaining silent in the face of commercial and politically motivated attacks. We will continue to respond appropriately and decisively with transparency and the facts in a manner that is consistent with the values that we have upheld since our founding. We have a depth of executive leadership and legal expertise to help address these matters while continuing to operate the business at a high level as our results prove today. Our focus remains on executing our strategy, serving our communities and meeting or exceeding our financial targets. With all of that said, let me now turn the call over to Mike Biard. Michael? Michael Biard: Thank you, Perry, and good morning, everyone. Nexstar's consolidated financial results for the 3-month period ending June 30, 2026, include TEGNA operations for the full quarter, while the comparable 2025 period reflects only Nexstar's legacy business units. We've posted supplemental financial information on our website detailing the combined results of Nexstar and TEGNA for the comparable 3-month period ending June 30, 2025, which I will address during my remarks. The company delivered record second quarter net revenue of $1.99 billion, an increase of $764 million or 62.2% compared to the prior year, primarily due to $697 million of revenue from TEGNA and higher advertising and distribution revenue from our legacy business units. On a combined basis, net revenue increased 4.7% year-over-year, driven primarily by political advertising and distribution revenue, offset in part by lower nonpolitical advertising. Second quarter distribution revenue of $1.1 billion increased $383 million or 52.3% compared to the prior-year quarter and primarily reflects $362 million of revenue from TEGNA and $23 million higher revenue from our legacy business or 3.1% due to increased rates, growth in MVPD subscribers and the addition of CW affiliations on certain of our stations, offset in part by MVPD subscriber attrition. On a combined basis, distribution revenue increased 1.3% year-over-year as growth in legacy Nexstar distribution revenue was offset in part by a decline in TEGNA distribution revenue as growth in rates did not offset subscriber declines. Subsequent to quarter end, we completed a multiyear agreement with CBS in July to extend its affiliations in 36 markets. We replaced or will replace a CBS affiliation with a CW affiliation in 4 markets: Jackson, Mississippi; Bismarck, North Dakota; Rapid City, South Dakota and Birmingham, Alabama. And we promoted Fox from a subchannel to replace CBS on our primary channel in Albuquerque, New Mexico. We also plan to expand local news programming in Greenville-Spartanburg, South Carolina. For the last few years, CBS has been using a tactic to take or move a few affiliations in smaller markets or markets where they have O&O stations to improve their negotiating leverage and affiliation negotiations. As Paramount, the parent company of CBS, works to finalize its $100 billion-plus acquisition of Warner Bros. Discovery, it looks to have increased scale and resources to further pressure broadcast affiliates to pay more for less content in the future. This is yet another example that reinforces the strategic importance of the TEGNA acquisition by strengthening Nexstar's ability to negotiate fair and balanced terms with much larger network counterparties. Also in July, network -- DIRECTV declined our FCC mandated offer to extend our expiring distribution agreement through November 30, 2026 on status quo terms. That development raises important points relevant to our consumer pricing claims at issue in the litigation. We don't control the retail pricing of any of our distributors' products. The distributors alone make that decision based on a variety of factors unique to them, including what they pay for a long tail of cable networks with little unique or exclusive programming. Nexstar, however, remains under compensated relative to many other programming providers, particularly given the significant viewership delivered by broadcast stations compared with so many cable networks. The presentation Perry mentioned in his remarks provides additional data on this dynamic. Inclusive of all these factors, we have no changes to the original distribution guidance we provided for legacy Nexstar, which we reiterated last quarter as well. Turning to advertising revenue. Advertising revenue of $862 million increased $387 million or 81.5% over the comparable prior year, primarily reflecting $331 million in TEGNA advertising and a $75 million increase in political advertising revenue at legacy Nexstar, offset in part by lower nonpolitical advertising due in part to crowd out from political advertising, competitive pressures and economic softness. On a combined basis, nonpolitical advertising was down 5.8% for the same reasons I just mentioned, offset in part by incremental revenue from the impact of the FIFA World Cup during the quarter and strong local digital revenues at legacy Nexstar. Top-performing categories included attorneys, gaming and sports betting and general services. Bottom-performing categories included medical health care, drug stores and medication and auto. None of these was a particular outlier. Now turning briefly to Nielsen. Last quarter, we received several questions about our local advertising trends compared to what was -- compared to what some of the national network businesses were reporting. Nielsen made a change in the first quarter to as a ratings methodology that reflected an increase in the number of cable television households and a decrease in the number of streaming households. This change provided a number of national cable networks with a significant boost in ratings and an ability to better access the scatter market. That development, however, did not materially impact our business has the change did not affect local measurement, which accounts for the lion's share of our advertising revenue. On a potentially positive note, Nielsen is scheduled to implement a new methodology for measuring local impressions on August 31, 2026, which would put local measurement more on the same footing as national network measurement and could significantly increase our local advertising impressions. Of course, the ultimate impact will depend on the final implementation, particularly as Nielsen is making additional methodology adjustments across the TV ecosystem. Returning to our results. For the third quarter, including TEGNA on an as combined basis; nonpolitical advertising is expected to decline mid-single digits but slightly improving from second quarter, impacted by political crowd-out, reflecting a competitive advertising environment, offset in part by continued growth in local digital advertising. We delivered strong second quarter political advertising revenue, driven by favorable primary and early gubernatorial spending. Political advertising was $147 million, up 8% versus 2022 and 99% versus 2024 on a combined basis, driven by healthy spending in the key states of California, Georgia, Colorado, Texas and Maine. Recently published fundraising reports continue to show exceptionally strong cash on hand totals for both candidates and major Senate super packs, providing the financial capacity to increase spending in top-tier battleground states. Ohio is expected to be the primary driver of Q3 upside, fueled by competitive Senate and gubernatorial races, which were both rated toss-ups as of mid-July. As you may have seen on June 30, 2026, the Supreme Court eliminated federal limits on coordinated spending between national party committees and their candidates. As we previously discussed, we do not expect this change to have a material impact on our outlook for the year, although it could provide a modest benefit if additional party spending flows to effective platforms like linear television at the lowest unit rate. Turning to the CW. We continue to execute our strategic plan and remain on track to achieve profitability in the fourth quarter, with full year losses expected to improve by more than 30%. The network continues delivering value for both Nexstar -- for Nexstar, both offensively and defensively. Defensively, as I mentioned, we were able to leverage the CW affiliations to replace CBS in several markets. Offensively, our growing CW Sports portfolio is driving stronger ratings, advertiser engagement, and marketplace interest as reflected by the recent distribution partnerships with ESPN and Roku, each of which expands our reach to new streaming audiences on leading platforms. In addition, the power of the CW broadcast model keeps delivering more viewers. The NASCAR O'Reilly Auto Parts Series on the CW has delivered strong results, with 18 of the first 19 races in 2026 exceeding 1 million total viewers, driving viewership up 14% year-over-year through the second quarter. During the quarter, we expanded our sports lineup through a multiyear agreement with WWE for 20 NXT Premium Live Events and are working on a number of additional deals we expect to announce in due course. These investments are strengthening the CW's position with viewers and advertisers, driving increased demand and improved pricing, and we expect to report a positive upfront once the market fully settles. And with that, it's my pleasure to turn the call over to Lee Ann for the remainder of the financial review. Lee Ann? Lee Gliha: Thank you, Mike, and good morning, everyone. Mike gave you most of the details on the revenue side and the CW. So I'll provide a review of expenses, adjusted EBITDA, adjusted free cash flow, along with a review of our capital allocation activities. Combined second quarter direct operating and SG&A expenses, excluding depreciation and amortization and corporate expenses, increased by $500 million, driven primarily by the acquisition of TEGNA, $11 million of onetime expenses related to the TEGNA transaction and offset in part by a slight reduction in recurring legacy Nexstar operating expenses. Excluding onetime expenses, second quarter recurring cash operating expenses on a combined basis were lower by $10 million, driven by expense initiatives at legacy Nexstar that Perry mentioned and lower digital cost of goods sold and programming expenses at TEGNA. Q2 2026 total corporate expense was $131 million, including noncash compensation expense of $40 million compared to $64 million, including noncash compensation expense of $21 million in the second quarter of 2025. The $67 million increase is primarily due to the acquisition of TEGNA including a year-over-year increase of $50 million of onetime costs, of which $32 million of the increase was from cash, primarily related to change in control severance and accelerated stock vesting and legal and other professional fees associated with the TEGNA transaction as well as increased legal fees at Nexstar. Q2 2026 amortization of broadcast rights included in our definition of adjusted EBITDA was $87 million, an increase of $8 million from $79 million in the second quarter of 2025, primarily due to the TEGNA acquisition. On a combined basis, amortization of broadcast rights was down approximately $2 million year-over-year. Q2 2026 income from equity method investments was $3 million, which primarily reflects our 31% ownership in TV Food Network. This compares to $11 million last year, with the reduction primarily due to TV Food Network declining advertising revenue. Putting it all together on a consolidated basis, second quarter adjusted EBITDA was $633 million, representing a 31.8% margin, an increase of $244 million from the 2025 second quarter of $389 million. TEGNA operations accounted for $187 million of this gain with the remainder due primarily to the political cycle. On a combined basis, Q2 2025 adjusted EBITDA, including TEGNA, would have been $545 million. Moving to the components of free cash flow and adjusted free cash flow. Second quarter CapEx was $45 million, an increase of $16 million from $29 million in the second quarter last year, primarily due to the TEGNA acquisition. On a combined basis, second quarter CapEx was -- in 2025 was $36 million. Second quarter net interest expense was $190 million, an increase of $93 million from second quarter of 2025 due primarily to the increased interest expense associated with the debt incurred to facilitate the TEGNA acquisition. On a recurring cash basis, this compares to $185 million in Q2 2026 versus $94 million in Q2 2025. Second quarter operating cash taxes were $151 million. Payments for capitalized software obligations, net of proceeds from disposal of assets and insurance recoveries were $8 million. Cash programming amortization costs were higher than cash payments by $2 million as certain programming payments were deferred, and we received an $11 million distribution from Food Network. Putting this all together, consolidated second quarter 2026 adjusted free cash flow was $238 million, more than double last year's $101 million. Looking ahead, we are projecting CapEx in the $50 million range in Q3. Third quarter cash taxes are estimated to be in the $65 million range. From an interest expense -- excuse me, from an interest perspective, our run rate quarterly interest expense based on our current balances outstanding as of June 30 is about $185 million. That amount will fluctuate with SOFR rates, which are expected to increase and reduces we pay debt. Affecting our cash in the quarter will be our first interest payment on our new $3.39 billion senior secured notes. In Q3 2026, payments for programming are expected to be in excess of amortization by $9 million. Now turning to capital allocation on our balance sheet. Together with the cash from operations generated in the quarter and cash on hand, we returned $57 million to shareholders in the form of dividends. Consistent with past commentary, we made no repurchases, instead using excess cash to repay $409 million of debt. Nexstar's outstanding debt as of June 30, 2026 was $11.7 billion, an increase from $6.3 billion at year-end, reflecting the impact of the TEGNA acquisition. During the quarter, we also closed on the refinancing of our 2027 senior notes with new $1.725 billion of 7.25% senior notes due in 2034. Our cash balance at quarter end was $218 million. Because we designated the CW as unrestricted subsidiary, the losses associated with the CW are not accounted for in our calculation of leverage for purposes of our credit agreement. In addition, our credit agreement allows us to include the adjusted EBITDA of TEGNA as if we acquired the business on the first day of the period presented and to add back onetime expenses related to the deal and any operational restructuring and to include the impact of any synergies we expect to realize within 18 months of the close of the transaction, which would be September 2027. In early July, we learned that the trial on the merits of the plaintiff claims is set for July 6, 2027. Given the limited time between the resolution of the trial in the September 2027 date, we removed the synergies from the leverage calculation. If conditions change, we can revisit this assessment and calculation. As such, our first lien covenant ratio as of June 30, 2026 with the last 8 quarters annualized was 3.21x, well below our first lien and only covenant of 4.75x. Our total net leverage for Nexstar was 4.22 at quarter end. Our Q3 2026 cash flow will be deployed first to fulfill our mandatory obligations including debt repayments, pension and defined benefit plan contributions, our dividend and then to optionally repay any additional debt with excess cash flow. Despite the delay in our ability to execute on the synergies we expected from our acquisition of TEGNA, we continue to benefit from the combined strong political year cash flow of the company. From the date of acquisition at the end of the year, we currently anticipate repaying over $1 billion of total debt, creating over $33 per share of equity value. With that, I'll open up the call for questions. Operator, can you go to our first question? Operator: [Operator Instructions] The first question is from Dan Kurnos from StoneX. Daniel Kurnos: I guess, first for Perry, I guess, I'll call it housekeeping. I think I asked you this last quarter, but assuming the FCC repeals the cap today and then it subsequently probably upheld in the D.C. Court of Appeals, do you think that has any bearing on your trial process? And then operationally, I guess, could you guys give us updated views on overall political we see everybody raising numbers? I know you guys have given us what you think your take will be of the total. But would be helpful to get color there. And Mike, just maybe some more granularity on the Nielsen change that's planned in August, that would be super helpful. Perry Sook: I would say, first, as it relates to the elimination of the cap, which I believe that both has occurred while we were speaking this morning; so I think it will remove a certain level of uncertainty in future M&A. I do think there'll be probably a judicial review of the FCC's decision, but we believe -- we Nexstar believe that they are on very firm legal footing to make this declaration. And we support and applaud the Chairman for his leadership in this issue to allow broadcasting to compete on the same playing field in the domestic U.S. with every other purveyor of advertising and a purveyor of video that we compete with that has access to 100% of U.S. households. As it relates to our legal process, I think on balance, there could be marginal benefit because it makes the unknown known from a regulatory perspective. but I don't know that it will have a ton of effect as we go through our process. It's more about antitrust than the national ownership cap. As it relates to political, we -- as I always say internally here, I'm betting the over. We've raised our internal political targets a couple of times in the last quarter here and continue to believe that political will be very robust through the balance of the year, and our current pacings would validate that. But I don't think we're prepared to give new guidance on that point. But suffice it to say, political is performing ahead of our internal expectations and likely ahead of yours. Mike, I'll turn it over to you. Michael Biard: Sure. Yes. Very simply, Dan, historically, Nielsen has credited cable network viewing after 1 minute of viewing within a quarter hour while local television historically required 5 minutes of minimum viewing. So the change that they're planning is to equalize those, bringing the 1-minute threshold to apply to local as well, which we think should portend good things for us. Operator: The next question is from Benjamin Soff from Deutsche Bank. Benjamin Soff: Appreciate the color you gave us on the timeline for the case. I wanted to get your thoughts on the potential for smaller market-by-market M&A and whether it could make sense to pursue that in the meantime just because the window to do so may not be open forever. Perry Sook: I might challenge your hypothesis that the window would be open for -- not be open forever. The FCC last year actually removed the prohibition against owning 2 top 4 stations in a marketplace. And you've seen a number of one-off or smaller transactions with other operators take place in our space during the pendency of our transaction. So I don't know that there'll be necessarily a change in that. I do think that we will turn our attention at some point to portfolio optimization once we are fully able to operate and integrate all of the stations that we have bought so far. I do think there is merit in that, and I think there'll be some. And we get approached on a regular basis for swaps and things of that sort. I think we want to clear the deck of the legal situation that we're in and have certainty on that. And then I think we will -- that will be kind of tap two of some of the things we'll do in addition to looking at other M&A in the broadcast space and elsewhere. Benjamin Soff: Got it. And then even though you haven't been able to integrate as planned, I wanted to ask what your early impressions have been of the TEGNA operations. What's impressed you? And what, if anything, has been surprising? Perry Sook: Well, our impressions of the TEGNA operations were formed during diligence because we haven't been able to have any direct conversations with any of the local operators. The CEO of TEGNA reports to a Board and reports on the overall financial health of the company, which is where we are able to be involved. But beyond that and wherever things have required Board-level approval, it's been sought and delivered without change, but we've not had any ability to have any additional interaction or impressions from the TEGNA stations. But you heard Lee Ann perform -- report and Mike report on their operations. They're performing pretty much at the level of Nexstar. The one area where they are slightly behind in terms of showing growth year-over-year is in distribution revenue. And that's because they're operating under their contracts and not ours. Operator: The next question is from Patrick Sholl from Barrington Research. Patrick Sholl: Maybe a question on advertising trends. I realize it's hard to break out from the -- a little bit hard to break out from the political displacement. But could you maybe discuss like any differing trends between like the local news side versus some of the sports investments that you've made? Lee Gliha: Maybe I'll take that. I think what you're talking about is really kind of the difference between our local business and kind of our national network business. And what we've seen is a little bit of a difference there because as you rightly point out on the national -- on the television side, on our national networks, we've been doing very well, both as the CW and NewsNation in terms of our incremental ratings. We've really done very well in terms of growing ratings because of our sports investments and just because of the traction we're getting on the new NewsNation side. So that's been strong. I think on the local side on the TV side, we've been subject to the competitive environment that's out there with respect to the CTV inventory and other digital advertising that has somewhat impacted the TV side of things, but that had an offsetting impact when you kind of look at our local digital business. Our local digital business continues to really just grow very strongly at double-digit rates because we are able to, as I've mentioned on prior calls, really kind of bundled together our local television business with CTV inventory, audience extension plans and other types of digital advertising. I think our team has done a phenomenal job of really kind of leveraging the local sales force that we have and kind of grabbing that and growing it. So there is a little bit of a difference just in terms of the way the overall revenue lines up. But I think on the total basis, it ends up getting to where we have reported. Patrick Sholl: Okay. And then maybe just sticking with the local side. if you're able to complete the acquisition, I guess, within your markets, how do you kind of view just the competitive environment for local news? Perry Sook: Competitive in terms of pricing? Competitive in terms of product or talent? What area of competition are you in... Patrick Sholl: I guess like on product and talent, I guess, is probably more I was thinking. Perry Sook: Well, I think that if you look at our track record in markets where we operate and have put 2 newsrooms under the same physical address, what I think you've seen is despite what people like to claim, a differentiation of product where we now have the ability to deliver local news in time periods that aren't necessarily competitive, it may be complementary and maybe stylistically different from one another. And certainly, where we've inherited stations and acquired stations that have a strong local news brand. We've done nothing to tamper with that because that is the station's calling card. In San Diego, the station that we owned and the station we recently acquired from an independent operator there had a decidedly different editorial points of view, which we have allowed to continue under our ownership, even though the stations are in the same physical location and people get hung up on that, but it's really the product that goes out over the air and goes home. And we don't have a very good business if we're selling the same product -- trying to sell the same product to everybody across different streams and channels. So this is a local service business, and it works best when the individual streams are allowed to individually serve the communities and constituencies where they have been able to find the most traction. Operator: The next question is from Craig Huber from Huber Research Partners. Craig Huber: Great. On the CW side of things, you guys have obviously been pretty aggressive in recent quarters, movement affiliations over to the CW. Can you talk about the obvious benefits to Nexstar doing that, but also the not so obvious benefits you're willing to share with us? Let me start there, please. Michael Biard: I'll take that one, Craig. I think let me start with the fundamental distinction between intellectual property that you own versus intellectual property that you rent, right? With respect to the CW, we have continue to sort of mine benefits from the fact that we own the programming from top to bottom. In a world where intellectual property is kind of the coin of the realm and allows you to take that content to every platform and every device, the flexibility to be able to control our own destiny in terms of the rights that we acquire, what we pay for those rights, what we pay to the network for those rights and then furthermore, the distribution flexibility where we can monetize that across every platform, whether it's mobile or streaming or what have you. You're aware of the complexities we have trying to do that with respect to the big 4 affiliated networks. None of that noise, none of those restrictions, none of the impairments that we encounter with big 4 that we have with CW. So at a fundamental level, it's just sort of ability to control our entire destiny and then be able to distribute it where we need to. As it relates to other benefits, we've talked in the past that as we talk about the CW, that really doesn't capture the entire benefits that flow to our broadcast business. as a result of an affiliation on a CW where we have found that the benefits there from a distribution perspective have been quite healthy, both from an offensive and defensive perspective. Craig Huber: Great. And then the uses of your free cash flow here is sort of the game plan here, maybe for like the next 18 months to just continue to focus paying down the debt related to the TEGNA transaction and then maybe flip the switch over to be starting aggressive again buying back stock? Or is it sort of dependent on your stock price, frankly, as you think out over the next 18 months, if you start going back into the market to buy stock. I just want to get a sense of how long you think you might be in debt paydown mode for. Lee Gliha: Yes. Thanks, Craig. Our -- you're absolutely right. Our first priority right now is to deleverage the company and to pay down debt. And when we did the acquisition, we mentioned that we thought we would be back to the pre the pre-transaction leverage levels kind of by 2028. We're going to continue to work to pay down debt as quickly as we can. In terms of repurchases, we'll just have to kind of look at what the stock price is at the time when our balance sheet is in the right position to execute on that and see how we're valued. Hopefully, we'll see some improvement in the stock price and some improvement in our multiple. Craig Huber: And then my last question, if I could, just a housekeeping question, Lee Ann. Your corporate expense, nitpick question, was higher than I was expecting. I just -- if you take out the transaction one time items that you called out in your press release there, but what are you sort of expecting for that line over the rest of the year, please, corporate? Lee Gliha: Yes, we don't provide line item guidance for the year, but you can -- I would look at what we did last year and add TEGNA in. We've got all of that number -- those numbers presented on the website. And I would just assume that we have a slightly higher number as a result of increased legal fees. Operator: The next question is from Aaron Watts from Deutsche Bank. Aaron Watts: Thanks for having me on. Just two questions. from me, and I apologize if I missed this, but how is core advertising trending in the third quarter relative to the down 5.8 you cited for 2Q? And I appreciate some crowd out of starting to create in, but just trying to get a sense of the cadence and core strength sequentially. Lee Gliha: Yes. So we don't report core separately. We just report nonpolitical advertising. And our -- and what we have said in the third quarter is our nonpolitical advertising is going to be down mid-single digits, but slightly better than what we saw in this quarter, which was down 5.8 on a as combined basis. Aaron Watts: Okay. Perfect. And then Perry, I appreciate your comments around the TEGNA process. And clearly, you see the merits of the case as being on your side. How do you balance that and your confidence in a positive outcome in the courts with the time and the costs, both real-time and opportunity costs to ultimately get to that? And do you see an out-of-court solution that could help reach a palatable conclusion to this sooner than it's currently laid out for the court process? Perry Sook: It's hard to comment on that because, obviously, we don't want to open our playbook to the world here. I think that we are extremely confident that when one looks at the facts of the case and applies the law that we will prevail. We've already closed the transaction, but are not able to fully integrate the stations, as has been said multiple times on this call. But we do get the financial benefit of them and we can use that cash flow to pay down debt, which is obviously what we're doing. . I think that -- and anything could be possible to -- we'll see how the -- our appeal on the hold separate order plays out. We'll see how our discussions and negotiations go along the way. Is it possible there could be an out-of-court settlement? I suppose so. But we feel supremely confident in our legal position. So I've got to balance that outcome with anything else. Obviously, when we talk about potential portfolio optimization and swapping stations and doing things of that sort and additional M&A, we kind of want to clear the decks here before we do other things because we don't want those to be similarly delayed. This new second layer of approval is something that I think all industry is going to have to grapple with in addition to telecommunications. Certainly utility, medical, others are being scrutinized under this well. And I think that has a profound impact just for M&A and business. And I think it's something that we'll have to be reckoned with as time goes on. And if that becomes the new normal, then I think we all have to think about how that affects our business and our ability to grow our business and balance that against the risk of deploying additional capital. So -- but I think that's not a Nexstar issue. That's not necessarily an issue just for media. But I think that whether you're a power company, a medical company, food company, an airline company; you're hearing these kinds of issues being raised out of quarters that have not raised them before. I also -- you've got states that are now investing in or talking about investing in growing their antitrust legal team at the state level. And I guess my fundamental question would be certainly some states, is that the best use of the taxpayers' dollars and resources, given that you have a federal overlay that is charged specifically with looking at antitrust and public interest and those kinds of things? Seems the duplication of efforts to me. But again, all of this will play out, I think, over time. And I would say anything is possible, but we don't have a particular lean at this point. I mean, obviously, if it -- if we can settle the litigation prior to going to trial next year, that has a benefit to us. But we're not necessarily under the same pressures that other people are in terms of drop-dead dates or ticking fees or whatever because we've already closed on the acquisition. Operator: There are no further questions at this time. I would like to turn the floor back over to Perry Sook for closing comments. Perry Sook: Thank you, operator. I appreciate everyone joining us today. I want to reiterate my confidence in Nexstar's long-term outlook and the enduring strength of the local business model. While we will address the matters before us with professionalism, transparency and resolve; our focus remains on executing our strategy, serving our communities, investing in high-quality journalism and in creating long-term value for our shareholders. including what we expect will be another record year of financial performance here in 2026. Thank you all for your continued support and confidence in Nexstar. And we look forward to updating you on our progress during our next earnings call in November. Have a great day. You can now disconnect. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Nexstar (NXST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Nexstar Media Group, Inc.? Here are five stocks we like better. Record Q2 performance: Nexstar’s revenue nearly reached $2 billion, up 62.2% year over year, while adjusted EBITDA rose to $633 million and adjusted free cash flow more than doubled to $238 million. Growth was driven by the TEGNA acquisition, political advertising and higher distribution revenue. Debt reduction is a priority: Despite debt rising to $11.7 billion following the TEGNA transaction, Nexstar repaid $409 million during the quarter and expects to repay more than $1 billion by year-end. Management plans to focus on deleveraging and resolving TEGNA litigation before pursuing additional acquisitions. Growth initiatives continue: NewsNation viewership rose 44%, The CW is on track to reach profitability in the fourth quarter, and Nexstar expanded sports and distribution partnerships. Management expects combined non-political advertising to decline by a mid-single-digit percentage in Q3, partly due to political-advertising crowd-out. 5 Mid-Caps to Buy Before the Next Broad Market Sell-Off 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. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Disney Denies Rumors of TV Sale, After Stock Jumps on News “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. 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Value Stocks with Room to Run 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. → Ulta's Growth Is Real, But So Are the Risks 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. 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Nexstar Media Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 Net Revenue Drives Net Income of $113 Million, Adjusted EBITDA of $633 Million, Net Cash Provided by Operating Activities of $298 Million and Adjusted Free Cash Flow of $238 Million Returned $57 million to shareholders in dividends and repaid $409 million of debt in Q2 2026 IRVING, Texas, August 06, 2026--(BUSINESS WIRE)--Nexstar Media Group, Inc. (NASDAQ: NXST) ("Nexstar" or the "Company") today reported financial results for the second quarter ended June 30, 2026 as summarized below. Please visit Nexstar’s website to view the full press release. STATEMENT FROM PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO "In a record second quarter, Nexstar generated all-time high quarterly revenue driven by our acquisition of TEGNA Inc., strong political advertising revenue, incremental advertising revenue from highly rated FIFA World Cup events on our FOX-affiliated stations and continued streaming advertising revenue growth in Nexstar’s legacy local markets. During the quarter, NewsNation maintained its position as the fastest-growing ad-supported cable news network in prime time and total day viewership. At the same time, The CW accelerated its transformative evolution through distribution partnerships with ESPN and Roku, which will expand The CW’s reach to new streaming audiences. Looking forward, we are well positioned for strong free cash flow generation in the second half of 2026 and we remain confident that the case challenging our acquisition of TEGNA is without merit and we will continue to vigorously defend it." Company and Business Highlights Returned $57 million to shareholders in dividend payments and repaid $409 million in debt in the second quarter. (May 2026) TEGNA appointed experienced broadcast executive Patrick Paolini to Chief Executive Officer to lead the company and oversee all aspects of its business including operations, local journalism, revenue growth, and strategic initiatives; affirming TEGNA's independent operations under Nexstar ownership. (May 2026) Completed a multi-year agreement with CBS to extend affiliations in 36 markets. Replacing the CBS affiliation with a CW affiliation in four markets (Jackson, MS, Birmingham, AL, Bismarck, ND, and Rapid City, SD) and promoting FOX to replace CBS as our primary network in Albuquerque, NM. Expanding local news in Greenville-Spartanburg, SC, among other markets. (July 2026) Announced we will be launching new daily primetime local newscasts on stations in Dallas and Phoenix. (July 2026) Continued to advance CW's growth strategy by expanding its audience, securing new programming, and launching new streaming distribution partnerships. NewsNation remained the #1 fastest-growing cable news network in prime time and total day in June 2026, growing 44% in total viewers compared to June 2025. (June 2026) Launched ATSC 3.0 in Cleveland, Ohio, completing the deployment of the next-generation broadcast standard across all of the top 25 designated market areas (DMAs) across the industry. (July 2026) Earned 34 Regional Edward R. Murrow Awards for outstanding journalism and exceptional locally produced news programming from the Radio Television Digital News Association (RTDNA). (June 2026) Celebrated the Company’s 30th anniversary with Nexstar Media Charitable Foundation’s "30 Days of Giving" initiative, awarding $300,000 in grants to 60 nonprofit organizations serving communities across the company's local television markets. (June 2026) TEGNA Transaction Litigation and Regulatory Update On March 19, 2026, Nexstar closed its acquisition of TEGNA upon receipt of approvals from both the Federal Communications Commission (FCC) and the Department of Justice (DOJ). Subsequently, DIRECTV and various State Attorneys General filed a lawsuit challenging the acquisition under the federal antitrust laws; and the U.S. District Court for the Eastern District of California issued a preliminary injunction on April 17, 2026 requiring Nexstar and TEGNA to be held separate during the pendency of the litigation. Nexstar remains resolute that a fulsome record will show that the lawsuit is without merit. The following are the key milestones in the litigation to date and related regulatory developments. D.C. Circuit: On July 9, 2026, the D.C. Circuit rejected all of the challenges to the Media Bureau’s order approving the acquisition of TEGNA by Nexstar; specifically noting "…the appellants have not met their burden to show irreparable harm…" National Ownership Cap: The FCC is scheduled to vote today on a proposal to repeal the national ownership cap for television broadcast stations and replace it with case-by-case reviews. District Court Trial: Scheduled for July 6, 2027. Appeal in the Ninth Circuit: Nexstar has filed an appeal asking the United States Court of Appeals for the Ninth Circuit to narrow the scope of the preliminary injunction and dismiss the State plaintiffs. The oral argument is anticipated to be heard in Q4 2026. We have posted a new investor presentation to www.nexstar.tv providing our perspectives on the acquisition. Financial Results Net Revenue. Record second quarter net revenue of $1.99 billion, increased $764 million year-over-year, or 62.2%, primarily due to $697 million of incremental revenue from our acquisition of TEGNA and higher advertising and distribution revenue from our legacy business units. Distribution Revenue. Second quarter distribution revenue of $1,116 million, increased $383 million, or 52.3%, versus the comparable prior year quarter, primarily reflecting $362 million of incremental revenue from the acquisition of TEGNA and higher revenue from our legacy business units due to increased rates, growth in vMVPD subscribers, and the addition of CW affiliations on certain of our stations, partially offset by MVPD subscriber attrition. Advertising Revenue. Second quarter advertising revenue of $862 million, increased $387 million, or 81.5%, from the comparable prior year quarter, primarily reflecting $331 million of incremental revenue from the acquisition of TEGNA and a $75 million increase in political advertising at our legacy business units, offset, in part, by lower non-political advertising due, in part, to crowd-out from political advertising. In total, Q2 political advertising revenue was $147 million, as 2026 is an election year. Net Income. Second quarter net income of $113 million increased $22 million, or 24.2%, compared to the prior year quarter, primarily due to increased operating income from the acquisition of TEGNA, and increased political advertising revenue generated at our legacy business units, offset, in part, by $53 million of one-time expenses and increased interest expense, both in connection with the TEGNA transaction. Net Income margin decreased to 5.7% from 7.4% in the comparable prior year period. Adjusted EBITDA. Second quarter Adjusted EBITDA of $633 million, increased $244 million, or 62.7%, compared to the prior year quarter reflecting $187 million of incremental Adjusted EBITDA primarily from the acquisition of TEGNA and increased revenue at our legacy business units. Adjusted EBITDA margin was 31.8% compared to 31.7% in the comparable prior year period. Net Cash Provided by Operating Activities. Second quarter Net Cash Provided by Operating Activities of $298 million, increased $51 million, or 20.6%, compared to the comparable prior year quarter, due primarily to an increase in net income and the impact of changes in operating assets and liabilities reflecting the timing of receipts and payments. Adjusted Free Cash Flow. Second quarter Adjusted Free Cash Flow of $238 million, increased $137 million, or 135.6%, compared to the prior year quarter, due primarily to increased Adjusted EBITDA, offset, in part, by an increase in interest expense, capital expenditures and income tax payments. Capital Allocation In the second quarter of 2026, the Company used cash on hand and cash flow from operations to repay $409 million of debt and pay $57 million in dividends. Debt, Cash and Leverage As of June 30, 2026, the consolidated debt of Nexstar and Mission Broadcasting, Inc., an independently owned variable interest entity, was $11.7 billion, including senior secured debt of $9.0 billion. As of June 30, 2026, the Company’s pro forma first lien net leverage ratio was 3.21x compared to a covenant ratio test of 4.75x and its total net leverage ratio was 4.22x, both calculated in accordance with the term of its credit agreements which - beginning in the second quarter 2026 - exclude the synergies expected in connection with the acquisition of TEGNA(1). In April, the Company issued $1,725 million of Senior Unsecured Notes due 2034 to refinance $1,714 million of Senior Unsecured Notes due to mature in July 2027 and pay fees and expenses in connection therewith. The table below summarizes the Company’s cash balances and debt obligations (net of financing costs, discounts and/or premiums) as of June 30, 2026 and December 31, 2025. Second Quarter Conference Call Nexstar will host a conference call at 10:00 a.m. ET today. Senior management will discuss the financial results and host a question-and-answer session. The dial in number for the audio conference call is 1-877-407-9208 or 1-201-493-6784, conference ID 13761195 (domestic and international callers). Participants can also listen to a live webcast of the call through the "Events and Presentations" section under "Investor Relations" on Nexstar’s website at nexstar.tv. A webcast replay will be available for 90 days following the live event at nexstar.tv. Forward-Looking Statements This communication includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the words "guidance," "believes," "expects," "anticipates," "could," or similar expressions. For these statements, Nexstar claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this communication, concerning, among other things, future financial performance, including changes in net revenue, operating expenses and cash flow and the Company’s ability to integrate TEGNA and realize anticipated synergies, involve risks and uncertainties, and are subject to change based on various important factors, including the impact of changes in national and regional economies, the ability to service and refinance our outstanding debt, successful integration of business acquisitions (including achievement of synergies and cost reductions), the outcome of the pending litigations related to the TEGNA acquisition, pricing fluctuations in local and national advertising, future regulatory actions and conditions in the television stations’ operating areas, competition from others in the broadcast television markets, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Nexstar undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this communication might not occur. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see Nexstar’s other filings with the Securities and Exchange Commission. Definitions and Disclosures Regarding Non-GAAP Financial Information Adjusted EBITDA is calculated as net income, plus or (minus): transaction, other one-time and restructuring expenses, stock-based compensation expense, depreciation and amortization of intangible assets (excluding amortization of broadcast rights), amortization of basis difference of equity method investments, (gain) loss on asset disposal, impairment charges, interest expense, net, pension and other postretirement plans costs (credit), income tax expense (benefit) and other operating and non-operating expense (income). We consider Adjusted EBITDA to be an indicator of our assets’ operating performance. Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures. Adjusted Free Cash Flow is calculated as Free Cash Flow plus or (minus): transaction, other one-time and restructuring expenses, changes in operating assets and liabilities, net of acquisitions (excluding changes in income tax payable), taxes paid on sale of assets, pension and other postretirement plans costs (credit), (payments) for capitalized software obligations, proceeds from disposal of assets and insurance recoveries and other expense (income), cash contribution from (distribution to) noncontrolling interests and other items. We consider Adjusted Free Cash Flow to be an indicator of our liquidity. We consider Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be available for use in ongoing operations, debt payments, pension contributions, dividends, share repurchases, acquisitions and other items. Adjusted Free Cash Flow is not intended to represent the amount of cash flow available for discretionary expenditures as certain items and non-discretionary expenditures, such as changes in working capital, mandatory debt service requirements and pension contributions, are not deducted from this measure. For a reconciliation of these non-GAAP financial measurements to the GAAP financial results cited in this news announcement, please see the supplemental tables at the end of this release. Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms. For more information, please visit nexstar.tv. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806952776/en/ Contacts Investor Contacts: Lee Ann GlihaEVP and Chief Financial OfficerNexstar Media Group, Inc.972/373-8800 Joe Jaffoni, Jennifer NeumanJCIR212/835-8500 or [email protected] Media Contact: Gary WeitmanEVP and Chief Communications OfficerNexstar Media Group, Inc.972/373-8800 or [email protected]

Nexstar Media Group, Inc. (NASDAQ:NXST) just released its latest quarterly results and things are looking bullish. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 11% higher than the analysts had forecast, at US$1.4b, while EPS of US$5.09 beat analyst models by 16%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Following the latest results, Nexstar Media Group's eight analysts are now forecasting revenues of US$7.88b in 2026. This would be a substantial 54% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 579% to US$32.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.57b and earnings per share (EPS) of US$17.14 in 2026. Although the analysts have lowered their revenue forecasts, they've also made a sizeable expansion in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results. See our latest analysis for Nexstar Media Group There's been no real change to the average price target of US$252, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nexstar Media Group analyst has a price target of US$290 per share, while the most pessimistic values it at US$205. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nexstar Media Group shareholders. Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Nexstar Media Group's growth to accelerate, with the forecast 78% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nexstar Media Group to grow faster than the wider industry. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nexstar Media Group following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Nexstar Media Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nexstar Media Group analysts - going out to 2028, and you can see them free on our platform here. You still need to take note of risks, for example - Nexstar Media Group has 5 warning signs (and 1 which is significant) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Nexstar Media Group (NXST) just reported Q1 2026 results that came in ahead of analyst expectations, helped by the recent TEGNA acquisition, heavier political ad spending, and fresh digital distribution partnerships. See our latest analysis for Nexstar Media Group. The stock has reacted positively to the earnings surprise, with a 1 day share price return of 4.25% and a 1 month share price return of 10.26%, although momentum has cooled over 3 months with a share price decline of 17.43%. Even so, the 1 year total shareholder return of 24.04% and 5 year total shareholder return of 58.20% indicate that investors who stayed invested have received positive returns, as the latest TEGNA acquisition, dividend affirmation, and digital partnerships contribute to how the market is reassessing Nexstar's risk and growth profile at a share price of US$202.79. If Nexstar's recent earnings beat has you rethinking media and content plays, it could be a moment to broaden your search with 19 top founder-led companies With earnings beating expectations, a fresh TEGNA boost, a quarterly dividend of US$1.86 per share, and the stock trading at US$202.79 against a US$256.00 analyst target, is there still upside here, or is the market already pricing in future growth? Against Nexstar's last close of $202.79, the most followed narrative puts fair value at $261.25, so the story here hinges on how future cash flows are framed. Read the complete narrative. Curious what kind of revenue path, margin rebuild, and valuation multiple need to line up to support that fair value target? The narrative focuses on a specific combination of modest top line expansion, a step change in profitability, and a tighter earnings multiple that still keeps the story intact. Result: Fair Value of $261.25 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this setup can quickly look different if pay TV subscriber declines deepen or if high debt and regulatory pushback around the TEGNA deal reduce flexibility. Find out about the key risks to this Nexstar Media Group narrative. While the narrative and fair value workup lean toward Nexstar looking undervalued, its current P/E of 41.8x is far above both the US Media industry at 14x and a fair ratio of 22.3x. That sort of gap can mean valuation risk if earnings do not develop as hoped, so which signal do you trust more? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals on value, risk, and growth, how does the balance look to you, and what feels priced in or overlooked right now? Take a closer look at the data points, weigh both the concerns and the potential, and ground your view in 3 key rewards and 5 important warning signs If this Nexstar update has sharpened your thinking, do not stop here. Broaden your watchlist now so fresh opportunities do not slip past unnoticed. Target resilient balance sheets and steady fundamentals by scanning companies in the solid balance sheet and fundamentals stocks screener (44 results). Hunt for potential bargains with strong quality markers using the screener containing 21 high quality undiscovered gems. Focus on income potential and stability by checking companies featured as 12 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NXST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Nexstar Media Group NXST reported first-quarter 2026 earnings of $6.15 per share, beating the Zacks Consensus Estimate by 28.7% and increasing 82.5% year over year. The year-over-year improvement was significantly amplified by $42 million of one-time transaction and restructuring expenses that were excluded from the non-GAAP figure in the current quarter, with no comparable adjustments in the prior year period. Revenues increased 13.1% year over year to $1.4 billion, surpassing the Zacks Consensus Estimate by 10.6%, reflecting $106 million of incremental revenues from the TEGNA acquisition and higher advertising and distribution revenues at legacy business units. Nexstar Media Group, Inc. price-consensus-eps-surprise-chart | Nexstar Media Group, Inc. Quote Distribution revenues of $837 million increased 9.8% year over year, reflecting $54 million of incremental TEGNA revenue and higher legacy business revenue from increased retransmission rates, growth in virtual multichannel video programming distributor (vMVPD) subscribers and the addition of CW affiliations on certain stations, partially offset by traditional MVPD subscriber attrition. On a combined basis, assuming TEGNA ownership for the full quarter, distribution revenues increased 1.6% year over year. Advertising revenues of $548 million rose 19.1% year over year, driven by $51 million of incremental TEGNA advertising revenues and a $35 million year-over-year increase in political advertising at legacy business units to $41 million, reflecting the 2026 election cycle. Non-political advertising at legacy Nexstar grew a modest 0.4% as digital gains offset declines in traditional television advertising. On a combined basis, political advertising reached $78 million, up 89% versus the comparable 2022 cycle and 19% versus the comparable 2024 cycle. Other revenues were $11 million, declining 8.3% year over year. Adjusted EBITDA of $470 million increased $89 million or 23.4% year over year, with $31 million attributable to TEGNA and the remainder driven by higher legacy revenues and lower broadcast rights amortization at The CW. Adjusted EBITDA margin expanded to 33.7% from 30.9% in the comparable prior-year period. Net income of $160 million rose 64.9% year over year, with net income margin improving to 11.5% from 7.9%. As of March 31, 2026, total cash and cash equivalents were $379 million compared with $280 million as of Dec. 31, 2025. Total debt stood at $12.15 billion versus $6.33 billion at Dec. 31, 2025, reflecting the debt financing of the $3.66 billion TEGNA acquisition. The company's pro forma first lien net leverage ratio was 2.94 times against a covenant test of 4.75 times, and total net leverage was 3.84 times at quarter end. Nexstar returned $56 million to shareholders through dividends in the first quarter, maintaining its quarterly cash dividend of $1.86 per share. After quarter end, Nexstar repaid its $150 million short-term Term Loan A and additional mandatory debt, bringing total debt repaid through April 30, 2026, to $182 million. The company also closed a refinancing of its 2027 senior notes with a new $1.725 billion issuance of 7.25% senior notes due 2034. Net cash provided by operating activities was $289 million, declining 14.2% year over year, primarily due to working capital timing and a reduction in cash distributions from the company's 31.3% equity stake in Television Food Network. Adjusted free cash flow of $420 million improved 20.7% year over year, supported by higher adjusted EBITDA and reduced broadcast rights payments at The CW. NXST closed the acquisition of TEGNA on March 19, 2026. The company expects to report its first full consolidated quarter with TEGNA when it releases second-quarter 2026 results. For the second quarter on a combined basis, management expects non-political advertising to decline mid-single digits, reflecting a broader softening in the advertising environment. Nexstar also announced digital distribution partnerships with ESPN for exclusive streaming of CW sports content and with Roku for CW entertainment programming, extending its reach across streaming platforms without the capital burden of building proprietary platforms. The CW network remains on track for full profitability in the fourth quarter of 2026, with 2026 losses expected to improve by more than 30%. Nexstar currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.3% year to date. Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.3% year to date. Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 14.2% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nexstar Media Group, Inc. (NXST) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report Capcom Co., Ltd. (CCOEY) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Nexstar Media Group, Inc.? Here are five stocks we like better. TEGNA acquisition closed on March 19 but faces lawsuits from DIRECTV and multiple state attorneys general, and a court order requires TEGNA to be run and "held separate," limiting Nexstar's operational control and constraining forward guidance. Nexstar delivered record Q1 results with $1.4 billion in net revenue, $470 million of adjusted EBITDA and $420 million of adjusted free cash flow, while post-acquisition debt rose to $12.1 billion though leverage remains below covenant levels. Advertising benefited from political spending (combined Q1 political ads of about $78 million) while Nexstar’s networks are progressing—The CW aims for profitability by Q4 2026 and NewsNation posted strong primetime audience growth—supporting the company’s distribution and digital partnership strategy. 5 Mid-Caps to Buy Before the Next Broad Market Sell-Off Nexstar Media Group (NASDAQ:NXST) reported first-quarter 2026 results that included 13 days of financial contribution from its newly acquired TEGNA assets, while management also detailed the unusual post-close legal and operational constraints now surrounding the transaction. Founder, Chairman and CEO Perry Sook said the company “hit the ground running” in the first quarter, highlighted by the close of Nexstar’s “landmark acquisition of TEGNA” on March 19 following FCC and Department of Justice approval. Sook said Nexstar provided “more than 7 million pages of documentation” during the review and agreed to concessions, including increasing local news in nine markets, divesting stations in six markets within two years, and extending expiring retransmission agreements through Nov. 30. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Disney Denies Rumors of TV Sale, After Stock Jumps on News Despite closing, Sook said DIRECTV, along with a number of state attorneys general, filed suit seeking to block the deal. He emphasized that Nexstar believes it will prevail, arguing the case centers on whether the transaction serves the public interest, including consumers and “the preservation of local journalism.” Sook said Nexstar has expanded its legal team, naming Beth Wilkinson of Wilkinson Stekloff to lead trial and appellate efforts, supplementing antitrust counsel at Morrison Foerster. He outlined multiple proceedings underway, including an appeal of a preliminary injunction in the Ninth Circuit, a trial in the U.S. District Court for the Eastern District of California, and a separate challenge to the FCC approval pending in the D.C. Circuit. Sook noted the court denied a request for an emergency stay, and that Nexstar and the FCC were directed to file responses to a petition by May 11. → Light Speed Returns: Corning Cashes In on NVIDIA Growth 3 Value Stocks with Room to Run Chief Financial Officer Lee Ann Gliha said the company is in “an unprecedented place” because of the court order. She emphasized that Nexstar owns TEGNA as a subsidiary and can use excess cash flow for combined debt repayment, but the order requires Nexstar to “hold separate” TEGNA’s assets. As a result, TEGNA is operating as it did prior to the transaction, including under its own retransmission agreements, and is managed day-to-day by the TEGNA team rather than Nexstar. Gliha said that, given the variables, “forward-looking guidance will be limited.” Management reported first-quarter net revenue of $1.4 billion, describing it as a record. President and COO Michael Biard said net revenue rose $162 million, or 13.1%, from the prior year, driven primarily by $106 million of revenue from TEGNA and higher advertising and distribution revenue from legacy Nexstar operations. → Years in the Making, AMD’s Upside Movement Has Just Begun Gliha said first-quarter adjusted EBITDA was $470 million, representing a 33.7% margin and an $89 million increase from $381 million in the prior-year quarter. She said TEGNA operations accounted for $31 million of the year-over-year change, with the remainder “primarily” driven by the political cycle. Excluding TEGNA, she said legacy Nexstar generated $439 million of adjusted EBITDA. Adjusted free cash flow was $420 million, up from $348 million a year earlier. Excluding TEGNA, Gliha said legacy Nexstar generated $400 million of adjusted free cash flow. Biard said first-quarter distribution revenue totaled $837 million, up $75 million, or 9.8%, year over year. The increase reflected $54 million from TEGNA and 2.8% higher legacy distribution revenue due to increased rates, MVPD subscriber growth, additional CW affiliations on some stations, and local Fox affiliates’ participation in the launch of Fox One—partly offset by MVPD subscriber attrition. On a combined basis assuming TEGNA was owned for the entire quarter, Biard said distribution revenue increased 1.6% year over year. Biard said Nexstar was “feeling more optimistic” than its original plan for subscriber attrition, based on reported numbers and publicly reported distributor subscriber counts. However, he said the company does not expect a “material change” to the original distribution guidance previously provided for legacy Nexstar, noting the FCC commitment to offer MVPDs renewing before Nov. 30 an extension of current retransmission agreements through that date. Advertising revenue was $548 million, up $88 million, or 19.1%, primarily due to $51 million of incremental TEGNA advertising revenue and higher political advertising. Excluding TEGNA, Biard said legacy Nexstar non-political advertising was “flattish” and in line with expectations, rising 0.4% as digital growth offset declines in non-political television advertising. Biard listed top first-quarter advertising categories for legacy Nexstar as department and retail stores, attorneys, and gaming and sports betting, while the largest declines were in drugstores and medication, packaged goods, and radio/TV/newspaper/cable advertisers. He said there were no major category outliers. On a combined basis, Biard said non-political advertising was up 1.2%, aided by TEGNA’s portfolio of NBC affiliations benefiting from NBC’s broadcast of the Super Bowl and Olympics in the first quarter. He added that combined digital advertising revenue increased at a mid-single-digit percentage, driven by strong local digital revenue, offset in part by continued declines at TEGNA’s Premion segment due primarily to the loss of a major customer in 2025. For the second quarter, Biard said non-political advertising on an as-combined basis is expected to decline in the mid-single digits due to a weaker advertising environment. On the call, Gliha said she did not see a single category driving the softness, describing it as broadly distributed across categories. Sook added that several smaller factors were affecting results, including one large home improvement advertiser going “silent” for a period, and pharma advertising that “has not returned as of yet.” Political advertising was a key contributor in the quarter. Biard said reported political advertising was $46 million, while on a combined basis political advertising in Q1 was $78 million, up 89% versus 2022 and 19% versus 2024, driven by spending in Texas, Illinois, California, Michigan, Georgia, and Maine. Citing AdImpact, Biard said industry-wide broadcast political spending was up 79% versus the comparable 2022 election cycle quarter and up 13% versus 2024. Sook said Nexstar continued building The CW and NewsNation as national networks. He said The CW improved year-over-year profitability in the first quarter and is “well on its way” to achieving profitability by the fourth quarter of 2026. Biard reiterated the profitability goal and said the company expects to improve full-year CW losses by more than 30%. He said the network faces near-term advertising headwinds related to Nielsen’s transition to big data measurement, but improved distribution from the 2025 affiliation renewal cycle is expected to more than offset those impacts. Biard highlighted a multi-year broadcast partnership with the Mountain West Conference running through the 2030-2031 seasons, including 13 football games annually and 20 men’s and 15 women’s basketball games each season. He also said The CW added six Banana Ball games to its May and June schedule. With 148 additional hours of programming airing in 2026, Biard said nearly half of The CW schedule will be sports or sports-adjacent. On performance, Biard said the NASCAR O’Reilly Auto Parts series on The CW delivered more than 1 million total viewers for each of its first 12 races in the 2026 season. He also said ACC men’s and women’s basketball concluded the 2025-2026 season with record viewership, with total audiences up 6% for men’s games and 26% for women’s. Biard also discussed new distribution partnerships, including a deal with ESPN that will make the ESPN app and website the exclusive streaming home for all CW sports, and a Roku partnership that will bring CW entertainment programming to The Roku Channel for next-day streaming starting in the fall broadcast season. Biard framed these as an “evolution” of strategy, describing the “build, buy or partner” options and saying Nexstar opted to partner given the challenges and capital intensity of building digital platforms. For NewsNation, Sook said the network was the “number one fastest-growing” network in prime time across major broadcast and cable networks in March 2026, growing 85% in total viewers and 100% among adults 25-54 compared with the prior year. He said NewsNation ranked 35th in total household viewing for all prime time ad-supported cable networks in the first quarter. Gliha said combined first-quarter direct operating and SG&A expenses (excluding depreciation and amortization and corporate expenses) increased $76 million, driven primarily by $73 million of recurring incremental expense from the TEGNA acquisition and $4 million in one-time expenses related to legacy Nexstar cost reduction initiatives. Excluding one-time items, she said first-quarter recurring cash operating expenses for legacy Nexstar were lower by $1 million. Corporate expense was $106 million, including $20 million of non-cash compensation expense, compared with $52 million a year earlier (including $18 million non-cash compensation). Gliha said the increase was primarily due to $38 million of one-time costs associated with the TEGNA acquisition. On cash flow items, Gliha said first-quarter CapEx was $22 million, down from $35 million, primarily due to delayed spending given the pendency of and plans related to the TEGNA acquisition. She said the company was projecting CapEx in the “$45 million range” in Q2, and estimated second-quarter cash taxes in the “$152 million range.” She said the current quarterly run-rate interest expense based on balances as of April 30 was about $187.5 million, which will fluctuate with SOFR rates and decline as debt is repaid. Nexstar returned $56 million to shareholders via dividends during the quarter and maintained its $1.86 per share quarterly dividend, which Sook said represents a 3.7% yield. The company did not repurchase shares in the quarter. Gliha said outstanding debt at March 31, 2026 was $12.1 billion, up from $6.3 billion at year-end, reflecting the TEGNA acquisition. The cash balance at quarter-end was $379 million, including $12 million related to The CW. She also noted that because The CW is designated an unrestricted subsidiary, its losses are not included in leverage calculations for the company’s credit agreement. On leverage, Gliha said the net first lien covenant ratio at March 31 was 2.94x, below the credit agreement’s 4.75x covenant, and total net leverage was 3.84x using the same methodology. She said that subsequent to quarter-end, Nexstar repaid its $150 million short-term Term Loan A in full and made $4 million in mandatory amortization payments. She also said the company refinanced its 2027 senior notes with $1.725 billion of 7.25% senior notes due 2034. Looking ahead, Sook said Nexstar expects to report second-quarter results in early August, which he said will be the first full quarter of reporting “the combined consolidated results of the new Nexstar.” 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. The article "Nexstar Media Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Management attributes the TEGNA acquisition as a critical step to level the playing field against big tech and legacy media companies that possess significantly greater reach and resources. The company is currently operating TEGNA as a separate subsidiary under a court-ordered 'hold separate' mandate, though it maintains ownership and the ability to use excess cash flow for combined debt repayment. Performance in the first quarter was bolstered by record net revenue of $1.4 billion, driven by 13 days of TEGNA operations and strong political advertising spend. The CW network improved year-over-year profitability through cost reductions and broader core operating efficiencies, remaining on track for full profitability by Q4 2026. NewsNation achieved significant audience growth, becoming the fastest-growing network in primetime for March 2026, which management views as a validation of its unbiased journalism strategy. Strategic positioning is being enhanced through 'partner' rather than 'build' digital strategies, evidenced by new distribution deals with ESPN and Roku to extend reach without heavy capital investment. Management expects The CW to achieve profitability in the fourth quarter of 2026 and improve full-year losses by more than 30% compared to the prior year. Second quarter non-political advertising is projected to decline mid-single digits on a combined basis due to a generally weaker advertising environment and consumer conservatism. The company anticipates a favorable 2026 political season, noting that Q1 combined political revenue was already up 19% versus the 2024 cycle. Capital allocation will prioritize mandatory obligations and debt repayment, with a goal to continue deleveraging using significant cash flows expected from the 2026 election cycle. Strategic initiatives at The CW will shift nearly half of the programming schedule to sports or sports-adjacent content by the end of 2026 to drive viewership and brand equity. The TEGNA integration is currently stalled by litigation from DIRECTV and several state AGs, requiring the assets to be held separate and preventing immediate synergy realization. First quarter results included $38 million in one-time costs associated with the TEGNA acquisition and $4 million in cost-reduction expenses at legacy Nexstar. A temporary bridge loan and refinancing activities resulted in $22 million of one-time commitment and funding fees during the quarter. Management flagged a 'hold separate' order risk where TEGNA must operate under its own retransmission agreements and prior operating covenants until legal resolution. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that while they cannot influence day-to-day decisions, they maintain governance through board-level approvals for major financial transactions. Certain arm's-length commercial agreements between Nexstar and TEGNA, such as news production partnerships or Premion collaborations, are still permissible. The weakness is described as a general across-the-board trend rather than a specific category failure, though a large home improvement advertiser going 'silent' was noted. Management suggested macro factors like higher gas prices and delayed consumer spending of tax refunds are contributing to a more conservative advertising environment. Management characterized the deals as an 'evolution' to avoid the massive capital intensity and losses associated with building proprietary streaming platforms. The partnerships are intended to leverage the scale of existing giants to build The CW's brand equity and monetize viewership more effectively in the near term. CEO Perry Sook expressed confidence that the FCC is on a path toward deregulation, calling existing ownership caps 'antiquated relics' that do not reflect current market realities. The company believes the legal challenges to the TEGNA deal are based on antitrust arguments that fall outside the FCC's specific regulatory purview regarding the ownership cap. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.