What Management Said

Read the full Q2 2025 transcript ↗

For the first half of 2025, Nexstar Media Group generated adjusted EBITDA of $770 million and adjusted free cash flow of nearly $450 million. We returned $238 million, or 53% of adjusted free cash flow, to shareholders through share repurchases and dividends, reducing our shares outstanding by about 1% while also allocating $132 million to debt repayment. We began in 2019 by converting WGN America, the entertainment network we acquired in the Tribune acquisition, into NewsNation. In June, NewsNation was ranked the number one basic cable network for year-over-year growth with overall viewership increasing by nearly 50% and by 67% in the adults age 25-54 demographic according to Nielsen.

At The CW, we've now achieved five consecutive quarters of audience growth and The CW was the number 8 ranked network in total audience growth for the first half of 2025. Turning to regulatory reform, there have been significant positive developments since our last earnings call. In summary, the continued success and consistency of Nexstar Media Group's financial performance reflects our stable, diversified revenue base, disciplined operations, and continued execution across our portfolio. With our unmatched scale, robust free cash flow, and consistent track record of delivering value, we remain well positioned to seize the significant opportunities that lie ahead.

Nexstar Media Group delivered second quarter net revenue of $1.23 billion, a decline of 3.2% compared to the prior year, primarily reflecting the year-over-year reduction in political advertising. Although the industry continues to see subscriber attrition, we note recent earnings reports from our distribution partners suggest marginal improvements in subscriber trends. Advertising revenue of $475 million decreased $47 million or 9% over the comparable prior year quarter, primarily reflecting a $36 million year-over-year decrease in political advertising. We saw growth in key categories including attorneys and home repair, along with improved performance from some of our national digital businesses, including Best Reviews.

What went well
  • Second quarter results benefited from better than expected advertising revenue, stable distribution revenue and strong expense management, with net revenue of $1.23 billion and adjusted EBITDA of $389 million at a 31.7% margin.
  • Adjusted free cash flow rose to $101 million from $77 million a year earlier, and for the first half Nexstar generated $770 million of adjusted EBITDA and nearly $450 million of adjusted free cash flow.
  • The CW's profitability improved $21 million year over year on lower broadcast rights amortization and reduced operating expenses, achieving its fifth consecutive quarter of audience growth and ranking as the 8th most-watched network for the first half.
  • NewsNation was ranked the number one basic cable network for year-over-year growth in June, with overall viewership up nearly 50% and up 67% in the adults 25 to 54 demographic.
  • The company returned $238 million, or 53% of adjusted free cash flow, to shareholders in the first half through buybacks and dividends while allocating $132 million to debt repayment, and refinanced its credit facilities to extend maturities.
  • Significant regulatory progress occurred as the FCC moved to refresh the record on the national ownership cap and the 8th Circuit vacated the top-four ownership rule as arbitrary and capricious.
What went wrong
  • Second quarter net revenue declined 3.2% to $1.23 billion, primarily reflecting a $36 million year-over-year reduction in political advertising to about $9 million.
  • Non-political advertising declined 2.5% year over year, hurt by a high single-digit decline in goods-based advertising, more than half of which was attributable to the automotive category.
  • Adjusted EBITDA decreased $25 million from $414 million a year earlier, and income from the 31% TV Food Network stake declined $5 million on lower revenue.
  • The company had yet to see a definitive turnaround in video subscriber trends, continuing to experience MVPD subscriber attrition despite early signs of improvement.

Guidance Changes

MetricPeriodCurrent guidance
Non-political advertisingQ3 2025Down in the low single digits year over year (new; despite the 2024 Olympics comp and benefiting in part from the absence of political crowd-out)
The CW lossesFY2025Improve profitability about 25% in 2025, achieve profitability sometime in 2026 (reiterated)
CapExQ3 2025$25 million to $30 million (new)
Interest expenseQ3 2025About $93 million (new)
Cash taxesQ3 2025$35 million to $40 million (new)

Performance Breakdown

MetricYoYNote
Net revenue -3.2% to $1.23 billion year-over-year reduction in political advertising
Distribution revenue Essentially flat at $733 million contractual rate escalators, vMVPD growth and CW affiliations offset by MVPD subscriber attrition and fewer 2024 renewals
Advertising revenue -9% to $475 million $36 million decline in political advertising; non-political down 2.5% on weak goods-based and auto categories
Adjusted EBITDA -$25 million to $389 million (31.7% margin) lower political advertising, partly offset by expense discipline
Adjusted free cash flow +$24 million to $101 million lower CapEx, lower interest expense and lower cash taxes versus the prior-year quarter

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Regulatory reformAwaiting FCC action on ownership rulesFCC refreshed the record on the national ownership cap (possible change by year-end) and the 8th Circuit vacated the top-four rule, opening the door to deregulation—
The CW path to profitabilityProfitability targeted in 2026$21 million YoY profit improvement in Q2, five consecutive quarters of audience growth, on track for ~25% loss improvement in 2025 and profitability in 2026—
M&A posture—Sook said everybody is talking to everybody; growing national footprint is more strategic than doubling up in markets, and Nexstar would raise leverage slightly for the right accretive deal—
Video subscriber trendsOngoing attritionEncouraging early signs of improvement, with good recent reports from two of the largest MVPDs and Charter's trending video performance—
Streaming and DTC launches—Fox One and ESPN's DTC app seen as neutral-to-positive for pay TV given complementary pricing (~$50 combined) and bundling; Nexstar's Fox stations included in Fox One—

Q&A Summary

Any thoughts on Chairman Carr's letters to the networks, and how do you weigh in-market opportunity versus cap expansion for M&A?
Sook said growing the national footprint has more strategic importance than doubling up in markets, M&A will be governed by highest and best use of cash for shareholder value, everybody is talking to everybody, and he welcomes Carr examining whether network-affiliate relationships are balanced since less-exclusive programming is less valuable.
Is increasing CW owned-and-operated stations a strategic priority, and what happens if an announced transaction is challenged in court before rules are finalized?
Sook said CW O&O expansion is a positive byproduct rather than the top priority; on rules, waiver processes already allow top-four transactions, and the FCC could change in-market rules during a deal's pendency, so two things can happen at once with regulatory remedies proposed under current rules.
How do you view economics of virtual MVPDs versus traditional, and will new sports-centric streaming services impact pay TV?
Gliha said vMVPD economics are similar (paid net through networks) versus gross for MVPDs, with both revenue streams targeted to grow; Biard said Fox One and the ESPN app are priced (~$50 combined) and bundled to be complementary to pay TV, and he expects them to be neutral to a net positive.
What is the updated view on the US economic and advertising environment versus the start of the year?
Sook said the ad environment is performing about as expected with no denigration in forward pace; tariff uncertainty has not frozen spending, the back half brings more political crowd-out freeing inventory, and he takes current trends as a net positive.
What were The CW losses in the quarter and are you still on track for a 25% full-year improvement?
Gliha said CW losses improved about $21 million in the quarter and the company still expects to improve total losses about 25% for the year and reach profitability sometime in 2026.
What additional sports opportunities exist for The CW, and how is digital growing across local and national?
Biard said college sports is a category of interest with ongoing discussions beyond the ACC and Pac-12; Gliha said digital is growing mid single digits overall and faster in the local business, with the national network bright spot led by NewsNation and CW audience gains.
Where do CW ad rates stand relative to peers as viewership rises?
Biard said Nexstar has a good handle on like-to-like programming such as Xfinity NASCAR and college sports, has seen sizable year-on-year growth in both volume and rates, and is performing on par or better in each category.
Were there surprises in the ownership-cap refresh comment letters and what are the next steps?
Sook said commenters are largely talking their own book (pay TV predictably opposing cap elimination), the comment period ended with reply comments due around August 22, after which the matter goes to the Chairman and staff, though he could not predict timing of an outcome.

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Q2 2025 call
Reported 2025-08-07 · figures from the Nexstar Media Group, Inc. Q2 2025 earnings call.

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