10-K: Scripps Reports 2025 Loss Amid Revenue Decline, Strategic Shifts

The E.W. Scripps Company reported a net loss of $100.9 million for 2025, driven by a 14.3% revenue decrease and significant non-election year political advertising decline, while executing strategic refinancing and asset divestitures.

Summary

• The E.W. Scripps Company reported a net loss of $100.9 million for the fiscal year ended December 31, 2025, a significant shift from a net income of $146.2 million in 2024.
• Total operating revenues decreased by $359 million, or 14.3%, to $2.15 billion in 2025 compared to $2.51 billion in 2024.
• Political advertising revenue decreased by $341 million in 2025, a non-election year, significantly impacting overall revenue.
• Distribution revenues for the Local Media segment decreased by $15.6 million, or 2.0%, primarily due to mid-single-digit subscriber declines, partially offset by rate increases.
• Core advertising revenue for the Local Media segment increased by $13.3 million, or 2.4%, in 2025.
• Scripps Networks revenues decreased by $31.6 million, or 3.8%, mainly due to lower ratings in key monetized demographics, partially offset by growth in connected TV (CTV) revenue and increased advertising spots sold.
• The company completed significant refinancing transactions on April 10, 2025, including issuing new term loans totaling $885 million and establishing a new $450 million accounts receivable securitization facility.
• On August 6, 2025, $750 million of senior secured second lien notes were issued, with proceeds used to repay $426 million of 2027 Senior Notes and make principal prepayments on other debt.
• Scripps committed to the sale of Court TV in the fourth quarter of 2025, recognizing a $19.5 million non-cash charge, with the sale closing on February 9, 2026.
• Agreements were reached to sell local television stations WFTX (Fort Myers, FL) for $40.0 million and WRTV (Indianapolis, IN) for $83.0 million, with closings expected in March 2026.
• In February 2026, the company announced an enterprise-wide transformation plan targeting annualized enterprise EBITDA growth of $125 million to $150 million by 2028, leveraging technology including AI and automation.
• As of December 31, 2025, total outstanding principal amount of indebtedness was approximately $2.65 billion, with $117 million in aggregated undeclared and unpaid cumulative preferred stock dividends.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging period marked by a substantial net loss and revenue decline, primarily due to cyclical political advertising and ongoing industry shifts. While strategic refinancing and a transformation plan are underway, the immediate financial performance is concerning, and the company faces significant debt obligations.

Positives

• Core advertising revenue for the Local Media segment increased by 2.4% in 2025, indicating some resilience in local business advertising.
• The company formed a joint venture, EdgeBeam Wireless, LLC, in January 2025 with Gray Media, Nexstar Media Group, Inc., and Sinclair, Inc., to provide data delivery services leveraging ATSC 3.0, demonstrating innovation and strategic partnerships.
• New multi-year media rights agreements were secured for the Las Vegas Aces (WNBA) and Tampa Bay Lightning (NHL), enhancing sports content offerings.
• A new multi-year agreement was reached with the WNBA to continue airing regular season Friday night matchups on ION, strengthening national network programming.
• Significant debt refinancing transactions were completed in April and August 2025, restructuring debt and extending maturities, including the issuance of $750 million in 2030 Senior Notes.
• The company launched 'Engine Room,' an enterprise Artificial Intelligence (AI) platform in 2025, aimed at improving operating performance and increasing revenue yield through cost savings and revenue growth initiatives.
• An enterprise-wide transformation plan was announced in February 2026, targeting annualized enterprise EBITDA growth of $125 million to $150 million by 2028.

Negatives

• The company reported a net loss of $100.9 million in 2025, a significant decline from a net income of $146.2 million in 2024.
• Total operating revenues decreased by 14.3% ($359 million) in 2025 compared to 2024.
• Political advertising revenue decreased by $341 million in 2025 due to it being a non-election year, highlighting revenue cyclicality.
• Distribution revenues decreased by 2.0% ($15.6 million) in 2025, primarily due to mid-single-digit subscriber declines in MVPD services.
• Scripps Networks revenues decreased by 3.8% ($31.6 million), unfavorably impacted by a 6.7% decline in ratings in key monetized demographics.
• A $19.5 million non-cash charge was recognized in the fourth quarter of 2025 related to the sale of Court TV.
• Interest expense increased by $10.6 million, or 5.1%, in 2025, primarily due to write-offs of deferred financing costs.
• The company incurred a loss on extinguishment of debt of $13.0 million and other financing transaction costs of $44.5 million in 2025.
• Undeclared and unpaid cumulative preferred stock dividends totaled $117 million as of December 31, 2025, and the company is prohibited from paying common dividends or repurchasing common shares until preferred shares are redeemed.
• Cash provided by operating activities decreased significantly by $313 million in 2025 compared to 2024.

Risks

• Declines in advertising spending, influenced by economic downturns, programming ratings, cord-cutting, the introduction of advertising-supported Subscription Video on Demand (SVOD) services, and unpredictable political advertising cycles, could adversely affect profitability.
• Audience fragmentation due to the growth of direct content-to-consumer delivery channels and programming alternatives could impact advertising rates and retransmission consent revenues.
• The loss of network affiliation and carriage agreements or increased costs for renewals could materially adversely affect operating results.
• Retransmission consent revenue may be negatively impacted by renewal negotiations, declines in MVPD subscribers, new video distribution technologies, revised government regulations, or changes in MVPD strategies.
• Investments in television programming may not recoup costs if content is not popular, and increasing content acquisition costs or reduced availability could adversely affect operating results.
• Continued government regulations by the FCC, including potential revisions to ownership rules, ATSC 3.0 standards, and retransmission consent policies, could raise costs, restrict operations, or reduce revenues.
• The inability to attract and retain skilled employees, or sustained labor shortages, could adversely affect business continuity and increase operating costs.
• Acquisitions, joint ventures, and strategic alliances involve inherent risks such as increased leverage, integration challenges, unexpected liabilities, and diversion of management's attention.
• Cybersecurity threats, including breaches, malware, or cyber attacks, could result in disclosure of confidential information, disruption of operations, damage to brands and reputation, legal exposure, and financial losses, potentially heightened by the rapid advancement of AI.
• Risks related to the use of Artificial Intelligence (AI), including ethical considerations, public perception, intellectual property protection, regulatory compliance, privacy, data security, and reliability, could materially adversely affect the business.
• Restrictions imposed by the terms of the $600 million in preferred shares held by Berkshire Hathaway Inc. limit the company's ability to pay common dividends or repurchase common shares until the preferred shares are redeemed.
• Concentrated control by descendants of Edward W. Scripps, who own approximately 93% of Common Voting shares, could discourage merger or takeover transactions and adversely affect the market price of Class A Common shares.
• The ability to issue preferred stock could adversely affect the dividend, liquidation, and other rights of holders of Class A Common shares.
• The public price and trading volume of Class A Common shares may be volatile due to various factors, including market conditions, operating results, and regulatory changes.
• Substantial debt of approximately $2.6 billion could restrict future operations, impair the ability to meet long-term obligations, place the company at a competitive disadvantage, and limit flexibility to respond to business changes.
• Inability to generate sufficient cash flow to service significant financial obligations could necessitate refinancing debt, selling assets, or raising alternative capital, which may not be available on acceptable terms.
• Debt agreements impose covenants that restrict operations, including incurring additional debt, paying dividends, making investments, and engaging in certain transactions, potentially limiting business opportunities.
• Failure to comply with financial covenants, such as the maximum first lien net leverage ratio, could result in a default and acceleration of outstanding indebtedness.
• Variable rate indebtedness exposes the company to interest rate risk, where increases in SOFR could significantly increase annual debt service obligations.

Future Outlook

The E.W. Scripps Company is embarking on an enterprise-wide transformation plan, announced in February 2026, designed to improve operating performance and unlock new value. This plan targets annualized enterprise EBITDA growth of $125 million to $150 million by 2028, through cost savings and revenue growth initiatives leveraging technology, including AI and automation. The company also expects to complete the sale of WFTX and WRTV in March 2026 and has exercised options to acquire 23 ION television stations from INYO Broadcast Holdings, with an aggregate purchase price of approximately $54 million, subject to regulatory approvals. The company will continue to monitor and adapt to evolving FCC regulations, including the quadrennial review of ownership rules and proposals regarding ATSC 3.0 simulcasting requirements.

Management Comments

• We announced an enterprise-wide transformation plan that is designed to improve operating performance and unlock new value and targets annualized enterprise EBITDA growth of $125 million to $150 million by 2028.
• We expect to deliver this improved EBITDA run-rate through cost savings and revenue growth initiatives that will leverage technology including AI and automation and increase revenue yield on our existing businesses.
• Our approach emphasizes responsible AI use, with governance and oversight integrated into platform design and deployment. As Engine Room continues to evolve, it supports Scripps broader efforts to build future-ready capabilities, reclaim time for higher-impact work, and adapt to ongoing industry change, aligning human capital and technology investments in service of long-term business objectives.

Industry Context

StockSavvy.ai notes The E.W. Scripps Company's strategic moves reflect a broader industry trend of traditional media companies adapting to evolving consumption habits and technological advancements. The formation of EdgeBeam Wireless, LLC with major broadcasters like Gray, Nexstar, and Sinclair is a significant step to monetize broadcast spectrum through ATSC 3.0 data delivery, positioning Scripps at the forefront of exploring new revenue streams beyond traditional linear television. This aligns with the industry's push to diversify revenue amidst cord-cutting and the migration to streaming platforms. The continued investment in sports rights for both local and national networks underscores the value of live content in retaining audiences and advertisers in a fragmented media landscape. The company's focus on AI and automation in its transformation plan is consistent with industry-wide efforts to enhance operational efficiency and drive growth through technological innovation.

Management Changes

Corporate Governance

Legal Proceedings

• The company is involved in litigation arising in the ordinary course of business, such as defamation actions and governmental proceedings primarily relating to renewal of broadcast licenses, none of which is expected to result in material loss.

Related Party Transactions

• Berkshire Hathaway Inc. holds 6,000 Series A preferred shares with a face value of $100,000 per share, and a warrant to purchase up to 23.1 million Class A shares at an exercise price of $13 per share. The terms of the preferred shares prohibit the company from paying dividends on and repurchasing common shares until all preferred shares are redeemed.
• Descendants of Edward W. Scripps own approximately 93% of the Common Voting shares and are signatories to the Scripps Family Agreement, which governs the transfer and voting of these shares, giving them the ability to elect two-thirds of the Board of Directors and direct the outcome of certain matters.

Stakeholder Impact

• **Shareholders**: Experienced a net loss and significant revenue decline, with common dividends and share repurchases prohibited due to preferred stock terms. The stock price performance has been volatile, though it saw an increase in 2025 from a low in 2024. The transformation plan and strategic initiatives offer potential for future value creation.
• **Employees**: Impacted by restructuring efforts, including job eliminations (over 200 in 2024), but also benefit from investments in professional development, AI training, and competitive compensation and benefits programs.
• **Customers (Advertisers)**: Core advertising revenue saw a slight increase, but overall advertising revenue was negatively affected by the non-election year and lower network ratings. New sports rights agreements aim to attract more advertising spend.
• **Customers (Viewers)**: The company continues to expand its television networks and local brands on free streaming platforms and has secured new sports content, enhancing viewing options. However, Scripps News ceased over-the-air distribution.
• **Creditors**: Debt refinancing activities have restructured the company's debt profile, and the company remains in compliance with financial covenants. However, the substantial debt load and increased interest expense remain a key consideration.

Next Steps

• The sale of WFTX, the local Fox-affiliated station in Fort Myers, Florida, is expected to close on March 2, 2026.
• The sale of WRTV, the local ABC-affiliated station in Indianapolis, Indiana, is expected to close by March 6, 2026.
• The company notified INYO Broadcast Holdings in February 2026 of its exercise of options to acquire 23 ION television stations, with transactions subject to FCC consent and closing conditions.
• The enterprise-wide transformation plan, announced in February 2026, targets annualized enterprise EBITDA growth of $125 million to $150 million by 2028.
• The FCC's 2022 quadrennial review of ownership rules remains open, with further comments sought in late 2025, which could impact future regulatory landscape.
• The FCC proposed eliminating the ATSC 3.0 simulcasting requirement prior to July 2027, which could affect the company's ATSC 3.0 deployment strategy.
• The debt repurchase authorization of up to $500 million expires on March 1, 2026.
• The Series A preferred shares become redeemable at the option of the company beginning on the fifth anniversary of issuance (January 7, 2026).

Key Dates

Recommendation

The E.W. Scripps Company is navigating a challenging media landscape, evidenced by a significant net loss and revenue decline in 2025, largely due to the non-election year and shifts in traditional advertising. However, management is proactively addressing these challenges through a comprehensive transformation plan targeting substantial EBITDA growth by 2028, strategic asset divestitures, and debt refinancing. The formation of the EdgeBeam Wireless joint venture and investments in AI demonstrate a forward-looking approach to diversify revenue streams and improve operational efficiency. Given the current financial headwinds but also the clear strategic initiatives for future recovery, a 'hold' recommendation is appropriate. Investors should monitor the execution of the transformation plan and the impact of new ventures on financial performance.

Keywords

Media, Broadcasting, Television, Advertising, SEC Filing, 10-K, Scripps, SSP, Local Media, National Networks, ATSC 3.0, Debt Refinancing, Artificial Intelligence, Corporate Governance, Asset Sales, Sports Rights, Digital Media, Streaming