8-K: Nexstar Reports Q4 2025 Results, Guides 2026 EBITDA

Nexstar Media Group announced its fourth quarter 2025 financial results, reporting $1.29 billion in net revenue and providing 2026 Adjusted EBITDA guidance between $1.95 billion and $2.05 billion.

Summary

• Fourth quarter 2025 net revenue was $1.29 billion, a 13.4% decrease year-over-year, primarily due to lower political advertising revenue.
• Full year 2025 net revenue was $4.95 billion, an 8.5% decrease year-over-year.
• Reported a net loss of ($170) million in Q4 2025, compared to a net income of $229 million in Q4 2024.
• Full year 2025 net income was $83 million, an 87.8% decrease from $683 million in 2024.
• Fourth quarter 2025 Adjusted EBITDA was $433 million, a 31.1% decrease year-over-year.
• Full year 2025 Adjusted EBITDA was $1.56 billion, a 22.1% decrease year-over-year.
• Reduced 2025 year-over-year losses at The CW by 32%, exceeding financial expectations.
• Provided 2026 standalone Adjusted EBITDA guidance in a range of $1.95 billion to $2.05 billion.
• Advanced the proposed acquisition of TEGNA Inc., valued at $6.2 billion, with an anticipated closing by the second half of 2026.
• Returned $351 million to shareholders and repaid $185 million of debt during 2025.
• The CW achieved 19% total audience growth and ranked as the 10th most-watched and second fastest growing ad-supported network overall.
• Nexstar journalists and technical staff earned 532 awards in 2025 for exemplary local reporting and programming.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed report. While strategic initiatives like the TEGNA acquisition and The CW's performance show promise, the significant year-over-year declines in key financial metrics due to political advertising cycles and an impairment charge weigh heavily on current performance.

Positives

• Reduced 2025 year-over-year losses at The CW by 32%, exceeding financial expectations.
• Achieved better-than-expected growth in non-political advertising revenues in Q4 2025, increasing 4.5%.
• NewsNation achieved its strongest year ever for news programming viewership in 2025.
• The CW achieved 19% total audience growth compared to the prior year and ranked as the 10th largest and second fastest growing ad-supported network overall.
• Strong performance of sports programming on The CW, including the NASCAR Xfinity Series (most-watched season in four years) and double-digit viewership growth for ACC and Pac-12 college football and ACC men's and women's basketball.
• Nexstar journalists and technical staff earned 532 awards in 2025, including a duPont-Columbia award, a Walter Cronkite award, and 57 national and regional Edward R. Murrow awards.
• Renewed distribution agreements representing more than 60% of the subscriber base.
• Extended affiliation agreement with ABC and MyNetwork to 2027.
• First lien net leverage ratio was 1.71x as of December 31, 2025, well below the covenant of 4.25x.
• Unrestricted cash balance increased to $280 million as of December 31, 2025, from $144 million in 2024.

Negatives

• Q4 2025 net revenue declined by $199 million (13.4%) year-over-year to $1.29 billion.
• Full year 2025 net revenue declined by $458 million (8.5%) year-over-year to $4.95 billion.
• Reported a Q4 2025 net loss of ($170) million, a 174.2% decrease compared to net income of $229 million in Q4 2024.
• Full year 2025 net income of $83 million represents an 87.8% decrease from $683 million in 2024.
• Q4 2025 Adjusted EBITDA decreased by $195 million (31.1%) year-over-year to $433 million.
• Full year 2025 Adjusted EBITDA decreased by $443 million (22.1%) year-over-year to $1.56 billion.
• Q4 2025 Net Cash Provided by Operating Activities decreased by $221 million (53.8%) year-over-year to $190 million.
• Q4 2025 Adjusted Free Cash Flow decreased by $197 million (47.9%) year-over-year to $214 million.
• Primary drivers of financial declines include a $233 million decrease in political advertising revenue in Q4 2025 and a $381 million impairment of an equity investment related to TV Food Network LLC.
• Increased one-time corporate expenses from the pending acquisition of TEGNA Inc. contributed to the net loss.
• MVPD subscriber attrition partially offset growth in distribution revenue.

Risks

• Impact of changes in national and regional economies.
• Ability to service and refinance outstanding debt.
• Successful integration of business acquisitions, including achieving synergies and cost reductions.
• Pricing fluctuations in local and national advertising markets.
• Future regulatory actions and conditions in television stations operating areas.
• Competition from others in the broadcast television markets.
• Volatility in programming costs.
• The timing of and any potential delay in consummating the TEGNA acquisition.
• The risk that the conditions to closing of the proposed TEGNA transaction (including necessary regulatory approvals) may not be satisfied in the anticipated timeframe or at all.
• The risk that a regulatory approval required for the proposed TEGNA transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated.
• The risk of the occurrence of any event, change, or other circumstance that could give rise to the termination of the merger agreement between Nexstar and TEGNA.
• The risk that Nexstar fails to obtain the necessary financing arrangements for the TEGNA acquisition.
• Effects of governmental regulation of broadcasting.
• Industry consolidation.
• Technological developments.
• Major world news events.

Future Outlook

Nexstar anticipates closing its acquisition of TEGNA Inc. by the second half of 2026, capitalizing on political advertising opportunities presented by the mid-term elections, and continuing to optimize business operations across the company. The company provides 2026 standalone Adjusted EBITDA guidance in the range of $1.95 billion to $2.05 billion, noting that factors such as pay television subscriber trends, advertising market health, renegotiation of distribution and affiliation agreements, and income from its 31.3% ownership stake in TV Food Network could affect this outlook.

Management Comments

• "Nexstar delivered another quarter and year of solid financial results, while taking bold steps to better compete with big tech and big media by reinforcing our position as the nation's leading local broadcasting company through our proposed acquisition of TEGNA Inc."
• "In Q4 2025, we completed all outstanding 2025 renewals with our distribution partners and achieved better-than-expected growth in non-political advertising revenues."
• "In 2025, NewsNation achieved its strongest year ever for news programming viewership bolstered by our commitment to fact-based, unbiased reporting."
• "Benefiting from our sports programming strategy, The CW exceeded financial expectations for the year and ended 2025 as the 10th most-watched and second fastest growing ad-supported network overall."
• "Our 2026 plan includes closing our acquisition of TEGNA, capitalizing on the political advertising opportunities presented by the mid-term elections, and continuing to optimize our business operations across the company, all of which we anticipate will contribute to shareholder value creation."

Industry Context

StockSavvy.ai notes that Nexstar's strategic move to acquire TEGNA Inc. positions it to consolidate its leadership in local broadcasting, directly addressing competition from larger tech and media entities. The strong performance of The CW, particularly in sports programming like NASCAR and college athletics, highlights a successful pivot in content strategy to drive audience growth and advertising revenue in a challenging linear TV environment. The significant decline in political advertising revenue year-over-year reflects the cyclical nature of the U.S. election cycle, a common industry trend for broadcasters in non-election years.

Comparison to Industry Standards

• The CW's achievement of 19% total audience growth and ranking as the second fastest growing ad-supported network overall is a strong performance in a generally declining linear television market, outperforming many traditional broadcast and cable networks.
• The NASCAR Xfinity Series having its most-watched season in four years on The CW demonstrates successful content acquisition and audience engagement, potentially surpassing viewership trends seen on other sports networks for similar tier events.
• The 32% reduction in year-over-year losses at The CW suggests effective cost management and strategic programming decisions, potentially outperforming other struggling niche networks in their turnaround efforts.

Stakeholder Impact

• Shareholders: Potential for value creation from the TEGNA acquisition and political advertising opportunities. Shareholder returns of $351 million in 2025 demonstrate commitment, but significant declines in net income and free cash flow could impact future returns.
• Employees: Optimization of business operations may lead to efficiency initiatives or restructuring.
• Customers (Advertisers): Non-political advertising growth is positive, but overall advertising revenue is down due to the political cycle.
• Subscribers (MVPD/vMVPD): Distribution revenue growth is driven by increased rates and vMVPD subscribers, partially offset by MVPD subscriber attrition.
• Creditors: Debt repayment of $185 million in 2025 and healthy leverage ratios (1.71x first lien net leverage) indicate strong debt management.

Next Steps

• Close the acquisition of TEGNA Inc. by the second half of 2026, subject to regulatory approvals.
• Capitalize on political advertising opportunities presented by the mid-term elections in 2026.
• Continue to optimize business operations across the company.
• Host a conference call on February 26, 2026, at 10:00 a.m. ET to discuss financial results.

Key Dates

Recommendation

The filing presents a mixed picture. While Nexstar is making strategic moves like the TEGNA acquisition and showing promising growth in areas like The CW's audience and non-political advertising, the substantial year-over-year declines in net revenue, net income, and Adjusted EBITDA, largely due to the political advertising cycle and an impairment charge, are concerning. The 2026 guidance is positive, but the execution risks associated with the TEGNA acquisition and the cyclical nature of political advertising warrant a cautious "hold" stance until more clarity emerges on the integration and sustained financial recovery.

Keywords

Nexstar Media Group, NXST, Q4 2025 Earnings, Financial Results, Broadcast Television, Local News, The CW Network, TEGNA Acquisition, Adjusted EBITDA Guidance, Political Advertising, Distribution Revenue, Advertising Revenue, Media Industry, Shareholder Returns, Debt Repayment