Nexstar Media Group (NXST -1.32%), one of the largest U.S. owners of local television stations, released its second quarter 2025 results on August 7, 2025. The main takeaway was higher-than-expected GAAP revenue of $1.23 billion, beating consensus by $18.7 million (GAAP), although both net income and profitability ratios slid from last year. Diluted earnings per share (GAAP) came in at $3.06, above the $2.71 analyst estimate, but below the prior-year figure of $3.54 in diluted GAAP EPS. The quarter was marked by notable declines in advertising revenue. Overall, the quarter showcased resilient revenue and disciplined expense control, even as core broadcast trends remained pressured.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $3.06 | $2.71 | $3.54 | (13.6%) |
| Revenue (GAAP) | $1.23 billion | $1.21 billion | $1.27 billion | (3.1%) |
| Adjusted EBITDA | $389 million | $414 million | (6.0%) | |
| Adjusted Free Cash Flow | $101 million | $77 million | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Focus Areas
Nexstar Media Group operates a portfolio of more than 200 broadcast television stations across 116 U.S. markets, reaching approximately 70% of U.S. television households as of December 31, 2024, without applying the FCC UHF discount. It owns national media properties, including The CW, a national television network, and NewsNation, a 24-hour cable news network. The company generates revenue primarily from distribution fees paid by cable, satellite, and virtual television providers, as well as from advertising sales and other sources.
The company’s recent focus has centered on maintaining its leadership in local broadcast, pursuing growth for its national networks, and broadening revenue beyond traditional TV spots. Critical success factors include successfully negotiating distribution renewals, leveraging strong local journalism brands, capitalizing on political advertising during election cycles, and investing in strategic areas like sports programming and digital platforms. Maintaining a diversified revenue mix helps Nexstar manage volatility as media consumption habits evolve.
Quarter Highlights and Detailed Performance
GAAP revenue exceeded expectations, supported by a resilient performance in distribution fees and continued progress at The CW and NewsNation. Net revenue (GAAP), at $1.23 billion, declined 3.2% from the prior year, mainly due to a sharp drop in political advertising. Advertising revenue was $475 million, down 9.0% year over year. The bulk of this decline was due to the quarter falling outside a political election cycle, leading political ad sales to decrease by $36 million to $9 million. Non-political advertising saw a smaller dip of 2.5%, reflecting softness in the broader market for television advertising.
Distribution revenue, the company’s largest single segment, held steady at $733 million. This measure represents payments from cable, satellite, and virtual multichannel video programming distributors (vMVPDs) in exchange for carrying Nexstar’s stations and networks, and is reported as distribution revenue under GAAP. While cord-cutting by traditional subscribers continued, new pricing agreements and increased affiliate fees helped offset volume declines. The addition of new CW affiliations in select markets also contributed to stability in this revenue stream.
On the national side, The CW showed continued audience momentum, climbing to the #8-ranked network for the first half of 2025 according to Nielsen. Nexstar executives cited “five consecutive quarters of primetime ratings growth” for The CW through the quarter and significant traction with its pivot toward sports programming, which now comprises over 40% of The CW’s programming hours as of the first half of 2025. Renewal of CW affiliate agreements and the addition of new sports content, such as NASCAR Xfinity Series racing and AVP Volleyball, were highlighted as drivers fueling ratings and future advertising opportunities.
NewsNation, Nexstar’s cable news network, marked its first anniversary operating on a full 24/7 schedule. According to Nielsen, the channel ranked as the fastest growing on basic cable in terms of year-over-year audience, posting gains of nearly 50% in total viewership and 67% among adults ages 25–54 for the period ending June 2025. Local franchises also garnered recognition, as Nexstar stations collected 52 Regional Edward R. Murrow Awards for news excellence this year. These achievements highlight the company’s emphasis on strengthening both national and local news programming to drive audience and revenue.
Profitability metrics moved lower year-over-year. Adjusted EBITDA, a measure of core operating earnings before certain expenses, dropped 6.0% to $389 million. The company’s Adjusted EBITDA margin—a ratio reflecting profits after accounting for direct costs—fell to 31.7% from 32.6%. A decrease in income from equity interests, such as its stake in TV Food Network, also weighed on net income (GAAP). Despite these pressures, Nexstar maintained strict cost management, reducing capital spending and lowering interest expenses through debt repayments.
Cash flow and capital allocation remained strong. Net cash provided by operating activities (GAAP) rose 40.3% to $247 million, while adjusted free cash flow increased 31.2% to $101 million. Nexstar used $101 million to repay debt, spent $56 million on dividends, and repurchased $50 million worth of its own shares. Total debt declined to $6.38 billion as of June 30, 2025. Unrestricted cash totaled $234 million at quarter-end. The company’s first lien net leverage ratio was 1.81 times as of June 30, 2025, well below its credit covenant cap and underscoring a conservative balance sheet posture.
The company declared its regular quarterly dividend and continued its share buyback program, returning a combined $106 million to shareholders. There was no announced change to the dividend rate this quarter.
Looking Ahead and Management Outlook
Management expressed confidence about future quarters, pointing to upcoming distribution agreement renewals and the potential for regulatory reform that could encourage further industry consolidation. The leadership team noted the anticipated boost in political advertising tied to the 2026 election cycle as a future revenue tailwind. However, no formal update to full-year financial guidance, including EBITDA targets, was provided. Executives cited ongoing risks related to subscriber attrition and advertising market performance.
For investors monitoring the company, key areas to watch over the next few quarters include the pace of distribution renewals (impacting fee revenue), trends in traditional and non-traditional advertising spending, and continued execution at The CW and NewsNation. The ongoing evolution in TV consumption habits—such as increased streaming and digital advertising—remains an area of strategic attention, though no major progress or new initiatives in digital monetization were detailed this quarter. The company stated it will continue to repay debt and repurchase shares but did not provide specific forward financial forecasts for the remainder of fiscal 2025.
The quarterly dividend was maintained at the current rate, with $56 million paid.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
