The NBA's return to broadcast fueled a 16% year-over-year increase in regular season viewership through mid-February. The CW finished the year as the 10th most-watched ad-supported network and the 2nd fastest-growing network overall, delivering a 19% year-over-year increase in viewership. In Q4, Charter posted sequential quarterly growth in video subscribers, and overall, the data is encouraging to Nexstar's distribution outlook. While we are focused on closing our proposed acquisition of TEGNA, we remain equally disciplined in executing against Nexstar's core business.

Digital is a key growth engine, and we continue to expand our audience reach, including local CTV apps, now live in 108 markets, and broaden advertiser solutions across our owned and third-party inventory. Despite AI search headwinds, digital revenue grew high single digits in 2025 and double digits in our local business. In 2026, we expect digital revenue to surpass our national advertising revenue, an important milestone that strengthens our long-term non-political advertising trajectory. Nexstar delivered fourth quarter net revenue of $1.29 billion, a decline of 13.4% compared to the prior year, primarily reflecting the year-over-year reduction in political advertising, offset by better-than-expected growth in non-political advertising revenues.

Advertising revenue of $549 million decreased $209 million, or 27.6% over the comparable prior year, primarily reflecting $233 million year-over-year decrease in political advertising to $21 million. However, non-political advertising was up 4.5% in the quarter, better than the expectation of a low single-digit decrease we mentioned in our last earnings call. As a reminder, industry advertising forecasts are provided on a gross basis, and Nexstar reports advertising revenue, including political, net of agency commissions. As in previous election years, we expect roughly 20% of our full-year political advertising revenue to be earned in the first half of 2026, with the remaining 80% in the second half.

What went well
  • Non-political advertising rose 4.5% in the fourth quarter, better than the low single-digit decrease guided on the prior call, with broad-based improvement across local, national, network and digital as spending arrived later than anticipated.
  • The CW improved its cash flow by an impressive 32% in 2025 and finished the year as the 10th most-watched ad-supported network and the second fastest-growing network overall, delivering a 19% year-over-year increase in viewership.
  • NewsNation posted its strongest year ever in total day, prime time and daytime viewership and was the fastest-growing cable news network in the adults 25 to 54 demographic, with consumer awareness above 40%.
  • Digital revenue grew high single digits in 2025 and double digits in the local business, and management expects digital revenue to surpass national advertising revenue in 2026 despite AI search headwinds.
  • For the full year Nexstar returned $351 million, or 42% of adjusted free cash flow, to shareholders through $226 million of dividends and $125 million of buybacks, reducing year-end shares outstanding by 1% to 30.3 million.
What went wrong
  • Fourth quarter net revenue fell 13.4% to $1.29 billion, driven by a $233 million year-over-year decline in political advertising to $21 million in the off-cycle year.
  • Consolidated adjusted EBITDA dropped $195 million to $433 million and adjusted free cash flow fell to $214 million from $411 million a year earlier.
  • The company wrote down its investment in TV Food Network, consistent with peers in the entertainment cable network space, and equity method income declined $12 million or 67% on lower TV Food Network revenue.
  • Auto was once again the largest declining advertising category, and fourth quarter CapEx rose to $54 million from $35 million on a real estate investment at one property.

Guidance Changes

MetricPeriodCurrent guidance
Adjusted EBITDA (Nexstar standalone, pre-TEGNA)FY2026$1.95 billion to $2.05 billion (new full-year guidance introduced for the standalone business)
Distribution revenueFY2026Low single-digit gross growth, mid single-digit net growth (new, based on 2025 and 2026 contract renewals and improved subscriber attrition)
The CW lossesFY2026Reduce losses another 30% and achieve profitability in Q4 2026 (reiterated and refined to a Q4 profitability target)
Political advertising share2025-2026 cycleLow double-digit share of broadcast political advertising (industry cycle ~$5.28 billion for broadcast) (new; roughly 20% of full-year political expected in H1 and 80% in H2)
CapExFY2026$125 million to $130 million ($30 million to $35 million in Q1) (new)
Cash taxesFY2026$315 million to $325 million (new; up about $208 million versus 2025 on higher election-year income)

Performance Breakdown

MetricYoYNote
Net revenue -13.4% to $1.29 billion year-over-year reduction in political advertising, partly offset by better-than-expected non-political advertising
Distribution revenue +0.8% to $720 million increased rates, vMVPD subscriber growth and CW affiliations, offset in part by MVPD subscriber attrition
Advertising revenue -27.6% to $549 million $233 million decline in political advertising to $21 million, partly offset by 4.5% growth in non-political advertising
Adjusted EBITDA -$195 million to $433 million (33.6% margin) absence of even-year political advertising
Adjusted free cash flow $214 million versus $411 million lower EBITDA, higher CapEx from a real estate investment and programming payments exceeding amortization

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
TEGNA acquisition progressAnnounced deal, DOJ second request received, closing expected second half of 2026HSR and FCC license transfer applications submitted, all regulatory inquiries answered, closing expected by end of Q2 2026 with divestitures expected to be de minimis—
National ownership cap and deregulationAwaiting FCC action; refresh-the-record proceeding openedPresidential and FCC chairman support noted; FCC shot clock would expire June 1; company confident of close by end of Q2 despite investor anxiety—
The CW turnaroundLosses improving ~25% in 2025, profitability in 202632% cash flow improvement in 2025, targeting another 30% loss reduction and Q4 2026 profitability driven by sports (NASCAR, ACC, college football)—
Digital and expense prioritiesDigital growth and cost disciplineDigital and expense rationalization named the top two 2026 priorities; digital to exceed national advertising, further operating expense savings via centralization and AI tools—
AI adoptionNot discussedAI tools deployed in newsrooms for multi-platform workflow and being rolled out to the sales team for prospecting and operations—

Q&A Summary

Given investor anxiety around FCC cap elimination timing, why are you confident the TEGNA deal closes on time, and how much AI-driven cost savings are embedded in the 2026 guide?
Sook said timing is the regulators' purview, the FCC shot clock expires June 1, and the company remains confident of closing before the end of Q2, possibly sooner; Gliha said Nexstar continues optimizing operations through centralization and new technologies, with savings visible in both 2025 and 2026 results.
Have there been surprises with regulators, particularly on how the DOJ views in-market consolidation and potential divestitures, and how is the 2026 macro ad environment?
Sook said Nexstar continues engaging the DOJ with economic studies on redefining the video market and expects any divestitures to be de minimis; Gliha said more categories are increasing than decreasing into Q1 and the company feels decent about the macro outlook.
Any change to your outlook for pro forma leverage once the TEGNA deal closes?
Gliha said not really, no.
How do you see programmatic buying affecting ad sales, and how will you participate?
Sook said acquiring TEGNA's Premion platform is a real opportunity to overlay Nexstar's inventory, and the company is developing a programmatic linear solution to reduce the frictional cost of buying linear television and create a single seamless pitch-to-pay system.
Can you give examples of AI moving the needle in your operations?
Biard said AI tools are deployed in local newsrooms to optimize stories for multiple platforms and find sources efficiently, and AI is being rolled out to the sales team for prospecting, development and workflow, with optimism about the potential as the technology matures.
Any update on alternative uses of spectrum?
Biard said it remains a long way from being meaningful; the EdgeBeam Wireless joint venture with three fellow broadcasters is in early stages of building its team and go-to-market strategy, with some early proof-of-concept and actual revenue orders starting to flow.
You said digital ads will exceed national ad revenues, but isn't The CW national ad revenue already larger than roughly $400 million of digital?
Gliha clarified that The CW is network national advertising, a subsegment of national; the company also has significant national advertising placed at its local stations, which together make total national larger than the digital figure being compared.
How might scale from TEGNA's digital and political businesses create revenue synergies beyond your guidance?
Gliha said no revenue synergies beyond retrans are in the number, but Premion in the growing CTV market and TEGNA's presence in political markets such as Atlanta, Maine, Toledo and Phoenix should benefit the political and digital picture over time.

More on Nexstar Media Group, Inc.

Reported 2026-02-26 · figures from the Nexstar Media Group, Inc. Q4 2025 earnings call.

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