Nexstar posts $83 million profit in 2025, despite lower overall revenue

The corporate logo of television broadcaster Nexstar Media Group. (Graphic by The Desk)

Key Financial Data

Q4 Total revenue: $1.29 billion (-13.4% year-over)
Q4 Distribution revenue: $720 million (+0.8%)
Q4 Advertising revenue: $549 million (-27.6%)
Q4 Net income: -$170 million (-174.2%)
FY25 Net revenue: $4.95 billion (-8.5%)
FY25 Distribution revenue: $2.92 billion (-0.1%)
FY25 Advertising revenue: $1.96 billion (-18.9%)
FY25 Other revenue: $66 million (+3.1%)
FY25 Net income: $83 million (-87.8%)
Total debt: $6.33 billion
Unrestricted cash: $280 million
Read more Q4 2025 media earnings coverage

Nexstar Media Group continued a trend set by other broadcasters in reporting a net loss during the fourth quarter (Q4) of the year, with overall revenue weighed by slightly lower cable and satellite distribution fees and much lower advertising revenue.

During Q4, Nexstar earned net revenue of $1.289 billion, down 13.4 percent from $1.488 billion during the same period in 2024. The decline was largely driven by a sharp drop in political advertising revenue, which fell by $233 million on a year-over basis.

Advertising revenue totaled $549 million in the fourth quarter, a decrease of 27.6 percent from $758 million in the prior-year period. Political advertising came in at $21 million, compared to significantly higher levels during the 2024 election cycle. Excluding political, non-political advertising increased 4.5 percent, benefiting from the absence of political crowd-out and growth in digital advertising.

Distribution revenue was relatively unchanged, rising less than 1 percent to $720 million during Q4. The slightly higher distribution revenue was attributed to new affiliation agreements involving the CW Network, additional distribution of Nexstar stations on streaming cable-like services and higher fees obtained during contract renewals with pay TV providers.

Those higher fees have convinced some cable and satellite customers to ditch those services for cheaper options, and ongoing churn in the pay TV sector was the primary reason why Nexstar’s Q4 distribution revenue was not higher than reported.

Nexstar’s net loss during Q4 was $170 million, compared to net income of $229 million in the prior-year period. The swing was primarily driven by a $381 million impairment charge related to Nexstar’s 31.3 percent stake in the Food Network, as well as lower political advertising and transaction-related expenses tied to its pending acquisition of TEGNA.

Stock Price

For the full year, Nexstar generated net revenue of $4.949 billion, down 8.5 percent from $5.407 billion in 2024. Advertising revenue decreased 18.9 percent to $1.959 billion, reflecting lower political spending. Distribution revenue was essentially flat, slipping 0.1 percent to $2.924 billion. Other revenue increased 3.1 percent to $66 million.

In its earnings report on Thursday, Nexstar pointed to several accomplishments during the year, including renewed agreements with pay TV companies that reach 60 percent of its prospective viewers. Nexstar also extended its local TV affiliation agreements with the Walt Disney Company’s ABC and Fox Corporation’s MyNetwork TV during 2025.

The CW, which Nexstar acquired a controlling stake in, delivered 19 percent total audience growth and ranked as the tenth largest and second fastest-growing ad-supported network, driven by NASCAR Xfinity Series coverage and ACC and Pac-12 sports programming.

Nexstar also advanced its proposed $6.2 billion acquisition of TEGNA, submitting regulatory filings and responding to inquiries from federal and state authorities. Despite current ownership rules that would ordinarily result in a transaction that size being blocked, Federal Communications Commission (FCC) Chairman Brendan Carr said last week the Nexstar-TEGNA deal is moving forward. With that affirmation, Nexstar said the TEGNA deal is expected to close later this year.

“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,” Perry Sook, Nexstar’s founder, Chairman and CEO, said in prepared remarks on Thursday.

Looking ahead, Nexstar provided standalone 2026 adjusted EBITDA guidance in a range of $1.95 billion to $2.05 billion, citing expectations for midterm political advertising, continued cost optimization and further execution on its distribution and network strategies.

“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,” Sook said.