TEGNA ad revenue climbs 4 percent during Q4; distribution income dips

BLANK KXTV TEGNA TD — The television studio of TEGNA-owned ABC affiliate KXTV in Sacramento. (Photo via Google Street View)

Key Financial Data

Q4 Total revenue: $706.1 million (-19%)
Q4 Distribution revenue: $358 million (-1%)
Q4 Advertising revenue: $321.5 million (+4%)
Q4 Political advertising revenue: $17.1 million (-91%)
Net income: $56.1 million (-69%)
Adjusted EBITDA: $161.1 million (-48%)
FY25 Total revenue: $2.712 billion (-13%)
FY25 Distribution revenue: $1.466 billion (-1%)
FY25 Advertising revenue: $1.169 billion (-4%)
FY25 Political advertising revenue: $38.8 million (-90%)
Read more Q4 2025 media earnings coverage

TEGNA saw its overall advertising revenue increase during the fourth quarter (Q4) of last year, but the bump was not enough to offset a broader trend of lower ad spend across the traditional pay TV landscape that has afflicted some of its broadcast peers.

The higher ad spend during Q4, brought on largely by the holiday retail shopping period, was also not enough to offset much-lower political ad income during an off-election cycle, which weighed on TEGNA’s overall earnings despite bright financial line items in its report on a segmented and segregated basis.

For the three months ended December 31, TEGNA posted total revenue of $706.1 million, down 19 percent from $870.5 million in the year-ago period. The decline was primarily driven by a steep drop in political advertising revenue, which fell 91 percent to $17.1 million.

Core advertising revenue increased 4 percent to $321.5 million, supported by growth in linear and local digital advertising. Distribution revenue from fees charged to cable and satellite providers declined 1 percent to $358 million, which TEGNA attributed to continued churn in the pay TV sector that was partially offset by prior contractual rate increases and some distribution renewals.

For the full year, TEGNA reported total revenue of $2.712 billion, down 13 percent from 2024 levels. Political advertising revenue declined 90 percent to $38.8 million for the year, again reflecting the cyclical shift from an election to a non-election year.

Stock Price

TEGNA did not hold a conference call with investors, on account of the company’s pending deal with Nexstar Media Group. That deal, which involves Nexstar spending $6 billion to acquire TEGNA’s local TV stations and advertising businesses, is still awaiting a firm approval from the Federal Communications Commission (FCC) and the U.S. Department of Justice.

Last month, FCC Chairman Brendan Carr said he was interested in having the deal move forward, an indication that the hold-up involves federal regulators at the Justice Department. During a conference call with executives last week, Nexstar CEO Perry Sook said the company continues to update Justice Department officials on the matter, noting that the process has taken longer due to turnover within the federal agency.

Still, both companies are optimistic that the deal will cross the finish line, with TEGNA telling investors via a press release that the acquisition should be complete by the second half of 2026. Previously, Nexstar said the deal is expected to close by the end of the year. Nexstar may have to divest some local TV stations in order to satisfy regulatory concerns, Sook affirmed.