Sinclair, Inc. (SBGI): Results of Operations and Financial Condition
Sinclair, Inc. (SBGI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release SINCLAIR REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS BALTIMORE (August 5, 2026) - Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results for the three and six months ended June 30, 2026. Highlights: • Total Revenue increased b
How this was made
The 30-second read
Why it matters
The key tradable update is the guidance increase for total company Adjusted EBITDA, alongside a stated decrease in core advertising revenue due to political demand crowding out inventory.
Market read
Traders can update 2026 earnings expectations based on the raised Adjusted EBITDA range and the disclosed mix shift toward political advertising.
What to watch
Watch liquidity and debt reduction details (including the AR facility paydown) and whether Tennis and other segments can offset any weakness in core advertising.
Sinclair Reports Second Quarter 2026 Financial Results
Total revenue increased 7% year-over-year, Adjusted EBITDA increased 45% to $149 million, political advertising revenue rose 883% year-over-year to $59 million, and the Company increased full-year 2026 Adjusted EBITDA guidance to $730 million to $760 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended June 30, 2026GAAP | $840 million | 4% | 7% |
| Distribution revenue, three months ended June 30, 2026GAAP | $444 million | (3)% | 2% |
| Core advertising revenue, three months ended June 30, 2026GAAP | $308 million | 1% | (3)% |
| Political advertising revenue, three months ended June 30, 2026GAAP | $59 million | 228% | 883% |
| Other media and non-media revenue, three months ended June 30, 2026GAAP | $29 million | 12% | 4% |
| Net (loss) income attributable to the Company, three months ended June 30, 2026GAAP | $(76) million | n/m | 19% |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $149 million | 18% | 45% |
| Operating income, three months ended June 30, 2026GAAP | $50 million | – | – |
| Media programming and production expenses, three months ended June 30, 2026GAAP | $424 million | – | – |
| Media selling, general and administrative expenses, three months ended June 30, 2026GAAP | $217 million | – | – |
| Non-media expenses, three months ended June 30, 2026GAAP | $13 million | – | – |
| Amortization of program costs, three months ended June 30, 2026GAAP | $18 million | – | – |
| Corporate general and administrative expenses, three months ended June 30, 2026GAAP | $45 million | – | – |
| Stock-based compensation, three months ended June 30, 2026GAAP | $19 million | – | – |
| Non-recurring and unusual transaction, implementation, legal, regulatory and other costs, three months ended June 30, 2026GAAP | $7 million | – | – |
| Interest expense (net), three months ended June 30, 2026other | $71 million | – | – |
| Capital expenditures, three months ended June 30, 2026other | $20 million | – | – |
| Cash distributions from investments, three months ended June 30, 2026other | $19 million | – | – |
| Net cash taxes paid, three months ended June 30, 2026other | $27 million | – | – |
| Total revenue, six months ended June 30, 2026GAAP | $1,647 million | – | 6% |
| Distribution revenue, six months ended June 30, 2026GAAP | $902 million | – | 2% |
| Core advertising revenue, six months ended June 30, 2026GAAP | $613 million | – | 1% |
| Political advertising revenue, six months ended June 30, 2026GAAP | $77 million | – | 542% |
| Other media and non-media revenue, six months ended June 30, 2026GAAP | $55 million | – | —% |
| Net loss attributable to the Company, six months ended June 30, 2026GAAP | $(56) million | – | (75)% |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $275 million | – | 28% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Local MediaPolitical advertising revenue was $59 million. The segment includes broadcast television stations, multicast networks and original content. | $731 million | – | – |
| TennisTennis Channel reported engagement growth across linear, streaming, and direct-to-consumer platforms, with multiple second-quarter events reaching record audiences. | $70 million | – | – |
| OtherThe segment includes non-broadcast digital solutions, technical services, and other non-media investments. | $53 million | – | – |
For the twelve months ending December 31, 2026 outlook
- RevenueConsolidated Total Revenue $3,400 to 3,540 million; Local Media Total Revenue $3,000 to 3,120 million
- NoteConsolidated Distribution Revenue $1,720 to 1,790 million; Local Media Distribution Revenue $1,510 to 1,570 million
- NoteConsolidated Core Advertising Revenue $1,220 to 1,280 million; Local Media Core Advertising Revenue $1,040 to 1,090 million
- NoteConsolidated and Local Media Political Advertising Revenue At least $375 million
- NoteConsolidated Adjusted EBITDA $730 to 760 million; Local Media Adjusted EBITDA $710 to 740 million
- NoteCapital expenditures $75 to 80 million
- NoteNet interest expense $290 to $295 million
- NoteNet cash tax payments Approx. $50 million
Capital returns
- In June, the Company paid a quarterly cash dividend of $0.25 per share.
What drove it
- Political advertising revenue was $59 million, up 9% compared to the second quarter of the 2022 mid-term election cycle.
- Political advertising momentum was supported by the 2026 midterm election cycle.
- Record-setting 2026 FIFA World Cup audiences across the FOX affiliate portfolio drove engagement across digital and podcast platforms.
- Traditional MVPD subscriber trends continued to show signs of modest stabilization.
- Distribution revenue increased 2% year-over-year, while other media and non-media revenue increased 4% year-over-year.
Concerns
- Core advertising revenue declined 3% year-over-year to $308 million.
- The Company decreased core advertising revenue guidance, citing strong political demand crowding out inventory in its most competitive markets and caution in a handful of cost-pressured advertiser categories.
- Net (loss) income attributable to the Company was $(76) million in the quarter.
- Total Company debt was $4,059 million and the Total Leverage Ratio was 5.2x.
What to watch
- Political Advertising Revenue guidance of at least $375 million for the twelve months ending December 31, 2026.
- Core Advertising Revenue guidance of $1,220 to 1,280 million on a consolidated basis.
- Consolidated Adjusted EBITDA guidance of $730 to 760 million.
- Distribution Revenue guidance of $1,720 to 1,790 million on a consolidated basis.
- Further debt reduction following the $320 million reduction during the quarter and approximate $25 million B7 term-loan retirement in early July.
Balance sheet and cash flow
- Reduced $320 million of debt in the quarter, inclusive of $150 million accounts receivable facility paydown.
- Retired an additional approximate $25 million of B7 term loan in early July.
- Total Company debt was $4,059 million, all of which was indebtedness of STG.
- Cash and cash equivalents were $604 million, consisting of $115 million of STG cash and $489 million of Ventures cash.
- The Company had $763 million of available borrowing capacity under its revolver and undrawn capacity in its accounts receivable facility, bringing available liquidity to $1.4 billion.
- First Out First Lien Leverage Ratio was 1.8x. Total Leverage Ratio was 5.2x.
- 48,507,841 Class A common shares and 23,755,236 Class B common shares were outstanding, for a total of 72,263,077 common shares.
- Capital expenditures for the second quarter of 2026 were $20 million.
Analysis
Sinclair reported a stronger second quarter, with total revenue increasing 7% year-over-year to $840 million and Adjusted EBITDA increasing 45% to $149 million. Sequentially, total revenue increased 4% and Adjusted EBITDA increased 18%. For the first six months, total revenue increased 6% to $1,647 million and Adjusted EBITDA increased 28% to $275 million.
Political advertising was the central growth driver. Quarterly political advertising revenue was $59 million, compared with $6 million in the prior-year quarter and $18 million in the prior quarter. The Company also stated that quarterly political revenue was up 9% compared with the second quarter of the 2022 mid-term election cycle. Distribution revenue increased 2% year-over-year, and management cited modest stabilization in traditional MVPD subscriber trends. Core advertising revenue declined 3% year-over-year to $308 million despite a 1% sequential increase.
The Local Media segment generated $731 million of total revenue and $149 million of Adjusted EBITDA. Tennis generated $70 million of revenue and $8 million of Adjusted EBITDA, while Other generated $53 million of revenue and $7 million of Adjusted EBITDA. Management highlighted record-setting World Cup audiences across the FOX affiliate portfolio and record audiences for several Tennis Channel events as sources of engagement across linear, streaming, digital, podcast, and direct-to-consumer platforms.
Profitability improved at the adjusted level, but the Company reported net (loss) income attributable to the Company of $(76) million. Consolidated operating income was $50 million. Quarterly media selling, general and administrative expenses were $217 million, compared with $200 million in the prior-year quarter, while stock-based compensation was $19 million compared with $15 million. Net interest expense was $71 million.
Capital allocation focused on deleveraging alongside the quarterly dividend. The Company reduced $320 million of debt during the quarter, including a $150 million accounts receivable facility paydown, and retired an additional approximate $25 million of B7 term loan in early July. It ended the quarter with $604 million of cash and cash equivalents, $1.4 billion of available liquidity, and $4,059 million of total Company debt. Full-year Adjusted EBITDA guidance increased to $730 million to $760 million from $700 million to $740 million, while total revenue and distribution revenue guidance remained unchanged. The Company raised political advertising revenue guidance to at least $375 million, reduced core advertising revenue guidance, lowered net interest expense guidance, and increased expected net cash tax payments to Approx. $50 million.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Earnings per share, including GAAP and non-GAAP EPS, were not reported.
- Operating cash flow and free cash flow were not reported.
- Share repurchases were not reported.
- A named executive was not identified for the CEO comment, so no executive quote is included.
- No actual full-year 2026 results were reported, so prior full-year guidance cannot be compared with an actual reported figure in vs_prior_guidance.
- Quarter-over-quarter comparisons were not reported for operating income, expense line items, segment revenue, cash, debt, leverage, or shares outstanding.
- Year-over-year percentage changes were not reported for operating income, expense line items, capital expenditures, cash distributions from investments, cash taxes, or segment revenue.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sinclair filed an 8-K reporting second-quarter 2026 results and updated full-year 2026 Adjusted EBITDA guidance, with emphasis on political advertising and broadcast reach.
Ticker impact
Sinclair raised full-year 2026 total company Adjusted EBITDA guidance to $730M-$760M and reported 2Q Adjusted EBITDA of $149M.
Likely positive bias for SBGI as traders reprice 2026 Adjusted EBITDA expectations, with focus on whether political ad demand sustains into the midterm cycle.
The filing is a primary 8-K with updated quantitative guidance and segment revenue detail, which typically drives expectation changes versus prior consensus.
Market effects
Reinforces that political advertising is currently crowding out core advertising inventory, a read-through for broadcast/local media ad demand.
Highlights Sinclair’s footprint across 39 markets with competitive Senate, gubernatorial, and House races, relevant for regional ad budgets.
Limited direct global impact; primarily US political advertising and local broadcast media economics.
Counterpoint
The guidance raise may be partially offset by declining core advertising revenue, so upside could be narrower if political ad demand normalizes faster than expected.
Key entities
- companySinclair, Inc.
Reported 2Q 2026 results and increased full-year 2026 Adjusted EBITDA guidance in an SEC 8-K.
- business_unitFOX affiliate portfolio
Cited for record-setting World Cup audiences and cross-platform engagement that supports advertiser reach.
- revenue_driverPolitical advertising
Reported 2Q political advertising revenue of $59M and increased full-year political advertising revenue guidance to at least $375M.
