NEXSTAR MEDIA GROUP, INC. (NXST): Results of Operations and Financial Condition
NEXSTAR MEDIA GROUP, INC. (NXST) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 SECOND QUARTER 2026 EARNINGS RELEASE August 6, 2026 NEXSTAR MEDIA GROUP REPORTS RECORD QUARTERLY NET REVENUE OF $2.0 BILLION Q2 Net Revenue Drives Net Income of $113 Million, Adjusted EBITDA of $633 Million, Net Cash Provided by Operating Activities of $298 Million a
How this was made
The 30-second read
Why it matters
Traders can frame NXST’s near-term valuation around record revenue and cash flow, while monitoring two time-sensitive overhangs: the FCC vote on ownership cap changes and the ongoing antitrust injunction litigation path.
Market read
NXST’s earnings release provides fresh financial datapoints and reiterates that the TEGNA deal is still under legal/regulatory scrutiny, with a near-term FCC decision.
What to watch
The FCC national ownership cap vote and the scope of the preliminary injunction could materially affect deal economics and integration timelines, even if near-term cash flow is strong.
NEXSTAR MEDIA GROUP REPORTS RECORD QUARTERLY NET REVENUE OF $2.0 BILLION
Record quarterly revenue, broad distribution and advertising growth, higher Adjusted EBITDA, and sharply higher Adjusted Free Cash Flow were partially offset by lower net income margin, transaction-related expenses, higher interest expense, and litigation-related limits on TEGNA synergies.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net RevenueGAAP | $1,993 million | – | 62.2% |
| Distribution RevenueGAAP | $1,116 million | – | 52.3% |
| Advertising RevenueGAAP | $862 million | – | 81.5% |
| Other RevenueGAAP | $15 million | – | (28.6%) |
| Net IncomeGAAP | $113 million | – | 24.2% |
| Net Income MarginGAAP | 5.7% | – | (1.7) |
| Adjusted EBITDAnon-GAAP | $633 million | – | 62.7% |
| Adjusted EBITDA Marginnon-GAAP | 31.8% | – | 0.1 |
| Net Cash Provided by Operating ActivitiesGAAP | $298 million | – | 20.6% |
| Adjusted Free Cash Flownon-GAAP | $238 million | – | 135.6% |
| Six Months Net RevenueGAAP | $3,389 million | – | 37.7% |
| Six Months Distribution RevenueGAAP | $1,954 million | – | 30.7% |
| Six Months Advertising RevenueGAAP | $1,409 million | – | 50.9% |
| Six Months Other RevenueGAAP | $26 million | – | (21.2%) |
| Six Months Net IncomeGAAP | $273 million | – | 45.2% |
| Six Months Net Income MarginGAAP | 8.1% | – | 0.5 |
| Six Months Adjusted EBITDAnon-GAAP | $1,103 million | – | 43.2% |
| Six Months Adjusted EBITDA Marginnon-GAAP | 32.5% | – | 1.2 |
| Six Months Net Cash Provided by Operating ActivitiesGAAP | $587 million | – | 0.5% |
| Six Months Adjusted Free Cash Flownon-GAAP | $658 million | – | 46.5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Distribution$362 million of incremental revenue from the acquisition of TEGNA, higher rates, growth in vMVPD subscribers, and the addition of CW affiliations on certain stations, partially offset by MVPD subscriber attrition. | $1,116 million | – | 52.3% |
| Advertising$331 million of incremental revenue from the acquisition of TEGNA and a $75 million increase in political advertising at legacy business units, partially offset by lower non-political advertising due, in part, to crowd-out from political advertising. | $862 million | – | 81.5% |
| OtherNot provided. | $15 million | – | (28.6%) |
Capital returns
- Returned $57 million to shareholders in dividend payments in the second quarter.
- Repaid $409 million of debt in the second quarter.
- Cash Used For Debt repayment was $409 million, compared with $101 million in the prior-year quarter.
- Common stock dividends were $57 million, compared with $56 million in the prior-year quarter.
- Stock repurchases were -, compared with $50 million in the prior-year quarter.
- Six Months Stockholder return was $113 million, compared with $238 million in the prior-year period.
- Shares Outstanding End of period were 30,806 thousand, compared with 30,315 thousand in the prior-year quarter.
What drove it
- Net Revenue increased $764 million year-over-year, primarily due to $697 million of incremental revenue from the acquisition of TEGNA and higher advertising and distribution revenue from legacy business units.
- Q2 political advertising revenue was $147 million, and legacy business units generated a $75 million increase in political advertising.
- Adjusted EBITDA included $187 million of incremental Adjusted EBITDA primarily from the acquisition of TEGNA and increased revenue at legacy business units.
- FIFA World Cup events on FOX-affiliated stations generated incremental advertising revenue.
- The CW grew total day audience 10% year-over-year and remained the #9 rated ad-supported network in June.
- NewsNation grew 44% in total viewers compared to June 2025 and remained the #1 fastest-growing cable news network in prime time and total day in June 2026.
Concerns
- Net Income margin decreased to 5.7% from 7.4% in the comparable prior-year period.
- Net income was offset in part by $53 million of one-time expenses and increased interest expense, both in connection with the TEGNA transaction.
- Lower non-political advertising was attributable in part to crowd-out from political advertising.
- Distribution revenue faced MVPD subscriber attrition.
- A preliminary injunction requires Nexstar and TEGNA to be held separate during the pendency of litigation and has impacted Nexstar's ability to execute anticipated TEGNA synergies.
- The District Court trial is scheduled for July 6, 2027.
What to watch
- Oral argument in Nexstar's Ninth Circuit appeal is anticipated to be heard in Q4 2026.
- The FCC was scheduled to vote on a proposal to repeal the national ownership cap for television broadcast stations and replace it with case-by-case reviews.
- The Company's stated expectation of strong free cash flow generation in the second half of 2026.
- Execution of ESPN App distribution for CW Sports live events beginning in Summer 2026 and Roku Channel next-day streaming of CW entertainment programming and WWE NXT beginning in Fall 2026.
- Political advertising revenue during the 2026 election year and the extent of non-political advertising crowd-out.
Balance sheet and cash flow
- Cash on Hand was $218 million as of June 30, 2026, compared with $280 million as of December 31, 2025.
- Total Debt was $11,744 million as of June 30, 2026, compared with $6,333 million as of December 31, 2025.
- Consolidated debt of Nexstar and Mission Broadcasting, Inc. was $11.7 billion as of June 30, 2026, including senior secured debt of $9.0 billion.
- Secured Credit Facilities were $5,185 million as of June 30, 2026, compared with $3,622 million as of December 31, 2025.
- Secured Notes were $3,798 million as of June 30, 2026, compared with - as of December 31, 2025.
- Unsecured Notes were $2,761 million as of June 30, 2026, compared with $2,711 million as of December 31, 2025.
- Pro forma first lien net leverage ratio was 3.21x compared to a covenant ratio test of 4.75x; total net leverage ratio was 4.22x.
- In April, the Company issued $1,725 million of Senior Unsecured Notes due 2034 to refinance $1,714 million of Senior Unsecured Notes due to mature in July 2027 and pay fees and expenses in connection therewith.
- Net Cash Provided by Operating Activities was $298 million, up $51 million, or 20.6%, from the comparable prior-year quarter.
- Adjusted Free Cash Flow was $238 million, up $137 million, or 135.6%, from the prior-year quarter.
Analysis
Nexstar reported record second-quarter net revenue of $1,993 million, up 62.2% year-over-year. The increase was led by advertising revenue of $862 million, up 81.5%, and distribution revenue of $1,116 million, up 52.3%. Management attributed the $764 million revenue increase primarily to $697 million of incremental TEGNA revenue, alongside higher advertising and distribution revenue in legacy operations.
Advertising performance reflected $331 million of TEGNA-related revenue and a $75 million increase in political advertising at legacy business units. Q2 political advertising revenue was $147 million. The release also identified incremental FIFA World Cup advertising revenue and continued streaming advertising growth in legacy local markets, while noting that non-political advertising was lower in part because political advertising crowded it out. Distribution growth included higher rates, growth in vMVPD subscribers, and added CW affiliations, partly offset by MVPD subscriber attrition.
Profit and cash flow increased substantially, although reported earnings growth lagged revenue growth. Adjusted EBITDA rose 62.7% to $633 million and its margin was 31.8%, compared with 31.7% a year earlier. Net income increased 24.2% to $113 million, but net income margin fell to 5.7% from 7.4%, reflecting in part $53 million of one-time TEGNA transaction expenses and increased interest expense. Adjusted Free Cash Flow rose 135.6% to $238 million, while net cash provided by operating activities increased 20.6% to $298 million.
Capital allocation prioritized deleveraging and dividends. Nexstar repaid $409 million of debt and paid $57 million in common stock dividends during the quarter, with no stock repurchases reported. Cash on hand was $218 million and total debt was $11,744 million at June 30, 2026. The reported pro forma first lien net leverage ratio was 3.21x and total net leverage ratio was 4.22x. The key operating constraint remains the preliminary injunction requiring Nexstar and TEGNA to be held separate, which the company said has affected its ability to execute anticipated TEGNA synergies.
No quantified financial guidance was provided. Management stated that it is well positioned for strong free cash flow generation in the second half of 2026. Investors will also be focused on the anticipated Q4 2026 Ninth Circuit oral argument, the July 6, 2027 District Court trial, the FCC ownership-cap proposal, and the rollout of CW distribution partnerships with ESPN and Roku.
Management, verbatim
“In a record second quarter, Nexstar generated all-time high quarterly revenue driven by our acquisition of TEGNA Inc., strong political advertising revenue, incremental advertising revenue from highly rated FIFA World Cup events on our FOX-affiliated stations and continued streaming advertising revenue growth in Nexstar’s legacy local markets.”
Perry A. Sook, Founder, Chairman and CEO
“Looking forward, we are well positioned for strong free cash flow generation in the second half of 2026 and we remain confident that the case challenging our acquisition of TEGNA is without merit and we will continue to vigorously defend it.”
Perry A. Sook, Founder, Chairman and CEO
Not in the filing
stated, not guessed- GAAP operating income and operating margin were not provided in the supplied filing text.
- Gross profit and gross margin were not provided in the supplied filing text.
- GAAP diluted EPS and non-GAAP diluted EPS were not provided in the supplied filing text.
- Operating expenses were not provided in the supplied filing text.
- Tax rate was not provided in the supplied filing text.
- Quantified forward revenue, gross margin, operating expense, tax rate, or other financial guidance was not provided in the supplied filing text.
- Prior-quarter comparisons for reported financial metrics were not provided in the supplied filing text.
- A previous outlook section was not provided, so comparison with prior guidance is unavailable.
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
This is Nexstar’s SEC 8-K for Item 2.02, attaching its Q2 2026 earnings release and providing an update on the TEGNA acquisition litigation and regulatory timeline.
Ticker impact
Nexstar reported Q2 2026 results with record net revenue of $1.99B, plus $238M adjusted free cash flow and $409M debt repaid.
Likely near-term support from the record revenue and cash flow, partially offset by ongoing acquisition litigation and regulatory uncertainty.
The filing discloses large year-over-year revenue growth tied to TEGNA, meaningful cash flow metrics, and a live regulatory/litigation timeline (FCC ownership cap vote today, trial scheduled for July 2027).
Market effects
Media and broadcast-advertising sentiment may improve if NXST’s ad and distribution momentum is viewed as durable post-TEGNA.
Local TV station cash flow and affiliation-driven distribution trends could be read across to other station owners.
Limited direct global linkage; primarily US broadcast and advertising dynamics.
Counterpoint
Strong Q2 metrics may be heavily influenced by the TEGNA acquisition, so investors may discount sustainability until litigation and regulatory outcomes resolve.
Key entities
- issuerNexstar Media Group, Inc.
Reported Q2 2026 record net revenue, adjusted EBITDA, adjusted free cash flow, and provided an update on TEGNA acquisition litigation and regulatory developments.
- acquired_companyTEGNA Inc.
Nexstar’s acquisition target; litigation and regulatory approvals remain central to the integration and injunction timeline.
- regulatorFederal Communications Commission (FCC)
Scheduled to vote on a proposal to repeal the national ownership cap for TV stations and replace it with case-by-case reviews.
- courtD.C. Circuit
Rejected challenges to the Media Bureau’s approval of the TEGNA acquisition on July 9, 2026.
