Nexstar Media Group’s Earnings Call Highlights Growth Amid Challenges

Nexstar Media Group ((NXST)) has held its Q2 earnings call. Read on for the main highlights of the call.

Nexstar Media Group’s recent earnings call conveyed a cautiously optimistic sentiment, underscoring a mix of achievements and challenges. The company celebrated strong financial performance and growth in its NewsNation and CW Network segments, alongside favorable regulatory developments. However, these positives were balanced by declines in net and advertising revenues, as well as ongoing subscriber attrition issues.

Solid Financial Performance

Nexstar Media Group reported a robust financial performance for the second quarter, with net revenue reaching $1.23 billion. The company achieved an adjusted EBITDA of $770 million for the first half of 2025 and generated nearly $450 million in adjusted free cash flow. In a move to reward shareholders, Nexstar returned $238 million and allocated $132 million towards debt repayment, showcasing a strong commitment to financial health and shareholder value.

NewsNation Growth

NewsNation emerged as a standout performer, being ranked the #1 basic cable network for year-over-year growth in June. The network saw a remarkable increase in viewership, with a 50% overall rise and a 67% surge in the key demographic of adults aged 25-54. This growth underscores NewsNation’s expanding influence and appeal in the competitive cable news landscape.

CW Network Success

The CW Network continued its upward trajectory, achieving five consecutive quarters of audience growth. It secured the #8 spot in total audience growth for the first half of 2025. Notably, sports programming now constitutes over 40% of CW’s programming hours, reflecting a strategic shift that is resonating with audiences.

Regulatory Developments

Nexstar benefited from significant positive regulatory developments, including the FCC’s decision to refresh the record on the national ownership cap and the Eighth Circuit’s vacating of a Top-Four rule. These changes are poised to enhance Nexstar’s operational flexibility and competitive positioning.

Strategic Refinancing

The company undertook strategic refinancing of its credit facilities and term loans, successfully extending maturities and strengthening its capital structure. This move is expected to provide Nexstar with greater financial stability and flexibility in the long term.

Decline in Net Revenue

Despite the positive financial metrics, Nexstar experienced a 3.2% decline in net revenue for the second quarter compared to the previous year. This decrease was primarily attributed to a reduction in political advertising, highlighting a challenge that the company needs to address.

Decrease in Advertising Revenue

Advertising revenue saw a decline of $47 million, or 9%, over the prior year quarter. The reduction was largely driven by a $36 million year-over-year decrease in political advertising, reflecting broader industry trends affecting revenue streams.

Subscriber Attrition

The industry-wide challenge of subscriber attrition continues to impact Nexstar, although there are marginal improvements in subscriber trends reported by distribution partners. This remains a critical area for the company to monitor and address.

Forward-Looking Guidance

Looking ahead, Nexstar Media Group provided guidance that reflects both caution and strategic optimism. The company reported a slight 3.2% decline in second quarter net revenue, mainly due to reduced political advertising revenue. However, with an adjusted EBITDA of $389 million and a margin of 31.7%, Nexstar remains financially robust. The focus on strategic programming, particularly in sports content expansion on The CW and NewsNation, is expected to drive future viewership growth.

In summary, Nexstar Media Group’s earnings call painted a picture of cautious optimism, with strong financial performance and strategic growth initiatives counterbalancing challenges in revenue and subscriber retention. The company’s proactive measures in refinancing and programming adjustments position it well for future success, despite the hurdles it faces.