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NXST Q1 Earnings Beat Estimates on TEGNA Deal and Political Lift
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Key Takeaways
Nexstar Q1 earnings beat estimates as revenues jumped 13.1% on TEGNA and political ad growth.
NXST closed the $3.66B TEGNA deal and expects its first full consolidated quarter in Q2 2026.
Nexstar sees softer Q2 ad trends but expects The CW to reach full profitability in Q4 2026.
Nexstar Media Group (NXST - Free Report) reported first-quarter 2026 earnings of $6.15 per share, beating the Zacks Consensus Estimate by 28.7% and increasing 82.5% year over year. The year-over-year improvement was significantly amplified by $42 million of one-time transaction and restructuring expenses that were excluded from the non-GAAP figure in the current quarter, with no comparable adjustments in the prior year period.
Revenues increased 13.1% year over year to $1.4 billion, surpassing the Zacks Consensus Estimate by 10.6%, reflecting $106 million of incremental revenues from the TEGNA acquisition and higher advertising and distribution revenues at legacy business units.
Nexstar Media Group, Inc. Price, Consensus and EPS Surprise
Distribution revenues of $837 million increased 9.8% year over year, reflecting $54 million of incremental TEGNA revenue and higher legacy business revenue from increased retransmission rates, growth in virtual multichannel video programming distributor (vMVPD) subscribers and the addition of CW affiliations on certain stations, partially offset by traditional MVPD subscriber attrition. On a combined basis, assuming TEGNA ownership for the full quarter, distribution revenues increased 1.6% year over year.
Advertising revenues of $548 million rose 19.1% year over year, driven by $51 million of incremental TEGNA advertising revenues and a $35 million year-over-year increase in political advertising at legacy business units to $41 million, reflecting the 2026 election cycle. Non-political advertising at legacy Nexstar grew a modest 0.4% as digital gains offset declines in traditional television advertising. On a combined basis, political advertising reached $78 million, up 89% versus the comparable 2022 cycle and 19% versus the comparable 2024 cycle.
Other revenues were $11 million, declining 8.3% year over year.
Adjusted EBITDA of $470 million increased $89 million or 23.4% year over year, with $31 million attributable to TEGNA and the remainder driven by higher legacy revenues and lower broadcast rights amortization at The CW. Adjusted EBITDA margin expanded to 33.7% from 30.9% in the comparable prior-year period. Net income of $160 million rose 64.9% year over year, with net income margin improving to 11.5% from 7.9%.
Balance Sheet & Cash Flow
As of March 31, 2026, total cash and cash equivalents were $379 million compared with $280 million as of Dec. 31, 2025. Total debt stood at $12.15 billion versus $6.33 billion at Dec. 31, 2025, reflecting the debt financing of the $3.66 billion TEGNA acquisition. The company's pro forma first lien net leverage ratio was 2.94 times against a covenant test of 4.75 times, and total net leverage was 3.84 times at quarter end.
Nexstar returned $56 million to shareholders through dividends in the first quarter, maintaining its quarterly cash dividend of $1.86 per share. After quarter end, Nexstar repaid its $150 million short-term Term Loan A and additional mandatory debt, bringing total debt repaid through April 30, 2026, to $182 million. The company also closed a refinancing of its 2027 senior notes with a new $1.725 billion issuance of 7.25% senior notes due 2034.
Net cash provided by operating activities was $289 million, declining 14.2% year over year, primarily due to working capital timing and a reduction in cash distributions from the company's 31.3% equity stake in Television Food Network. Adjusted free cash flow of $420 million improved 20.7% year over year, supported by higher adjusted EBITDA and reduced broadcast rights payments at The CW.
TEGNA Acquisition and Other Strategic Details
NXST closed the acquisition of TEGNA on March 19, 2026. The company expects to report its first full consolidated quarter with TEGNA when it releases second-quarter 2026 results.
For the second quarter on a combined basis, management expects non-political advertising to decline mid-single digits, reflecting a broader softening in the advertising environment. Nexstar also announced digital distribution partnerships with ESPN for exclusive streaming of CW sports content and with Roku for CW entertainment programming, extending its reach across streaming platforms without the capital burden of building proprietary platforms. The CW network remains on track for full profitability in the fourth quarter of 2026, with 2026 losses expected to improve by more than 30%.
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NXST Q1 Earnings Beat Estimates on TEGNA Deal and Political Lift
Key Takeaways
Nexstar Media Group (NXST - Free Report) reported first-quarter 2026 earnings of $6.15 per share, beating the Zacks Consensus Estimate by 28.7% and increasing 82.5% year over year. The year-over-year improvement was significantly amplified by $42 million of one-time transaction and restructuring expenses that were excluded from the non-GAAP figure in the current quarter, with no comparable adjustments in the prior year period.
Revenues increased 13.1% year over year to $1.4 billion, surpassing the Zacks Consensus Estimate by 10.6%, reflecting $106 million of incremental revenues from the TEGNA acquisition and higher advertising and distribution revenues at legacy business units.
Nexstar Media Group, Inc. Price, Consensus and EPS Surprise
Nexstar Media Group, Inc. price-consensus-eps-surprise-chart | Nexstar Media Group, Inc. Quote
NXST's Quarter in Detail
Distribution revenues of $837 million increased 9.8% year over year, reflecting $54 million of incremental TEGNA revenue and higher legacy business revenue from increased retransmission rates, growth in virtual multichannel video programming distributor (vMVPD) subscribers and the addition of CW affiliations on certain stations, partially offset by traditional MVPD subscriber attrition. On a combined basis, assuming TEGNA ownership for the full quarter, distribution revenues increased 1.6% year over year.
Advertising revenues of $548 million rose 19.1% year over year, driven by $51 million of incremental TEGNA advertising revenues and a $35 million year-over-year increase in political advertising at legacy business units to $41 million, reflecting the 2026 election cycle. Non-political advertising at legacy Nexstar grew a modest 0.4% as digital gains offset declines in traditional television advertising. On a combined basis, political advertising reached $78 million, up 89% versus the comparable 2022 cycle and 19% versus the comparable 2024 cycle.
Other revenues were $11 million, declining 8.3% year over year.
Adjusted EBITDA of $470 million increased $89 million or 23.4% year over year, with $31 million attributable to TEGNA and the remainder driven by higher legacy revenues and lower broadcast rights amortization at The CW. Adjusted EBITDA margin expanded to 33.7% from 30.9% in the comparable prior-year period. Net income of $160 million rose 64.9% year over year, with net income margin improving to 11.5% from 7.9%.
Balance Sheet & Cash Flow
As of March 31, 2026, total cash and cash equivalents were $379 million compared with $280 million as of Dec. 31, 2025. Total debt stood at $12.15 billion versus $6.33 billion at Dec. 31, 2025, reflecting the debt financing of the $3.66 billion TEGNA acquisition. The company's pro forma first lien net leverage ratio was 2.94 times against a covenant test of 4.75 times, and total net leverage was 3.84 times at quarter end.
Nexstar returned $56 million to shareholders through dividends in the first quarter, maintaining its quarterly cash dividend of $1.86 per share. After quarter end, Nexstar repaid its $150 million short-term Term Loan A and additional mandatory debt, bringing total debt repaid through April 30, 2026, to $182 million. The company also closed a refinancing of its 2027 senior notes with a new $1.725 billion issuance of 7.25% senior notes due 2034.
Net cash provided by operating activities was $289 million, declining 14.2% year over year, primarily due to working capital timing and a reduction in cash distributions from the company's 31.3% equity stake in Television Food Network. Adjusted free cash flow of $420 million improved 20.7% year over year, supported by higher adjusted EBITDA and reduced broadcast rights payments at The CW.
TEGNA Acquisition and Other Strategic Details
NXST closed the acquisition of TEGNA on March 19, 2026. The company expects to report its first full consolidated quarter with TEGNA when it releases second-quarter 2026 results.
For the second quarter on a combined basis, management expects non-political advertising to decline mid-single digits, reflecting a broader softening in the advertising environment. Nexstar also announced digital distribution partnerships with ESPN for exclusive streaming of CW sports content and with Roku for CW entertainment programming, extending its reach across streaming platforms without the capital burden of building proprietary platforms. The CW network remains on track for full profitability in the fourth quarter of 2026, with 2026 losses expected to improve by more than 30%.
Zacks Rank & Stocks to Consider
Nexstar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom (CCOEY - Free Report) , Sony (SONY - Free Report) and Fox Corporation (FOXA - Free Report) . Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.3% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.3% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 14.2% year to date.