Nexstar Q2 2026 Earnings: TEGNA and Political Ads Drive Record Revenue

Nexstar Media Group (NASDAQ: NXST) reported Q2 2026 net revenue of $1.993 billion, up 62.2% from $1.229 billion a year earlier, while diluted EPS rose to $3.61 from $3.06. Net income increased 24.2% to $113 million, but the GAAP net margin declined as transaction-related charges and higher interest expense limited the earnings benefit from TEGNA, political advertising, and other revenue growth. Adjusted EBITDA rose 62.7% to $633 million, and operating cash flow increased 20.6% to $298 million.

Core financial results

For the quarter ended June 30, 2026, the TEGNA acquisition contributed $697 million of incremental revenue and $187 million of incremental adjusted EBITDA. This helped operating income and adjusted EBITDA grow roughly in line with revenue, while net income and EPS increased more slowly.

The difference largely reflected $53 million of transaction, one-time, and restructuring expenses, as well as higher interest expense associated with the TEGNA transaction.

Adjusted EBITDA and adjusted free cash flow are non-GAAP measures. Nexstar defines adjusted free cash flow differently from reported free cash flow and notes that it does not represent cash available entirely for discretionary spending.

Revenue mix and operating drivers

Distribution remained Nexstar’s largest revenue source, while advertising posted the faster growth rate. TEGNA made a substantial contribution to both categories.

TEGNA provided $362 million of incremental distribution revenue. Nexstar’s legacy operations also benefited from higher rates, vMVPD subscriber growth, and additional CW affiliations, partially offset by continued attrition among traditional MVPD subscribers.

TEGNA contributed another $331 million to advertising revenue. Political advertising at legacy operations increased by $75 million, with total Q2 political advertising reaching $147 million during the election year. Lower non-political advertising partially offset those gains, in part because political ads displaced other advertising inventory. Management also cited FIFA World Cup events on FOX-affiliated stations and continued streaming advertising growth in legacy local markets.

Audience indicators improved at two of Nexstar’s national properties. The CW’s total-day audience grew 10% year over year in June, while NewsNation’s total viewers increased 44% from June 2025. The company did not separately quantify the financial contribution from these audience gains.

TEGNA added scale faster than GAAP earnings

Revenue and adjusted EBITDA both grew by approximately 62%, leaving adjusted EBITDA margin essentially unchanged at 31.8%. GAAP net income rose only 24.2%, however, and net income margin contracted from 7.4% to 5.7%.

Transaction, one-time, and restructuring expenses increased to $53 million from $10 million, primarily reflecting acquisition-related legal and direct costs, financing expenses, and restructuring activities. Net interest expense nearly doubled to $190 million from $97 million. Together, these costs explain much of the gap between the expansion in operating scale and the more limited increase in GAAP earnings.

Nexstar closed the TEGNA acquisition on March 19, 2026, but an April 17 preliminary injunction requires the two companies to be held separate while litigation proceeds. The restriction has affected Nexstar’s ability to execute anticipated synergies. Because the trial is scheduled for July 6, 2027, Nexstar removed expected TEGNA synergies from its covenant leverage calculations beginning in Q2 2026.

Cash flow, leverage, and capital allocation

Operating cash flow increased to $298 million, supported by higher net income and the timing of operating receipts and payments. Reported free cash flow, after $45 million of capital expenditures, was $253 million compared with $218 million a year earlier. Adjusted free cash flow rose to $238 million, with higher adjusted EBITDA partly offset by increased interest, capital spending, and income tax payments.

Nexstar used cash on hand and operating cash flow to repay $409 million of debt and pay $57 million in dividends during the quarter. At June 30, cash on hand was $218 million, down from $280 million at December 31, 2025.

Total debt stood at $11.744 billion, compared with $6.333 billion at the end of 2025, including $9.0 billion of senior secured debt. The pro forma first-lien net leverage ratio was 3.21 times versus a 4.75-times covenant test, while total net leverage was 4.22 times. These calculations excluded anticipated TEGNA synergies because of the preliminary injunction.

Management perspective

Founder, Chairman, and CEO Perry A. Sook attributed the record revenue to TEGNA, political advertising, FIFA World Cup programming, and streaming advertising growth. He also said Nexstar was positioned for strong free cash flow generation in the second half of 2026 and maintained that the legal challenge to the TEGNA acquisition was without merit.

Management is also extending The CW’s streaming distribution through ESPN and Roku. ESPN is set to become the exclusive streaming home for live CW Sports events beginning in summer 2026, while Roku will offer next-day streaming of CW entertainment programming and WWE NXT beginning in fall 2026.

Recent insider transactions

The supplied insider dataset reports 270,496 shares purchased and 47,135 shares sold over the preceding six months, resulting in net purchases of 223,361 shares. Among the latest 10 reported transactions, one was a purchase by CEO Perry A. Sook and nine were sales by other executives.

The supplied records do not identify the reasons for these transactions, so they do not by themselves establish management’s view of Nexstar’s valuation or outlook.

Risks investors need to watch

• TEGNA litigation and delayed integration: The preliminary injunction requires Nexstar and TEGNA to remain separate, limiting synergy execution. The district court trial is scheduled for July 2027, while Nexstar expects a Ninth Circuit oral argument concerning the injunction in Q4 2026.
• Higher leverage and interest expense: Total debt reached $11.744 billion, and quarterly net interest expense rose to $190 million. Continued financing costs could constrain GAAP earnings and cash available after required debt service.
• Political advertising cyclicality: Political advertising contributed $147 million in Q2 and helped drive the advertising increase. This revenue depends on the election cycle and also displaced some non-political advertising during the quarter.
• Traditional subscriber attrition: Distribution revenue benefited from higher rates and vMVPD growth, but continued MVPD subscriber losses remain an offsetting pressure.

Summary

Nexstar’s Q2 2026 results reflected a major increase in scale from TEGNA and election-year political advertising, producing record revenue while keeping adjusted EBITDA margin stable. GAAP profitability did not rise as quickly because transaction costs and interest expense increased, while the TEGNA injunction restricted synergy execution. Cash generation supported meaningful debt repayment, but the acquisition litigation, elevated leverage, advertising mix, and subscriber trends remain the main areas to monitor.