Nexstar Q3 2026 Earnings: TEGNA and Political Ads Drive Record Revenue

Nexstar Media Group (NASDAQ: NXST) reported Q3 2026 net revenue of $2.133 billion, up 78.0% from $1.198 billion, while diluted EPS rose to $7.92 from $2.14. The TEGNA acquisition supplied $765 million of incremental revenue, and election-year political advertising reached $317 million. Profit margins and cash generation also increased, although debt and interest expense reflected the transaction’s financing impact.

Core Financial Results

Revenue grew faster than operating expenses, which increased to $1.601 billion from $1.023 billion. That expanded operating margin to approximately 24.9% from 14.6%, with TEGNA and higher political advertising contributing to the improvement.

Net income increased more quickly than revenue despite higher interest, taxes, and one-time TEGNA-related expenses. Adjusted EBITDA margin expanded by 5.5 percentage points, while operating cash flow benefited from higher earnings and the timing of receipts and payments.

Adjusted EBITDA and adjusted free cash flow are non-GAAP measures. Nexstar reported GAAP net income, operating cash flow, and diluted EPS separately.

Revenue Mix and Operating Trends

Advertising was the fastest-growing revenue stream, supported by the acquisition and the election cycle. Distribution remained the largest individual category and benefited from TEGNA, higher rates, streaming subscriber growth, new CW affiliations, and the absence of a prior-year one-time charge.

TEGNA contributed $352 million of incremental distribution revenue. Growth from Nexstar’s legacy operations was driven by higher rates, vMVPD and other streaming subscribers, and additional CW affiliations, partially offset by traditional MVPD subscriber attrition and affiliation replacements at six stations previously affiliated with CBS.

TEGNA also contributed $405 million of incremental advertising revenue. Political advertising at legacy operations increased by $163 million, bringing total political advertising revenue to a record $317 million. Some of that demand displaced non-political advertising, which declined during the quarter.

TEGNA Lifted Scale but Raised Financing and Integration Exposure

TEGNA accounted for $765 million of Nexstar’s $935 million year-over-year revenue increase, or approximately 82%. It also contributed $243 million of the $398 million increase in adjusted EBITDA. The quarter’s reported growth therefore reflects a substantial acquisition effect rather than only expansion in the legacy business.

The transaction also increased financing costs and balance-sheet exposure. Net interest expense rose to $186 million from $94 million, while total debt stood at $11.409 billion on September 30, 2026, compared with $6.333 billion at the end of 2025. Cash on hand increased to $446 million from $280 million over the same period.

Nexstar’s pro forma first-lien net leverage ratio was 3.03 times, below its 4.75-times covenant test, while total net leverage was 4.04 times. Those calculations exclude expected TEGNA synergies because a preliminary injunction has affected the company’s ability to implement them. The trial is scheduled for July 6, 2027, leaving limited time before the September 19, 2027 deadline for synergies to qualify under the covenant calculation.

Cash Flow and Capital Allocation

Operating cash flow rose to $680 million, reflecting higher net income and favorable timing in operating assets and liabilities. GAAP free cash flow, calculated as operating cash flow less capital expenditures, was $634 million, up from $87 million. Capital expenditures increased to $46 million from $30 million.

Adjusted free cash flow was lower than GAAP free cash flow at $443 million because the adjusted measure removes working-capital timing and makes other transaction-related adjustments. It still increased 166.9% from the prior-year quarter, mainly due to higher adjusted EBITDA, partly offset by increased interest expense, capital spending, and tax payments related primarily to TEGNA.

Nexstar used cash on hand and operating cash flow to repay $350 million of debt and pay $58 million in dividends during Q3. Debt repayments totaled $786 million for the first nine months, and the company repaid another $525 million after quarter-end, bringing repayments to approximately $1.3 billion through the release date.

Management Commentary

Founder, Chairman, and CEO Perry Sook attributed the record quarterly revenue to TEGNA and higher distribution and advertising revenue, including record third-quarter political advertising. Management also highlighted audience progress outside the local station portfolio: NewsNation’s total-day viewership increased 9% year over year, while The CW recorded its most-watched sports broadcast and ranked ninth among English-language ad-supported networks in the quarter.

The company also extended FOX affiliations in 41 markets and CW affiliations across 66 Nexstar and eight TEGNA markets. TEGNA separately extended ABC affiliations in 13 markets.

Recent Insider Transactions

The supplied insider dataset shows 59,279 shares purchased and 32,409 shares sold over the reported six-month period, resulting in net purchases of 26,870 shares across 79 transactions. The latest five transactions with a clearly identified purchase or sale direction are shown below; the data does not establish the motivation behind any transaction.

Risks Investors Need to Watch

• Acquisition-driven comparability: TEGNA generated most of the year-over-year revenue increase, making headline growth less representative of the legacy business alone.
• Leverage and interest expense: Total debt was $11.4 billion, and quarterly net interest expense nearly doubled. Continued debt reduction must compete with dividends, capital spending, and operating investment for cash.
• Synergy execution and litigation: The preliminary injunction has limited Nexstar’s ability to execute expected TEGNA synergies, and the timing of the 2027 trial creates uncertainty around whether those synergies can be recognized in covenant calculations.
• Political advertising cyclicality: Political revenue reached $317 million in an election year and also displaced some non-political advertising. That contribution may not recur at the same level outside comparable election periods.
• Distribution pressure: Higher rates and streaming growth supported distribution revenue, but traditional MVPD subscriber losses and station affiliation changes remained offsets.

Summary

Nexstar’s Q3 2026 results combined TEGNA’s added scale with record political advertising, producing record revenue, higher margins, and substantially greater cash generation. The central issues ahead are whether the company can integrate TEGNA and realize synergies while reducing debt, managing higher interest costs, and navigating the eventual normalization of election-related advertising.