- Revenue Decline Net revenue fell 13.4% to $1.29 billion, driven by a $233 million drop in political advertising, which reduced ad revenue by 27.6% to $549 million.
- Nonpolitical Ad Growth Nonpolitical advertising revenue grew 4.5%, with gaming, banking, and sports betting as top-performing categories.
- TEGNA Acquisition Expected to close by Q2 2026, projected to create $10.8 billion in total political ad revenue for the 2025-2026 cycle and a 30% loss reduction for The CW in 2026.
- EBITDA Margin Q4 adjusted EBITDA of $433 million achieved a 33.6% margin, with 2026 guidance of $1.95–$2.05 billion from cost savings and operational efficiency.
Revenue Mix and Performance
Distribution revenue increased 0.8% to $720 million, driven by increased rates and growth in vMVPD subscribers. Advertising revenue decreased 27.6% to $549 million, primarily due to a $233 million decrease in political advertising. The company's assets, including The CW and NewsNation, continue to perform well, with The CW exceeding financial expectations in 2025 and NewsNation posting its strongest year ever in total day, primetime, and daytime viewership.
Outlook and Guidance
Nexstar expects to deliver additional cash operating expense savings in 2026 and projects stand-alone adjusted EBITDA of $1.95 billion to $2.05 billion. The company remains confident in its long-term outlook and is committed to unlocking greater value from its assets as its audiences grow. Nexstar expects 2026 revenue growth in the low to mid-single digits due to contract renewals and improved subscriber attrition trends.
Valuation and Dividend Yield
With a P/E Ratio of 69.84 and an EV/EBITDA of 8.81, Nexstar's valuation appears to be pricing in a strong growth outlook. The company's dividend yield is 2.96%, which is relatively attractive. Analysts estimate next year's revenue growth at -6.5%, which may be a concern for investors. However, Nexstar's ROIC is 61.76%, indicating a strong return on invested capital.
Regulatory Update and Acquisition
Nexstar's proposed acquisition of TEGNA is on track, with the company expecting to close the deal by the end of the second quarter of 2026. The company is working to complete information requests and expects the FCC shot clock to expire on June 1. The acquisition is expected to create substantial and immediate value for shareholders while advancing the public interest by strengthening local broadcast journalism and providing an expanded range of competitive broadcast and digital advertising solutions.