Nexstar Media Group Inc (NASDAQ:NXST) Misses Q3 2025 Revenue and Earnings Estimates

NEXSTAR MEDIA GROUP INC (NASDAQ:NXST) reported its third-quarter financial results for 2025, delivering a performance that fell short of analyst expectations on the top and bottom lines. The media company's earnings release highlighted a quarter shaped by a significant decline in political advertising revenue, partially offset by stable core operations and progress in its network growth strategies.

Earnings and Revenue Versus Estimates

The company reported third-quarter net revenue of $1.20 billion, which came in below the analyst consensus estimate of approximately $1.22 billion. This represents a 12.3% decrease compared to the same period last year.

On the profitability front, Nexstar reported a non-GAAP earnings per share (EPS) of $2.14 for the quarter. This figure missed the Wall Street estimate of $2.58 per share by a notable margin.

The market's initial reaction to these results was negative, with the stock trading down approximately 2.2% in pre-market activity following the earnings announcement. This suggests investor disappointment with the company's failure to meet quarterly profit and revenue forecasts.

Financial Performance Overview

The third-quarter results were significantly impacted by the cyclical nature of political advertising. The company's total advertising revenue fell 23.5% year-over-year to $476 million, which it attributed primarily to a $145 million decrease in political advertising.

Key financial metrics from the quarter include:

• Net Income: $65 million, down 63.9% from the prior year.
• Adjusted EBITDA: $358 million, down 29.8% from the prior year.
• Adjusted Free Cash Flow: $166 million, down 49.2% from the prior year.

Despite these declines, the company highlighted stability in its core business, with distribution revenue declining only 1.4% to $709 million and non-political advertising revenue described as effectively flat year-over-year.

Strategic Developments and Outlook

A central point of the earnings release was the company's pending acquisition of TEGNA Inc. for $6.2 billion, a transaction Chairman and CEO Perry A. Sook described as "highly accretive." The deal is anticipated to close by the second half of 2026, subject to regulatory approvals.

Operationally, Nexstar reported continued growth at its national networks. NewsNation was again cited as the fastest-growing cable network, while The CW achieved its sixth consecutive quarter of primetime ratings growth and reduced its losses by 24% year-over-year.

Looking forward, the company pointed to several potential catalysts, including upcoming distribution renewals, the closing of the TEGNA acquisition, and the 2026 mid-term election political advertising cycle. Management anticipates these events will help drive future shareholder value. The company's forward-looking statements did not provide a specific quantitative financial outlook to compare against analyst estimates for the fourth quarter or full year. Analysts are currently modeling Q4 2025 revenue of approximately $1.29 billion and full-year 2025 sales of around $5.03 billion.

Capital Allocation and Balance Sheet

During the quarter, Nexstar maintained its commitment to returning capital to shareholders, paying out $56 million in dividends. The company also reduced its total debt, which stood at $6.4 billion as of September 30, 2025, down from $6.5 billion at the end of 2024. The company's first lien net leverage ratio was reported at 1.73x under a newly refined calculation.

For a more detailed breakdown of historical earnings and future analyst estimates for NEXSTAR MEDIA GROUP INC (NASDAQ:NXST), you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.