Sinclair Inc (NASDAQ:SBGI) Q2 2025 Earnings Miss Estimates, Stock Plunges 6% on Weak Revenue and Guidance

Sinclair Inc (NASDAQ:SBGI) reported second-quarter 2025 financial results that fell short of analyst expectations, triggering a sharp negative reaction in after-hours trading. The stock dropped more than 6% following the earnings release, reflecting investor disappointment with both revenue and earnings performance.

Key Financial Results vs. Estimates

• Revenue Miss: The company posted $784 million in Q2 revenue, down 5.4% year-over-year and below the consensus estimate of $810.3 million.
• EPS Shortfall: The GAAP loss of $0.91 per share was slightly better than the estimated loss of $0.91, but still reflected ongoing profitability challenges.
• Weak Guidance: The company’s Q3 revenue outlook of $764 million is 3.6% below analysts' expectations of $792.9 million, signaling continued pressure.

Market Reaction

The immediate after-hours decline suggests investors were anticipating stronger results, particularly given the company’s recent strategic moves, including acquisitions and debt repurchases. The stock had been relatively stable in the weeks leading up to earnings, with minimal movement over the past month, but the post-earnings drop indicates heightened concerns over revenue trends and profitability.

Press Release Highlights

Despite the financial miss, Sinclair highlighted several operational positives:

• Adjusted EBITDA exceeded the midpoint of guidance.
• Core advertising revenue grew by $13 million YoY, in line with expectations.
• Debt reduction: Repurchased $81 million of Sinclair Television Group notes for $77 million.
• Digital expansion: Full acquisition and rebranding of Digital Remedy, a software company specializing in CTV advertising.
• Content growth: Launch of new sports podcasts and record performance in multicast networks.

However, broader financial metrics showed strain:

• Total advertising revenue declined 6% YoY.
• Net loss widened to $64 million, compared to net income of $17 million in Q2 2024.
• Debt levels remained elevated at $4.1 billion.

Outlook vs. Analyst Expectations

Sinclair did not provide full-year guidance in the press release, but its Q3 revenue projection of $764 million is below consensus estimates. Analysts had expected full-year 2025 revenue of $3.26 billion, but the company’s performance so far suggests it may struggle to meet that target.

For more detailed earnings estimates and historical performance, see Sinclair’s earnings estimates page.

Conclusion

While Sinclair continues to execute on strategic initiatives, including digital expansion and debt management, the revenue decline and weak forward guidance have weighed on investor sentiment. The market’s reaction underscores concerns about the company’s ability to stabilize its core advertising business while navigating a challenging macroeconomic environment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.