E.W. Scripps (NASDAQ:SSP) Reports Q3 2025 Revenue In Line, But EPS Miss and Weak Guidance Sink Shares

The E.W. Scripps Company (NASDAQ:SSP) reported its third-quarter financial results for 2025, delivering a performance that met Wall Street's top-line expectations but revealed significant challenges beneath the surface. The market's immediate reaction has been negative, reflecting concerns over the company's substantial per-share loss and a sharp decline in year-over-year revenue.

Earnings and Revenue Versus Estimates

Scripps reported revenue of $526 million for the quarter, a figure that was essentially in line with analyst estimates of approximately $528.8 million. However, this represented a steep 18.6% decline compared to the same period last year. The more significant point of concern for investors was the company's bottom line.

• Reported Revenue: $526 million
• Estimated Revenue: $528.8 million
• Variance: -0.5% (Essentially In Line)
• Reported EPS (Non-GAAP): -$0.40 per share
• Estimated EPS (Non-GAAP): -$0.32 per share
• Variance: -25% (Missed)

The company's GAAP loss of $0.55 per share was substantially wider than analysts had anticipated. This earnings miss appears to be the primary driver behind the negative investor sentiment following the report.

Market Reaction

The market's disapproval was evident in the stock's price action. In after-hours trading following the release, shares of Scripps declined. This negative movement extends a longer-term trend of weakness for the stock, which has seen declines over the past week, two weeks, and month. The immediate sell-off suggests that investors are focusing more on the earnings miss and the year-over-year revenue contraction than on the company meeting its sales target.

Press Release Highlights and Segment Performance

The earnings release provided a detailed look at the mixed performance across Scripps' business segments and the strategic actions management is taking.

Local Media Division: This segment faced a difficult comparison to the prior year, which was a political election cycle. Revenue fell 27% to $325 million, driven by a predictable and dramatic drop in political advertising, which was $5.1 million compared to $125 million in Q3 2024. A positive note was a 1.8% increase in core advertising revenue, indicating underlying strength in the local business outside of political cycles. Segment profit was $52.8 million, down from $161 million a year ago.

Scripps Networks Division: The national networks segment was a relative bright spot. While revenue was nearly flat, declining just 0.4% to $201 million, the division demonstrated impressive cost discipline. A 7.5% reduction in expenses helped propel segment profit up 27% to $53.3 million. The division also saw robust growth in connected TV revenue, which increased by 41%.

Strategic and Financial Initiatives: Management highlighted several key actions aimed at strengthening the balance sheet:

• The sale of two television stations for total proceeds of $123 million.
• A significant debt refinancing in August, issuing $750 million in new senior secured notes.
• A reduction in the company's net leverage ratio to 4.6x, down from 4.9x at the start of the year.

Looking Ahead

Scripps provided guidance for the fourth quarter of 2025, which anticipates continued headwinds. The company expects Local Media revenue to be down approximately 30% and Scripps Networks revenue to be down in the low double-digit percent range. This outlook is notably more pessimistic than current analyst estimates for Q4, which project a revenue decline of about 20.9%. The company's guidance suggests the challenges seen in Q3 are expected to persist, likely contributing to the negative market reaction.

For a more detailed view of The E.W. Scripps Company's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be taken as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.