The E.W. Scripps Company (NASDAQ:SSP) reported financial results for the fourth quarter of 2025 that presented a mixed picture, with a top-line beat overshadowed by a significant bottom-line loss and a challenging year-over-year comparison. The market's immediate reaction was negative, with the stock trading down in after-hours activity following the report.
Earnings Snapshot: A Beat on Revenue, A Miss on Profit
For the quarter, the media company posted revenue of $560.3 million, which exceeded analyst consensus estimates of approximately $557.6 million. However, this figure represents a steep 23.1% decline from the $728.4 million reported in the fourth quarter of 2024, a period that benefited from a presidential election year's political advertising surge.
The performance on profitability was more stark. Scripps reported a GAAP loss of $44.9 million, or $0.51 per share. This was significantly wider than the analyst estimate for a non-GAAP loss of $0.30 per share. The company's results were impacted by several one-time items, including a non-cash charge on held-for-sale Court TV assets and restructuring costs.
Market Reaction and Segment Performance
The negative after-market price movement suggests investors are focusing on the substantial year-over-year profit decline and the ongoing challenges in a non-election year cycle. The performance highlights the company's heavy reliance on political advertising, which creates significant revenue volatility between even and odd-numbered years.
A deeper look at the segment results reveals the divergent paths of Scripps' two main businesses:
- Local Media: Revenue fell 30% year-over-year to $360 million, driven almost entirely by the expected collapse in political advertising, which dropped from $174 million in Q4 2024 to just $9 million. A bright spot was a 12% increase in core advertising revenue.
- Scripps Networks: This segment demonstrated resilience. Despite a 7.7% revenue decline to $199 million, segment profit actually increased to $63.5 million from $60.7 million a year ago, reflecting disciplined cost management and a nearly 700-basis-point margin improvement for the full year.
Strategic Initiatives and Forward Outlook
Management emphasized a newly launched transformation plan aimed at generating $125 to $150 million in annualized enterprise EBITDA growth by 2028 through cost savings and technology-driven revenue initiatives. Near-term catalysts were also highlighted:
- The upcoming 2026 midterm election cycle, where Scripps is positioned in several key battleground states.
- Ongoing station transactions designed to optimize its local portfolio and pay down debt.
- The planned re-acquisition of 23 ION-affiliated stations, expected to be immediately accretive.
The company provided guidance for the first quarter of 2026, anticipating low- to mid-single-digit percent revenue growth in Local Media, offset by a high-single-digit percent decline in Scripps Networks revenue. For the full year 2026, Scripps expects interest expense of $180-$190 million and capital expenditures of $60-$70 million.
Financial Position and Considerations
Scripps continues to carry a substantial debt load, with total debt reported at $2.6 billion against cash of $27.9 million at year-end. The company is also accruing unpaid dividends on preferred shares held by Berkshire Hathaway, which currently total $117 million and restrict the company from paying common stock dividends or repurchases.
Conclusion
Scripps' fourth-quarter results underscore the cyclical nature of its broadcast business. While the company successfully managed costs in its networks division and beat revenue expectations, the dramatic swing from profit to loss in an off-election year and a high debt burden appear to be weighing on investor sentiment. The market's reaction indicates a focus on these fundamental challenges rather than the modest revenue beat. The success of its multi-year transformation plan and a strong political advertising cycle in 2026 will be critical to improving its financial trajectory.
For a detailed view of historical earnings and future analyst estimates for Scripps, you can review the data here.
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