TEGNA Inc. (NYSE:TGNA) Beats Q2 2025 Revenue and EPS Estimates Amid Strategic Investments and Cost Discipline

TEGNA Inc. (NYSE:TGNA) Reports Q2 2025 Earnings: Revenue and EPS Beat Estimates Amid Strategic Investments

TEGNA Inc. (NYSE:TGNA) released its second-quarter 2025 financial results, posting revenue of $675 million, a 5% year-over-year decline but slightly above analyst estimates of $671.1 million. Non-GAAP earnings per share (EPS) came in at $0.44, surpassing expectations of $0.38. The company reaffirmed its 2024/2025 two-year adjusted free cash flow guidance of $900 million to $1.1 billion, signaling confidence in its financial stability despite macroeconomic pressures.

Key Financial Highlights

• Revenue Performance: Total revenue declined 5% YoY to $675 million, in line with company guidance. The drop was primarily driven by lower political advertising revenue—consistent with cyclical even-to-odd year comparisons—and softer advertising and marketing services (AMS) revenue, which fell 4%. Distribution revenue remained flat at $370 million, as subscriber declines were offset by contractual rate increases.
• Cost Management: GAAP operating expenses decreased 3% to $553 million, reflecting cost-cutting initiatives in compensation and outside services. Adjusted EBITDA declined 14% to $151 million, impacted by reduced political and AMS revenue.
• Profitability: GAAP net income attributable to TEGNA was $68 million ($0.42 per diluted share), while non-GAAP net income stood at $71 million ($0.44 per diluted share).
• Cash Flow & Debt Management: Adjusted free cash flow was $96 million, with $20 million returned to shareholders via dividends. The company redeemed $250 million in senior notes due 2026, reducing net leverage to 2.8x.

Market Reaction

Following the earnings release, TGNA shares saw a pre-market gain of ~0.86%, suggesting investor approval of the earnings beat and reaffirmed cash flow guidance. However, the stock has been under pressure over the past month, declining 5.5%, likely due to broader market sentiment and concerns around cyclical advertising weakness.

Business Updates & Strategic Focus

• Content Expansion: TEGNA added over 100 hours of daily local programming across 50+ markets, reinforcing its push toward becoming a 24/7 digital news organization.
• FOX Renewal: Secured a multi-year affiliation renewal with FOX Corporation for six markets, covering ~7% of TEGNA households.
• Leadership Transition: COO Lynn Beall will retire on August 31, 2025, after 35 years in the industry.

Outlook vs. Analyst Estimates

For Q3 2025, TEGNA expects:

• Total GAAP revenue to decline 18-20% YoY, reflecting the absence of political and Olympic ad spend seen in the prior-year period.
• Non-GAAP operating expenses to decrease 2-3%, aligning with cost discipline.

Analysts had projected Q3 revenue of $691.7 million and full-year 2025 revenue of $2.804 billion. While the Q3 outlook appears conservative, the company’s reaffirmed two-year free cash flow target suggests underlying operational resilience.

Conclusion

TEGNA’s Q2 results demonstrate disciplined cost management and strategic investments in local news, offsetting cyclical revenue headwinds. The EPS and revenue beats, coupled with debt reduction, may reassure investors despite near-term advertising softness.

For detailed earnings estimates and historical performance, visit TEGNA’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.