NXST · Nexstar Media Group, Inc.

Nexstar Media Group delivered record first quarter 2026 results, with net revenue surging 13.1% to $1.396 billion, propelled by the March 19 closure of the TEGNA acquisition contributing $106 million in revenue and $31 million in Adjusted EBITDA, alongside legacy business growth. Distribution revenue rose 9.8% to $837 million, boosted by $54 million from TEGNA, higher rates, vMVPD subscriber growth, and new CW affiliations, tempered by MVPD attrition. Advertising revenue jumped 19.1% to $548 million, including $51 million from TEGNA and $35 million political ad increase to $41 million amid the election year, with non-political legacy ads flat as digital gains offset TV declines. Net income climbed 64.9% to $160 million (11.5% margin), aided by TEGNA operating income, a $47 million tax benefit from deferred tax revaluation, and political revenue, despite $42 million one-time TEGNA costs and higher interest. Adjusted EBITDA grew 23.4% to $470 million (33.7% margin), reflecting TEGNA contributions, legacy revenue gains, and lower CW broadcast rights amortization. CEO Perry Sook highlighted operational excellence and the TEGNA deal's role in competing with Big Tech while preserving local journalism. NewsNation solidified its fastest-growing status, ranking 35th in primetime cable viewership. Balance sheet shows total debt at $12.2 billion post-acquisition, with pro forma first lien leverage at 2.94x against a 4.75x covenant (temporarily increased). Cash flow from operations dipped to $289 million due to working capital timing and lower TVFN distributions, but adjusted free cash flow rose 20.7% to $420 million. Capital allocation included $56 million dividends, $28 million debt repayment, and the $3.657 billion TEGNA purchase. Ongoing legal challenges to the acquisition pose risks including potential divestitures or integration delays, as noted in management commentary.