Sinclair (SBGI) investor relations material

Executive summary

• Q1 2026 revenue reached $807 million, up 4% year-over-year, with Adjusted EBITDA of $126 million, up 13% year-over-year, and net income of $20 million, reversing a $156 million loss in Q1 2025.

• Core advertising revenue grew 4% year-over-year, driven by digital strength and the Digital Remedy acquisition.

• Tennis Channel achieved record viewership and D2C subscriber growth, with March being its most-watched month ever, supported by the Amazon Prime Video launch.

• Deleveraging advanced with $165 million in term loans retired, reducing annual cash interest expense by $12 million.

• Strategic review of the broadcast business is ongoing, with a focus on potential combinations and Ventures separation.

Financial highlights

• Distribution revenue increased 2% year-over-year to $458 million, supported by lower subscriber churn and partner station buy-ins.

• Local Media segment revenue was $701 million, with Adjusted EBITDA of $117 million, reflecting lower programming and production costs.

• Tennis segment revenue was $70 million, with Adjusted EBITDA of $20 million, down year-over-year due to increased investment.

• Net income attributable to the company was $20 million, a turnaround from a $156 million loss in Q1 2025.

• Cash and cash equivalents stood at $844 million as of March 31, 2026, with total liquidity of ~$1.5 billion.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: total revenue expected between $3.4 billion and $3.54 billion, Adjusted EBITDA between $700 million and $740 million.

• Stable core advertising trends anticipated, supported by a strong sports calendar and record mid-term political year.

• Expecting significant political ad spend in key battleground markets and strong demand for World Cup coverage.

• Management expects existing cash, cash flow from operations, and borrowing capacity to be sufficient for debt service, capital expenditures, and working capital needs over the next twelve months.

• Management remains cautious due to macroeconomic headwinds but sees no reason to change guidance ranges at this time.