Nexstar Media Group (NXST) Q1 2026 earnings summary

Executive summary

• Closed the acquisition of TEGNA on March 19, 2026, after regulatory approvals, expanding reach to 80% of U.S. TV households and positioning for greater competitiveness, though integration is delayed by ongoing litigation and a court-ordered hold separate arrangement.

• Achieved record Q1 2026 net revenue of $1.4 billion, surpassing consensus expectations, with strong adjusted EBITDA of $470 million and adjusted free cash flow of $420 million, including 13 days of TEGNA results.

• Continued growth and investment in The CW and NewsNation, with The CW on track for profitability by Q4 2026 and NewsNation recognized as the fastest-growing ad-supported cable network.

• Returned $56 million to shareholders via dividends and repaid $182 million in debt through April 30, 2026.

Financial highlights

• Q1 2026 net revenue rose 13.1% year-over-year to $1.4 billion, driven by $106 million from TEGNA and higher legacy advertising and distribution revenue.

• Distribution revenue increased 9.8% to $837 million; advertising revenue grew 19.1% to $548 million, with political advertising up due to the election year.

• Net income attributable to shareholders increased to $164 million from $108 million year-over-year, aided by a $47 million tax benefit and offset by $42 million in one-time TEGNA transaction expenses.

• Adjusted EBITDA margin was 33.7%, up from $381 million in Q1 2025 to $470 million; TEGNA contributed $31 million.

• Adjusted free cash flow was $420 million, up from $348 million year-over-year; CapEx was $22 million, down from $35 million.

Outlook and guidance

• Forward-looking guidance is limited due to litigation and the hold separate order; CapEx is projected at $45 million for Q2, with cash taxes estimated at $152 million.

• Non-political advertising expected to decline mid-single digits in Q2 due to a weaker ad environment.

• The CW remains on track for Q4 profitability and a >30% improvement in full-year losses.

• Management anticipates continued compliance with debt covenants and sufficient liquidity for at least the next 12 months.

• Political and Olympic cycles expected to boost advertising revenue in 2026.