Financial Data and Key Metrics Changes - Nexstar reported third quarter net revenue of $1.2 billion, a decline of 12.3% compared to the prior year, primarily due to a reduction in political advertising [13] - Adjusted EBITDA for the third quarter was $358 million, representing a 29.9% margin, a decrease of $152 million from the previous year [23] - The company generated approximately $10 million in political advertising revenue during the quarter, primarily from statewide elections in Virginia and California [15] Business Line Data and Key Metrics Changes - Distribution revenue for the third quarter was $709 million, down 1.4% year-over-year, reflecting subscriber attrition and a resolution of a non-recurring customer claim [13] - Advertising revenue decreased by $146 million or 23.5% year-over-year, with non-political advertising remaining essentially flat [14] - The CW network delivered record performance with significant viewership growth, particularly in sports programming, which accounted for over 40% of its programming hours [10][18] Market Data and Key Metrics Changes - Time spent watching broadcast TV increased by 20% from August to September, marking the largest month-to-month gain since 2021 [8] - The NFL averaged 18 million viewers per game through Week 6, the highest average since the record 2015 season [9] - NewsNation ranked as the number one basic cable network for year-over-year growth in the third quarter, surpassing MSNBC and CNN in head-to-head telecasts [11] Company Strategy and Development Direction - The company announced a definitive agreement to acquire TEGNA for $6.2 billion, which is expected to enhance Nexstar's scale and geographic reach [4] - The acquisition is projected to be more than 40% accretive to Nexstar's standalone adjusted free cash flow, with anticipated synergies of approximately $300 million [5] - Nexstar aims to strengthen local broadcast journalism and expand competitive broadcasts and digital advertising solutions through the TEGNA acquisition [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition of TEGNA and its potential to create substantial value for shareholders [6] - The company anticipates a decreasing interest rate environment and a reset of distribution contracts at the end of the year, which are expected to drive shareholder value [82] - Management highlighted the importance of enhancing business processes to compete effectively in the advertising market [51] Other Important Information - The company is taking a disciplined approach to capital allocation, conserving cash for the TEGNA acquisition instead of share repurchases [6] - Nexstar's cash balance at the end of the quarter was $236 million, with a debt balance of $6.4 billion [27] Q&A Session Summary Question: Confidence in the deal closing on time - Management indicated that regulatory pieces are falling into place, and they are optimistic about the deal closing as planned [33] Question: Distribution revenue details - Management confirmed that the distribution revenue anomaly was a one-time event and will not affect future quarters [37] Question: Industry consolidation implications - Management believes a strong industry requires strong companies and supports healthy competition [40][41] Question: Outlook for the next political cycle - Management expects substantial political revenue in 2026, with broadcast continuing to dominate political advertising [43] Question: Priorities post-TEGNA acquisition - Management emphasized a focus on acquisitions that are accretive and the monetization of spectrum assets as key priorities [48][50] Question: Ad trends expectations for Q4 - Management does not anticipate significant changes in advertising categories but noted some pressure from previous year comparisons [67] Question: NFL media rights negotiations - Management expressed optimism about potential NFL negotiations, believing it could strengthen local broadcast positions [76][79]

Financial Performance - Third quarter net revenue was $1.20 billion, a decrease of $168 million or 12.3% year-over-year, primarily due to lower political advertising revenue [2]. - Distribution revenue for Q3 was $709 million, down $10 million or 1.4% compared to the prior year, reflecting subscriber attrition and non-recurring customer claims [2]. - Advertising revenue decreased to $476 million, down $146 million or 23.5% year-over-year, mainly due to a $145 million drop in political advertising [2]. - Net income for the third quarter was $65 million, a decline of $115 million or 63.9% compared to the previous year, with a net income margin of 5.4% [2]. - Adjusted EBITDA was $358 million, down $152 million or 29.8% year-over-year, with an adjusted EBITDA margin of 29.9% [12]. - Net revenue for Q3 2025 was $1,198 million, a decrease of 12.3% compared to $1,366 million in Q3 2024 [27]. - Operating income for the nine months ended September 30, 2025, was $607 million, down 28.6% from $851 million in the same period of 2024 [27]. - Net income attributable to Nexstar Media Group, Inc. for Q3 2025 was $70 million, a decline of 62.7% from $187 million in Q3 2024 [27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,128 million, a decrease of 18.1% compared to $1,376 million in the same period of 2024 [31]. - Free Cash Flow for Q3 2025 was $87 million, down 75.7% from $358 million in Q3 2024 [35]. - Total operating expenses for the nine months ended September 30, 2025, were $3,053 million, a slight decrease from $3,069 million in the same period of 2024 [27]. - Interest expense, net for the nine months ended September 30, 2025, was $288 million, down 15.3% from $340 million in the same period of 2024 [27]. - Corporate operating expenses increased to $68 million in Q3 2025 from $53 million in Q3 2024, reflecting a 28.3% rise [27]. Cash Flow and Debt - Net cash provided by operating activities was $117 million, a decrease of $270 million or 69.8% year-over-year [12]. - Adjusted free cash flow for Q3 was $166 million, down $161 million or 49.2% compared to the prior year [12]. - As of September 30, 2025, total debt was $6.36 billion, with a first lien net leverage ratio of 1.73x [16]. - Cash and cash equivalents at the end of Q3 2025 were $236 million, an increase from $181 million at the end of Q3 2024 [29]. Strategic Developments - The company entered into a definitive agreement to acquire TEGNA Inc. for $6.2 billion, expected to be accretive to standalone adjusted free cash flow [8]. - NewsNation was the fastest growing cable network year-over-year through September 2025, while The CW achieved its sixth consecutive quarter of audience growth [8]. Shareholder Information - The weighted average number of common shares outstanding for Q3 2025 was 30,319 thousand, compared to 32,020 thousand in Q3 2024 [27].

Core Insights - Nexstar Media Group will participate in multiple industry conferences, including the Wells Fargo TMT Summit, BofA LevFin Conference, and UBS Global Media and Communications Conference [1] Group 1 - The participation in these conferences indicates Nexstar's active engagement in the media and communications sector [1] - These events provide a platform for Nexstar to showcase its strategies and performance to investors and industry peers [1] - The involvement in high-profile conferences may enhance Nexstar's visibility and networking opportunities within the industry [1]

Core Insights - The U.S. Department of Justice is reviewing Nexstar Media's $3.54 billion acquisition of Tegna, which would significantly enhance Nexstar's position in the local television market [1] Group 1 - The acquisition aims to create a local-TV powerhouse by combining Nexstar Media and Tegna [1] - The Department of Justice has requested additional information and documents related to the deal [1]

Core Points - Nexstar Media Group's Board of Directors declared a quarterly cash dividend of $1.86 per share of its common stock [1] Company Summary - The declared dividend of $1.86 per share indicates the company's commitment to returning value to its shareholders [1]

Core Viewpoint - The controversy surrounding Jimmy Kimmel's comments about the assassination of political activist Charlie Kirk led to a temporary suspension of his show, sparking a national debate on free speech and the role of media in political discourse [1][2][4]. Group 1: Controversy and Suspension - Jimmy Kimmel's remarks about Charlie Kirk's death were perceived as a distortion by some right-wing media, prompting calls for his show to be dropped by TV stations [2][3]. - The show was suspended by Nexstar Media Group Inc., Sinclair Inc., and ABC, with demands for Kimmel to apologize and donate to Kirk's cause [4]. - Kimmel returned to the air on September 23, achieving his highest-ever ratings following the suspension [4]. Group 2: Economic Context - The late-night show format is facing economic challenges due to competition from streaming platforms and changing viewer demographics, leading CBS to cancel "The Late Show with Stephen Colbert" for financial reasons [5]. - Kimmel noted that low ratings for preceding shows have negatively impacted his viewership, alongside the availability of clips on YouTube [5]. Group 3: Future Considerations - Kimmel's contract is set to expire in May, and he has not confirmed whether he will continue hosting "Jimmy Kimmel Live!" after that [3]. - Despite the financial pressures, Kimmel expressed skepticism about reports claiming that shows like his and Colbert's are losing tens of millions of dollars, citing additional revenue sources [6].

Core Points - Nexstar Media Group, Inc. will report its third quarter financial results for 2025 on November 6, 2025 [1] - A conference call and webcast will be held at 10:00 a.m. ET on the same day to review the results [1] - Interested parties can access the conference call by dialing 1-877-407-9208 or 1-201-493-6784, using conference ID 13755787 [1]

Core Viewpoint - The cancellation of "Jimmy Kimmel Live!" by ABC and Disney has created significant ripples in the broadcast industry, with competitors like Nexstar Media Group leveraging the situation amid political unrest [2][3]. Industry Impact - The suspension of "Jimmy Kimmel Live!" on September 17, 2025, was a response to comedian Jimmy Kimmel's controversial comments, leading to alternative programming being aired by other networks [3]. - Nexstar Media Group has chosen to keep the show on pause indefinitely, a decision that may reflect both viewer alienation in swing markets and a strategic move to align with the current administration as it seeks to acquire Tegna, Inc. in 2026 [4][8]. Strategic Moves - Nexstar's founder, Perry Sook, is seen as potentially exploiting the turmoil to advance the company's acquisition bid for Tegna, indicating a strategic alignment with regulatory pressures [5][8]. - The decision to pull politically charged programming could signal Nexstar's willingness to censor content under the guise of serving the "public interest," which aligns with Sook's previous statements on reducing "activist journalism" [8]. Regulatory Environment - The FCC's focus on enforcing the "public interest rule" raises questions about the definition and implications of such regulations, particularly concerning perceived biases in broadcasting [6]. - Concerns about media polarization and censorship are heightened as local affiliates like Nexstar gain more control over national content, potentially shifting power dynamics in the industry [11]. Future Considerations - The ongoing situation with Nexstar and its potential acquisition of Tegna could lead to increased media consolidation, raising anticompetition concerns and impacting the diversity of viewpoints available to the public [8][11]. - The ability of large affiliate owners to censor content may challenge the traditional network-affiliate relationship, affecting the autonomy of national broadcasters [9][11].

Core Viewpoint - The controversy surrounding Jimmy Kimmel's comments has led to significant media and regulatory responses, highlighting tensions between free speech and community standards in broadcasting [5][10]. Group 1: Broadcasting Decisions - Sinclair Broadcast Group and Nexstar Media announced they would resume airing "Jimmy Kimmel Live!" after initially refusing to do so, indicating a shift in their stance following public reaction [1]. - Sinclair stated that their earlier decision to preempt the show was independent of government influence, emphasizing a balance between free speech and community standards [3][5]. - Nexstar expressed its commitment to protecting the First Amendment while ensuring that aired content serves the best interests of the communities [5]. Group 2: Regulatory and Political Reactions - Federal Communications Commission Chairman Brendan Carr criticized Kimmel's statements, suggesting that ABC had an obligation to act, which raised concerns about potential regulatory scrutiny [7][8]. - The White House clarified that the decision to suspend Kimmel's show was made by ABC executives, distancing the administration from the controversy [8]. Group 3: Cultural Impact and Viewer Response - The incident has sparked a broader cultural debate over free speech, with notable figures in Hollywood and organizations like the ACLU condemning the suspension as a threat to First Amendment rights [10]. - Kimmel's return episode attracted over six million viewers, where he addressed the controversy, stating it was never his intention to trivialize the murder of a young man [10].

Core Viewpoint - Nexstar Media Group announced the return of "Jimmy Kimmel Live!" to its owned and partner television stations affiliated with the ABC Television Network, following Disney's recent decision to revoke its affiliation [1] Group 1 - Nexstar Media Group is set to reinstate "Jimmy Kimmel Live!" on its television stations [1] - The announcement comes shortly after Disney's revocation of its affiliation with the show [1]