Group 1 - Nexstar Media Group (NXST.US) announced a cash acquisition of Tegna (TGNA.US) at $22 per share, representing a 31% premium over Tegna's 30-day average stock price as of August 8 [1] - The total value of the transaction is $6.2 billion, which includes Tegna's debt and estimated expenses [1] - The acquisition is expected to be completed in the second half of 2026 [1] Group 2 - Nexstar's CEO, Perry Sook, stated that initiatives promoted by the Trump administration have provided local broadcasters with opportunities to expand influence and compete more effectively against large tech companies and traditional media [1] - The company believes that acquiring Tegna is the best option to capitalize on these opportunities [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Summary: TEGNA Inc. (TGNA) - TEGNA Inc. currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - Over the past week, TGNA shares have increased by 34.03%, significantly outperforming the Zacks Broadcast Radio and Television industry, which rose by 4.01% [5] - In a longer time frame, TGNA's shares have risen 22.73% over the past month, compared to the industry's 2.46% [5] - Over the last three months, TGNA shares have increased by 23.32%, and over the past year, they have risen by 49.56%, while the S&P 500 has only moved 9.33% and 17.71%, respectively [6] - The average 20-day trading volume for TGNA is 2,762,438 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, one earnings estimate for TGNA has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $1.61 to $1.66 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period, indicating positive earnings momentum [9] Conclusion - Considering the positive price trends and earnings outlook, TEGNA Inc. is positioned as a solid momentum pick with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]

Core Points - TEGNA Inc. has announced that its station KING in Seattle has received the Overall Excellence award in Large Market Television for the fourth consecutive year at the 2025 National Edward R. Murrow Awards [1][2] - The Murrow Awards are prestigious honors in broadcast journalism, recognizing outstanding achievements that uphold ethical standards and demonstrate the impact of journalism on communities [2] TEGNA Stations Awarded - KING in Seattle received multiple awards including Overall Excellence for "Stand for Truth," which emphasizes investigative journalism and community service [4] - KING also won awards for Excellence in Diversity, Equity and Inclusion for "The Buffalo Hunt," showcasing Indigenous culture and healing [5] - Additionally, KING was recognized for Sports Reporting with "Bumblebee's Legacy," highlighting mentorship and empowerment in an underserved community [6] - KARE in Minneapolis received the award for Excellence in Video for "Leave the Light On," focusing on the restoration of a historic lighthouse [3] - KUSA in Denver was awarded for a news series "Debt in the Dark," which uncovered unethical medical billing practices [7] - WFAA in Dallas won for Excellence in Writing with "I Need a Last Line," demonstrating effective storytelling across various formats [8] Company Overview - TEGNA Inc. operates 64 television stations across 51 U.S. markets, reaching over 100 million people monthly through various platforms [9]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents TEGNA Inc.'s unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2025, along with detailed notes on accounting policies, assets, liabilities, and other financial matters [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents TEGNA Inc.'s unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2025, including balance sheets, income statements, comprehensive income statements, cash flow statements, and statements of equity, along with detailed notes on accounting policies, assets, liabilities, and other financial matters [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of TEGNA's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands of dollars): | Metric | June 30, 2025 | Dec. 31, 2024 | | :-------------------------------- | :------------ | :------------ | | **ASSETS** | | | | Total current assets | $1,391,357 | $1,360,412 | | Net property and equipment | $425,003 | $444,319 | | Total intangible and other assets | $5,490,351 | $5,521,788 | | **Total assets** | **$7,306,711** | **$7,326,519** | | **LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY** | | | | Total current liabilities | $944,575 | $466,280 | | Total noncurrent liabilities | $3,268,813 | $3,835,208 | | **Total liabilities** | **$4,213,388** | **$4,301,488** | | Redeemable noncontrolling interest | $— | $20,317 | | Total equity | $3,093,323 | $3,004,714 | | **Total liabilities, redeemable noncontrolling interest and equity** | **$7,306,711** | **$7,326,519** | - Total assets decreased slightly from **$7,326.5 million** at December 31, 2024, to **$7,306.7 million** at June 30, 2025. Total liabilities decreased from **$4,301.5 million** to **$4,213.4 million**, while total equity increased from **$3,004.7 million** to **$3,093.3 million**[7](index=7&type=chunk)[9](index=9&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This section details TEGNA's financial performance over specific periods, including revenues, expenses, and net income Consolidated Statements of Income (in thousands of dollars, except per share amounts): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Revenues | $675,045 | $710,363 | $1,355,094 | $1,424,615 | | Operating income | $122,414 | $141,860 | $231,437 | $279,420 | | Income before income taxes | $88,166 | $103,236 | $161,634 | $353,759 | | Net income attributable to TEGNA Inc. | $67,922 | $82,144 | $126,593 | $271,704 | | Basic EPS | $0.42 | $0.48 | $0.78 | $1.56 | | Diluted EPS | $0.42 | $0.48 | $0.77 | $1.55 | - Revenues decreased by **5%** for both the quarter and six months ended June 30, 2025, compared to the same periods in 2024. Net income attributable to TEGNA Inc. decreased by **17%** for the quarter and **53%** for the six months, primarily due to lower revenues and the absence of a significant gain on investment sales recognized in 2024[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents TEGNA's comprehensive income, reflecting net income and other comprehensive income items not included in net income Consolidated Statements of Comprehensive Income (in thousands of dollars): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net Income | $67,902 | $82,029 | $126,209 | $271,291 | | Other comprehensive income, net of tax | $1,089 | $1,110 | $2,112 | $2,221 | | Comprehensive income attributable to TEGNA Inc. | $69,011 | $83,254 | $128,705 | $273,925 | - Comprehensive income attributable to TEGNA Inc. decreased by **17%** for the quarter and **53%** for the six months ended June 30, 2025, reflecting the trends in net income[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines TEGNA's cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows (in thousands of dollars): | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash flow from operating activities | $159,491 | $225,159 | | Net cash flow (used for) provided by investing activities | $(14,272) | $71,630 | | Net cash flow used for financing activities | $(81,893) | $(212,096) | | Increase in cash and cash equivalents | $63,326 | $84,693 | | Balance of cash and cash equivalents at end of period | $756,540 | $445,729 | - Net cash flow from operating activities decreased by **$65.7 million**, primarily due to lower operating income and increased income tax payments[16](index=16&type=chunk) - Investing activities shifted from providing **$71.6 million** in 2024 to using **$14.3 million** in 2025, mainly due to the absence of a large gain on investment sales from 2024[16](index=16&type=chunk)[106](index=106&type=chunk) - Cash used in financing activities significantly decreased due to no common stock repurchases in 2025, partially offset by the repurchase of noncontrolling interest in Premion[16](index=16&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) [Consolidated Statements of Equity and Redeemable Noncontrolling Interest](index=8&type=section&id=Consolidated%20Statements%20of%20Equity%20and%20Redeemable%20Noncontrolling%20Interest) This section details changes in TEGNA's equity and redeemable noncontrolling interest over time, reflecting net income, share repurchases, and other equity transactions Consolidated Statements of Equity and Redeemable Noncontrolling Interest (in thousands of dollars): | Metric | Balance as of Dec. 31, 2024 | Balance as of June 30, 2025 | | :------------------------------------ | :-------------------------- | :-------------------------- | | Redeemable noncontrolling interest | $20,317 | $— | | Common stock | $324,419 | $324,419 | | Additional paid-in capital | $27,941 | $27,941 | | Retained earnings | $8,549,717 | $8,574,627 | | Accumulated other comprehensive loss | $(106,644) | $(104,532) | | Treasury stock | $(5,790,719) | $(5,729,132) | | Total Equity | $3,004,714 | $3,093,323 | - Total equity increased from **$3,004.7 million** at December 31, 2024, to **$3,093.3 million** at June 30, 2025. This increase was primarily driven by net income and a decrease in treasury stock, while redeemable noncontrolling interest was fully repurchased[19](index=19&type=chunk)[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [NOTE 1 – Basis of presentation and accounting policies](index=10&type=section&id=NOTE%201%20%E2%80%93%20Basis%20of%20presentation%20and%20accounting%20policies) This note outlines TEGNA's operational structure, key accounting policies, and primary revenue sources - TEGNA operates one reportable segment, primarily consisting of **64 television stations** and **two radio stations** in **51 markets**. The Chief Executive Officer (CEO) is the chief operating decision maker (CODM), assessing performance using Net income and Adjusted EBITDA[23](index=23&type=chunk) - The company adopted new FASB guidance on segment reporting in Q1 2025, requiring quarterly disclosure of significant segment expense items provided to the CODM[26](index=26&type=chunk) - Revenue sources include distribution revenue (fees from providers to carry signals), advertising & marketing services (AMS) revenues (local/national non-political TV, digital marketing including Premion), political advertising revenues (cyclical, even-year driven), and other services (programming production, tower rentals)[33](index=33&type=chunk) Revenue by Source (in thousands): | Revenue Category | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Distribution | $369,577 | $371,204 | $749,133 | $751,707 | | Advertising & Marketing Services | $287,856 | $298,529 | $574,253 | $594,638 | | Political | $8,192 | $31,643 | $11,808 | $59,471 | | Other | $9,420 | $8,987 | $19,900 | $18,799 | | **Total revenues** | **$675,045** | **$710,363** | **$1,355,094** | **$1,424,615** | [NOTE 2 – Goodwill and other intangible assets](index=12&type=section&id=NOTE%202%20%E2%80%93%20Goodwill%20and%20other%20intangible%20assets) This note provides details on TEGNA's goodwill and other intangible assets, including their composition and changes over time Goodwill and Intangible Assets (in thousands): | Asset Type | June 30, 2025 | Dec. 31, 2024 | | :------------------------------------------ | :------------ | :------------ | | Goodwill | $3,015,944 | $3,015,944 | | Indefinite-lived intangibles (FCC licenses) | $2,124,106 | $2,124,731 | | Amortizable intangible assets (net) | $133,258 | $141,623 | | **Total indefinite-lived and amortizable intangible assets** | **$2,291,462** | **$2,309,772** | - Goodwill remained unchanged. Indefinite-lived intangible assets (FCC broadcast licenses) slightly decreased. Amortizable intangible assets, primarily network affiliation agreements and acquired technology, are amortized on a straight-line basis[35](index=35&type=chunk) - A final earnout payment of **$6.4 million** and **$1.7 million** in purchase price holdbacks were paid in Q2 2025 related to the Octillion Media acquisition, with no remaining earnouts or holdbacks[36](index=36&type=chunk) [NOTE 3 – Investments and other assets](index=12&type=section&id=NOTE%203%20%E2%80%93%20Investments%20and%20other%20assets) This note details TEGNA's various investments and other non-current assets Investments and Other Assets (in thousands): | Asset Type | June 30, 2025 | Dec. 31, 2024 | | :-------------------------- | :------------ | :------------ | | Cash value life insurance | $52,460 | $51,860 | | Equity method investments | $16,469 | $16,280 | | Other equity investments | $30,904 | $29,020 | | Deferred financing costs | $5,389 | $6,137 | | Prepaid assets | $3,963 | $5,960 | | Other long-term assets | $21,188 | $23,280 | | **Total** | **$130,373** | **$132,537** | - Total investments and other assets slightly decreased from **$132.5 million** to **$130.4 million**. Cash value life insurance increased, while deferred financing costs and prepaid assets decreased[37](index=37&type=chunk) [NOTE 4 – Long-term debt](index=13&type=section&id=NOTE%204%20%E2%80%93%20Long-term%20debt) This note provides information on TEGNA's long-term debt obligations, including principal amounts, issuance costs, and current portion Long-term Debt (in thousands): | Debt Type | June 30, 2025 | Dec. 31, 2024 | | :---------------------------------------------------- | :------------ | :------------ | | Total outstanding principal | $3,090,000 | $3,090,000 | | Debt issuance costs | $(14,750) | $(17,285) | | Unamortized discounts | $3,062 | $3,736 | | Total debt, net | $3,078,312 | $3,076,451 | | Less current portion, net | $(548,848) | $— | | **Total long-term debt, net** | **$2,529,464** | **$3,076,451** | - Total outstanding principal remained at **$3.09 billion**. A current portion of long-term debt of **$548.8 million** was recognized as of June 30, 2025, reflecting the upcoming maturity of unsecured notes due March 2026[42](index=42&type=chunk) - As of June 30, 2025, the company had **$756.5 million** in cash and cash equivalents and **$738.2 million** in unused borrowing capacity under its **$750 million** revolving credit facility. The leverage ratio was **2.97x**, well below the maximum permitted **4.50x**[42](index=42&type=chunk)[103](index=103&type=chunk) [NOTE 5 – Retirement plans](index=13&type=section&id=NOTE%205%20%E2%80%93%20Retirement%20plans) This note outlines TEGNA's pension obligations and related costs, including contributions and benefit payments - Total net pension obligations as of June 30, 2025, were **$70.5 million**, with **$9.7 million** recorded as a current obligation[43](index=43&type=chunk) Pension Costs (Income) (in thousands): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Interest cost on benefit obligation | $5,463 | $5,697 | $10,888 | $11,372 | | Expected return on plan assets | $(5,935) | $(5,533) | $(10,360) | $(11,033) | | Amortization of prior service (credit) cost | $(67) | $20 | $(117) | $45 | | Amortization of actuarial loss | $1,530 | $1,475 | $2,955 | $2,950 | | **Expense for company-sponsored retirement plans** | **$991** | **$1,659** | **$3,366** | **$3,334** | - No cash contributions were made to the TEGNA Retirement Plan (TRP) in the first six months of 2025, and none are expected for the remainder of 2025. Benefit payments to SERP participants were **$1.8 million** in the first six months of 2025[45](index=45&type=chunk) [NOTE 6 – Accumulated other comprehensive loss](index=14&type=section&id=NOTE%206%20%E2%80%93%20Accumulated%20other%20comprehensive%20loss) This note details the components of TEGNA's accumulated other comprehensive loss and changes during the period Accumulated Other Comprehensive Loss (AOCL) (in thousands): | Component | Balance as of Dec. 31, 2024 | Balance as of June 30, 2025 | | :-------------------------- | :-------------------------- | :-------------------------- | | Retirement Plans | $(107,176) | $(105,064) | | Foreign Currency | $532 | $532 | | **Total AOCL** | **$(106,644)** | **$(104,532)** | - AOCL decreased from **$(106.6) million** at December 31, 2024, to **$(104.5) million** at June 30, 2025, primarily due to reclassifications from retirement plans[46](index=46&type=chunk) [NOTE 7 – Earnings per share](index=15&type=section&id=NOTE%207%20%E2%80%93%20Earnings%20per%20share) This note provides a breakdown of TEGNA's basic and diluted earnings per share calculations Earnings Per Share (in thousands, except per share amounts): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Earnings available to common shareholders | $67,765 | $81,648 | $125,681 | $270,548 | | Weighted average common shares outstanding - basic | 161,472 | 169,512 | 161,162 | 173,668 | | Weighted average common shares outstanding - diluted | 162,667 | 169,880 | 162,294 | 174,158 | | Net income per share - basic | $0.42 | $0.48 | $0.78 | $1.56 | | Net income per share - diluted | $0.42 | $0.48 | $0.77 | $1.55 | - Diluted EPS decreased from **$0.48** to **$0.42** for the quarter and from **$1.55** to **$0.77** for the six months ended June 30, 2025, compared to 2024. The weighted average number of diluted common shares outstanding decreased due to share repurchases[47](index=47&type=chunk)[85](index=85&type=chunk) [NOTE 8 – Fair value measurement](index=15&type=section&id=NOTE%208%20%E2%80%93%20Fair%20value%20measurement) This note describes how TEGNA measures the fair value of its financial instruments, particularly total debt - The fair value of total debt, based on Level 2 inputs (bid and ask quotes), was **$3.03 billion** on June 30, 2025, compared to **$2.98 billion** on December 31, 2024[49](index=49&type=chunk) [NOTE 9 – Share repurchase program](index=15&type=section&id=NOTE%209%20%E2%80%93%20Share%20repurchase%20program) This note provides details on TEGNA's share repurchase activities and the remaining authorization under its program - No share repurchases were made under the **$650.0 million** authorized program in the first half of 2025. As of June 30, 2025, **$375.2 million** remained available for repurchase under this program, which expires on December 31, 2025[52](index=52&type=chunk)[98](index=98&type=chunk) - In the first six months of 2024, **10.9 million shares** were repurchased for an aggregate cost of **$155.8 million** under the program[52](index=52&type=chunk) [NOTE 10 – Other matters](index=16&type=section&id=NOTE%2010%20%E2%80%93%20Other%20matters) This note addresses various other significant matters, including legal proceedings and related-party transactions - TEGNA is a defendant in ongoing antitrust class action lawsuits (Advertising Cases) consolidated in the U.S. District Court for the Northern District of Illinois. The company denies wrongdoing and intends to vigorously defend against the claims[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - Four co-defendants (CBS Corp, Fox Corp, certain Cox entities, and ShareBuilders, Inc.) settled with plaintiffs for a collective **$48 million** in December 2023, without admitting liability[56](index=56&type=chunk) - Expenses incurred from commercial agreements with MadHive, a related party, decreased significantly from **$37.3 million** in the first six months of 2024 to **$0.3 million** in the first six months of 2025, following the expiration of one agreement[59](index=59&type=chunk) [Note 11 - Subsequent events](index=17&type=section&id=Note%2011%20-%20Subsequent%20events) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - On July 2, 2025, TEGNA repaid **$250 million** of its **$550 million** unsecured notes due March 2026 using available cash[60](index=60&type=chunk) - The 'One Big Beautiful Bill Act,' enacted July 4, 2025, permanently reinstates **100% bonus depreciation** and allows immediate expensing of U.S.-based R&D. While not reflected in Q2 2025 financials, a preliminary assessment indicates no material impact for the quarter[61](index=61&type=chunk)[62](index=62&type=chunk) - The Act also phases out the ability to transfer clean energy tax credits, which TEGNA has historically purchased, with benefits expected to end by 2028[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of TEGNA's financial condition and results of operations for the quarter and six months ended June 30, 2025, compared to the prior year, covering revenue drivers, expense fluctuations, operating income, non-operating items, income taxes, and liquidity, including a reconciliation of non-GAAP measures [Company Overview](index=18&type=section&id=Company%20Overview) This section provides a high-level overview of TEGNA's business, including its operations, market reach, and primary revenue streams - TEGNA operates **64 television stations** and **two radio stations** in **51 U.S. markets**, reaching over **100 million people** monthly across various platforms. It is the largest owner of top four network affiliates in the top 25 markets, covering approximately **39%** of U.S. television households[65](index=65&type=chunk) - The company produces over **1,700 hours** of local news content weekly and owns multicast networks True Crime Network and Quest. Revenue is primarily derived from distribution, advertising & marketing services (including Premion), political advertising, and other services[65](index=65&type=chunk)[66](index=66&type=chunk) [Consolidated Results from Operations](index=18&type=section&id=Consolidated%20Results%20from%20Operations) This section summarizes TEGNA's key financial performance metrics, including revenues, operating income, net income, and diluted EPS, for the current and prior periods Consolidated Results of Operations (in thousands, except per share amounts): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change (YoY) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Revenues | $675,045 | $710,363 | (5%) | $1,355,094 | $1,424,615 | (5%) | | Total Operating expenses | $552,631 | $568,503 | (3%) | $1,123,657 | $1,145,195 | (2%) | | Operating income | $122,414 | $141,860 | (14%) | $231,437 | $279,420 | (17%) | | Net income attributable to TEGNA Inc. | $67,922 | $82,144 | (17%) | $126,593 | $271,704 | (53%) | | Diluted EPS | $0.42 | $0.48 | (13%) | $0.77 | $1.55 | (50%) | - Total revenues decreased by **5%** for both the quarter and six months ended June 30, 2025, compared to 2024. Operating income decreased by **14%** for the quarter and **17%** for the six months. Net income attributable to TEGNA Inc. saw a significant decline of **17%** for the quarter and **53%** for the six months, largely influenced by the absence of a large gain on investment sales in 2024[68](index=68&type=chunk) [Revenues](index=20&type=section&id=Revenues) This section analyzes the changes in TEGNA's total revenues and their contributing factors across different revenue streams - Total revenues decreased by **$35.3 million (5%)** in Q2 2025 and **$69.5 million (5%)** in the first six months of 2025 compared to 2024[72](index=72&type=chunk) - The decline was primarily driven by a **$23.5 million (74%)** decrease in political revenue in Q2 and a **$47.7 million (80%)** decrease for the six months, consistent with the cyclical even-to-odd year comparison[72](index=72&type=chunk) - Advertising & Marketing Services (AMS) revenue decreased by **$10.7 million (4%)** in Q2 and **$20.4 million (3%)** for the six months, attributed to macroeconomic challenges and the Super Bowl airing on FOX (smallest affiliate group) in 2025 versus CBS in 2024. This was partially offset by local sports rights advertising growth[72](index=72&type=chunk) - Distribution revenue slightly decreased by **$1.6 million (0%)** in Q2 and **$2.6 million (0%)** for the six months, due to subscriber declines, partially offset by contractual rate increases and distributor renewals[72](index=72&type=chunk) [Cost of revenues](index=20&type=section&id=Cost%20of%20revenues) This section examines the fluctuations in TEGNA's cost of revenues and the underlying drivers for these changes - Cost of revenues decreased by **$9.1 million (2%)** in Q2 2025 but increased by **$1.3 million (0%)** in the first six months of 2025 compared to 2024[73](index=73&type=chunk) - Q2 decrease was due to a **$9.1 million** decline in employee compensation (cost-cutting) and a **$3.6 million** decrease in digital ad serving fees, partially offset by a **$3.4 million** increase in sports rights programming costs[73](index=73&type=chunk) - Six-month increase was primarily due to a **$17.8 million** increase in programming costs, partially offset by a **$16.3 million** decline in employee compensation[73](index=73&type=chunk) [Business units - Selling, general and administrative expenses](index=20&type=section&id=Business%20units%20-%20Selling,%20general%20and%20administrative%20expenses) This section analyzes the changes in selling, general, and administrative expenses at the business unit level - Business unit SG&A expenses slightly increased by **$0.1 million (0%)** in Q2 2025 but decreased by **$6.7 million (3%)** in the first six months of 2025 compared to 2024[74](index=74&type=chunk) - Q2 increase was due to a **$3.4 million** increase in advertising costs and a **$1.4 million** increase in professional services, offset by a **$2.8 million** decrease in employee compensation and a **$1.4 million** decline in bad debt expense[74](index=74&type=chunk) - Six-month decrease was primarily due to declines of **$9.6 million** in employee compensation and **$1.7 million** in professional service costs (cost-cutting), and a **$1.5 million** decline in bad debt expense, partially offset by a **$5.9 million** increase in advertising costs[74](index=74&type=chunk) [Corporate - General and administrative expenses](index=20&type=section&id=Corporate%20-%20General%20and%20administrative%20expenses) This section examines the changes in corporate-level general and administrative expenses - Corporate G&A expenses decreased by **$2.6 million (20%)** in Q2 2025 and **$7.2 million (26%)** in the first six months of 2025 compared to 2024[76](index=76&type=chunk) - The Q2 decrease was mainly due to a **$1.6 million** decline in employee compensation. The six-month decrease was due to a **$3.1 million** decline in employee compensation and the absence of **$2.3 million** in M&A-related costs[76](index=76&type=chunk) [Depreciation](index=21&type=section&id=Depreciation) This section discusses the changes in depreciation expense and the factors contributing to these changes - Depreciation expense increased by **$0.6 million (4%)** in Q2 2025 and **$1.8 million (6%)** in the first six months of 2025 compared to 2024[77](index=77&type=chunk) - The increases were due to accelerated depreciation on assets associated with the corporate headquarters lease, following an early termination right exercise in Q1 2025[77](index=77&type=chunk) [Amortization of intangible assets](index=21&type=section&id=Amortization%20of%20intangible%20assets) This section analyzes the changes in amortization expense for intangible assets - Intangible asset amortization expense decreased by **$4.8 million (35%)** in Q2 2025 and **$9.6 million (35%)** in the first six months of 2025 compared to 2024[78](index=78&type=chunk) - The decreases were due to certain assets reaching the end of their assumed useful lives and becoming fully amortized[78](index=78&type=chunk) [Asset impairment and other](index=21&type=section&id=Asset%20impairment%20and%20other) This section reports on any asset impairment charges or other related expenses incurred during the periods - No asset impairment and other expenses were incurred in Q2 2025 or Q2 2024, or the first six months of 2025. A charge of **$1.1 million** was incurred in the first six months of 2024 related to a contract termination fee[79](index=79&type=chunk) [Operating income](index=21&type=section&id=Operating%20income) This section discusses the changes in TEGNA's operating income and the primary factors influencing these changes - Operating income decreased by **$19.4 million (14%)** in Q2 2025 and **$48.0 million (17%)** in the first six months of 2025 compared to 2024[80](index=80&type=chunk) - These decreases were primarily driven by declines in political and AMS revenues, partially offset by a decline in operating expenses[80](index=80&type=chunk) [Non-operating (expense) income](index=21&type=section&id=Non-operating%20%28expense%29%20income) This section analyzes the changes in TEGNA's non-operating income and expenses, including interest income and other non-core items - Non-operating expense decreased by **$4.4 million (11%)** in Q2 2025, primarily due to a **$2.3 million** increase in interest income and the absence of a **$1.0 million** contribution to the TEGNA Foundation made in 2024[81](index=81&type=chunk) - For the first six months of 2025, non-operating expense increased by **$144.1 million**, primarily due to the absence of a **$152.9 million** gain recognized on the sale of an investment in Broadcast Music, Inc. (BMI) in Q1 2024, partially offset by a **$4.8 million** increase in interest income[82](index=82&type=chunk) [Provision for income taxes](index=21&type=section&id=Provision%20for%20income%20taxes) This section discusses the changes in TEGNA's income tax expense and effective tax rates - Income tax expense decreased by **$0.9 million (4%)** in Q2 2025 and **$47.0 million (57%)** in the first six months of 2025 compared to 2024[83](index=83&type=chunk) - The Q2 decrease was due to lower pre-tax income, partially offset by an increased effective tax rate (**23.0%** in 2025 vs. **20.5%** in 2024). The six-month decrease was due to lower pre-tax income, mainly from the absence of the BMI sale gain, with a lower effective tax rate (**21.9%** in 2025 vs. **23.3%** in 2024) due to clean energy tax credits and state tax planning[83](index=83&type=chunk) [Net income attributable to TEGNA Inc.](index=22&type=section&id=Net%20income%20attributable%20to%20TEGNA%20Inc.) This section summarizes TEGNA's net income and diluted earnings per share attributable to common shareholders - Net income attributable to TEGNA Inc. was **$67.9 million ($0.42 diluted EPS)** in Q2 2025, down from **$82.1 million ($0.48 diluted EPS)** in Q2 2024[84](index=84&type=chunk) - For the first six months of 2025, net income was **$126.6 million ($0.77 diluted EPS)**, down from **$271.7 million ($1.55 diluted EPS)** in 2024[84](index=84&type=chunk) - The weighted average number of diluted common shares outstanding decreased to **162.7 million** in Q2 2025 (from **169.9 million** in Q2 2024) and to **162.3 million** for the six months (from **174.2 million** in 2024), primarily due to share repurchases[85](index=85&type=chunk) [Results from Operations - Non-GAAP Information](index=23&type=section&id=Results%20from%20Operations%20-%20Non-GAAP%20Information) This section provides a reconciliation of non-GAAP financial measures, such as Adjusted EBITDA, and explains their use in evaluating company performance - Management and the Board use non-GAAP measures (e.g., Adjusted EBITDA, non-GAAP net income, non-GAAP EPS) to evaluate company performance and compensate senior management, believing they offer a useful view of ongoing operating performance by excluding 'special items'[88](index=88&type=chunk)[89](index=89&type=chunk) - Special items excluded from non-GAAP results for 2025 include Octillion acquisition earnout adjustment, retention costs (SBC and cash), and workforce restructuring expenses. For 2024, they included retention costs, M&A-related costs, workforce restructuring, asset impairment, and a gain on BMI investment sale[91](index=91&type=chunk) Adjusted EBITDA (in thousands): | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change (YoY) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Net income attributable to TEGNA Inc. (GAAP) | $67,922 | $82,144 | (17%) | $126,593 | $271,704 | (53%) | | Operating income (GAAP) | $122,414 | $141,860 | (14%) | $231,437 | $279,420 | (17%) | | Adjusted operating income (non-GAAP) | $126,334 | $146,891 | (14%) | $238,250 | $293,108 | (19%) | | **Adjusted EBITDA** | **$150,962** | **$175,727** | **(14%)** | **$287,210** | **$349,914** | **(18%)** | | Adjusted EBITDA before stock-based compensation costs | $160,114 | $187,254 | (14%) | $307,300 | $375,110 | (18%) | - Adjusted EBITDA decreased by **$24.8 million (14%)** in Q2 2025 and **$62.7 million (18%)** in the first six months of 2025, primarily due to declines in political and AMS revenues, partially offset by decreased operating expenses[96](index=96&type=chunk) [Liquidity, Capital Resources and Cash Flows](index=25&type=section&id=Liquidity,%20Capital%20Resources%20and%20Cash%20Flows) This section discusses TEGNA's ability to generate cash, manage its capital structure, and fund its operations and strategic initiatives - TEGNA's operations generate positive cash flow, sufficient to fund capital expenditures, interest payments, dividends, share repurchases, debt repayments, and strategic investments[97](index=97&type=chunk) - The company aims to return **40-60%** of Adjusted free cash flow generated over 2024-2025 to shareholders, with remaining funds for organic investments, acquisitions, and future debt retirement[99](index=99&type=chunk)[100](index=100&type=chunk) - In the first six months of 2025, **$40.2 million** was returned to shareholders as dividends. In the first half of 2024, **$195.6 million** was returned, including **$154.7 million** in share repurchases and **$40.9 million** in dividends[101](index=101&type=chunk) - As of June 30, 2025, total debt was **$3.1 billion**, cash and cash equivalents were **$756.5 million**, and unused borrowing capacity under the revolving credit facility was **$738.2 million**. The leverage ratio was **2.97x**, well within covenant limits[103](index=103&type=chunk) [Cash Flows](index=27&type=section&id=Cash%20Flows) This section provides a detailed analysis of TEGNA's cash flows from operating, investing, and financing activities - Net cash flow from operating activities decreased by **$65.7 million** to **$159.5 million** for the six months ended June 30, 2025, primarily due to a **$48.0 million** decline in operating income and a **$42.1 million** increase in income tax payments (driven by clean energy tax credits)[105](index=105&type=chunk) - Net cash used in investing activities was **$14.3 million** in the first six months of 2025, a decrease of **$85.9 million** from net cash provided in 2024. This shift was mainly due to the absence of **$152.9 million** in proceeds from the BMI investment sale in 2024, partially offset by lower acquisition payments[106](index=106&type=chunk) - Net cash used in financing activities decreased significantly to **$81.9 million** in the first six months of 2025 from **$212.1 million** in 2024. This was primarily due to no common stock repurchases in 2025, compared to **$154.7 million** in 2024. However, **$20.8 million** was paid for the repurchase of noncontrolling interest in Premion in 2025[107](index=107&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that TEGNA's exposures to market risk have not materially changed since December 31, 2024. The company had no floating interest obligations outstanding as of June 30, 2025, but any future borrowings under its revolving credit facility would be subject to a variable rate - Market risk exposures have not materially changed since December 31, 2024[110](index=110&type=chunk) - As of June 30, 2025, TEGNA had no floating interest obligations outstanding. Future borrowings under the **$750 million** revolving credit facility (expiring January 2029) would be subject to a variable rate[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the principal executive and financial officers, concluded that TEGNA's disclosure controls and procedures were effective as of June 30, 2025. No material changes to internal controls over financial reporting occurred during the fiscal quarter - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[112](index=112&type=chunk) - No material changes in internal controls over financial reporting occurred during the fiscal quarter[113](index=113&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 of the condensed consolidated financial statements for information regarding TEGNA's legal proceedings, which primarily involve ongoing antitrust class action lawsuits - Legal proceedings information is detailed in Note 10 to the condensed consolidated financial statements[114](index=114&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section states that no material changes have occurred to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K, except for the identification of an additional risk factor related to the negative impact of tariffs on advertising demand - No material changes to risk factors from the 2024 Annual Report on Form 10-K, except for an additional risk factor[115](index=115&type=chunk) - New risk factor: The imposition of tariffs by the U.S. government and retaliatory tariffs by other countries may negatively impact demand for advertising by adversely affecting customers' businesses, potentially reducing advertising spend[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program. No shares were repurchased under the authorized $650 million program during the first six months of 2025, with $375.2 million remaining available for repurchase until the program's expiration on December 31, 2025 - The Board of Directors authorized a **$650 million** share repurchase program in December 2023, expiring December 31, 2025[117](index=117&type=chunk) - No shares were repurchased under this program during the six months ended June 30, 2025[117](index=117&type=chunk) - **$375.2 million** of common shares may still be repurchased under the program as of June 30, 2025[117](index=117&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities[118](index=118&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures - No mine safety disclosures[119](index=119&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to disclose - No other information to disclose[120](index=120&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Fifth Restated Certificate of Incorporation, By-laws, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL documents - Exhibits include corporate governance documents (Certificate of Incorporation, By-laws), CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL documents[121](index=121&type=chunk) [SIGNATURE](index=32&type=section&id=SIGNATURE) This section contains the signature of Clifton A. McClelland III, Senior Vice President and Controller, on behalf of TEGNA Inc., certifying the report pursuant to the Securities Exchange Act of 1934 - The report is signed by Clifton A. McClelland III, Senior Vice President and Controller, as the Principal Accounting Officer for TEGNA Inc. on August 7, 2025[124](index=124&type=chunk)[125](index=125&type=chunk)

Financial Data and Key Metrics Changes - Total company revenue for Q2 decreased by 5% year over year to $675 million, aligning with the outlook range of down 4% to 7% [17] - Adjusted EBITDA in Q2 decreased by 14% year over year to $151 million, primarily due to declines in high-margin political and AMS revenues [24] - Non-GAAP expenses finished down 3% year over year, driven by operational cost-cutting initiatives [23] Business Line Data and Key Metrics Changes - AMS revenue declined by 4% year over year to $288 million, reflecting ongoing macroeconomic headwinds [18] - Distribution revenue in Q2 was flat year over year at $370 million, impacted by subscriber declines but partially offset by contractual rate increases [21] - Digital products delivered strong double-digit growth year over year for the third consecutive quarter, indicating a positive trend in digital revenue [20] Market Data and Key Metrics Changes - Approximately 35% of traditional subscribers are up for renewal at the end of this year, with 30% up for renewal in 2026 [21] - The company is experiencing a shift in advertising dynamics, with expectations of a decline in total company revenue by 18% to 20% year over year in Q3 due to the cyclical nature of the business [26] Company Strategy and Development Direction - The company is focused on building a world-class team culture and leveraging strengths across its stations to improve performance [8] - There is a commitment to fully deploy technology, automation, and AI to enhance operational efficiency and reduce costs [9] - The company is investing in local journalism and digital development, with a significant expansion in local news programming [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position amidst regulatory changes that may benefit local broadcasters [7] - The outlook for the advertising market remains cautious due to economic uncertainty, but management believes advertisers will eventually return [49] - The company is committed to returning 40% to 60% of adjusted free cash flow to shareholders over the two-year period of 2024 and 2025 [25] Other Important Information - The company is on track to achieve annualized core non-programming savings of $90 million to $100 million by the end of 2025, having already achieved 80% of this target [23] - The Chief Operating Officer, Lynn Beal, will be retiring at the end of the month after over 35 years in the industry [14] Q&A Session Summary Question: Thoughts on NBC deal structure amidst scrutiny - Management values the network affiliate relationship and is focused on maintaining constructive partnerships, with no specific comments on the NBC deal structure [35] Question: Urgency in M&A perspective - Management believes deregulation is necessary and coming, creating significant profit opportunities for the broadcast industry, and they are open to being either a buyer or seller depending on opportunities [36] Question: Areas of cost savings using technology - Management highlighted automation in transcription, video editing, and identifying news stories as key areas where AI is being utilized to reduce costs [44] Question: Outlook for core advertising in Q3 - Management expects core advertising to decline in the low double to mid-teens range year over year, influenced by the previous year's Summer Olympics and changes in the Premion reseller partnership [52] Question: Market conditions for M&A - Management indicated a strong balance sheet and a focus on creating value for shareholders, engaging in the market to identify opportunities [59] Question: Trends in reverse retransmission agreements - Management noted a bend in the curve for programming fees, with opportunities to renegotiate favorable terms as agreements come up for renewal [61]

TEGNA (TGNA -4.34%), one of the largest U.S. owners of local television stations and digital media outlets, reported its quarterly results for Q2 2025 on August 7, 2025. The company posted non-GAAP earnings per share of $0.44, which was above analyst forecasts of $0.36. Revenue (GAAP) was $675 million for Q2 2025, exceeding GAAP revenue expectations by about $3.4 million but down from the previous year. While the top and bottom line figures beat estimates, business trends showed declines in major revenue st ...

Core Insights - TEGNA Inc. reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $0.50 per share a year ago, representing an earnings surprise of +15.79% [1] - The company achieved revenues of $675.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.51%, although this is a decline from $710.36 million in the same quarter last year [2] - TEGNA has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of TEGNA's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.40, with expected revenues of $678.15 million, and for the current fiscal year, the consensus EPS estimate is $1.61 on revenues of $2.74 billion [7] Industry Context - The Broadcast Radio and Television industry, to which TEGNA belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TEGNA's stock performance [5][6]

Revenue Performance - Total company revenue decreased 5% to $675 million compared to $710 million in the same quarter last year[3]. - Distribution revenue remained flat at $370 million, impacted by subscriber declines but offset by contractual rate increases[3]. - Total revenues for the six months ended June 30, 2025, were $1,355,094, a decrease of 5% compared to $1,424,615 in 2024[19]. - Distribution revenue for the six months ended June 30, 2025, was $749,133, unchanged from $751,707 in 2024[20]. - Third Quarter 2025 revenue is expected to decline by 18% to 20% compared to the same quarter in 2024[8]. Profitability Metrics - Adjusted EBITDA decreased 14% to $151 million primarily due to lower political advertising revenue and AMS revenue[5]. - GAAP net income attributable to TEGNA Inc. was $68 million, a 17% decrease from $82 million in the prior year[3]. - Basic earnings per share dropped by 50% to $0.78 for the six months ended June 30, 2025, compared to $1.56 in 2024[19]. - For the six months ended June 30, 2025, TEGNA Inc. reported a net income of $131,838,000, compared to $166,338,000 for the same period in 2024, reflecting a decrease of approximately 20.8%[32][33]. - The diluted earnings per share for the first half of 2025 was $0.81, down from $0.95 in the first half of 2024, indicating a decline of about 14.7%[32][33]. Cash Flow and Financial Guidance - Net cash flow from operations was $100 million, with Adjusted Free Cash Flow at $96 million[5]. - Full-Year 2025 Adjusted Free Cash Flow guidance is reaffirmed at $900 million[7]. - Adjusted free cash flow guidance for 2024/2025 remains unchanged at $900 million to $1.1 billion[26]. - TEGNA Inc. achieved adjusted free cash flow of $96,094,000 for the quarter ended June 30, 2025, compared to $158,072,000 year-to-date, reflecting a decrease of approximately 39.2%[35]. - The company’s net cash flow from operating activities for the quarter ended June 30, 2025, was $99,862,000, compared to $159,491,000 year-to-date, indicating a decline of about 37.4%[35]. Operational Changes and Costs - TEGNA plans to add over 100 hours of new daily local programming across 50+ markets, aiming to enhance content and distribution channels[5]. - The company incurred workforce restructuring costs of $2,775,000 in the first half of 2025, compared to $3,637,000 in the same period of 2024[34]. - Corporate general and administrative expenses decreased by 26% to $20,265 for the six months ended June 30, 2025, down from $27,483 in 2024[19]. Debt and Leverage - TEGNA redeemed $250 million par value of 4.75% senior notes due March 15, 2026, on July 2, 2025[5]. - Total outstanding principal debt as of June 30, 2025, was $3,090,000,000, with cash and cash equivalents of $756,540,000, resulting in net debt of $2,333,460,000[37]. - The net leverage ratio as of June 30, 2025, was 2.8x, calculated using net debt of $2,333,460,000 and trailing two-year adjusted EBITDA of $824,635,000[39].

Core Insights - TEGNA Inc. reported a 5% decrease in total revenue to $675 million for the second quarter of 2025, primarily due to lower political advertising revenue and advertising and marketing services revenue [3][15][18] - The company reaffirmed its two-year adjusted free cash flow guidance for 2024/2025, estimating it to be between $900 million and $1.1 billion [5][25] - TEGNA's CEO highlighted the company's commitment to enhancing local journalism and expanding digital experiences, alongside a significant increase in local news coverage by 100 hours a day [2][9] Financial Performance - Total company revenue decreased by 5% year-over-year, with distribution revenue remaining flat at $370 million and advertising and marketing services revenue down 4% to $288 million [3][15][18] - GAAP net income attributable to TEGNA Inc. was $68 million, a 17% decline from the previous year, with diluted earnings per share at $0.42 [3][16][34] - Adjusted EBITDA fell 14% to $151 million, primarily due to lower political advertising and AMS revenue, although cost-cutting initiatives provided some offset [3][34] Operational Highlights - The company achieved a net cash flow from operations of $100 million and adjusted free cash flow of $96 million, returning $20 million to shareholders through dividends [3][36] - TEGNA's net leverage ratio stood at 2.8x at the end of the second quarter, with cash and cash equivalents totaling $757 million [3][36] - The company redeemed $250 million of senior notes due in 2026, reflecting proactive debt management [3][36] Strategic Initiatives - TEGNA announced the addition of over 100 hours of new daily local programming across more than 50 markets, aiming to enhance content and distribution channels [9] - The company appointed vice presidents of content to focus on localized storytelling and cross-platform news delivery [9] - A multi-year deal was reached with FOX Corporation to renew station affiliation agreements for six TEGNA markets, covering approximately 7% of TEGNA households [9]

Core Insights - The E.W. Scripps Company (SSP) and TEGNA (TGNA) are adapting to changes in the local media landscape with differing strategies for growth and cost management [1][2] Group 1: SSP Overview - SSP is expanding its local media segment through a station swap with Gray Media, acquiring KKTV, a CBS affiliate, to enhance its presence in the Western U.S. market [3][5] - The company is implementing centralized production and AI tools to improve operational efficiency and manage costs, while keeping employee costs low [4][6] - In Q1 2025, SSP's local media segment generated $325 million in revenues, with a segment profit of $35 million, supported by cost controls and sports programming partnerships [6] Group 2: TGNA Overview - TEGNA is focusing on building a stronger foundation through leadership changes, system upgrades, and a new sales performance structure, while utilizing resource sharing across stations [7] - The company faces challenges with soft consumer confidence and cautious advertising spending, which may impact its near-term advertising performance [8][10] - As of March 31, 2025, TEGNA reported total debt of $3.08 billion and a net leverage ratio of 2.8X, raising concerns about its financial flexibility [9][10] Group 3: Comparative Analysis - Valuation-wise, SSP shares are trading at a Price/Sales ratio of 0.12X, significantly lower than TGNA's 0.94X, indicating a cheaper valuation for SSP [11] - Year-to-date, SSP shares have increased by 41.2%, while TGNA shares have decreased by 8.6%, reflecting differing investor sentiments towards the two companies [13] - SSP is viewed as having better growth potential due to its active strategies and operational efficiency, while TEGNA is seen as struggling with weak demand and stagnant growth [18][19]