Core Thesis - Nexstar Media Group, Inc. is positioned as a resilient player in the broadcasting industry, leveraging its scale and recurring revenue streams to navigate challenges such as cord-cutting and changing advertising dynamics [2][3][5]. Financial Performance - In 2024, Nexstar generated approximately $5.3 billion in revenue and $1.2 billion in mid-cycle free cash flow, supported by a robust EBITDA margin of 35%, one of the highest in U.S. broadcasting [4]. - Political advertising spending exceeded $600 million in 2022, serving as a cyclical catalyst for revenue growth, while retransmission and distribution fees now account for over half of total revenue, providing stability [4]. Business Model and Strategy - The company operates a diversified model that includes local audience aggregation, advertising, and retransmission fees, which collectively form a stable backbone against industry headwinds [3][4]. - Nexstar's participation in the CW network and NextGen TV (ATSC 3.0) enhances its capabilities for targeted advertising and data-driven services, offering additional growth opportunities [3]. Shareholder Returns - Nexstar adopts a disciplined capital allocation strategy, returning around 70% of free cash flow through dividends and buybacks, reflecting a shareholder-first approach [5]. - The company offers a 4% dividend yield and maintains a conservative net leverage of 3x, balancing growth and risk management effectively [5]. Market Position - Despite being categorized as a "traditional" broadcaster, Nexstar's operational model and financial discipline position it as a steady compounding engine in the media landscape, converting airtime into lasting shareholder value [5][6].