Nexstar Media Group, Inc. Q4 FY2025 earnings call

• Key 2025 achievements include renewing distribution agreements for over 60% of subscriber base, elevating CW and NewsNation, extending ABC and MyNetworkTV affiliations, and pursuing Tegna acquisition. - 2026 priorities: digital optimization and expense rationalizations. Digital revenue expected to surpass national advertising revenue. - CW's sports programming driving viewership and progress toward financial targets. NewsNation hitting ratings milestones.

Fourth quarter net revenue was $1.29 billion, down 13.4% y/y. Distribution revenue was $720 million, up 0.8% y/y. Advertising revenue was $549 million, down 27.6% y/y. CW's NASCAR O'Reilly Auto Parts Series had most watched season in 4 years, up 10% y/y; college football up double-digit; ATC men's and women's basketball up 35% through first 10 games. NewsNation was fastest-growing cable news network in 25-54 demo in 2025, with over 40% consumer awareness and over 50% among news viewers.

• Standalone Nexstar pre-Tegna full-year adjusted EBITDA guidance $1.95B - $2.05B. - 2026 distribution revenue projected low single-digit gross growth and mid single-digit net growth. - CW expected to reduce losses 30% from 2025 and be profitable in Q4. - Capex projected 125-130M for 2026, Q1 capex 30-35M. - Cash interest expense expected 355-365M in 2026, Q1 interest ~$85M. - Cash taxes expected 315-325M in 2026.

• Forward-looking statements subject to risks and uncertainties in SEC filings. - Regulatory process for Tegna acquisition involves engaging with DOJ, FCC, etc., and potential divestitures though management expects minimal. - Market and ad revenue risks related to pay TV subscriber trends, advertising market health, etc.

Q: Investor anxiety around FCC CAP elimination and expense rationalization with AI.

A: Perry said working diligently on regulatory process, FCC shot clock expires June 1, expects deal close by end of Q2; on digital, strong local sales force driving growth, on expense, continuing to optimize operations.

Q: Regulatory process surprises and macro ad environment.

A: Ben said engaged vigorously with DOJ, provided info on market definition, macro ad environment sees more categories increasing in revenue growth.

Q: Pro forma leverage and programmatic buying.

A: Leigh Ann said no change in pro forma leverage outlook; Perry said Tegna's Premion platform for programmatic digital advertising, working on programmatic linear solution.

Q: Ad categories and tariffs.

A: Patrick was told auto was biggest decliner but offset by digital growth, no specific tariff impact seen.

Q: AI uses and spectrum.

A: Perry said AI deployed in newsrooms for workflow, joint venture with Edge Beam Wireless for alternative spectrum uses.

Q: DOJ view on markets and Tegna synergies.

A: Craig said provided info to DOJ, no divestiture talks yet; on synergies, Tegna's Premion helps CTV, more political market exposure with Tegna deal.

Q: Digital ad revenue exceeding national.

A: Jason was told CW is network national, but national ad includes station-based, so digital will exceed overall national ad.