TEGNA Inc. reported third‑quarter 2025 results on November 10, 2025, showing total revenue of $650.79 million, a 19% decline from the $807 million earned in Q3 2024. GAAP net income fell 75% to $37 million, while non‑GAAP net income was $53 million. Diluted earnings per share were $0.23 on a GAAP basis and $0.33 on a non‑GAAP basis, both below the $0.89 and $0.94 reported in Q3 2024, respectively. Adjusted EBITDA dropped 52% to $131 million, compared with $270 million in the prior year. The revenue decline was driven largely by a 92% drop in political advertising revenue to $9.88 million, a consequence of the transition from an election year to a non‑election year, and a 12% decline in Advertising & Marketing Services (AMS) revenue amid broader macroeconomic headwinds. Distribution revenue slipped 1% to $358 million, while other revenue streams remained relatively flat.
The sharp contraction in political advertising revenue explains the majority of the revenue shortfall, as political ad spend typically peaks during election cycles and contracts sharply afterward. AMS revenue, which includes digital marketing and data‑analytics services, also fell due to tighter advertising budgets and increased competition from alternative platforms. Despite these headwinds, TEGNA’s cost base was partially controlled: non‑GAAP operating expenses decreased 4% to $544 million, reflecting disciplined spending on content and technology investments. However, the revenue decline outpaced cost savings, leading to a 60% drop in GAAP operating income to $92 million and a 52% drop in non‑GAAP operating income to $107 million, underscoring margin compression.
TEGNA’s management reiterated that it has entered into a definitive agreement to be acquired by Nexstar Media Group for $22.00 per share in a $6.2 billion cash transaction, with an expected closing in the second half of 2026 pending regulatory approvals. The company has suspended its share‑repurchase program and will continue to pay its regular quarterly dividend through the transaction’s completion. Because the acquisition is material and the company’s future strategy is largely defined by the deal, TEGNA has chosen not to provide forward‑looking guidance for the remainder of the year.
Pre‑market trading showed a modest 0.60% dip in TEGNA’s stock, largely driven by a revenue miss against the consensus estimate of $663.67 million and the pronounced year‑over‑year decline in political advertising revenue. The acquisition agreement, however, provides a clear exit price and has helped temper investor concern, keeping the market reaction relatively muted despite the earnings shortfall.
The earnings report highlights the cyclical nature of TEGNA’s core advertising business and the impact of macroeconomic conditions on its AMS segment. While the company’s profitability has been eroded by revenue declines, disciplined cost management has mitigated the blow to operating income. The pending acquisition by Nexstar is positioned to create a larger, more competitive local media entity, offering a strategic path forward for TEGNA’s shareholders.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.