Scripps reported fourth‑quarter 2025 results on February 25, 2026, with revenue of $560 million, a 23% decline from the $728 million earned in the same period a year earlier. The company posted a net loss of $44.9 million, translating to earnings per share of –$0.51, a miss against the consensus estimate of $0.46 per share. Revenue beat the consensus estimate of $552.8 million, while the loss represented a significant miss relative to the $0.46 expectation.
The revenue drop was driven by a 95% plunge in political advertising, which fell to $9 million from $174 million in Q4 2024, and a 30% decline in local media revenue, which totaled $360 million. The Scripps Networks division generated $199 million in revenue, and its operating margin expanded by 7 percentage points to 32%, reflecting disciplined cost management and a favorable mix of high‑margin streaming and sports rights. In contrast, the Local Media division’s margin compressed as revenue fell while expenses remained flat.
Net leverage, a key measure of financial risk, rose to 4.8× at year‑end, up from 4.6× reported in the prior quarter, reflecting the company’s high debt load of $2.6 billion against cash of $27.9 million. The cumulative preferred dividend balance of $117 million continues to restrict common‑share dividend or buyback options, underscoring the company’s focus on deleveraging.
CEO Adam Symson highlighted the company’s transformation plan, which targets an annualized enterprise EBITDA growth of $125–$150 million by 2028. He noted that the Scripps Networks division exceeded guidance with a 700‑basis‑point margin improvement, driven by women’s sports and streaming initiatives, and that local‑media expenses remained flat even as the company invested in local sports rights. Symson also emphasized the expected surge in political advertising during the 2026 midterm cycle, forecasting nearly $11 billion in total spending.
The company’s outlook includes the re‑acquisition of 23 ION‑affiliated stations for an estimated $54 million, expected to be accretive to the Networks segment. Management reiterated its commitment to debt reduction as a top capital‑allocation priority, while projecting a positive trajectory for core advertising revenue despite the current decline in political and local media sales. Analysts noted the revenue beat and margin improvement as key drivers of the market’s positive reaction.
Prior period context shows that Q4 2024 revenue was $728 million and income attributable to shareholders was $80.3 million, while full‑year 2024 revenue reached $2.51 billion with a net income of $87.6 million. The current quarter’s results therefore represent a significant contraction in both top‑line and profitability, underscoring the challenges posed by the cyclical nature of political advertising and the softness in traditional TV advertising markets.
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