TEGNA Inc. reported fourth‑quarter 2025 revenue of $706 million, a 19% decline from the prior year, and full‑year revenue of $2.712 billion, down 13% YoY. Non‑GAAP earnings per share (EPS) for the quarter were $0.50, beating the consensus estimate of $0.4794 by $0.0206, while GAAP EPS was $0.34. For the year, GAAP EPS was $1.34 and non‑GAAP EPS was $1.63.
The decline in total revenue was driven largely by a 91% drop in political advertising revenue, which fell to $17.1 million in Q4 and $38.8 million for the year. Advertising & Marketing Services (AMS) revenue grew 4% in Q4 to $322 million, but fell 4% for the year to $1.169 billion, reflecting broader TV advertising market challenges and the wind‑down of a major Premion reseller partnership. Distribution revenue slipped 1% for the year to $1.466 billion, with Q4 revenue at $358 million.
Adjusted EBITDA contracted 48% in Q4 to $161 million and 38% for the year to $579 million, largely due to the loss of political advertising income. Despite the margin squeeze, TEGNA generated $1.0 billion in adjusted free cash flow over the 2024‑2025 two‑year period, meeting the midpoint of its target range. Q4 adjusted free cash flow was $93 million and the full‑year figure was $316 million.
Management highlighted disciplined cost management as the key driver of the EPS beat. The company reduced compensation and outside‑services expenses, and maintained operating leverage even as revenue fell. “The company achieved or exceeded all previously announced full‑year 2025 guidance metrics,” said a company spokesperson, underscoring confidence in the cost‑control program.
The pending acquisition by Nexstar Media Group remains a central focus for investors. The transaction, valued at $22.00 per share in cash, is expected to close in the second half of 2026, subject to regulatory approvals. Management reaffirmed that the deal is on track, and the company has suspended share repurchases in connection with the merger agreement.
Analysts noted that the earnings beat was largely attributable to cost discipline, while the revenue miss reflected the cyclical absence of political advertising. The muted market reaction to the earnings release itself indicates that investors are prioritizing the strategic implications of the Nexstar acquisition over the quarterly operational results.
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