Nexstar Media Group 2025 Q2 Earnings Revenue Falls 3.2%, Net Income Drops 14.2%

Nexstar Media Group (NXST) reported fiscal 2025 Q2 earnings on August 7, 2025. The results reflected a decline in both revenue and earnings, with the company missing its own robust expense management as a buffer against softer political advertising. The lack of specific future guidance and disappointing post-earnings returns have cast a cloud over investor sentiment despite management’s optimism.

Nexstar Media Group’s total revenue declined by 3.2% to $1.23 billion in 2025 Q2, compared to $1.27 billion in the same period the previous year. The fall was primarily attributed to lower political advertising revenue in a non-election year. Distribution revenue remained the largest contributor, amounting to $733 million, while advertising revenue stood at $475 million. Additional income from other sources contributed $21 million, bringing the total revenue to $1.23 billion.

The company’s earnings performance also deteriorated, with net income falling to $91 million in 2025 Q2 from $106 million in 2024 Q2, a decline of 14.2%. On a per-share basis, earnings per share (EPS) dropped 13.9% to $3.09, down from $3.59 in the prior-year quarter. This decline underscores a challenging revenue environment, particularly in the advertising segment, despite efforts to control expenses.

Nexstar Media Group’s stock price showed mixed performance in the immediate post-earnings period. Over the latest trading day, the stock fell 4.50%, continued its downward trend with a 1.38% drop during the most recent full trading week, and edged up 0.55% month-to-date. The post-earnings price action review revealed a strategy of buying NXST when it beat earnings expectations and holding for 30 days resulted in a significant underperformance of -32.19%, far below the benchmark return of 92.13%. Although the strategy did not experience any drawdowns, it yielded a poor Sharpe ratio of -0.44, indicating subpar risk-adjusted returns.

CEO Perry A. Sook described the quarter as “solid,” emphasizing that the year-over-year performance was impacted by reduced political advertising revenue, particularly in a non-election year. However, the company partially offset these losses through disciplined expense management. He also highlighted the continued growth of The CW and NewsNation networks, with The CW rising to the eighth-ranked network in primetime ratings for five consecutive quarters and NewsNation recognized as the fastest-growing network year-over-year.

Looking ahead, Nexstar is optimistic about regulatory reforms, the upcoming distribution renewals, and the anticipated political advertising opportunities during the 2026 mid-term elections. However, the company has not provided any specific financial targets or quantitative guidance for future periods, leaving room for uncertainty.

In the broader media landscape, the Punch Newspapers on August 7 reported on various Nigerian developments, including the interception of a tugboat carrying 49 stowaways from Senegal and discussions on visa policy changes involving the U.S. envoy and Nigerian authorities. Additionally, a significant political development saw the immediate past Deputy Governor of Abia State resign from the Peoples Democratic Party. In the business sector, Stanbic IBTC Bank announced that 148 customers had won a total of N23 million in a savings promotion. While these events are not directly linked to Nexstar’s earnings, they reflect a dynamic environment in both international and domestic markets.