TEGNA's Q2 Earnings Call: Digital Growth, Cost-Cutting, and Regulatory Progress Amid Revenue Decline

TEGNA Inc.'s Q2 earnings call highlighted mixed signals, with robust digital revenue growth and effective cost-cutting measures, but declining total revenue and advertising and marketing services revenue. The company anticipates an 18-20% revenue decline in Q3 due to the absence of significant political and Summer Olympic advertising. However, positive regulatory developments and stable network partnerships offer optimism for future growth.

Tegna Inc. (TGNA) reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.44, significantly surpassing the forecast of $0.36 by 22.22% [1]. Despite this positive earnings surprise, the company’s stock fell by 6.45% to $16.36, reflecting broader market concerns and a cautious investor outlook. Key Takeaways Tegna’s EPS exceeded expectations by 22.22%. Revenue decreased by 5% year-over-year to $675 million. Stock price fell 6.45% post-earnings, nearing its 52-week low. The company achieved 80% of its targeted savings through cost management. Future revenue is expected to decline by 18-20% in the next quarter.

Tegna’s performance in Q2 2025 was mixed. While the EPS beat forecasts, indicating strong cost management and operational efficiency, the company faced a 5% decline in total revenue compared to the previous year. This performance reflects ongoing challenges in the advertising sector, where revenue fell by 4%. Financial Highlights Revenue: $675 million, a 5% decrease year-over-year Earnings per share: $0.44, a 22.22% surprise over forecast Adjusted EBITDA: $151 million, down 14% year-over-year Cash and cash equivalents: $757 million.

Despite the positive earnings surprise, Tegna’s stock fell by 6.45% to $16.36, close to its 52-week low of $13.37. This decline suggests investor concerns over the company’s revenue drop and future guidance, overshadowing the EPS beat. Tegna anticipates a challenging third quarter, with a projected 18-20% decline in total revenue year-over-year. The company remains focused on digital initiatives and local content, which are expected to drive future growth despite the near-term revenue challenges.

Positive regulatory developments and stable network partnerships offer optimism for future growth. The eighth US Circuit Court of Appeals recently handed down a decision to vacate the previous FCC’s top four prohibition rule, reasoning that the rule was arbitrary and capricious. This ruling, which will take effect following a 90-day period, provides significant opportunities for Tegna and the broader broadcasting industry.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-tegna-q2-2025-highlights-eps-beat-stock-drops-93CH-4178138