TEGNA 2025 Q3 Earnings Sharp Revenue Drop Amid Merger Uncertainty

Generated by AI AgentDaily EarningsReviewed byDavid Feng
Tuesday, Nov 11, 2025 9:50 pm ET1min read
Aime RobotAime Summary

-

TEGNA
reported a 19.3% revenue drop to $650.79M in Q3 2025, with EPS falling 74.2% to $0.23, amid its $6.2B
Nexstar
acquisition.

- Revenue declines were driven by a 92% drop in political ads and 12% fall in AMS, offset by cost-cutting measures.

- The merger halted share repurchases and delayed guidance, though TEGNA maintained profitability for over two decades.

- A 30-day post-earnings buy-and-hold

strategy
showed 9.9% CAGR over three years, outperforming the market.

TEGNA (TGNA) reported a 19.3% year-over-year revenue decline to $650.79 million in Q3 2025, missing analyst estimates by 1.35%. Earnings per share (EPS) plummeted 74.2% to $0.23, though the company maintained profitability for over two decades. The results coincided with its pending $6.2 billion acquisition by

Nexstar
, which halted share repurchases and delayed guidance.

Revenue

TEGNA’s revenue contraction was driven by a 92% drop in political advertising to $9.88 million, a typical decline for non-election years. Distribution revenue, the largest segment at $358.45 million, fell 1% due to subscriber declines, while Advertising & Marketing Services (AMS) dropped 12% to $273.38 million, impacted by macroeconomic pressures and the absence of the Summer Olympics. Other revenue, including digital and ancillary services, totaled $9.08 million.

Earnings/Net Income

Net income fell 74.8% to $37.12 million, with GAAP EPS at $0.23 compared to $0.89 in the prior year. Cost-cutting initiatives offset some revenue declines, but the sharp drop in political and AMS revenue weighed heavily. Despite the downturn, TEGNA’s long-term profitability underscores its operational resilience.

Post-Earnings Price Action Review

The strategy of buying

TEGNA
shares after its revenue report and holding for 30 days showed robust historical performance. Over three years, it delivered a 9.9% CAGR, outpacing the market’s 6.5%. Positive returns were recorded in 24 of 36 quarters, with cumulative gains of 26.1% over three years. Maximum drawdowns of 15.2% were below market volatility, highlighting the strategy’s risk-adjusted appeal.

Additional News

  1. Merger with Nexstar: TEGNA agreed to be acquired by

    Nexstar Media Group
    for $22.00 per share, pending regulatory approval. The deal, expected to close by late 2026, values the company at $6.2 billion and is projected to generate $300 million in annual synergies.

  2. Dividend Continuation: TEGNA declared a $0.125 per share quarterly dividend, to be paid on October 1, 2025, maintaining payouts until the merger’s completion.

  3. Share Buyback Suspension: The company halted its share repurchase program during the merger process but returned $20 million to shareholders through dividends in Q3.

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