TEGNA's Q2 Earnings Call: Analyst Questions on Revenue Decline, Political Advertising, and M&A Strategy.

TEGNA's Q2 earnings call revealed a 5% YoY decline in revenue, attributed to reduced political advertising, cyclical industry pressures, and softness in advertising and marketing services. Management cited macroeconomic uncertainty and changes in the Premion reseller relationship as contributing factors. To offset pressures, TEGNA is focusing on operational cost reductions and digital product expansion.

Tegna Inc. (NYSE: TGNA) released its second-quarter 2025 earnings report, highlighting a 5% year-over-year (YoY) decline in total revenue, driven by reduced political advertising, cyclical industry pressures, and softness in advertising and marketing services (AMS). Despite this, the company reported a significant increase in digital product growth and continued cost-cutting initiatives.

Total revenue for Tegna Inc. decreased to $675 million, a 5% YoY decline. Advertising and Marketing Services (AMS) revenue fell 4% YoY to $288 million, while distribution revenue remained flat at $370 million. Non-GAAP expenses decreased 3% YoY, and adjusted EBITDA fell 14% YoY to $151 million. The company paid $20 million in dividends and had $757 million in cash and cash equivalents at the end of the quarter [1].

Management attributed the revenue decline to macroeconomic uncertainty, changes in the Premion reseller relationship, and the cyclical nature of the business. Tegna Inc. expects total company revenue to decline by 18% to 20% YoY in the third quarter, primarily due to the absence of significant political and Summer Olympic advertising [2].

However, Tegna Inc. is focusing on operational cost reductions and digital product expansion to offset these pressures. The company achieved 80% of its target for $90 million to $100 million in annualized core non-programming savings and is leveraging technology, automation, and AI to enhance productivity and reduce costs [2].

Tegna Inc. also highlighted strong double-digit growth in its owned and operated digital products for the third consecutive quarter. The company is exploring expansion opportunities in digital growth and leveraging technology to drive future revenue growth [1].

The company's stock price fell 6.45% to $16.36 following the earnings report, nearing its 52-week low of $13.37. Despite the stock price decline, Tegna Inc.'s earnings per share (EPS) of $0.44 exceeded the forecast of $0.36 by 22.22% [2].

Tegna Inc. remains well-positioned to invest in growth opportunities, including potential deregulation benefits. The company is open to being a buyer or seller in the M&A market, depending on the opportunities [1].

References:
[1] https://finance.yahoo.com/news/tegna-inc-tgna-q2-2025-072723104.html
[2] https://www.ainvest.com/news/tegna-q2-earnings-call-digital-growth-cost-cutting-regulatory-progress-revenue-decline-2508/