TEGNA Inc. Reports 13% Revenue Decline and Enters Merger Agreement with Nexstar Media Group

TEGNA Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with total revenues of $2.71 billion, a decrease of 13% from $3.10 billion in 2024. The drop in revenue was primarily attributed to a 90% decline in political advertising revenue, which fell to $38.8 million from $373.2 million in the previous year, reflecting the cyclical nature of political spending. Additionally, advertising and marketing services (AMS) revenue decreased by 4% to $1.17 billion, influenced by challenges in the television advertising market and the absence of the Summer Olympics. Distribution revenue remained relatively stable, decreasing slightly by 1% to $1.47 billion.

Operating income also saw a substantial decline, falling 44% to $443 million compared to $785 million in 2024. This decrease was driven by the significant drop in political and AMS revenues, although operating expenses were reduced by 2% to $2.27 billion. The company reported a net income of $219.5 million, down 63% from $599 million in the prior year, resulting in a diluted earnings per share of $1.34, a decrease of 62% from $3.53 in 2024.

In terms of strategic developments, TEGNA entered into a merger agreement with Nexstar Media Group on August 18, 2025, which was approved by shareholders on November 18, 2025. Under the terms of the agreement, TEGNA shareholders will receive $22.00 per share in cash upon the merger's completion, expected in the second half of 2026, subject to regulatory approvals. The merger is anticipated to enhance TEGNA's market position, although it has led to restrictions on share repurchases during the merger process.

Operationally, TEGNA continues to serve approximately 39% of U.S. television households through its 64 television stations and two radio stations across 51 markets. The company has focused on enhancing its digital presence, with significant investments in local streaming apps and digital advertising solutions, including its Premion platform. As of December 31, 2025, TEGNA employed approximately 5,500 individuals, reflecting a commitment to maintaining a skilled workforce amid ongoing industry challenges.

Looking ahead, TEGNA's management expressed cautious optimism, emphasizing the importance of local journalism and community engagement as key drivers of future growth. However, the company acknowledged potential risks, including ongoing challenges in the advertising market and the impact of economic conditions on revenue generation. The successful completion of the merger with Nexstar is expected to provide additional resources and capabilities to navigate these challenges and enhance shareholder value.