TEGNA Inc. Reports 19% Revenue Decline in Q3 2025, Plans Merger with Nexstar

TEGNA Inc. reported a significant decline in its financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. The company generated revenues of $650.8 million for the quarter ending September 30, 2025, a decrease of 19% from $806.8 million in the same period of 2024. For the nine-month period, revenues fell by 10% to $2.0 billion from $2.2 billion year-over-year. The decline was primarily attributed to a substantial drop in political advertising revenue, which decreased by 92% in the third quarter and 88% for the nine months, reflecting the cyclical nature of political spending in odd-numbered years.

Operating income also saw a sharp decline, dropping 60% to $92.1 million in the third quarter and 36% to $323.6 million for the nine months. Net income attributable to TEGNA Inc. was $37.1 million, or $0.23 per diluted share, down 75% from $147.4 million, or $0.89 per diluted share, in the prior year’s third quarter. For the nine-month period, net income fell 61% to $163.3 million, or $1.00 per diluted share, compared to $419.2 million, or $2.44 per diluted share, in 2024.

In terms of operational developments, TEGNA continues to focus on strategic initiatives, including a merger agreement with Nexstar Media Group, announced on August 18, 2025. This merger, which is expected to close in the second half of 2026, is subject to stockholder and regulatory approvals. The agreement stipulates that TEGNA shareholders will receive $22.00 per share in cash upon completion. The company has also suspended its share repurchase program during the merger process, although it plans to continue paying regular dividends of $0.125 per share until the merger closes.

TEGNA's operational metrics indicate a reach of over 100 million people monthly across various platforms, including 64 television stations and two radio stations in 51 markets. However, the company reported a decrease in cash and cash equivalents, which fell to $232.8 million from $693.2 million at the end of 2024. The decline in cash flow from operating activities was notable, with a decrease to $218.6 million for the first nine months of 2025, down from $435.2 million in the same period of 2024. This was primarily due to lower operating income and increased tax payments.

Looking ahead, TEGNA's management remains cautious about the future, citing ongoing macroeconomic challenges and the cyclical nature of its advertising revenues. The company expects to navigate these challenges while maintaining compliance with its debt covenants, as it continues to focus on its strategic merger with Nexstar and the operational efficiencies necessary to enhance shareholder value.