Nexstar Q3 2026: Record Revenue, Big Earnings Miss, $11.4B in Debt
As seen on the 24/7 Wall St. homepage on November 5, 2026.
Record revenue from the TEGNA deal and $317 million of political advertising did not stop GAAP earnings from missing expectations by 33%. A preliminary injunction keeps TEGNA synergies out of covenant leverage math until a July 2027 trial, leaving $11.4 billion of debt to manage. Keep an eye on the stock as management leans on debt paydown.
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Nexstar Media Group posted its highest quarterly net revenue in company history during the third quarter of 2026, with net revenue surging 78% year-over-year to $2.13 billion. The TEGNA acquisition contributed $765 million of incremental revenue, and a midterm election cycle pushed political advertising to a quarterly record of $317 million. Revenue came in above the $2.07 billion Wall Street consensus, beating expectations.
GAAP EPS came in at $7.92, missing the $11.87 consensus. One-time charges weighed heavily on the bottom line, including $30 million in transaction and restructuring costs tied to the TEGNA deal and an $11 million loss on debt extinguishment. Net interest expense more than doubled to $186 million, compounding the pressure on reported earnings.
The TEGNA integration remains the central uncertainty for the stock. A preliminary injunction has forced management to remove anticipated TEGNA synergies from covenant leverage calculations entirely, and that situation will not be resolved until a trial set for July 6, 2027. With $11.4 billion of total debt on the balance sheet and a net leverage ratio of 4.04x, management's near-term playbook is straightforward: pay down debt. The company repaid $350 million during the quarter and retired another $525 million after the period ended.
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Adjusted EBITDA reached $756 million at a 35.4% margin, up from 29.9% a year earlier, reflecting TEGNA's $243 million incremental contribution. The company also generated $634 million of free cash flow during the quarter. CEO Perry Sook noted that the first nine months of 2026 produced $1.1 billion in adjusted free cash flow, enabling $786 million of debt reduction and $171 million returned to shareholders through dividends, including a declared quarterly cash dividend of $1.86 per share.
On the programming side, NewsNation grew total day viewership 9% year-over-year, and The CW set a network record with its most-watched sports broadcast ever when August's New Mexico State versus Florida State football game outperformed three major broadcast networks in primetime among adults 25 to 54. Nexstar also announced a multi-year FOX affiliation extension across 41 markets and secured exclusive multi-year NHRA media rights for The CW beginning in September 2027. Management provided no numeric guidance for the quarters ahead.
Mentioned: NXST