TEGNA Inc. Reports Second Quarter 2025 Results and Provides Third Quarter Guidance
Achieves Key Guidance Metrics Reaffirms 2024/2025 Two-Year Adjusted Free Cash Flow guidance
TYSONS, Va., Aug. 07, 2025 (GLOBE NEWSWIRE) -- TEGNA Inc. (NYSE:TGNA) today announced financial results for the second quarter ended June 30, 2025.
"We delivered on our financial commitments this quarter while making important progress on the strategic initiatives that will shape TEGNA's future, including accelerating our technology roadmap and expanding our local news coverage by 100 hours a day," said Mike Steib, CEO. "Our focus remains on reinventing how we operate and how we serve our audiences, by investing in local journalism, compelling content, and digital experiences."
"As we announced last year, our Chief Operating Officer, Lynn Beall is retiring on August 31, and I extend my sincere gratitude for her extraordinary leadership and decades of service to local communities across America," Steib added. "She's been a force for good in our industry and an indispensable partner to me in my first year at TEGNA. We are grateful for all Lynn has done for TEGNA and we are going to miss her."
SECOND QUARTER FINANCIAL HIGHLIGHTS:All Year-Over-Year Comparisons Unless Otherwise Noted:
Total company revenue decreased 5% to $675 million in line with our guidance. The primary drivers of the decline were lower political advertising revenue, consistent with cyclical even-to-odd year comparisons, and lower advertising and marketing services (AMS) revenue.
Distribution revenue was flat at $370 million due to subscriber declines, offset by contractual rate increases.
AMS revenue decreased 4% to $288 million, driven primarily by ongoing macroeconomic challenges, partially offset by growth from local sports rights.
GAAP operating expenses decreased 3% to $553 million and non-GAAP operating expenses1 decreased 3% to $549 million due to our core operational cost cutting initiatives primarily seen in compensation and outside services expense reductions.
GAAP and non-GAAP operating income1 totaled $122 million and $126 million, respectively.
GAAP net income attributable to TEGNA Inc. was $68 million and non-GAAP net income attributable to TEGNA Inc.1 was $71 million.
GAAP and non-GAAP earnings per diluted share1 were $0.42 and $0.44, respectively.
Total company Adjusted EBITDA2 decreased 14% to $151 million primarily due to lower political advertising revenue and AMS revenue, partially offset by continued cost benefits from core operational cost-cutting initiatives.
Net cash flow from operations was $100 million and Adjusted Free Cash Flow3 was $96 million. TEGNA returned $20 million to shareholders through dividends during the second quarter.
Interest expense was flat at $42 million.
Cash and cash equivalents totaled $757 million at the end of the second quarter. Net leverage finished the second quarter at 2.8x4.
Redeemed $250 million par value of 4.75% senior notes due March 15, 2026, on July 2, 2025.
1 See Table 3 for details
2 See Table 4 for details
3 See Table 5 for details
4 See Table 6 for details
KEY BUSINESS UPDATES:
Announced the addition of more than 100 hours of new daily local programming across 50+ markets as part of our strategy to increase content and fuel distribution channels. This strategic addition will enable two dedicated hours of original news content during peak morning hours and is the first step towards TEGNA becoming a 24/7 digital news organization.
Appointed vice presidents of content focused on enhancing localized storytelling while aligning priorities such as investigative journalism, weather, key events, and cross-platform news delivery.
During the quarter, TEGNA and FOX Corporation reached a comprehensive multi-year deal that renews station affiliation agreements for six TEGNA markets. These FOX markets cover approximately seven percent of TEGNA households.
COO Lynn Beall was selected as the recipient of the 2025 Radio + Television Business Report Lifetime Leadership Award, capping off more than 35 years of outstanding leadership and service in the industry.
23 TEGNA stations were honored with a total of 59 Regional Edward R. Murrow Awards. KING in Seattle received a total of 11 awards in the large market television category, including overall excellence. KARE in Minneapolis took home eight awards, including excellence in innovation.
FULL-YEAR AND THIRD QUARTER 2025 OUTLOOK:
Full-Year 2025 Key Guidance Metrics
2024/2025 Two-Year Adjusted FCF
$900 million, 1.1 billion
Corporate Expenses
$40, 45 million
Depreciation
$60, 65 million
Amortization
$33, 37 million
Interest Expense
$160, 165 million
Capital Expenditures
$50, 60 million
Effective Tax Rate
22.0, 23.0%
Third Quarter 2025 Key Guidance Metrics
Reflects expectations relative to third quarter 2024 results
Total Company GAAP Revenue
Down -18% to -20% as expected with even-to-odd year comparisons of an election year andthe Summer Olympics
Total Non-GAAP Operating Expenses
Down -2% to -3%
CONFERENCE CALL
TEGNA will host a conference call and webcast on Thursday, August 7, 2025, to discuss the Company's financial results and other business matters. The teleconference will begin at 11:00 a.m. Eastern Time and will be hosted by Mike Steib, chief executive officer, and Julie Heskett, chief financial officer.
The conference call will be webcast on the company's website, and is open to investors, the financial community, the media and other members of the public. To access the meeting by phone, please visit investors.TEGNA.com at least 10 minutes prior to the scheduled start time to access the links and register before the conference call begins. Once registered, phone participants will receive dial-in numbers and a unique PIN to access the call.
FORWARD-LOOKING STATEMENTS
Certain statements in this 8-K earnings release that do not describe historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Without limitation, any statements preceded or followed by or that include the words "targets," "plans," "believes," "expects," "intends," "will," "likely," "may," "anticipates," "estimates," "projects," "should," "would," "could," "might," "expect," "positioned," "strategy," "future," "potential," "forecast," "outlook," or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. These include, but are not limited to, statements regarding TEGNA's future financial and operating results (including growth and earnings), capital allocation framework, plans, objectives, expectations and intentions and other statements that are not historical facts. These forward-looking statements are necessarily estimates reflecting the best judgment and current views, projections, estimates, expectations, plans, assumptions and beliefs about future events (in each case subject to change) of TEGNA's senior management and involve a number of risks, uncertainties and other factors, many of which may be beyond our control that could cause actual results to differ materially from those views, projections, estimates, expectations, plans, assumptions and beliefs expressed or implied in such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, risks and uncertainties related to:
Changes in the market price of TEGNA's shares, general market conditions, constraints, volatility, or disruptions in the capital markets;
The possibility that TEGNA's capital allocation plan, including dividends, share repurchases and/or strategic acquisitions, investments and partnerships may not enhance long-term stockholder value;
Legal proceedings, judgments or settlements;
TEGNA's ability to re-price or renew subscribers;
Changes in, or failure or inability to comply with, government regulations including, without limitation, regulations of the FCC, and adverse outcomes from regulatory proceedings;
The effects of extreme weather and climate events on our operations as well as our counterparties, customers, employees, third-party vendors and suppliers;
Changes in technology, including changes in the distribution and viewing of television programming;
The reaction by advertisers, programming providers, strategic partners, FCC or other government regulators to businesses that we may seek to acquire;
The risk that we may become responsible for certain liabilities of the businesses that we may acquire;
Future financial performance, including our ability to obtain additional financing in the future on favorable terms;
The failure of our business to produce projected revenues or cash flows;
Continued consolidation in the industry, including MVPDs, vMVPDs, advertising agencies and other important third parties;
The loss of key personnel and/or talent or expenditure of a greater amount of resources attracting, retaining and motivating key personnel than in the past;
Strikes or other union job actions that affect our operations, including, without limitation, failure to renew our collective bargaining agreements on mutually favorable terms;
Uncertainties inherent in the development of new business lines and business strategies;
Changes in laws or regulations under which we operate;
Competitor responses to our products and services;
Changes in consumer behaviors and impacts on and modifications to TEGNA's operations and business relating thereto;
The potential effects of tariffs on the demand for our advertising services; and
Other economic, competitive, governmental, technological and other factors and risks that may affect TEGNA's operations or financial results, which are discussed in our Annual Report on Form 10-K. Any forward-looking statements in this 8-K earnings release should be evaluated in light of these important factors.
The list of factors above is illustrative, but by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All subsequent written and oral forward-looking statements concerning the matters addressed in this 8-K earnings release and attributable to us or any person acting on our behalf are qualified by these cautionary statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, these expectations may not be achieved. We may change our intentions, beliefs or expectations at any time and without notice, based upon any change in our assumptions or otherwise. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
ADDITIONAL INFORMATION
TEGNA Inc. (NYSE:TGNA) helps people thrive in their local communities by providing the trusted local news and services that matter most. With 64 television stations in 51 U.S. markets, TEGNA reaches more than 100 million people monthly across the web, mobile apps, connected TVs, and linear television. Together, we are building a sustainable future for local news. For more information, visit TEGNA.com.
For media inquiries, contact:
For investor inquiries, contact:
Molly McMahon
Julie Heskett
Senior Director, Corporate Communications
Senior Vice President, Chief Financial Officer
703-873-6422
703-873-6747
CONSOLIDATED STATEMENTS OF INCOMETEGNA Inc. Unaudited, in thousands of dollars (except per share amounts)
Table No. 1
Quarter ended June 30,
2025
2024
Change
Revenues
$
675,045
$
710,363
(5
%)
Operating expenses:
Cost of revenues
422,896
432,044
(2
%)
Business units - Selling, general and administrative expenses
94,998
94,938
0
%
Corporate - General and administrative expenses
10,109
12,685
(20
%)
Depreciation
15,796
15,173
4
%
Amortization of intangible assets
8,832
13,663
(35
%)
Total
552,631
568,503
(3
%)
Operating income
122,414
141,860
(14
%)
Non-operating (expense) income:
Interest expense
(41,789
)
(41,748
)
0
%
Interest income
8,168
5,873
39
%
Other non-operating items, net
(627
)
(2,749
)
(77
%)
Total
(34,248
)
(38,624
)
(11
%)
Income before income taxes
88,166
103,236
(15
%)
Provision for income taxes
20,264
21,207
(4
%)
Net income
67,902
82,029
(17
%)
Net loss attributable to redeemable noncontrolling interest
20
115
(83
%)
Net income attributable to TEGNA Inc.
$
67,922
$
82,144
(17
%)
Earnings per share:
Basic
$
0.42
$
0.48
(13
%)
Diluted
$
0.42
$
0.48
(13
%)
Weighted average number of common shares outstanding:
Basic shares
161,472
169,512
(5
%)
Diluted shares
162,667
169,880
(4
%)
CONSOLIDATED STATEMENTS OF INCOMETEGNA Inc. Unaudited, in thousands of dollars (except per share amounts)
Table No. 1 (continued)
Six months ended June 30,
2025
2024
Change
Revenues
$
1,355,094
$
1,424,615
(5
%)
Operating expenses:
Cost of revenues
863,887
862,611
0
%
Business units - Selling, general and administrative expenses
190,545
197,198
(3
%)
Corporate - General and administrative expenses
20,265
27,483
(26
%)
Depreciation
31,275
29,483
6
%
Amortization of intangible assets
17,685
27,323
(35
%)
Asset impairment and other
—
1,097
***
Total
1,123,657
1,145,195
(2
%)
Operating income
231,437
279,420
(17
%)
Non-operating (expense) income:
Interest expense
(83,600
)
(84,116
)
(1
%)
Interest income
16,241
11,446
42
%
Other non-operating items, net
(2,444
)
147,009
***
Total
(69,803
)
74,339
***
Income before income taxes
161,634
353,759
(54
%)
Provision for income taxes
35,425
82,468
(57
%)
Net income
126,209
271,291
(53
%)
Net loss attributable to redeemable noncontrolling interest
384
413
(7
%)
Net income attributable to TEGNA Inc.
$
126,593
$
271,704
(53
%)
Earnings ...
