Nexstar Media Group, Inc. (NASDAQ: NXST) announced on May 8th its financial results for the first quarter ended March 31, 2025, reporting solid figures in Net Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow, primarily driven by record first-quarter distribution revenue and disciplined expense management.
Perry A. Sook, Founder, Chairman, and CEO of Nexstar, stated that the company is strategically leveraging its scale as the nation's largest local broadcaster to achieve strong operating results and cash flow, while also focusing on organic growth initiatives to elevate The CW and NewsNation.
For the first quarter, Nexstar reported Net Revenue of $1.23 billion, a decrease of 3.9% compared to $1.28 billion in the same period of 2024. This dip was primarily attributed to a reduction in political advertising revenue.
However, the company achieved a record first quarter Distribution Revenue of $762 million, a slight increase of 0.1% year-over-year. This growth reflects annual rate escalators, increased vMVPD subscribers, and the addition of CW affiliations.
Advertising Revenue for the quarter totaled $460 million, a 10.2% decrease from $512 million in Q1 2024, due to lower political advertising and softness in the non-political advertising market.
Net Income for the first quarter was $97 million, down from $167 million in the prior year, impacted by lower revenue, increased amortization of broadcast rights due to more sports programming on The CW, and a non-recurring gain in Q1 2024 from the sale of BMI ownership interest.
Adjusted EBITDA reached $381 million, a 15.7% decrease compared to $452 million in Q1 2024, primarily due to lower revenue and increased amortization of broadcast rights, partially offset by lower operating expenses from recent restructuring.
Adjusted Free Cash Flow was $348 million, a 10.5% decrease year-over-year, mainly due to changes in working capital and the cessation of cash contributions from partners in The CW.
Company Highlights:
- Nexstar raised its quarterly cash dividend by 10% for the twelfth consecutive year.
- The CW saw significant viewership increases for NASCAR Xfinity Series and WWE NXT.
- The CW expanded its sports programming with the addition of Grand Slam Track, AVP volleyball, and the Men’s HBCU All-Star Basketball Game.
- Nexstar partnered with the Texas Rangers to air baseball games across 17 stations in Texas, Oklahoma, Arkansas, and Louisiana.
- The company acquired WBNX-TV in Cleveland, Ohio, creating a new duopoly in the 19th largest market, with WBNX becoming a CW affiliate in September 2025.
Capital Allocation:
In Q1 2025, Nexstar used its cash flow to repay $31 million in debt, acquire WBNX for $22 million, pay $57 million in dividends, and repurchase $75 million of its common stock.
Looking ahead, Nexstar remains focused on renewing distribution contracts, continuing its path to profitability for The CW, preparing for the 2026 political cycle, and pursuing deregulation. As of March 31, 2025, the company's consolidated debt was $6.5 billion, with a first lien net leverage ratio of 1.67x and a total net leverage ratio of 2.93x.
