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Jun 30
TEGNA Q2 2025 Earnings Report
TEGNA reported a 5% decrease in total revenue to $675 million in the second quarter of 2025, primarily due to lower political advertising and advertising and marketing services revenue, while achieving key guidance metrics and reaffirming its two-year adjusted free cash flow guidance.
Key Takeaways
TEGNA delivered on its financial commitments in Q2 2025, with total revenue decreasing 5% to $675 million, in line with guidance. This decline was mainly driven by lower political advertising revenue and advertising and marketing services (AMS) revenue. Despite the revenue decrease, the company saw flat distribution revenue and managed to reduce GAAP operating expenses by 3% to $553 million, leading to a GAAP net income of $68 million and non-GAAP EPS of $0.44.
Total company revenue decreased 5% to $675 million, aligning with guidance, primarily due to lower political advertising and AMS revenue.
Distribution revenue remained flat at $370 million, with contractual rate increases offsetting subscriber declines.
GAAP net income attributable to TEGNA Inc. was $68 million, and non-GAAP diluted EPS was $0.44.
Adjusted EBITDA decreased 14% to $151 million, while net cash flow from operations was $100 million and Adjusted Free Cash Flow was $96 million.
TEGNA
TEGNA
TEGNA Revenue by Segment
Revenue by Segment
Distribution Revenue
CapyFin.comAdvertising & Mktg Svcs Revenue
CapyFin.comPolitical Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
TEGNA reaffirmed its 2024/2025 two-year Adjusted Free Cash Flow guidance of $900 million to $1.1 billion. For Q3 2025, total company GAAP revenue is expected to decrease by 18% to 20% due to even-to-odd year comparisons of an election year and the Summer Olympics, while total non-GAAP operating expenses are projected to decrease by 2% to 3%.
Positive Outlook
- Reaffirmed 2024/2025 Two-Year Adjusted Free Cash Flow guidance of $900 million to $1.1 billion.
- Expected decrease in total non-GAAP operating expenses by 2% to 3% in Q3 2025.
- Continued focus on core operational cost-cutting initiatives.
- Strategic additions of over 100 hours of new daily local programming across 50+ markets.
- Appointment of vice presidents of content to enhance localized storytelling and align priorities.
Challenges Ahead
- Total company GAAP revenue expected to decrease by 18% to 20% in Q3 2025.
- Anticipated impact of even-to-odd year comparisons of an election year on revenue.
- Expected impact of the Summer Olympics on Q3 2025 revenue.
- Potential for future special items like retention costs to impact GAAP financial results.
- Uncertainties related to changes in market conditions, government regulations, and technology.