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E.W. SCRIPPS Co (SSP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $540.1M and diluted EPS was a loss of $0.59, with results impacted by financing transaction costs and lower political advertising; adjusted EBITDA was $88.9M, and net leverage declined to 4.4x .
  • Versus Wall Street consensus: revenue was a slight miss ($540.1M vs $542.1M*), EPS missed (-$0.59 vs -$0.22*); company-reported adjusted EBITDA ($88.9M) outpaced SPGI EBITDA consensus ($84.7M*) while Networks segment margin improved to 27% (+900 bps YoY) .
  • Management updated full-year guidance: cash interest cut to $170–$175M, capex to $45–$50M, cash taxes to $5–$10M; Q3 guide calls for Local Media revenue down mid-to-high 20% with core ~flat and Networks revenue down low single digits as expense reductions moderate .
  • Balance-sheet actions and regulatory momentum are key catalysts: a $750M second-lien notes offering refinanced 2027 notes and reduced near-term maturities; a station swap with Gray and FCC/legal developments could enable portfolio optimization and retrans margin expansion .

Estimates marked with * retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Networks margin expansion: Scripps Networks segment margin reached 27% in Q2 (+900 bps YoY), with segment profit of $55.9M on disciplined expense management (down >12% YoY) .
  • Streaming/CTV growth: Connected TV revenue rose 57% YoY with strong WNBA and NWSL demand, and streaming hours up ~40% (about 15% of total viewing), bolstering ad revenue resilience .
  • Sports monetization: NBA Finals on ABC and NHL playoffs (Golden Knights, Panthers) delivered >$5.5M in revenue in the quarter; CFO quantified >$7M combined playoff contribution, with local sports driving low-single-digit annual core ad growth tailwind .
    • “Our Scripps Sports strategy… is helping to drive streaming/connected TV revenue, which grew 57% in the second quarter.” — CEO Adam Symson .

What Went Wrong

  • Core ad softness and auto weakness: Local Media core advertising fell 1.9% to $136.5M; automotive was the weakest category amid macro/tariff uncertainty, contributing to Local Media segment profit decline to $55.8M from $88.1M .
  • Political compares: Political revenue dropped to $2.6M vs $28.2M in the prior-year election quarter, pressuring Local Media revenue (-8.3% YoY) .
  • EPS headwinds from transactions and preferred: $38.1M financing transaction costs, $5.6M deferred financing write-off, and $3.0M extinguishment loss added ~$0.13/share to the loss; preferred dividend reduced EPS by $0.18 despite non-payment .

Financial Results

Consolidated Performance vs Prior Periods and Consensus

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$728.4 $524.4 $540.1
Diluted EPS ($)$0.92 $(0.22) $(0.59)
Adjusted EBITDA ($USD Millions)$229.3 $75.6 $88.9
Revenue Consensus ($USD Millions)$724.0*$520.2*$542.1*
EPS Consensus ($)$1.02*$(0.255)*$(0.22)*
EBITDA Consensus ($USD Millions)$232.4*$63.3*$84.7*

Estimates marked with * retrieved from S&P Global.

Segment Performance

SegmentQ4 2024 Revenue ($M)Q1 2025 Revenue ($M)Q2 2025 Revenue ($M)Q4 2024 Segment Profit ($M)Q1 2025 Segment Profit ($M)Q2 2025 Segment Profit ($M)
Local Media$511.0 $325.4 $334.8 $198.8 $34.9 $55.8
Scripps Networks$216.1 $198.0 $205.8 $60.7 $64.1 $55.9
Other$6.0 $5.7 $4.2 $(8.3) $(6.4) $(7.0)

Local Media Revenue Components

ComponentQ4 2024 ($M)Q1 2025 ($M)Q2 2025 ($M)
Core Advertising$147.4 $132.1 $136.5
Political$174.4 $3.3 $2.6
Distribution$185.9 $187.2 $192.6
Other$3.3 $2.8 $3.0

Additional KPIs and Operating Data

  • Networks segment margin: 27% in Q2 2025 (vs ~18% in 2024) .
  • Connected TV revenue growth: +57% YoY in Q2 2025 .
  • Streaming hours: +40% in Q2; ~15% of total viewing .
  • Playoff/sports revenue: NBA on ABC >$5.5M in Q2; NBA + NHL playoffs combined >$7M contribution .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Local Media RevenueQ2 2025Down high single-digit % Actual: down 8.3% YoY In-line
Local Media ExpenseQ2 2025Up low single-digit % Actual: +0.8% YoY In-line
Networks RevenueQ2 2025About flat Actual: down 1.4% YoY Slightly below
Networks ExpenseQ2 2025Down low double-digit % Actual: down 12.4% YoY In-line
Local Media RevenueQ3 2025—Down mid-to-high 20% New
Local Media Core RevenueQ3 2025—About flat New
Local Media ExpenseQ3 2025—Down low-to-mid single digits New
Networks RevenueQ3 2025—Down low single digits New
Networks ExpenseQ3 2025—Down mid single digits New
Shared Services & CorporateQ3 2025—About $22M New
Cash Interest PaidFY 2025$175–$185M $170–$175M Lowered
Capital ExpendituresFY 2025$55–$60M $45–$50M Lowered
Cash Taxes PaidFY 2025$25–$30M $5–$10M Lowered

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Debt Refinancing & LeverageTransaction support agreement; leverage to 4.8x YE 2024; refinancing closed in April ]$750M notes at 9.875% closed Aug 6; payoff 2027 notes; leverage down to 4.4x; plan to pay down 2028 term loan via cash flow Improving balance sheet; extended maturities
Sports Strategy (WNBA/NWSL/NHL/NBA)Q1: ION adding SI Women’s Games & Ft. Myers Tip-Off; WNBA/NWSL premium rates Q2: >$5.5M NBA on ABC; >$7M combined playoffs; multiyear WNBA renewal; connected TV monetization strong Expanding inventory and monetization
Connected TV/StreamingQ1 Networks margin 32% on CTV growth Q2 CTV +57%; streaming hours +40%; ~15% of viewing Accelerating
Regulatory/Deregulation (FCC/Eighth Circuit)Expect FCC revisit ownership rules Eighth Circuit struck down Big Four rule; FCC Chairman Carr supportive; pursuing swaps/portfolio optimization Favorable tailwinds
Retrans & DistributionQ1: 25% households renewed; distribution guided flat Net retrans margin expansion expected; distribution ~flat; sub churn mid-single digits Margin mix improving
Macro/Advertising EnvironmentQ1: Uncertain macro; core down Auto weakness; hesitancy tied to tariffs/rates/jobs; core down 1.9% Cautious; potential Q4 political crowd-out uplift

Management Commentary

  • “We delivered a very solid financial performance for the second quarter in the face of a soft advertising climate. That included 900 basis points of Scripps Networks margin improvement.” — CEO Adam Symson .
  • “CTV revenue for the quarter was up 57%… Game inventory for both [WNBA/NWSL] leagues has been commanding premium advertising revenue rates.” — CFO Jason Combs .
  • “Between [refinancing transactions], we have now retired or extended the maturity of up to $1.7B… and only increased our cost of capital by just over 1%.” — CFO Jason Combs .
  • “I predict we will see net retrans margin expansion ahead.” — CEO Adam Symson .
  • “Our next maturity due is our 2028 term loan B-2, which we intend to pay off completely through cash flow.” — CEO Adam Symson .

Q&A Highlights

  • Q3 outlook and political cadence: Core ~flat amid early-quarter hesitancy, building into September with political crowd-out; political in off-year similar to past odd-years (~mid-$20Ms for full year) .
  • Deregulation/portfolio optimization: Active discussions for swaps/select asset sales to improve operating durability and accelerate debt paydown; Gray swap proceeding through FCC/DOJ .
  • Retrans margin and sub trends: Net retrans margin expansion expected largely from lower programming expenses; sub churn running mid-single digits with potential moderation from bundling .
  • Networks structure and sports mix: Sports drives premium rates and cross-network packages; continued search for financially disciplined sports partners; ION’s unique distribution in FAST differentiates monetization .
  • Preferred equity: Earliest takeout Jan ’26; intend to PIK dividend near-term to prioritize debt paydown; action contingent on leverage and rate environment .

Estimates Context

  • Revenue: Actual $540.1M vs consensus $542.1M* (slight miss) .
  • EPS: Actual $(0.59) vs consensus $(0.22)* (miss), impacted by financing costs and preferred dividend .
  • EBITDA: SPGI EBITDA consensus $84.7M*; company-reported adjusted EBITDA was $88.9M, reflecting expense controls and streaming strength .

Estimates marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Networks margin expansion is durable and driven by streaming/CTV and sports—near-term tailwinds should continue into Q3 despite modest revenue pressure .
  • Local Media core is holding up better than peers, aided by sports; expect seasonal political crowd-out to boost September and Q4 pacing .
  • Balance sheet risk reduced: $750M notes refinancing and April term loan/AR securitization actions push out maturities with leverage down to 4.4x; cash interest/capex guidance lowered, improving FY25 cash generation .
  • Regulatory catalysts: Eighth Circuit ruling and FCC tone support station swaps/duopolies and portfolio optimization—potential medium-term uplift to profitability and retrans margins .
  • Estimates likely to adjust: EPS expectations should reflect transaction costs/preferred impact; EBITDA trajectory may improve as cost reductions cycle and sports/CTV mix grows .
  • Watch auto ad recovery and macro clarity (rates/tariffs); management sees hesitancy as transitory with potential rebound, but near-term visibility remains limited .
  • Trading lens: Near-term catalysts include Q3 pacing into September political, continued sports monetization, and any FCC actions/regulatory approvals on swaps; medium-term thesis hinges on Networks margin maintenance, retrans margin expansion, and deleveraging execution .

Appendix: Other Relevant Press Releases (Context)

  • Station swap with Gray Media (announced July 7): Management expects a year-end close, creating new duopolies and deeper market coverage .
  • WNBA renewal (June 13): Multi-year extension for Friday Night Spotlight on ION after strong 2024 viewership gains .
  • Senior notes offering (July 28/29): Proposed $650M offering upsized and priced at $750M 9.875% second-lien notes due 2030 to redeem 2027 notes and prepay portion of 2028 term loan .