Nexstar Media Group, Inc. (NASDAQ:NXST) saw an increase in its share price on Thursday following the release of its first-quarter FY25 financial results. The company reported a 3.9% year-over-year decrease in net revenue to $1.234 billion, which aligned with consensus expectations.
Nexstar Media Group boasts a diverse portfolio of media brands, including national television networks like The CW and NewsNation, as well as digital assets like The Hill and NewsNationNow.com. Despite the challenging advertising market, the company saw a 10.2% decline in advertising revenue to $460 million, primarily due to a drop in political advertising and non-political advertising revenue.
On the other hand, distribution revenue remained relatively flat year over year at $762 million, benefiting from annual rate increases, higher vMVPD subscribers, and CW affiliation additions. Adjusted EBITDA fell 15.7% year over year to $381 million, with the margin contracting to 30.9% from 35.2% a year ago. EPS came in at $3.37, down from $5.16 in the prior-year quarter but beating the consensus estimate of $3.35.
Adjusted free cash flow totaled $348 million, down from $389 million in the previous year quarter, with cash standing at $253 million as of March 31, 2025. The Board of Directors also announced a 10% increase in the quarterly cash dividend to $1.86 per share, payable on June 2.
Additionally, Nexstar Media Group repurchased shares worth $75 million in the quarter. CEO Perry A. Sook expressed optimism about the company’s performance, emphasizing their strategic use of scale to drive strong operating results and cash flow.
Looking ahead, the company remains focused on renewing distribution contracts, elevating The CW and NewsNation, preparing for the 2026 political cycle, and pursuing deregulation. Investors can gain exposure to Nexstar Media Group stock through Alpha Architect U.S. Quantitative Value ETF (NASDAQ:QVAL) and WisdomTree U.S. SmallCap Quality Growth Fund (NASDAQ:QSML).
As of the latest check on Thursday, Nexstar shares were up 8.45% to $169.07. The positive price action reflects investor confidence in the company’s ability to navigate challenges and capitalize on growth opportunities.
In conclusion, Nexstar Media Group’s solid performance in the face of a challenging advertising market underscores its resilience and strategic focus on driving long-term value for shareholders. The company’s diverse portfolio and strategic initiatives position it well for future growth and success in the media industry.
