Tegna Inc. has released its financial results for the second quarter of 2025, and the figures show both successes and challenges. The company reported a 5% decrease in total revenue to $675 million, attributed to lower political advertising revenue and a decline in advertising and marketing services (AMS) revenue. However, distribution revenue remained flat at $370 million due to subscriber declines being offset by contractual rate increases.
Operating expenses saw a 3% decrease to $553 million on a GAAP basis, and a 3% decrease to $549 million on a non-GAAP basis, primarily due to core operational cost-cutting initiatives. GAAP and non-GAAP operating income totaled $122 million and $126 million, respectively. Net income attributable to Tegna Inc. was $68 million on a GAAP basis and $71 million on a non-GAAP basis. Earnings per diluted share were reported at $0.42 on a GAAP basis and $0.44 on a non-GAAP basis.
Adjusted EBITDA decreased by 14% to $151 million, mainly due to lower political advertising revenue and AMS revenue, partially offset by cost benefits from operational cost-cutting initiatives. Net cash flow from operations was $100 million, and adjusted free cash flow was $96 million. Tegna returned $20 million to shareholders through dividends during the second quarter. Interest expense remained flat at $42 million, and the company reported cash and cash equivalents totaling $757 million at the end of the quarter, with net leverage finishing at 2.8x.
In terms of business updates, Tegna announced the addition of over 100 hours of new daily local programming across 50+ markets, aimed at increasing content and fueling distribution channels. The company also appointed vice presidents of content focused on enhancing localized storytelling and aligning priorities such as investigative journalism, weather, key events, and cross-platform news delivery. Additionally, Tegna and Fox Corporation reached a comprehensive multi-year deal that renews station affiliation agreements for six Tegna markets, covering approximately 7% of Tegna households.
Looking forward, Tegna reaffirmed its 2024/2025 two-year adjusted free cash flow guidance of $900 million to $1.1 billion and provided key guidance metrics for the third quarter of 2025, including expectations of a down -18% to -20% in total company GAAP revenue compared to the third quarter of 2024. The company also outlined expectations of down -2% to -3% in total non-GAAP operating expenses for the third quarter. The market has reacted to these announcements by moving the company's shares 0.0% to a price of $16.36. If you want to know more, read the company's complete 8-K report here.
