Tegna Inc. has released its financial results for the third quarter ending September 30, 2025, and the figures paint a picture of both challenges and strategic initiatives. The total company revenue decreased by 19% to $651 million, primarily driven by lower political advertising revenue and reduced advertising and marketing services (AMS) revenue.
Specifically, distribution revenue declined by 1% to $358 million, while AMS revenue experienced a 12% decrease to $273 million. This drop in AMS revenue was attributed to ongoing macroeconomic challenges, the absence of summer Olympic games, and lower premion-related revenue following the exit of a major exclusive reseller partner. However, there was some offset from growth in local sports rights and local digital growth.
On the cost side, GAAP operating expenses decreased by 3% to $559 million, primarily due to core operational cost-cutting initiatives, including reductions in compensation and outside services expenses. Non-GAAP operating expenses decreased by 4% to $544 million, surpassing the company's guidance range.
GAAP and non-GAAP operating income totaled $92 million and $107 million, respectively. GAAP net income attributable to Tegna Inc. was $37 million, while non-GAAP net income attributable to Tegna Inc. was $53 million. The company's GAAP and non-GAAP earnings per diluted share were $0.23 and $0.33, respectively.
The challenges were also reflected in the company's total company adjusted EBITDA, which decreased by 52% to $131 million due to lower political advertising revenue and AMS revenue. However, Tegna managed to return $20 million to shareholders through dividends during the third quarter.
In terms of financial management, Tegna called the full $550 million of its 4.75% senior notes due March 15, 2026, and interest expense decreased by 8% to $39 million due to the early redemption of these notes. As of the end of the third quarter, the company's cash and cash equivalents totaled $233 million, and the net leverage finished the quarter at 2.9x.
Looking ahead, Tegna is in the process of being acquired by Nexstar Media Group for $22.00 per share in a cash transaction valued at $6.2 billion. The transaction is expected to close by the second half of 2026, subject to customary closing conditions, including Tegna shareholder and regulatory approvals. Consequently, Tegna will not be providing forward-looking guidance with respect to financial metrics during the pendency of the transaction.
Despite these challenges, Tegna's business units have demonstrated strength in their respective fields, with Tegna stations receiving six national Edward R. Murrow awards, and the extension of its agreement with Kroenke Sports and Entertainment to broadcast sports games for free over-the-air.
Following these announcements, the company's shares moved 0.55%, and are now trading at a price of $19.95. For the full picture, make sure to review TEGNA INC's 8-K report.
