Nexstar Media Group, Inc. (NXST) Income Statement

The 150.6% YoY growth in 2026Q2 is largely inorganic, driven by the TEGNA acquisition and political ad spending, as evidenced by the revenue jump from $1.4B in 2026Q1. However, the TTM revenue decline of -8.47% suggests underlying organic trends are weak, likely due to the absence of 2024 election-year spending and ongoing cord-cutting. Investors should monitor core advertising ex-political to gauge true demand.

The gross margin range of 37.2% to 64.7% over the past ten quarters indicates significant variability, likely due to changes in revenue mix between high-margin political advertising and lower-margin retransmission fees. The 2026Q2 margin of 64.7% is an outlier, possibly boosted by political and sports-related advertising, while the 2025Q3 margin of 37.2% may reflect higher programming costs. This volatility complicates margin forecasting and suggests limited pricing power against network partners.

Despite a 150.6% revenue surge in 2026Q2, operating margin contracted to 11.8% from 19.0% in the prior quarter, implying that incremental revenue carries lower margins or that integration costs are elevated. In contrast, 2024Q4's 28.0% operating margin was likely inflated by political spending, which carries high incremental margins. The inability to maintain operating margins as revenue normalizes suggests a high fixed-cost base and limited cost flexibility.

While gross margin improved in 2026Q2, SG&A expenses nearly doubled sequentially, likely reflecting TEGNA integration costs and investments in The CW and NewsNation. This indicates management is prioritizing long-term growth over near-term cost containment. The absence of R&D is typical for broadcasters, but the volatility in SG&A suggests that cost discipline may waver during acquisition periods.

The 2024Q4 results highlight the biennial political advertising boom, which boosted revenue to $1.5B and net income to $242M. The subsequent decline in 2025 quarters reflects the absence of such spending, with revenue falling to $1.2B and net income dropping to $70M by 2025Q3. This inflection underscores the company's dependence on political cycles and the challenge of sustaining growth in off-years.