TEGNA Q4 EPS Beats Estimates at $0.50 as Revenue Drops 18.9%
TEGNA reported Q4 non-GAAP EPS of $0.50, beating estimates by 11% despite a 58.7% year-over-year decline, and revenue fell 18.9% to $706.1 million, topping forecasts by 1.2%. The company generated $107 million in operating cash and held $291 million in cash while pausing guidance pending Nexstar merger closure.
1. Q4 Financial Results
TEGNA posted non-GAAP EPS of $0.50, beating estimates by 11.11% but down 58.7% from Q4 2024. Revenue fell 18.9% to $706.1 million, 1.23% above consensus, driven by cyclical ad revenue declines.
2. Segment Revenue Performance
Advertising and Marketing Services revenue grew 3.6% to $321.5 million due to strength in linear and local digital ads, partially offset by lower Premion revenues. Distribution revenue slid 1.3% to $358 million on subscriber losses partly mitigated by contractual rate increases; political revenue plunged 90.9% to $17.1 million.
3. Balance Sheet and Cash Flow
Operating cash flow reached $107 million in Q4, compared with $59 million in Q3, while adjusted free cash flow was $93 million. Cash and equivalents rose to $291 million and net leverage stood at 2.8x. The company returned $20 million in dividends during the quarter.
4. Merger Update and Guidance Suspension
TEGNA refrained from issuing forward-looking guidance as its pending Nexstar merger remains on track for H2 2026 closure. The suspension of outlook updates reflects regulatory and transaction-related considerations.