Sinclair Reports Third Quarter 2025 Financial Results
BALTIMORE--(BUSINESS WIRE)-- Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results for the three and nine months ended September 30, 2025.
Highlights:
- Met or exceeded guidance on all key financial metrics
- Adjusted EBITDA of $100 million
- Core advertising revenue grew by $20 million year-over-year on an as reported basis
- Redeemed, in full, $89 million of Sinclair Television Group ("STG") 5.125% Senior Unsecured Notes due 2027 on October 6, 2025.
CEO Comment:
"Sinclair delivered a strong third quarter, achieving the high end of guidance for advertising and distribution revenue, while media expenses and Adjusted EBITDA beat expectations. We expect to see continued improvement in core advertising trends in the fourth quarter and a sequential increase in distribution revenue. Our progress on partner station transactions continues, with eleven option exercises closed and additional deals pending FCC approval, and more transactions planned, representing at least $30 million in incremental annualized EBITDA once finalized. Looking ahead, we anticipate record mid-term political revenue in the upcoming cycle, and are encouraged by recent regulatory developments that should lead to much-needed industry consolidation and significant synergies for investors."
Recent Company Developments:
Content and Distribution:
- Tennis channel signed extensions with the International Tennis Federation (ITF) for Davis Cup (through 2028) and Billie Jean King Cup (through 2027).
- Year-to-date, Sinclair's newsrooms have won a total of 227 journalism awards, including 25 RTDNA regional Edward R. Murrow Awards.
Community:
- In July, Sinclair Cares ran a campaign partnering with the American Cancer Society to raise awareness and support free rides to medical treatments, helping recruit over 600 volunteer drivers for their Road to Recovery program.
Investment Portfolio:
- Sinclair Ventures, LLC (Ventures) made approximately $6 million in minority investments as required by outstanding funding commitments and received distributions of approximately $2 million.
Station Portfolio Optimization:
- As of November 1st, we have closed on 11 partner station acquisitions
- 10 more option exercises are pending FCC approval and 2 more have been approved and await final closing
- Expect to file several additional partner station acquisitions with the FCC pending the reopening of the Federal government
- Closed on 1 station swap, a 4-market sale of stations, acquired non-licensed assets in 2 markets and acquired the NBC affiliation in 1 market
Transactions:
- In October, STG redeemed, in full, $89 million of its 5.125% Senior Unsecured Notes due 2027 (the "2027 Notes") on October 6, 2025. The Notes were called at 100% of their par value plus any accrued interest and outstanding fees and expenses.
Financial Results:
Three Months Ended September 30, 2025 Consolidated Financial Results:
($ in millions) |
Three Months Ended |
 |
Percent Change |
|||||||||||
 |
September 30, 2025 |
 |
September 30, 2024 |
 |
June 30, 2025 |
 |
YOY |
 |
QTQ |
|||||
Total revenue |
$ |
773 |
 |
 |
$ |
917 |
 |
$ |
784 |
 |
 |
(16)% |
 |
(1)% |
Media revenue |
 |
765 |
 |
 |
 |
908 |
 |
 |
777 |
 |
 |
(16)% |
 |
(2)% |
Advertising revenue |
 |
321 |
 |
 |
 |
433 |
 |
 |
322 |
 |
 |
(26)% |
 |
—% |
Distribution revenue |
 |
422 |
 |
 |
 |
434 |
 |
 |
434 |
 |
 |
(3)% |
 |
(3)% |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||
Net (loss) income attributable to the Company |
 |
(1 |
) |
 |
 |
94 |
 |
 |
(64 |
) |
 |
(101)% |
 |
(98)% |
Adjusted EBITDA |
 |
100 |
 |
 |
 |
249 |
 |
 |
103 |
 |
 |
(60)% |
 |
(3)% |
Segment financial information is included in the following tables for the periods presented. The Local Media segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services, and includes multicast networks and original content. The Local Media segment assets are owned and operated by Sinclair Broadcast Group, LLC (SBG). The Tennis segment consists primarily of Tennis Channel, a cable network which includes coverage of most of tennis' top tournaments and original professional sport and tennis lifestyle shows; the Tennis Channel International subscription and streaming service; Tennis Channel streaming service; TennisChannel 2, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. Other includes non-broadcast digital solutions such as Digital Remedy, technical services, and other non-media investments.
Three months ended September 30, 2025 |
Local Media |
 |
Tennis |
 |
Other |
 |
Corporate and Eliminations |
 |
Consolidated |
|||||||
($ in millions) |
 |
 |
 |
 |
||||||||||||
Distribution revenue |
$ |
370 |
 |
$ |
52 |
 |
$ |
— |
 |
 |
$ |
— |
 |
 |
$ |
422 |
Core advertising revenue |
 |
269 |
 |
 |
14 |
 |
 |
38 |
 |
 |
 |
(6 |
) |
 |
 |
315 |
Political advertising revenue |
 |
6 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
6 |
Other media revenue |
 |
22 |
 |
 |
1 |
 |
 |
— |
 |
 |
 |
(1 |
) |
 |
 |
22 |
Media revenue |
$ |
667 |
 |
$ |
67 |
 |
$ |
38 |
 |
 |
$ |
(7 |
) |
 |
$ |
765 |
Non-media revenue |
 |
— |
 |
 |
— |
 |
 |
10 |
 |
 |
 |
(2 |
) |
 |
 |
8 |
Total revenue |
$ |
667 |
 |
$ |
67 |
 |
$ |
48 |
 |
 |
$ |
(9 |
) |
 |
$ |
773 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||
Media programming and production expenses |
$ |
378 |
 |
$ |
35 |
 |
$ |
— |
 |
 |
$ |
— |
 |
 |
$ |
413 |
Media selling, general and administrative expenses |
 |
165 |
 |
 |
15 |
 |
 |
30 |
 |
 |
 |
(7 |
) |
 |
 |
203 |
Non-media expenses |
 |
2 |
 |
 |
— |
 |
 |
12 |
 |
 |
 |
(2 |
) |
 |
 |
12 |
Amortization of program costs |
 |
21 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
21 |
Corporate general and administrative expenses |
 |
21 |
 |
 |
1 |
 |
 |
2 |
 |
 |
 |
16 |
 |
 |
 |
40 |
Stock-based compensation |
 |
9 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
2 |
 |
 |
 |
11 |
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
 |
3 |
 |
 |
— |
 |
 |
2 |
 |
 |
 |
— |
 |
 |
 |
5 |
Interest expense (net)(a) |
 |
81 |
 |
 |
— |
 |
 |
(5 |
) |
 |
 |
— |
 |
 |
 |
76 |
Capital expenditures |
 |
21 |
 |
 |
1 |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
22 |
Distributions to the noncontrolling interests |
 |
3 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
3 |
Cash distributions from investments |
 |
— |
 |
 |
— |
 |
 |
2 |
 |
 |
 |
— |
 |
 |
 |
2 |
Net cash taxes paid |
 |
 |
 |
 |
 |
 |
 |
 |
 |
3 |
||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||
Net income |
 |
 |
 |
 |
 |
 |
 |
 |
 |
1 |
||||||
Operating income |
 |
27 |
 |
 |
11 |
 |
 |
14 |
 |
 |
 |
6 |
 |
 |
 |
58 |
Adjusted EBITDA(b) |
 |
92 |
 |
 |
16 |
 |
 |
6 |
 |
 |
 |
(14 |
) |
 |
 |
100 |
Note: Certain amounts may not summarize to totals due to rounding differences. |
|
| Â | |
(a) |
Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income. |
| Â | |
(b) |
Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual transaction, implementation, legal, regulatory and other costs, as well as certain non-cash items such as stock-based compensation expense and other gains and losses less amortization of program costs. Refer to the reconciliation at the end of this press release and the Company’s website. |
Three months ended September 30, 2024 |
Local Media |
 |
Tennis |
 |
Other |
 |
Corporate and Eliminations |
 |
Consolidated |
|||||||
($ in millions) |
 |
 |
 |
 |
||||||||||||
Distribution revenue |
$ |
383 |
 |
$ |
51 |
 |
$ |
— |
 |
 |
$ |
— |
 |
 |
$ |
434 |
Core advertising revenue |
 |
283 |
 |
 |
8 |
 |
 |
9 |
 |
 |
 |
(5 |
) |
 |
 |
295 |
Political advertising revenue |
 |
138 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
138 |
Other media revenue |
 |
41 |
 |
 |
1 |
 |
 |
— |
 |
 |
 |
(1 |
) |
 |
 |
41 |
Media revenue |
$ |
845 |
 |
$ |
60 |
 |
$ |
9 |
 |
 |
$ |
(6 |
) |
 |
$ |
908 |
Non-media revenue |
 |
— |
 |
 |
— |
 |
 |
10 |
 |
 |
 |
(1 |
) |
 |
 |
9 |
Total revenue |
$ |
845 |
 |
$ |
60 |
 |
$ |
19 |
 |
 |
$ |
(7 |
) |
 |
$ |
917 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||
Media programming and production expenses |
$ |
384 |
 |
$ |
30 |
 |
$ |
— |
 |
 |
$ |
— |
 |
 |
$ |
414 |
Media selling, general and administrative expenses |
 |
188 |
 |
 |
13 |
 |
 |
6 |
 |
 |
 |
(6 |
) |
 |
 |
201 |
Non-media expenses |
 |
2 |
 |
 |
— |
 |
 |
12 |
 |
 |
 |
— |
 |
 |
 |
14 |
Amortization of program costs |
 |
18 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
18 |
Corporate general and administrative expenses |
 |
24 |
 |
 |
1 |
 |
 |
1 |
 |
 |
 |
15 |
 |
 |
 |
41 |
Stock-based compensation |
 |
8 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
3 |
 |
 |
 |
11 |
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
 |
7 |
 |
 |
— |
 |
 |
2 |
 |
 |
 |
— |
 |
 |
 |
9 |
Interest expense (net)(a) |
 |
74 |
 |
 |
— |
 |
 |
(5 |
) |
 |
 |
— |
 |
 |
 |
69 |
Capital expenditures |
 |
17 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
17 |
Distributions to the noncontrolling interests |
 |
3 |
 |
 |
— |
 |
 |
— |
 |
 |
 |
— |
 |
 |
 |
3 |
Cash distributions from investments |
 |
— |
 |
 |
— |
 |
 |
2 |
 |
 |
 |
— |
 |
 |
 |
2 |
Net cash taxes paid |
 |
 |
 |
 |
 |
 |
 |
 |
 |
1 |
||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||
Net income |
 |
 |
 |
 |
 |
 |
 |
 |
 |
96 |
||||||
Operating income (loss) |
 |
182 |
 |
 |
11 |
 |
 |
1 |
 |
 |
 |
(15 |
) |
 |
 |
179 |
Adjusted EBITDA(b) |
 |
244 |
 |
 |
16 |
 |
 |
2 |
 |
 |
 |
(13 |
) |
 |
 |
249 |
Note: Certain amounts may not summarize to totals due to rounding differences. |
|
| Â | |
(a) |
Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income. |
| Â | |
(b) |
Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual transaction, implementation, legal, regulatory and other costs, as well as certain non-cash items such as stock-based compensation expense and other gains and losses less amortization of program costs. Refer to the reconciliation at the end of this press release and the Company’s website. |
Consolidated Balance Sheet and Cash Flow Highlights:
- Total Company debt was $4,101 million, all of which is indebtedness of STG.
- Cash and cash equivalents was $526 million, of which $122 million was SBG cash and $404 million was Ventures cash. In addition the Company has $650 million of available borrowing capacity under its revolver, bringing available liquidity to $1.2 billion.
-
STG Credit Agreement Leverage Metrics1
- First Out First Lien Leverage Ratio – 1.9x (Covenant – 3.5x2)
-
Total Leverage Ratio – 6.0x (Covenant –
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.