Nasdaq:NXST
NEXSTAR MEDIA GROUP, INC.
A premier US broadcast television station owner with a dominant market presence and robust advertising revenue streams.
Key Metrics
Investment Thesis
Bull Case
An investor might consider this stock if they believe in a media consolidation tailwind that could allow NEXSTAR to negotiate better affiliate rates or sell stations at a premium. The company's dominant market positions in top US metros offer a defensive moat against pure-play digital ad competitors. Additionally, the massive debt issuance of $3.39B suggests potential balance sheet optimization opportunities if interest rates stabilize.
Bear Case
The bear case centers on the alarming drop in profitability, with net income falling to just 1.7% of revenue compared to historical norms. The company's liquidity position is fragile given the $280M cash balance against over $7B in total liabilities and a massive receivables backlog. High operating leverage means any slight decline in viewership or ad rates could trigger significant earnings volatility.
About NEXSTAR MEDIA GROUP, INC.
NEXSTAR Media Group Inc. is a leading broadcast television station owner and operator serving major markets across the United States. The company generates revenue primarily through advertising sales and affiliate fees derived from its extensive portfolio of local stations. Its operations are characterized by high accounts receivable balances relative to cash, indicating strong brand leverage within the media landscape.
Analysis
Management Discussion
Recent financial performance shows a decline from $5.41B revenue in 2024 to $4.95B in the latest period, accompanied by a sharp drop in net income from $683M to $83M. This deterioration coincides with massive cash outflows for financing (-$582M) and investing (-$173M), likely reflecting aggressive debt repayment or asset restructuring efforts. Despite high operating profits of $849M, the low CFO/Net Income ratio of 83% suggests significant non-cash adjustments or working capital pressures affecting cash generation.
Industry Overview
The broadcast television industry is maturing and facing pressure from streaming services, forcing owners to diversify into digital advertising and data analytics. Consolidation remains a key trend as smaller station groups seek buyers to achieve scale and reduce operational costs. Regulatory changes regarding local content requirements also impact revenue models for traditional broadcasters.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.21B | $4.93B | $5.41B | $4.95B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $5.21B | $4.93B | $5.41B | $4.95B |
| Operating Expenses | $3.90B | $4.22B | $4.14B | $4.10B |
| Operating Income | $1.31B | $708.0M | $1.27B | $849.0M |
| G&A | $1.10B | $1.10B | $1.09B | $1.06B |
| Stock-Based Comp | $61.6M | $60.0M | $78.0M | $78.0M |
| D&A | $662.1M | $941.0M | $808.0M | $471.0M |
| Depreciation | $159.9M | $176.0M | $185.0M | $168.0M |
| Amortization | $309.3M | $311.0M | $299.0M | $302.0M |
| Other OpEx | $2.80B | $3.13B | $3.05B | $3.04B |
| Non-Operating Income | $-95.0M | $-307.0M | $-309.0M | $-699.0M |
| Pre-Tax Income | $1.22B | $401.0M | $959.0M | $150.0M |
| Income Tax | $273.6M | $131.0M | $276.0M | $67.0M |
| Continuing Ops | $943.5M | $270.0M | $683.0M | $83.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $943.5M | $270.0M | $683.0M | $83.0M |
| Minority Interest | $-27.6M | $-76.0M | $-39.0M | $-26.0M |
| Net to Common | $971.1M | $346.0M | $722.0M | $109.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.61B | $1.47B | $1.30B | $1.47B |
| Cash & Equivalents | $204.1M | $135.0M | $144.0M | $280.0M |
| Accounts Receivable | $1.08B | $1.09B | $1.03B | $1.07B |
| Prepaid Expenses | $121.4M | $88.0M | $41.0M | $57.0M |
| Other Current Assets | $209.6M | $148.0M | $84.0M | $61.0M |
| Long-Term Assets | $11.06B | $10.61B | $10.17B | $9.37B |
| PP&E (Net) | $1.26B | $1.27B | $1.21B | $1.16B |
| Goodwill | $2.96B | $2.95B | $2.92B | $2.91B |
| Operating Leases | $287.8M | $290.0M | $276.0M | $265.0M |
| LT Investments | $1.12B | $958.0M | $877.0M | $396.0M |
| Other LT Assets | $4.32B | $4.20B | $4.02B | $4.25B |
| Total Assets | $12.68B | $12.08B | $11.47B | $10.85B |
| Current Liabilities | $893.2M | $961.0M | $783.0M | $711.0M |
| Accounts Payable | $197.7M | $235.0M | $133.0M | $133.0M |
| Current Debt | $124.3M | $124.0M | $124.0M | $111.0M |
| Current Leases | $49.6M | $47.0M | $37.0M | $41.0M |
| Other Current Liab | $202.1M | $205.0M | $175.0M | $112.0M |
| Long-Term Liabilities | $9.02B | $8.80B | $8.42B | $8.07B |
| Long-Term Debt | $6.83B | $6.71B | $6.40B | $6.22B |
| LT Operating Leases | $238.5M | $246.0M | $253.0M | $242.0M |
| Other LT Liab | $1.95B | $1.84B | $1.76B | $1.61B |
| Total Liabilities | $9.91B | $9.77B | $9.20B | $8.78B |
| Shareholders' Equity | $2.77B | $2.31B | $2.27B | $2.06B |
| Paid-In Capital | $1.29B | $1.28B | $1.30B | $1.33B |
| Retained Earnings | $3.03B | $3.19B | $3.67B | $3.54B |
| AOCI | $26.9M | $1.0M | $-1.0M | $-15.0M |
| Treasury Stock | $1.61B | $2.17B | $2.72B | $2.79B |
| Total L&E | $12.68B | $12.08B | $11.47B | $10.85B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $943.5M | $270.0M | $683.0M | $83.0M |
| Non-Cash Adjustments | $465.0M | $561.0M | $699.0M | $701.0M |
| Working Capital Changes | $-5.5M | $168.0M | $-132.0M | $107.0M |
| Cash from Operations | $1.40B | $999.0M | $1.25B | $891.0M |
| Capital Expenditures | $157.3M | $149.0M | $145.0M | $148.0M |
| Cash from Investing | $125.2M | $-173.0M | $-102.0M | $-173.0M |
| Debt Issuances | $2.48B | $20.0M | $55.0M | $3.39B |
| Share Buybacks | $880.7M | $605.0M | $601.0M | $125.0M |
| Dividends Paid | $142.2M | $191.0M | $219.0M | $226.0M |
| Cash from Financing | $-1.51B | $-899.0M | $-1.15B | $-582.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $13.2M | $-73.0M | $-3.0M | $136.0M |
| Beginning Cash | $206.5M | $220.0M | $147.0M | $144.0M |
| Ending Cash | $219.7M | $147.0M | $144.0M | $280.0M |
Frequently Asked Questions
How does NEXSTAR MEDIA GROUP, INC. make money?
The company operates through two primary business segments: Network Programming (affiliate fees from Fox, NBC, ABC, and CW) and Local Advertising (direct sales of commercial inventory). Additional revenue streams include digital media services, data analytics solutions for local markets, and content distribution rights to third parties.
What are the main risks for NXST?
First, heavy reliance on advertising revenue exposes the company to economic downturns that suppress consumer spending. Second, the significant long-term debt load of $6.22B creates interest rate sensitivity and refinancing risks. Third, the high proportion of current assets tied up in accounts receivable ($1.07B) versus cash ($280M) suggests potential liquidity strain or collection inefficiencies.
What is NXST's competitive advantage?
First, the company controls premium real estate assets in top-tier US broadcast markets with high barriers to entry. Second, its diversified portfolio across multiple major networks provides stable affiliate fee income regardless of individual network performance. Third, the substantial goodwill and established local brand loyalty create a sticky customer base that resists digital disruption.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.