Sinclair (SBGI) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered solid results amid macroeconomic uncertainty, with adjusted EBITDA exceeding guidance midpoint despite a net loss of $64M and revenue declines year-over-year.

• Appointed Narinder Sahai as CFO and Conrad Clemson as CEO of EdgeBeam Wireless, supporting transformation and innovation.

• Acquired remaining 75% of Digital Remedy, rebranding Compulse and expanding digital media capabilities.

• Launched new sports podcasts, achieved record multicast network growth, and secured a six-year WTA media rights deal for Tennis Channel.

• Completed major debt recapitalization, extending maturities and repurchasing $81M of senior notes at a discount.

Financial highlights

• Q2 2025 total revenue was $784M, down 5% year-over-year, with adjusted EBITDA of $103M, above guidance midpoint but down 35% year-over-year.

• Operating income fell to $21M from $64M year-over-year; net loss attributable to shareholders was $64M.

• Local Media segment delivered $99M in adjusted EBITDA; Tennis Channel delivered $13M.

• Cash and equivalents at June 30, 2025, were $616M; liquidity of $1.3B including undrawn revolver.

• Repurchased $81M of 2027 notes for $77M, improving capital structure.

Outlook and guidance

• Q3 2025 total revenues expected between $744M and $776M; adjusted EBITDA guidance of $71M to $93M.

• Core advertising revenue expected at $303M–$314M; distribution revenue to be modestly lower year-over-year.

• Full-year 2025 cash tax expense guidance reduced to $46M, a $74M improvement due to new legislation.

• Full-year 2025 interest expense includes $68M in non-recurring refinancing fees.

• Management expects existing cash, cash flow, and borrowing capacity to be sufficient for debt service, capex, and working capital needs for the next twelve months.