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:

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:

Community:

Investment Portfolio:

Station Portfolio Optimization:

Transactions:

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

(3)%

Net (loss) income attributable to the Company

)

(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

—

422

Core advertising revenue

269

)

315

Political advertising revenue

—

Other media revenue

—

)

Media revenue

667

)

765

Non-media revenue

—

)

Total revenue

667

)

773

Media programming and production expenses

378

—

413

Media selling, general and administrative expenses

165

)

203

Non-media expenses

—

)

Amortization of program costs

—

Corporate general and administrative expenses

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Interest expense (net) (a)

—

)

—

Capital expenditures

—

Distributions to the noncontrolling interests

—

Cash distributions from investments

—

Net cash taxes paid

Net income

Operating income

Adjusted EBITDA (b)

(14

)

100

Note: Certain amounts may not summarize to totals due to rounding differences.

(a)

Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(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

—

434

Core advertising revenue

283

)

295

Political advertising revenue

138

—

138

Other media revenue

—

)

Media revenue

845

)

908

Non-media revenue

—

)

Total revenue

845

)

917

Media programming and production expenses

384

—

414

Media selling, general and administrative expenses

188

)

201

Non-media expenses

—

Amortization of program costs

—

Corporate general and administrative expenses

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Interest expense (net) (a)

—

)

—

Capital expenditures

—

Distributions to the noncontrolling interests

—

Cash distributions from investments

—

Net cash taxes paid

Net income

Operating income (loss)

182

(15

)

179

Adjusted EBITDA (b)

244

(13

)

249

Note: Certain amounts may not summarize to totals due to rounding differences.

(a)

Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(b)

Consolidated Balance Sheet and Cash Flow Highlights:

Notes:

Certain reclassifications have been made to prior years' financial information to conform to the presentation in the current year.

Due to rounding, some segment numbers may not tie to consolidated totals.

1 Ratios as calculated and defined in STG’s bank credit agreement dated February 12, 2025.

2 The First-Out First Lien Leverage Ratio covenant in the STG Credit Agreement is only applicable if more than 35% of the first lien revolving credit facility is drawn and outstanding as of the end of the respective quarter. As of September 30, 2025, STG had no amounts outstanding under its first lien revolving credit facility.

Outlook:

The Company currently expects to achieve the following results for the three months ending December 31, 2025 and the twelve months ending December 31, 2025.

For the three months ending December 31, 2025 ($ in millions)

Local Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

Core advertising revenue

$296 to 312

$45 to 49

$(8) to (9)

$340 to 360

Political advertising revenue

18 to 21

—

18 to 21

Advertising revenue

$314 to 334

$45 to 49

$(8) to (9)

$358 to 381

Distribution revenue

377 to 385

52 to 56

—

429 to 441

Other media revenue

—

(1)

Media revenue

$714 to 742

$59 to 63

$45 to 49

$(9) to (10)

$809 to 845

Non-media revenue

—

(1)

Total revenue

$714 to 742

$59 to 63

$52 to 56

$(10)

$815 to 851

Media programming & production expenses and media selling, general and administrative expenses

$553 to 563

$46 to 48

$39 to 40

$(8)

$630 to 644

Non-media expenses

—

Amortization of program costs

—

Corporate general and administrative

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Interest expense (net) (a)

—

(5)

—

Capital expenditures

17 to 19

—

18 to 20

Net cash tax payments

9 to 12

Operating income

$60 to 79

$7 to 9

$0 to 2

$(14) to (16)

$54 to 76

Adjusted EBITDA (b)

$131 to 150

$12 to 15

$3 to 5

$(15) to (17)

$132 to 154

Note: Certain amounts may not summarize to totals due to rounding differences.

Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

For the twelve months ending

December 31, 2025 ($ in millions)

Local Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

Core advertising revenue

$1,108 to 1,125

$45

$136 to 140

$(26) to (27)

$1,263 to 1,283

Political advertising revenue

36 to 39

—

36 to 39

Advertising revenue

$1,144 to 1,164

$45

$136 to 140

$(26) to (27)

$1,299 to 1,322

Distribution revenue

1,522 to 1,530

214 to 218

—

1,736 to 1,748

Other media revenue

—

(5)

Media revenue

$2,754 to 2,782

$262 to 266

$136 to 140

$(31) to (32)

$3,121 to 3,157

Non-media revenue

—

(4)

Total revenue

$2,754 to 2,782

$262 to 266

$167 to 171

$(35)

$3,148 to 3,184

Media programming & production expenses and media selling, general and administrative expenses

$2,198 to 2,208

$195 to 197

$113 to 114

$(30)

$2,476 to 2,490

Non-media expenses

—

(3)

Amortization of program costs

—

Corporate general and administrative

110

178

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Interest expense (net) (a)

376

—

(20)

—

356

Capital expenditures

71 to 73

—

73 to 75

Net cash tax payments

44 to 47

Operating income

$164 to 183

$44 to 46

$14 to 16

$(76) to (78)

$147 to 169

Adjusted EBITDA (b)

$425 to 444

$64 to 67

$12 to 14

$(54) to (56)

$447 to 469

Note: Certain amounts may not summarize to totals due to rounding differences.

(a)

Interest expense (net) excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income. Includes $68 million of non-recurring fees and expenses related to the comprehensive refinancing, which closed in the three months ended March 31, 2025.

(b)

Preliminary 2026 Outlook:

Note the Company plans to provide full 2026 guidance in the fourth quarter 2025 earnings release. At that time, the Company plans to shift to an annual guidance framework, replacing the current quarterly approach. This change reflects how the Company manages its business and aligns with its focus on the fundamental drivers of sustainable and long-term value creation.

Sinclair Conference Call:

The senior management of Sinclair will hold a conference call to discuss the Company's third quarter 2025 results on Wednesday, November 5, 2025, at 4:30 p.m. ET. The call will be webcast live and can be accessed at www.sbgi.net under "Investor Relations/Events and Presentations." After the call, an audio replay will remain available at www.sbgi.net. The press and the public will be welcome on the call in a listen-only mode. The dial-in number is (888) 506-0062, with entry code 543490.

About Sinclair:

Sinclair, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 179 television stations in 81 markets affiliated with all major broadcast networks; and owns Tennis Channel, the premium destination for tennis enthusiasts, and multicast networks CHARGE, Comet, ROAR and The Nest. Sinclair’s AMP Media produces a growing portfolio of digital content and original podcasts. Additional information about Sinclair can be found at www.sbgi.net.

Sinclair, Inc. and Subsidiaries

Preliminary Unaudited Consolidated Statements of Operations

(In millions, except share and per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

REVENUE:

Media revenue

765

908

2,312

2,519

Non-media revenue

Total revenue

773

917

2,333

2,544

OPERATING EXPENSES:

Media programming and production expenses

413

414

1,251

1,247

Media selling, general and administrative expenses

203

201

595

591

Amortization of program costs

Non-media expenses

Depreciation of property and equipment

Corporate general and administrative expenses

137

149

Amortization of definite-lived intangible assets

108

113

Gain on asset dispositions and other, net

(36

)

(13

)

(19

)

(11

)

Total operating expenses

715

738

2,240

2,259

Operating income

179

285

OTHER INCOME (EXPENSE):

Interest expense including amortization of debt discount and deferred financing costs

(85

)

(78

)

(311

)

(230

)

Gain on extinguishment of debt

—

(Loss) income from equity method investments

)

—

)

Other income (expense), net

(55

)

Total other expense, net

(58

)

(54

)

(369

)

(115

)

Income (loss) before income taxes

—

125

(276

)

170

INCOME TAX BENEFIT (PROVISION)

(29

)

(30

)

NET INCOME (LOSS)

(215

)

140

Net income attributable to the noncontrolling interests

)

NET (LOSS) INCOME ATTRIBUTABLE TO SINCLAIR

)

(221

)

134

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR:

Basic earnings per share

(0.02

)

1.43

(3.20

)

2.06

Diluted earnings per share

(0.02

)

1.43

(3.20

)

2.05

Basic weighted average common shares outstanding (in thousands)

69,660

66,355

68,921

65,570

Diluted weighted average common and common equivalent shares outstanding (in thousands)

69,660

66,526

68,921

65,709

Adjusted EBITDA is a non-GAAP operating performance measure that management and the Company’s Board of Directors use to evaluate the Company’s operating performance and for executive compensation purposes. The Company believes that Adjusted EBITDA provides useful information to investors by allowing them to view the Company’s business through the eyes of management and is a measure that is frequently used by industry analysts, investors and lenders as a measure of relative operating performance.

Adjusted EBITDA is provided on a forward-looking basis under the section entitled “Outlook” above. The Company has not included a reconciliation of projected Adjusted EBITDA to net income, which is the most directly comparable GAAP measure, for the periods presented in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s projected Adjusted EBITDA excludes certain items that are inherently uncertain and difficult to predict including, but not limited to, income taxes. Due to the variability, complexity and limited visibility of the adjusting items that would be excluded from projected Adjusted EBITDA in future periods, management does not rely upon them for internal use or measurement of operating performance, and therefore cannot create a quantitative projected Adjusted EBITDA to net income reconciliation for the periods presented without unreasonable efforts. A quantitative reconciliation of projected Adjusted EBITDA to net income for the periods presented would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between projected Adjusted EBITDA to net income for the periods presented will consist of items similar to those described in the reconciliation of historical results below. The timing and amount of any of these excluded items could significantly impact the Company’s net income for a particular period. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.

In addition to the reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income, below, the Company also discloses a reconciliation of the Adjusted EBITDA of its segments to its more directly comparable GAAP measure, segment operating income.

Non-GAAP measures are not formulated in accordance with GAAP, are not meant to replace GAAP financial measures and may differ from other companies’ uses or formulations. Further discussions and reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures can be found on its website www.sbgi.net.

Sinclair, Inc. and Subsidiaries

Reconciliation of Non-GAAP Measurements - Unaudited

All periods reclassified to conform with current year GAAP presentation

(in millions)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Reconciliation of Consolidated Sinclair, Inc. Net Income (Loss) to Consolidated Adjusted EBITDA

Net income (loss)

(215

)

140

Add: Income tax (benefit) provision

)

(61

)

Add: Other income

)

(29

)

Add: Loss (income) from equity method investments

—

(92

)

Add: (Income) loss from other investments and impairments

(21

)

(15

)

Add: Gain on extinguishment of debt/insurance proceeds

—

)

Add: Interest expense

311

230

Less: Interest income

)

(22

)

(21

)

Less: Gain on asset dispositions and other, net

(36

)

(13

)

(19

)

(11

)

Add: Amortization of intangible assets & other assets

108

113

Add: Depreciation of property & equipment

Add: Stock-based compensation

Add: Non-recurring and unusual transaction, implementation,

legal, regulatory and other costs

Adjusted EBITDA

100

249

315

546

Three months ended September 30, 2025

Local Media

Tennis

Other

($ in millions)

Total revenue

667

Media programming and production expenses

378

—

Media selling, general and administrative expenses

165

Depreciation and intangible amortization expenses

Amortization of program costs

—

Corporate general and administrative expenses

Non-media expenses

—

Gain on asset dispositions and other, net

)

—

(11

)

Segment operating income

Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA:

Segment operating income

Depreciation and intangible amortization expenses

Gain on asset dispositions and other, net

)

—

(11

)

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Segment Adjusted EBITDA

Three months ended September 30, 2024

Local Media

Tennis

Other

($ in millions)

Total revenue

845

Media programming and production expenses

384

—

Media selling, general and administrative expenses

188

Depreciation and intangible amortization expenses

Amortization of program costs

—

Corporate general and administrative expenses

Non-media expenses

—

Gain on asset dispositions and other, net

(11

)

—

)

Segment operating income

182

Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA:

Segment operating income

182

Depreciation and intangible amortization expenses

Gain on asset dispositions and other, net

(11

)

—

)

Stock-based compensation

—

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs

—

Segment Adjusted EBITDA

244

Forward-Looking Statements:

The matters discussed in this news release, particularly those in the section labeled “Outlook,” include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words “outlook,” “intends to,” “believes,” “anticipates,” “expects,” “achieves,” “estimates,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, the rate of decline in the number of subscribers to services provided by traditional and virtual multi-channel video programming distributors (“Distributors”); the Company’s ability to generate cash to service its substantial indebtedness; the successful execution of outsourcing agreements; the successful execution of retransmission consent agreements; the successful execution of network and Distributor affiliation agreements; the Company’s ability to identify and consummate acquisitions and investments, to manage increased financial leverage resulting from acquisitions and investments, and to achieve anticipated returns on those investments once consummated; the Company’s ability to compete for viewers and advertisers; pricing and demand fluctuations in local and national advertising; the appeal of the Company’s programming and volatility in programming costs; material legal, financial and reputational risks and operational disruptions resulting from a breach of the Company’s information systems; the impact of FCC and other regulatory proceedings against the Company; compliance with laws and uncertainties associated with potential changes in the regulatory environment affecting the Company’s business and growth strategy; the impact of pending and future litigation claims against the Company; the Company’s limited experience in operating or investing in non-broadcast related businesses; the outcome and timing of the strategic review process, which may be suspended or modified at any time; the possibility that the Company may decide not to undertake any transactions following the Board’s strategic review process; the Company’s inability to consummate any proposed transactions resulting from the strategic review; the potential for disruption to the Company’s business resulting from the strategic review process; potential adverse effects on the Company’s stock price from the announcement, suspension or consummation of the strategic review process and the results thereof; and any risk factors set forth in the Company’s recent reports on Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.

Category: Financial