IRVING, August 19, 2026, 09:06 EDT — U.S. cash markets remain shut, with regular trading scheduled to begin at 09:30 EDT.
- Nexstar reported $147 million in second-quarter political advertising, rising from $9 million.
- Following the TEGNA acquisition financed by debt, net interest expense rose to $190 million.
- The mean of the five latest analyst price targets is $252.80, representing an increase of 36.8% over the most recent confirmed closing price.
Nexstar Media Group, Inc. NASDAQ:NXST is benefiting from a spike in advertising during the election season. The funding cost for its TEGNA acquisition is higher.
Political advertising for the second quarter totaled $147 million, compared with $9 million in the same period last year. Net interest expense amounted to $190 million, outpacing the campaign-ad revenue by $43 million.
The midterm season continued with Tuesday’s primaries in Florida, Alaska, and Wyoming. Voters in Florida picked their contenders for Senate and governor, as counting persisted into early Wednesday for Alaska’s top-four contests.
The votes are significant as local television continues to secure limited campaign inventory. Political revenue accounted for 17.1% of Nexstar’s advertising revenue for the quarter. This represented 7.4% of overall revenue.
Election income versus funding expenses
| Q2 measure | 2026 | 2025 | Investor read-through |
|---|---|---|---|
| Political advertising | $147m | $9m | Up $138m |
| Net interest expense | $190m | $97m | Up $93m |
| Interest minus political revenue | $43m | $88m | Financing costs stay above revenue |
| Interest / political revenue | 129% | 1,078% | Election cycle narrows shortfall |
| Incremental interest / incremental political revenue | 67% | — | Most of the gain offset by acquisition financing |
This comparison does not represent a profit bridge. Advertising revenue is received ahead of station expenses. Interest is listed beneath operating income. Nevertheless, the two figures illustrate how leverage shifts the election-year outcome.
Nexstar posted a quarterly revenue record of $1.99 billion. TEGNA contributed $697 million in revenue along with $187 million in adjusted EBITDA. Advertising from political campaigns and the World Cup provided additional support.
Operating results for the second quarter
| Measure | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net revenue | $1.993bn | $1.229bn | +62.2% |
| Distribution revenue | $1.116bn | $733m | +52.3% |
| Advertising revenue | $862m | $475m | +81.5% |
| Adjusted EBITDA | $633m | $389m | +62.7% |
| Adjusted free cash flow | $238m | $101m | +135.6% |
| Net income | $113m | $91m | +24.2% |
Perry Sook, founder and CEO, highlighted “strong political advertising revenue” for the quarter. He added that Nexstar anticipates robust free cash flow during the second half. Company statement and results
Quarterly interest was covered 1.25 times by adjusted free cash flow. Nexstar retired $409 million in debt and distributed $57 million in dividends. The company is currently prioritising debt reduction over significant share repurchases.
Shares last closed at $184.80 on August 17 at 16:00 EDT, according to independent verification. The stock has declined 27.3% from its 52-week peak of $254.30. The company paid a quarterly dividend of $1.86 per share.
Latest analyst ratings
| Firm | Recommendation | Target | Date | Upside vs. $184.80 |
|---|---|---|---|---|
| Citi | Buy | $215 | Aug. 12 | 16.3% |
| Barrington Research | Buy | $290 | Aug. 11 | 56.9% |
| Deutsche Bank | Buy | $240 | Aug. 10 | 29.9% |
| Wells Fargo | Buy | $249 | Aug. 7 | 34.7% |
| Guggenheim | Buy | $270 | July 21 | 46.1% |
Analysts cite the election cycle, broad distribution, and TEGNA assets as factors supporting cash flow. Their forecasts also rest on the expectation that balance-sheet pressures will ease. Markets, however, have yet to reflect this scenario.
The acquisition continues to be subject to a court-mandated hold-separate order. Nexstar has filed an appeal, and a district-court trial is set for July 2027. This delays any clear schedule for integration.
Risks: Political ad spending follows cycles and may displace regular commercials. Legal action could postpone TEGNA synergy benefits. Cord-cutting, soft local advertising demand, and elevated interest costs may strain cash flow following November.
Related articles: Stock Market
Campaign cash meets acquisition debt.
Political advertising is surging. The quarterly interest bill is still larger.
17 Aug 2026, 16:00 EDT
Q2 2026 · $9m year earlier
Q2 2026 · up $93m
Q2 2026 · up 136%
The campaign tailwind does not cover financing alone
Interest expense was 129% of political-ad revenue. Incremental interest absorbed 67% of the year-on-year political increase.
Why Q2 grew
TEGNA supplied most of the scale. Election spending supplied the sharpest organic lift.
Revenue mix
Distribution remains the anchor. Political ads were 17.1% of advertising.
Analysts price in deleveraging
Five recent targets average $252.80, 36.8% above the last verified close.
