Tegna Reports Q2 Revenue Dip Amidst Growing Acquisition Buzz

Tegna announced a 5% drop in second-quarter revenue this morning, a decline largely driven by an expected cyclical downturn in political advertising. However, the results come as many industry observers increasingly view the broadcasting giant as a prime acquisition target, with widespread speculation that a sale could happen before the end of the year.

For the second quarter of 2025, Tegna's total revenue fell to $675 million. The most significant factor was a steep 87% drop in political advertising revenue, which settled at just $3.6 million compared to $27.8 million in the same quarter last year, a typical trend for an odd-numbered, non-election year. Advertising and marketing services also saw a 4% decrease to $288 million, which the company attributed to ongoing macroeconomic headwinds. In a stabilizing note, distribution revenue remained flat at $370 million, as contractual rate increases successfully offset subscriber declines.

The revenue slump impacted profitability, with the company's Adjusted EBITDA falling 14% to $151 million. Despite the dip, Tegna maintains a solid balance sheet, ending the quarter with $757 million in cash and cash equivalents and a net leverage ratio of 2.8x.

CEO Mike Steib framed the quarter as a period of strategic progress despite the financial headwinds. “We delivered on our financial commitments this quarter while making important progress on the strategic initiatives that will shape Tegna’s future, including accelerating our technology roadmap and expanding our local news coverage by 100 hours a day,” Steib said. He also extended his gratitude to retiring Chief Operating Officer Lynn Beall, noting her "extraordinary leadership and decades of service."

While Tegna's leadership focuses on internal reinvention, the chatter around a potential buyout continues to build. The company's valuable portfolio of local stations, combined with a predictable dip in an off-election year, makes it an attractive asset for larger media conglomerates looking to expand their footprint.

Is that Uncle Perry licking his chops over there?