v3.26.3
Segment Data
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Data

Note 15: Segment Data

The Company’s segment structure reflects the financial information and reports used by its Chief Operating Decision Maker (“CODM”) to assess operating performance, allocate resources and make decisions regarding current operating and financial focus. The Company’s CODM is the Chairman and Chief Executive Officer.

The Company’s reportable segments are Broadcast and TEGNA. The Broadcast segment includes (i) television stations and related local websites owned, operated, programmed or provided sales and other services to by Nexstar (excluding TEGNA) in markets throughout the United States, (ii) NewsNation, a national cable news network, (iii) two owned and operated multicast networks and other multicast network services, and (iv) WGN-AM, a Chicago radio station. The TEGNA segment includes TEGNA’s owned and operated television stations, the Premion advertising platform, TEGNA’s multicast and podcast networks, and other digital assets. TEGNA became a reportable segment in the second quarter of 2026 following Nexstar’s acquisition on March 19, 2026 (see Note 3).

The Company’s other operating segments are nonreportable and include (i) The CW and (ii) legacy digital business units focused on the national marketplace. Intersegment transactions are eliminated in consolidation. The remaining activities of the Company are corporate functions and the management of certain real estate assets.

The CODM evaluates the performance of the Company’s operating segments based on net revenue and segment profit (loss). Segment profit (loss) includes net revenue, programming and related expenses, selling, general and administrative expenses attributable to the segments, and amortization of broadcast rights. Segment profit (loss) excludes unallocated corporate revenue and expenses, depreciation of property and equipment and amortization of intangible assets, impairment charges, transaction and other one-time expenses, gain on disposal of assets and business divestitures and non-operating income statement items.

The following table sets forth a breakdown of selected financial information for our reportable Broadcast and TEGNA segments and a reconciliation of their profit to income from operations (in millions):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Broadcast Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

1,305

 

 

$

1,131

 

 

$

3,764

 

 

$

3,450

 

Programming and related expenses (1)

 

 

(548

)

 

 

(556

)

 

 

(1,650

)

 

 

(1,646

)

Selling, general and administrative expenses (1)

 

 

(176

)

 

 

(184

)

 

 

(534

)

 

 

(543

)

Amortization of broadcast rights (1)

 

 

(14

)

 

 

(14

)

 

 

(43

)

 

 

(45

)

Broadcast segmentʼs profit

 

 

567

 

 

 

377

 

 

 

1,537

 

 

 

1,216

 

TEGNA Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

765

 

 

 

-

 

 

 

1,568

 

 

 

-

 

Programming and related expenses (1)

 

 

(389

)

 

 

-

 

 

 

(825

)

 

 

-

 

Selling, general and administrative expenses (1)

 

 

(125

)

 

 

-

 

 

 

(265

)

 

 

-

 

Amortization of broadcast rights (1)

 

 

(9

)

 

 

-

 

 

 

(20

)

 

 

-

 

TEGNA segmentʼs profit

 

 

242

 

 

 

-

 

 

 

458

 

 

 

-

 

Total reportable segmentsʼ profit

 

 

809

 

 

 

377

 

 

 

1,995

 

 

 

1,216

 

Other segmentsʼ loss, net

 

 

(23

)

 

 

(18

)

 

 

(63

)

 

 

(79

)

Corporate (unallocated)

 

 

(67

)

 

 

(42

)

 

 

(212

)

 

 

(144

)

Depreciation and amortization expense (2)

 

 

(155

)

 

 

(118

)

 

 

(434

)

 

 

(352

)

Transaction and other one-time expenses

 

 

(30

)

 

 

(23

)

 

 

(125

)

 

 

(33

)

Miscellaneous

 

 

(2

)

 

 

(1

)

 

 

(2

)

 

 

(1

)

Income from operations

 

$

532

 

 

$

175

 

 

$

1,159

 

 

$

607

 

 

(1)
The expenses included in the measure of our reportable segments’ profit are as follows:
•
Programming and related expenses – primarily include fees incurred under network affiliation agreements and operating costs to produce and air local news.
•
Selling, general and administrative expenses – primarily include (i) salaries, benefits and payroll taxes, commission, professional fees, travel and software license fees incurred by sales teams and (ii) salaries, benefits and payroll taxes, group insurance and office rental costs incurred in managing the segment’s business units.
•
Amortization of broadcast rights – the amortization of license fees for acquired programs from national program syndicators and certain production companies.
(2)
Includes depreciation of property and equipment and amortization of intangible assets. Excludes amortization of broadcast rights.

The following tables present the disaggregation of the Company’s revenue by source (in millions):

 

 

Reportable Segments

 

 

Other

 

 

Corporate

 

 

 

 

 

 

 

Three Months Ended September 30, 2026

 

Broadcast

 

 

TEGNA

 

 

Segments

 

 

(unallocated)

 

 

Eliminations(1)

 

 

Consolidated

 

Distribution

 

$

723

 

 

$

352

 

 

$

34

 

 

$

-

 

 

$

(18

)

 

$

1,091

 

Advertising

 

 

573

 

 

 

405

 

 

 

45

 

 

 

-

 

 

 

-

 

 

 

1,023

 

Other

 

 

9

 

 

 

8

 

 

 

2

 

 

 

1

 

 

 

(1

)

 

 

19

 

Total net revenue

 

$

1,305

 

 

$

765

 

 

$

81

 

 

$

1

 

 

$

(19

)

 

$

2,133

 

 

 

 

Reportable Segments

 

 

Other

 

 

Corporate

 

 

 

 

 

 

 

Nine Months Ended September 30, 2026

 

Broadcast

 

 

TEGNA

 

 

Segments

 

 

(unallocated)

 

 

Eliminations(1)

 

 

Consolidated

 

Distribution

 

$

2,227

 

 

$

768

 

 

$

104

 

 

$

-

 

 

$

(55

)

 

$

3,044

 

Advertising

 

 

1,511

 

 

 

787

 

 

 

135

 

 

 

-

 

 

 

-

 

 

 

2,433

 

Other

 

 

26

 

 

 

13

 

 

 

3

 

 

 

4

 

 

 

(1

)

 

 

45

 

Total net revenue

 

$

3,764

 

 

$

1,568

 

 

$

242

 

 

$

4

 

 

$

(56

)

 

$

5,522

 

 

 

 

 

Reportable Segments

 

 

Other

 

 

Corporate

 

 

 

 

 

 

 

Three Months Ended September 30, 2025

 

Broadcast

 

 

TEGNA

 

 

Segments

 

 

(unallocated)

 

 

Eliminations(1)

 

 

Consolidated

 

Distribution

 

$

694

 

 

$

-

 

 

$

29

 

 

$

-

 

 

$

(14

)

 

$

709

 

Advertising

 

 

427

 

 

 

-

 

 

 

49

 

 

 

-

 

 

 

-

 

 

 

476

 

Other

 

 

10

 

 

 

-

 

 

 

2

 

 

 

3

 

 

 

(2

)

 

 

13

 

Total net revenue

 

$

1,131

 

 

$

-

 

 

$

80

 

 

$

3

 

 

$

(16

)

 

$

1,198

 

 

 

 

Reportable Segments

 

 

Other

 

 

Corporate

 

 

 

 

 

 

 

Nine Months Ended September 30, 2025

 

Broadcast

 

 

TEGNA

 

 

Segments

 

 

(unallocated)

 

 

Eliminations(1)

 

 

Consolidated

 

Distribution

 

$

2,159

 

 

$

-

 

 

$

85

 

 

$

-

 

 

$

(40

)

 

$

2,204

 

Advertising

 

 

1,261

 

 

 

-

 

 

 

149

 

 

 

-

 

 

 

-

 

 

 

1,410

 

Other

 

 

30

 

 

 

-

 

 

 

13

 

 

 

7

 

 

 

(4

)

 

 

46

 

Total net revenue

 

$

3,450

 

 

$

-

 

 

$

247

 

 

$

7

 

 

$

(44

)

 

$

3,660

 

(1) The elimination of distribution revenue represents intersegment revenue generated by Other segments for services provided to the Broadcast segment.

Our primary sources of revenue include: (i) distribution, comprised primarily of retransmission revenue, carriage fees, affiliation fees and spectrum leasing revenue and (ii) advertising, comprised of non-political and political advertising.

Distribution revenue, our largest category of revenue, primarily results from compensation from cable, satellite and other multichannel video programming distributors (“MVPDs”) and virtual multichannel video programming distributors (“vMVPDs”) in return for our consent to the retransmission of the signals of our television stations and the carriage of NewsNation, typically based on the number of subscribers the MVPDs and vMVPDs have. We also generate distribution revenues from affiliation fees paid by affiliates of The CW and from programmers who use our spectrum in selected localities to air their content on our multicast streams. Distribution revenue is recognized at the point in time the broadcast signal or cable network feed is delivered to the distributors in the case of retransmission and carriage fee revenue or, in the case of affiliation fees and spectrum leasing revenue, as network programming and spectrum capacity are delivered to our affiliates and customers.

Advertising revenue primarily results from the sale to local, regional and national businesses, political candidates and other political advertisers of commercial airtime by our stations and networks and the sale of advertising on our owned or third-party websites, and through mobile and over-the-top (“OTT”) applications and other digital advertising solutions. Advertising revenue is generally highest in the second and fourth quarters of each year due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. Advertising revenue is generally higher during even-numbered years when congressional and/or presidential elections occur and advertising is aired during the Olympic Games. Advertising revenue is recognized at the time the advertisement airs or is delivered on our websites or mobile or OTT applications or the advertising solution is delivered.

Two customers each accounted for more than 10% of the Company’s consolidated net revenue during the periods presented in the accompanying condensed consolidated statements of operations. For the three and nine months ended September 30, 2026, the first customer represented approximately 12% and 13% of the consolidated net revenue, respectively, and the second customer represented approximately 11% and 12%, respectively, in each period. For the three and nine months ended September 30, 2025, the first customer represented approximately 13% and 14% of the consolidated net revenue, respectively, and the second customer represented approximately 13% in each period.

Assets by reportable segment are not reported because it is not used by the CODM to allocate resources or evaluate segment performance. For disclosure of goodwill by segment, see Note 4.