Breaking Down TEGNA Inc. (TGNA) Financial Health: Key Insights for Investors

You're looking at TEGNA Inc. (TGNA) right now, trying to square the circle between a major, value-unlocking merger and some tough near-term financial reports-and honestly, that tension is the whole story. The market is defintely focused on the long game, especially since shareholders overwhelmingly approved the Nexstar Media Group, Inc. merger on November 18, 2025, essentially valuing the company at its current market capitalization of about $3.2 billion. But you can't ignore the 2025 fiscal reality: analysts project full-year Revenue to land around $2.77 billion, representing a significant drop from the prior year, and the Q3 2025 earnings call showed a sharp 19% year-over-year revenue decline, which hammered the Earnings Per Share (EPS) forecast down to just $1.63 for the year. Here's the quick math: the core business is facing cyclical and macroeconomic headwinds, but the two-year Adjusted Free Cash Flow guidance remains solid at $900 million to $1.1 billion, which is a powerful backstop. So, the question is whether the stock's current average analyst price target of $20.00 fully prices in the regulatory risks still facing that 2026 merger close, or if the strong underlying cash generation provides enough of a cushion to wait it out.

Revenue Analysis

You're looking at TEGNA Inc. (TGNA) and the headline numbers from 2025 probably look rough, but you need to look past the cyclical noise. The direct takeaway is that while total revenue for the third quarter of 2025 fell 19% year-over-year to $651 million, this steep drop was largely predictable due to the absence of a major political election cycle in the odd-numbered year.

The company's revenue streams are defintely a two-part story: Distribution and Advertising & Marketing Services (AMS). Distribution revenue, which comes from retransmission consent fees (payments from cable and satellite providers to carry their signals), is the more stable, dominant segment. Honestly, it's the bedrock of their financial model.

Here's the quick math on how the segments contributed to the Q3 2025 revenue:

The year-over-year revenue growth rate is the clearest sign of the political cycle's impact. The Q3 2025 total revenue decline of 19% is directly tied to the political advertising segment crashing by 92%-from a high-water mark during the 2024 election cycle to just $10 million in Q3 2025. What this estimate hides is that the core business, outside of political ads, is also facing headwinds, but the cyclical drop is the main driver of the overall percentage decrease.

You need to focus on the nuances within the two primary segments. Distribution revenue, at $358 million in Q3 2025, only saw a slight 1% dip, which shows the power of contractual rate increases offsetting the ongoing trend of subscriber declines, or cord-cutting. That's a strong defense against a tough industry trend. On the flip side, the 12% drop in AMS revenue to $273 million signals a softer national advertising market and the absence of major events like the Summer Olympics, plus a hit from a major reseller partner exiting their Premion digital advertising platform. This is a near-term risk that requires attention, but the company is still focused on strategic growth in local news streaming and securing local sports rights to boost future ad inventory. You can read more about their corporate focus here: Mission Statement, Vision, & Core Values of TEGNA Inc. (TGNA).

The near-term opportunity is the 2026 election cycle, which will bring a massive influx of high-margin political ad spending. Still, for now, the action you should take is to monitor the core AMS revenue, excluding political spending, to see if the 12% decline starts to stabilize. Finance: track non-political AMS revenue stabilization by the end of Q4 2025.

Profitability Metrics

You're looking at TEGNA Inc. (TGNA) and wondering if the core business is still a profit engine, especially with the media sector shifting so fast. The direct takeaway is that TEGNA's gross profitability remains strong against industry peers, but the net margin is under pressure from non-operating factors and cyclical ad revenue dips.

Based on the latest trailing twelve months (LTM) data ending in the third quarter of 2025, TEGNA's profitability margins show a solid operational foundation, but they reveal the headwind of a non-political year. Here's the quick math on the key metrics, using LTM revenue of approximately $2.88 billion and a Gross Profit of about $1.13 billion.

Gross and Net Profit Margins: A Clear Advantage

TEGNA's Gross Profit Margin of 39.24% is defintely a clear positive, sitting above the Broadcasting industry average of 37.8%. This tells you the company is efficient at managing its 'Cost of Revenues,' which primarily includes programming expenses for content and retransmission fees. They are successfully passing on those rising costs through contractual rate increases in their distribution agreements, but still, subscriber declines are a constant drag.

But the real story is the Net Profit Margin. At 11.91%, TEGNA is significantly outperforming the Broadcasting sector's average of -6.6%. This is a massive difference. It shows that while many peers are struggling to break even after all expenses, interest, and taxes, TEGNA's business model-which is heavily insulated by distribution revenue-is generating real bottom-line profit of $342.98 million.

Operational Efficiency and Profitability Trends

The near-term trend in profitability, however, is a headwind. The third quarter of 2025 saw total revenue drop by 19% year-over-year to $651 million. This is largely due to the cyclical nature of political advertising, which is always lower in odd-numbered years, plus ongoing macroeconomic challenges hitting Advertising and Marketing Services (AMS) revenue.

This revenue drop hit the Operating Profit Margin hard, which fell to 14.2% in Q3 2025, down sharply from 28.5% in the same quarter last year. The good news is management is actively fighting back on costs. They are implementing core operational cost cutting initiatives-specifically in compensation and outside services-to offset the rising programming expenses from sports rights deals, which is a smart, necessary move.

Here are the key drivers impacting TEGNA's operational efficiency:

• Distribution revenue is flat, with contractual rate increases offsetting subscriber losses.
• Political ad revenue is down 92% in Q3 2025, a temporary but significant hit.
• Core operational cost cutting is in place to manage expenses.

The challenge for TEGNA is maintaining this cost discipline and growing the non-cyclical revenue streams, especially with the pending acquisition by Nexstar Media Group expected to close by the second half of 2026. For a deeper dive into the valuation and strategic frameworks, you can continue reading the full post at Breaking Down TEGNA Inc. (TGNA) Financial Health: Key Insights for Investors. Your next step should be to model the impact of the 2026 political cycle on their forward-looking margins.

Debt vs. Equity Structure

You need to know exactly how TEGNA Inc. (TGNA) is funding its operations, especially in a volatile media environment. The short answer is that the company is leaning on debt, which is common in the capital-intensive broadcasting sector, but its leverage metrics are actually better than some of its peers right now.

As of the fiscal quarter ending September 2025, TEGNA's total debt stood at approximately $2.59 billion. This debt is mostly long-term, which is a good sign for near-term liquidity, but it still represents a significant fixed obligation. Short-term debt, categorized as Current Liabilities, was relatively contained at around $404.29 million, which means the bulk of the debt, roughly $2.19 billion, is long-term.

Leverage Ratios: TEGNA vs. The Industry

The key metric here is the Debt-to-Equity (D/E) ratio, which tells you how much debt the company is using to finance its assets relative to the value of shareholders' equity. For TEGNA, the most recent quarterly D/E ratio is approximately 83.12% (or 0.83). Here's the quick math: for every dollar of shareholder equity, the company has about 83 cents of debt.

To be fair, a high D/E ratio isn't always a red flag in media. Capital-intensive industries like broadcasting often carry more debt to fund infrastructure and content rights. When you compare TEGNA to the broader Broadcasting industry average D/E ratio of 1.25 (or 125%) as of November 2025, TEGNA's 83.12% ratio looks quite conservative. This lower ratio suggests a comparatively stronger equity cushion against market downturns, plus it gives them more financial flexibility. Their net leverage ratio was also healthy at 2.8x at the end of the second quarter of 2025.

Debt Management and Capital Allocation

TEGNA is defintely managing its debt proactively. In a concrete move this year, the company redeemed $250 million par value of its 4.75% senior notes in July 2025, which were originally due in March 2026. This early retirement of higher-interest debt is a smart way to lower future interest expense and clean up the near-term maturity schedule, especially as interest rates remain elevated.

The company balances its financing through a clear capital allocation strategy, favoring a mix of debt and equity returns. They expect to return between 40% and 60% of their Free Operating Cash Flow (FOCF) generated over the 2024-2025 political cycle to shareholders through a combination of dividends and share repurchases. This shows a commitment to using cash flow to directly reward shareholders while maintaining a manageable debt load. They are using debt to grow, but not at the expense of shareholder returns. For a deeper dive into the company's long-term direction, you might want to review the Mission Statement, Vision, & Core Values of TEGNA Inc. (TGNA).

The current 'BB+' Issuer Credit Rating from S&P Global Ratings, affirmed in March 2024, reflects this disciplined approach, signaling an acceptable level of credit risk for bondholders. The key action for you is to monitor the debt maturity schedule for 2026 and beyond; any large upcoming maturities will pressure the balance sheet if refinancing costs rise.

Liquidity and Solvency

You need to know if TEGNA Inc. (TGNA) can comfortably cover its near-term obligations, especially with the pending acquisition by Nexstar Media Group. The short answer is yes, the company's liquidity position is strong, demonstrating a significant cushion of readily available assets over liabilities as of the third quarter of 2025. This is defintely a strength.

The core of this strength is visible in the current and quick ratios (measures of liquidity). I'll use the Q3 2025 Total Current Assets of $896.9 million to show the quick math. Assuming minimal inventory, which is standard for a media company, the Quick Assets are essentially equal to the Total Current Assets.

• Current Ratio: The ratio of current assets to current liabilities sits at approximately 2.22x. This means for every dollar of short-term debt, TEGNA has $2.22 in assets that can be converted to cash within a year. A ratio over 1.0x is healthy; 2.22x is robust.
• Quick Ratio (Acid-Test): This ratio, which excludes less-liquid assets like inventory, is also approximately 2.22x. This high number confirms that the bulk of TEGNA's current assets are highly liquid, primarily composed of cash and receivables.

Analysis of Working Capital Trends

Working capital (Current Assets minus Current Liabilities) is the operational lifeblood of a business. Based on the Q3 2025 Total Current Assets of $896.9 million and an inferred Total Current Liabilities of approximately $404.91 million (based on the 2.22x Current Ratio), TEGNA Inc.'s working capital stands at roughly $491.99 million. This is a substantial buffer.

The trend here is less about growth and more about stability and strategic deployment of cash. The company is not hoarding excessive cash, but rather maintaining a solid operational base while actively managing its capital structure, which is a good sign for shareholder value. This is a very efficient use of capital.

Cash Flow Statements Overview

Cash flow trends in 2025 show a business generating cash from its core operations, but strategically deploying large amounts into financing activities, primarily debt reduction. Here is the Q3 2025 snapshot:

The OCF of $59 million for the quarter is lower than the Q2 2025 OCF of $100 million, which is expected due to the cyclical nature of political advertising revenue in an odd-numbered year. The most significant financing activity was the early redemption of the remaining $300 million of 4.75% senior notes due March 15, 2026, which is a proactive move to clean up the balance sheet ahead of the merger. Plus, they returned $20 million to shareholders through dividends in the quarter. This debt management is a clear sign of financial strength and intent.

Potential Liquidity Concerns or Strengths

The primary strength is the ample liquidity, backed by a significant cash balance of $233 million at the end of Q3 2025. The low-risk current and quick ratios mean short-term default risk is negligible. The main point of caution is the decline in Q3 revenue by 19% to $651 million, which directly impacted OCF. However, this is largely attributed to the non-political year cycle and the absence of the Summer Olympic games, making it a predictable, non-structural risk. The company's reaffirmation of its two-year Adjusted Free Cash Flow guidance of $900 million to $1.1 billion for 2024/2025 signals management's confidence in future cash generation. You can dive deeper into the full picture in our full post: Breaking Down TEGNA Inc. (TGNA) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at TEGNA Inc. (TGNA) and asking the right question: is the market missing something, or is the current price fair? The short answer is that, based on 2025 fiscal year data, the stock appears to be priced as a classic value play, trading near its book value but facing a mixed analyst consensus.

The core of the valuation story is in the multiples. TEGNA Inc.'s trailing Price-to-Earnings (P/E) ratio sits at an attractive range of 7.15x to 7.27x as of November 2025. Here's the quick math: that's significantly lower than the broader S&P 500 average, suggesting the stock is potentially undervalued relative to its current earnings. But remember, the market is discounting something, and in this case, it's likely the cyclical nature of political advertising and the long-term pressure on the traditional broadcast model.

When we look at the asset value, the Price-to-Book (P/B) ratio is hovering around 1.03x to 1.05x. This is a strong indicator that the stock is trading almost exactly at the value of its net tangible assets (what the company owns minus what it owes). A P/B ratio this close to 1.0 suggests the market sees little to no premium for future growth or intangible assets, which is a key trait of a deep value stock. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, a better metric for capital-intensive media companies, is also modest at about 6.70 to 7.98 (Trailing Twelve Months). This is a very reasonable multiple for the sector.

• P/E Ratio (Current): 7.15x to 7.27x
• P/B Ratio (Current): 1.03x to 1.05x
• EV/EBITDA (TTM): 6.70 to 7.98

The stock price trend over the last 52 weeks shows a decent recovery, with the price up about +6.58% from a year ago. The 52-week range of $14.87 to $21.35 shows the stock's volatility, but the current price of approximately $19.97 is near the top of that range. This recent move suggests investors are starting to price in a more favorable outlook, defintely helped by the potential for a strong political advertising cycle.

From an income perspective, TEGNA Inc. offers a reliable, though not sector-leading, dividend. The annual dividend per share is $0.50 to $0.51, translating to a dividend yield of around 2.51% to 2.54%. The payout ratio is very safe at just 23.6% to 23.8%, meaning the company is using less than a quarter of its earnings to cover the dividend, leaving plenty of cash for operations or debt reduction. A low payout ratio is always a good sign for dividend stability.

What this estimate hides, however, is the lack of a clear consensus on a major breakout. Wall Street analysts currently rate TEGNA Inc. as a Hold, with the average 12-month price target sitting at $19.75 to $20.00. This target is essentially flat against the current price, reinforcing the 'fairly valued' assessment. The analyst breakdown is mixed, with 1 to 2 Buy ratings, 3 to 4 Hold ratings, and 1 Sell rating among the 6 analysts tracking the stock. For a deeper dive into the company's long-term strategy, you should review their Mission Statement, Vision, & Core Values of TEGNA Inc. (TGNA).

Risk Factors

You need to look past the headline earnings per share (EPS) beat in Q2 2025 and focus on the core revenue drivers, because TEGNA Inc. (TGNA) faces a confluence of cyclical, structural, and strategic risks that are already pressuring the top line. The biggest near-term risk is the revenue cycle, but the long-term threat is the erosion of its core business model.

Cyclical and Structural Revenue Headwinds

The most immediate and predictable risk is the drop in political advertising, which is a massive revenue source for local broadcasters. In the third quarter of 2025, total company revenue decreased by a sharp 19% to $651 million, driven primarily by the cyclical shift from an even-numbered election year to an odd one without major political or Summer Olympic advertising.

Beyond the cycle, the structural decline in traditional television viewership continues to pressure two key segments: Advertising and Marketing Services (AMS) and Distribution. The AMS segment saw a 12% year-over-year decrease to $273 million in Q3 2025, a drop attributed to ongoing macroeconomic challenges and a competitive digital landscape. Distribution revenue, which comes from retransmission consent fees (the fees cable and satellite providers pay to carry TEGNA's stations), was also down 1% to $358 million in Q3 2025 due to persistent subscriber declines, even though contractual rate increases provided a partial offset.

• Political Ad Cycle: Expect significant revenue volatility in odd-numbered years.
• Cable Cutting: Subscriber loss directly impacts Distribution revenue.
• Macro Headwinds: Economic uncertainty delays advertising spending.

Operational and Strategic Risks (The Nexstar Merger)

The proposed acquisition of TEGNA Inc. by Nexstar Media Group, Inc., though approved by shareholders on November 18, 2025, introduces a whole new layer of strategic and operational uncertainty. The deal is not expected to close until the second half of 2026, and it remains subject to significant regulatory approvals. This long, drawn-out process creates what we call 'deal risk.'

Here's the quick math on the risk/reward: If the transaction is delayed or abandoned, the stock price could fall sharply from its current merger-driven level. Plus, during this transition period, the company faces internal operational risks, specifically retaining key personnel and maintaining crucial relationships with customers and vendors. You can dive deeper into the players involved in Exploring TEGNA Inc. (TGNA) Investor Profile: Who's Buying and Why?

Mitigation and Actionable Defense

Management is defintely aware of these pressures and has clear mitigation strategies in place. The most tangible defense against revenue volatility is aggressive cost management. TEGNA Inc. is targeting $90 million to $100 million in annualized savings by the end of 2025 through core operational cost-cutting initiatives. They've already achieved a significant portion of this goal.

The company is also leaning into content and digital to offset traditional TV declines. They are accelerating their technology roadmap and expanding local news, adding over 100 hours of new local news streaming programming daily across 50+ markets. On the financial side, they lowered the full-year 2025 interest expense guidance to a range of $160 million to $165 million by redeeming senior notes, which is a smart use of capital to improve the balance sheet while navigating the revenue dips.

Your action item is simple: Monitor the Nexstar regulatory approval process and the company's progress toward that $100 million cost-saving target. That's what will drive the stock in the near term.

Growth Opportunities

You're looking at TEGNA Inc. (TGNA) and seeing the post-election revenue dip, which is defintely a headwind. But honestly, the real story here is the pivot-management is aggressively shifting from a cyclical political advertising model to a more stable, digital-first growth engine. They're not waiting for traditional TV to save them; they're building a new revenue stream now.

The core of their future growth is a clear strategy focused on digital innovation, cost discipline, and premium content. This is a classic media transition play. For 2025, the company is navigating the expected drop in political ad spend-which is why Q3 2025 revenue guidance is for a significant 18% to 20% year-over-year decline. Still, they've reaffirmed a strong two-year Adjusted Free Cash Flow guidance of $900 million to $1.1 billion for 2024-2025, showing confidence in their underlying operational health. That's a powerful signal.

Digital and Content-Driven Revenue

The biggest growth driver is the push into digital and connected TV (CTV). TEGNA is leveraging its local news brand power to capture a new audience, and the early results are compelling. Some streaming initiatives have shown almost 50% month-over-month viewership growth in key markets. That's a massive jump.

Their multi-platform approach, which includes multicast networks like True Crime Network and Quest, plus the expansion of their local CTV platform, Premion, is key. This diversification is what keeps their revenue stream robust, even as linear TV subscriber declines continue. They're also investing heavily in content, securing local team rights across major sports leagues-NBA, NHL, WNBA, and MLB-which locks in audience engagement and distribution revenue for years.

• Accelerate digital revenue by deepening audience engagement.
• Expand Premion's local CTV platform capabilities for advertisers.
• Secure exclusive local sports rights for stable distribution revenue.

Financial Resilience and Cost Discipline

A strong balance sheet gives TEGNA the flexibility to invest in these growth areas. As of Q1 2025, they had a substantial cash reserve of about $717 million. Plus, they are on track to realize annualized cost savings of $90 million to $100 million by the end of 2025, with a good chunk of that already achieved. Here's the quick math: those savings are being reinvested into digital product upgrades and AI-driven content production, which is a smart way to generate sustainable, long-term revenue growth.

This financial discipline is a major competitive advantage (a moat, if you will). It allows them to absorb the cyclical dips in advertising revenue without compromising their long-term strategic investments. They're also actively reducing debt, having recently redeemed $250 million in senior notes due 2026, which lowered their net leverage to 2.8x.

Future Projections and Strategic Levers

While the analyst full-year 2025 revenue estimate of $2.804 billion is lower than the 2024 election-year peak, it reflects the non-political year cycle, not a fundamental breakdown. The real upside is in the strategic initiatives that are less dependent on that cycle. What this estimate hides is the accelerating, high-margin growth in the digital segment.

The company also remains well-positioned for potential mergers and acquisitions (M&A). With a strong cash position and a potentially changing regulatory landscape, especially around FCC deregulation, TEGNA has the optionality to pursue strategic acquisitions that could immediately bolster their market presence or content offerings. That's a significant, but hard-to-model, catalyst for future growth. For a deeper dive into the risks and valuation, check out Breaking Down TEGNA Inc. (TGNA) Financial Health: Key Insights for Investors.