Nexstar Media Group, Inc. (NXST): Business Model Canvas [Dec-2025 Updated]

You're digging into how Nexstar Media Group, Inc. actually makes its money, and honestly, mapping out a media giant with over 200 local stations and a 75% stake in The CW Network can feel like a maze. As someone who's looked at these balance sheets for two decades, I can tell you the core is simple: they trade massive local reach-hitting about 70% of U.S. households-for carriage fees and ad dollars, with Distribution Revenue hitting $2.204 billion in the first nine months of 2025 alone. This canvas breaks down exactly where the cash comes from and what assets, like those broadcast licenses and the pending TEGNA deal, make this whole operation tick. It's a classic media play, just scaled up to the max. See the nine blocks below for the full picture.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Key Partnerships

You're looking at the web of relationships that lets Nexstar Media Group, Inc. operate as the largest local television broadcaster in the U.S. These partnerships are critical for content carriage, content distribution, and future scale.

Major network affiliation agreements form the backbone of local station revenue, ensuring access to the most-watched programming. For instance, in January 2025, Nexstar Media Group, Inc. secured a multi-year renewal of its NBC Television Network affiliations covering 33 markets, including 29 stations owned by Nexstar, 3 owned by Mission Broadcasting, Inc., and 1 owned by White Knight Broadcasting, Inc. These 33 stations collectively reach over 14 million U.S. television households. The relationship with CBS is also key; a prior multi-year agreement covered 19 stations in 15 markets, representing nearly six million households, with Nexstar owning 39 CBS affiliates in total at that time. These agreements are constantly cycling, giving Nexstar leverage during renewal periods to improve economics.

Here's a snapshot of the network and content carriage relationships:

Multichannel Video Programming Distributors (MVPDs) are essential for retransmission revenue. This stream is a major component of the business model, driven by the scale of Nexstar Media Group, Inc.'s portfolio. For the second quarter of 2025, distribution revenue stood at $733 million. This was slightly down (0.1%) year-over-year, reflecting subscriber attrition, but was partially offset by increased rates. Looking ahead, approximately 60% of the total subscriber base was up for renewal in 2025, with the financial benefit expected to start in the first quarter of 2026. For context, the record fourth quarter of 2024 saw distribution revenue hit $714 million.

The relationship with Mission Broadcasting, Inc. highlights operational structuring to navigate regulatory limits. Nexstar Media Group, Inc. operates stations owned by Mission Broadcasting, Inc. under various agreements, including Local Marketing Agreements (LMA) and Shared Services Agreements (SSA). This structure was scrutinized by the FCC regarding the WPIX station in New York. As of June 30, 2025, the consolidated debt of Nexstar Media Group, Inc. and Mission Broadcasting, Inc. was $6.4 billion, which includes senior secured debt of $3.7 billion.

For content on The CW Network, which Nexstar Media Group, Inc. majority-owns (75% stake), partnerships with sports leagues are driving viewership. The CW is the broadcast home for nearly 400 hours of sports per year. The network renewed its broadcast agreement with the Pac-12 conference through the 2030-31 season, which will include 13 regular season football games annually starting in 2026, along with 35 men's and 15 women's basketball games. The CW also carries NASCAR Xfinity Series playoff races and ACC football and basketball games.

The most significant potential partnership is the pending $6.2 billion acquisition of TEGNA Inc. This all-cash transaction, valued at $22.00 per share, is expected to close in the second half of 2026, pending regulatory approval. On a combined pro forma basis, Nexstar Media Group, Inc. and TEGNA Inc. generated over $8 billion in revenue and $2.56 billion in adjusted EBITDA for the 12 months ending June 30, 2025. Management projects the deal will be more than 40% accretive to Nexstar's standalone Adjusted Free Cash Flow within the first year, driven by anticipated synergies of approximately $300 million.

• The combined entity, post-TEGNA acquisition, would control 265 full-power TV stations across 44 states and Washington, D.C.
• The combined reach is expected to cover about 80% of U.S. TV households.
• The deal is being financed with committed financing secured from BofA Securities, J.P. Morgan, and Goldman Sachs.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Key Activities

Nexstar Media Group, Inc. focuses its key activities on high-volume local content creation, complex contract negotiation, multi-platform advertising sales, and strategic balance sheet management.

The company's commitment to localism drives massive content output. Nexstar Media Group, Inc. produces more than 317,000 hours of news, sports, and entertainment programming annually across its business units. This local focus is supported by over 13,000 employees operating in 116 U.S. markets.

A critical activity involves securing the right to carry content through distribution contracts. Approximately 60% of Nexstar Media Group, Inc.'s retransmission agreements were up for renewal in 2025, impacting 2026 results. Distribution Revenue for the second quarter of 2025 was $733 million, which was flat year-over-year.

Selling advertising across local and national platforms remains central. For the second quarter of 2025, Advertising Revenue totaled $475 million, a 9.0% decrease year-over-year, largely due to non-election year dynamics. Political advertising specifically dropped to $9 million in Q2 2025.

Managing and growing national networks is a key differentiator. The CW Network achieved its fifth consecutive quarter of audience growth in the first half of 2025, ranking as the #8 network in total audience. Sports programming now accounts for over 40% of The CW's programming hours. Concurrently, NewsNation was ranked the fastest-growing network overall year-over-year by Nielsen shortly after its one-year anniversary as a 24/7 cable news network.

Strategic capital allocation is necessary for long-term stability. In the second quarter of 2025, Nexstar Media Group, Inc. used cash to repay $101 million of debt. As of June 30, 2025, the consolidated debt for Nexstar Media Group, Inc. and Mission Broadcasting, Inc. stood at $6.4 billion.

Here's a quick look at some key Q2 2025 operational and financial metrics:

• The CW Network ranked #8 in total audience for H1 2025.
• Sports programming made up over 40% of The CW's hours.
• NewsNation was the fastest-growing cable news network YoY.
• $101 million in debt was repaid in Q2 2025.
• Shareholder returns (dividends + buybacks) totaled $106 million in Q2 2025.

You can see the breakdown of revenue sources for the second quarter of 2025 here:

The company also focuses on strengthening its capital structure through refinancing activities, which included extending maturities and reducing interest rate margins on revolving credit facilities and term loans during Q2 2025. Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Key Resources

You're looking at the core assets that power Nexstar Media Group, Inc.'s operations as we head into the end of 2025. These aren't just line items; they are the physical, human, and financial foundations that allow the company to execute its local-first strategy.

The scale of the physical footprint is massive, making Nexstar Media Group, Inc. the largest local television broadcasting company in the U.S. This scale is critical for negotiating carriage fees and attracting national advertising dollars. Honestly, you can't replicate this overnight.

Here's a quick look at the hard numbers defining that scale and financial standing as of the third quarter of 2025:

The human element is just as important as the towers and transmitters. Nexstar Media Group, Inc. relies on a deep bench of local talent to generate the content that drives viewership and advertising revenue.

• Local Journalists: Approximately 6,000
• Local Salespeople: Approximately 1,600
• Annual Programming: Over 316,000 hours produced annually

Beyond the people and the station count, the company holds licenses for broadcast spectrum. This is a valuable, protected asset, essential for over-the-air transmission, and it represents a significant barrier to entry for competitors.

To be fair, the balance sheet strength, evidenced by the 3.09x total net leverage ratio at the end of Q3 2025, provides the financial flexibility to manage debt and pursue strategic moves, like the recently approved TEGNA acquisition, which will further expand the station count to 265 stations covering 80% of U.S. television households upon closing. Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Value Propositions

You're looking at the core value Nexstar Media Group, Inc. (NXST) delivers to its customers-viewers and advertisers-based on its massive footprint and strategic content plays as of late 2025. This isn't just about broadcasting; it's about scale and local depth.

Unmatched scale, reaching approximately 70% of U.S. households.

The sheer size of the Nexstar Media Group platform is a primary value driver. The company is the largest local television broadcasting company in the U.S., reaching approximately 70% of U.S. television households. This reach extends to over 200 owned or partner stations across 116 local markets, connecting with over 220 million people. This scale is a critical asset for advertisers seeking broad exposure.

Hyper-local news and community-focused content for viewers.

Viewer value is anchored in local relevance. The company employs around 6,000 journalists who produce content tailored to specific communities. This commitment results in over 316,000 hours of programming annually, ensuring viewers get news and content that matters right where they live. The local focus helps maintain viewership against national competition.

• Employing approximately 6,000 journalists.
• Producing over 317,000 hours of programming yearly.
• Strong local presence in 116 U.S. markets.

Dual-market access for advertisers (local and national reach).

Advertisers get a two-pronged attack: deep local penetration and national brand amplification. Local businesses can target specific DMAs (Designated Market Areas) through the station group, while national brands can access audiences through Nexstar's national assets. These national brands include The CW Network, NewsNation, and The Hill. For instance, Q3 2025 distribution revenue, which includes carriage fees for these platforms, stood at $709 million. Still, advertising revenue in that same quarter was $476 million, showing the split between carriage and direct ad sales.

High-impact platform for political advertising during election cycles.

The political advertising platform offers immense, albeit cyclical, impact. In the 2024 election cycle, Nexstar Media Group strategically positioned itself in nearly 85% of competitive election markets. This translates to significant revenue spikes, though the non-election year impact is clear; advertising revenue in Q3 2025 dropped 23.5% year-over-year to $476 million, largely due to the absence of political spending seen in 2024. Political advertising revenue in Q3 2025 was only $9 million, a sharp drop from the $36 million seen in Q2 2024. You're definitely buying access to high-stakes local conversations when it matters most.

Cost-effective, live sports programming driving CW network growth.

The strategy for The CW Network centers on leveraging cost-effective live sports to drive audience and, eventually, profitability. Sports and sports-adjacent content are planned to account for about 40% of The CW's total programming time in 2025, amounting to roughly 400 hours. This is a dramatic shift from the prior network structure. This programming push is central to the goal of achieving profitability for The CW by 2026. The operating losses for The CW were reduced by 24% year-over-year in Q3 2025, showing the strategy is working to improve the bottom line. Programming costs for The CW were expected to be $270 million for 2024, a significant reduction from the $560 million in 2022.

Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Customer Relationships

You're looking at how Nexstar Media Group, Inc. (NXST) manages its connections with the two primary groups that fund its operations: the advertisers who pay for reach and the distributors who pay for content access. These relationships are foundational to their local media strategy.

Dedicated account management for 40,000+ local advertisers.

Nexstar Media Group, Inc. maintains a significant local sales force dedicated to securing advertising revenue from businesses in their broadcast markets. This relationship is supported by boots-on-the-ground personnel focused on local commerce.

• Employing 1,600 local salespeople as of June 2025.
• Maintaining relationships with more than 40,000 businesses across their footprint.
• Total advertising revenue for Q3 2025 was $476 million.

Contractual, long-term distribution agreements with MVPDs.

The relationship with Multichannel Video Programming Distributors (MVPDs) is secured through carriage agreements, which are critical for ensuring content reaches cable and satellite subscribers. Management is focused on renewing these contracts, a key strategic priority looking into 2026.

Distribution revenue for the third quarter of 2025 was $709 million, representing a 1.4% decrease year-over-year, which management noted was partly due to MVPD subscriber attrition. A major recent example of this relationship management was the comprehensive new multi-year distribution agreement reached with DIRECTV, covering 176 Nexstar-owned local television stations and the NewsNation network. Historically, Nexstar has reached agreements with 30 MVPDs covering approximately 10 million subscribers.

Here's a quick look at the scale of the distribution relationship and the capital returned to shareholders:

Direct, mass-market relationship with viewers via broadcast.

The core relationship is the direct link with the viewing public, which underpins the value proposition for both advertisers and distributors. Nexstar Media Group, Inc. is America's largest local television broadcasting company, giving it broad, direct market penetration.

• Reaching 220 million people across the U.S..
• Operating in 116 U.S. markets with more than 200 owned or partner stations.
• Producing over 316,000 hours of programming annually, including local news, sports, and entertainment.
• National reach is extended via The CW Network and NewsNation.

Consistent capital return to shareholders via a $1.86 per share quarterly dividend.

Returning capital to shareholders demonstrates a commitment to investor value, which is a key relationship for a publicly traded entity. The dividend has been consistently maintained at the $1.86 per share quarterly rate as of late 2025. This translates to an annualized dividend of $7.44 per share.

The company's dividend payout ratio (DPR) stood at 46.13% based on recent earnings, suggesting the payout is covered by earnings. For instance, in the third quarter of 2025, Nexstar Media Group, Inc. used cash to pay $56 million in dividends. This consistent payout supports the investment thesis for current owners of NXST shares.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Channels

You're looking at how Nexstar Media Group, Inc. gets its content-the news, the sports, the entertainment-out to the people who pay for it, and how they get paid back. It's a multi-pronged approach, moving from the antenna to the set-top box and now onto the internet.

Over-the-air broadcast via owned and partner local stations.

This is the bedrock of Nexstar Media Group, Inc.'s operation. They are the largest local television station owner in the United States. The sheer scale here is what gives them leverage in negotiations and advertising sales.

Here's a look at the local footprint as of late 2025, based on their 2024 year-end reporting and subsequent activity:

Nexstar Media Group, Inc. owns or operates stations affiliated with major networks like CBS, FOX, NBC, and ABC. This local focus is key, as they captured an estimated 15.8% of the local television advertising market in 2023, which was valued at $20.3 billion.

Cable and satellite providers (MVPDs).

This channel is all about retransmission fees-the money MVPDs (Multichannel Video Programming Distributors) pay Nexstar Media Group, Inc. to carry those local channels. You've seen the headlines about these negotiations; they are critical to the financial health here. Nexstar Media Group, Inc. feels these fees are misaligned with actual ratings, arguing for a fairer share.

The financial performance of this segment shows the ongoing tension between subscriber loss and rate increases:

• Q1 2025 Distribution Revenue hit a first-quarter record of $762 million.
• Q2 2025 Distribution Revenue was $733 million, relatively unchanged year-over-year.
• Q3 2025 Distribution Revenue was $709 million, a decline of just under 1.5% from $719 million in Q3 2024.

To be fair, subscriber attrition is chipping away at the base, but Nexstar Media Group, Inc. is pushing for higher rates. They are renewing agreements covering approximately 60% of their subscriber base in 2025, with the financial benefit expected to start showing in Q1 2026.

Virtual MVPDs (vMVPDs) and streaming services.

This is where the cable and satellite channel overlaps with the streaming world, as vMVPDs-think YouTube TV, Hulu with Live TV, Fubo, and DirecTV Stream-are now major distribution points. Growth in vMVPD subscribers is cited as a positive driver for distribution revenue, helping to offset some of the traditional MVPD subscriber loss.

The company's strategy here is to secure favorable multi-year renewals, which is why the 2025 renewal cycle covering 60% of the base is so important for near-term financial planning.

National cable network distribution (NewsNation).

NewsNation is Nexstar Media Group, Inc.'s national news channel, positioned as an alternative in the cable news space. It's definitely growing its reach and relevance, which is a key channel for national advertising dollars.

Here's what the late 2025 ratings suggest about its channel strength:

• NewsNation was the fastest-growing cable network in July 2025, with overall audience up 6% year-over-year.
• In July 2025, the program "Morning in America" saw its A25-54 demographic audience climb 200% year-over-year.
• On a standout Sunday in September 2025, NewsNation surpassed both CNN and MSNBC in total viewers for six consecutive hours, averaging 615,000 total viewers during that period.
• As of late November 2025, NewsNation ranked as the 57th most popular channel on TV, with 112,000 total viewers during primetime.

This growth is a strategic catalyst management points to, especially as traditional competitors saw significant audience declines.

Digital platforms including local station websites and The Hill.

The digital channel extends the reach beyond the linear television screen. Nexstar Media Group, Inc. maintains a substantial digital footprint that acts as a complementary revenue source to its core broadcasting.

The digital assets include:

• 138 local TV station websites.
• 229 mobile applications.
• Eight connected TV applications.

Collectively, the portfolio including local sites, NewsNationNow.com, and The Hill is considered a Top 10 U.S. digital news and information property. You should note that The Hill, the political outlet, was acquired back in August 2021 for $130 million, representing a specific digital content acquisition.

Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Customer Segments

You're looking at the core groups that keep Nexstar Media Group, Inc. running, the ones whose money flows into the business. It's a mix of local advertisers, national distributors, and the viewers themselves, all essential cogs in this large media machine.

Local and national businesses seeking advertising reach

This segment comprises businesses that need to reach local consumers through Nexstar Media Group, Inc.'s extensive broadcast and digital properties. They buy ad time on local stations or placements on digital properties like local TV station websites, TheHill.com, and NewsNationNow.com. Nexstar's Digital division collectively is among the Top 10 U.S. digital news and information properties based on Comscore, Inc. data from 2024.

Here's a look at the advertising revenue context for these customers:

Political campaigns and advocacy groups (cyclical, high-margin)

Political advertising is a high-margin, cyclical revenue source, spiking during election years. The absence of a major national election in 2025 compared to 2024 explains the sharp year-over-year declines in this revenue stream.

The political advertising impact is clear in the recent quarterly reports:

• Q2 2025 Political Advertising Revenue: $9 million.
• Q2 2025 Political Ad Revenue Decrease YoY: $36 million or (9.0%).
• Q3 2025 Political Ad Revenue Drop YoY: $145 million.
• Q1 2025 Political Ad Revenue: $6 million, down from $38 million in Q1 2024.
• Q4 2024 Political Ad Revenue (Prior Peak): $254 million.

Nexstar Media Group, Inc. is looking ahead to capitalize on the 2026 mid-term election political advertising opportunity.

Cable and satellite companies (MVPDs/vMVPDs) paying retransmission fees

This segment consists of traditional cable/satellite providers (MVPDs) and virtual MVPDs that pay Nexstar Media Group, Inc. fees to carry its local stations, The CW Network, and NewsNation. These fees are a primary driver of Distribution Revenue. The company is actively managing its distribution agreements, with approximately 60% of its subscriber base contracts up for renewal in 2025.

Distribution revenue figures show slight pressure, partly due to subscriber attrition, but supported by contractual rate escalators and vMVPD growth:

Mass market television viewers across 116 U.S. markets

These are the consumers who watch the content produced by Nexstar Media Group, Inc., forming the audience base that advertisers and distributors pay to access. Nexstar Media Group, Inc. owns America's largest local television broadcasting group.

The scale of this audience reach is substantial:

• Total Owned or Partner Stations: More than 200.
• Total U.S. Markets Served: 116.
• Total People Reached: 220 million people.
• U.S. TV Household Reach: Approximately 70%.
• Monthly Unique Digital Visitors: 103MM (as of June 2025).
• Annual Programming Hours Produced: More than 316,000 hours or over 317,000 hours.

The CW Network, 75% owned by Nexstar Media Group, Inc., ascended to the #8-ranked network overall in the first half of 2025.

Investors seeking stable cash flow and dividend growth

This segment consists of shareholders who value the company's ability to generate consistent cash flow, reduce debt, and return capital. Nexstar Media Group, Inc. has a stated commitment to dividend growth, having increased its dividend for the twelfth year.

Financial metrics supporting this segment's interest include:

The company also used cash flow in Q2 2025 to repay $101 million of debt. Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Cost Structure

You're looking at the core costs Nexstar Media Group, Inc. incurs to run its massive local broadcasting operation as of late 2025. These are the necessary drains on cash flow that keep the stations on air and the content flowing.

The company's cost base is heavily influenced by content rights, employee overhead, and the significant burden of its debt load. Management noted in Q3 2025 that they achieved strong expense management resulting in lower year-over-year operating expenses, partly due to restructuring initiatives. Still, the fixed costs associated with content and debt remain substantial.

Key Cost Components and Financial Data (Late 2025 Context)

Programming and content acquisition costs are a major variable. While specific 2025 programming and acquisition costs aren't explicitly broken out in the latest releases, we can look at related amortization figures. For example, the amortization of broadcast rights for the full year 2024 was $324 million. This gives you a baseline for the scale of content commitments.

Network affiliation fees paid to major broadcast partners like CBS, Fox, NBC, and ABC are embedded within the overall cost structure, though a direct line item for 'affiliation fees paid' isn't isolated in the Q3 2025 summary. However, the revenue Nexstar receives from these relationships-Distribution Revenue-was $709 million for the third quarter of 2025. That revenue stream is directly tied to the cost of maintaining those network relationships.

Employee salaries and benefits are tied to the workforce size. As of September 30, 2025, Nexstar Media Group had 13,005 total employees. This figure supports the approximate staff level you mentioned.

Operating expenses for station infrastructure and transmission are captured partly in the general operating expense figures. For instance, the total corporate expense for the third quarter of 2025 was $68 million. This figure includes non-cash compensation expense of $19 million for that quarter.

The interest expense is directly linked to the debt load. As of September 30, 2025, the consolidated debt of Nexstar and Mission Broadcasting, Inc. stood at $6.4 billion. The resulting interest expense for the third quarter of 2025 was $94 million. That's a significant monthly outflow.

You can see how these major fixed and semi-fixed costs stack up:

• Programming amortization (FY 2024 baseline): $324 million
• Q3 2025 Interest Expense: $94 million
• Q3 2025 Total Corporate Expense: $68 million
• Staff Count: 13,005 employees

Finance: draft 13-week cash view by Friday.

Nexstar Media Group, Inc. (NXST) - Canvas Business Model: Revenue Streams

You're looking at the core ways Nexstar Media Group, Inc. (NXST) brings in cash as of late 2025. The model is heavily reliant on fees from distributors and, cyclically, on advertising dollars.

Distribution Revenue (Retransmission Fees) is the bedrock here. These are the fees Nexstar Media Group collects from cable, satellite, and vMVPD (virtual multichannel video programming distributor) providers for the right to carry its local television stations and network content. For the nine months ended September 30, 2025, this stream generated $2.204 billion. This revenue stream is generally more predictable than advertising, though it faces pressure from ongoing subscriber attrition across traditional MVPDs. Still, management is focused on completing upcoming distribution renewals, which should help stabilize this base.

Advertising Revenue (Local, National, Digital) is the second major pillar, though it shows significant year-to-year volatility based on the election cycle. For the nine months ended September 30, 2025, total advertising revenue was $1.410 billion. This total is a blend of local market ad sales, national ad sales across its owned and operated stations, and revenue from its growing digital properties. The core, non-political advertising component showed stability in Q3 2025, described as effectively flat year-over-year, which is a positive sign given market softness.

Here's a quick look at how the top-line revenue broke down for the first nine months of 2025, based on reported figures:

Political advertising revenue is the wild card. You see a significant boost in even-numbered years when elections are held, like 2024. In the third quarter of 2025, which is a non-election quarter, political advertising dropped substantially. For Q3 2025, political advertising fell by $145 million year-over-year, down to just $10 million. This sharp drop is why total advertising revenue fell 23.5% in the quarter. Management is definitely looking ahead to the 2026 mid-term elections to capitalize on this cyclical revenue source again.

The Other revenue category captures miscellaneous income streams. This includes things like digital operations not classified under core advertising, tower leasing agreements, and other non-core assets. For the nine months ended September 30, 2025, this segment contributed $46 million. This segment saw a year-over-year decline of 6.1% for the nine-month period.

You should also keep an eye on potential future revenue from NextGen TV (ATSC 3.0) services. While not a major reported revenue stream yet, Nexstar Media Group executives have noted the adoption of ATSC 3.0 and interactive TV as areas that could accelerate future revenue growth. This technology shift represents an opportunity for new data monetization and service offerings down the line.

To summarize the key components driving the top line:

• Distribution fees are the largest, most stable component, hitting $2.204 billion for 9M 2025.
• Advertising revenue is cyclical; Q3 2025 saw a steep drop due to the absence of major political spending.
• Non-political advertising revenue in Q3 2025 was described as effectively flat, showing core business resilience.
• Other revenue was $46 million for the first nine months of 2025.

Finance: draft 13-week cash view by Friday.