Nexstar reports record $1.1 billion in political ad revenue

The $1.1 billion political total was 31% ahead of the 2022 midterm cycle, Nexstar said. It includes results from Tegna, which Nexstar technically acquired this year but has been legally blocked from integrating by a federal judge.

The record came as AdImpact estimated political advertising spending and reservations for the 2025-26 cycle reached $11.21 billion, narrowly exceeding the $11.20 billion recorded in the 2023-24 presidential cycle. The firm reported the figure before Election Day. Its tally includes future reservations, not only ads that have aired, and is not adjusted for inflation. AdImpact put the 2022 midterms at $8.9 billion.

AdImpact projected in June that total political spending would reach $11.6 billion by the end of the cycle. Broadcast television was expected to capture $5.6 billion, or 48% of the total, followed by connected TV at $2.7 billion, or 23%, and digital advertising at $1.6 billion.

Tegna appeal

Oral arguments in Nexstar's appeal of the order blocking the Tegna merger are scheduled for 17 November at the US Court of Appeals for the Ninth Circuit. The panel is likely to render a decision in early 2027, the company said. COO Mike Biard said the appeal aims to narrow the scope of the complaint, citing the plaintiffs' "failure to articulate a plausible theory of injury to a sufficiently large number of their residents."

Nexstar also said it reached a distribution deal with DirecTV during the quarter, without providing details. DirecTV had joined state attorneys general in filing the lawsuit shortly before the Tegna merger was approved by the FCC and swiftly closed by Nexstar.

The CW

On the same call, executives discussed The CW, the 20-year-old network in which Nexstar acquired a majority stake in 2022, with Skydance retaining about 20% of the network. Ratings rose 9% in the quarter, and its 30 August football game between Florida State and New Mexico State drew just shy of 2 million viewers, the biggest audience ever for a live sporting event on the network, Nexstar said. Executives reaffirmed that The CW is projected to turn its first profit in the fourth quarter. CFO Lee Ann Gliha said profitability would not continue for the full year 2027, though she clarified she did not know the full-year outlook for certain.

The CW "is still very much a nascent business, with tremendous upside," Biard said. "It's still on a positive trajectory, but it's not where we want it to be, ultimately." Gliha estimated sports accounts for about 50% of the network's programming, though she declined to offer an estimate of its share of revenue.