CW Loss Increases by ‘Mid-Teen Millions’ in Q1 as Nexstar Continues to Project 2026 Profitability Goal

Nexstar reported its first-quarter 2025 earnings Thursday, revealing broadcaster the CW had taken a hit on its long journey to profitability over the Jan. 1-March 31 period.

“As expected, the CW’s profitability in Q1 declined by mid-teen millions due to additional sports programming and amortization the network didn’t have in the same quarter last year,” Nexstar president and chief operating officer Michael Biard said during a call with analysts following the earnings release. “However, our outlook for the year remains unchanged and we continue to project improved profitability in 2025 versus 2024, with expectations of achieving profitability sometime in 2026.”

Overall, Nexstar’s distribution sales were $762 million for the quarter, nearly flat with the comparable year-ago period. Ad sales were down 10% at $460 million.

Wall Street forecast earnings per share (EPS) of $3 on $1.23 billion in revenue, according to analyst consensus data provided by LSEG. Nexstar reported diluted EPS of $3.37 on $1.23 billion in revenue.

“Nexstar delivered solid first quarter Net Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow, driven by record first quarter distribution revenue and disciplined expense management,” Nexstar CEO Perry Sook said in a statement accompanying the financials. “As the nation’s largest local broadcaster, we strategically use our scale to drive strong operating results and cash flow and facilitate organic growth initiatives as we further elevate The CW and NewsNation to top-tier networks. During the quarter we deployed our Adjusted Free Cash Flow to repay debt, pay dividends, repurchase stock and – what we hope to be an increasing use of our strong balance sheet – make an acquisition. For the balance of 2025, we remain focused on renewing distribution contracts representing approximately 60% of our subscriber base in total for the year, continuing our path towards profitability at The CW, preparing for the 2026 political cycle, and pursuing deregulation.”

(Pictured above: The CW’s “All American.”)