Key Points

• Earnings per share (GAAP) missed estimates in Q2 2025, posting a loss of $0.59 versus the expected $0.22 loss.

• Revenue (GAAP) declined 5.8% to $540 million, falling short of the $544.6 million analyst estimate.

• Scripps Networks segment profit jumped 48.2%, while Local Media segment profit dropped 36.7% as political advertising waned.

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E.w. Scripps (NASDAQ:SSP), a major U.S. broadcaster and free, ad-supported television company, released its second-quarter 2025 results on August 8, 2025. The main headlines: GAAP revenue was $540 million, falling short of the analyst estimate of $544.6 million, and GAAP earnings per share came in at a loss of $0.59 versus the expected $0.22 loss. The Local Media division saw steep declines, with revenue down 8.3% year over year, offset by a sharp profit increase in Scripps Networks as streaming, cost controls, and sports drove margin gains, with segment profit (GAAP) rising to $55.9 million from $37.7 million in Q2 2024. Overall, the quarter underscored the company’s ongoing transition toward digital platforms—with mixed results for its legacy business.

Source: Analyst estimates for the quarter provided by FactSet.

Understanding E.w. Scripps: Business Model and Current Strategies

E.w. Scripps operates a wide portfolio of media brands, including national entertainment and news networks as well as more than 60 local television stations. Its core business is rooted in broadcast television, but the company has shifted focus to expand in free, ad-supported streaming and over-the-air services. Its goal is to reach audiences who have moved away from traditional pay-TV and capitalize on the growing demand for free content, both on connected TVs and through digital antennas.

Recently, the company has targeted five areas: growing its digital and streaming businesses, managing costs through restructuring, navigating Federal Communications Commission (FCC) regulation, strengthening its local content and ad offerings, and forming partnerships that extend its reach and capabilities. Success hinges on capturing digital ad dollars as viewers migrate online, maintaining regulatory compliance, and leveraging network and local programming to deliver valuable audiences to advertisers. Cost management and smart capital moves support these aims and keep leverage under control.

Quarter in Review: Financials, Segments, and Strategic Moves

Consolidated revenue (GAAP) fell 5.8% compared to the year-earlier period. This drop was mainly due to declines in the Local Media segment, where revenue fell 8.3% (GAAP). A major driver was a sharp decrease in political advertising: only $2.6 million, compared with $28.2 million in Q2 2024, reflecting the off-cycle election environment. Core advertising revenue decreased 1.9% to $137 million, while distribution revenue was $193 million, compared to $194 million in the prior-year quarter. The segment’s expenses edged up 0.8%, leading to a 36.7% decline in segment profit.

The Scripps Networks segment turned in a contrasting performance. Revenue (GAAP) for Scripps Networks was down 1.4%, but segment profit increased by 48.2%, as operating expenses dropped 12.4%. Revenue from streaming and connected TV grew 57%. Management reported a nine-percentage-point margin improvement year over year for the Scripps Networks division.

On the operational side, several one-time items shaped bottom-line results. Scripps booked a $31.4 million gain (GAAP) from the sale of a property, but this was more than offset by $38.1 million in financing costs, plus a write-off of $5.6 million in deferred financing costs and a $3 million GAAP loss from extinguishing debt. These charges collectively increased the GAAP loss per share by $0.13. While the company reported operating income of $76.6 million, the net loss attributable to shareholders was $51.7 million (GAAP), compared to $13.0 million in Q2 2024.

Scripps also pushed forward on debt management by refinancing near-term obligations and reducing its leverage ratio to 4.4x from 4.9x at the close of Q2 2025 and Q1 2025, respectively. As of June 30, 2025, cash and equivalents stood at $31.7 million, and debt at $2.7 billion. No dividend payments were made, and the company is restricted from common dividend payouts due to outstanding preferred shares held by Berkshire Hathaway.

Market Position, Products, and Evolving Strategy

Scripps’s most prominent products are its over-the-air and streaming TV services. These platforms offer free, ad-supported entertainment and sports to large audiences. During the 2024 season, the company continued to highlight the popularity of initiatives such as WNBA Friday Night Spotlight, which averaged more than 23 million unique viewers—a 133% gain over 2023. These efforts are critical as Scripps aims to offset softness in traditional ad markets and benefit from the growing interest in free and live content, especially in women’s sports.

The Networks segment saw strong growth in connected TV and streaming revenue. Management referenced six full-season programming partnerships and expanding partnerships for ION as drivers of viewership and advertising opportunities. The Local Media segment, though still central to Scripps, faces structural headwinds outside of major political ad seasons, underscoring the importance of the company’s digital bets.

Elsewhere, Scripps advanced its capital structure strategy. Scripps announced a station swap with another broadcaster—trading stations in five markets—which is pending regulatory review. In financial management, Scripps raised $750 million in new debt at a 9.875% rate on August 6, 2025, paying down earlier maturities and reducing future risk.

The company’s joint venture with other broadcasters, EdgeBeam Wireless, also positions it to capture new revenue through data services using the emerging ATSC 3.0 transmission standard. This venture taps into the potential for broadcasters to serve as wide-area wireless data providers—a market adjacent to its core television business.

Outlook and What to Watch

Looking ahead to Q3 2025, management expects Local Media revenue to fall by a mid-to-high 20% range compared to the same period last year. The Networks division is forecast to post a low single-digit percent drop in revenue. Costs in both areas are expected to decline at single-digit rates, continuing a focus on efficiency. Scripps projects capital expenditures for FY2025 in the $45–$50 million range. and guidance on cash interest paid is $170–$175 million for full-year 2025.

Management did not provide earnings per share or revenue targets for the remainder of FY2025 beyond general directional guidance. Investors following Scripps should pay close attention to the performance of its streaming and connected TV revenue, the impact of sports partnerships like the WNBA and NBA, and further moves to reduce leverage.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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