E.W. Scripps’ second quarter was marked by a negative market reaction, reflecting missed revenue and earnings expectations as advertising softness persisted. Management attributed the quarter’s resilience to its sports programming strategy, which helped offset broader declines in core advertising. CEO Adam Symson pointed to the NBA Finals and NHL playoff coverage as key drivers, stating, “The NBA and NHL playoffs brought in more than $7 million, helping to offset challenges in a soft advertising -- core advertising marketplace and reinforcing the value of our Scripps Sports strategy.” Despite cautious commentary about the macroeconomic environment, the company emphasized cost controls and margin improvements, particularly within its Networks division.
Is now the time to buy SSP? Find out in our full research report (it’s free).
E.W. Scripps (SSP) Q2 CY2025 Highlights:
- Revenue: $540.1 million vs analyst estimates of $544.4 million (5.8% year-on-year decline, 0.8% miss)
- EPS (GAAP): -$0.59 vs analyst estimates of -$0.22 (significant miss)
- Adjusted EBITDA: $88.86 million vs analyst estimates of $84.65 million (16.5% margin, 5% beat)
- Operating Margin: 14.2%, up from 9.7% in the same quarter last year
- Market Capitalization: $269.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From E.W. Scripps’s Q2 Earnings Call
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Dan Kurnos (The Benchmark Company) asked about the pace and focus of portfolio optimization following recent regulatory developments. CEO Adam Symson explained that swaps and asset sales are key to improving station performance and accelerating debt paydown, but the timeline depends on regulatory clearance.
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Michael Kupinski (NOBLE Capital Markets) sought more detail on the advertising environment and whether hesitancy among advertisers might resolve in the coming quarters. CFO Jason Combs highlighted continued uncertainty as a major factor, especially for automotive, and said any ad rebound will depend on macroeconomic stability.
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Michael Kupinski (NOBLE Capital Markets) also questioned the impact of declining search traffic referrals and AI-driven changes in digital advertising. Symson indicated that while direct digital traffic is unlikely to surge, advertisers may shift to video and CTV as brand-building channels, which bodes well for Scripps’ strategy.
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Craig Huber (Huber Research Partners) inquired about trends in retransmission subscriber losses and whether Scripps can expand net retrans margins. Combs responded that mid-single-digit churn remains the norm, but expense reductions and new deals should support margin gains.
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Steven Cahall (Wells Fargo) asked about the sustainability of Networks advertising growth without further sports rights and the outlook for preferred equity. Symson stressed the importance of sports as a differentiator and said additional rights would be pursued only if financially prudent, while Combs noted preferred equity redemption will depend on leverage and interest rates.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will track (1) the execution and financial impact of new sports programming and event partnerships, (2) progress on regulatory-driven portfolio optimization and station swap transactions, and (3) ongoing growth in connected TV advertising. Additionally, we will monitor trends in network fee negotiations, subscriber churn, and any signs of improved advertising demand as macroeconomic uncertainty evolves.
E.W. Scripps currently trades at $3, up from $2.82 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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