Summary of SSP Q2 2026 Earnings Call

1Key Financial Results and Metrics

Loss per Share: Reported a loss of $12.68 per share, impacted by a $1.1 billion noncash goodwill impairment charge and $36 million in restructuring costs.

Local Media Division Revenue: $317 million, down 1% year-over-year; core advertising decreased by 4.8%.

Political Advertising Revenue: Achieved a record $28 million for the second quarter, with full-year expectations of $225 million to $250 million.

Scripps Networks Revenue: $172 million, down 13% from Q2 2025, primarily due to linear TV viewing declines and Nielsen measurement changes.

Net Debt: $2.2 million, with $13 million in cash and no draws on the revolving credit facility.

Transformation Savings: Targeting $100 million in annual run rate savings by year-end, up from previous guidance.

2Strategic Updates and Business Highlights

FCC Vote: Positive sentiment regarding the FCC's decision to lift the broadcast ownership cap, which is expected to enhance competitive positioning against tech companies.

Sports Agreements: Signed partnerships with the Detroit Pistons (NBA) and the Women's Volleyball World Cup, expanding Scripps' sports portfolio.

M&A Activity: Completed several localization transactions, including acquiring a second Big 4 station in Lexington, Kentucky, and a station swap with Gray Media.

Distribution Agreements: Renewed major distribution agreements covering a significant portion of pay TV subscribers, which are expected to contribute to margin expansion.

3Forward Guidance and Outlook

Q3 Local Media Revenue: Expected to increase by approximately 20%, with core advertising projected to decline in the low double digits.

Scripps Networks Revenue: Anticipated to decrease in the mid-teens percent range in Q3 due to ongoing challenges.

Cost Management: Expecting local media expenses to decline in Q3 and Q4, with a focus on operational efficiency and transformation benefits rolling into future quarters.

4Bad News, Challenges, or Points of Concern

Nielsen Measurement Changes: A significant factor in revenue softness, with management attributing about 50% of revenue pressure in the networks business to these changes.

Economic Pressures: Broader economic uncertainty and political crowding impacting core advertising revenue.

Distribution Revenue Decline: Local media distribution revenue fell by 13% due to service blackouts during contract negotiations with Comcast and DIRECTV.

Workforce Reductions: 268 employees laid off as part of the transformation plan, totaling 432 positions eliminated since the beginning of the year.

5Notable Q&A Insights

Transformation Plan: Management emphasized the importance of leveraging AI and technology to enhance local news delivery and operational efficiency.

Nielsen Discussions: Ongoing conversations with Nielsen regarding measurement improvements, with expectations for changes to better reflect audience metrics.

M&A Strategy: Management remains open to further M&A opportunities, emphasizing the need for both consolidation and transformation to enhance shareholder value.

Market Conditions: The company is cautiously optimistic about future revenue growth, particularly in sports and political advertising, despite current headwinds. Overall, while Scripps faced significant challenges in Q2 2026, particularly related to measurement changes and economic pressures, the company is actively pursuing strategic initiatives aimed at transformation and growth, with a focus on sports and operational efficiency.