Sinclair (NASDAQ:SBGI) executives said the company exited 2025 with results above the midpoint of its guidance, improving trends in core advertising, and a balance sheet they believe is positioned to support a multi-year deleveraging effort. Management also outlined plans tied to a potential separation of the company’s Ventures portfolio and discussed regulatory and consolidation dynamics that could influence broadcast industry M&A.
Full-year and fourth-quarter results
For full-year 2025, Sinclair reported total revenue of $3.2 billion and adjusted EBITDA of $483 million, both above the midpoint of management’s guidance. In the fourth quarter, the company generated total revenue of $836 million and adjusted EBITDA of $168 million.
CFO Narinder Sahai said fourth-quarter adjusted EBITDA exceeded the high end of guidance ranges across the total company and each of Sinclair’s reporting segments. He attributed the outperformance to revenue strength and continued cost discipline.
Segment performance and key drivers
In fourth-quarter commentary, Sahai said distribution revenue at the total company level was $438 million, supported by moderating subscriber churn at key MVPD partners. Core advertising revenue was $354 million, which he said reflected demand across most major categories and strength in live sports programming, including the NFL and college football.
Sinclair’s local media segment recorded fourth-quarter total revenue of $734 million, including distribution revenue of $384 million and core advertising revenue of $312 million. Segment adjusted EBITDA was $153 million, which management said benefited from cost management.
In the Tennis segment, fourth-quarter revenue was $62 million and adjusted EBITDA was $21 million, beating the high end of the company’s prior guidance range for the segment. Sahai said the Tennis segment’s core advertising revenue increased 20% and distribution revenue rose 10%, driven by 25% growth in direct-to-consumer subscribers. He also noted ratings and viewing gains, including 8% growth in household and total viewer ratings and a 12% increase in minutes viewed on Tennis Channel 2, the company’s free ad-supported streaming channel.
On a year-over-year basis, fourth-quarter total company revenue declined from $1.0 billion due largely to the absence of political advertising. Sinclair recorded $203 million of political revenue in the fourth quarter of 2024 versus $14 million in the fourth quarter of 2025. Adjusted EBITDA fell to $168 million from $330 million in the year-ago quarter, also primarily due to the political comparison.
Balance sheet actions and deleveraging priorities
Management reiterated that deleveraging remains a top priority. CEO Chris Ripley said Sinclair completed a comprehensive debt refinancing in February 2025, retired the final $89 million of its 2027 notes in October, and established a $375 million accounts receivable facility in November. As a result, management said the nearest material debt maturity is now December 2029.
At year-end, Sinclair reported total debt of $4.4 billion, consolidated cash of $866 million, and total liquidity of about $1.5 billion, including revolver availability. Sahai said consolidated cash included $401 million at Sinclair Television Group (STG) and $465 million at Ventures.
Sahai also highlighted the company’s plan to use upcoming political cycles to reduce leverage, describing 2026 as an expected record midterm political year for Sinclair and pointing to 2028 as another potential opportunity.
Ventures portfolio: cash distributions, liquidity, and repositioning
Ripley said Sinclair’s Ventures portfolio generated $104 million of cash distributions in 2025, including $86 million in the fourth quarter. He noted the distributions included $75 million of exit proceeds from three residential apartment complexes. The company ended 2025 with $465 million of cash and cash equivalents at Ventures, which management said provides flexibility as separation planning continues.
Ripley said the company is being selective with new investments, deploying $25 million in the fourth quarter and $50 million for the full year. He also said the portfolio is shifting away from passive minority investments toward majority-controlled operating businesses to improve operational influence and visibility into earnings and cash flow. As part of that shift, Sinclair initiated a process to monetize select legacy private equity and venture capital fund positions through secondary market transactions.
2026 guidance, political outlook, and industry backdrop
For full-year 2026, Sinclair guided for total revenue of $3.4 billion to $3.54 billion and adjusted EBITDA of $700 million to $740 million. The company’s guidance includes:
- Distribution revenue of $1.72 billion to $1.79 billion
- Core advertising revenue of $1.26 billion to $1.30 billion
- Political advertising revenue of at least $333 million
- Capital expenditures of $75 million to $80 million
- Net interest expense of $300 million to $310 million
- Net cash tax payments of $34 million to $45 million
Management said its core advertising assumptions reflect stable trends supported by a sports-heavy calendar, while also factoring in typical political “crowd-out” dynamics and caution tied to macro headwinds in certain categories. On political, Sahai cited early activity in markets including North Carolina, Maine, Michigan, Nevada, Ohio, and Texas primaries, along with competitive House races, as support for the baseline outlook.
COO Rob Weisbord said fourth-quarter core advertising strength reflected broad category performance and was “boosted” by Sinclair’s acquisition of Digital Remedy. In response to a question, Weisbord said the automotive category was down mid-single digits in 2025 and referenced tariffs and consumer confidence as factors early in the year. He also said Sinclair has reduced its dependence on automotive over time, citing services and legal among top categories.
Weisbord and Ripley also pointed to signs of stabilizing subscriber trends at MVPD partners and highlighted bundling strategies that pair linear video with streaming. Ripley told analysts the company is “very positive” about the long-term outlook for net retransmission revenue, citing trends such as rebundling, “streamflation,” and the emergence of lower-priced bundles that include broadcast stations.
On M&A and consolidation, Ripley said Sinclair is active on smaller portfolio optimization opportunities while conducting a strategic review of its broadcast business for “bigger transformational opportunities.” He also said leverage has not been an impediment in discussions and reiterated that Sinclair would use Ventures resources if needed to unlock a strategic transaction, while describing an “ideal outcome” as a merger on the broadcast side paired with a spin of Ventures. Ripley added that Sinclair would be interested in potential station divestitures arising from a Nexstar-Tegna combination, particularly where they could create duopoly opportunities.
Ripley also discussed regulatory developments at the Federal Communications Commission, including the pending ATSC 3.0 proceeding and changes involving the Top-Four Prohibition and multicast rules. He said the FCC has also opened an inquiry into the sports media marketplace and how streaming exclusives affect consumers and free over-the-air access.
About Sinclair (NASDAQ:SBGI)
Sinclair Broadcast Group, Inc (NASDAQ: SBGI) is a media and entertainment company headquartered in Hunt Valley, Maryland. Founded in 1971 as a single UHF television station operator, Sinclair has grown through strategic acquisitions and organic expansion to become one of the largest owners of local television stations in the United States. Over its history, the company has pursued a diversified portfolio that includes both traditional broadcast assets and newer digital platforms.
At its core, Sinclair operates over 190 television stations affiliated with the major national broadcast networks, including ABC, CBS, NBC, Fox, The CW and MyNetworkTV.
