Nexstar shares slipped 1.0% to $187.91 at the latest close. The latest report shows revenue rising 62.2% to $2.0 billion in the three months ended June 30, while operating income climbed 70% to $362 million.
The less tidy version is that Nexstar bought much of the growth. TEGNA supplied $697 million of the $764 million increase in revenue, with the existing Broadcast business adding another $86 million.
"The Company’s revenues increased by $764 million, or 62.2%, for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to $697 million of incremental revenue from our acquisition of TEGNA and an $86 million increase in revenues from our Broadcast business units."
Nexstar, 10-Q, 2026-08-07
That puts the acquisition at the center of the comparison, not in the footnotes. Operating margin still improved to 18.2% from 17.3%, suggesting the larger business produced more operating profit per dollar of revenue. Net income rose only 23.7%, to $120 million, and net margin fell to 6.0% from 7.9%.
The filing points to financing costs. Nexstar said interest expense rose $115 million, or 59.3%, because of new borrowings tied to the merger and refinancing of existing debt, partly offset by lower interest from debt repayments.
"Interest expense, net increased $115 million, or 59.3%, primarily due to interest incurred on new borrowings in connection with the Merger and the refinancing of certain existing indebtedness, offset in part by a decrease in interest from debt repayments."
Nexstar, 10-Q, 2026-08-07
The arithmetic is straightforward: the acquisition added revenue while overall operating income climbed, but financing costs absorbed more of the result before it reached shareholders. Diluted EPS rose 18.0% to $3.61, slower than operating income, while the diluted share count edged up 1.3%.
The balance sheet shows the scale of the transaction. Cash was $218 million at June 30, down from $234 million a year earlier, while accounts receivable reached $1.6 billion from $1.0 billion. Nexstar does not say why receivables grew at nearly the pace of revenue, so the next comparison matters more than the isolated number.
Nexstar ended 2025 with $5.9 billion of net debt and an enterprise value of $11.7 billion. Its current P/E is 52.9 times, alongside a business whose latest annual revenue fell 8.5% and whose net margin was 2.2%. The current period therefore requires separating acquired scale from the cost of carrying it.
Nexstar’s next quarterly report can clarify the tension by showing whether cash, accounts receivable, and interest expense continue to move alongside the enlarged revenue base.
The three-month filing shows acquisition-led revenue growth alongside higher merger-related financing costs.