Media, broadcasting, and digital services company E.W. Scripps (NASDAQ: SSP) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 9.2% year on year to $490.4 million. Its GAAP loss of $12.68 per share was significantly below analysts’ consensus estimates.

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StockStory’s Take

E.W. Scripps’ second quarter was marked by operational disruptions and external challenges, yet the market responded positively to management’s transformation efforts. CEO Adam Symson acknowledged the quarter did not meet his expectations, attributing revenue softness to sudden changes in television audience measurement by Nielsen, ongoing declines in linear TV viewing, and temporary blackouts with major pay TV providers. While these factors pressured both advertising and distribution revenue, Symson emphasized, “Our financial performance for the quarter did not meet my expectations,” pointing to the impact of the Nielsen methodology shift, which he estimated was responsible for about half the revenue pressure in the Networks segment.

Looking forward, management’s guidance is shaped by expectations for a recovery in sports-related advertising, the resolution of carriage disputes, and the company’s ongoing transformation plan targeting significant cost savings. Symson highlighted new live sports rights deals, expansion of digital news streams, and the adoption of AI and automation in local news as key levers for future growth. While noting uncertainty around the timing of potential benefits from Nielsen’s forthcoming measurement changes, Symson stressed, “None of the upside of a fix is baked into our guide,” signaling a cautious approach despite anticipated improvements in audience measurement and political advertising volumes.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to measurement headwinds, temporary distribution losses, and ongoing secular shifts, while progress in sports and cost transformation set the stage for future improvement.

• Nielsen measurement challenges: CEO Adam Symson estimated that abrupt changes to Nielsen’s audience measurement methodology accounted for roughly half of the revenue softness in the Networks segment, disproportionately affecting reported audience size and advertising revenue. Nielsen’s changes also led to the underrepresentation of multicultural audiences, with fixes expected later in the year but not yet factored into forecasts.
• Sports rights strategy gains: Scripps expanded its sports portfolio by signing multiyear agreements with the Detroit Pistons (NBA) and Nashville Predators (NHL), and secured national women’s sports events for its ION network. Management expects these additions to materially boost advertising revenue, particularly as the new seasons ramp up in the fourth quarter.
• Distribution disruptions resolved: Temporary blackouts with Comcast and DIRECTV impacted distribution and advertising revenue in the quarter. Management noted that new agreements now cover 70% of subscribers, providing improved margin visibility and expense stability going forward.
• Transformation plan execution: The company accelerated its transformation plan, incorporating AI-powered automation and centralization to reduce costs and streamline local news operations. Scripps achieved $100 million in targeted run-rate savings and implemented significant workforce reductions, affecting 12% of positions since the start of the year.
• Active M&A and portfolio optimization: The period saw continued portfolio reshaping through station acquisitions, divestitures, and swaps, including the formation of new duopolies and deeper market presence. Management views M&A as a key lever for both margin expansion and long-term shareholder value, while noting recent regulatory changes that may further enable industry consolidation.

Drivers of Future Performance

Scripps’ outlook is driven by growth in sports programming, political advertising, and the ongoing impact of digital transformation and cost containment.

• Political advertising surge: Management anticipates record political ad spending for the midterm election cycle, projecting $225–$250 million in revenue, with robust demand across key battleground states. This is expected to significantly lift second-half results, especially as campaigns intensify.
• Sports and digital expansion: The company expects new sports rights and expanded digital news offerings to drive incremental advertising and distribution revenue, particularly as the NBA and NHL seasons begin in the fourth quarter. Management also highlighted continued growth in connected TV revenue, which rose 28% year-over-year.
• Cost savings and automation: The transformation plan, featuring AI automation and centralization, is projected to deliver lasting cost reductions and improve profitability. Management cautioned, however, that benefits from upcoming Nielsen measurement adjustments are uncertain and not included in guidance, reflecting a conservative stance amid ongoing industry headwinds.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the pace of political advertising inflows as the election cycle heats up, (2) the effect of sports programming expansion on advertising and distribution revenue in Q4, and (3) the realization of cost savings and operational improvements from the transformation plan. Additionally, we will monitor the impact of any Nielsen measurement updates on reported audience and revenue.

E.W. Scripps currently trades at $3.61, up from $2.97 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).

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