The E.W. Scripps Company

Company Overview

Business Model: The E.W. Scripps Company is a diversified media enterprise that serves audiences and businesses through a portfolio of over 60 local television stations across more than 40 markets and national news and entertainment networks. The Company generates revenue primarily through advertising sales (core, political, digital, connected TV) and distribution fees from cable operators, satellite carriers, and other multi-channel video programming distributors (MVPDs). Its offerings include network-affiliated local news, information, sports, and entertainment content, national news outlets (Scripps News, Court TV), and popular entertainment brands (ION, Bounce, Grit, ION Mystery, ION Plus, Laff). The Company also manages the Scripps National Spelling Bee and provides the Tablo television viewing device.

Market Position: The E.W. Scripps Company's local television station group reaches approximately 25% of the nation’s television households, with affiliations including ABC, NBC, CBS, and FOX. Its Scripps Networks reach nearly every American household through free over-the-air broadcast, cable/satellite, connected TV, and digital distribution. The ION network holds the fifth-largest average prime-time audience among all broadcast networks. The Company is strategically expanding its television networks and local brands on free streaming platforms to capitalize on cord-cutting trends.

Recent Strategic Developments:

• EdgeBeam Wireless, LLC Joint Venture (January 2025): Formed a joint venture with Gray Media, Nexstar Media Group, Inc., and Sinclair, Inc. to provide expansive, reliable, and secure data delivery services leveraging ATSC 3.0 transmission standard. The Company committed $12.8 million for a 25% ownership interest, with $6.4 million paid in 2025.
• Sports Media Rights Agreements (March & May 2025): Secured multi-year agreements to televise non-nationally exclusive games for the Las Vegas Aces (WNBA, began May 2025) and the Tampa Bay Lightning (NHL, began September 2025).
• Debt Refinancing (April & August 2025): Completed a series of refinancing transactions, including issuing new term loans ($545 million tranche B-2, $340 million tranche B-3) and a $750 million senior secured second lien notes (2030 Senior Notes). This facilitated the repayment of prior term loans and the 2027 Senior Notes, and established a new $208 million revolving credit facility and a $450 million accounts receivable securitization facility.
• Station Swap with Gray Media, Inc. (July 2025): Agreed to swap television stations across five markets, acquiring KKTV (CBS), KKCO (NBC), KJCT-LP (ABC), KMVT (CBS), and KSVT-LD (Fox) while divesting WSYM (Fox) and KATC (ABC). The transaction involves no cash consideration and is pending regulatory approvals.
• Station Sales (September & October 2025): Reached agreements to sell WFTX (Fox-affiliated, Fort Myers, FL) for $40.0 million and WRTV (ABC-affiliated, Indianapolis, IN) for $83.0 million, both expected to close in early March 2026.
• Court TV Sale (Q4 2025): Committed to and closed the sale of the Court TV network on February 9, 2026, recognizing a $19.5 million non-cash charge. A 3-year distribution agreement for continued carriage was also established.
• INYO Broadcast Holdings Call Option Exercise (February 2026): Notified INYO Broadcast Holdings of the exercise of options to acquire assets of some or all of 23 ION television stations, with an aggregate purchase price of approximately $54 million, subject to FCC consent and closing conditions.
• Enterprise-Wide Transformation Plan (February 2026): Announced a plan targeting annualized enterprise EBITDA growth of $125 million to $150 million by 2028 through cost savings and revenue growth initiatives, leveraging AI and automation.

Geographic Footprint: The E.W. Scripps Company operates more than 60 local television stations in over 40 U.S. markets, reaching approximately 25% of the nation’s television households. Its national news and entertainment networks (Scripps News, Court TV, ION, Bounce, Grit, ION Mystery, ION Plus, Laff) reach nearly every U.S. television home through various distribution methods.

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 40.8% (Calculated as (Total Operating Revenues - Cost of Revenues) / Total Operating Revenues)
• Operating Margin: 8.5% (Calculated as Operating Income / Total Operating Revenues)
• Net Margin: -4.7% (Calculated as Net Income / Total Operating Revenues)

Investment in Growth (2025):

• R&D Expenditure: Not explicitly disclosed as a separate line item.
• Capital Expenditures: $46,577 thousand
• Strategic Investments: $6,943 thousand in investment purchases, including $6.4 million cash contribution to EdgeBeam Wireless, LLC.

Business Segment Analysis

Local Media

Financial Performance (2025 vs. 2024):

• Revenue: $1,345,563 thousand (-19.6% YoY)
• Segment Profit: $193,587 thousand (-62.3% YoY)
• Operating Margin: 14.4% (Calculated as Segment Profit / Revenue)
• Key Growth Drivers: Core advertising revenue increased by $13.3 million (+2.4% YoY). Distribution revenues decreased by $15.6 million (-2.0% YoY) due to mid-single-digit subscriber declines, partially offset by 3.6% rate increases from renewal negotiations covering ~25% of subscriber households. Political advertising revenue decreased significantly by $323 million in this non-election year. Programming expense increased by $24.2 million (+4.6% YoY) due to new sports rights contracts for the Las Vegas Aces and Tampa Bay Lightning, and contractual rate increases for Vegas Golden Knights and Utah Mammoth.

Product Portfolio:

• Major product lines and services: Free over-the-air news, information, sports, and entertainment content. Network programming (ABC, NBC, CBS, FOX affiliates), local sporting events, syndicated programming, and original programming. Digital, mobile, social, and over-the-top (OTT) content distribution.
• New product launches or major updates: Multi-year agreements to televise Las Vegas Aces (WNBA) and Tampa Bay Lightning (NHL) games. Partnership with Vegas 34 to produce "In the Paint" show for Las Vegas Aces.

Market Dynamics:

• Competitive positioning within segment: Operates in over 40 markets, reaching approximately 25% of U.S. television households. Competes for advertising with other local media (radio, cable TV, newspapers, digital platforms, direct mail).
• Key customer types and market trends: Local and national businesses (automotive, retail, services, health-care, home improvement), political advertisers, cable operators, satellite carriers, and other MVPDs. Subject to cyclical factors like election campaigns and economic conditions.

Scripps Networks

Financial Performance (2025 vs. 2024):

• Revenue: $804,217 thousand (-3.8% YoY)
• Segment Profit: $236,844 thousand (+24.5% YoY)
• Operating Margin: 29.4% (Calculated as Segment Profit / Revenue)
• Key Growth Drivers: Lower ratings in key monetized demographics unfavorably impacted revenues by 6.7%. This was partially offset by a 3.4% increase in connected TV (CTV) revenue and a 2.6% increase in advertising spots sold. Employee compensation and benefits decreased by $34.1 million (-28% YoY) due to restructuring efforts and the shutdown of Scripps News' over-the-air broadcast. Programming expense decreased by $26.6 million (-7.5% YoY) due to lower carriage affiliation fees and syndicated programming costs, partially offset by a $3.7 million increase in sports rights fees.

Product Portfolio:

• Major product lines and services: National news outlets (Scripps News, Court TV) and entertainment brands (ION, Bounce, Grit, ION Mystery, ION Plus, Laff).
• New product launches or major updates: Continued airing of WNBA Friday night matchups on ION. Scripps News transitioned to streaming and digital platforms only, ceasing over-the-air broadcast in November 2024. Court TV was sold in February 2026.

Market Dynamics:

• Competitive positioning within segment: Networks reach nearly every U.S. television home. ION has the fifth-largest average prime-time audience among all broadcast networks. Over-the-air (OTA) networks are positioned to capitalize on cord-cutting trends.
• Key customer types and market trends: National advertisers (consumer-packaged goods, pharmaceutical, insurance industries). Subject to seasonality, market-based variations, and general economic conditions. Viewership fragmentation due to direct content-to-consumer delivery and streaming platforms.

Sub-segment Breakdown:

• ION: Available in ~99% of U.S. TV broadcast homes, broadcasts scripted crime and justice procedural programming, available as a free advertising-supported streaming television (FAST) channel.
• Bounce: Available in ~95% of U.S. TV broadcast homes, African American broadcast network with licensed and original dramas, sitcoms, movies, and specials. Bounce XL available as app/FAST channel.
• Court TV: Available in ~87% of U.S. TV broadcast homes, devoted to live trial coverage and legal analysis. Available as app/FAST channel. (Sold Feb 2026)
• Grit: Available in ~98% of U.S. TV broadcast homes, appeals to male viewers with iconic Western series and movies. Grit Xtra available as FAST channel.
• ION Mystery: Available in ~97% of U.S. TV broadcast homes, programming anchored in true-crime and justice procedural programming (e.g., NCIS, CSI franchises). Available as FAST channel.
• ION Plus: Available in ~87% of U.S. TV broadcast homes, features action and suspense programming (e.g., Hudson & Rex, Bull, MacGyver, Scorpion). Available as FAST channel.
• Laff: Available in ~95% of U.S. TV broadcast homes, targets comedy-lovers (18-49) with popular sitcoms. Laff More available as FAST channel.
• Scripps News: National streaming news channel focused on objective, fact-based reporting. Ceased over-the-air distribution in November 2024, available on multiple streaming and digital platforms as app/FAST channel.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: No shares repurchased in 2025, 2024, or 2023.
• Dividend Payments: No preferred stock dividends declared or paid in 2025 or 2024. Preferred stock dividends of $48.0 million were paid in 2023.
• Future Capital Return Commitments: Prohibited from paying dividends on and repurchasing common shares until all Series A preferred shares are redeemed. A debt repurchase authorization of up to $500 million for senior secured and unsecured notes expires March 1, 2026.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $27,923 thousand
• Total Debt: $2,645,256 thousand (aggregate principal amount)
• Net Cash Position: $(2,617,333) thousand (Total Debt - Cash and Equivalents)
• Debt Maturity Profile:
  • Accounts receivable securitization facility: $361 million outstanding, matures April 10, 2028 (interest rate 7.29%).
  • Revolving credit facilities: No borrowings outstanding, $208 million facility matures July 7, 2027 (interest rate SOFR + 5.50%).
  • Term loans: $619 million outstanding, with annual principal payments of $8.9 million. June 2028 term loan ($281.1 million outstanding, interest rate 9.60%), November 2029 term loan ($337.6 million outstanding, interest rate 7.20%).
  • Senior secured notes: $1.3 billion outstanding. January 2029 notes ($523.4 million, 3.875%), August 2030 notes ($750 million, 9.875%).
  • Senior unsecured notes: $392.1 million outstanding. January 2031 notes ($392.1 million, 5.375%).

Cash Flow Generation (2025):

• Operating Cash Flow: $53,100 thousand
• Free Cash Flow: $6,523 thousand (Operating Cash Flow - Capital Expenditures of $46,577 thousand)
• Cash Conversion Metrics: Not explicitly detailed.

Operational Excellence

Production & Service Model: The Company provides free over-the-air news, information, sports, and entertainment content. It employs a "hyper-local" strategy in Local Media by training multi-media journalists to cover local news for over-the-air and digital platforms. Certain functions like master control, traffic, graphics, research, and political advertising are centralized at company-owned hubs to allow local stations to focus resources on content creation and revenue-producing activities. The Company balances syndicated programming with original programming to improve financial performance.

Supply Chain Architecture: Key Suppliers & Partners:

• Network Affiliation: ABC, NBC, CBS, FOX (for local stations).
• Content Providers: Big 4 broadcast networks, independent producers (for syndicated programming), Women's National Basketball Association (Las Vegas Aces), National Hockey League (Tampa Bay Lightning, Florida Panthers, Vegas Golden Knights, Utah Mammoth).
• Joint Venture Partners: Gray Media, Inc., Nexstar Media Group, Inc., Sinclair, Inc. (for EdgeBeam Wireless, LLC).
• Distribution Partners: Cable operators, satellite carriers, other MVPDs, local television broadcasters (for Scripps Networks carriage agreements).

Facility Network:

• Manufacturing: Not applicable (media company).
• Research & Development: Not explicitly detailed, but innovation in ATSC 3.0 and AI is a focus.
• Distribution: Owned or leased facilities and equipment for television stations, including towers for signal transmission. Scripps Networks primarily leases executive offices, sales offices, and studio space, while its critical uplink and monitoring site is owned.

Operational Metrics:

• Efficiency measures: Centralization of functions (master control, traffic, graphics, research, political advertising) to optimize local resources.
• Quality indicators: Not explicitly detailed, but "compelling news content" and "quality programming" are stated objectives.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Local sales staff for local advertising, Washington, D.C. sales office for political advertising.
• Channel Partners: Cable operators, satellite carriers, other MVPDs, other online video distributors, independent broadcast affiliates (for ION programming).
• Digital Platforms: Business websites, tablet and mobile products, over-the-top (OTT) apps, free advertising-supported streaming television (FAST) channels (ION, Bounce XL, Grit Xtra, ION Mystery, ION Plus, Laff More, Scripps News).

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Local and national businesses (e.g., car dealerships, health-care facilities, home improvement companies, automobile manufacturers, telecommunications companies, insurance providers).
• Strategic Partnerships: Las Vegas Aces (WNBA), Tampa Bay Lightning (NHL), Gray Media, Inc., Nexstar Media Group, Inc., Sinclair, Inc. (EdgeBeam Wireless, LLC).
• Customer Concentration: Local television stations have significant exposure to advertising in the automotive, retail, and services industries. National networks have significant exposure to advertising in the consumer-packaged goods, pharmaceutical, and insurance industries.

Geographic Revenue Distribution:

• Local Media: Operating in over 40 markets, reaching approximately 25% of U.S. television households.
• Scripps Networks: Reaches nearly every U.S. television home.
• Growth Markets: Expansion on free streaming platforms and connected TV (CTV) revenue growth (3.4% increase in 2025).

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The media industry is experiencing significant change, including audience fragmentation due to the growth of direct content-to-consumer delivery channels and streaming platforms (cord-cutting). There is increased competition for content and a shift in advertising spend from traditional linear TV to digital advertising. The industry is also on the verge of adopting new measurement currencies and incorporating set-top box and smart TV data, which could impact how over-the-air (OTA) viewership is captured. ATSC 3.0 transmission standard is an emerging technology offering enhanced services and improved signal reception.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Other Television Stations: In the same local markets.
• Radio Stations: For local advertising.
• Cable Television Systems: For local advertising and audience.
• Newspapers: For local advertising.
• Digital Platforms: For advertising and audience.
• Direct Mail: For local advertising.
• Streaming Services: Subscription Video on Demand (SVOD) services with advertising-supported versions (e.g., YouTube TV), other online video distributors, and content creators delivering programming directly to consumers.

Emerging Competitive Threats: New measurement currencies that may undercount OTA viewing, continued audience fragmentation, increased competition for content from new market entrants and exclusive use of content on streaming services owned by content creators, and the rapid global advancement of artificial intelligence and machine learning technologies.

Competitive Response Strategy: The Company's strategy includes developing compelling news content and "hyper-local" coverage, balancing syndicated and original programming, expanding television networks and local brands on free streaming platforms (FAST channels), forming strategic joint ventures like EdgeBeam Wireless, LLC to leverage ATSC 3.0, and securing local sports rights. It is also implementing an enterprise-wide transformation plan leveraging AI and automation for cost savings and revenue growth.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Advertising revenues are sensitive to economic downturns, programming popularity, linear TV viewing declines (cord-cutting, migration to streaming), and unpredictable political advertising cycles. Consolidation of local advertisers and disruption in key advertising industries (automotive, retail, services, CPG, pharmaceutical, insurance) could adversely impact revenue. New measurement currencies may undercount OTA viewership.
• Technology Disruption: Fragmentation of television audiences by direct content-to-consumer delivery and streaming platforms impacts advertising rates and retransmission consent revenues. The voluntary adoption of ATSC 3.0 presents uncertainties regarding costs, benefits, and public acceptance.
• Customer Concentration: Not explicitly detailed as a specific risk, but reliance on MVPDs for distribution revenue and specific industries for advertising implies some concentration.

Operational & Execution Risks

• Supply Chain Vulnerabilities: Loss of network affiliation or carriage agreements, or increased costs of renewals, could adversely affect operating results. Increased competition for content could reduce availability or increase costs.
• Supplier Dependency: Reliance on Big 4 broadcast networks for programming and local television broadcasters/cable/satellite providers for network carriage.
• Loss of Skilled Employees: Inability to attract and retain talent could adversely affect business continuity and strategic plan execution, potentially increasing operating costs.
• Acquisitions, Joint Ventures, and Strategic Alliances: Involve risks such as increasing leverage, combining cultures/systems, unexpected liabilities, and potential diversion of management attention. FCC and antitrust approvals are required for station acquisitions, which could lead to divestitures.
• Cybersecurity: Risks of security breaches, malware, data theft, network disruption, and denial of service could lead to disclosure of confidential information, operational disruption, brand damage, legal exposure, and financial losses. AI advancements may heighten these risks.
• AI Use: Risks include ethical considerations, public perception, intellectual property protection, regulatory compliance, privacy, data security, and reliability/accuracy of AI-produced information.

Financial & Regulatory Risks

• Market & Financial Risks: Substantial debt ($2.6 billion outstanding as of December 31, 2025) requires significant cash flow for principal and interest payments, potentially limiting funds for other business purposes and increasing vulnerability to economic downturns. Variable rate indebtedness exposes the Company to interest rate risk. Restrictions from preferred shares limit flexibility for common share dividends and repurchases.
• Credit & Liquidity: Ability to service debt depends on cash flow generation, which is subject to economic and industry conditions. Volatility in capital markets may impact ability to obtain additional financing or refinance existing debt. Debt covenants (e.g., maximum first lien net leverage ratio) impose restrictions on operations and corporate actions, with non-compliance leading to default.
• Regulatory & Compliance Risks: Broadcast television is subject to extensive FCC jurisdiction, including license renewals (up to 8 years), ownership rules (national audience reach ~38%), and content regulations. Changes in FCC rules (e.g., retransmission consent, ATSC 3.0 simulcasting requirements, "white spaces" spectrum use) or enforcement efforts could adversely affect operations, programming costs, or revenues.

Geopolitical & External Risks

• Geopolitical Exposure: Catastrophic events or geopolitical conditions that disrupt domestic or international economies could adversely affect advertising spending.
• Trade Relations: Not explicitly detailed.
• Sanctions & Export Controls: Not explicitly detailed.

Innovation & Technology Leadership

Research & Development Focus:

• Core Technology Areas: ATSC 3.0 transmission standard (leveraged in EdgeBeam Wireless, LLC joint venture), Artificial Intelligence (AI) and automation (part of enterprise-wide transformation plan).
• Innovation Pipeline: Development of enhanced and innovative services through ATSC 3.0, and internal AI platform "Engine Room" for capability building and function-specific skill development.
• New Technology Development: Tablo television viewing device for watching and recording free over-the-air and streaming channels.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed, but implied by technology focus.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: Not explicitly detailed.

Technology Partnerships:

• Strategic Alliances: EdgeBeam Wireless, LLC joint venture with Gray Media, Nexstar Media Group, Inc., and Sinclair, Inc. to leverage ATSC 3.0 for data delivery services.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company focuses on attracting, developing, and retaining future-ready talent, with leadership programs designed to cultivate effective leaders at every level. Visible executive sponsorship and consistent communication support a learning culture.

Board Composition: The Board of Directors oversees cybersecurity and technology risks through the Audit Committee, which receives quarterly updates from the CISO. Certain descendants of Edward W. Scripps own approximately 93% of Common Voting shares and can elect two-thirds of the Board.

Human Capital Strategy

Workforce Composition (as of December 31, 2025):

• Total Employees: Approximately 4,600 (full-time and part-time).
• Geographic Distribution: Employees across the country in local communities.
• Skill Mix: Focus on multi-media journalists, technical skills, and AI literacy. Approximately 330 employees are represented by labor unions, all in Local Media.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Strives to attract and retain talented employees by offering competitive compensation and benefits (base salary, bonus, commissions, merit increases, share-based compensation).
• Retention Metrics: Not explicitly detailed, but "Scripps Voice" listening program aims to understand culture and make improvements.
• Employee Value Proposition: Comprehensive Scripps Choice Plan (health, welfare, paid time off, EAP, student loan assistance, disability, life insurance), Employee Stock Purchase Plan (ESPP), 401(k) defined contribution plan, executive deferred compensation plan.

Diversity & Development:

• Diversity Metrics: Not explicitly detailed.
• Development Programs: Flexible, impactful learning and development opportunities for all employees. Engine Room (enterprise AI platform) launched in 2025 for AI literacy and role-based coaching. Leadership programs emphasize continuous learning, communication, team management, and strategic thinking. Targeted training for journalism and sales.
• Culture & Engagement: Focus on creating an inclusive, engaged, and growth-oriented environment. Open communication channels (emails, videos, employee portal, social media, town halls). Scripps Voice program for candid feedback.

Environmental & Social Impact

Social Impact Initiatives:

• Community Investment: Employees give back in local communities through reporting on critical issues, entertaining audiences, fundraising, and volunteering. The Company offers a paid volunteer time-off program.
• Product Impact: Longtime steward of the Scripps National Spelling Bee. The Tablo device allows households to watch and record free over-the-air and streaming channels, implying accessibility and bridging the digital divide.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Second and fourth quarters normally have higher advertising revenues than the first and third quarters due to increased demand in spring and holiday seasons.
• Economic Sensitivity: Advertising demand is sensitive to local and national economic conditions.
• Industry Cycles: Political advertising revenues increase significantly during even-numbered years (local, state, federal elections), with presidential election years further elevating spending. This creates significant differences in operating results between even- and odd-numbered years.

Planning & Forecasting: Demand forecasting is implied by advertising sales and inventory management, but specific planning and forecasting approaches are not detailed.

Regulatory Environment & Compliance

Regulatory Framework:

• Industry-Specific Regulations: Broadcast television is subject to the jurisdiction of the FCC under the Communications Act of 1934. This includes licensing (up to 8-year terms), ownership rules (e.g., 39% national audience reach, local station limits), programming content (children's TV, political advertising, indecent programming, captioning, audio narration), and spectrum allocation (ATSC 3.0, "white spaces").
• International Compliance: Not explicitly detailed, but the Company files applicable foreign tax returns.

Trade & Export Controls: Not explicitly detailed.

Legal Proceedings: The Company is involved in litigation arising in the ordinary course of business, such as defamation actions and governmental proceedings primarily relating to renewal of broadcast licenses, none of which is expected to result in material loss.

Tax Strategy & Considerations

Tax Profile (2025):

• Effective Tax Rate: 16% (compared to 30% in 2024).
• Geographic Tax Planning: Files consolidated federal income tax returns, consolidated unitary returns in certain states, and other separate state income tax returns for certain subsidiaries.
• Tax Reform Impact: Not explicitly detailed, but the Company has federal operating loss carryforwards of $62 million and state operating loss carryforwards of $322 million at December 31, 2025. A valuation allowance is established for state deferred tax assets. The Company plans to indefinitely reinvest undistributed earnings of non-U.S. subsidiaries.

Insurance & Risk Transfer

Risk Management Framework: The Company is self-insured, up to certain limits, for general and automobile liability, employee health, disability, workers’ compensation claims, and certain other risks. Estimated liabilities for unpaid claims totaled $10.7 million at December 31, 2025. The Company may use derivative financial instruments to modify exposure to interest rate risks but not for speculative trading.