Scripps takes $1.1 billion networks impairment as Q2 revenue falls 9%

The E.W. Scripps Co. reported a $1.2 billion loss attributable to shareholders in the second quarter of 2026 after taking a $1.1 billion impairment charge against its national networks business, while revenue fell 9.2% amid advertising weakness and retransmission disputes.

Scripps reported second-quarter revenue of $490 million, down $49.7 million from a year earlier. The loss amounted to $12.68 per share, compared with a loss of $51.7 million, or 59 cents per share, in the second quarter of 2025.

The noncash goodwill and intangible asset impairment at Scripps Networks accounted for $11.61 of the per-share loss. Scripps said the charge reflected continued weakness in national advertising, ratings pressure and broader economic uncertainty.

The quarter also included $35.8 million in restructuring costs and a $9.3 million gain from Scripps’ station swap with Gray Media. Combined, the impairment, restructuring expenses and station transaction increased the quarterly loss by $11.83 per share.

Scripps President and CEO Adam Symson said the results did not reflect the progress the company believes it is making through a broader restructuring effort.

“We’re in the midst of transforming Scripps through fundamental changes in how we operate,” Symson said, pointing to the use of technology, artificial intelligence and automation to reduce expenses and change operations.

Scripps is targeting $125 million to $150 million in additional enterprise EBITDA by 2028 through cost reductions and revenue initiatives. The company now expects to have implemented about $100 million in annual run-rate savings by the end of 2026.

Scripps said Tuesday it would eliminate 268 jobs, representing about 6% of its workforce. The impact of those reductions is expected to begin showing up in third-quarter expenses.

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Combined segment, shared services and corporate expenses fell 3% to $441 million during the second quarter, from $457 million a year earlier.

Local Media revenue was $317 million, down 5.4% on a reported basis. Core advertising revenue declined 8.7% to $125 million, while political advertising jumped to a second-quarter record of $28 million from $2.6 million during the non-election-year quarter in 2025.

Scripps now expects local political advertising revenue of $225 million to $250 million for full-year 2026.

Distribution revenue fell 17% to $161 million. Scripps said temporary station blackouts during negotiations with Comcast and DirecTV reduced second-quarter distribution revenue by $26.7 million.

The company completed three retransmission consent agreements covering the majority of its pay-TV subscriber households scheduled for renewal this year.

Local Media expenses declined 6.5% to $261 million, leaving segment profit essentially flat at $55.8 million.

When adjusted to account for station transactions as though they had occurred at the beginning of 2025, Local Media revenue declined 1.2%, core advertising fell 4.8% and segment profit increased from $51.4 million to $55.8 million.

Scripps Networks revenue dropped 16% to $172 million, while segment expenses declined 2.3% to $146 million. Segment profit fell to $25.5 million from $55.9 million a year earlier.

On an adjusted combined basis accounting for the sale of Court TV, Networks revenue declined 13% and expenses increased 3.7%. Adjusted segment profit fell from $57.2 million to $25.5 million.

Scripps attributed the Networks decline to the Court TV sale, continued weakness in national advertising — particularly direct-response advertising — declining linear television audiences and advertisers shifting spending to streaming and digital platforms.

The company also cited changes to Nielsen’s audience measurement methodology as a factor affecting the business and said it is working with Nielsen to mitigate the impact.

Scripps continued expanding its sports rights portfolio during the quarter. The company signed its first NBA franchise, the Detroit Pistons, to a multiyear local distribution agreement and reached a full-season local rights deal with the NHL’s Nashville Predators.

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Both agreements are scheduled to begin this fall and are expected to contribute incremental local core advertising revenue.

Nationally, Scripps’ ION secured U.S. television rights to the 2027 Women’s Volleyball World Cup.

The company also continued reshaping its station portfolio, acquiring a second Big Four affiliate in Lexington, Kentucky, and completing a station swap with Gray Media involving five midsized and small markets that expanded Scripps’ presence in the Mountain West.

Earlier in 2026, Scripps sold WFTX in Fort Myers, Florida, and WRTV in Indianapolis, Indiana.

Scripps also promoted Dean Littleton to president of media, a newly created position overseeing the company’s roughly 60 local television stations, Scripps Networks and Scripps News.

Scripps ended the quarter with $13 million in cash and cash equivalents and $2.5 billion in total debt. Long-term debt included $1.7 billion in senior notes, $558 million in term loans and $314 million drawn through its accounts receivable securitization facility.

The company made $60.6 million in principal prepayments on its June 2028 and November 2029 term loans during the first six months of the year.

Scripps also did not declare or pay either quarterly dividend on its preferred stock during the first half of 2026. Unpaid cumulative preferred dividends totaled $150 million as of June 30.

Under the terms of Berkshire Hathaway’s preferred equity investment, Scripps cannot pay dividends on or repurchase common stock until the preferred shares have been redeemed.

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