Scripps Plunges to $119.5M Loss Amidst Revenue Decline, Debt Restructuring

TL;DR

**E.W. Scripps is bleeding cash and revenue, making it a risky bet as advertising dollars dry up and debt piles higher.**

AI Summary

E.W. Scripps Co. reported a significant decline in financial performance for the nine months ended September 30, 2025, with total operating revenues decreasing by 10.7% to $1.59 billion from $1.78 billion in the prior year. This was primarily driven by a substantial 15.0% drop in advertising revenue, falling to $990.37 million from $1.16 billion. The company swung to a net loss of $72.38 million for the nine-month period, a sharp contrast to the net income of $50.83 million in the same period of 2024. Net loss attributable to shareholders was even more pronounced at $119.55 million, compared to a net income of $7.28 million in 2024. Operating income also saw a steep decline, plummeting 35.9% to $141.70 million from $220.87 million. Key business changes include the sale of television stations as evidenced by the Asset Purchase Agreements dated July 7, 2025, and a significant increase in long-term debt to $2.64 billion from $2.56 billion at December 31, 2024. The company also incurred a loss on extinguishment of debt of $10.59 million and other financing transaction costs of $44.54 million for the nine months ended September 30, 2025. Cash and cash equivalents increased to $54.67 million from $23.85 million at year-end 2024, despite a substantial decrease in net cash provided by operating activities, which fell to $7.97 million from $212.39 million.

Why It Matters

This filing reveals a challenging period for E.W. Scripps, with significant revenue contraction and a shift from profit to substantial loss. For investors, the 15% drop in advertising revenue and the increased debt load of $2.64 billion signal headwinds in the media sector and potential liquidity concerns, impacting future dividend capacity and share value. Employees might face further restructuring as the company navigates declining profitability, evidenced by $7.48 million in restructuring costs. Customers could see changes in content or service offerings as the company streamlines operations. Competitively, this performance suggests E.W. Scripps is struggling more than peers to adapt to evolving media consumption habits, potentially losing market share in a fragmented landscape.

Risk Assessment

Risk Level: high — The company reported a net loss of $119.55 million for the nine months ended September 30, 2025, a significant deterioration from a $7.28 million net income in the prior year. Total operating revenues decreased by 10.7% to $1.59 billion, primarily due to a 15.0% decline in advertising revenue. Furthermore, long-term debt increased to $2.64 billion from $2.56 billion, and net cash provided by operating activities plummeted from $212.39 million to $7.97 million, indicating severe cash flow pressure.

Analyst Insight

Investors should consider divesting or avoiding E.W. Scripps (SSP) given the sharp decline in revenue, significant net losses, and increased debt burden. The substantial drop in operating cash flow suggests fundamental business challenges that may persist, making the stock a high-risk proposition.

Financial Highlights

revenue

$1.59B

total Debt

$2.64B

net Income

-$72.38M

eps

-$1.36

cash Position

$54.67M

revenue Growth

-10.7%

Revenue Breakdown

Key Numbers

• $1.59B — Total operating revenues (decreased 10.7% for the nine months ended September 30, 2025, from $1.78 billion in 2024)
• $990.37M — Advertising revenue (decreased 15.0% for the nine months ended September 30, 2025, from $1.16 billion in 2024)
• $(119.55M) — Net loss attributable to shareholders (for the nine months ended September 30, 2025, compared to $7.28 million net income in 2024)
• $2.64B — Long-term debt (increased from $2.56 billion at December 31, 2024)
• $7.97M — Net cash provided by operating activities (decreased significantly from $212.39 million in 2024)
• $10.59M — Loss on extinguishment of debt (incurred for the nine months ended September 30, 2025)
• $44.54M — Other financing transaction costs (incurred for the nine months ended September 30, 2025)
• $54.67M — Cash and cash equivalents (increased from $23.85 million at December 31, 2024)
• $7.48M — Restructuring costs (incurred for the nine months ended September 30, 2025)
• $(1.36) — Net loss per diluted share (for the nine months ended September 30, 2025, compared to $0.08 net income per diluted share in 2024)

Key Players & Entities

• E.W. Scripps Co. (company) — registrant
• Daniel W. Perschke (person) — Senior Vice President, Controller (Principal Accounting Officer)
• Gray Local Media, Inc. (company) — party in Asset Purchase Agreement
• Gray Television Licensee, LLC (company) — party in Asset Purchase Agreement
• Scripps Media, Inc. (company) — party in Asset Purchase Agreement
• ION Television License, LLC (company) — party in Asset Purchase Agreement
• Scripps Broadcasting Holdings, LLC (company) — party in Asset Purchase Agreement
• NASDAQ Global Select Market (regulator) — exchange where Class A Common Stock is registered
• SEC (regulator) — Securities and Exchange Commission
• Bloomberg (company) — financial news organization

FAQ

Risk Factors

• Increased Debt Burden [high — financial]: Long-term debt increased to $2.64 billion from $2.56 billion at December 31, 2024. This increase, coupled with a significant drop in operating cash flow, raises concerns about the company's ability to service its debt.
• Deteriorating Profitability [high — financial]: The company swung to a net loss of $72.38 million for the nine months ended September 30, 2025, compared to a net income of $50.83 million in the prior year. Net loss attributable to shareholders was $119.55 million.
• Declining Operating Income [high — operational]: Operating income plummeted 35.9% to $141.70 million from $220.87 million, indicating significant challenges in core business operations.
• Reduced Operating Cash Flow [high — financial]: Net cash provided by operating activities fell drastically to $7.97 million from $212.39 million, signaling a severe reduction in the company's ability to generate cash from its ongoing business.
• Debt Extinguishment Costs [medium — financial]: The company incurred a loss on extinguishment of debt of $10.59 million and other financing transaction costs of $44.54 million, further impacting profitability and cash flow.
• Sale of Assets [medium — operational]: The sale of television stations, as evidenced by Asset Purchase Agreements dated July 7, 2025, suggests a strategic shift or divestiture, the long-term impact of which is yet to be fully realized.
• Advertising Revenue Decline [high — market]: A 15.0% decrease in advertising revenue to $990.37 million is a significant concern, reflecting potential shifts in advertising spend or competitive pressures within the media landscape.
• Restructuring Costs [medium — operational]: Incurrence of $7.48 million in restructuring costs indicates ongoing efforts to streamline operations, which can impact short-term performance.

Industry Context

The media industry, particularly local news and advertising, is undergoing significant disruption due to digital transformation and changing consumer habits. E.W. Scripps operates in a highly competitive landscape with traditional broadcasters, digital-native news outlets, and social media platforms vying for audience attention and advertising dollars. The decline in advertising revenue for Scripps reflects broader industry trends of shifting ad spend towards digital channels.

Regulatory Implications

As a media company, E.W. Scripps is subject to regulations concerning broadcast licenses, content, and ownership. Changes in these regulations could impact operations. The company's financial performance and debt levels may also attract scrutiny from financial regulators.

What Investors Should Do

1. Monitor debt levels and cash flow generation closely.
2. Analyze the impact of asset sales on future revenue and profitability.
3. Evaluate the effectiveness of cost-saving and restructuring initiatives.
4. Assess the competitive landscape and digital strategy.

Key Dates

• 2025-07-07: Asset Purchase Agreements signed for sale of television stations — Indicates a strategic divestiture or restructuring, impacting the company's asset base and future revenue streams.

Glossary

Net loss attributable to shareholders

The portion of the company's net loss that belongs to the company's common shareholders after accounting for preferred dividends. (Highlights the direct impact of the company's performance on its owners.)

Loss on extinguishment of debt

A loss recognized when a company repays debt before its scheduled maturity date, often due to unfavorable interest rates. (Indicates costs associated with managing the company's debt structure, impacting profitability.)

Net cash provided by operating activities

The amount of cash generated from a company's normal business operations over a period. (A key indicator of a company's ability to generate cash to fund its operations, pay debts, and invest in its future.)

Restructuring costs

Expenses incurred when a company undergoes significant organizational changes, such as layoffs, asset sales, or business process reengineering. (Suggests ongoing efforts to improve efficiency, but can negatively impact short-term financial results.)

Year-Over-Year Comparison

E.W. Scripps Co. has experienced a significant downturn in financial performance compared to the prior year. Total operating revenues decreased by 10.7%, driven by a 15.0% drop in advertising revenue. The company swung from a net income of $50.83 million to a net loss of $72.38 million, with net loss attributable to shareholders widening considerably. Operating income also saw a substantial decline of 35.9%. While cash and cash equivalents increased, this was against a backdrop of a drastic fall in net cash provided by operating activities, indicating a severe deterioration in core business cash generation.

Key Financial Figures

• $0.01 — stered Class A Common Stock, par value $0.01 per share SSP NASDAQ Global Select Mark

Filing Documents

• ssp-20250930.htm (10-Q) — 1468KB
• ex101-assetpurchaseagreeme.htm (EX-10.01) — 553KB
• ex102-assetpurchaseagreeme.htm (EX-10.02) — 564KB
• ssp-ex31a20250930x10q.htm (EX-31.A) — 9KB
• ssp-ex31b20250930x10q.htm (EX-31.B) — 10KB
• ssp-ex32a20250930x10q.htm (EX-32.A) — 4KB
• ssp-ex32b20250930x10q.htm (EX-32.B) — 4KB
• 0000832428-25-000058.txt ( ) — 10015KB
• ssp-20250930.xsd (EX-101.SCH) — 53KB
• ssp-20250930_cal.xml (EX-101.CAL) — 100KB
• ssp-20250930_def.xml (EX-101.DEF) — 294KB
• ssp-20250930_lab.xml (EX-101.LAB) — 704KB
• ssp-20250930_pre.xml (EX-101.PRE) — 493KB
• ssp-20250930_htm.xml (XML) — 1537KB

- Financial Information

PART I - Financial Information 1. Financial Statements 3 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 3 3. Quantitative and Qualitative Disclosures About Market Risk 3 4. Controls and Procedures 3

- Other Information

PART II - Other Information 1. Legal Proceedings 3 1A. Risk Factors 3 2. Unregistered Sales of Equity Securities and Use of Proceeds 3 3. Defaults Upon Senior Securities 3 4. Mine Safety Disclosures 3 5. Other Information 4 6. Exhibits 4

Signatures

Signatures 5 2 PART I As used in this Quarterly Report on Form 10-Q, the terms "Scripps," "Company," "we," "our," or "us" may, depending on the context, refer to The E.W. Scripps Company, to one or more of its consolidated subsidiary companies, or to all of them taken as a whole.

Financial Statements

Item 1. Financial Statements The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

Controls and Procedures

Item 4. Controls and Procedures The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q. PART II

Legal Proceedings

Item 1. Legal Proceedings We are involved in litigation and regulatory proceedings 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.

Risk Factors

Item 1A. Risk Factors There have been no material changes to the risk factors disclosed in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no sales of unregistered equity securities during the quarter ended September 30, 2025.

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the quarter ended September 30, 2025.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures None. 3

Other Information

Item 5. Other Information Director and Officer Trading Arrangements None of our directors or officers adopted , modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(a) of Regulation S-K) during the quarter ended September 30, 2025.

Exhibits

Item 6. Exhibits Exhibit Number Exhibit Description 10.01 Asset Purchase Agreement for the Sa le of T elevision S tations by and a mong Gray Local Media, Inc., Gray Television Licensee, LLC, Scripps Media, Inc. and ION Television License, LLC dated as of J uly 7, 2025 10.02 Asset Purchase Agreement for the S ale of T elevision S tations by and among Scripps Media, Inc., Scripps Broadcasting Holdings, LLC, ION Television License, LLC, Gray Local Media, Inc . and Gray Television Licensee, LLC, dated as of July 7, 2025 31(a) Section 302 Certifications * 31(b) Section 302 Certifications * 32(a) Section 906 Certifications * 32(b) Section 906 Certifications * 101 The Company's unaudited Condensed Consolidated Financial Statements and related Notes for the three and nine months ended September 30, 2025 from this Quarterly Report on Form 10-Q, formatted in iXBRL (Inline eXtensible Business Reporting Language). * 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). * * - Filed herewith 4

Signatures

Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE E.W. SCRIPPS COMPANY Dated: November 7, 2025 By: /s/ Daniel W. Perschke Daniel W. Perschke Senior Vice President, Controller (Principal Accounting Officer) 5 The E.W. Scripps Company Index to Financial Information (Unaudited) Item Page Condensed Consolidated Balance Sheets F- 2 Condensed Consolidated Statements of Operations F- 3 Condensed Consolidated Statements of Comprehensive Income (Loss) F- 4 Condensed Consolidated Statements of Cash Flows F- 5 Condensed Consolidated Statements of Equity F- 6 Notes to Condensed Consolidated Financial Statements F- 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations F- 26

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk F- 36

Controls and Procedures

Controls and Procedures F- 37 F-1 The E.W. Scripps Company Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share data) As of September 30, 2025 As of December 31, 2024 Assets Current assets: Cash and cash equivalents $ 54,665 $ 23,852 Accounts receivable (less allowances — $ 9,200 and $ 7,449 ) 561,521 568,193 Miscellaneous 51,668 37,970 Assets held for sale 36,938 — Total current assets 704,792 630,015 Investments 15,306 8,884 Property and equipment 416,569 453,900 Operating lease right-of-use assets 100,957 90,136 Goodwill 1,953,482 1,968,574 Other intangible assets 1,558,237 1,635,488 Programming 311,050 402,459 Miscellaneous 29,195 9,119 Total Assets $ 5,089,588 $ 5,198,575 Liabilities and Equity Current liabilities: Accounts payable $ 66,349 $ 100,669 Unearned revenue 22,050 18,159 Current portion of long-term debt 8,854 15,612 Accrued liabilities: Employee compensation and benefits 59,070 81,462 Accrued income taxes 33,287 33,179 Programming liability 153,433 140,502 Accrued interest 25,125 31,407 Miscellaneous 43,364 35,811 Other current liabilities 25,887 25,593 Total current liabilities 437,419 482,394 Long-term debt (less current portion) 2,636,738 2,560,560 Deferred income taxes 284,314 293,634 Operating lease liabilities 89,919 79,399 Other liabilities (less current portion) 380,750 464,574 Equity: Preferred stock, $ 0.01 par — authorized: 25,000,000 shares; none outstanding — — Preferred stock — Series A, $ 100,000 par; 6,000 shares issued and outstanding (redemption value of $ 733,753 at September 30, 2025 and $ 688,309 at December 31, 2024) 418,583 416,854 Common stock, $ 0.01 par: Class A — authorized: 240,000,000 shares; issued and outstanding: 76,869,408 and 74,694,541 shares 769 747 Voting — authorized: 60,000,000 shares; issued and outstanding: 11,932,722 and 11,932,722 shares 119 119 Total preferred and common stock 419,471 417,720 Additional paid-in capi

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View this 10-Q filing on SEC EDGAR