Sinclair’s second quarter results disappointed investors, with the stock declining sharply after both revenue and adjusted EBITDA missed Wall Street’s expectations. Management attributed the underperformance primarily to continued softness in distribution revenue, as subscriber growth from virtual multichannel video programming distributors (MVPDs) lagged projections. Advertising trends remained mixed, with certain categories pressured by macroeconomic and tariff-related challenges, though management did highlight some stabilization in core advertising late in the quarter. CEO Chris Ripley acknowledged the ongoing uncertainties, stating, “Several large categories remain hampered by macroeconomic and tariff-related uncertainty, but we have started to see signs of improvement over the past several weeks.”
Is now the time to buy SBGI? Find out in our full research report (it’s free).
Sinclair (SBGI) Q2 CY2025 Highlights:
- Revenue: $784 million vs analyst estimates of $801.2 million (5.4% year-on-year decline, 2.2% miss)
- Adjusted EPS: -$0.94 vs analyst estimates of -$1.08 (12.7% beat)
- Adjusted EBITDA: $102 million vs analyst estimates of $103.7 million (13% margin, 1.6% miss)
- Revenue Guidance for Q3 CY2025 is $764 million at the midpoint, below analyst estimates of $792.2 million
- EBITDA guidance for Q3 CY2025 is $82 million at the midpoint, below analyst estimates of $109 million
- Operating Margin: 2.7%, down from 7.7% in the same quarter last year
- Market Capitalization: $1.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sinclair’s Q2 Earnings Call
- Dan Kurnos (Benchmark) asked about Sinclair's M&A plans and the potential for remedies in affiliate network relationships. CEO Chris Ripley detailed regulatory changes supporting future acquisitions and explained how recent deregulatory actions enhance Sinclair’s negotiating position with networks.
- Kurnos (Benchmark) also probed on subscriber trends in virtual MVPDs. Ripley acknowledged that a major partner lost subscribers quarter-over-quarter, but expects a rebound during football season, noting the segment’s increased seasonality.
- Steven Cahall (Wells Fargo) questioned the accretion from recent deals and the risk to retransmission growth guidance. Ripley highlighted the near-term financial benefits of new JSA buy-ins and the impact of regulatory relief, while lowering retransmission CAGR guidance to low single digits.
- Cahall (Wells Fargo) asked about core advertising demand. COO Rob Weisbord signaled cautious optimism, citing early signs of recovery in Tier 2 automotive and sports, but emphasized ongoing macro pressures.
- Benjamin Soff (Deutsche Bank) inquired about the impact of recent asset sales on guidance and the monetization strategy for Ventures assets. Sahai clarified that half of the sequential decline in distribution revenue was due to divestitures and that further Ventures asset monetizations are expected later in the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) Sinclair’s ability to stabilize and grow core advertising revenues as economic and tariff-related uncertainties persist; (2) the pace and financial impact of new M&A activity enabled by regulatory changes; and (3) progress in monetizing Ventures portfolio assets and shifting toward majority-owned, operationally controlled businesses. The execution of these priorities will be key to navigating a challenging industry environment.
Sinclair currently trades at $14.92, up from $14.15 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
