Sinclair, Inc.

What they do

Sinclair operates television stations through its wholly owned subsidiary STG and affiliates, distributing third-party network programming, local news, syndicated content and original programming, plus professional sports. It also owns Tennis Channel, a cable network covering major tennis tournaments, and digital media products including podcast brands under AMP Media. As of December 31, 2025, Sinclair had two reportable segments, local media and tennis, while SBG had one reportable segment, local media.

Revenue drivers

• Distribution revenue — Retransmission and carriage fees paid by multichannel video programming distributors and streaming platforms; $444 million in Q2 2026 and $902 million for the first six months of 2026, the largest revenue category.
• Core advertising revenue — Advertising sold on Sinclair's local television stations and digital properties; $308 million in Q2 2026 and $613 million for the first six months of 2026.
• Political advertising revenue — Campaign and issue advertising tied to election cycles; $59 million in Q2 2026 versus $6 million in Q2 2025 and $77 million for the first six months of 2026 versus $12 million a year earlier.
• Other media and non-media revenue — Includes non-broadcast digital and internet services, technical services and non-media investments; $29 million in Q2 2026 and $55 million for the first six months of 2026, the smallest reported category.

Recent performance

Total revenue for the second quarter of 2026 was $840 million, up 7% year-over-year, and Adjusted EBITDA was $149 million, up 45%. Political advertising revenue of $59 million rose 883% versus the prior-year quarter and was 9% above the second quarter of the 2022 midterm cycle. Net loss attributable to the Company was $76 million in Q2 2026, compared with a $64 million loss in Q2 2025. For the first six months of 2026, total revenue was $1,647 million, up 6%, and Adjusted EBITDA was $275 million, up 28%. Sinclair reduced $320 million of debt in the quarter, including a $150 million accounts receivable facility paydown, and ended with $604 million of cash and total liquidity of $1.4 billion.

Strategy

On August 11, 2025, the Board authorized a comprehensive strategic review of the local media segment, evaluating acquisitions, strategic partnerships and business combinations, while simultaneously evaluating separating Ventures through a spin-off, split-off or other transaction. Management has been renewing and extending content and distribution agreements, including a multi-year NBC affiliation renewal covering 21 owned and/or operated NBC affiliates, a YouTube TV carriage agreement adding The Nest and PickleBall TV, and a six-year WTA media rights deal for Tennis Channel. The company has prioritized debt reduction, retiring $320 million of debt in Q2 2026 and an additional approximately $25 million of the B7 term loan in early July. Full-year 2026 Adjusted EBITDA guidance was raised to $730 million-$760 million from $700 million-$740 million, while core advertising revenue guidance was lowered.

Risks

• Strategic review uncertainty — Sinclair may elect not to pursue, or may be unable to complete, transactions from its local media strategic review or the potential separation of Ventures, and the process itself may be costly and disruptive.
• MVPD subscriber declines — Distribution revenue depends on carriage fees from MVPDs and streaming platforms, and management only described traditional MVPD subscriber trends as showing signs of modest stabilization.
• Core advertising softness — Sinclair lowered its core advertising revenue guidance for 2026, citing strong political demand crowding out inventory in competitive markets and caution in cost-pressured advertiser categories.
• Leverage — The company carried total liabilities of $5.18 billion against shareholder equity of $380 million as of June 30, 2026, with long-term debt of $4.35 billion as of December 31, 2025.

Outlook

Management increased full-year 2026 Total Company Adjusted EBITDA guidance to $730 million-$760 million, up from $700 million-$740 million, while leaving total company and local media total revenue and distribution revenue guidance unchanged. Political advertising revenue guidance was increased 13%, to at least $375 million from at least $333 million, based on second-quarter performance and current political trends. Core advertising revenue guidance was decreased, reflecting political demand crowding out inventory and caution in some advertiser categories.