A $1.1 billion non-cash impairment charge weighed heavily on The E.W. Scripps Company’s (NASDAQ:SSP) second-quarter 2026 results, although the media company continued to advance its transformation strategy, expand cost savings and reaffirm expectations for a strong political advertising year.
Key Investor Takeaways
- Scripps (NASDAQ:SSP) reported a net loss of $1.2 billion, primarily due to a $1.1 billion non-cash goodwill and intangible asset impairment.
- The company is targeting $125 million to $150 million of enterprise EBITDA growth by 2028 and expects approximately $100 million of annual run-rate cost savings by the end of 2026.
- Local political advertising reached a second-quarter record, with full-year political revenue now projected between $225 million and $250 million.
- Retransmission disputes with Comcast and DirecTV reduced second-quarter distribution and advertising revenue, while Scripps Networks continued to face pressure from advertising and audience trends.
- The company expects Local Media revenue to increase about 20% in the third quarter, supported by the election cycle.
Why SSP Stock Is in Focus
Scripps reported second-quarter revenue of $490 million, down 9.2% year over year, while recording a loss attributable to shareholders of $1.2 billion, or $12.68 per share. The reported loss was largely driven by a $1.1 billion non-cash goodwill and intangible asset impairment within its Scripps Networks business, accounting for $11.61 per share of the loss.
Operationally, Local Media revenue declined 5.4% to $317 million as retransmission negotiations with Comcast and DirecTV resulted in temporary station blackouts that reduced distribution revenue by $26.7 million during the quarter. Political advertising provided a significant offset, reaching a record $28 million in the quarter compared with $2.6 million a year earlier.
Scripps Networks revenue fell 16% to $172 million, reflecting the sale of Court TV, continued weakness in the national advertising market, declines in traditional linear television viewing and changes to Nielsen’s audience measurement methodology.
Why This Matters for Investors
While the headline loss was driven by a non-cash accounting charge rather than ongoing operations, the results underscore the structural challenges facing traditional television broadcasters. Weak national advertising demand, declining linear audiences and distribution disputes continue to pressure revenue across the industry.
At the same time, Scripps is attempting to reshape its business through a broad transformation programme. Management expects approximately $100 million of annualised cost savings to be in place by year end and continues to target $125 million to $150 million of enterprise EBITDA growth by 2028 through expense reductions and revenue initiatives. The company is also expanding its sports broadcasting portfolio and pursuing acquisitions and station swaps intended to strengthen its local television footprint.
Investors will also note the company’s leveraged balance sheet, with $2.5 billion of total debt at quarter end, alongside cumulative unpaid preferred dividends of $150 million, highlighting that balance sheet execution remains an important part of the investment story.
What to Watch Next
Investors will be monitoring whether Scripps delivers the projected cost savings from its transformation plan, restores revenue following retransmission agreement renewals, and capitalises on elevated political advertising through the remainder of 2026. Progress integrating new sports rights agreements and executing additional strategic transactions may also influence sentiment, alongside management’s ability to improve cash generation while managing its debt obligations.