SSP Q3 Deep Dive: Sports and Streaming Drive Strategic Shift Amid Advertising Headwinds

Media, broadcasting, and digital services company E.W. Scripps (NASDAQ:SSP) met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 18.6% year on year to $525.9 million. Its GAAP loss of $0.55 per share was 72.1% below analysts’ consensus estimates.

Is now the time to buy SSP? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

E.W. Scripps' third quarter results prompted a significant positive reaction from the market, as management highlighted the success of its Scripps Sports strategy and expansion into connected TV (CTV) advertising. CEO Adam Symson credited the company’s focus on women’s sports partnerships and streaming distribution as major contributors to the quarter’s performance, stating, “We are seeing real measurable progress at Scripps.” Despite a challenging advertising environment and the absence of political ad revenue compared to last year, Scripps delivered solid core growth by capitalizing on new sports rights and controlling expenses.

Looking ahead, management expects continued revenue growth from sports broadcasting deals and CTV expansion, while maintaining a disciplined approach to expenses. Symson emphasized the company’s plan to build on its leadership position in women’s sports and to further develop its streaming offerings, noting, “We plan to continue to build on it with the same discipline that got us here.” The team is also preparing for significant political advertising tailwinds in 2026, as well as ongoing margin improvements through operational efficiencies and technology investments.

Key Insights from Management’s Remarks

Management identified the rapid growth in sports programming and early adoption of streaming platforms as the primary drivers of recent performance, while continued portfolio optimization and expense controls supported margins.

• Sports partnerships boost core ads: The company’s intensified focus on women’s sports, including partnerships with the WNBA and National Women’s Soccer League, led to strong advertising demand and increased core revenue, particularly through premium ad rates and higher upfront volumes.
• Streaming revenue accelerates: Scripps’ aggressive expansion into Connected TV, with its networks now available on major streaming platforms, generated significant growth; streaming now accounts for 20% of Scripps Networks viewing, with management projecting double-digit CTV revenue growth.
• M&A and portfolio optimization: Recent station swaps and sales in Fort Myers and Indianapolis, executed at premium industry multiples, generated $123 million in cash, which management intends to use for debt reduction and balance sheet improvement.
• Expense management and margin focus: Operational efficiency initiatives, including reductions in employee-related costs and restructuring, contributed to margin stabilization in the face of advertising softness and the absence of political revenue.
• AI and technology transformation: Early investment in automation and artificial intelligence is beginning to deliver value, helping newsroom and sales teams operate more efficiently and freeing up resources for core activities. Management expects to share more on these initiatives in the coming quarters.

Drivers of Future Performance

Scripps’ outlook is anchored by expectations for sustained growth in sports media, CTV, and operational efficiencies, while navigating advertising market uncertainties.

• Growing sports portfolio: Management plans to expand partnerships with national sports leagues and local teams, aiming to drive advertising revenue and differentiate Scripps’ networks as key destinations for live sports content.
• Connected TV and streaming scale: The company is prioritizing new streaming distribution agreements and the launch of additional FAST (Free Ad-Supported Streaming TV) channels, which are expected to fuel double-digit revenue growth and capitalize on shifting viewer habits.
• Expense discipline and transformation: Scripps will continue to focus on cost management, leveraging technology and AI to enhance efficiency. At the same time, the company acknowledges potential headwinds from macroeconomic uncertainty, regulatory changes, and advertising market volatility.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will monitor (1) execution of new sports rights deals and their impact on core ad revenue, (2) the scale-up of CTV and streaming partnerships as a driver of digital revenue, and (3) further progress in portfolio optimization and debt reduction. The pace of AI adoption and the company’s ability to navigate advertising market uncertainties will also be important to track.

E.W. Scripps currently trades at $2.62, up from $2.02 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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