Sinclair, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
SBGI$13.68-3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001971213-26-000025
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001971213-26-000038
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 151 current paragraphs.
37 unchanged; 39 reworded; 75 added; 20 removed; 10 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (75)
Current report
FORWARD-LOOKING STATEMENTS
Current report
This report includes or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act, and the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties, and assumptions about us, including, among other things, the following risks. All risk factors are deemed to be related to both Sinclair, Inc. (“the Company” or “Sinclair”) and its subsidiaries.
Current report
Industry risks
Current report
•Financial and economic conditions, including inflation, may have an adverse impact on our industry, customers, business, and results of operations or financial condition;
Current report
•the performance of networks and syndicators that provide us with programming content, as well as the performance of internally originated programming;
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•Distributor subscriber churn due to the impact of technological changes, the proliferation of over-the-top (“OTT”) direct-to-consumer platforms, the loss of key entertainment and sports programming previously exclusively available to subscribers, and economic conditions on consumers’ desire to pay for subscription services;
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•the business conditions of the Distributors we do business with and their ability to pay to broadcast our content on their distribution platforms;
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•the loss of appeal of our local news, network content, syndicated program content, and sports programming, which may be unpredictable;
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•the availability and cost of programming from networks and syndicators, as well as the cost of internally originated programming;
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•the availability and cost of rights to air professional tennis tournaments;
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•our relationships with networks and their strategies to distribute their programming via means other than their local television affiliates, such as OTT or direct-to-consumer content;
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•labor disputes and legislation and other union activity associated with film, acting, writing, music, and other guilds;
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•the broadcasting community’s ability to develop and adopt a viable mobile digital broadcast television (“mobile DTV”) strategy and platform, such as the adoption of a next generation broadcast standard (“NextGen TV”), the consumer’s appetite for mobile television, and the industry’s acceptance of data distribution services;
Current report
•the impact of programming payments charged by networks pursuant to their affiliation agreements with broadcasters requiring compensation for network programming;
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•the effects of declining live/appointment viewership as reported through rating systems and local television efforts to adopt and receive credit for same day viewing plus viewing on-demand thereafter;
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•changes in television rating measurement methodologies that could negatively impact audience results;
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•the ability of advertisers to coordinate and determine local advertising rates as a consortium;
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•the lack of our ability to negotiate directly with vMVPDs for the distribution of much of our content;
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•the operation of low power devices in the broadcast spectrum, which could interfere with our broadcast; and
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•the impact of Distributors and OTTs offering “skinny” programming bundles that may not include television broadcast stations or other programming that we distribute.
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Regulatory risks
Current report
•The FCC proceeding regarding the roll-out of NextGen TV and the sunset of ATSC 1.0 could impact business-use cases for the NextGen TV technology and the timeframe for the discontinuance of ATSC 1.0;
Current report
•the potential for additional governmental regulation of broadcasting or changes in those regulations and court actions interpreting those regulations, including ownership regulations limiting over-the-air television’s ability to compete effectively (including regulations relating to JSA, SSA, LMA, the national ownership cap, and the UHF discount), arbitrary enforcement by the FCC including indecency regulations, retransmission consent regulations, and political or other advertising restrictions, such as payola rules;
Current report
•the impact of FCC and Congressional efforts which may restrict a television station’s retransmission consent negotiations;
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•the impact of FCC rules requiring broadcast stations to publish, among other information, political advertising rates online;
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•the potential impact of deregulation allowing the networks to purchase additional stations in our markets;
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•the potential impact from changes in lowest unit rate applicability associated with political advertising spots;
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•our ability to obtain regulatory approval for transactions related to FCC licenses;
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•the potential impact from changes in industry ownership and multicast rules;
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•our response to corporate social responsibility considerations, and compliance with laws and regulations related thereto; and
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•the impact of foreign government rules related to digital and online assets.
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Risks specific to us
Current report
•Our ability to attract and maintain local, national, and network advertising and successfully participate in new sales channels such as programmatic and addressable advertising through business partnership ventures and the development of technology;
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•our ability to service our debt obligations and operate our business under restrictions contained in our financing agreements;
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•our use of derivative financial instruments to reduce interest rate risk may result in added volatility in the amount of interest expense recorded within our financial results and the amount of cash interest paid;
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•our ability to successfully implement and monetize our own content management system designed to provide our viewers significantly improved content via the internet and other digital platforms;
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•our ability to successfully negotiate retransmission consent and distribution agreements for our existing and any acquired businesses with favorable terms;
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•the ability of stations which we consolidate, but do not negotiate on their behalf, to successfully renegotiate retransmission consent and affiliation fees (cable network fees) agreements and comply with laws and regulations that apply to them;
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•our ability to renew our FCC licenses;
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•our ability to identify investment opportunities;
Showing the first 40 of 75 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
•In January 2026, Sinclair’s AMP Media launched Cousins, a weekly podcast series hosted by NBA icons Vince Carter and Tracy McGrady.
Previous report
•In March 2026, Sinclair announced a partnership with Disabled American Veterans (“DAV”) to launch Sinclair Cares: DAV Community Impact Day, a nationwide volunteer campaign dedicated to supporting America’s veterans and their families.
Previous report
•In February 2026, Sinclair acquired the non-license assets of KMYT and KOKI in Tulsa, OK.
Previous report
•In February 2026, Sinclair disposed of the non-license assets of KLEW in Spokane, WA and KEPR, KIMA, KUNW, KORX, and KVVK in Yakima, WA.
Previous report
•In March 2026, Sinclair acquired WHAM in Rochester, NY, WGTU/WGTQ in Traverse City, MI, WEYI in Flint, MI, KCVU/KBVU in Eureka/Chico-Redding, CA, WEMT in Tri-Cities, TN, WYDO in Greenville, NC and WPFO Portland, Maine from various partners. Sinclair previously provided services to the stations under JSAs and SSAs.
Previous report
Other media revenue. Other media revenue decreased $2 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to a decrease related to certain services provided under trade and barter agreements.
Previous report
Seasonality / Cyclicality
Previous report
Operating Data
Previous report
Local Media Segment
Previous report
Refer to Local Media Segment above under Sinclair, Inc.’s Results of Operations for a discussion of SBG’s local media segment, which is the same as Sinclair’s local media segment for the three months ended March 31, 2026 and 2025.
Previous report
As of March 31, 2026, the unrestricted subsidiaries (as defined in the New Credit Agreement, “Unrestricted Subsidiaries”) represented 0% of SBG’s total assets. For the three months ended March 31, 2026, the Unrestricted Subsidiaries represented 0% of SBG’s total revenue. For the three months ended March 31, 2026, the Unrestricted Subsidiaries decreased SBG’s total operating income by 7%.
Previous report
As of March 31, 2026 and for the three months ended March 31, 2026, there were no restricted subsidiaries that were non-guarantors (as defined in the New Credit Agreement).
Previous report
Corporate and Unallocated Expenses
Previous report
Income tax benefit. The effective tax rate for the three months ended March 31, 2026, was a benefit of 50.9% as compared to a benefit of 20.1% during the same period in 2025. The increase in the effective tax rate for the three months ended March 31, 2026, when compared to the same period in 2025, is primarily due to a 2026 release of a valuation allowance on certain state net operating losses resulting from a change in the filing methodology that impacted the realizability of the associated deferred tax assets.
Previous report
Net cash flows used in Sinclair’s financing activities increased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to the financing transactions that occurred in the first quarter of 2025.
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Operating Activities
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Investing Activities
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Net cash flows used in SBG’s investing activities increased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to the acquisition of the non-license assets of KMYT and KOKI in Tulsa, OK in the first quarter of 2026.
Previous report
Financing Activities
Previous report
Net cash flows used in SBG’s financing activities increased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to the financing transactions that occurred in the first quarter of 2025.
Reworded paragraphs (39)
Previous wording
The following Management’s Discussion and Analysis provides qualitative and quantitative information about Sinclair’s and SBG’s financial performance and condition and should be read in conjunction with Sinclair’s and SBG’s consolidated financial statements and the accompanying notes to those statements. This discussion consists of the following sections:
Current wording
The following Management’s Discussion and Analysis provides qualitative and quantitative information about our financial performance and condition and should be read in conjunction with our consolidated financial statements and the accompanying notes to those statements. This discussion consists of the following sections:
Previous wording
Results of Operations — an analysis of Sinclair’s and SBG’s revenue and expenses for the three months ended March 31, 2026 and 2025.
Current wording
Results of Operations — an analysis of our revenue and expenses for the three and six months ended June 30, 2026 and 2025.
Previous wording
Liquidity and Capital Resources — a discussion of Sinclair’s and SBG’s primary sources of liquidity and an analysis of Sinclair’s and SBG’s cash flows from or used in operating activities, investing activities, and financing activities during the three months ended March 31, 2026.
Current wording
Liquidity and Capital Resources — a discussion of our primary sources of liquidity and an analysis of our cash flows from or used in operating activities, investing activities, and financing activities during the three and six months ended June 30, 2026.
Previous wording
•To date in 2026, our newsrooms have won a total of 24 journalism awards.
Current wording
•To date in 2026, our newsrooms have won a total of 166 journalism awards.
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•In February 2026, Sinclair acquired KMTR, KMCB, and KTCW in Eugene, OR from Roberts Media. Sinclair previously provided services to the stations under JSAs and SSAs.
Current wording
•In May 2026, Sinclair acquired WSWB in Wilkes Barre, PA from MPS Media. Sinclair previously provided services to the station under JSAs and SSAs.
Previous wording
•In February 2026, Sinclair declared a quarterly dividend of $0.25 per share. In April 2026, Sinclair declared a quarterly dividend of $0.25 per share.
Current wording
•In April 2026, we declared a quarterly dividend of $0.25 per share. In August 2026, we declared a quarterly dividend of $0.25 per share.
Previous wording
Any references to the second, third, or fourth quarters are to the three months ended June 30, September 30, or December 31, respectively, for the year being discussed. As of March 31, 2026, we had two reportable segments for accounting purposes, local media and tennis.
Current wording
Any references to the first, third, or fourth quarters are to the three months ended March 31, September 30, or December 31, respectively, for the year being discussed. As of June 30, 2026, we had two reportable segments for accounting purposes, local media and tennis.
Previous wording
(a)Includes $3 million for both the three months ended March 31, 2026 and 2025 of intercompany revenue related to certain services provided to the tennis segment, which is eliminated in consolidation.
Current wording
(a)Includes $3 million and $5 million for the three and six months ended June 30, 2026, respectively, and $3 million and $6 million for the three and six months ended June 30, 2025, respectively, of intercompany revenue related to certain services provided to the tennis segment, which is eliminated in consolidation.
Previous wording
(b)Includes $8 million and $4 million for the three months ended March 31, 2026 and 2025, respectively, of intercompany expense related to certain services provided by other, which is eliminated in consolidation.
Current wording
(b)Includes $9 million and $17 million for the three and six months ended June 30, 2026, respectively, and $5 million and $9 million for the three and six months ended June 30, 2025, respectively, of intercompany expense related to certain services provided by other, which is eliminated in consolidation.
Previous wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for our broadcast signals, increased $7 million or 2% for the three months ended March 31, 2026, when compared to the same period in 2025. Contractual rate increases favorably impacted period-over-period distribution revenue by single-digit percentages for the three months ended March 31, 2026, partially offset by subscriber decreases by low single-digit percentages.
Current wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for our broadcast signals, increased $9 million or 2% and $16 million or 2% for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025. Contractual rate increases favorably impacted period-over-period distribution revenue by mid-single digit percentages for each of the three and six months ended June 30, 2026, partially offset by subscriber decreases by low-single digit percentages.
Previous wording
Core advertising revenue. Core advertising revenue decreased $10 million for the three months ended March 31, 2026, when compared to the same period in 2025, with no particular product/services category dominating the variance.
Current wording
Core advertising revenue. Core advertising revenue decreased $12 million and $22 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, with no particular product/services category dominating the variance.
Previous wording
Political advertising revenue. Political advertising revenue increased $12 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to 2026 being a midterm election year and therefore having a higher number of political races and correspondingly more political advertising spending compared to 2025, which was an off-year election cycle.
Current wording
Political advertising revenue. Political advertising revenue increased $53 million and $65 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, primarily due to 2026 being a midterm election year and therefore having a higher number of political races and correspondingly more political advertising spending compared to 2025, which was an off-year election cycle.
Previous wording
Media programming and production expenses. Media programming and production expenses decreased $8 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to a decrease related to costs associated with our network affiliation agreements and other programming contracts and a decrease in consulting expenses.
Current wording
Media programming and production expenses. Media programming and production expenses remained relatively flat for the three months ended June 30, 2026, when compared to the same period in 2025. Media programming and production expenses decreased $7 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to a $3 million decrease related to costs associated with stations we historically operated under JSA or SSA arrangements but now own and operate, a $3 million decrease in legal and consulting expenses, and a $1 million decrease in employee compensation cost.
Previous wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $1 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to a $2 million increase in employee compensation cost and in costs relating to our digital business, respectively, partially offset by a $2 million decrease in information technology costs.
Current wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $14 million for the three months ended June 30, 2026, when compared to the same period in 2025, primarily due to the FCC consent decree entered into in June 2025 which resulted in a reversal of $10 million previously expensed, as further discussed in Litigation, Claims, and Regulatory Matters under Note 4. Commitments and Contingencies within the Consolidated Financial Statements, a $4 million increase in employee compensation cost, and a $3 million increase in both costs relating to our digital business and national sales commissions, respectively, partially offset by a $5 million decrease in information technology costs.
Previous wording
(Gain) loss on asset dispositions and other, net. During the three months ended March 31, 2025, we recognized a loss associated with the sale of certain local media assets of approximately $17 million (see Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair’s Consolidated Financial Statements), which was offset by $9 million of proceeds related to our cyber and directors and officers insurance policies.
Current wording
Loss (gain) on asset dispositions and other, net. During the three and six months ended June 30, 2025, we recognized $30 million and $39 million, respectively, of proceeds related to our cyber and directors and officers insurance policies. During the six months ended June 30, 2025, we recognized a loss associated with the sale of certain local media assets of approximately $17 million. See Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements.
Previous wording
Depreciation and amortization expenses. Depreciation of property and equipment and amortization of definite-lived intangibles and other assets increased $4 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in intangible assets related to our acquisitions during the first quarter of 2026 and the third quarter of 2025, as well as amortization expense associated with our FCC licenses which began on January 1, 2026. See Acquisitions and Station Disposals and Changes in Accounting Estimates under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair’s Consolidated Financial Statements.
Current wording
Depreciation and amortization expenses. Depreciation of property and equipment and amortization of definite-lived intangibles and other assets increased $4 million and $8 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, primarily due to an increase in intangible assets related to our acquisitions during the first quarter of 2026 and the third quarter of 2025, as well as amortization expense associated with our FCC licenses which began on January 1, 2026. See Acquisitions and Station Disposals and Changes in Accounting Estimates under Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements.
Previous wording
Interest expense including amortization of debt discount and deferred financing costs. Interest expense decreased $59 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to $68 million of one-time financing costs related to the financing transactions that occurred in the first quarter of 2025. See Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within Sinclair’s Consolidated Financial Statements.
Current wording
Interest expense including amortization of debt discount and deferred financing costs. Interest expense decreased $2 million for the three months ended June 30, 2026, when compared to the same period in 2025, primarily due to decreased interest expense related to our variable rate debt resulting from lower interest rates and the repurchase of a portion of the Term Loan B-7 and Term Loan B-6 during the second quarter of 2026. Interest expense decreased $61 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to $68 million of one-time financing costs related to the financing transactions that occurred in the first quarter of 2025 as well as decreased interest expense related to our variable rate debt resulting from lower interest rates and the repurchase of a portion of the Term Loan B-7 and Term Loan B-6 during the second quarter of 2026. See Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements.
Previous wording
Gain on extinguishment of debt. For the three months ended March 31, 2025, we recognized a gain on extinguishment of the 4.125% Senior Secured Notes due 2030 and 5.125% Senior Notes due 2027 of $5 million and $3 million, respectively, and a loss on extinguishment of the Term Loan B-2 of $6 million. See Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within Sinclair’s Consolidated Financial Statements.
Current wording
Gain on extinguishment of debt. For both the three and six months ended June 30, 2026, STG repurchased $93 million aggregate principal amount of the Term Loan B-6 and $72 million aggregate principal amount of the Term Loan B-7 for consideration of $85 million and $65 million, respectively, and recorded a gain on extinguishment of the Term Loan B-6 and Term Loan B-7 of $8 million and $5 million, respectively. See Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements. For the three and six months ended June 30, 2025, we recorded a gain on extinguishment of the 5.125% Senior Notes due 2027 of $4 million and $7 million, respectively. For the six months ended June 30, 2025 we recorded a gain on extinguishment of the 4.125% Senior Secured Notes due 2030 of $5 million and a loss on extinguishment of the Term Loan B-2 of $6 million.
Previous wording
(a)Includes $3 million for both the three months ended March 31, 2026 and 2025 of intercompany expense related to certain services provided by the local media segment, which is eliminated in consolidation.
Current wording
(a)Includes $3 million and $5 million for the three and six months ended June 30, 2026, respectively, and $3 million and $6 million for the three and six months ended June 30, 2025, respectively, of intercompany expense related to certain services provided by the local media segment, which is eliminated in consolidation.
Previous wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for the right to distribute Tennis Channel, remained flat for the three months ended March 31, 2026, when compared to the same period in 2025.
Current wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for the right to distribute Tennis Channel, increased $1 million for both the three and six months ended June 30, 2026 or 2% for the three months ended June 30, 2026 and 1% for the six months ended June 30, 2026, when compared to the same periods in 2025. The increases are primarily due to high single-digit percentage increases in contractual rates for the three and six months ended June 30, 2026, partially offset by a decrease in subscribers by a high single-digit percentage for the periods, respectively.
Previous wording
Core advertising revenue. Core advertising revenue is primarily generated from sales of commercial time within Tennis Channel programming. Core advertising revenue increased $2 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to stronger linear sales.
Current wording
Core advertising revenue. Core advertising revenue is primarily generated from sales of commercial time within Tennis Channel programming. Core advertising revenue increased $1 million and $3 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, primarily due to stronger linear sales.
Previous wording
Media programming and production expenses. Media programming and production expenses increased $3 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in tournament production costs.
Current wording
Media programming and production expenses. Media programming and production expenses increased $4 million and $7 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, primarily due to an increase in tournament production costs.
Previous wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $1 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to increased employee compensation cost.
Current wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $4 million and $5 million for the three and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, primarily due to increased employee compensation cost.
Previous wording
(a)Media revenue for the three months ended March 31, 2026 and 2025 includes $8 million and $4 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.
Current wording
(a)Media revenue for the three and six months ended June 30, 2026 includes $9 million and $17 million, respectively, and for the three and six months ended June 30, 2025 includes $5 million and $9 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.
Previous wording
Revenue. Media revenue increased $25 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in advertising revenue related to the acquisition of Digital Remedy which was not reflected for the full period within the prior year, as discussed in Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair’s Consolidated Financial Statements. Non-media revenue remained flat for the three months ended March 31, 2026, when compared to the same period in 2025.
Current wording
Revenue. Media revenue increased $7 million for the three months ended June 30, 2026, when compared to the same period in 2025, due to increased digital revenue. Media revenue increased $32 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to an increase in advertising revenue related to the acquisition of Digital Remedy which was not reflected for the full period within the prior year, as discussed in Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements.
Previous wording
Expenses. Media expenses increased $22 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in selling, general and administrative expenses related to the acquisition of Digital Remedy which was not reflected for the full period within the prior year, as discussed in Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair’s Consolidated Financial Statements. Non-media expenses increased $4 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to increased employee compensation cost.
Current wording
Expenses. Media expenses increased $3 million for the three months ended June 30, 2026, when compared to the same period in 2025, primarily due to increased digital sales expenses as a result of increased revenue over the period. Media expenses increased $25 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to an increase in selling, general and administrative expenses related to the acquisition of Digital Remedy which was not reflected for the full period within the prior year, as discussed in Acquisitions and Station Disposals under Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements. Non-media expenses increased $4 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to increased employee compensation cost.
Previous wording
Loss on asset dispositions and other, net. During the three months ended March 31, 2026, we recorded a non-cash impairment of $8 million related to one of our real estate investments.
Current wording
Loss on asset dispositions and other, net. During the six months ended June 30, 2026, we recorded a non-cash impairment of $8 million related to one of our real estate investments.
Previous wording
Other expense, net. During the three months ended March 31, 2026 and 2025, we recognized fair value adjustment losses of $85 million and $73 million, respectively, associated with investments measured at fair value and NAV.
Current wording
Other income (expense), net. During the three months ended June 30, 2026 and 2025, we recognized a fair value adjustment gain of $44 million and loss of $30 million, respectively, associated with investments measured at fair value and NAV. During the six months ended June 30, 2026 and 2025, we recognized fair value adjustment losses of $42 million and $103 million, respectively, associated with investments measured at fair value and NAV.
Previous wording
Corporate general and administrative expenses. Corporate general and administrative expenses decreased $3 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to a decrease in employee compensation cost and a decrease in legal, consulting, and regulatory costs, primarily related to the litigation discussed under Note 4. Commitments and Contingencies within Sinclair’s Consolidated Financial Statements.
Current wording
Corporate general and administrative expenses. Corporate general and administrative expenses decreased $3 million for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to a decrease in legal, consulting, and regulatory costs primarily related to the litigation discussed under Note 4. Commitments and Contingencies within the Consolidated Financial Statements.
Previous wording
Income tax benefit. The effective tax rate for the three months ended March 31, 2026, was a benefit of 114.9% as compared to a benefit of 23.0% during the same period in 2025. The increase in the effective tax rate for the three months ended March 31, 2026, when compared to the same period in 2025, is primarily due to substantially magnified impact of many 2026 items as a result of small estimated annual pre-tax income.
Current wording
The effective tax rate for the six months ended June 30, 2026 was a benefit of 44.5% as compared to a benefit of 21.8% during the same period in 2025. The increase in the effective tax rate for the six months ended June 30, 2026, when compared to the same period in 2025, is primarily due to the greater impact in 2026 from certain items not deductible for tax purposes.
Previous wording
As of March 31, 2026, Sinclair had net working capital of approximately $956 million, including $844 million in cash and cash equivalent balances, and $613 million of available borrowing capacity, including $575 million under the New Credit Agreement and $38 million under the Amended Credit Agreement. Cash on hand, cash generated by Sinclair’s operations, and borrowing capacity under the New Credit Agreement and the Amended Credit Agreement are used as Sinclair’s primary sources of liquidity.
Current wording
As of June 30, 2026, we had net working capital of approximately $674 million, including $604 million in cash and cash equivalent balances, of which $115 million relates to our local media business, and $763 million of available borrowing capacity, including $575 million under the New Credit Agreement, $38 million under the Amended Credit Agreement, and $150 million under the A/R Facility. As of June 30, 2026, we expected cash on hand, cash generated by our operations, and borrowing capacity under the New Credit Agreement and the A/R Facility to be used as our primary sources of liquidity. In July 2026, the remaining $38 million of available borrowing capacity under the Amended Credit Agreement was canceled.
Previous wording
During the three months ended March 31, 2026, there were no material changes to Sinclair’s or SBG’s contractual cash obligations as of March 31, 2026.
Current wording
During the six months ended June 30, 2026, there were no material changes to our contractual cash obligations as of June 30, 2026.
Previous wording
Sinclair and SBG anticipate that existing cash and cash equivalents, cash flow from the local media segment’s operations, and borrowing capacity under the New Credit Agreement, the Amended Credit Agreement, and the A/R Facility will be sufficient to satisfy the local media segment’s debt service obligations, capital expenditure requirements, and working capital needs for the next twelve months. Sinclair anticipates that existing cash and cash equivalents and cash flow from SBG, the tennis segment, and other’s operations will be sufficient to satisfy SBG’s, the tennis segment’s, and other’s debt service obligations, capital expenditure requirements, and working capital needs for the next twelve months. However, certain factors, including but not limited to the war in Ukraine, conflict in the Middle East, other geopolitical matters, natural disasters, pandemics and their resulting effect on the economy, Sinclair’s and SBG’s advertisers, and Sinclair’s and SBG’s Distributors and their subscribers, could affect Sinclair’s and SBG’s liquidity and first-out first lien leverage ratio which could affect Sinclair’s and SBG’s ability to access the full borrowing capacity under the New Credit Agreement. In addition to the sources described above, Sinclair and SBG may rely upon various sources for long-term liquidity needs, such as but not limited to, the issuance of long-term debt, the issuance of Sinclair equity, for Sinclair only, the issuance of Ventures equity or debt, or other instruments convertible into or exchangeable for Sinclair equity, or the sale of assets. However, there can be no assurance that additional financing or capital or buyers of assets will be available, or that the terms of any transactions will be acceptable or advantageous to Sinclair or SBG.
Current wording
We anticipate that existing cash and cash equivalents, cash flow from the local media segment’s operations, and borrowing capacity under the New Credit Agreement and the A/R Facility will be sufficient to satisfy the local media segment’s debt service obligations, capital expenditure requirements, and working capital needs for the next twelve months. We anticipate that existing cash and cash equivalents and cash flow from the tennis segment and other’s operations will be sufficient to satisfy the tennis segment’s and other’s capital expenditure requirements and working capital needs for the next twelve months. However, certain factors, including but not limited to the war in Ukraine, conflict in the Middle East, other geopolitical matters, natural disasters, pandemics and their resulting effect on the economy, our advertisers, and our Distributors and their subscribers, could affect our liquidity and first-out first lien leverage ratio which could affect our ability to access the full borrowing capacity under the New Credit Agreement. In addition to the sources described above, we may rely upon various sources for long-term liquidity needs, such as but not limited to, the issuance of long-term debt, the issuance of equity, the issuance of Ventures equity or debt, or other instruments convertible into or exchangeable for equity, or the sale of assets. However, there can be no assurance that additional financing or capital or buyers of assets will be available, or that the terms of any transactions will be acceptable or advantageous to us.
Previous wording
Sinclair, Inc. Sources and Uses of Cash
Current wording
Sources and Uses of Cash
Previous wording
The following table sets forth Sinclair’s cash flows for the periods presented (in millions):
Current wording
The following table sets forth our cash flows for the periods presented (in millions):
Previous wording
Net cash flows from Sinclair’s operating activities increased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in cash collections from Distributors, an increase in cash collections related to political revenue, and a decrease in production costs.
Current wording
Net cash flows from our operating activities decreased for the three months ended June 30, 2026, when compared to the same period in 2025, primarily due to a decrease in cash collections from Distributors and an increase in production and overhead costs, partially offset by an increase in cash collections related to political revenue. Net cash flows from our operating activities decreased for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to an increase in production and overhead costs, partially offset by an increase in cash collections from Distributors and an increase in cash collections related to political revenue.
Previous wording
Net cash flows used in Sinclair’s investing activities decreased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to the acquisition of Digital Remedy in the first quarter of 2025.
Current wording
Net cash flows from our investing activities increased for the three months ended June 30, 2026, when compared to the same period in 2025, primarily due to an increase in distributions and proceeds from investments and a decrease in the purchase of investments in the second quarter of 2026. Net cash flows used in our investing activities decreased for the six months ended June 30, 2026, when compared to the same period in 2025, primarily due to an increase in distributions and proceeds from investments in 2026, a decrease in the purchase of investments in 2026, and the acquisition of Digital Remedy in the first quarter of 2025.
Previous wording
Sinclair declared a quarterly dividend of $0.25 per share in February 2026 and $0.25 per share in April 2026. Future dividends on Sinclair’s shares of common stock, if any, will be at the discretion of Sinclair’s Board of Directors and will depend on several factors including Sinclair’s results of operations, cash requirements and surplus, financial condition, covenant restrictions, and other factors that Sinclair’s Board of Directors may deem relevant.
Current wording
We declared a quarterly dividend of $0.25 per share in April 2026 and $0.25 per share in August 2026. Future dividends on our shares of common stock, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions, and other factors that our Board of Directors may deem relevant.
Previous wording
There were no changes to the critical accounting policies and estimates from those disclosed in Critical Accounting Policies and Estimates under Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
There were no changes to the critical accounting policies and estimates from those disclosed in Critical Accounting Policies and Estimates under Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within our Annual Report on Form 10-K for the year ended December 31, 2025 with the exception of the change related to the reclassification of our FCC license assets from indefinite-lived to definite-lived as further discussed within the Changes in Accounting Estimates section of Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
Any references to the second, third, or fourth quarters are to the three months ended June 30, September 30, or December 31, respectively, for the year being discussed. As of March 31, 2026, SBG had one reportable segment for accounting purposes, local media.
Previous report — wording carried elsewhere
The operating results of SBG’s local media segment are usually subject to cyclical fluctuations from political advertising. In even numbered years, political spending is usually significantly higher than in odd numbered years due to advertising expenditures preceding local and national elections. Additionally, every four years, political spending is usually elevated further due to advertising expenditures preceding the presidential election. Also, the second and fourth quarter operating results are usually higher than the first and third quarters’ operating results because advertising expenditures are increased in anticipation of certain seasonal and holiday spending by consumers.
Previous report — wording carried elsewhere
The following table sets forth SBG’s consolidated operating data for the periods presented (in millions):
Previous report — wording carried elsewhere
The following table presents SBG’s corporate and unallocated expenses for the periods presented (in millions):
Previous report — wording carried elsewhere
The table above and explanations that follow cover SBG’s total consolidated corporate and unallocated expenses.
Previous report — wording carried elsewhere
Corporate general and administrative expenses. Corporate general and administrative expenses decreased $3 million for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to a decrease in legal, consulting, and regulatory costs, primarily related to the litigation discussed under Note 4. Commitments and Contingencies within SBG’s Consolidated Financial Statementsand a decrease in employee compensation cost.
Previous report — wording carried elsewhere
As of March 31, 2026, SBG had net working capital of approximately $481 million, including $392 million in cash and cash equivalent balances, and $613 million of available borrowing capacity, including $575 million under the New Credit Agreement and $38 million under the Amended Credit Agreement. Cash on hand, cash generated by SBG’s operations, and borrowing capacity under the New Credit Agreement and the Amended Credit Agreement are used as SBG’s primary sources of liquidity.
Previous report — wording carried elsewhere
Sinclair Broadcast Group, LLC Sources and Uses of Cash
Previous report — wording carried elsewhere
The following table sets forth SBG’s cash flows for the periods presented (in millions):
Previous report — wording carried elsewhere
Net cash flows from SBG’s operating activities increased for the three months ended March 31, 2026, when compared to the same period in 2025, primarily due to an increase in cash collections from Distributors, an increase in cash collections related to political revenue, and a decrease in production costs.