Sinclair, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 4, 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 2026-06-30; filed 2026-08-05.
0001971213-26-000038
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001971213-26-000047
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 151 previous paragraphs and 152 current paragraphs.
106 unchanged; 38 reworded; 8 added; 5 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 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 (8)
Current report
•In September 2026, Sinclair and ABC entered into a comprehensive multi-year agreement that renews station affiliation agreements for 27 of SBG’s owned and/or operated ABC affiliates.
Current report
•In October 2026, Sinclair and CBS entered into a comprehensive multi-year agreement that renews station affiliation agreements for 21 of SBG’s owned CBS affiliates.
Current report
•In October 2026, Sinclair purchased the non-license assets of WWCP in Johnstown, PA.
Current report
•In October 2026, Sinclair acquired WGWG in Charleston, SC.
Current report
•In August 2026, we determined that David Bochenek, our Senior Vice President and Chief Accounting Officer will separate from employment with the Company effective as of November 9, 2026 (such date, the “Separation Date”). Mr. Bochenek will remain the Senior Vice President and Chief Accounting Officer and will assist the Company with transitional matters through the Separation Date.
Current report
Amortization of program costs. The amortization of program costs decreased $5 million for both the three and nine months ended September 30, 2026, when compared to the same periods in 2025, primarily related to reduced programming renewal costs.
Current report
Other
Current report
The effective tax rate for the nine months ended September 30, 2026 was a benefit of 63.0% as compared to a benefit of 22.1% during the same period in 2025. The increase in the effective tax rate for the nine months ended September 30, 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 and an accrual of interest income attributable to prior years’ pending income tax refund claims.
Removed paragraphs (5)
Previous report
•In June 2026, our AMP Sports division launched Style of Play, a new weekly women’s soccer podcast hosted by Julie Ertz and Kealia Watt.
Previous report
•In June 2026, we partnered with Feeding America to launch Sinclair Cares: Summer Hunger Relief, an awareness and fundraising campaign to help provide meals to children and their families across the U.S. during the summer.
Previous report
•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 report
•In June 2026, Sinclair acquired KFXA in Cedar Rapids, IA from Second Generation of Iowa. Sinclair previously provided services to the station under JSAs and SSAs.
Previous report
Income tax (provision) benefit. The effective tax rate for the three months ended June 30, 2026 was a provision of 322.3% as compared to a benefit of 18.9% during the same period in 2025. The effective tax rate variance is primarily due to a substantial update of our full-year forecasted pre-tax book income causing a significant impact on many 2026 items.
Reworded paragraphs (38)
Previous wording
Results of Operations — an analysis of our revenue and expenses for the three and six months ended June 30, 2026 and 2025.
Current wording
Results of Operations — an analysis of our revenue and expenses for the three and nine months ended September 30, 2026 and 2025.
Previous 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.
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 nine months ended September 30, 2026.
Previous wording
•To date in 2026, our newsrooms have won a total of 166 journalism awards.
Current wording
•To date in 2026, our newsrooms have won a total of 212 journalism awards.
Previous 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.
Current wording
Any references to the first, second, or fourth quarters are to the three months ended March 31, June 30, or December 31, respectively, for the year being discussed. As of September 30, 2026, we had two reportable segments for accounting purposes, local media and tennis.
Previous 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.
Current wording
(a)Includes $3 million for both the three months ended September 30, 2026 and 2025 and $8 million for both the nine months ended September 30, 2026 and 2025 of intercompany revenue related to certain services provided to the tennis segment, which is eliminated in consolidation.
Previous 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.
Current wording
(b)Includes $10 million and $27 million for the three and nine months ended September 30, 2026, respectively, and $5 million and $14 million for the three and nine months ended September 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 $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.
Current wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for our broadcast signals, increased $3 million or 1% for the three months ended September 30, 2026, when compared to the same period in 2025. Contractual rate increases favorably impacted period-over-period distribution revenue by high-single digit percentages for the three months ended September 30, 2026, partially offset by subscriber decreases by high-single digit percentages. Distribution revenue increased $19 million or 2% for the nine months ended September 30, 2026, when compared to the same period in 2025. Contractual rate increases favorably impacted period-over-period distribution revenue by mid-single digit percentages for the nine months ended September 30, 2026, partially offset by subscriber decreases by mid-single digit percentages.
Previous 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.
Current wording
Core advertising revenue. Core advertising revenue decreased $11 million and $33 million for the three and nine months ended September 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 $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.
Current wording
Political advertising revenue. Political advertising revenue increased $129 million and $194 million for the three and nine months ended September 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 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.
Current wording
Media programming and production expenses. Media programming and production expenses increased $3 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to an increase related to costs associated with our network affiliation agreements as a result of increased contractual rates, partially offset by a decrease related to costs associated with stations we historically operated under JSA or SSA arrangements but now own and operate. Media programming and production expenses decreased $5 million for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to a decrease related to costs associated with stations we historically operated under JSA or SSA arrangements but now own and operate and a decrease in employee compensation, partially offset by an increase related to costs associated with our network affiliation agreements as a result of increased contractual rates.
Previous 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.
Current wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $9 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to an increase in national sales commissions related to an increase in national political revenue. Media selling, general and administrative expenses increased $24 million for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to an $11 million increase in national sales commissions related to an increase in national political revenue, an increase related 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 $7 million increase in costs relating to our digital business, and a $4 million increase in employee compensation cost, partially offset by a $9 million decrease in information technology costs.
Previous 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.
Current wording
(Gain) loss on asset dispositions and other, net. During the nine months ended September 30, 2025, we recognized $35 million of proceeds related to our cyber and directors and officers insurance policies, offset by a loss related to the sale of certain stations of approximately $8 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 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.
Current wording
Depreciation and amortization expenses. Depreciation of property and equipment and amortization of definite-lived intangibles and other assets increased $3 million and $12 million for the three and nine months ended September 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 $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.
Current wording
Interest expense including amortization of debt discount and deferred financing costs. Interest expense decreased $6 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to the repurchase of a portion of the Term Loan B-7 during the third quarter of 2026. Interest expense decreased $67 million for the nine months ended September 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 and the repurchase of a portion of the Term Loan B-7 during the second and third quarter of 2026 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 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.
Current wording
Gain on extinguishment of debt. For the three months ended September 30, 2026, STG repurchased $25 million aggregate principal amount of the Term Loan B-7 and the remaining $3 million aggregate principal amount of the Term Loan B-3 for consideration of $21 million and $3 million, respectively, and recorded a gain on extinguishment of the Term Loan B-7 of $4 million. For the nine months ended September 30, 2026, STG repurchased $93 million aggregate principal amount of the Term Loan B-6, $97 million aggregate principal amount of the Term Loan B-7, and the remaining $3 million aggregate principal amount of the Term Loan B-3, for consideration of $85 million, $86 million, and $3 million, respectively. For the nine months ended September 30, 2026, we recorded a gain on extinguishment of $8 million for the Term Loan B-6 and $9 million for the Term Loan B-7. See Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements. For the nine months ended September 30, 2025, we recorded a gain on extinguishment of the 4.125% Senior Secured Notes due 2030 and 5.125% Senior Notes due 2027 of $5 million and $7 million, respectively, and a loss on extinguishment of the Term Loan B-2 of $6 million.
Previous 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.
Current wording
(a)Includes $3 million for both the three months ended September 30, 2026 and 2025 and $8 million for both the nine months ended September 30, 2026 and 2025 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, 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.
Current wording
Distribution revenue. Distribution revenue, which represents fees earned from Distributors for the right to distribute Tennis Channel, increased $1 million or 2% for the three months ended September 30, 2026, when compared to the same period in 2025. The increase is primarily due to low-single digit percentage increases in contractual rates, partially offset by a decrease in subscribers by a low-single digit percentage for the period. Distribution revenue increased $2 million or 1% for the nine months ended September 30, 2026, when compared to the same period in 2025. The increase is primarily due to mid-single digit percentage increases in contractual rates, partially offset by a decrease in subscribers by a mid-single digit percentage for the period.
Previous 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.
Current wording
Core advertising revenue. Core advertising revenue is primarily generated from sales of commercial time within Tennis Channel programming. Core advertising revenue increased $3 million and $6 million for the three and nine months ended September 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 $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.
Current wording
Media programming and production expenses. Media programming and production expenses increased $4 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to an increase in tournament production costs. Media programming and production expenses increased $11 million for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to an increase in tournament production costs and employee compensation cost.
Previous 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.
Current wording
Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $1 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to higher promotional expenses. Media selling, general and administrative expenses increased $6 million for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to increased employee compensation cost.
Previous 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.
Current wording
(a)Media revenue for the three and nine months ended September 30, 2026 includes $10 million and $27 million, respectively, and for the three and nine months ended September 30, 2025 includes $5 million and $14 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.
Previous wording
(b)Non-media revenues for both the three and six months ended June 30, 2026 include $1 million and for both the three and six months ended June 30, 2025 include $1 million of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.
Current wording
(b)Non-media revenues for the three and nine months ended September 30, 2026 includes $1 million and $2 million, respectively, and for the three and nine months ended September 30, 2025 includes $2 million and $3 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.
Previous wording
(c)Non-media expenses for both the three and six months ended June 30, 2026 include $1 million and for both the three and six months ended June 30, 2025 include $1 million of intercompany expense related to certain services and sales provided by the local media segment, which is eliminated in consolidation.
Current wording
(c)Non-media expenses for the nine months ended September 30, 2026 includes $1 million, and for the three and nine months ended September 30, 2025 includes $2 million and $3 million, respectively, of intercompany expense related to certain services and sales provided by the local media segment, which is eliminated in consolidation.
Previous 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.
Current wording
Revenue. Media revenue remained flat for the three months ended September 30, 2026, when compared to the same period in 2025. Media revenue increased $32 million for the nine months ended September 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. Non-media revenue decreased $2 million and $1 million for the three and nine months ended September 30, 2026, respectively, when compared to the same periods in 2025, primarily due to a decrease in broadcast equipment sales.
Previous 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.
Current wording
Expenses. Media expenses increased $24 million for the nine months ended September 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 $2 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to increased legal and consulting costs. Non-media expenses increased $5 million for the nine months ended September 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 six months ended June 30, 2026, we recorded a non-cash impairment of $8 million related to one of our real estate investments.
Current wording
(Gain) loss on asset dispositions and other, net. During the nine months ended September 30, 2026, we recorded a non-cash impairment of $8 million related to one of our real estate investments.
Previous 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.
Current wording
Other income (expense), net. During the three months ended September 30, 2026 and 2025, we recognized fair value adjustment gains of $4 million and $19 million, respectively, associated with investments measured at fair value and NAV. During the nine months ended September 30, 2026 and 2025, we recognized fair value adjustment losses of $38 million and $84 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 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.
Current wording
Corporate general and administrative expenses. Corporate general and administrative expenses decreased $2 million for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to a decrease in employee compensation cost. Corporate general and administrative expenses decreased $5 million for the nine months ended September 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
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. During the three months ended June 30, 2025, we recognized a loss of $37 million related to the Marquee guarantee, as discussed in Debt of Variable Interest Entities and Guarantees of Third-Party Obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements, offset by gains of $30 million related to proceeds from our cyber and directors and officers insurance policies. During the six months ended June 30, 2025 we recognized a loss of $17 million related to the sale of certain local media assets and a loss of $37 million related to the Marquee guarantee, as discussed in Debt of Variable Interest Entities and Guarantees of Third-Party Obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements, which was partially offset by gains of $39 million related to proceeds from our cyber and directors and officers insurance policies.
Current wording
(Gain) loss on asset dispositions and other, net. During the nine months ended September 30, 2026, we recorded a non-cash impairment of $8 million related to one of our real estate investments. During the nine months ended September 30, 2025 we recognized a loss of $8 million related to the sale of certain local media assets and a loss of $15 million related to the Marquee guarantee, as discussed in Debt of Variable Interest Entities and Guarantees of Third-Party Obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements, which were offset by gains of $45 million related to proceeds from our cyber and directors and officers insurance policies.
Previous 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.
Current wording
Income tax (provision) benefit. The effective tax rate for the three months ended September 30, 2026 was a provision of 34.1% as compared to a benefit of 188.6% during the same period in 2025. The decrease in the effective tax rate for the three months ended September 30, 2026, when compared to the same period in 2025, is primarily due to a small book loss in 2025 compared to book income in 2026.
Previous 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.
Current wording
As of September 30, 2026, we had net working capital of approximately $704 million, including $659 million in cash and cash equivalent balances, of which $170 million relates to our local media business, and $724 million of available borrowing capacity, including $574 million under the Credit Agreement and $150 million under the A/R Facility. As of September 30, 2026, we expected cash on hand, cash generated by our operations, and borrowing capacity under the Credit Agreement and the A/R Facility to be used as our primary sources of liquidity.
Previous wording
The First-Out Revolving Credit Facility includes a financial maintenance covenant, the first-out first lien leverage ratio (as defined in the New Credit Agreement), which requires such ratio not to exceed 3.5x, measured as of the end of each fiscal quarter, which is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the First-Out Revolving Credit Facility, measured as of the last day of each fiscal quarter, is utilized as of such date. Since there was no utilization under the First-Out Revolving Credit Facility as of June 30, 2026, STG was not subject to the financial maintenance covenant under the New Credit Agreement. As of June 30, 2026, the STG first-out first lien leverage ratio was below 3.5x. The New Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2026.
Current wording
The First-Out Revolving Credit Facility includes a financial maintenance covenant, the first-out first lien leverage ratio (as defined in the Credit Agreement), which requires such ratio not to exceed 3.5x, measured as of the end of each fiscal quarter, which is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the First-Out Revolving Credit Facility, measured as of the last day of each fiscal quarter, is utilized as of such date. Since there was no utilization under the First-Out Revolving Credit Facility as of September 30, 2026, STG was not subject to the financial maintenance covenant under the Credit Agreement. As of September 30, 2026, the STG first-out first lien leverage ratio was below 3.5x. The Credit Agreement contains other restrictions and covenants with which STG was in compliance as of September 30, 2026.
Previous wording
In July 2026, STG repurchased $25 million aggregate principal amount of the Term Loan B-7 and the remaining $3 million aggregate principal amount of the Term Loan B-3, both at discounts to face value.
Current wording
In July 2026, STG repurchased $25 million aggregate principal amount of the Term Loan B-7 and the remaining $3 million aggregate principal amount of the Term Loan B-3, both at discounts to face value, and canceled the remaining $38 million of available borrowing capacity under the Amended Credit Agreement.
Previous wording
During the six months ended June 30, 2026, there were no material changes to our contractual cash obligations as of June 30, 2026.
Current wording
During the nine months ended September 30, 2026, we entered into agreements which increased estimated contractual amounts owed for programming rights by $886 million which have terms that extend into 2030. There were no other material changes to our contractual cash obligations as of September 30, 2026.
Previous 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.
Current wording
We anticipate that existing cash and cash equivalents, cash flow from the local media segment’s operations, and borrowing capacity under the 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 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
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.
Current wording
Net cash flows from our operating activities increased for both the three and nine months ended September 30, 2026, when compared to the same periods in 2025, primarily due to an increase in cash collections related to political revenue and an increase in cash collections from Distributors, partially offset by an increase in production and overhead costs.
Previous 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.
Current wording
Net cash flows used in our investing activities remained relatively flat for the three months ended September 30, 2026, when compared to the same period in 2025. Net cash flows used in our investing activities decreased for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to an increase in distributions and proceeds from investments in 2026 and the acquisition of Digital Remedy in the first quarter of 2025.
Previous wording
Net cash flows used in our financing activities increased for both the three and six months ended June 30, 2026, when compared to the same periods in 2025, primarily due to the repurchase of a portion of the Term Loan B-6 and Term Loan B-7 and the pay down of borrowings under the A/R Facility during the second quarter of 2026. See Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements for further information.
Current wording
Net cash flows used in our financing activities increased for the three months ended September 30, 2026, when compared to the same period in 2025, primarily due to the repurchase of a portion of the Term Loan B-7 and the remaining Term Loan B-3 during the third quarter of 2026. Net cash flows used in our financing activities increased for the nine months ended September 30, 2026, when compared to the same period in 2025, primarily due to the repurchase of a portion of the Term Loan B-6 and Term Loan B-7 and the pay down of borrowings under the A/R Facility during the second quarter of 2026 and the repurchase of a portion of the Term Loan B-7 and the remaining Term Loan B-3 during the third quarter of 2026. See Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within the Consolidated Financial Statements for further information.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•In April 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, both at discounts of face value.
Previous report — wording carried elsewhere
Media selling, general and administrative expenses increased $15 million for the six 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 $6 million increase in employee compensation cost, a $4 million increase in costs relating to our digital business, and a $3 million increase in costs related to national sales commissions, partially offset by a $7 million decrease in information technology costs.