Nexstar Media Group, Inc. (NXST) Stock Analysis

Nexstar Media Group’s primary competitive advantage is its unmatched scale in U.S. local television broadcasting. As of mid-2025, Nexstar owns or operates over 200 full-power TV stations in 116 markets, reaching nearly 39% of U.S. TV households—the legal maximum. This scale enables superior negotiating leverage with both content providers and distributors, resulting in industry-leading distribution revenue (54% of 2024 net revenue, $2.93 billion). By comparison, rivals such as Sinclair and TEGNA operate fewer stations and reach smaller audiences, limiting their bargaining power.

Nexstar’s diversified revenue mix is another strength. Less than one-third of revenue is tied to core TV advertising, reducing exposure to cyclical ad downturns. Recurring, contract-based distribution fees have proven resilient even during economic slowdowns, a key differentiator from peers more reliant on advertising.

Ownership of The CW network and NewsNation further distinguishes Nexstar, providing national reach and content control. This vertical integration supports both local and national monetization, a model not matched by most competitors.

Operationally, Nexstar’s cost discipline and local market focus drive above-peer margins (2024 EBITDA margin: 40.9%). The company’s culture emphasizes local journalism, with nearly 6,000 journalists and a reputation for politically neutral, reliable news—an asset as trust in national media erodes.

Potential threats include ongoing pay-TV subscriber declines and regulatory risks, but Nexstar’s scale, diversified model, and local brand strength provide a durable edge over smaller, less integrated rivals.