Sinclair Reports $156 Million Quarterly Loss
The company overhauled its credit facilities and offloaded several stations as part of a broader financial strategy.
May 12, 2025
Sinclair, Inc. closed the first quarter of 2025 with a net loss of $156 million, driven by debt refinancing activity, investment impairments, and a loss on the planned sale of four TV stations. Despite steady revenue across core segments, higher interest expenses and non-operating losses weighed heavily on the bottom line.
Total revenue landed at $776 million for the quarter, slightly down from $798 million last year. Core advertising held its ground, and distribution fees rose modestly. The shift came mostly from a steep drop in political ad spend, which fell from $24 million to $6 million year-over-year.
Segment Highlights
The local media business continues to anchor Sinclair’s performance, bringing in $694 million in Q1. That includes its 185 broadcast stations across 86 markets. Meanwhile, the tennis segment contributed $68 million —up slightly from a year ago—and includes properties like the Tennis Channel and its associated streaming platforms.
Operating Losses and Debt Strategy
But revenue stability wasn’t enough to offset rising costs and restructuring charges. Sinclair reported $200 million in pre-tax losses for the quarter. Interest expense jumped to $144 million, nearly doubling from the same period in 2024. The company also posted a $73 million fair value loss on investments, included in $66 million in net non-operating expense.
These results come alongside a major shift in how the company is managing its balance sheet. During the quarter, Sinclair Television Group initiated a broad recapitalization. This included:
- A $1.43 billion issuance of first-out, first-lien secured notes due 2033
- Conversion of existing term loans into new instruments under a restructured credit agreement
Altogether, the strategy extended debt maturities and adjusted interest terms, while incurring $99 million in related issuance costs.
Asset Sales and Loss Recognition
Alongside the financing changes, Sinclair agreed to sell stations in Milwaukee, Springfield (IL), Ottumwa, and Quincy for $30 million. The company recognized an expected loss of $17 million tied to this deal. The impact is reflected in the $8 million recorded under asset disposition losses in the quarter’s financials.
Cash Position and Liquidity
Cash and equivalents stood at $631 million at the end of March, down from $697 million at year-end. Operating cash flow came in at $5 million for the quarter—positive but limited, as capital outlays, debt service, and investment losses pulled on overall liquidity. Deferred revenue rose to $186 million, signaling some future runway for booked—but not yet recognized—income.
Legal Updates
On the legal front, the company continues to manage several long-running matters. Most notably, Sinclair finalized its settlement with Diamond Sports Group in March 2024, resolving a $1.5 billion dispute over shared services and media rights. The final $495 million settlement was split between Sinclair’s core operations and its Ventures subsidiary. The final payment was made during Q2 2025.
Additional regulatory issues remain in play. This includes:
- Petitions filed with the FCC regarding license renewals and station transfers
- A class action case alleging price coordination among broadcast peers
While these proceedings are ongoing, Sinclair has recorded the related legal accruals and maintains it will defend its position accordingly.
Outlook
Looking ahead, the company is focused on tightening operations and strengthening its capital structure. It continues to lean into NextGen TV, digital distribution, and direct-to-consumer channels, while using asset sales to rebalance its portfolio. The company is also monitoring the performance of its equity and real estate investments, which have added volatility to recent results.
Sinclair's restructuring efforts mark a strategic reset for the company—and Q1 shows what that transition looks like in practice. While top-line revenue remains steady, the company is navigating a landscape shaped by debt costs, regulatory scrutiny, and evolving media economics.
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