Sinclair Reports Net Loss as Advertising and Political Spend Decline

Debt refinancing and asset sales offer some relief, but revenue headwinds persist across core segments.

November 10, 2025

Sinclair Posts Net Loss Amid Revenue Drop and Rising Costs

Sinclair is feeling the pressure. For the first nine months of 2025, the company reported a net loss of $215 million—driven by a drop in revenue and a sharp rise in interest costs. Total revenue landed at $2.33 billion, down from $2.54 billion during the same stretch last year. A major factor: political ad dollars all but vanished during this non-election cycle.

Local media, Sinclair’s core business, saw revenue slide to $2.04 billion. Political advertising brought in just $18 million, a steep fall from $202 million the year before. Core advertising also softened, while distribution fees held steady. On the other hand, Sinclair’s tennis segment delivered modest growth, and the company’s other revenue sources—primarily digital and strategic investments—pushed higher. Even with those offsets, the declines in advertising were too large to ignore.

Operating income dropped to $93 million, down from $285 million. Operating costs were mostly unchanged, but interest expense surged from $230 million to $311 million. That increase ties back to Sinclair’s debt restructuring in early 2025. The company issued $1.43 billion in new secured notes and used the proceeds to retire existing loans. The refinancing addressed near-term obligations but increased long-term borrowing costs.

Cash flow remains tight. The company generated $91 million from operations, spent $55 million on capex, and used another $169 million to service debt and cover financing needs. Its cash position dropped to $526 million.

Asset Activity and Legal Exposure

Sinclair also moved some pieces around. In July, it sold four stations for $36 million. In September, it acquired the assets of WLNE in Providence for $32 million. Earlier in the year, it completed the full acquisition of Digital Remedy, a digital ad platform, signaling a continued push into data and streaming.

Legal and regulatory issues remain on the radar. Sinclair settled a $495 million dispute with Diamond Sports Group and is still tied up in antitrust litigation tied to advertising practices. It also paid $500,000 to the FCC to resolve compliance issues tied to captioning and children’s programming.

Looking Ahead

Sinclair is preparing for stronger political ad revenue in 2026. It’s also betting on growth from digital platforms and newer ad models. But the path forward includes ongoing challenges—shifts in viewer behavior, legal costs, and the reality of a balance sheet carrying significant debt.