Sinclair Broadcast Group, one of the largest television station operators in the United States, reported a steep decline in revenue and swung to a net loss in the third quarter of 2025.
For the quarter, the company posted revenue of $773 million, down 16% from the same period last year, and a net loss of $1 million, or 2 cents per share. That compares to a profit of $94 million in Q3 of 2024.
During an earnings call, Sinclair president and CEO Chris Ripley said the company’s ABC affiliates have been hit by the ongoing dispute between Disney and YouTube TV, which has led to a blackout of ABC, ESPN, and other Disney-owned networks on the platform since last Friday. Sinclair owns 38 ABC stations nationwide.
Ripley criticized both Google and Disney for the blackout, calling them “media giants,” and said local broadcasters are “caught in the middle” of these standoffs — which he described as “an antitrust issue.” He said Sinclair is lobbying regulators to allow local TV station owners to have direct control over pay-TV distribution deals.
“As local broadcasters, we have no say in whether our content — and the content we pay to air — will be distributed to local viewers,” Ripley said. “We believe this practice needs to be stopped.”
He added that these ongoing disputes “continue to hurt local viewers and local journalism.”
The company’s earnings came after its ABC-affiliated stations briefly preempted Jimmy Kimmel Live! in September following comments by Kimmel about Charlie Kirk’s killer. Sinclair did not mention the blackout in its earnings release, and analysts on the call did not raise the topic.
Advertising revenue for the quarter dropped 26% year over year to $321 million, due mainly to a sharp decrease in political ad spending — $6 million compared to a record $138 million in the third quarter of 2024 during the presidential election cycle. Sinclair’s media segment, which includes its broadcast TV stations and original content, brought in $765 million, down 16% from the previous year.
“Sinclair delivered a strong third quarter, achieving the high end of guidance for advertising and distribution revenue, while media expenses and adjusted EBITDA beat expectations,” Ripley said in prepared remarks. “We expect to see continued improvement in core advertising trends in the fourth quarter and a sequential increase in distribution revenue.”
Based in Baltimore, Sinclair owns, operates, or provides services to 185 TV stations across 85 markets, affiliated with all the major broadcast networks. The company also owns Tennis Channel and multicast networks such as Comet, Charge!, TBD, and The Nest.
Sinclair, known for its conservative leanings, announced on Sept. 17 that it was pulling Jimmy Kimmel Live! from its ABC stations over remarks Kimmel made two days earlier. The late-night host had said: “We hit some new lows over the weekend with the MAGA gang desperately trying to characterize the kid who murdered Charlie Kirk as anything other than one of them, and doing everything they can to score political points from it.”
MAGA supporters accused Kimmel of suggesting that Kirk’s killer was “one of them.” The controversy drew attention from FCC chairman Brendan Carr, who hinted during a podcast appearance that ABC affiliates could face scrutiny from the agency if they didn’t act against Kimmel. Under pressure, both Sinclair and Nexstar Media preempted the program, prompting ABC to suspend Jimmy Kimmel Live! indefinitely.
In August, Sinclair said it had begun a “comprehensive strategic review” of its broadcast division, signaling potential sales or acquisitions. On the earnings call, Ripley said the company expects the FCC to raise or eliminate the 39% national ownership cap for broadcasters in early 2026. He also noted that a rule preventing ownership of more than one of the top four stations in a market had been vacated earlier this year.
As of Nov. 1, Sinclair had completed 11 partner station acquisitions, with additional deals awaiting FCC approval. Ripley said those acquisitions will generate at least $30 million in incremental annualized EBITDA once finalized. Looking ahead to 2026, he predicted “record midterm political revenue” and said regulatory shifts would lead to “much-needed industry consolidation and significant synergies for investors.”
Sinclair insisted its decision to preempt Jimmy Kimmel Live! “was independent of any government interaction or influence.” In a Sept. 17 statement, the company said, “We appreciate FCC Chairman Carr’s remarks today and this incident highlights the critical need for the FCC to take immediate regulatory action to address control held over local broadcasters by the big national networks.”
The company previously said it would not resume airing Kimmel’s show until he apologized to Charlie Kirk’s family and made a “meaningful personal donation” to them and to Turning Point USA. Sinclair later reversed course and resumed airing the program on Sept. 26, citing “ongoing and constructive discussions with ABC” that included the possibility of appointing an independent ombudsman for the network.
Kimmel addressed the controversy upon his return to air, saying, “It was never my intention to make light of the murder of a young man. I don’t think there’s anything funny about it.” He added, “I posted a message on Instagram on the day he was killed, sending love to his family and asking for compassion, and I meant it. And I still do.”
