Sinclair, Inc. (SBGI) Earnings

Management highlights

• Overall Performance & Strategic Priorities - Delivered a strong Q2 2026, with growth led by early 2026 political cycle demand and continued distribution revenue growth, paired with disciplined expense management across the business - Deleveraging the balance sheet remains the company's top strategic priority; approximately $320 million in debt was repaid or retired during Q2, with an additional $25 million of debt retired post-quarter, improving the maturity profile and reducing interest expense - The company ended Q2 with ~$1.4 billion in total liquidity, providing flexibility to evaluate strategic opportunities while continuing deleveraging • Regulatory Updates - Management expects an imminent FCC vote to remove the 39% national broadcast ownership cap, a change the industry has pursued for decades. This change will level the playing field for broadcasters competing against unregulated big tech and streamers, enable increased investment in local news, and facilitate industry M&A activity. Sinclair is prepared to participate in disciplined, value-creating consolidation. - Other regulatory proceedings including the ATSC 3.0 transition, Network Affiliation Review, and modernized local ownership rules are also moving in a constructive direction • Political Advertising - The 2026 midterm cycle is off to a strong early start; Sinclair operates in all top 10 states projected for highest political spending, including 6 competitive Senate, 7 competitive gubernatorial, and 33 competitive House races. Early demand is broad-based, with advertisers reserving inventory earlier than past cycles, enabled by recent campaign finance rule changes that allow earlier, larger party committee investment - Q2 2026 political revenue came in 9% above 2022 Q2 levels, the prior record midterm cycle • Live Sports & Cross-Platform Capabilities - The 2026 FIFA World Cup on Fox delivered record U.S. audiences (66.4 million viewers for the final, the largest non-Super Bowl sports audience in 30 years), and Sinclair leveraged the event to deliver integrated cross-platform advertising campaigns across linear broadcast, digital, podcasts, and live in-market activations, combining broadcast mass reach with digital targeting and measurable engagement - Tennis Channel sustained audience growth across linear, direct-to-consumer Tennis Channel 2, and Pickleball TV; upcoming Q3 content includes college football and the NFL, building on World Cup momentum - Advertiser demand is growing for integrated campaigns that combine linear broadcast reach with digital targeting and measurement, a capability Sinclair has built out to capture increasing client demand

Guidance

• Full-year 2026 political advertising revenue guidance was increased to at least $375 million, up from the prior guidance of at least $333 million, reflecting stronger than expected first-half demand and the current outlook for competitive races across Sinclair's footprint. This guidance places 2026 political revenue above the 2022 record. • Full-year core advertising guidance was reset to a total company range of $1.22 billion to $1.28 billion, a $40 million reduction at the midpoint of prior guidance. The revision reflects expected core advertising inventory crowd-out from elevated political spending in the second half, and assumes no improvement in current soft demand conditions through year-end. • Full-year total company adjusted EBITDA guidance was increased to a range of $730 million to $760 million, a $25 million increase at the midpoint relative to prior guidance, even after accounting for the St. Louis ABC affiliation transition at the end of August. The new midpoint is above the high end of the prior guidance range, driven by higher political revenue, better than expected expense management, and disciplined cost control. Local media adjusted EBITDA guidance is now $710 million to $740 million. • Total company revenue guidance for the full year is maintained at prior levels. Capital expenditure guidance also remains unchanged at $75 million to $80 million. • Net interest expense guidance was lowered to a range of $290 million to $295 million, reflecting completed deleveraging activities. Net cash tax guidance is now ~$50 million, driven by higher expected pre-tax income in the record political year.

Segment performance

For the full company, total Q2 2026 revenue was $840 million, up 7% year-over-year, and adjusted EBITDA was $149 million, up 45% year-over-year. Political advertising revenue was $59 million, up 9% year-over-year from 2022, the prior record midterm cycle. Distribution revenue increased 2% year-over-year, while core advertising revenue declined 3% year-over-year. 1. Local Media Segment: Total revenue of $731 million, up 8% year-over-year, contributing 87% of total company revenue. Adjusted EBITDA was $149 million, up 51% year-over-year, driven by strong political revenue and disciplined cost control. Local media core advertising revenue is guided to a full-year range of $1.04 billion to $1.09 billion, down from prior guidance. 2. Tennis Segment: Total revenue of $70 million, up from $68 million year-over-year, contributing 8.3% of total company revenue. Advertising revenue increased 8% year-over-year, and distribution revenue increased 2% year-over-year. Adjusted EBITDA was $8 million, down from $13 million year-over-year, due to higher programming, production, and direct-to-consumer platform investment costs. 3. Ventures Segment: Held $489 million in cash at the end of the quarter, and generated $19 million in cash distributions from its portfolio during the quarter.

Risks & headwinds

• Forward-looking statements are inherently uncertain, and actual results may differ from guidance due to a range of risks and regulatory factors, as disclosed in prior SEC filings - Political spending is heavily back-loaded in the weeks before Election Day, so final full-year results are difficult to predict accurately, even with strong early demand - Core advertising demand is soft in several cost-inflation impacted categories, and guidance assumes no demand improvement through the end of the year - The expected removal of the national ownership cap is likely to face legal challenges from third parties, which could delay or disrupt industry M&A activity - Monetization of low-band spectrum assets requires FCC approval of ATSC 3.0 transition and ATSC 1.0 sunset rules, which are still pending, creating uncertainty around the timing and value of potential monetization

Analyst Q&A

• Q: With the FCC expected to repeal the national ownership cap tomorrow, how does this change the M&A conversation, and what level of conservatism is baked into the new $375 million political guidance? /

  A: Management states the cap repeal removes regulatory uncertainty, making potential M&A counterparties more willing to transact. Political spending is heavily back-loaded, so it is still too early to predict final full-year results with certainty, but strong early demand justified a meaningful guidance increase, with more clarity expected within four weeks as Election Day approaches.

• Q: How will the Supreme Court's lowest unit pricing ruling impact political ad revenue this cycle, and what is Sinclair's approach to M&A post-cap repeal, including small tuck-in deals vs large consolidation? /

  A: The ruling only impacts the final 60 days before the election, and current guidance already accounts for its expected impact; management can adjust rates dynamically if party spending increases, and has capacity to handle higher volume. Post-cap repeal, large-scale industry M&A will become much easier and less risky, and Sinclair is redoubling efforts on that front. It is also actively pursuing accretive smaller market-by-market optimization deals like station swaps and consolidations, which remain a priority regardless of the cap change.

• Q: What is driving the 13% increase in political guidance over 2022, and what is the read-through for 2028? Why was adjusted EBITDA guidance increased despite the core advertising guidance cut? /

  A: Political ad spending is primarily driven by total funds raised by candidates and parties, which is at record levels for this 2026 midterm cycle, and Sinclair's station footprint has not changed materially since 2022. Growing digital and cross-platform capabilities will allow Sinclair to capture even more political spending in 2028, making the 2026 upside a positive indicator for the next cycle. The EBITDA increase comes from three factors: higher political revenue (which has very high margins), a partial offset from the core advertising cut, and better than expected year-to-date expense management that is expected to continue for the rest of the year.

• Q: What is your outlook for monetizing Sinclair's low-band spectrum, given new market entrants, and can you compare to the 2017 auction outcome? /

  A: The 2017 auction had poor results due to limited competition, resulting in an average price of ~$1 per MHz pop, which vastly undervalued scarce low-band spectrum. Today, the competitive set has changed, with AT&T, Verizon, and new players seeking low-band spectrum for satellite and LEO constellations. Management sees a floor valuation of $2.50 per MHz pop, implying a $4.1 billion total valuation for Sinclair's portfolio. Monetization options include FCC auctions, negotiated sales, or lease arrangements; unlocking this value requires FCC approval of ATSC 3.0 transition and 1.0 sunset rules to free up spectrum.