Media, broadcasting, and digital services company E.W. Scripps (NASDAQ: SSP) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 9.2% year on year to $490.4 million. Its GAAP loss of $12.68 per share was significantly below analysts’ consensus estimates.

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Company Overview

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, E.W. Scripps struggled to consistently increase demand as its $2.09 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. E.W. Scripps’s recent performance shows its demand remained suppressed as its revenue has declined by 5% annually over the last two years.

This quarter, E.W. Scripps missed Wall Street’s estimates and reported a rather uninspiring 9.2% year-on-year revenue decline, generating $490.4 million of revenue.

Looking ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

E.W. Scripps’s operating margin has been trending down over the last 12 months and averaged negative 14% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they’re spending loads of money to stay relevant, an unsustainable practice.

This quarter, E.W. Scripps generated a negative 236% operating margin. The company’s consistent lack of profits raises a flag.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for E.W. Scripps, its EPS declined by 42.9% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

In Q2, E.W. Scripps reported EPS of negative $12.68, down from negative $0.59 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast E.W. Scripps’s full-year EPS will flip from negative $13.94 to positive $0.11.

Key Takeaways from E.W. Scripps’s Q2 Results

We struggled to find many positives in these results. Its EPS missed and its revenue fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $2.94 immediately following the results.

E.W. Scripps didn’t show its best hand this quarter, but does that create an opportunity to buy the stock right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).