The New York Times Company (NYT) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reflects strong digital advertising growth and a robust free cash flow generation, which are positive indicators. The Q&A reveals effective strategies for subscription growth and shareholder returns, with continued investments in video journalism and AI. Despite some uncertainties in cost trajectory and AI litigation, the overall sentiment leans positive with optimistic guidance and strategic initiatives likely to drive stock price upward.
Key Financial Performance
Net new digital subscribers 1.4 million added in 2025, bringing total subscribers to 12.8 million. This growth is attributed to strong execution against a long-term strategy.
Total digital revenues Exceeded $2 billion for the first time in 2025. This growth was driven by strong engagement and significant growth in digital advertising.
Adjusted Operating Profit (AOP) Grew more than 20% in 2025, reaching $550 million. Margin expanded to 19.5%, an increase of approximately 190 basis points. Growth was driven by disciplined cost management and strategic investments.
Digital subscription revenues Increased by approximately 14% in 2025, reaching $382 million in Q4. Growth was driven by higher digital subscribers and increased ARPU.
Digital advertising revenues Increased by 20% in 2025 and grew 25% in Q4 to $147 million. Growth was due to strong marketer demand and new advertising supply.
Total advertising revenues Increased by 16% in Q4 to $192 million. Growth was driven by strong digital advertising performance.
Affiliate, licensing, and other revenues Increased by 5.5% in Q4 to $100 million, primarily due to higher licensing revenues.
Free cash flow Generated approximately $551 million in 2025. Growth was driven by robust AOP, a capital-efficient model, lower cash taxes due to tax law changes, and proceeds from the sale of excess land.
Shareholder returns Returned approximately $275 million to shareholders in 2025, including $165 million in share repurchases and $110 million in dividends.
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Operating Highlights
Digital Subscription Growth: Added 1.4 million net new digital subscribers in 2025, reaching a total of 12.8 million subscribers. Fourth quarter alone saw 450,000 new digital subscribers.
Revenue Milestone: Generated over $2 billion in total digital revenues for the first time.
Content Expansion: Expanded offerings in video journalism, games, and lifestyle products like Cooking and Wirecutter.
Global Reach: Engages tens of millions weekly across news, sports, games, recipes, and shopping recommendations globally.
Video Journalism: Investing in video as a major new audience opportunity, aiming to establish The Times as a preferred brand for watching news.
Profitability: Adjusted operating profit grew by 21% in 2025 to $550 million, with a margin expansion to 19.5%.
Cost Management: Disciplined cost management contributed to operating leverage and strong free cash flow of $551 million.
AI and Innovation: Using AI to make reporting more accessible and expanding into video formats to adapt to changing audience habits.
Subscription Strategy: Focused on essential subscription strategy to drive growth and engagement.
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Risk or Challenges
Polarized low-trust environment: The company operates in a polarized and low-trust environment shaped by powerful platforms, creating headwinds for publishers.
Dependence on external platforms: Actions by a few powerful platforms pose challenges to the company's ability to navigate the changing information ecosystem.
Decline in print revenues: Ongoing declines in print revenues partially offset the growth in digital revenues, posing a challenge to overall revenue growth.
Technological landscape changes: The rapidly changing technological landscape, including the rise of AI and shifts in video consumption habits, requires careful navigation and investment.
Increased operating costs: Higher expenses associated with incentive compensation programs and strategic investments in video and digital products have led to increased operating costs.
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Guidance & Outlook
Subscriber Growth: The company expects 2026 to be another year of subscriber growth, aiming to achieve its next milestone of 15 million subscribers and beyond.
Revenue Growth: The company projects healthy growth in revenues for 2026, driven by digital subscription revenue growth, digital advertising, and other digital revenue streams.
Adjusted Operating Profit (AOP) Growth: The company anticipates AOP growth and margin expansion in 2026, continuing the trend from 2025.
Digital Advertising Revenue: Digital advertising revenues are expected to increase in the high teens to low 20% range in Q1 2026, with total advertising revenues expected to grow in the low double digits.
Subscription Revenue: Digital-only subscription revenues are projected to grow 14% to 17% in Q1 2026, with total subscription revenues increasing 9% to 11%.
Affiliate, Licensing, and Other Revenues: These revenues are expected to increase in the high single digits in Q1 2026.
Cost Management: Adjusted operating costs are expected to increase 8% to 9% in Q1 2026, reflecting investments in high-quality journalism and digital product experiences, particularly in video.
Strategic Investments: The company plans to continue investing in video journalism and other digital product innovations to enhance audience engagement and revenue growth.
Long-Term Growth Targets: The company remains on track to achieve its midterm targets for subscribers, AOP growth, and capital returns.
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Shareholder Return Plan
Dividends Paid in 2025: Approximately $110 million
Increase in Quarterly Dividend: From $0.18 to $0.23
Share Repurchases in 2025: Approximately $165 million
Remaining Share Repurchase Authorization: $350 million as of year-end
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Key Q&A
Q:What contributed to the 20% digital ad growth last year?
A:Meredith Kopit Levien explained that the growth was due to increased ad supply, improved engagement opportunities, and making existing supply more valuable through data and performance improvements. Demand improved as they could do bigger deals with marketers and appeal to more marketers due to their scale. Their ad products performed well, leading to repeat purchases.
Q:What are the drivers behind the adjusted cost guide for Q1 being above recent trends?
A:William Bardeen stated that the cost guide reflects investments in video production, ramped up in the back half of '25, and flexibility in areas like sales and marketing. The overall approach remains focused on sustaining healthy revenue growth, AOP growth, and margin expansion.
Q:What are the latest thoughts on capital allocation and shareholder return targets?
A:William Bardeen mentioned no changes to the capital allocation strategy, prioritizing high-return organic investments into the subscription strategy. At least 50% of free cash flow will be returned to shareholders through dividends and share repurchases. The balance sheet remains strong, and any M&A would have a high bar.
Q:How is password sharing being addressed?
A:Meredith Kopit Levien stated that they are focusing on bringing more people into using The Times through initiatives like the family plan, which is performing well. The family plan helps penetrate the market, adds revenue, and improves engagement and retention. They are not ruling out other approaches in the future.
Q:What is the strategy for the video journalism initiative?
A:Meredith Kopit Levien explained that they aim to establish The Times as a preferred brand for watching news. They are scaling production with reporter videos, visual investigations, and video podcasts. The Watch tab in their app and off-platform video distribution are key components. The focus is on ramping up production and building a wide engaged audience.
Q:What is driving non-news single product growth?
A:Meredith Kopit Levien stated that all products contributed to growth, with different products playing roles in subscriber growth and audience engagement. The strategy is working as designed, and they are excited about the results.
Q:What caused the deceleration in digital-only subscriber ARPU growth?
A:William Bardeen explained that ARPU growth can fluctuate due to factors like subscriber mix, promotions, and timing of price increases. They expect strong digital subscription revenue growth in Q1 2026, driven by a price increase for the digital bundle from $25 to $30.
Q:What are the cost dynamics for Q4 and Q1 2026?
A:William Bardeen stated that Q4 expenses were higher due to incentive compensation tied to financial outperformance. Investments in video and disciplined cost management continue. The focus remains on sustaining revenue growth, AOP growth, and margin expansion.
Q:Could advertising growth be used to manage ARPU and subscription prices?
A:Meredith Kopit Levien stated that their multi-revenue stream model allows them to monetize audience engagement through advertising while building funnels for future subscription growth. Advertising plays a role in making products accessible and supporting overall growth.
Q:What is the outlook on AI and its impact on the business?
A:Meredith Kopit Levien stated that AI presents both headwinds and opportunities. They are using AI to enhance productivity and engagement. Over the long term, their differentiated products and trusted content make them resilient to AI-related challenges.
Q:Is the single product growth strategy expanding the funnel effectively?
A:Meredith Kopit Levien confirmed that the strategy is working, with single products playing a role in the subscription funnel and leading to more valuable bundle subscriptions over time.
Q:What is the status of contract negotiations with the news guild?
A:Meredith Kopit Levien stated that The Times has a history of productive relationships with unions and is confident in navigating the current contract period.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines or detailed impacts regarding AI-related litigation and its resolution. They also did not provide clear guidance on cost trajectory beyond Q1 2026, leaving uncertainty about whether high single-digit growth in costs will persist or decelerate later in the year.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI market
AOP world
Advertising expectation
America anniversary
Athletic world
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Times Full
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Times brand
Times journalism
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Times role
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Times term
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Today habit
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ability mission
action AOP
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country
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NYT Transcript
The New York Times Company (NYT) Q4 2025 Earnings Call Transcript
Positive2-4
The earnings call reflects strong digital advertising growth and a robust free cash flow generation, which are positive indicators. The Q&A reveals effective strategies for subscription growth and shareholder returns, with continued investments in video journalism and AI. Despite some uncertainties in cost trajectory and AI litigation, the overall sentiment leans positive with optimistic guidance and strategic initiatives likely to drive stock price upward.
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Positive11-5
The earnings call presents a positive outlook with strong financial performance indicators: 9.5% revenue growth, 26% AOP increase, and expanded margins. The Q&A highlights strategic investments in video and digital subscriptions, with promising long-term engagement and revenue potential. Despite higher OpEx, management's focus on sustainable growth and cost efficiency is reassuring. The lack of specific guidance on the Amazon AI partnership doesn't significantly detract from the overall positive sentiment. The company's capital allocation strategy and strong net adds in subscriptions further support a positive stock price movement prediction.
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NYT Slides
Frequently Asked Questions
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