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NEW YORK TIMES CO (NYT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered broad-based strength: revenue up 9.7% to $685.9M, operating profit up 34.2% to $106.6M, and adjusted diluted EPS of $0.58, all supported by subscriber growth and higher ARPU .
  • Both EPS and revenue beat Wall Street consensus; adjusted EPS of $0.58 vs. $0.51 consensus and revenue of $685.9M vs. $669.7M consensus. Premarket shares rose about 5.4% on the print .
  • Digital-only subscription revenue grew 15.1% YoY on net adds of ~230K and ARPU +3.2% YoY to $9.64; digital advertising accelerated +18.7% YoY on new ad supply in high-demand areas .
  • Q3 2025 guidance raised for digital advertising (to low-double-digits), total advertising (to low-to-mid-single-digits), and affiliate/licensing/other (to high-single-digits); subscription revenue and adjusted OpEx ranges maintained .
  • Segment momentum: The Athletic turned an adjusted operating profit of $5.8M (from a loss last year) on +33% revenue growth; NYTG AOP rose 19.5% YoY .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and profitability: revenue +9.7% YoY to $685.9M; operating margin expanded ~280 bps to 15.5%; adjusted operating margin to 19.5% .
  • Subscriber and ARPU momentum: ~230K net digital-only adds; total digital-only subscribers reached ~11.30M; ARPU rose to $9.64 (+3.2% YoY) .
  • Digital advertising acceleration: +18.7% YoY on new supply; affiliate/licensing/other +5.8% YoY with higher licensing and Wirecutter referral revenues .
    • CEO tone: “We had a great second quarter across the board… we’re generating significant free cash flow… keep investing in… best-in-class product portfolio” — Meredith Kopit Levien .

What Went Wrong

  • Operating costs up 6.2% YoY to $579.3M; adjusted OpEx +6.1% YoY, driven by journalism, subscriber servicing, marketing, and G&A (incl. FX hedge losses and an impairment) .
  • Ongoing special items: $3.5M Generative AI litigation costs (pre-tax), continuing to impact reported results .
  • Print softness: print subscription revenue -2.8% YoY and print advertising -0.1% YoY, underscoring structural headwinds in print .

Financial Results

Consolidated Performance vs. Prior Periods and Consensus

MetricQ2 2024Q1 2025Q2 2025
Total Revenues ($M)$625.1 $635.9 $685.9
Diluted EPS (GAAP)$0.40 $0.30 $0.50
Adjusted Diluted EPS$0.45 $0.41 $0.58
Operating Profit ($M)$79.4 $58.6 $106.6
Operating Margin (%)12.7% 9.2% 15.5%
Adjusted Operating Profit ($M)$104.7 $92.7 $133.8
Adjusted Operating Margin (%)16.7% 14.6% 19.5%
EPS Consensus (Primary)——$0.51*
Revenue Consensus ($M)——$669.7*
Note: Consensus figures marked with * are Values retrieved from S&P Global.

Revenue Composition

MetricQ2 2024Q1 2025Q2 2025
Subscription Revenues ($M)$439.3 $464.3 $481.4
Digital-only Subscription ($M)$304.5 $335.0 $350.4
Print Subscription ($M)$134.8 $129.2 $131.1
Advertising Revenues ($M)$119.2 $108.1 $134.0
Digital Advertising ($M)$79.6 $70.9 $94.4
Print Advertising ($M)$39.6 $37.2 $39.6
Affiliate/Licensing/Other ($M)$66.6 $63.6 $70.5

Segment Breakdown

Segment MetricQ2 2024Q1 2025Q2 2025
NYTG Revenues ($M)$585.2 $588.9 $632.4
NYTG AOP ($M)$107.1 $89.8 $128.0
NYTG AOP Margin (%)18.3% 15.3% 20.2%
The Athletic Revenues ($M)$40.5 $47.6 $54.0
The Athletic AOP ($M)($2.4) $2.9 $5.8

KPIs

KPIQ2 2024Q1 2025Q2 2025
Total Subscribers (M)10.84 11.66 11.88
Digital-only Subscribers (M)10.21 11.06 11.30
Bundle & Multiproduct (M)4.83 5.76 6.02
News-only (M)2.29 1.79 1.69
Other Single-product (M)3.10 3.50 3.59
Total Digital-only ARPU ($)9.34 9.54 9.64

Guidance Changes

MetricPeriodPrevious Guidance (from Q1 2025 release)Current Guidance (Q2 2025 release)Change
Digital-only Subscription RevenuesQ3 2025 vs. Q3 2024Increase 13–16% (for Q2 vs. Q2 2024) Increase 13–16% Maintained vs. prior cadence
Total Subscription RevenuesQ3 2025 vs. Q3 2024Increase 8–10% (for Q2 vs. Q2 2024) Increase 8–10% Maintained
Digital Advertising RevenuesQ3 2025 vs. Q3 2024Increase high-single-digits (Q2 guide) Increase low-double-digits Raised
Total Advertising RevenuesQ3 2025 vs. Q3 2024Flat to increase low-single-digits (Q2 guide) Increase low-to-mid-single-digits Raised
Affiliate/Licensing/Other RevenuesQ3 2025 vs. Q3 2024Increase mid-single-digits (Q2 guide) Increase high-single-digits Raised
Adjusted Operating CostsQ3 2025 vs. Q3 2024Increase 5–6% Increase 5–6% Maintained
2025 D&A (pre-tax)FY 2025~$80M ~$80M Maintained
2025 Interest Income & Other (pre-tax)FY 2025~$40M ~$40M Maintained
2025 Capex (pre-tax)FY 2025~$40M ~$40M Maintained
DividendQ2 2025$0.18 declared for July 24 —In place

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Digital advertising driversQ4: +9.5% YoY; new ad supply (direct/programmatic) . Q1: +12.4% YoY, strength in demand; print down .+18.7% YoY; management cites new supply in areas of strong demand; standout result vs peers .Accelerating
Subscriber bundling & ARPUQ4: bundle/multiproduct expansion; ARPU $9.65 (+4.4%) . Q1: bundle/multiproduct 5.76M; ARPU $9.54 (+3.6%) .Bundle/multiproduct 6.02M; ARPU $9.64 (+3.2%) .Continued growth
Affiliate/licensing (Amazon agreement)Not disclosed in Q4/Q1 exhibits; affiliate/licensing growth driven by Wirecutter/licensing .Amazon agreement operational end of May; contributes to Q3 guide uplift in affiliate/licensing/other; expect growth driver with some lumpiness .Positive catalyst
Video expansionLimited prior disclosure in exhibits.CEO discusses rapidly scaling video across daily news, full-length shows (video versions of podcasts), and lifestyle product experiences .Strategic build-out
Legal/regulatory (Generative AI)Q4: $3.2M GAIA costs; favorable multiemployer pension adjustment . Q1: $4.4M GAIA costs; $4.5M pension adjustment .Q2: $3.5M GAIA costs; management treats as special item .Ongoing headwind (contained)

Management Commentary

  • CEO perspective: “We had a great second quarter across the board… we’re generating significant free cash flow… strong balance sheet… keep investing in unparalleled journalism and best-in-class product portfolio… confident that continued execution… will deliver even more value… and result in a larger and more profitable business.” — Meredith Kopit Levien .
  • Video strategy: Scaling across three categories—more daily news videos, full-length shows (including video versions of podcasts), and richer video in lifestyle products—to deepen engagement and make “watching The Times” more natural .
  • Affiliate/licensing catalyst: “That Amazon agreement was operational as of the end of May… we are showing an acceleration in the affiliate licensing other revenue line in Q3 to high single digits… Amazon is playing a role there” .

Q&A Highlights

  • Advertising outperformance: Analysts probed drivers of acceleration vs. peers; management cited new ad supply and a strengthening ad business aligned with consumer momentum .
  • Amazon licensing: Clarified operational timing (end of May) and contribution to Q3 affiliate/licensing/other guidance uplift; cautioned on line-item lumpiness .
  • Product roadmap: Emphasis on video and multiproduct experiences to support engagement, advertising supply, and subscription monetization .
  • The Athletic profitability: Continued momentum with AOP positive and improving, driven by display ad growth and subscriber scale through bundle .

Estimates Context

  • Q2 2025 results exceeded consensus: adjusted diluted EPS $0.58 vs. Primary EPS consensus $0.51*; revenue $685.9M vs. $669.7M* .
  • Estimate counts: EPS (7 estimates); revenue (5 estimates).
  • Implication: Expect upward revisions in advertising and affiliate/licensing lines for Q3 given raised guidance, and sustained subscription momentum into H2 2025 .
    Note: Values marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Beat-and-raise quarter: Strong top-line, margin expansion, and raised ad/affiliate guidance likely support near-term positive estimate revisions and sentiment .
  • Structural drivers intact: Bundling and multiproduct strategy propels subscriber/ARPU growth, diversifies revenue across subscriptions, ads, and affiliate/licensing .
  • Ad momentum: New ad supply and video build-out underpin digital ad acceleration; watch Q3 low-double-digit guide and mix shift toward direct/programmatic .
  • The Athletic turning the corner: Revenue growth (+33% YoY) with positive AOP signals improving economics under bundle; monitor sustainability through seasonality .
  • Cost discipline vs. growth investments: OpEx increases are targeted (journalism, marketing, product); adjusted margins still expanding—key for medium-term thesis .
  • Capital returns: Ongoing buybacks and $0.18 dividend; ample liquidity ($951.5M cash & marketable securities) with no debt, providing optionality .
  • Watch legal overhang: Generative AI litigation costs recur as special items; currently manageable but monitor case developments and potential licensing/settlement dynamics .