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NEW YORK TIMES CO (NYT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 was strong across subscriptions, advertising, and profitability: total revenue rose 9.5% to $700.8M; operating profit up 36.6% to $104.8M; adjusted operating profit up 26.1% to $131.4M; adjusted EPS reached $0.59 .
  • The quarter delivered approximately 460,000 net digital-only subscriber adds (12.33M total subs; 11.76M digital-only) and total digital-only ARPU increased 3.6% YoY to $9.79; digital-only subscription revenue grew 14.0% to $367.4M .
  • Digital advertising revenue grew 20.3% YoY to $98.1M, above guidance, driven by strong marketer demand and new advertising supply; adjusted operating costs rose 6.2% YoY, slightly above the prior 5–6% guide due to investment and revenue-tied variable costs .
  • Q4 2025 guidance: double-digit growth in digital-only subscription revenue (+13–16%), high-single-to-low-double-digit total advertising revenue growth, and adjusted OpEx +6–7%; FY 2025 depreciation raised to ~$85M, capex lowered to ~$35M, interest income maintained at ~$40M .
  • Management emphasized expanding video, advancing AI-powered personalization and ad products, and disciplined investment; reiterated capital returns at least 50% of free cash flow over the midterm .

What Went Well and What Went Wrong

What Went Well

  • Subscriber growth and ARPU: +460k net digital-only adds; total digital-only ARPU +3.6% YoY to $9.79; digital-only subscription revenue +14.0% YoY to $367.4M . CEO: “Q3 was another great quarter… Our results demonstrate that our strategy is working as designed” .
  • Digital ads outperformed: +20.3% YoY to $98.1M, above guidance, on strong demand and new ad supply; total advertising +11.8% YoY to $132.3M . CEO: “This performance reflects how our strategy to create a larger, more durable digital ad business is working” .
  • Margin expansion and cash generation: operating margin 15.0% (+300bps YoY); adjusted operating margin 18.7% (+240bps); nine-month free cash flow $392.9M; cash and marketable securities $1.1B; no debt .

What Went Wrong

  • Adjusted operating costs slightly above prior guide: +6.2% YoY vs last quarter’s 5–6% range due to investment into journalism/video, marketing, and revenue-correlated variable expenses .
  • Continued print pressure: print subscription revenue fell 3.0% to $127.2M; print advertising -7.1% to $34.2M .
  • Special items and non-operating costs: $2.4M Generative AI litigation costs and a $3.5M impairment reduced “Interest income and other, net” vs prior year; other components of net periodic benefit costs increased .

Financial Results

Headline P&L vs prior year, prior quarter

MetricQ3 2024Q2 2025Q3 2025
Total Revenues ($M)$640.178 $685.873 $700.821
Operating Profit ($M)$76.727 $106.551 $104.788
Operating Margin (%)12.0% 15.5% 15.0%
Adjusted Operating Profit ($M)$104.181 $133.775 $131.384
Adjusted Operating Margin (%)16.3% 19.5% 18.7%
Diluted EPS ($)$0.39 $0.50 $0.50
Adjusted Diluted EPS ($)$0.45 $0.58 $0.59

Results vs S&P Global consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($M)$635.910 $685.873 $700.821
Revenue Consensus Mean ($M)$634.992*$669.658*$692.009*
Adjusted Diluted EPS Actual ($)$0.41 $0.58 $0.59
Primary EPS Consensus Mean ($)$0.342*$0.515*$0.532*
Primary EPS – # of Estimates7*7*7*
Revenue – # of Estimates5*5*5*

Values with asterisk retrieved from S&P Global; actuals from company filings. S&P Global consensus figures are provided for context and may reflect non-GAAP reporting conventions.*

Key takeaways vs estimates:

  • Q3 revenue beat by ~$8.8M (actual $700.8M vs $692.0M estimate)* .
  • Q3 adjusted EPS beat by ~$0.06 (actual $0.59 vs $0.53 estimate)* .

Revenue composition

Revenue Line ($M)Q3 2024Q2 2025Q3 2025
Subscription$453.327 $481.420 $494.630
Advertising$118.370 $133.974 $132.291
Affiliate, Licensing & Other$68.481 $70.479 $73.900
Total$640.178 $685.873 $700.821

Advertising detail

Advertising ($M)Q3 2024Q2 2025Q3 2025
Digital Advertising$81.564 $94.422 $98.111
Print Advertising$36.806 $39.552 $34.180
Total Advertising$118.370 $133.974 $132.291

KPIs and Operating metrics

KPIQ3 2024Q2 2025Q3 2025
Total Subscribers (000s)11,090 11,880 12,330
Digital-only Subscribers (000s)10,470 11,300 11,760
Net Digital-only Adds (000s)260 230 460
Total Digital-only ARPU ($)9.45 9.64 9.79
Cash & Marketable Securities ($B)—0.952 1.1
Share Repurchases (shares / $M)—460,136 / $23.6 482,833 / $27.3
Free Cash Flow YTD ($M)—193.153 (six months) 392.883 (nine months)
Capex ($M)6.0 (Q3’24) 10.0 (Q2’25) 8.0 (Q3’25)

Non-GAAP and special items:

  • Q3 2025 included $2.4M Generative AI litigation costs and a $3.5M impairment of a non-marketable equity investment; adjusted definitions and reconciliations provided in exhibits .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Digital-only Subscription Revenues (YoY)Q4 2025 vs Q4 2024—increase 13–16% New
Total Subscription Revenues (YoY)Q4 2025 vs Q4 2024—increase 8–10% New
Digital Advertising Revenues (YoY)Q4 2025 vs Q4 2024—increase mid-to-high-teens New
Total Advertising Revenues (YoY)Q4 2025 vs Q4 2024—increase high-single-to-low-double-digits New
Affiliate, Licensing & Other (YoY)Q4 2025 vs Q4 2024—increase mid-single-digits New
Adjusted Operating Costs (YoY)Q4 2025 vs Q4 2024—increase 6–7% New
Depreciation & Amortization ($M)FY 2025~80 (Q2 guide) ~85 Raised
Interest Income & Other, net ($M)FY 2025~40 ~40 Maintained
Capital Expenditures ($M)FY 2025~40 ~35 Lowered

Note: Q4 guidance was newly introduced this quarter; prior quarter guidance covered Q3 2025.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
AI/Technology initiativesAutomated voice powered by AI; AI used for personalization, targeting; growing video library engagement Continued investment; strong ad product suite; first-party data; proprietary ad products (context from filings) AI-powered brand match aiding targeting; AI features like recipe metric conversion and richer Wirecutter search; video “watch” tab rollout Expanding scope and productization
Video strategyDoubling on-platform engagement for audio/video; reporter-led videos —Video made more prominent in app via watch tab; podcasts into video shows; Athletic added NFL footage Accelerating investment and integration
Tariffs/MacroImpact of tariffs “immaterial to date” —Macro backdrop acknowledged; confidence in demand despite platform traffic shifts Stable macro commentary; focus on execution
Advertising dynamicsDigital ads +12%; strong demand, new supply Digital ads +18.7%; new supply in strong-demand areas Digital ads +20.3% and above guidance; execution + ad product innovation; marketer demand Strengthening momentum
Capital allocationReturned ~$81M in Q1; ≥50% FCF to shareholders midterm Repurchased ~$23.6M in Q2; authorization remaining $422.2M No change in strategy; optionality with strong balance sheet; ≥50% FCF target reiterated Consistent policy; continued buybacks
Legal/regulatoryGenerative AI litigation recognized as special item Special item persisted $2.4M AI litigation costs in Q3 Ongoing proceeding; managed as special item

Management Commentary

  • Strategic positioning: “Q3 was another great quarter… Our results affirm that our strategy is working as designed… The media and technology environment is changing rapidly… The Times is one of those companies.” — Meredith Kopit Levien .
  • Ads and product portfolio: “This performance reflects how our strategy to create a larger, more durable digital ad business is working… sports, games, and shopping… a growing supply of high-performing ad products.” — Meredith Kopit Levien .
  • Cost discipline and investment: “We intend to continue operating efficiently while making disciplined investments in our high-quality journalism and digital product experiences.” — Will Bardeen .
  • ARPU and pricing: “Total digital-only ARPU grew 3.6% to $9.79… stepping up subscribers from promotional to higher prices and raised prices on certain tenured subscribers… we remain confident in our ARPU trajectory.” — Will Bardeen .

Q&A Highlights

  • Video monetization and investment: Management sees video as a “big opportunity,” with early-stage ad monetization; focus first on engagement both on- and off-platform; Family Plan contributing to subs and ARPU due to premium pricing .
  • Cost outlook and variability: Q4 OpEx growth reflects continued investment (e.g., video), flexibility to lean into marketing, and variable expenses tied to revenue; long-term focus remains revenue, AOP, margin expansion .
  • Watch tab and games monetization: Early days on ad insertion; goal is driving video engagement; making Mini Crossword paid was intentional and additive without sacrificing engagement; pipeline of new games (e.g., Pips) .
  • Advertising drivers: Strength is “a little bit of everything” — large products in big consumer spaces, engaged audiences, first-party data, proprietary ad products, and AI-powered brand match .
  • The Athletic: On track and additive, with video (NFL footage) enhancing engagement; building audience and brand awareness; conversion funnels from single products to bundle working as designed .

Estimates Context

  • Revenue and adjusted EPS exceeded S&P Global consensus in Q3 2025; outperformance driven by digital advertising strength, robust subscription growth and ARPU step-ups, and disciplined cost control despite investment .
  • Estimate revisions likely move up for digital advertising and subscription revenue lines given sustained momentum and Q4 guide, while OpEx expectations should reflect continued investment and revenue-linked variable costs .

Values sourced from S&P Global where marked with asterisk; company actuals from filings and transcripts.

Key Takeaways for Investors

  • Subscription flywheel intact: multi-product portfolio, bundle push, Family Plan, and pricing step-ups support sustained ARPU and subscriber growth; Q4 guidance implies continued double-digit digital subscription growth .
  • Digital ad momentum is a notable upside driver: +20% YoY in Q3 and Q4 mid-to-high teens guided; AI-driven ad product innovation (brand match) and scaled engagement in news, sports, games position NYT well vs peers .
  • Margin expansion with investment: AOP margin +240bps YoY; near-term OpEx above prior range reflects strategic spend (video, marketing) and variable costs; expect operating leverage as revenue scales .
  • Balance sheet optionality and returns: $1.1B cash, no debt, continued buybacks; management reiterates ≥50% of FCF returned midterm while preserving optionality for strategic opportunities .
  • Legal proceeding managed as special item: ongoing Generative AI litigation expense treated outside core operations; minimal near-term P&L impact beyond disclosed special items .
  • Near-term trading: Potential positive reaction to beats and confident Q4 guide; watch for continued digital ad strength and subscriber net adds cadence; monitor OpEx pacing and video monetization ramp .
  • Medium-term thesis: Essential subscription strategy, diversified revenue mix, proprietary ad tech/data, and disciplined capital allocation underpin compounding FCF and margin expansion opportunity .