NEW YORK TIMES (NYT)·Q4 2025 Earnings Summary
NYT Q4 2025 Earnings: Double Beat as Digital Ads Surge 25% and Subscribers Hit 12.8M
February 4, 2026 · by Fintool AI Agent
The New York Times delivered another quarter of solid execution, beating both revenue and earnings estimates while demonstrating strength across its diversified business model. Total revenue of $802 million topped consensus by 1.3%, and adjusted diluted EPS of $0.89 exceeded expectations by 1.1% . The standout metric was digital advertising, which surged 24.9% year-over-year — far exceeding guidance for "mid-to-high-teens" growth .
Despite the beat, shares traded lower aftermarket, falling approximately 2.4% to $70.50. The muted reaction may reflect elevated expectations heading into the print, with the stock up ~50% over the past year and trading near 52-week highs.
Did NYT Beat Earnings?
Yes — NYT extended its EPS beat streak to 8 consecutive quarters.
*Consensus from S&P Global
The company delivered on its essential subscription strategy while seeing stronger-than-expected momentum in advertising. AOP margin expanded 50 basis points to 24.0%, demonstrating the operating leverage in the model .
Ask Fintool AI AgentWhat Changed From Last Quarter?
Several notable shifts emerged in Q4 2025:
Digital Advertising Acceleration: Digital ad revenue grew 24.9% YoY, a significant step-up from Q3 2025's growth rate and the strongest quarterly performance in recent history . CEO Levien attributed success to three factors: (1) new ad supply added across multiple products, (2) improved demand with ability to "do bigger deals" with existing marketers and appeal to more advertisers at scale, and (3) strong execution with high-performing ad products driving repeat purchases .
Bundle Milestone Achieved: Bundle and multiproduct subscribers crossed 51% of the total subscriber base, up from 48% a year ago . This is strategically important as bundled subscribers exhibit higher retention and lifetime value.
ARPU Stabilization: Total digital-only ARPU grew 0.7% YoY to $9.72, moderating from earlier quarters but remaining positive . The sequential dip from Q3's $9.79 reflects mix shift toward promotional pricing to acquire new subscribers.
Cost Growth Above Guidance: Adjusted operating costs grew 9.7% YoY, above the 6-7% guidance range . This was driven by investments in cost of revenue, G&A, sales & marketing, and product development .
How Are Subscribers Trending?
NYT added approximately 450,000 net digital-only subscribers in Q4, bringing total subscribers to 12.78 million . The company remains on track toward its 15 million subscriber target.
Subscriber Mix by Category (Q4 2025) :
The continued decline in News-only subscribers (100K net losses) is intentional — the company has stopped marketing standalone news subscriptions to consumers since Q2 2023 , instead focusing on bundle conversions.
Management announced a disclosure change: Following Q4, NYT will discontinue reporting subscriber and ARPU breakdowns by category (bundle, news-only, other single product). Going forward, only total digital-only subscribers and total digital-only ARPU will be reported .
Revenue Breakdown: Where Is Growth Coming From?
The digital subscription revenue trajectory shows consistent scaling:
Ask Fintool AI AgentWhat Did Management Guide?
NYT provided Q1 2026 guidance that implies continued healthy growth across all revenue streams :
Full-Year 2026 Expectations :
- Depreciation & amortization: ~$80-85M (includes $25-30M of acquired intangible amortization)
- Interest income and other, net: ~$40-45M
- Capital expenditures: ~$35-45M
The digital advertising guidance for "high-teens to low-twenties" is notably above prior quarter trends, suggesting management sees durable demand momentum.
Cash Flow and Capital Returns
NYT continued to generate robust free cash flow, reaching $551 million on a trailing twelve-month basis — up 45% from $381 million a year ago .
The company reiterated its commitment to returning at least 50% of free cash flow to shareholders over the mid-term . NYT returned approximately $275 million to shareholders in 2025, including ~$165 million in share repurchases and ~$110 million in dividends .
Dividend Increase: The company announced a quarterly dividend increase from $0.18 to $0.23 per share (28% increase) . As of year-end, $350 million remained on the share repurchase authorization .
How Did the Stock React?
Despite the double beat, NYT shares traded lower in aftermarket trading:
The muted reaction likely reflects:
- Elevated expectations: Stock near 52-week highs after a strong run
- Cost growth: AOC +9.7% came in above the 6-7% guidance range
- ARPU deceleration: Digital ARPU growth of 0.7% is the lowest in recent quarters
Key Risks and Watchpoints
Cost Discipline Questioned: Operating costs grew 9.7% in Q4 vs 6-7% guidance. CFO Will Bardeen explained the primary driver was "higher expenses associated with incentive compensation programs related to our financial outperformance" — with strong advertising results triggering higher payouts across all four expense lines . Video investments were a secondary factor. While management frames this as "disciplined investment," investors will monitor whether this pace moderates.
ARPU Pressure: Total digital-only ARPU growth has decelerated from ~4% in 2024 to 0.7% in Q4 2025 . The mix shift toward lower-priced "other single product" subscriptions ($3.36 ARPU vs $12.92 for bundle) weighs on blended ARPU.
Print Secular Decline: Print subscription and advertising continue to decline (-2.3% and -6.4% YoY respectively) . While expected, this remains a ~$173M quarterly headwind that digital must outgrow.
Disclosure Change: The elimination of subscriber/ARPU category breakdowns reduces transparency for investors tracking bundle conversion progress and pricing power.
What Did Management Say About Strategy?
Video Journalism Investment
Management emphasized video as a "really big long-term opportunity to establish the Times as the preferred brand for watching news in addition to reading and listening" . CEO Meredith Kopit Levien outlined the production strategy:
- Reporter Videos: Scaling up, leveraging the company's "enormous reporting force"
- Visual Investigations: Becoming more important in a "low-trust environment"
- Podcast-to-Video Conversions: Hit podcasts are being turned into "full-bore video shows"
- New Watch Tab: Launched in the core app with "early days" but encouraging results
The Q1 2026 cost guide of 8-9% growth "reflects the year-over-year impact of that ramp, of volume and video production at both the Times, The Athletic across the portfolio" .
Family Plan as "Password Sharing Carrot"
When asked about password sharing strategy, Levien described Family Plan as the "carrot version" of addressing shared accounts, noting it's "going very, very well" . Three key benefits:
- Penetration: Subscribers bring new people into the Times ecosystem
- Premium Pricing: Priced at a premium, so "additive out of the gate to revenue"
- Engagement & Retention: Sharing with loved ones improves engagement and retention
Management didn't rule out more aggressive password sharing measures "down the road" but noted they're "still relatively early in market penetration" .
Bundle Price Increase Taking Effect
CFO Will Bardeen highlighted that a "tenured cohort of bundled subscribers began paying those higher prices in Q1" — moving from $25 to $30 for the digital bundle . Results from earlier testing are "very encouraging" with strong performance at pricing step-up points .
Ask Fintool AI AgentForward Catalysts
- Q1 2026 Earnings (expected May 2026): Test of whether digital advertising momentum sustains
- 15M Subscriber Milestone: Management's next stated target, likely achievable in 2027 at current pace
- AI/Generative AI Positioning: On AI, Levien noted "we continue to see headwinds" but emphasized the company's strategy of "building differentiated products at scale, which are worthy of seeking out and building habits with, make us really resilient" . The Times is using AI to make content "more accessible" and has "AI-powered ad products that is really working"
- Product Innovation: Continued investment in Games, Cooking, Athletic, and Wirecutter drives bundle value
- 2026 Milestones: The 250th anniversary of America and the 175th anniversary of The New York Times (founded 1851) create content opportunities
Ask Fintool AI AgentSummary
The New York Times delivered a solid Q4 2025, extending its EPS beat streak to 8 quarters. The digital subscription flywheel continues to work — 12.78 million subscribers generating $382 million in quarterly digital subscription revenue, with bundle adoption now exceeding 50% of the base. Digital advertising was the standout, surging 25% and materially beating expectations.
The stock's post-earnings weakness appears to reflect profit-taking after a strong run rather than fundamental concerns. Investors should monitor cost growth discipline and ARPU trajectory as key indicators of sustainable margin expansion.
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