[Part I: Financial Information](index=3&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201%20Financial%20Statements) The financial statements detail the company's financial position as of June 30, 2025, showing slight asset decrease, strong Q2 revenue and profit growth, and increased operating cash flow for H1 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2.81 billion** as of June 30, 2025, driven by lower current assets, while liabilities decreased and equity increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $855,002 | $936,322 | | **Total Assets** | **$2,805,036** | **$2,841,479** | | **Total Current Liabilities** | $577,985 | $613,529 | | **Total Liabilities** | $869,328 | $914,270 | | **Total Stockholders' Equity** | $1,935,708 | $1,927,209 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues grew 9.7% to **$685.9 million**, with operating profit up 34.2% and net income rising 26.6% Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $685,873 | $625,097 | 9.7% | | Subscription Revenues | $481,420 | $439,322 | 9.6% | | Advertising Revenues | $133,974 | $119,163 | 12.4% | | Operating Profit | $106,551 | $79,410 | 34.2% | | Net Income | $82,945 | $65,540 | 26.6% | | Diluted EPS | $0.50 | $0.40 | 25.0% | Six Months 2025 vs 2024 Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,321,783 | $1,219,112 | 8.4% | | Operating Profit | $165,185 | $127,729 | 29.3% | | Net Income | $132,496 | $105,957 | 25.0% | | Diluted EPS | $0.80 | $0.64 | 25.0% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$212.7 million** in H1 2025, while investing cash outflow decreased and financing cash outflow increased Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $212,726 | $133,310 | | Net cash used in investing activities | ($52,082) | ($96,170) | | Net cash used in financing activities | ($161,751) | ($102,342) | | Net decrease in cash | ($1,107) | ($65,202) | - The increase in cash from operating activities was primarily due to higher net income and net proceeds of approximately **$33 million** from the sale of land in College Point, N.Y[51](index=51&type=chunk)[179](index=179&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation showing strong digital growth, segment performance with The Athletic achieving profitability, and ongoing litigation costs - The company has two reportable segments: The New York Times Group ("NYTG") and The Athletic[30](index=30&type=chunk)[80](index=80&type=chunk) Q2 2025 Revenue Breakdown (in thousands) | Revenue Stream | Q2 2025 | % of Total | | :--- | :--- | :--- | | Subscription | $481,420 | 70.2% | | Advertising | $133,974 | 19.5% | | Affiliate, licensing and other | $70,479 | 10.3% | | **Total** | **$685,873** | **100.0%** | Q2 2025 Subscription & Advertising Revenue Split (in thousands) | Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Digital-only subscription** | $350,353 | $304,501 | 15.1% | | Print subscription | $131,067 | $134,821 | (2.8)% | | **Digital advertising** | $94,422 | $79,575 | 18.7% | | Print advertising | $39,552 | $39,588 | (0.1)% | - The company incurred **$3.5 million** in Q2 2025 and **$7.9 million** in H1 2025 for litigation costs related to its lawsuit against Microsoft and OpenAI regarding generative AI[57](index=57&type=chunk) - The Board of Directors approved a new **$350.0 million** Class A share repurchase program in February 2025 As of June 30, 2025, approximately **$432.9 million** remained available under all authorizations[74](index=74&type=chunk)[75](index=75&type=chunk) Q2 2025 Segment Performance (in thousands) | Segment | Total Revenues | Adjusted Operating Profit (Loss) | | :--- | :--- | :--- | | NYTG | $632,397 | $127,987 | | The Athletic | $54,038 | $5,788 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2025 results to digital strategy, with **230,000** new digital subscribers, increased ARPU, and The Athletic achieving profitability [Executive Overview and Financial Highlights](index=26&type=section&id=Executive%20Overview%20and%20Financial%20Highlights) Q2 2025 saw **230,000** net digital-only subscriber additions, reaching **11.30 million**, with ARPU up 3.2% and adjusted operating profit increasing 27.8% - Added approximately **230,000** net digital-only subscribers in Q2 2025, ending the quarter with **11.30 million** digital-only subscribers[96](index=96&type=chunk) - Total digital-only average revenue per user (ARPU) increased **3.2%** year-over-year to **$9.64**[96](index=96&type=chunk) - Adjusted operating profit (AOP) increased **27.8%** to **$133.8 million**, and the AOP margin expanded to **19.5%** from **16.7%** in Q2 2024[96](index=96&type=chunk) - Digital-only subscription revenues grew **15.1%** to **$350.4 million** in Q2 2025[96](index=96&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2025 total revenues rose 9.7%, driven by digital subscription and advertising growth, despite a decline in news-only subscribers, while operating costs increased 6.2% Digital-Only Subscribers by Category (in thousands) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Bundle and multiproduct | 6,020 | 4,830 | | News-only | 1,690 | 2,290 | | Other single-product | 3,590 | 3,100 | | **Total digital-only subscribers** | **11,300** | **10,210** | Digital-Only ARPU by Category | Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Bundle and multiproduct | $12.52 | $11.96 | | News-only | $12.28 | $11.26 | | Other single-product | $3.51 | $3.65 | | **Total digital-only ARPU** | **$9.64** | **$9.34** | - Digital advertising revenue growth was driven by a **33%** increase in display impressions, while the average rate decreased **1%**[115](index=115&type=chunk) - Media expenses, a component of marketing costs, increased **15.9%** to **$31.9 million** in Q2 2025 due to higher subscriber acquisition spending[131](index=131&type=chunk) [Segment Information](index=34&type=section&id=Segment%20Information) NYTG revenues grew 8.1% to **$632.4 million**, while The Athletic's revenues surged 33.4% to **$54.0 million**, achieving a **$5.8 million** adjusted operating profit Q2 2025 vs Q2 2024 Segment Performance (in thousands) | Segment | Revenues (Q2'25) | Revenues (Q2'24) | % Change | Adj. Op. Profit (Q2'25) | Adj. Op. Profit (Loss) (Q2'24) | | :--- | :--- | :--- | :--- | :--- | :--- | | NYTG | $632,397 | $585,156 | 8.1% | $127,987 | $107,102 | | The Athletic | $54,038 | $40,504 | 33.4% | $5,788 | ($2,402) | - The Athletic's advertising revenue grew **98.8%** to **$14.1 million** in Q2 2025 from **$7.1 million** in Q2 2024[146](index=146&type=chunk)[155](index=155&type=chunk) - The company allocates **10%** of all bundle subscription revenues and associated costs (product development, marketing, subscriber servicing) to The Athletic[81](index=81&type=chunk)[82](index=82&type=chunk)[142](index=142&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$951.5 million** in cash, **$193.2 million** free cash flow, and increased its credit facility to **$400 million** - As of June 30, 2025, the company had cash, cash equivalents, and short- and long-term marketable securities of **$951.5 million**[174](index=174&type=chunk) Free Cash Flow (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $212,726 | $133,310 | | Less: Capital expenditures | ($19,573) | ($14,054) | | **Free cash flow** | **$193,153** | **$119,256** | - In June 2025, the company increased its revolving credit facility to **$400.0 million** and extended the maturity to June 2030 No borrowings were outstanding as of June 30, 2025[187](index=187&type=chunk)[188](index=188&type=chunk) - The company repurchased approximately **$82.5 million** of its Class A stock in the first six months of 2025, with **$432.9 million** remaining under its repurchase authorizations as of June 30, 2025[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported compared to the prior annual report - As of June 30, 2025, there were no material changes in the company's market risks from December 31, 2024[193](index=193&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[195](index=195&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[196](index=196&type=chunk) [Part II: Other Information](index=46&type=section&id=PART%20II%20Other%20Information) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201%20Legal%20Proceedings) The company is actively pursuing a copyright infringement lawsuit against Microsoft and OpenAI regarding generative AI, with core claims proceeding - In December 2023, the company filed a lawsuit against Microsoft and OpenAI for copyright infringement, unfair competition, and other claims related to their use of the company's content in generative AI products[199](index=199&type=chunk) - In March 2025, a court dismissed the unfair competition and DMCA claims (with leave to replead the latter) but allowed other disputed claims, including direct copyright infringement, to proceed[199](index=199&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the quarter - No material changes to risk factors were reported for the quarter[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **460,136** Class A shares for **$23.6 million** in Q2 2025, with **$432.9 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 258,952 | $48.85 | | May 2025 | 60,273 | $52.26 | | June 2025 | 140,911 | $55.32 | | **Total Q2 2025** | **460,136** | **$51.30** | - As of the end of Q2 2025, approximately **$432.9 million** remained available for repurchase under the company's publicly announced plans[201](index=201&type=chunk)[202](index=202&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205%20Other%20Information) No Rule 10b5-1 trading plans were adopted or terminated by directors or executive officers during Q2 2025 - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025[203](index=203&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the amended Credit Agreement, officer certifications, and XBRL data

Core Insights - The New York Times Company (NYT) demonstrated solid performance in Q2 2025, with adjusted earnings per share of 58 cents, exceeding the Zacks Consensus Estimate of 50 cents, and total revenues of $685.9 million, which surpassed the estimate of $669 million, reflecting a year-over-year increase of 9.7% [1][11] Subscription Performance - NYT added approximately 230,000 net digital-only subscribers in the quarter, bringing total subscribers to 11.88 million, with 11.30 million being digital-only [2][5] - Digital-only average revenue per user (ARPU) rose to $9.64 from $9.34 year-over-year, driven by subscribers moving from promotional pricing to higher rate plans [3] - Subscription revenues reached $481.4 million, a 9.6% increase year-over-year, with digital-only subscription revenues increasing by 15.1% to $350.4 million [4][5] Advertising Revenues - Total advertising revenues increased by 12.4% year-over-year to $134 million, with digital advertising revenues rising 18.7% to $94.4 million, while print advertising revenues slightly declined by 0.1% to $39.6 million [6][11] - For Q3, the company anticipates a low-to-mid-single-digit increase in total advertising revenues and a low-double-digit increase in digital advertising revenues [7] Other Revenue Streams - Affiliate, licensing, and other revenues grew by 5.8% year-over-year to $70.5 million, attributed to higher Wirecutter affiliate referral revenues [8] - Adjusted operating costs rose by 6.1% to $552.1 million, with expectations of a 5-6% increase in Q3 [8] Financial Health - The company ended the quarter with cash and marketable securities totaling $951.5 million, an increase of $39.7 million from the previous quarter [14] - NYT repurchased 460,136 shares of its Class A common stock for $23.6 million, with approximately $422.2 million remaining for further repurchases [15]

Core Insights - New York Times Co. reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.45 per share a year ago, resulting in an earnings surprise of +16.00% [1] - The company achieved revenues of $685.87 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.52% and up from $625.1 million year-over-year [2] - The stock has added approximately 3% since the beginning of the year, while the S&P 500 has gained 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $683.08 million, and for the current fiscal year, it is $2.14 on revenues of $2.77 billion [7] - The estimate revisions trend for New York Times was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Publishing - Newspapers industry is currently ranked in the top 7% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported nearly 10% year-over-year revenue growth, with adjusted operating profit (AOP) increasing approximately 28% and AOP margin expanding by about 280 basis points [14][18] - Free cash flow generated in the first half of the year was approximately $193 million, with $134 million returned to shareholders through share repurchases and dividends [15][16] - Adjusted diluted EPS in Q2 increased by $0.13 to $0.58, driven by higher operating profit and interest income [19] Business Line Data and Key Metrics Changes - Digital subscription revenue grew over 15% in the quarter, with total subscription revenues increasing approximately 10% to $481 million [6][18] - The company added 230,000 net new digital subscribers, bringing the total to approximately 11.9 million, with over 50% of subscribers now on bundled or multiple products [6][17] - Digital advertising revenues increased approximately 19% to $94 million, while total advertising revenues grew more than 12% to $134 million [10][18] Market Data and Key Metrics Changes - The company signed a multiyear deal with Amazon, marking its first agreement centered around generative AI, which is expected to expand its audience reach [11] - Affiliate, licensing, and other revenues increased approximately 6% to $70 million, with Wirecutter affiliate revenues performing well [19] Company Strategy and Development Direction - The company aims to continue growing its subscriber base to 15 million by 2027, focusing on enhancing product accessibility and value [29] - The strategy includes expanding video content and enhancing user engagement across various platforms [9][10] - The company is confident in its ability to navigate a dynamic market environment, emphasizing the importance of building direct relationships with its audience [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to grow despite challenges from big tech companies affecting traffic to publishers [12][44] - The company plans to maintain cost discipline while strategically investing in journalism and product experiences [12][20] - Future guidance includes expectations for continued revenue growth, AOP growth, margin expansion, and strong free cash flow generation [20] Other Important Information - The company is in the early stages of rolling out a new family plan subscription offering, which is expected to enhance subscriber retention and monetization [38] - The company will have only one reportable segment starting next quarter, streamlining its reporting structure [20] Q&A Session Summary Question: Advertising performance and key drivers - Management highlighted the broad marketer appeal of its portfolio, effective targeting with first-party data, and the introduction of new ad products as key drivers of advertising growth [23][24] Question: Amazon licensing deal specifics - The deal was described as providing fair value exchange and control over content use, aligning with the company's long-term strategy [25][26] Question: Subscriber growth towards 15 million - Management reiterated confidence in reaching the 15 million subscriber goal by 2027, citing persistent demand and a growing audience [28][29] Question: Bundle strategy progress - The achievement of 50% bundled subscribers was noted, with plans to continue driving bundle adoption as a growth catalyst [35][36] Question: Traffic headwinds from AI - Management acknowledged ongoing traffic challenges from AI but emphasized resilience through direct audience engagement strategies [44][45] Question: Promotional pricing strategy - The company maintains a consistent promotional pricing strategy to engage subscribers and drive bundle adoption [46][47] Question: AI licensing opportunities - Management expressed openness to future licensing deals, emphasizing the importance of fair value exchange and control over content [54][55]

Financial Data and Key Metrics Changes - The company reported nearly 10% year-over-year revenue growth and approximately 28% growth in adjusted operating profit (AOP) with AOP margin expanding by about 280 basis points [13] - Free cash flow generated in the first half of the year was approximately $193 million, with about $134 million returned to shareholders through share repurchases and dividends [14][16] - Adjusted diluted EPS in Q2 increased by $0.13 to $0.58, primarily driven by higher operating profit and interest income [17] Business Line Data and Key Metrics Changes - Digital subscription revenue increased by over 15% in the quarter, with total subscription revenues growing approximately 10% to $481 million [6][16] - The company added 230,000 net new digital subscribers, bringing the total to approximately 11.9 million, with over 50% of subscribers now on bundled or multiple products [5][15] - Digital advertising revenues grew nearly 19% to $94 million, while total advertising revenues increased by approximately 12% to $134 million [9][16] Market Data and Key Metrics Changes - Affiliate, licensing, and other revenues increased approximately 6% to $70 million, with growth particularly noted in areas like gifts, apparel, and beauty at Wirecutter [10][17] - The company signed a multiyear deal with Amazon, marking its first agreement centered around generative AI, which is expected to enhance audience reach [10][32] Company Strategy and Development Direction - The company aims to continue growing its subscriber base to 15 million by 2027, focusing on enhancing product accessibility and value [29] - The strategy includes expanding video content to engage audiences more effectively, with a significant push in producing news videos and enhancing lifestyle product experiences [7][9] - The company remains confident in its ability to grow despite challenges from big tech companies affecting traffic to publishers, emphasizing the importance of direct relationships with audiences [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to continue delivering revenue and profit growth, citing strong audience engagement and a disciplined investment approach [4][12] - The company anticipates healthy growth in revenues and AOP, margin expansion, and strong free cash flow generation for the full year [19] - Management acknowledged the challenges posed by AI technologies affecting traffic but emphasized resilience through a focus on essential journalism and audience engagement [44][59] Other Important Information - The company is in the early stages of rolling out a new family plan subscription offering, which is expected to enhance subscriber retention and monetization [38] - The company plans to operate with only one reportable segment starting next quarter, streamlining its reporting structure [18] Q&A Session Summary Question: Advertising performance compared to other digital platforms - Management highlighted the broad marketer appeal of their portfolio, effective targeting with first-party data, and the introduction of new ad products as key factors driving advertising growth [22][23] Question: Amazon licensing deal details - The deal was described as consistent with the company's principles, providing fair value exchange and control over content usage, reinforcing the value of their journalism [24][25] Question: Subscriber growth towards 15 million - Management reiterated the goal of reaching 15 million subscribers by 2027, citing persistent demand and a growing audience of registered users [28][29] Question: Amazon AI deal impact on guidance - The Amazon agreement is included in the guidance, with expectations for revenue growth in the affiliate licensing and other revenue line [31][32] Question: Bundle strategy progress - Management expressed satisfaction with achieving 50% of subscribers on bundles, emphasizing the strong lifetime value of bundled subscribers [35][36] Question: Traffic headwinds from AI - Management acknowledged the impact of AI on traffic but emphasized their strategy to build direct relationships with audiences to mitigate these effects [44][59] Question: Promotional pricing strategy for bundles - Management confirmed no changes to their promotional pricing strategy, focusing on engaging subscribers and driving them towards the bundle [46][47]

August 6, 2025 Forward-Looking Statements Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Terms such as "aim," "anticipate," "believe," "confidence," "contemplate," "continue," "conviction," "could," "drive," "estimate," "expect," "forecast," "future," "goal," "guidance," "intend," " ...

[Q2 2025 Earnings Report Overview](index=1&type=section&id=The%20New%20York%20Times%20Company%20Reports%20Second-Quarter%202025%20Results) The New York Times Company achieved strong Q2 2025 results with significant growth in subscribers, revenues, and profitability across all segments [Key Highlights](index=1&type=section&id=Key%20Highlights) The New York Times Company reported a strong second quarter for 2025, with growth across all major revenue streams and significant free cash flow generation. The company's strategy of investing in journalism and its product portfolio continues to drive subscriber growth and increased profitability, with operating profit rising 34.2% year-over-year - The company added approximately **230,000 net new digital-only subscribers** in Q2 2025, bringing the total to **11.88 million subscribers**[4](index=4&type=chunk) - The CEO highlighted that the company's strategy is working as designed, leading to growth in all major revenue lines and significant free cash flow, enabling continued investment in journalism and product development[3](index=3&type=chunk) Q2 2025 Key Performance Indicators (YoY) | Metric | Q2 2025 Value | YoY Change | | :--- | :--- | :--- | | Total Digital-Only ARPU | $9.64 | +3.2% | | Digital Subscription Revenues | - | +15.1% | | Digital Advertising Revenues | - | +18.7% | | Operating Profit | $106.6 million | +34.2% | | Adjusted Operating Profit | $133.8 million | +27.8% | | Diluted EPS | $0.50 | +$0.10 | | Adjusted Diluted EPS | $0.58 | +$0.13 | [Summary of Quarterly Results](index=2&type=section&id=Summary%20of%20Quarterly%20Results) This section provides a five-quarter overview of key operational and financial metrics, highlighting consistent growth in subscribers and profitability [Quarterly Performance Trends](index=2&type=section&id=Quarterly%20Performance%20Trends) This section presents a five-quarter summary of key operational and financial metrics, illustrating consistent growth in subscribers, digital revenues, and profitability. Q2 2025 saw total revenues reach $685.9 million, a 9.7% year-over-year increase, with adjusted operating profit growing 27.8% to $133.8 million Key Metrics Comparison (Q2 2024 vs Q2 2025) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Digital-only subscribers (millions) | 10.21 | 11.30 | +10.7% | | Total digital-only ARPU | $9.34 | $9.64 | +3.2% | | Digital-only subscription revenues ($M) | $304.5 | $350.4 | +15.1% | | Digital advertising revenues ($M) | $79.6 | $94.4 | +18.7% | | Total revenues ($M) | $625.1 | $685.9 | +9.7% | | Operating profit ($M) | $79.4 | $106.6 | +34.2% | | Adjusted operating profit ($M) | $104.7 | $133.8 | +27.8% | | Diluted EPS | $0.40 | $0.50 | +25.0% | | Adjusted diluted EPS | $0.45 | $0.58 | +28.9% | [Consolidated Financial Results](index=3&type=section&id=Consolidated%20Financial%20Results) The company's consolidated financial performance in Q2 2025 demonstrates robust growth in digital subscribers and revenues, alongside managed increases in operating costs [Subscribers and Average Revenue Per User (ARPU)](index=4&type=section&id=Subscribers%20and%20ARPU) The company's digital-only subscriber base grew to 11.30 million, a net increase of 1.08 million year-over-year. Total digital-only ARPU rose by 3.2% to $9.64, primarily due to subscribers moving from promotional to higher-priced plans and price increases for tenured subscribers - At the end of Q2 2025, the company had **11.88 million total subscribers**, with **11.30 million being digital-only**[9](index=9&type=chunk) - Digital-only subscribers increased by **230,000** compared to Q1 2025 and by **1,080,000** compared to Q2 2024[10](index=10&type=chunk) - The **3.2% YoY increase** in total digital-only ARPU to **$9.64** was driven by subscribers transitioning off promotional pricing and targeted price increases[12](index=12&type=chunk) [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) Total revenues for Q2 2025 increased by 9.7% to $685.9 million. This growth was propelled by a 15.1% rise in digital-only subscription revenues and an 18.7% increase in digital advertising revenues. Print subscription revenues saw a slight decline Q2 2025 Revenue Breakdown (YoY) | Revenue Stream | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Digital-Only Subscription | $350.4 | $304.5 | +15.1% | | Print Subscription | $131.1 | $134.8 | -2.8% | | **Total Subscription** | **$481.4** | **$439.3** | **+9.6%** | | Digital Advertising | $94.4 | $79.6 | +18.7% | | Print Advertising | $39.6 | $39.6 | -0.1% | | **Total Advertising** | **$134.0** | **$119.2** | **+12.4%** | | Affiliate, Licensing & Other | $70.5 | $66.6 | +5.8% | | **Total Revenues** | **$685.9** | **$625.1** | **+9.7%** | - Digital advertising growth was mainly due to new advertising supply in areas of strong marketer demand[14](index=14&type=chunk) [Operating Costs](index=5&type=section&id=Operating%20Costs) Total operating costs rose 6.2% year-over-year to $579.3 million, while adjusted operating costs increased 6.1% to $552.1 million. The increase was primarily driven by higher journalism costs, subscriber servicing costs, and sales and marketing expenses, including a 15.9% rise in media expenses to promote subscriptions - Total operating costs included **$3.5 million in Generative AI Litigation Costs** in Q2 2025, compared to **$2.0 million** in Q2 2024[17](index=17&type=chunk) Q2 2025 Operating Costs Breakdown (YoY) | Cost Category | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of revenue | $338.8 | $322.8 | +5.0% | | Sales and marketing | $69.2 | $61.3 | +12.8% | | Product development | $63.9 | $62.2 | +2.8% | | General and administrative | $82.6 | $76.9 | +7.4% | | **Total Operating Costs** | **$579.3** | **$545.7** | **+6.2%** | [Business Segment Results](index=6&type=section&id=Business%20Segment%20Results) Both the New York Times Group and The Athletic segments demonstrated strong revenue growth, with The Athletic achieving a significant turnaround to profitability [The New York Times Group (NYTG)](index=6&type=section&id=The%20New%20York%20Times%20Group%20(NYTG)) The NYTG segment reported an 8.1% increase in revenues to $632.4 million and a 19.5% increase in adjusted operating profit to $128.0 million. Growth was driven by strong performance in digital subscription and digital advertising revenues, which offset a decline in print subscription revenue NYTG Segment Performance - Q2 2025 (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $632.4 | $585.2 | +8.1% | | Subscription Revenues | $446.8 | $410.0 | +9.0% | | Advertising Revenues | $119.9 | $112.1 | +7.0% | | Adjusted Operating Costs | $504.4 | $478.1 | +5.5% | | Adjusted Operating Profit | $128.0 | $107.1 | +19.5% | [The Athletic](index=6&type=section&id=The%20Athletic) The Athletic segment achieved a significant milestone, reporting an adjusted operating profit of $5.8 million, a substantial turnaround from a $2.4 million loss in the prior-year quarter. Total revenues grew by 33.4% to $54.0 million, fueled by strong growth in advertising (up 98.8%) and subscriptions (up 18.1%) The Athletic Segment Performance - Q2 2025 (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $54.0 | $40.5 | +33.4% | | Subscription Revenues | $34.6 | $29.3 | +18.1% | | Advertising Revenues | $14.1 | $7.1 | +98.8% | | Adjusted Operating Costs | $48.3 | $42.9 | +12.5% | | Adjusted Operating Profit/(Loss) | $5.8 | ($2.4) | +$8.2M | [Other Financial Information and Liquidity](index=7&type=section&id=Other%20Financial%20Information%20and%20Liquidity) The company demonstrated strong bottom-line growth with increased EPS and maintained a robust financial position with significant cash reserves and free cash flow [Income, Taxes, and Earnings Per Share (EPS)](index=7&type=section&id=Income%2C%20Taxes%2C%20and%20EPS) Higher pre-tax income led to increased income tax expense, with the effective tax rate rising to 25.7%. The company delivered strong bottom-line results, with diluted EPS increasing by 25% to $0.50 and adjusted diluted EPS growing by 28.9% to $0.58 year-over-year - Net interest income increased to **$9.8 million** from **$8.7 million** YoY, due to higher cash balances and interest rates[28](index=28&type=chunk) Q2 2025 Earnings Per Share (YoY) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.50 | $0.40 | +25.0% | | Adjusted Diluted EPS | $0.58 | $0.45 | +28.9% | [Liquidity and Capital Management](index=7&type=section&id=Liquidity%20and%20Capital%20Management) The company maintains a robust financial position, ending the quarter with $951.5 million in cash and marketable securities. Free cash flow for the first half of 2025 was strong at $193.2 million. The company also increased its credit facility to $400 million and continued its share repurchase program, buying back $23.6 million in stock during the quarter - Cash and marketable securities increased to **$951.5 million** as of June 30, 2025[31](index=31&type=chunk) - The company amended its credit facility, increasing the amount to **$400 million** and extending the maturity to 2030. No borrowings were outstanding[32](index=32&type=chunk) - Free cash flow for the first six months of 2025 was **$193.2 million**, compared to **$119.3 million** in the same period of 2024[33](index=33&type=chunk) - The company repurchased **460,136 shares** for approximately **$23.6 million** in Q2 2025, with **$422.2 million** remaining under the repurchase authorization[34](index=34&type=chunk) [Outlook](index=8&type=section&id=Outlook) The company anticipates continued strong growth in digital revenues for Q3 2025 and provides full-year projections for key financial items [Third-Quarter 2025 Guidance](index=8&type=section&id=Third-Quarter%202025%20Guidance) For the third quarter of 2025, the company anticipates continued strong growth, particularly in its digital businesses. Digital-only subscription revenues are expected to increase by 13% to 16%, and digital advertising revenues are projected to grow in the low-double-digits Q3 2025 Guidance (YoY Growth) | Metric | Expected Increase | | :--- | :--- | | Digital-only subscription revenues | 13% - 16% | | Total subscription revenues | 8% - 10% | | Digital advertising revenues | Low-double-digits | | Total advertising revenues | Low-to-mid-single-digits | | Affiliate, licensing and other revenues | High-single-digits | | Adjusted operating costs | 5% - 6% | [Full-Year 2025 Projections](index=8&type=section&id=Full-Year%202025%20Projections) The company provides full-year 2025 pre-tax projections for key financial items, expecting approximately $80 million in depreciation and amortization, $40 million in net interest income, and $40 million in capital expenditures Full-Year 2025 Projections (Pre-tax) | Item | Projected Amount | | :--- | :--- | | Depreciation and amortization | ~$80 million | | Interest income and other, net | ~$40 million | | Capital expenditures | ~$40 million | [Financial Statements and Supplemental Data](index=11&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section provides detailed financial statements, including consolidated operations, subscriber metrics, and reconciliations of non-GAAP financial measures [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations provide a detailed view of the company's financial performance for the second quarter and first six months of 2025. For Q2, total revenues grew 9.7% to $685.9 million, while operating profit increased 34.2% to $106.6 million, resulting in a net income of $82.9 million Q2 2025 Statement of Operations Highlights (YoY) | Line Item ($ thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total revenues | $685,873 | $625,097 | +9.7% | | Total operating costs | $579,322 | $545,687 | +6.2% | | **Operating profit** | **$106,551** | **$79,410** | **+34.2%** | | Income before income taxes | $111,664 | $87,083 | +28.2% | | **Net income** | **$82,945** | **$65,540** | **+26.6%** | [Supplemental Subscriber and ARPU Information](index=13&type=section&id=Supplemental%20Subscriber%20and%20ARPU%20Information) This section offers a granular breakdown of the digital subscriber base and ARPU. As of Q2 2025, of the 11.30 million digital-only subscribers, 6.02 million were bundle and multiproduct subscribers. Bundle ARPU was the highest at $12.52, while news-only ARPU stood at $12.28 Digital-Only Subscriber Breakdown (in thousands) | Subscriber Type | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Bundle and multiproduct | 6,020 | 5,760 | 4,830 | | News-only | 1,690 | 1,790 | 2,290 | | Other single-product | 3,590 | 3,500 | 3,100 | | **Total digital-only** | **11,300** | **11,060** | **10,210** | Digital-Only ARPU Breakdown | ARPU Type | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Bundle and multiproduct | $12.52 | $12.38 | $11.96 | | News-only | $12.28 | $12.12 | $11.26 | | Other single-product | $3.51 | $3.54 | $3.65 | | **Total digital-only ARPU** | **$9.64** | **$9.54** | **$9.34** | [Reconciliation of Non-GAAP Financial Measures](index=17&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP measures to their most comparable GAAP counterparts. For Q2 2025, adjusted diluted EPS of $0.58 is reconciled from a GAAP diluted EPS of $0.50, and adjusted operating profit of $133.8 million is reconciled from a GAAP operating profit of $106.6 million. Free cash flow for the first six months was $193.2 million Q2 2025 Reconciliation of GAAP to Adjusted Diluted EPS | Description | Per Share Amount | | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.50** | | Amortization of acquired intangible assets | $0.04 | | Severance | $0.01 | | Non-operating retirement costs | $0.04 | | Special items (Generative AI Costs) | $0.02 | | Income tax expense of adjustments | ($0.03) | | **Adjusted diluted EPS (Non-GAAP)** | **$0.58** | Q2 2025 Reconciliation of GAAP to Adjusted Operating Profit ($ thousands) | Description | Amount | | :--- | :--- | | **Operating profit (GAAP)** | **$106,551** | | Depreciation and amortization | $21,396 | | Severance | $1,000 | | Multiemployer pension plan withdrawal costs | $1,338 | | Generative AI Litigation Costs | $3,490 | | **Adjusted operating profit (Non-GAAP)** | **$133,775** | Reconciliation to Free Cash Flow - First Six Months 2025 ($ thousands) | Description | Amount | | :--- | :--- | | Net cash provided by operating activities | $212,726 | | Less: Capital expenditures | ($19,573) | | **Free cash flow** | **$193,153** |

Group 1 - Corteva, Inc. has shown strong performance in the Consumer Staples sector, returning approximately 26.3% year-to-date, significantly outperforming the sector average of 2.7% [4] - The Zacks Rank for Corteva, Inc. is currently 2 (Buy), indicating a positive earnings outlook with a 0.9% increase in the consensus estimate for full-year earnings over the past quarter [3] - Corteva, Inc. belongs to the Agriculture - Operations industry, which has an average gain of 9.9% this year, further highlighting its strong performance relative to its industry [5] Group 2 - The Consumer Staples sector, which includes 178 individual stocks, is ranked 14 in the Zacks Sector Rank, reflecting the overall strength of the group [2] - Another notable stock in the Consumer Staples sector is New York Times Co., which has also outperformed the sector with a year-to-date increase of 3.3% [4][6] - The Agriculture - Operations industry, where Corteva operates, currently ranks 191 in the Zacks Industry Rank, indicating a relatively lower position compared to other industries [5]

Core Insights - The New York Times has signed a multi-year licensing agreement with Amazon regarding AI, with annual fees ranging from $20 million to $25 million, which is nearly 1% of the Times' total revenue for 2024 [3] - This agreement allows Amazon to access content from The New York Times, NYT Cooking, and The Athletic for AI applications, including displaying summaries and snippets in Amazon's products like Alexa [3] - The deal marks a significant shift for The New York Times, which previously took a strong stance against AI copyright issues, having sued OpenAI and Microsoft for copyright infringement in December 2023 [3] Company Developments - Amazon is integrating AI into its services, with a major update to its Alexa voice assistant, now referred to as "Alexa+", released in February [4] - Amazon reported a 13% year-over-year revenue increase to $167.7 billion for Q2 2025, with a net profit of $18.164 billion, a 35% increase [4] - Despite strong financial results, Amazon provided a pessimistic outlook, particularly regarding its cloud business, which disappointed some investors [4] Industry Trends - More news organizations are exploring partnerships with tech companies in the AI space rather than pursuing litigation [4] - News Corp announced a multi-year global partnership with OpenAI in May, allowing access to its media content, with a potential total value exceeding $250 million over five years [5] - OpenAI has established partnerships with over 20 news publishers, covering more than 160 media outlets, indicating a growing trend of collaboration in the industry [5]

New York Times Co. (NYT) has been beaten down lately with too much selling pressure. While the stock has lost 9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of ...