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 Performance - Q2 FY2025 - Total operating revenue reached $137 million, a decrease of 6% year-over-year (YoY), or 5% on a same-store basis[14] - Total digital revenue amounted to $73 million, reflecting a 3% YoY increase[14] - Print revenue totaled $65 million, experiencing a 14% decline[14] - Adjusted EBITDA stood at $8 million[15] Digital Revenue Growth - Digital subscription revenue grew by 20% to $24 million[16] - Amplified Digital® agency revenue increased by 9% to $25 million[16] - Digital advertising revenue decreased by 2% to $44 million[16] - Lee expects the Three Pillar Digital Growth Strategy to drive more than $450 million of digital revenue by 2028[3] Cost Management and Debt Reduction - Total cash costs were $131 million, a 2% YoY decrease[15] - Approximately $40 million of annualized cost reductions were executed in the second quarter of FY25[21] - Debt was reduced by $123 million since refinancing in March 2020, bringing the total to $453 million in Q2 2025 from $576 million in Q2 2020[23, 25] Future Outlook - The company anticipates low-single-digit YoY growth in total digital revenue for the second half of FY25[26] - The company anticipates low-single-digit YoY growth in Adjusted EBITDA for the second half of FY25[26]