Irrespective of his position in any official capacity, Warren Buffett continues to be poignantly relevant in the world of investing. Even though he has now stepped down as the CEO of Berkshire Hathaway (BRK.A) (BRK.B), in his last days at the helm of the multi-billion-dollar conglomerate, he made some notable moves. While his reduction of stakes in some of his all-time favorites, like Bank of America (BAC) and Apple (AAPL), may draw more attention, it is his investment in a legacy newspaper company that ...

Core Insights - The New York Times Company reported strong financial performance in 2025, with significant growth in digital revenues and profitability, driven by strategic execution and subscriber growth [5][7][21] Financial Performance - Total revenue for the year increased by approximately 9%, with digital subscription revenues rising about 14% and digital advertising increasing by 20% [2][8] - Adjusted operating profit (AOP) grew about 21% year over year to $550 million, with AOP margin expanding by approximately 190 basis points to 19.5% [2][7] - Free cash flow was approximately $551 million, and the company returned about $275 million to shareholders while increasing the quarterly dividend to $0.23 [7][21] Subscriber Growth - The company added 1.4 million net new digital subscribers in 2025, bringing the total to 12.8 million, and surpassed $2 billion in total digital revenues for the first time [4][3][7] - In the fourth quarter alone, about 450,000 net new digital subscribers were added, with digital-only subscription revenues increasing roughly 14% to $382 million [8] Strategic Focus - Management is prioritizing video expansion and AI-driven products to enhance advertising and engagement, with a digital bundle price increase to $30 supporting average revenue per user (ARPU) gains [6][15] - The company aims to establish itself as a preferred brand for news consumption across various formats, including video, as linear TV declines [15][14] Cost Management and Outlook - Adjusted operating costs increased by 9.7%, attributed to incentive compensation expenses, with expectations for costs to rise by 8% to 9% in Q1 2026 due to ramping video production [10][18] - The company anticipates continued double-digit growth in digital advertising and total advertising growth in the low-double digits for Q1 2026 [19][21] Capital Allocation - The company maintains a strategy of high-return organic investment in its subscription model, with a commitment to return at least 50% of free cash flow to shareholders over the midterm [20][21] - In 2025, the company returned about $275 million to shareholders, including share repurchases and dividends, and ended the year with $350 million remaining on its share repurchase authorization [20][21]