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]