New York Times (NYT) Q2 EPS Jumps 29%

The New York Times Co. (NYT -6.19%), the publisher behind the namesake newspaper and a suite of digital products, reported earnings on August 6, 2025. The company posted adjusted diluted earnings per share (EPS) of $0.58, outpacing the analyst consensus of $0.51 (non-GAAP), and revenue (GAAP) of $685.9 million, which beat GAAP expectations of $670.7 million. Both figures showed solid year-over-year growth, with revenue (GAAP) up 9.7% and adjusted diluted EPS (non-GAAP) rising 28.9%. The quarter was marked by continued digital strength, margin expansion, and another step forward for digital subscriber growth, despite signs that new subscriber additions are slowing.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About the Business and Recent Focus Areas

The New York Times Co. operates as a media organization focused on news reporting, commentary, and specialty products including cooking, games, and audio. Subscriptions, especially digital, form the backbone of its business model, which is anchored by its reputation for high-quality, independent journalism.

In recent years, the company has prioritized digital transformation—expanding digital-only offerings, investing in technology, and introducing bundled subscriptions. Its key goals include growing subscriber numbers, increasing engagement, monetizing digital products effectively, and keeping journalistic quality at the center of its value proposition. The company’s ongoing investments in product innovation and technology help it stay competitive in a crowded online news marketplace.

Quarter Highlights: Revenue, Profitability, and Product Update

This period was defined by broad-based financial growth and digital momentum. Revenue (GAAP) rose 9.7% year-over-year, driven mainly by digital-only subscription growth. Digital-only subscription revenues increased by 15.1%, reflecting both price increases and a larger subscriber base. Overall, the company’s total digital-only subscribers rose to 11.30 million, with net digital-only subscriber adds were 230,000—a slowdown from 300,000 new subscribers in Q2 2024. The bundled and multiproduct subscriber base reached 6.02 million, reflecting success in upselling customers to higher-value offerings.

Operating profit was $106.6 million, a 34.2% year-over-year increase, as operating profit margin improved by approximately 280 basis points to 15.5%. Adjusted operating profit reached $133.8 million, up 27.8% from the prior year. The company spent $579.3 million on operating costs (GAAP), which rose 6.2% year over year, largely as a result of higher cost of revenue, sales and marketing, and general and administrative expenses. Adjusted operating costs grew 6.1%.

On the advertising side, Digital advertising revenues grew by 18.7%, reaching $94.4 million, and made up approximately 68% of the company’s total ad revenue in 2024. Print advertising revenues decreased 0.1%. The company’s content licensing business also contributed, with affiliate and licensing revenues up 5.8%. This revenue diversity highlights the shift to a multi-pronged digital monetization approach.

The Athletic, the company’s digital sports media product, reported revenues of $54.0 million, up 33.4% year over year. It turned profitable on an adjusted operating basis, with $5.8 million in adjusted operating profit compared to a $2.4 million loss in Q2 2024. Within this segment, advertising revenues nearly doubled, growing 98.8%.

Noteworthy one-time events included $3.5 million in legal expenses related to ongoing generative artificial intelligence litigation, up from $2.0 million in Q2 2024. There was also a beneficial free cash flow contribution earlier in the year related to an asset sale at the College Point, New York, facility. The company repurchased 460,136 shares for $23.6 million.

The company declared a quarterly dividend and follows a policy of returning at least half of its free cash flow to shareholders over the mid-term. There was no change to the dividend in the quarter.

The New York Times Co.’s Business Model and Success Drivers

The New York Times Co. relies on paid journalism and distinctive lifestyle content—including games, recipes, and sports coverage—to drive recurring subscription revenue. The majority of its subscribers now come from digital products, with digital-only subscribers comprising about 95% of the total base. Its strategy centers on growing the total number of subscribers, increasing average revenue per user (ARPU), and boosting engagement through product bundles.

Key success factors include journalistic excellence, rapid growth in digital and bundle subscriptions, effective use of technology for personalization and pricing, and diversification across digital products and advertising. The company’s ongoing investments in machine learning, data analytics, and digital platforms are designed to increase user retention and upsell opportunities, further supporting its drive toward a target of 15 million total subscribers by the end of 2027.

Outlook and What to Watch

Management guided for digital-only subscription revenue growth of 13–16% and total subscription revenue growth of 8–10%, with digital advertising projected to grow in the high-single-digit range. Adjusted operating costs are expected to rise by 5–6%. The company also plans capital expenditures of about $40 million.

Going forward, with net subscriber additions showing signs of deceleration as the overall base matures, the focus will likely shift to maximizing revenue per user and increasing multiproduct engagement. Print declines and ongoing legal costs may remain headwinds. Strategic progress in digital innovation and pricing will be essential for sustaining profit and growth.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.