The New York Times’ fourth quarter was shaped by strong digital subscription and advertising momentum, but the market responded negatively, reflecting investor concerns about margins and cost trends. Management attributed revenue growth to robust subscriber engagement and a surge in digital advertising, particularly as new products and ad supply drove marketer demand. CEO Meredith Kopit Levien highlighted that “every part of our portfolio contributed,” with products like games, The Athletic, and Cooking helping expand the company’s reach. However, higher operating costs—mainly linked to incentive compensation from financial outperformance and stepped-up video production—drew scrutiny. CFO Will Bardeen acknowledged that expenses exceeded prior guidance, emphasizing the company’s ongoing investments in journalism and digital product experiences.
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The New York Times (NYT) Q4 CY2025 Highlights:
- Revenue: $802.3 million vs analyst estimates of $791.3 million (10.4% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.89 vs analyst estimates of $0.88 (in line)
- Adjusted EBITDA: $192.3 million vs analyst estimates of $196.6 million (24% margin, 2.2% miss)
- Operating Margin: 20.1%, in line with the same quarter last year
- Subscribers: 12.21 million, up 1.39 million year on year
- Market Capitalization: $11.48 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From The New York Times’s Q4 Earnings Call
- David Karnovsky (JPMorgan) asked about the breakdown of digital ad growth drivers and future ad supply. CEO Meredith Kopit Levien explained that new ad supply, enhanced targeting, and greater marketer demand all contributed, and that expanding ad opportunities will remain a focus.
- Benjamin Soff (Deutsche Bank) questioned capital allocation priorities given strong free cash flow. CFO Will Bardeen reiterated the company’s commitment to organic investment, particularly in video, and returning at least 50% of free cash flow to shareholders.
- Thomas Yeh (Morgan Stanley) inquired about the evolution of video journalism and non-news product growth. Levien detailed scaling reporter videos and new formats, emphasizing early positive results and ongoing ramp-up, while highlighting the role of products like games in driving new subscribers.
- Ketan Mamrall (Evercore) asked about digital-only ARPU trends and the sustainability of cost growth. Bardeen stated that ARPU fluctuations are tied to subscriber mix and timing of price increases, but pricing actions and engagement remain strong; cost growth will moderate as video investment laps.
- Kanan Venkatesh (Barclays) probed whether digital ad growth could offset subscription pricing pressure, and about AI risks and opportunities. Levien described advertising and subscription as complementary, with advertising helping to monetize broader audiences, and noted that AI is both a headwind and an opportunity, particularly for content accessibility and ad products.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be closely monitoring (1) the adoption and engagement of new video formats across The Times’ core app and external platforms, (2) the impact of pricing actions on subscriber retention and ARPU, and (3) the trajectory of operating costs as video and content investments continue. Progress in scaling non-news products and any developments in the company’s approach to AI integration will also be key signposts for future performance.
The New York Times currently trades at $70.60, down from $72.21 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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