The New York Times Company Q4 FY2025 earnings call

• 2025 was a strong year with 1,400,000 net new digital subscribers added, total subscribers at 12,800,000, aiming for 15,000,000+ subscribers. - Generated over $2 billion in total digital revenues for the first time, adjusted operating profit grew over 20% to 19.5% margin. - Fourth quarter added 450,000 net new digital subscribers, digital subscription revenues grew 14%, advertising beat expectations. - Strategically, world-class journalism and lifestyle products address big global markets, unique content engine, constant innovation in formats, multiple digital revenue streams. - Plan to capitalize on advantages in 2026 with more news coverage in formats, adding value through new shows, games, product features, navigate tech landscape.

In 2025, The New York Times added 1,400,000 net new digital subscribers, bringing total subscribers to 12,800,000. Digital subscription revenues grew 14% in the fourth quarter, with 450,000 net new digital subscribers added in the quarter. Digital advertising revenues increased 25% in the quarter to $147 million, and total advertising grew 16%. Licensing, affiliate, and other revenues grew 5.5% in the quarter to $100 million. In absolute terms, net new digital subscribers in 2025 were 1,400,000; Q4 net new digital subscribers were 450,000; digital subscription revenues in Q4 were $382 million; digital advertising in Q4 was $147 million; affiliate licensing and other revenues in Q4 were $100 million. Digital subscriptions contribute significantly to revenue, with digital advertising showing strong growth and other segments also contributing.

• Q1 2026: Digital-only subscription revenues expected to increase 14%-17%, total subscription revenues 9%-11%, digital advertising high teens-low 20s, total advertising low double digits, affiliate licensing and other revenues high single digits, adjusted operating costs 8%-9%. - Full year 2026 expected healthy revenue growth, AOP margin expansion, strong free cash flow generation, on track for midterm targets for subscribers, AOP growth, and capital returns.

• Operating in a polarized, low-trust environment shaped by powerful platforms creating headwinds. - AI litigation and related uncertainties. - Contract negotiations with unions like the News Guild pose potential operational risks.

Q: When looking at 20% digital ad growth last year, can you break out new supply, new products, or engagement? And on Q1 cost guide above recent trends, unpack drivers including video.

A: Meredith Kopit Levien said on ads, added more ad supply, made existing supply more valuable with data, demand improved with bigger deals and appealing to more marketers. Will Bardeen said Q1 cost guide reflects ramp of video production at The Times and The Athletic, and disciplined investment in areas differentiating the company.

Q: On capital allocation and password sharing. How think about capital allocation and password sharing tools?

A: Will Bardeen said capital allocation strategy continues with high-return organic investment, return at least 50% of free cash flow to shareholders, balance between dividends and share repurchases. Meredith Kopit Levien said focus on big market opportunities, family plan as carrot for password sharing, which is working with penetration, premium pricing, and improving engagement.

Q: On video journalism initiative evolution and non-news single product growth. How see video evolution and drivers of non-news single product growth?

A: Meredith Kopit Levien said video is big long-term opportunity, scaling production with reporter videos, visual investigations, turning podcasts into video shows, playing in new watch tab and off-platform. On non-news single product growth, strategy working as designed with multiple levers for growth and products working together.

Q: On ARPU and costs. Color on ARPU specifically and cost trajectory. Should high single-digit cost growth be new normal?

A: Will Bardeen said focused on sustaining revenue, AOP, and margin growth, disciplined on costs. On ARPU, fluctuates due to sub additions, promotion, tenured status, timing of price increases, expecting benefit from digital bundle price increase. On costs, Q4 higher due to incentive comp from financial outperformance, but focused on long-term sustainable growth.

Q: On costs, incentive comp impact and video investments. How incentive comp spread and video investments across?

A: Will Bardeen said Q4 higher expenses from incentive comp due to strong ad performance impacting incentive plans, affecting all expense lines. Video investments are part of disciplined investments positioning for long-term growth.

Q: On advertising and AI. Thoughts on using advertising to manage ARPUs and AI litigation timelines and threats.

A: Meredith Kopit Levien said multi-revenue stream model works, advertising contributing to growth and building funnels for subscription. On AI, see headwinds but strategy of differentiated products makes them resilient, using AI to make work more accessible and build engaged audience.

Q: On single product growth and News Guild contract. Confidence in converting single product users to bundles and comment on News Guild negotiations.

A: Meredith Kopit Levien said confident in converting single product users to bundles with multiple products working in the funnel. On News Guild, have productive relationships, well-prepared to move through contract period.