The New York Times Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues increased 9.7% year-over-year to $768.5 million.
• Digital-only subscription revenues grew 14.6% year-over-year to $421.3 million.
• Digital advertising revenues increased 12.0% year-over-year to $109.9 million.
• Affiliate, licensing, and other revenues rose 6.2% year-over-year to $78.4 million.
• Operating profit increased 16.4% year-over-year to $121.9 million, with an operating profit margin of 15.9%.
• Adjusted operating profit increased 13.9% year-over-year to $149.6 million, with an adjusted operating profit margin of 19.5%.
• Diluted earnings per share (EPS) was $0.60, an increase of $0.10 year-over-year.
• Adjusted diluted EPS was $0.68, an increase of $0.09 year-over-year.
• Total operating costs increased 8.5% year-over-year to $646.6 million; adjusted operating costs increased 8.7% year-over-year to $618.9 million.
• Net cash provided by operating activities for the first nine months of 2026 was $462.2 million, compared to $420.3 million in the same period of 2025.
• Free cash flow for the first nine months of 2026 was $435.8 million, compared to $392.9 million in the same period of 2025.
• Cash and marketable securities totaled $1.26 billion as of September 30, 2026.
• The company had no outstanding debt or borrowings under its $400 million unsecured revolving line of credit as of September 30, 2026.

Guidance and Future Outlook:

• Fourth quarter 2026 digital-only subscription revenue is expected to increase 12-15% year-over-year.
• Fourth quarter 2026 total subscription revenue is expected to increase 9-11% year-over-year.
• Fourth quarter 2026 digital advertising revenue is expected to increase high-single-to-low-double-digits year-over-year.
• Fourth quarter 2026 total advertising revenue is expected to increase mid-single-digits year-over-year.
• Fourth quarter 2026 affiliate, licensing, and other revenue is expected to increase low-single-to-mid-single-digits year-over-year.
• Fourth quarter 2026 adjusted operating costs are expected to increase 6-8% year-over-year.
• For the full year 2026, depreciation and amortization is expected to be approximately $85 million.
• For the full year 2026, interest income and other, net is expected to be approximately $45-$50 million.
• For the full year 2026, capital expenditures are expected to be approximately $35-$40 million.
• The company expects lower cash tax payments of approximately $60 million for fiscal 2026 due to the One Big Beautiful Bill Act, noting this benefit is not expected to recur beyond 2026.

Business Segments and Product Lines:

• Digital-only subscribers reached 13.22 million as of September 30, 2026, representing a net addition of 420,000 subscribers in the quarter.
• Total subscribers reached 13.76 million as of September 30, 2026.
• Digital-only average revenue per user (ARPU) increased 1.4% year-over-year to $9.93.
• Print subscription revenues decreased 0.7% year-over-year to $126.3 million.
• Print advertising revenues decreased 4.3% year-over-year to $32.7 million.
• Cost of revenue increased 7.0% year-over-year to $373.5 million, driven by higher journalism compensation, digital content delivery, and subscriber servicing costs.
• Sales and marketing costs increased 12.5% year-over-year to $89.5 million.
• Product development costs increased 7.9% year-over-year to $72.3 million.
• General and administrative costs increased 12.7% year-over-year to $86.4 million.

Market and Competitive Landscape:

• Digital advertising growth was driven by continued marketer demand and growth in advertising supply.
• Affiliate, licensing, and other revenue growth was driven by higher licensing and Wirecutter affiliate referral revenues.
• The company highlighted the enduring advantages of its multi-revenue stream model and essential subscription strategy in an evolving information ecosystem.

Risks and Challenges:

• Generative AI Litigation Costs of $3.8 million were recorded in the third quarter of 2026.
• Operating costs increased due to higher compensation and benefits, general and administrative costs, and marketing expenses.
• Print subscription and advertising revenues declined year-over-year.
• The company noted that the cash tax benefit from the One Big Beautiful Bill Act is not expected to recur beyond fiscal 2026.

Management Commentary and Tone:

• Meredith Kopit Levien, President and CEO, described Q3 as a quarter of "strong execution and sustained momentum."
• Management stated that subscriber growth was powered by strong engagement and retention across the portfolio.
• The CEO emphasized the company's strategy of human-made journalism and product experiences that people seek out directly.
• Management noted the company generated healthy free cash flow while continuing to invest in growth areas like video.

Other Key Points:

• The company repurchased 1,158,652 shares of Class A Common Stock for approximately $79.1 million during the quarter.
• As of October 30, 2026, approximately $146.0 million remained available for share repurchases.
• Capital expenditures totaled approximately $4 million in the third quarter of 2026.
• The company recorded a $3.8 million pre-tax charge for Generative AI Litigation Costs in Q3 2026, classified as a special item.
• The company recorded a $3.5 million charge related to an impairment of a non-marketable equity investment in Q3 2025.
• The company recorded a $9.2 million charge related to withdrawal from a multiemployer pension plan in Q2 2026.
• Net cash provided by operating activities in the first nine months of 2025 included $33 million in proceeds from the sale of excess land in College Point, N.Y.