USA TODAY Co. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues were $536.3 million, a decrease of 8.3% year-over-year and 6.1% on a same-store basis.
• Total digital revenues were $254.3 million, representing 47.4% of total revenues.
• Net income attributable to USA TODAY Co. was $9.1 million, marking the second consecutive quarter of positive net income.
• Total Adjusted EBITDA was $56.9 million.
• Cash provided by operating activities was $35.4 million.
• Free cash flow was $19.6 million, an increase of approximately 11% year-over-year.
• Operating expenses were reduced by approximately 8% year-over-year.
• Adjusted net income attributable to USA TODAY Co. was $11.0 million.
• First lien net leverage was 2.3x, a decrease of 14% year-over-year.

Guidance and Future Outlook

• The Company reiterates its full-year 2026 business outlook.
• Full-year 2026 total revenues are expected to be flat to down in the low single digits on a same-store basis.
• Full-year 2026 total digital revenues are expected to grow versus the prior year on a same-store basis and make up 50%+ of total revenues.
• Full-year 2026 net income attributable to USA TODAY Co. is expected to grow versus the prior year.
• Full-year 2026 Total Adjusted EBITDA is expected to grow versus the prior year.
• Full-year 2026 cash provided by operating activities is expected to grow double-digits versus the prior year.
• Full-year 2026 free cash flow is expected to grow double-digits versus the prior year.

Business Segments and Product Lines

• Digital-only subscription revenues grew year-over-year for the second consecutive quarter.
• Digital-only ARPU reached a record high.
• Digital other revenues grew year-over-year, with expectations to continue expanding as the portfolio of content licensing partners broadens and commerce opportunities grow.
• LocaliQ segment core platform revenues were $106.3 million.
• LocaliQ segment core platform revenues decreased 9% year-over-year, while core platform ARPU increased 3% to $2,908.
• USA TODAY Media digital-only ARPU increased 39% year-over-year to $11.03.
• Newsquest digital-only ARPU decreased 5% year-over-year to $5.70.
• Total USA TODAY Co. digital-only paid subscriptions were 1,442 thousand, a 16% decrease year-over-year.
• Newsquest digital-only paid subscriptions increased 23% year-over-year to 155 thousand.
• USA TODAY Media digital-only paid subscriptions decreased 19% year-over-year to 1,287 thousand.
• Segment Adjusted EBITDA for USA TODAY Media was $42.0 million with a margin of 10.6%.
• Segment Adjusted EBITDA for Newsquest was $14.3 million with a margin of 24.2%.
• Segment Adjusted EBITDA for LocaliQ was $13.2 million with a margin of 12.4%.

Market and Competitive Landscape

• Average monthly unique visitors totaled 158 million, with approximately 107 million from the U.S. media network and 51 million from U.K. digital properties.
• Consumer discovery is evolving beyond traditional search, prompting expansion across social, video, and newsletters.
• Investments in technologies like Palantir are being utilized to better understand and monetize the audience.
• The Company is strengthening first-party audience capabilities to build a more diversified and resilient business.

Risks and Challenges

• Quarterly results may fluctuate as the Company executes its strategy.
• The Company is navigating the evolution of consumer discovery beyond traditional search.
• The outlook does not factor in the impact of any possible future acquisitions or dispositions.
• Actual results may vary from estimates due to a number of risks and uncertainties beyond the Company's control.

Management Commentary and Tone

• Michael Reed, Chairman and CEO, stated the second quarter reflected continued progress against the long-term strategy and reinforced confidence in the full-year outlook.
• Management expressed confidence in the steps taken to position the Company for sustainable long-term revenue growth, free cash flow growth, and margin expansion.
• Management believes the Company is getting close to crossing a revenue inflection point.
• The long-term business plan remains intact, supporting a strong operating foundation on a large and engaged audience.
• Management expects data and signals to drive greatly improved monetization as the Company leverages audience intelligence.

Other Key Points

• Cash and cash equivalents were $86.7 million as of June 30, 2026.
• Total debt principal outstanding was $970.5 million, including $722.7 million in first lien debt.
• The Company delivered positive net income for the second consecutive quarter.
• Deferred revenue was $104.5 million as of June 30, 2026.
• The Company is expanding its reach across social, video, and newsletters while strengthening first-party audience capabilities.
• The Company is broadening its portfolio of content licensing partners to grow digital other revenues.