The New York Times 2025 Q1 Earnings Strong Performance as Net Income Rises 22.6%

The New York Times reported its fiscal 2025 Q1 earnings on May 7, 2025. The company's results surpassed analysts' expectations, driven by a notable 22.6% increase in net income. Looking ahead, The New York Times maintains a positive outlook, anticipating continued growth in digital subscriptions and advertising. With plans to enhance revenue streams and increase average revenue per user, the company aims to sustain its momentum and deliver ongoing profitability.

Revenue
The total revenue of The New York Times increased by 7.4% to $572.33 million in 2025 Q1, up from $532.72 million in 2024 Q1.

Earnings/Net Income
The New York Times's EPS rose 20.0% to $0.30 in 2025 Q1 from $0.25 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $49.55 million in 2025 Q1, marking 22.6% growth from $40.42 million in 2024 Q1. The EPS performance indicates a strong financial position.

Price Action
The stock price of The New York Times has edged up 1.06% during the latest trading day, has edged up 1.11% during the most recent full trading week, and has jumped 10.98% month-to-date.

Post-Earnings Price Action Review
Over the past five years, purchasing The New York Times shares after a quarter-over-quarter revenue drop and holding them for 30 days has not been profitable. The strategy resulted in an average return of -11.58%, significantly trailing the benchmark return of 51.97%. This underperformance translates to an excess return of -63.55% and a compound annual growth rate (CAGR) of -2.61%, indicating sustained losses. The strategy's Sharpe ratio was -0.26, reflecting negative risk-adjusted returns. With a maximum drawdown of -25.07% and a volatility of 10.08%, the approach carried substantial risks and losses. Investors following this strategy would have experienced significant financial setbacks compared to the broader market performance.

CEO Commentary
Meredith Kopit Levien, President and Chief Executive Officer of The New York Times Company, emphasized the strong start to the year reflected in the first-quarter results. She noted that the company's strategy is yielding positive outcomes, evidenced by growth amidst economic and geopolitical uncertainties. Levien highlighted their diverse portfolio, which includes world-class news coverage and leading lifestyle products, alongside multiple revenue streams from subscriptions, advertising, and licensing. She expressed confidence in the company's trajectory towards becoming a larger and more profitable entity, supported by significant free cash flow and a robust balance sheet.

Guidance
The New York Times Company anticipates continued growth, supported by the strong demand for digital subscriptions and advertising. The company expects to sustain its momentum in digital subscription revenue and further increases in average revenue per user (ARPU) as subscribers transition to higher pricing tiers. With a focus on enhancing its diverse revenue streams, the company is optimistic about its ability to navigate economic challenges and capitalize on market opportunities, aiming for ongoing profitability and shareholder value enhancement in the coming quarters.

Additional News
In recent weeks, The New York Times has not reported any significant M&A activity or changes in its executive team. However, the company has been in the spotlight for its achievement in journalism, winning four Pulitzer Prizes in 2025, highlighting its excellence in reporting and editorial strength. These recognitions further solidify The New York Times' reputation as a leading global news organization. The awards underscore the company's commitment to impactful journalism, which continues to be a key driver of its brand and business model amidst an evolving media landscape.