Gannett's Q2 2025: Unpacking Contradictions in Antitrust Impacts, Revenue Growth, and Digital Advertising

Ad technology antitrust case implications, revenue stability and growth projections, asset sale proceeds and debt paydown, AI platforms and content partnerships, digital advertising growth are the key contradictions discussed in Gannett's latest 2025Q2 earnings call.



Improving Financial Metrics and Cost Reduction:
- Gannett reported total adjusted EBITDA of $64.2 million in Q2, reflecting a 27% sequential increase.
- The company also announced a $100 million annualized expense reduction program, which is expected to lead to improved total adjusted EBITDA in the second half of the year.

Digital Revenue Stabilization:
- Digital advertising revenues grew 4% year-over-year, marking a turnaround from previous declines.
- This improvement was driven by increased page views, programmatic revenue, and enhanced national sales efforts.

Subscriber Strategy and ARPU Improvement:
- Gannett's digital-only subscription ARPU increased both sequentially and year-over-year to $7.79 in Q2.
- The company refined its subscriber acquisition strategy, focusing on high-value subscribers and local subscription models to improve profitability.

AI Content Licensing and Partnerships:
- Gannett announced a strategic AI content licensing agreement with Perplexity, generating both licensing fees and advertising revenue share.
- This partnership represents fair value for Gannett's content and aligns with its strategy to lead through innovation and strengthen competitive positioning.

DMS Business Growth:
- The Digital Marketing Solutions segment saw sequential growth in core platform revenue and segment adjusted EBITDA, with core platform ARPU reaching a record high of $2,830.
- Growth was supported by improvements in search optimization, CRM integration, and new product launches, such as the conversational AI voice agent.