NYT Surpasses $2 Billion in Digital Revenue for First Time

Date of Call: Feb 4, 2026

Financials Results

• Revenue: Overall revenue grew approximately 9% year-over-year in 2025.
• EPS: Adjusted diluted EPS in Q4 increased $0.09 to $0.89, primarily driven by higher operating profit.
• Operating Margin: AOP margin expanded 50 basis points to approximately 24% in Q4. For the full year, AOP margin expanded by approximately 190 basis points to 19.5%.

Guidance:

• Digital-only subscription revenues expected to increase 14% to 17% in Q1 2026.
• Total subscription revenues expected to increase 9% to 11% in Q1 2026.
• Digital advertising revenues expected to increase high teens to low 20s in Q1 2026.
• Total advertising revenues expected to increase low double digits in Q1 2026.
• Affiliate, licensing and other revenues expected to increase high single digits in Q1 2026.
• Adjusted operating costs expected to increase 8% to 9% in Q1 2026.
• For full year 2026, expects another year of healthy growth in revenues and AOP, margin expansion and strong free cash flow generation.

Business Commentary:

Subscriber Growth and Digital Revenue:

• The New York Times Company added 1.4 million net new digital subscribers in 2025, bringing the total to 12.8 million.
• Digital subscription revenues grew 14% in Q4, contributing to more than $2 billion in total digital revenues for the first time.
• The growth was driven by strong execution of their long-term strategy, increased engagement across the portfolio, and successful monetization of audiences.

Advertising Revenue and Performance:

• Digital advertising revenues increased 25% and total advertising increased 16% in Q4, with digital advertising surpassing expectations.
• The growth was due to strong marketer demand, new advertising supply, and effective ad products that perform well, appealing to more marketers as the company scales across multiple spaces.

Cost Management and Investment:

• Adjusted operating costs grew 9.7% in Q4, slightly above the guidance range due to higher expenses associated with incentive compensation and strategic investments.
• The company remains focused on disciplined cost management while making strategic investments, particularly in video journalism and digital product experiences, to sustain healthy revenue growth and margin expansion.

Free Cash Flow and Capital Allocation:

• The company generated approximately $551 million in free cash flow in 2025.
• This was achieved through robust Adjusted Operating Profit (AOP), a capital-efficient model, lower cash taxes, and strategic capital returns, including $165 million in share repurchases and $110 million in dividends.

Sentiment Analysis:

Overall Tone: Positive

• Meredith Kopit Levien stated, '2025 was a great year for The New York Times,' highlighting strong subscriber growth, digital revenue milestones, and margin expansion. She expressed confidence in the strategy: 'We are confident that we can pursue them ambitiously and profitably.' William Bardeen noted, 'We delivered strong results, including another year of healthy revenue growth, AOP growth, margin expansion and strong free cash flow generation.'

Q&A:

• Question from David Karnovsky (JPMorgan Chase & Co): Can you break out the 20% digital ad growth between new supply, products, and engagement, and unpack the drivers for the Q1 adjusted cost guide, including the impact of video?
  Response: Meredith Kopit Levien attributed ad growth to new supply, improved demand from larger deals and broader marketer appeal, and high-performing ad products. William Bardeen explained that the Q1 cost guide reflects higher strategic investments, particularly in video, and ongoing cost efficiency to sustain revenue growth and margin expansion.

• Question from Benjamin Soff (Deutsche Bank AG): What are your latest thoughts on capital allocation and updating shareholder return targets? Also, how do you think about password sharing?
  Response: William Bardeen stated there is no change to the capital allocation strategy, with the top priority being high-return organic investment, followed by returning at least 50% of free cash flow to shareholders over the midterm. Meredith Kopit Levien said password sharing is an opportunity for future consideration, but the current focus is on broad market penetration and growth via initiatives like the successful family plan subscription offering.

• Question from Thomas Yeh (Morgan Stanley): How is video journalism evolving and fitting into investment needs? Also, what's driving strength in non-news single product growth?
  Response: Meredith Kopit Levien described video as a long-term opportunity to establish The Times as a preferred brand for watching news, with scalable formats and increased production. She noted that single product growth is part of the portfolio's strategy, with all products contributing to subscriber growth and audience engagement at different times.

• Question from Kutgun Maral (Evercore ISI Institutional Equities): Can you provide more color on ARPU trends for 2026 and the trajectory of costs?
  Response: William Bardeen explained that ARPU growth fluctuates quarterly based on mix and timing of promotions and price increases, but confidence remains in its trajectory due to added product value and strong engagement. On costs, he emphasized a disciplined approach to manage costs while making strategic investments to sustain revenue growth, AOP growth, and margin expansion.

• Question from Jason Bazinet (Citigroup Inc.): Can you detail the Q4 expense drivers related to incentive comp and video investments?
  Response: William Bardeen clarified that the primary Q4 expense overrun was due to incentive compensation tied to financial outperformance, impacting all expense lines. Underlying this were also the beginnings of ramping video investments for long-term growth.

• Question from Kannan Venkateshwar (Barclays Bank PLC): Can advertising be used to manage ARPU instead of raising prices? Also, what are the time lines and impact of AI-related litigation?
  Response: Meredith Kopit Levien affirmed that the multi-revenue stream model, including advertising, is working well and builds funnels for future subscription growth. On AI, she noted ongoing headwinds but that The Times's differentiated products make it resilient, with AI already being harnessed productively for audience engagement and business efficiency.

• Question from Douglas Arthur (Huber Research Partners): Are you confident that single product growth expands the funnel and can convert to bundle subscriptions? Also, any comment on contract negotiations with the news guild?
  Response: Meredith Kopit Levien and William Bardeen both affirmed that single product growth is effectively expanding the subscription funnel and engaging users, with the entire portfolio working together. Regarding negotiations, Levien stated that The Times has a productive history with unions and is confident in moving through the contract period.

Contradiction Point 1

Strategy and Timing for Addressing Password Sharing

Contradiction on whether to focus on a "carrot" or "stick" approach for password sharing.

Could you share your latest thoughts on capital allocation and shareholder return targets for 2026, as well as your approach to addressing password sharing on your platform? - Benjamin Soff (Deutsche Bank AG)

2025Q4: The focus is currently on penetrating the large market opportunity... The Family Plan is highlighted as a successful 'carrot' approach... A 'stick' approach (password sharing crackdown) is not ruled out for the future. - [Meredith Kopit Levien](CEO)

1) How should we assess the opportunity of video formats, their impact on advertising, and required incremental investments? 2) What is the current stage of the family plan rollout, and is there potential to expand or restrict sharing for non-family plans? - Thomas Yeh (Morgan Stanley)

2025Q3: For the family plan, they are very encouraged by its performance... It has been successfully rolled out in both the bundle and games, and they are excited about both. - [Meredith Kopit Levien](CEO)

Contradiction Point 2

Outlook and Investment Approach for Video Content

Contradiction on the current stage and investment priority for video.

How is the video journalism initiative evolving into a linear-TV-like product, and how does this align with investment needs? What is driving growth in non-news products like Games and Athletic? - Thomas Yeh (Morgan Stanley)

2025Q4: The long-term vision is to establish The Times as a preferred brand for watching news. Current efforts are focused on scaling production... Investment is ramping up to build engagement... - [Meredith Kopit Levien](CEO)

1) How should we assess the opportunity and advertising impact of video formats, and what incremental investments are needed? 2) What is the current rollout stage of the family plan, and is there a strategy to expand or restrict sharing for non-family plans? - Thomas Yeh (Morgan Stanley)

2025Q3: For video, it's a big opportunity in early days... The first priority is driving engagement... They are excited about its role in future growth. - [Meredith Kopit Levien](CEO)

Contradiction Point 3

Ad Growth Drivers and Product Focus

2025Q4 emphasizes broad portfolio and new products; 2025Q2 highlighted specific lifestyle spaces.

How is the 20% digital ad growth attributed to new supply, new products, and engagement? - David Karnovsky (JPMorgan Chase & Co)

2025Q4: The strong ad growth resulted from three factors: 1) Adding more ad supply across the portfolio, 2) Improved demand from marketers due to The Times' scale and offerings, and 3) Effective ad products and targeting tools that drive performance and customer retention. - [Meredith Kopit Levien](CEO)

What factors contributed to the exceptional advertising results? - David Karnovsky (JPMorgan Chase & Co)

2025Q2: The growth is driven by The Times’ position in large, attractive lifestyle spaces like sports and games, a large engaged audience... and a wide suite of high-performing ad products. - [Meredith A. Kopit Levien](CEO)

Contradiction Point 4

Strategy for Managing ARPU Growth and Subscriber Conversion

2025Q4 presents a balanced system; 2025Q2 suggested a more direct, price-focused approach.

Can advertising help manage ARPU by enabling slower price hikes while accelerating subscriber growth? - Kannan Venkateshwar (Barclays Bank PLC)

2025Q4: The multi-revenue stream model is a key advantage. Growth in advertising... works synergistically with subscriptions, building audience funnels and engagement. It's a system where all parts work together to support overall subscriber growth and business value. - [Meredith Kopit Levien](CEO)

How do you set promotional pricing for 6-month vs. 12-month bundles, and what's the frequency of price changes? - Thomas L. Yeh (Morgan Stanley)

2025Q2: There is no change to the promotional strategy. The company uses a 6-month promotion with a 12-month promotional opportunity... Once subscribers are on board, the focus is on deep engagement across products. The company continues to successfully execute price step-ups for bundled and single-product subscribers. - [William Bardeen](CFO)

Contradiction Point 5

Digital-Only Subscriber ARPU Growth Trajectory

Contradiction on the predictability and confidence level in the ARPU growth trend.

What caused the slowdown in digital-only subscriber ARPU growth and what is the 2026 outlook? - Kutgun Maral (Evercore ISI Institutional Equities)

2025Q4: ARPU growth fluctuates quarterly based on... For Q1 2026, confidence is high due to a price increase for a tenured cohort of bundled subscribers... - [William Bardeen](CFO)

Can you provide an update on the news-only subscriber base and revisit your approach to stand-alone product price increases? - Thomas Yeh (Morgan Stanley)

2025Q1: The company is confident in its ARPU trajectory due to product value, strong engagement, and positive pricing step-up performance. - [Will Bardeen](CFO)