New York Times Delivers Strong Q1, Outlines Ambitious Q2 Growth Targets

The New York Times Company (NYSE: NYT) has emerged as a beacon of resilience in the media sector, reporting robust first-quarter 2025 results that surpassed both top- and bottom-line expectations. With revenue rising 7.1% year-over-year to $635.9 million and earnings per share (EPS) hitting $0.41—a 25.8% jump from the prior-year period—the publisher is leveraging its digital transformation to drive sustainable growth. These results, paired with ambitious Q2 guidance, underscore the company’s ability to navigate an evolving media landscape while expanding its subscription and advertising engines.

Q1 Highlights: Digital Dominance and Strategic Diversification
The New York Times’ Q1 performance was anchored by its digital subscription growth, which reached 11.6 million users—a 250,000-quarter increase and a 10% year-over-year rise. Digital-only subscriptions grew by 510,000 year-over-year to 11.06 million, narrowly missing analyst estimates but reflecting steady momentum. This growth, coupled with a 14.3% surge in digital subscription revenue to $335 million, highlights the success of bundled offerings like NYT+ and its expansion into non-news verticals such as cooking, games, and The Athletic.

Digital advertising revenue also flourished, up 12.4% to $70.87 million, as the company continues to refine its ad targeting and expand its premium inventory. However, print advertising revenue declined 5.8% to $97.66 million, a trend the company attributes to its strategic shift away from legacy revenue streams. CFO Will Bardeen emphasized that macroeconomic challenges, including tariffs and geopolitical uncertainty, had “immaterial impacts” on operations, with subscription and affiliate revenue proving resilient.

The Q1 results also included a $4.4 million legal expense related to litigation against OpenAI over AI content scraping—a reminder of the risks posed by emerging technologies. Still, this did not meaningfully disrupt the company’s bottom line, with operating profit rising 21.3% to $58.6 million.

Q2 Guidance: Betting on Digital Expansion and Cost Discipline
The company’s Q2 guidance paints an optimistic picture of its growth trajectory. Management expects:
- Digital subscription revenue to grow 13%–16% year-over-year, fueled by its bundle strategy and new content launches.
- Total subscription revenue to rise 8%–10%, reflecting broader adoption of premium bundles.
- Digital advertising revenue to expand in the “high single digits” (6%–9%), outpacing the flat-to-low-single-digit growth projected for total advertising.
- Adjusted operating costs to increase only 5%–6%, underscoring strict cost management.

These targets align with the company’s long-term focus on diversification. CFO Bardeen highlighted plans to boost average revenue per user (ARPU) through pricing step-ups and value-added content, while CEO Meredith Kopit Levien stressed the importance of “premium content bundles” in retaining subscribers.

Stock Performance and Analyst Take
The stock has returned 16.1% over the past month, outperforming the S&P 500’s 10.6% gain, as investors reward the company’s execution. However, NYT currently holds a Zacks Rank #3 (“Hold”) due to mixed near-term earnings estimate revisions. Analysts project $666.25 million in Q2 revenue and $2.08 in annual EPS, suggesting confidence in the company’s ability to sustain its growth trajectory.

Conclusion: A Media Leader with a Clear Path Forward
The New York Times’ Q1 results and Q2 outlook demonstrate a company thriving through disciplined execution and strategic pivots. With digital subscriptions and advertising both showing strong momentum, and costs under control, NYT is well-positioned to capitalize on its premium content strategy. The 7.1% revenue growth and 17% EPS beat reflect not just financial health but a structural shift toward recurring revenue models.

Key metrics to watch in Q2 include whether digital subscription growth hits the high end of its 13%–16% target and whether advertising outperforms expectations in a competitive ad market. The company’s litigation costs and investments in non-news products like The Athletic will also be critical to monitor.

Ultimately, The New York Times’ ability to balance journalism’s core mission with data-driven digital innovation positions it as a standout player in a fragmented media industry. With its stock near 52-week highs and a shareholder-friendly dividend/buyback policy, investors have reason to be optimistic—provided the company continues to deliver on its ambitious growth roadmap.