The New York Times Company 10-Qquarter ended 2026-06-30

Executive Summary

The New York Times Company’s digital subscription and advertising businesses drove Q2 2026 revenue growth of 11.2%, while print revenue continued to decline. Subscriber growth and higher digital-only revenue per subscriber supported subscriptions; expanded audio and video inventory helped digital advertising, though increased marketing spending limited Q2 GAAP margin improvement. H1 cash generation funded dividends and repurchases without borrowing, but cash taxes are benefiting from a deduction that management expects will largely cease after 2026. For investors, the question is whether digital growth can sustain profit expansion as acquisition spending, print erosion and generative-AI-related costs persist.

Key Financial Highlights

• Revenue mix: Q2 subscription revenue was $538M, including $408M of digital-only revenue, +16.4% Y/Y. Advertising was $149M; digital advertising grew 20.7% to $114M, while print advertising fell 11.1%.
• Earnings quality: H1 operating cash flow rose from $213M to $287M, reflecting higher net income, improved working capital and lower cash taxes. The prior-year period also included ≈$33M of land-sale proceeds in operating cash flow. H1’s effective tax rate fell to 18.9% from 24.6%, partly benefiting from stock-based awards settling in Q1.
• Capital returns: H1 repurchases of $91.8M bought 1.25M Class A shares, while dividends paid totaled $67.6M. Common shares outstanding fell only ≈0.294M, from ≈161.8M to ≈161.5M, as issuance offset much of the buyback; stock-based compensation was $39.3M.
• Liquidity and discrete costs: Cash and cash equivalents plus marketable securities totaled $1.22B; the $400M revolving credit facility had no borrowings. H1 included an increased $9.22M multiemployer pension withdrawal-liability adjustment and $8.84M of generative-AI litigation costs.

Business Developments

NYT ended Q2 with 13.35M total subscribers, including 12.80M digital-only subscribers, up 1.50M Y/Y. Digital-only average revenue per subscriber rose 3.1% to $9.94 as some promotional subscribers moved to higher prices and selected tenured subscribers received price increases. That combination of subscriber and pricing growth is strengthening the digital revenue base as print subscriptions contract.

Management increased promotion and sales staffing: Q2 sales and marketing expense rose 23.6%, faster than revenue. The spending supports subscriber acquisition but raises the hurdle for near-term margin expansion. Digital advertising benefited from marketer demand and more audio and video inventory; Wirecutter referrals and licensing contributed to growth outside subscriptions. NYT now reports one operating segment, consistent with how management evaluates the business.

Risk Assessment

• Digital growth versus acquisition cost: Faster marketing spending could erode the benefit of subscriber and pricing gains if digital subscriber growth slows.
• Platform and advertising dependence: Third-party distribution, changing user behavior and advertiser demand could disrupt audience growth or digital advertising, despite its 20.7% Q2 increase.
• Generative AI and intellectual property: Litigation against Microsoft, OpenAI and Perplexity remains unresolved; costs rose to $8.84M in H1, and outcomes and potential damages are uncertain.
• Print transition: Q2 print advertising fell 11.1% and print subscription revenue declined 0.9%, leaving digital growth to absorb ongoing print erosion and related production and distribution costs.
• Technology and labor obligations: Cybersecurity or privacy disruptions could harm the subscription business, while newsroom compensation and pension or multiemployer-plan costs can pressure margins.

This 10-Q lists no risk factors of its own and refers to the annual report. The risks above come from the rest of this filing. Full list: FY2025 10-K.

Strategic Outlook and Investor Actionables

Management is investing in digital subscriptions, products and advertising inventory while returning cash to shareholders. The opportunity is continued growth in subscribers and revenue per subscriber; the near-term test is whether that growth outpaces acquisition and journalism costs. Management expects FY 2026 cash tax payments to be ≈$60M lower under the domestic research deduction, with most of that benefit not recurring after 2026.

• Digital subscriptions: Monitor digital-only subscriber additions alongside revenue per subscriber; growth in both would support durable subscription revenue gains.
• Profitability: Compare revenue growth with sales and marketing and journalism costs; widening GAAP operating margin would show that digital growth is scaling.
• Cash conversion and dilution: Track operating cash flow after the temporary tax benefit fades, and shares outstanding alongside repurchase spending; buybacks create per-share value only to the extent they exceed issuance.