The New York Times delivered quarterly results that met Wall Street’s revenue expectations and surpassed consensus adjusted profit forecasts, with management attributing performance to robust digital subscription growth and healthy engagement across its product portfolio. CEO Meredith Kopit Levien highlighted the company’s ability to attract new subscribers through both news and lifestyle offerings, as well as the effectiveness of its multi-product bundle strategy. Notably, digital advertising revenue showed its strongest increase in three years, a development management linked to high audience engagement and ongoing expansion of advertising products. As CFO Will Bardeen noted, the company’s cost discipline and operational efficiency also played a key role in supporting margin expansion this quarter.
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The New York Times (NYT) Q1 CY2025 Highlights:
- Revenue: $635.9 million vs analyst estimates of $634.2 million (7.1% year-on-year growth, in line)
- Adjusted EPS: $0.41 vs analyst estimates of $0.34 (19.9% beat)
- Adjusted EBITDA: $92.7 million vs analyst estimates of $87.6 million (14.6% margin, 5.8% beat)
- Operating Margin: 9.2%, up from 8.1% in the same quarter last year
- Subscribers: 11.66 million, up 1.11 million year on year
- Market Capitalization: $9.21 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions The New York Times’s Q1 Earnings Call
- Benjamin Soff (Deutsche Bank) asked about the sources of strength in digital ad revenue and the impact of tariffs. CEO Meredith Kopit Levien said digital ad gains came from diverse categories and broad audience appeal, while tariffs had minimal effect.
- Thomas Yeh (Morgan Stanley) inquired about stability in news-only subscriber attrition and future conversion to bundles. CFO Will Bardeen said reduced attrition reflects the bundle strategy’s success and expects further migration to multiproduct bundles.
- David Karnovsky (JPMorgan) questioned the drivers behind changes in bundle ARPU and engagement trends in video and audio. Bardeen emphasized value-added features and ongoing ARPU growth; Levien noted increased video and audio engagement and expansion of reporter-led multimedia.
- Jason Bazinet (Citi) asked about tactics for transitioning subscribers from promotional to full pricing. Bardeen described a data-driven approach using engagement signals to personalize step-ups, while Levien highlighted improvements in underlying technology.
- Doug Arthur (Huber Research Partners) queried underlying digital ad growth and seasonality in single-product subscriptions. Levien reiterated confidence in ad performance across product lines; Bardeen said quarterly variations are expected but focus remains on long-term engagement and value.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the pace at which digital-only and bundle subscriber additions continue, (2) the roll-out and audience adoption of new video, audio, and game features, and (3) signs that pricing optimization is sustaining ARPU growth without increasing churn. The progress of digital advertising initiatives and cost control will also be important markers.
The New York Times currently trades at $56.54, up from $52.67 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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