USA Today Q2 Earnings Call Highlights

Revenue declined but profitability and cash flow improved: Second-quarter revenue fell 8.3% year over year to $536.3 million, while net income reached $9.1 million and free cash flow rose 11.2% to $19.6 million. The company reaffirmed its full-year outlook. Digital subscriptions and other revenue offset advertising weakness: Digital advertising declined 9.2%, but digital-only subscription revenue increased 6.8%, with record average revenue per user, and digital other revenue grew 20.2% amid expanding AI licensing and syndication opportunities. Management is shifting toward first-party audiences and AI-driven monetization: USA Today is emphasizing social, video, newsletters and direct reader relationships as search referrals weaken. Its Palantir data initiative and DeeperDive AI tool are intended to improve personalization, conversions, engagement and revenue per user, though no Palantir benefit is included in current guidance. USA Today's Digital Revival Is Gaining Steam, But With Plenty of Risk USA Today NYSE: TDAY reported second-quarter 2026 revenue of $536.3 million, down 8.3% from a year earlier, as lower digital advertising revenue and quarter-to-quarter variability in content licensing offset gains in digital-only subscriptions and other digital revenue streams. The company generated $19.6 million in free cash flow during the quarter, up 11.2% year over year, and posted net income of $9.1 million, its second consecutive profitable quarter. Adjusted EBITDA was $56.9 million, down from the prior-year period, while the adjusted EBITDA margin was 10.6%. Digital subscriptions and licensing offset advertising pressure Total digital revenue was $254.3 million, down 4.2% year over year and representing 47.4% of total revenue. Digital advertising revenue declined 9.2%, which Chief Financial Officer Trisha Gosser attributed to lower page views, the loss of a programmatic advertising partner and a platform policy change affecting a sponsored-links partner. Gosser said the three factors had a roughly similar year-over-year effect on digital advertising. Still, she noted that premium sales on the company’s platform increased from a year ago and revenue per thousand impressions improved during the quarter. Digital-only subscription revenue rose 6.8% to $45.6 million, marking the second consecutive quarter of year-over-year growth. Digital-only average revenue per user reached a record $10.47, up 34.4% from a year earlier. The company said subscriber volume declines moderated further and its start-to-stop ratio improved sequentially. Kristin Roberts, president of USA TODAY Media, said the company’s subscription strategy has emphasized subscriber quality, more consistent offers and less reliance on heavily discounted subscriptions. She said ARPU gains were not solely driven by broad price increases and reflected a more valuable subscriber mix. Digital other revenue, which includes AI partnerships, content licensing and syndication, climbed 20.2% to $20.4 million. Reed said the company expects to expand its portfolio of AI licensing partners and is working to format content in machine-readable ways to support both existing and future agreements. “We do see more AI licensing deals coming this year,” Reed said during the question-and-answer session, while adding that the company would not provide.