USA TODAY Q1 revenue falls slightly more than estimated

Overview

• US media and digital marketing firm's Q1 revenue declined 4% and slightly missed analyst expectations

• Adjusted net income and EPS rose from prior year, driven by digital revenue growth

• Q1 adjusted EBITDA increased 45% yr/yr, with margin improving to 13.3%

Outlook

• USA TODAY Co. expects 2026 total revenues to be flat to down low single digits same store

• Company sees 2026 total digital revenues growing and making up over 50% of total revenues

• Net income, adjusted EBITDA, and free cash flow for 2026 expected to grow versus prior year

Result Drivers

• DIGITAL REVENUE GROWTH - Co said same store digital revenue grew 5.2% yr/yr, helping improve overall revenue trend

• DIGITAL SUBSCRIPTIONS - Digital-only subscription and Digital Other revenues were primary drivers of improved digital revenue growth and overall same store revenue trend

• AI CONTENT LICENSING INITIATIVES - Co continues to position for AI content licensing growth through content creation, digitization, and content protection measures

Company press release: ID:nBw7Y2FVa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer publishing peer group is "buy"

• Wall Street's median 12-month price target for USA TODAY Co Inc is $9.00, about 23.6% above its April 29 closing price of $7.28

• The stock recently traded at 80 times the next 12-month earnings vs. a P/E of 31 three months ago

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