New York Times Q3 Revenue Rises 9.7% on Digital Subscription Growth

The New York Times Company (NYSE: NYT) reported higher third-quarter revenue and profit as continued digital subscriber growth and increased digital-only subscription revenue outweighed declines in print subscriptions and print advertising.

Revenue rose 9.7% year over year to $768.5 million in the quarter ended in 2026, while GAAP operating profit increased 16.4% to $121.9 million. Operating margin expanded to 15.9% from 15.0% a year earlier. Diluted earnings per share rose 20% to $0.60.

On an adjusted basis, operating profit increased 13.9% to $149.6 million, and adjusted operating margin widened by 80 basis points to 19.5%. Adjusted diluted earnings per share was $0.68, up from $0.59 in the prior-year quarter.

Digital subscriptions remain the primary growth driver

Total subscription revenue increased 10.7% to $548 million, supported by a 14.6% rise in digital-only subscription revenue to $421 million. Print subscription revenue declined 0.7% to $126 million.

The company added approximately 420,000 net digital-only subscribers during the quarter, compared with 280,000 in the second quarter, lifting its digital-only subscriber base to 13.22 million. Including print, total subscribers reached 13.76 million, up from 12.33 million a year earlier.

Digital-only average revenue per user, measured over a 28-day billing cycle, increased 1.4% year over year to $9.93. The combination of subscriber additions and higher ARPU supported the increase in digital-only subscription revenue.

Digital advertising offsets print weakness

Total advertising revenue grew 7.8% to $143 million. Digital advertising revenue rose 12.0% to $110 million, which the company attributed primarily to continued marketer demand and growth in advertising supply. Print advertising revenue fell 4.3% to $33 million.

Digital advertising growth was below the company’s prior expectation for a mid- to high-teens percentage increase, while total advertising growth was below its high-single- to low-double-digit guidance range. Subscription revenue and adjusted operating-cost growth were within their respective guidance ranges.

Affiliate, licensing and other revenue increased 6.2% to $78 million. Higher licensing revenue and Wirecutter affiliate referral revenue more than offset the effect of a partner marketing promotion shifting to a different period.

Costs rise alongside investment in journalism

Adjusted operating costs increased 8.7% to $618.9 million. The company said the increase largely reflected higher compensation and benefits expenses, primarily related to journalism, as well as higher general and administrative, marketing and promotion costs.

Total GAAP operating costs rose 8.5% to $646.6 million. Third-quarter results included $3.8 million of generative artificial intelligence litigation costs, up from $2.4 million a year earlier. Management treats these expenses as a special item because it views the related proceedings as discrete and unusual rather than representative of ongoing operating performance.

Free cash flow for the 12 months ended Sept. 30 was $593.4 million, compared with $536.5 million for the corresponding period a year earlier. The company aims to return at least 50% of free cash flow to shareholders over the medium term.

The presentation noted that fiscal 2026 cash flow is expected to benefit from approximately $60 million of lower cash tax payments related to the One Big Beautiful Bill Act. The company does not expect most of that benefit to recur beyond fiscal 2026.

Fourth-quarter outlook

For the fourth quarter of 2026, The New York Times Company expects digital-only subscription revenue to increase 12% to 15% year over year and total subscription revenue to rise 9% to 11%.

Management projects digital advertising revenue growth in the high-single- to low-double-digit percentage range, with total advertising revenue expected to increase by a mid-single-digit percentage. Affiliate, licensing and other revenue is expected to rise at a low- to mid-single-digit rate. Adjusted operating costs are forecast to increase 6% to 8%.

For the full year, the company expects depreciation and amortization of approximately $85 million, including $25 million to $30 million of acquired intangible-asset amortization. It also projects interest income and other, net, of about $45 million to $50 million and capital expenditures of approximately $35 million to $40 million.

The company identified competition, its ability to expand and monetize its subscriber base, reliance on third-party platforms, changing advertising conditions and generative AI-related risks among the factors that could affect future results. Other uncertainties include investments in products and infrastructure, printing and distribution costs, regulation, litigation, cybersecurity, labor matters and the company’s ability to meet its guidance and targets.