New York Times tops Q3 profit estimates, lowers cost outlook

The New York Times (NYT) said in a regulatory filing on Nov. 4 that its third-quarter adjusted profit came to 68 cents a share, topping the 65 cents consensus estimate. Revenue of $768.54 million was in line with the $774.54 million consensus estimate.

The company's press release shows total revenue rose 9.7% from $700.8 million a year earlier. Operating profit rose 16.4% to $121.9 million.

Here's how the company did:

• Adjusted EPS: 68 cents vs. 59 cents a year earlier, against 65 cents expected
• Diluted EPS: 60 cents vs. 50 cents a year earlier
• Revenue: $768.54 million vs. $700.82 million a year earlier, against $774.54 million expected
• Operating profit: $121.94 million vs. $104.79 million a year earlier

Meredith Kopit Levien, president and chief executive officer, said, “Q3 was another quarter of strong execution and sustained momentum across The Times.” She added that “Subscriber growth was powered by strong engagement and retention across our portfolio.”

Guidance for the fourth quarter

The company expects fourth-quarter digital-only subscription revenue to rise 12% to 15% from a year earlier, and total subscription revenue to rise 9% to 11%.

Digital advertising revenue is now expected to rise high-single-digits to low-double-digits, down from the mid-to-high-teens range it gave on Aug. 5. Total advertising revenue is now expected to rise mid-single-digits, from high-single-to-low-double-digits.

Adjusted operating costs are expected to rise 6% to 8%, down from the 8% to 9% range in the previous release. Affiliate, licensing and other revenue is now expected to rise low-single-to-mid-single-digits, from low-to-mid-single-digits.

For 2026, the company expects pre-tax depreciation and amortization of about $85 million, including $25 million to $30 million of acquired intangible asset amortization. It expects interest income and other, net of $45 million to $50 million, and capital expenditures of $35 million to $40 million.

Subscribers and advertising

Digital-only subscription revenue rose 14.6% to $421.3 million. The company ended the quarter with 13.22 million digital-only subscribers and 13.76 million total subscribers.

Digital-only subscribers rose by about 420,000 during the quarter. Digital-only average revenue per user was $9.93, up 1.4% from a year earlier.

Digital advertising revenue rose 12% to $109.9 million, primarily due to continued marketer demand and growth in advertising supply.

Cash and buybacks

As of Sept. 30, the company had cash and marketable securities of $1.26 billion. Free cash flow for the first nine months of 2026 was $435.8 million, compared with $392.9 million a year earlier.

During the quarter, the company repurchased 1,158,652 shares of its Class A common stock for about $79.1 million. As of Oct. 30, about $146.0 million remained available for repurchases.

The company expects lower cash tax payments of about $60 million for 2026.