The New York Times Q2 Earnings Beat Estimates as Digital Ads Rise

NYT's Subscription Business Remains Strong

Total subscription revenues increased 11.7% year over year to $537.9 million in the reported quarter. Subscription revenues from digital-only products rose 16.4% to $407.9 million, benefiting from growth in digital-only subscribers and higher ARPU. Print subscription revenues declined 0.8% to $130 million due to lower single-copy and domestic home-delivery revenues.

The company ended the quarter with approximately 13.35 million total subscribers, including 12.80 million digital-only subscribers. Digital-only subscribers increased by approximately 1.5 million from the prior-year quarter. During the second quarter, NYT added approximately 280,000 net digital-only subscribers, which moderated from 310,000 in the first quarter of 2026.

Digital-only ARPU jumped 3.1% year over year to $9.94, primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and price increases for certain tenured subscribers. 

Management expects third-quarter 2026 digital-only subscription revenues to increase 12-15% year over year, while total subscription revenues are projected to grow 9-11%.

NYT's Digital Advertising Continues to Drive Growth

Total advertising revenues increased 11.3% year over year to $149.1 million. Digital advertising revenues jumped 20.7% to $114 million, benefiting from strong marketer demand and continued growth in advertising supply. Print advertising revenues declined 11.1% year over year to $35.2 million.

Affiliate, licensing and other revenues improved 7.1% year over year to $75.5 million, primarily driven by higher Wirecutter affiliate referral revenues, which benefited from a shift in the timing of a marketing promotion by one of the company's partners. 

For the third quarter, NYT expects digital advertising revenues to increase at a mid-to-high-teens rate, while total advertising revenues are projected to grow at a high-single- to low-double-digit pace. Affiliate, licensing and other revenues are expected to rise at a low-to-mid-single-digit rate.

NYT’s Operating Margin Improves

Adjusted operating costs increased 10% year over year to $607.2 million, mainly due to higher compensation and benefits expenses related to journalism, as well as increased marketing and promotion costs.

Despite elevated investments, NYT delivered improved profitability. Adjusted operating profit rose 16.1% year over year to $155.3 million, while adjusted operating profit margin expanded 90 basis points to 20.4%.

Management expects adjusted operating costs to increase 8-9% in the third quarter as it continues investing in journalism, product innovation and audience growth initiatives.

NYT's Financial Position Remains Healthy

The New York Times ended the quarter with cash and marketable securities of $1.22 billion, up from $1.17 billion at the end of 2025. The company remained debt-free, with no borrowings outstanding under its $400 million revolving credit facility.

Net cash provided by operating activities totaled $286.5 million during the first six months of 2026, while free cash flow reached $265.7 million.

During the quarter, NYT repurchased 473,691 Class A shares for approximately $35.4 million. As of July 31, 2026, approximately $239.7 million remained available under the company's share repurchase authorization.

Capital expenditures were approximately $10 million in the quarter. Management reaffirmed expectations for 2026 capital expenditures of approximately $35-$45 million.

Final Words on NYT

The New York Times delivered another solid quarter, beating both earnings and revenue expectations as its subscription-led strategy continued to gain traction. Strong digital subscription growth, higher ARPU, robust digital advertising demand and healthy affiliate revenues helped drive double-digit revenue growth and margin expansion.

With more than 13 million subscribers, a debt-free balance sheet, healthy cash generation and continued investment in journalism, video and digital products, NYT appears well-positioned to sustain long-term growth while executing against its subscription-first strategy.

We note that shares of this Zacks Rank #3 (Hold) company have fallen 18.3% over the past three months compared with the industry’s decline of 16.1%.

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The Zacks Consensus Estimate for Compass’ current financial-year sales and EPS implies growth of 99.7% and 320%, respectively, from the year-ago period’s actuals.

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The Zacks Consensus Estimate for Arista Networks’ current financial-year sales and EPS suggests growth of 28.7% and 22.2%, respectively, from the year-ago period’s actuals.

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