USA TODAY (TDAY) Earnings Date & Reports

Key Takeaways

• Third-quarter revenue of $519.2 million declined 7.4% year over year, while same-store revenue fell 5.8%.
• Digital revenue reached $249.3 million, or 48.0% of total revenue, as digital-only subscriptions grew for a third consecutive quarter.
• Net loss attributable to USA TODAY Co. was $4.6 million ($0.03 per share), while adjusted EPS of $0.01 topped consensus estimates.
• The company launched a $100 million annualized cost-reduction program and expects meaningful margin expansion in the fourth quarter.
• Its Google ad-tech litigation advanced, with an April 2027 trial date and disclosed damages of $901 million through 2024.
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Earnings Context and Why It Matters

USA TODAY Co. (TDAY), the diversified media and digital marketing company behind the USA TODAY NETWORK, Newsquest in the United Kingdom, and the LocaliQ marketing platform, is navigating a pivotal transition from legacy print toward digital revenue. This quarterly earnings report matters because it measures whether management can offset structural print declines with growth in digital advertising, subscriptions, and marketing services, while preserving cash flow against roughly $953 million in debt. Heading into the report, investors were closely watching audience stabilization, the company's search-driven traffic headwinds, and its progress toward making digital the majority of revenue. The newly announced cost-reduction program and an advancing lawsuit against Google added two high-stakes catalysts to the story.

Reported Results

For the third quarter ended September 30, 2026, USA TODAY Co. reported total revenues of $519.2 million, down 7.4% from $560.8 million a year earlier. Same-store revenue decreased 5.8% year over year, a sequential improvement of 30 basis points from the second quarter. Total digital revenues were $249.3 million, or 48.0% of total revenue.

The company posted a net loss attributable to USA TODAY Co. of $4.6 million, or $0.03 per share, an improvement from the $39.2 million loss a year ago. Adjusted net income was $1.4 million, or roughly $0.01 per share, exceeding the consensus estimate of a $0.05 per-share loss. Total Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for one-time items) was $36.6 million. Cash from operating activities totaled $16.7 million, and free cash flow was $4.3 million. Revenue, however, came in below the consensus estimate of about $538.9 million, reflecting ongoing pressure from changes in consumer search behavior and inflation.

Operationally, digital-only subscription revenue of $46.0 million marked a third straight quarter of growth, with record digital-only average revenue per user (ARPU) of $10.82, up 23% year over year. LocaliQ core platform revenue reached $105.4 million, with core platform ARPU of $2,996, up 6%.

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Market Reaction and Investor Sentiment

Shares of USA TODAY Co. closed modestly higher on the day of the report, reflecting a mixed response to results that beat on adjusted earnings but missed on revenue. Investors appeared to weigh the top-line miss and ongoing search-related pressures against several positive signals: stabilizing audience metrics, record digital ARPU, and the announcement of a $100 million annualized cost-reduction program aimed at lifting profitability and free cash flow in the fourth quarter. Sentiment was also supported by the disclosed $901 million damages calculation in the Google litigation, which does not yet include potential treble damages, and by management's stated intent to repurchase shares opportunistically under its $96.9 million authorization.

Forward Outlook and Key Factors to Monitor

Management updated its full-year 2026 outlook, expecting same-store revenue to decline in the mid-single digits while net income grows versus the prior year. Adjusted EBITDA, operating cash flow, and free cash flow are projected to decline year over year but improve sequentially in the fourth quarter as the cost-reduction program takes effect.

Investors should watch whether digital revenues can cross the 50% threshold of total revenue in 2027, a milestone management is targeting. The trajectory of digital-only subscriptions, direct-sold digital advertising, and LocaliQ's core platform will be central to that effort.

The Google ad-tech case is a key wildcard. With a trial date set for April 5, 2027 and damages of $901 million already disclosed, the outcome—and the possibility of treble damages—could materially affect the company's balance sheet and strategic options. Finally, continued audience stabilization, cost-discipline execution, and any additional share repurchases financed under the amended term loan facility will be closely watched in the quarters ahead.

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