New York Times Co Q2FY26 Results: Revenue up 11%, digital subs reach 13.4 million
- Consolidated revenues grew 11% YoY in Q2FY26
- Digital subscription revenues rose 16.4% to $408 million
- Net new digital subscribers added were 280,000, totaling 13.4 million
- Digital advertising revenues increased 20.7% to $114 million
- Adjusted operating profit grew 16% to approximately $155 million
*this image is generated using AI for illustrative purposes only.
New York Times Co reported consolidated revenues grew 11% in the second quarter of fiscal year 2026, driven by a 16% increase in digital subscription revenues. The company added 280,000 net new digital subscribers, bringing the total base to 13.4 million.
Digital advertising revenues rose 21% to $114 million, exceeding management expectations. Total advertising revenues increased 11.3% to $149 million. Adjusted operating profit (AOP) grew 16% to approximately $155 million, while adjusted diluted EPS rose 19% to $0.69.
Key financial metrics
| Metric | Q2FY26 | Change YoY |
|---|---|---|
| Consolidated Revenue | Not disclosed absolute | +11% |
| Digital Subscription Revenue | $408 million | +16.4% |
| Total Subscription Revenue | $538 million | +11.7% |
| Digital Advertising Revenue | $114 million | +20.7% |
| Adjusted Operating Profit | $155 million | +16% |
| Adjusted Diluted EPS | $0.69 | +19% |
Strategic drivers and guidance
The growth was supported by strong engagement across news, sports, cooking, and games. The Athletic recorded its largest audiences ever during the World Cup, contributing to subscriber additions. Management highlighted investments in video journalism as a key long-term strategy, noting that video currently plays a minor role in advertising revenue but is expected to scale.
For the third quarter of FY26, the company guided for:
- Digital-only subscription revenue growth of 12% to 15%
- Digital advertising revenue growth in the mid to high teens
- Adjusted operating costs increase of 8% to 9%
What the numbers show
A divergence exists between revenue outperformance and cost guidance. While Q2 adjusted operating costs grew 10%, exceeding the 8-9% guidance range due to variable compensation tied to financial beats, Q3 cost guidance remains at 8-9%. This suggests management anticipates normalizing variable expenses despite continued double-digit revenue growth projections, indicating confidence in operational leverage returning to planned levels.
Free cash flow for the first half of FY26 stood at approximately $266 million, with $160 million returned to shareholders via buybacks and dividends. Management noted that H1 free cash flow benefited from seasonal working capital timing, which may reverse in the second half.
How will the post-World Cup normalization of The Athletic's audience impact Q3 subscriber retention rates and churn metrics?
What specific milestones or revenue thresholds must video journalism hit to materially shift the digital advertising mix in FY2027?
To what extent will the anticipated reversal of H1 working capital benefits constrain second-half free cash flow generation?
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