USA TODAY (TDAY) investor relations material

Executive summary

• Q2 2026 total revenues were $536.3M, down 8.3% year-over-year, with net income of $9.1M and adjusted net income of $11M, marking the second consecutive quarter of positive net income.

• Digital revenues accounted for 47.4% of total revenues, with digital-only subscription revenues up 6.8% year-over-year and digital-only ARPU reaching $10.47.

• Free cash flow grew 11.2% to $19.6M, and cash provided by operations rose 8.6% to $35.4M.

• Strategic investments in AI partnerships (notably with Palantir), audience engagement, and technology are driving digital growth and future licensing opportunities.

• Cost control initiatives reduced operating expenses by 8% year-over-year, supporting margin expansion.

Financial highlights

• Adjusted EBITDA was $56.9M (10.6% margin), down from $64.2M in Q2 2025; net income was $9.1M.

• Digital revenues were $254.3M, down 4.2% year-over-year; digital-only subscription revenue rose 6.8% to $45.6M.

• Free cash flow was $19.6M, up 11.2% year-over-year.

• Same-store revenues declined 6.1% year-over-year.

• Digital other revenues (AI, licensing, syndication) grew 20.2% to $20.4M.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: expects flat to low single-digit decline in same-store revenues, with digital revenues projected to exceed 50% of total.

• Net income, adjusted EBITDA, operating cash flow, and free cash flow all expected to grow versus prior year.

• No upside from potential Google litigation or DOJ remedies is included in guidance.

• Liquidity is expected to be sufficient for at least the next twelve months.