USA TODAY (TDAY) investor relations material

Strategic priorities and business transformation

• Rebranded from Gannett to USA TODAY Co. to strengthen digital positioning and brand recognition, leading to the addition of 30 new brands to the national advertising platform.

• Shifted focus from audience growth to deepening engagement and monetization, leveraging data and AI to tailor content and revenue strategies.

• Diversified digital revenue streams include advertising, affiliate and commerce, subscriptions, content licensing, and digital marketing services.

• Key value drivers are multiple expansion, profitability growth, and balance sheet improvement through de-leveraging.

• Targeting over 50% of total revenue from digital sources and sustainable total revenue growth as print declines.

Financial performance and inflection points

• Digital revenue reached 48% of total revenue in Q1, up from 45% last year, with the 50% milestone expected later this year.

• Same-store revenue declines have narrowed, with Q1 down 1.8%, the best performance in four years.

• EBITDA has grown in three of the last four years, and free cash flow has grown for four consecutive years, with double-digit growth expected again this year.

• First lien net leverage reduced to 2.3x in Q1, targeting 2.0x by year-end.

• Capital allocation prioritizes debt reduction, targeted investments in growth areas, and ongoing balance sheet strengthening.

Digital subscription and product innovation

• Digital subscription revenue growth is driven primarily by a 40% year-over-year increase in ARPU in Q1, with further pricing headroom anticipated.

• Subscriber base is stabilizing, with parity between starts and stops, and sequential revenue growth expected to continue.

• Introduction of stacked products is increasing engagement, retention, and revenue, with further potential as adoption grows.