USA TODAY (TDAY) investor relations material

Strategic priorities and business transformation

• Rebranded from Gannett to USA TODAY Co., leveraging a well-known brand to enhance digital positioning and attract new advertisers.

• Focus shifted from audience growth to deepening engagement and monetization, using data and AI to tailor content and revenue strategies.

• Diversified digital revenue streams include advertising, affiliate/commerce, subscriptions, licensing, and B2B marketing services.

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

• Nearing inflection points: over 50% of revenue from digital sources and sustainable total revenue growth.

Financial performance and outlook

• Digital revenue reached 48% of total in Q1, up from 45% last year, with 50% expected by year-end.

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

• EBITDA has grown three of the last four years; free cash flow has grown four consecutive years, with double-digit growth expected again.

• 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 maintaining a disciplined balance sheet.

Digital subscription and product innovation

• Digital subscription revenue growth driven primarily by a 40% year-over-year increase in ARPU in Q1.

• Subscriber base stabilizing, with improved retention and engagement from new stacked product offerings.

• Continued ARPU growth expected, with volume growth becoming a larger contributor over time.