USA TODAY (TDAY) Q3 2025 earnings summary

Executive summary

• Achieved a milestone with total debt falling below $1 billion for the first time since the 2019 merger and completed a $100 million cost reduction program.

• Digital revenues reached 47% of total company revenues, with digital advertising and subscriptions achieving record performance and expectations to surpass 50% in 2026.

• Announced new AI licensing deals with Perplexity and Microsoft, expanding monetization opportunities.

• Positive legal development in the Google antitrust lawsuit, with liability established on key claims.

• Cost control initiatives led to lower operating and SG&A expenses, partially offsetting revenue declines.

Financial highlights

• Q3 2025 total revenues were $560.8 million, down 8.4% year-over-year (6.8% on a same store basis); digital revenues were $262.7 million, representing 46.9% of total revenues.

• Net loss attributable to shareholders was $39.2 million; adjusted net loss was $31.0 million.

• Total Adjusted EBITDA was $57.2 million (10.2% margin), impacted by timing shifts and incremental expenses.

• Free cash flow for Q3 was $4.9 million; $116.4 million in debt repaid year-to-date.

• Cash and cash equivalents stood at $75.2 million at quarter end.

Outlook and guidance

• Expect strong Q4 driven by AI licensing revenue, digital advertising campaigns, and cost reductions.

• Full year 2025 digital revenues expected to decline in low single digits on a same store basis, but to exceed 50% of total revenues in 2026.

• Fourth quarter digital revenues projected to grow in low single digits on a same store basis.

• Project robust year-over-year growth in adjusted EBITDA and 30% growth in free cash flow for the full year.

• Capital expenditures are expected to increase due to investments in technology and products.