USA TODAY (TDAY) investor relations material

Digital transformation and revenue growth

• Digital revenue reached 47% in Q4 and is expected to surpass 50% by 2026, marking a key inflection point for growth.

• B2C strategy focuses on increasing ARPU through advertising, subscriptions, and commerce, with new on-platform commerce initiatives being explored.

• B2B growth is driven by content syndication, AI licensing, and DMS marketing solutions, with DMS expected to contribute to growth by late 2026.

• Digital subscription strategy shifted from high-volume promotions to targeting high-lifetime-value customers, resulting in lower churn and higher ARPU.

• New monetization models include registration and pay-per-article, improving engagement and revenue per user.

AI partnerships and industry positioning

• Significant partnerships with Amazon, Microsoft, Meta, and Perplexity have been secured, with accelerated deal closures in 2025 and more growth expected in 2026.

• Deals are structured as short-term to allow flexibility as tech partners' business models evolve.

• Licensing content to AI chatbots is prioritized, while non-licensed bots are blocked to protect content value.

• Direct and social referral traffic has grown, offsetting minimal declines in search traffic, unlike industry peers.

Advertising and brand strategy

• Enhanced data collection enables premium and video advertising, which command higher CPMs.

• Rebranding from Gannett to USA TODAY Co. has improved digital perception and attracted over 30 new advertising brands for 2026.

• 99% of the audience now accesses content digitally, supporting the digital-first narrative.