USA TODAY (TDAY) investor relations material

Executive summary

• Q1 2026 marked the strongest start in several years, with net income of $19.9 million, up $27.2 million year-over-year, and Total Adjusted EBITDA rising 44.7% to $73.1 million, driven by digital revenue growth and operational execution.

• Digital revenues reached $261.9 million, accounting for 48% of total revenues, with digital-only ARPU up 48% year-over-year to $10.80.

• Same-store revenue declines narrowed to 1.8% year-over-year, the best performance in four years.

• AI partnership agreements and licensing deals contributed notably to results, with expectations for continued impact.

• Average monthly unique visitors reached 180 million, including 1.46 million digital-only paid subscriptions.

Financial highlights

• Total revenues were $548.5 million, down 4% year-over-year; digital revenues grew 5.2% on a same-store basis to $261.9 million.

• Adjusted EBITDA rose 44.7% to $73.1 million, with margin expanding to 13.3% from 8.8% a year ago.

• Net income was $19.9 million, up $27.2 million year-over-year, reversing a prior-year loss.

• Free cash flow was $6.4 million; cash and cash equivalents at quarter-end were $85.2 million.

• Digital-only subscription revenue increased 6.2% to $45.9 million, with ARPU up 48% to $10.80.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: total revenues expected flat to down low single digits on a same-store basis.

• Digital revenues projected to surpass 50% of total revenues in 2026.

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

• Q2 revenue and same-store trends expected to remain in line with Q1, with ongoing digital revenue growth.

• Capital expenditures for the remainder of 2026 projected at $46 million, mainly for digital and technology investments.