USA TODAY (TDAY) Q4 2024 earnings summary

Executive summary

• Achieved significant progress in 2024, with improvements in same-store revenue trends, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow.

• Digital transformation advanced, with digital revenues surpassing $1.1 billion for 2024, rising to over 45% of total revenue, and strong digital audience growth to 200 million monthly unique visitors, up 7% year-over-year.

• Strategic asset sales and debt refinancing improved capital structure, reduced future dilution, and contributed to significant net income improvement.

• Met or exceeded 2024 expectations for total revenue, Adjusted EBITDA, free cash flow, and net income, reaffirming confidence in 2025 and 2026 guidance.

• 2025 expected to be a pivotal year, targeting inflection to positive revenue growth and further digital expansion.

Financial highlights

• Q4 2024 total operating revenues were $621.3 million, down 7.2% year-over-year, impacted by asset sales and shutdowns; same store revenues decreased 5.5%.

• Q4 Adjusted EBITDA was $78.2 million, up 5.5% year-over-year, with margin improving to 12.6%.

• Q4 net income attributable to Gannett was $64.3 million; Adjusted Net Income was $38.3 million, both showing significant year-over-year improvement.

• Full-year 2024 Free Cash Flow was $58.4 million, up 3.5% from prior year.

• Digital-only subscription revenue rose 17% in Q4, with ARPU up 12.5% year-over-year.

Outlook and guidance

• 2025 digital revenues expected to grow 7–10% on a same-store basis and reach 50% of total revenues.

• Total revenues projected to decline in the low single digits on a same-store basis, with sequential improvement and positive same-store revenue growth by year-end.

• Adjusted EBITDA and free cash flow projected to grow more than 30% and 40% respectively in 2025, despite higher capital expenditures.

• Confident in 2026 targets, factoring in refinancing impacts.

• Guidance includes pending sale of Austin American-Statesman, closing in Q1 2025.