USA TODAY (TDAY) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered the strongest performance in recent years, with Adjusted EBITDA up 16.6% to $91.1 million and margin expanding to 15.6%, the highest in five years.

• Digital revenues reached an all-time high, accounting for 47.4% of total revenues, and free cash flow surged 722.3% year-over-year to $31.5 million in Q4.

• Achieved positive net income for the full year 2025, the first since the 2019 merger, and marked the third consecutive year of free cash flow growth.

• Executed major AI licensing deals, including partnerships with Meta and Microsoft, contributing to digital revenue growth and Adjusted EBITDA.

• Strengthened balance sheet by repaying $136 million in long-term debt, reducing first lien net leverage to 2.4x, and increasing cash reserves to $90.2 million.

Financial highlights

• Q4 2025 total revenues were $585 million, down 5.8% year-over-year, but same-store revenue trends improved by 290 basis points over Q3.

• Digital revenues in Q4 were $277.5 million, up 5.6% sequentially and 47.4% of total revenues.

• Adjusted EBITDA margin improved to 15.6% from 12.6% a year ago.

• Cash from operating activities in Q4 was $43.4 million, up 382.4% year-over-year; full-year free cash flow totaled $64.2 million, up 10% year-over-year.

• Net loss attributable to the company for Q4 was $30.1 million, while full-year net income was $1.7 million.

Outlook and guidance

• Digital revenues are projected to exceed 50% of total revenues in 2026, with growth expected in net income, Adjusted EBITDA, and double-digit increases in cash from operations and free cash flow.

• Total revenues for 2026 are expected to be flat to down low single digits on a same-store basis.

• Continued improvement in same-store revenue trends is anticipated, with potential for growth late in 2026.

• Debt reduction efforts will continue, targeting first lien net leverage closer to 2x by year-end 2026.