0000071691-26-000011
SEC filingThe New York Times Company reported strong financial performance for fiscal year 2025, with total revenues of $2.82 billion and net income attributable to common stockholders of $344.0 million. Operating profit was $431.6 million, driven by disciplined cost management as total operating costs were $2.39 billion. The company generated robust operating cash flow of $584.5 million, which supported strategic investments and shareholder returns including $110.4 million in dividends paid and $165.3 million in share repurchases. Key profitability metrics included a 15.3% operating margin and basic EPS of $2.00. The company ended the year with $3.00 billion in total assets, $2.04 billion in stockholders' equity, and maintained strong liquidity with $1.03 billion in current assets including $255.4 million in cash and cash equivalents. The company reported approximately 12.78 million total subscribers as of December 31, 2025, more than at any point in its history.
The New York Times Company delivered solid financial results for fiscal year 2025, with total revenues of $2.82 billion and net income attributable to common stockholders of $344.0 million. Operating profit was $431.6 million, representing a 15.3% operating margin. The company generated strong earnings per share of $2.00 on both a basic and diluted basis. Key cost components included cost of revenue (excluding depreciation and amortization) of $1.39 billion, sales and marketing expenses of $307.1 million, product development costs of $264.3 million, and general and administrative expenses of $328.1 million. The company also incurred $13.3 million in generative AI litigation costs and $2.9 million in impairment charges during the period.
The company generates revenues principally from the sale of subscriptions and advertising, with subscription revenues making up the majority of total revenue. As disclosed in the document, the company had approximately 12.78 million total subscribers as of December 31, 2025, more than at any point in its history. The company's digital and print products include The New York Times core news product, The Athletic sports media product, Audio offerings, Cooking content, Games products, and Wirecutter product reviews. The company noted that it faces significant competition from content creators, news aggregators, search engines, social media platforms, streaming services, and AI companies, which could impact future revenue growth.
The company achieved an operating margin of 15.3% on operating profit of $431.6 million. Gross profit can be calculated as $1.43 billion (total revenues of $2.82 billion minus cost of revenue of $1.39 billion), representing a gross margin of approximately 50.7%. The company's cost structure includes significant investments in product development ($264.3 million) and sales and marketing ($307.1 million) to support subscriber growth and product innovation. Depreciation and amortization expenses totaled $85.0 million, while stock-based compensation expense was $74.2 million. Income tax expense was $107.3 million, resulting in an effective tax rate of approximately 23.8% on income before income taxes of $451.3 million.
The company generated strong operating cash flow of $584.5 million, primarily driven by net income of $344.0 million adjusted for non-cash items including depreciation and amortization of $85.0 million and stock-based compensation of $74.2 million. Free cash flow, calculated as operating cash flow of $584.5 million minus capital expenditures of $34.0 million, was $550.5 million. The company used $221.3 million in investing activities, primarily for purchases of marketable securities, and $306.1 million in financing activities, including dividends paid of $110.4 million and share repurchases of $165.3 million. The balance sheet shows total assets of $3.00 billion, including current assets of $1.03 billion with $255.4 million in cash and cash equivalents and $386.7 million in short-term marketable securities. Total liabilities were $955.7 million, resulting in stockholders' equity of $2.04 billion.
The company faces several risks and challenges that could impact future performance, including significant competition in all aspects of its business, particularly from AI companies and platforms that may use its content without permission or compensation. The company noted that generative AI technology has negatively impacted and is expected to continue to negatively impact its ability to attract, engage, and retain audience and subscribers. Other risks include the ongoing decline in print subscribers and advertising revenues, dependence on third-party platforms for user acquisition and monetization, and challenges in protecting intellectual property rights. The company is investing in efforts to encourage subscribers to use and pay for multiple products through its multiproduct digital bundle and has introduced a higher-priced family subscription tier, but there can be no assurance that such efforts will continue to be successful.