Why Q3 digital subscription guidance is lower than previous quarters, and Meredith's view on broader publishing trends (e.g., LLM deals, traffic impact) given the Times' resilience.

Will explained the Q3 digital subscription guidance (12-15%) is influenced by subscriber growth, mix of bundled vs. single-product subs, and pricing step-up performance, specifically noting the cohort impact of paywalling the Mini in Q3 last year. Meredith reiterated the strategy to build resilience against declining traffic from big tech by investing in direct relationships and sought-out content. “As it relates to Q3, I'd note in part the cohort impact of the paywalling of the Mini in last year's Q3. That contribution from lower-priced single product subs a year ago plays a bit of a role in the sub mix in the quarter.”

Whether high competition and engagement issues in video (Netflix, YouTube, social media) support or challenge The Times' video investment strategy.

Meredith affirmed that these trends support their strategy, seeing video as a long-term opportunity to establish The Times as a preferred brand for watching news. She highlighted scaling production (thousands of original videos), growing engagement on and off-platform, and penetrating a large new market. “My short answer is yes, those trends are consistent with our direction of travel on our strategy.”

Unpack Q2 digital ad upside drivers (impressions, pricing, formats, categories) and the role of structural vs. temporary factors. Also, if video investments are meaningfully contributing to ad revenue and can offset difficult comps.

Meredith stated Q2 digital ad growth came from across the portfolio due to differentiated coverage, scale of engagement, and effective ad products. She noted they are lapping strong supply growth in H2 from last year. Video's role in ad revenue growth is currently minor but expected to scale with production and engagement. “Video is playing a relatively minor role in the growth in advertising so far. And you're going to see us really focus on scaling production, scaling engagement and then scaling monetization, but minor role so far.”

NYT

New York Times (NYT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 5, 2026

Source: earnings call transcript

Executive summary

The New York Times Company Q2 FY26 — Strong Digital Growth and Strategic Video Investment

The New York Times Company delivered a strong Q2 FY26, driven by robust digital subscription and advertising revenue growth, fueled by its world-class journalism and premium lifestyle content. The company continues to invest strategically in video journalism and product differentiation to build resilience against broader industry trends of declining traffic from major platforms, aiming for direct audience relationships and long-term profitability.

Highlights

Digital subscription revenues grew 16.4% to $408 million, exceeding expectations.
Added 280,000 net new digital subscribers, bringing the total to 13.4 million.
Digital advertising revenues increased 20.7% to $114 million, beating guidance.
Adjusted Operating Profit (AOP) grew 16% to approximately $155 million.
Adjusted diluted EPS increased 19% to $0.69.

Concerns

Adjusted operating costs grew 10%, exceeding guidance primarily due to incremental variable compensation tied to financial outperformance.
The company faces headwinds from big tech companies' moves resulting in less traffic to publishers.
Q3 digital subscription revenue guidance (12-15%) is below prior quarters due to cohort impact of Mini paywalling last year.

Guidance & targets

Category	Target	Timeline	Confidence
Digital-only subscription revenues	increase 12% to 15% high materiality	Q3 · FY26	High
Total subscription revenues	increase 9% to 11% medium materiality	Q3 · FY26	High
Digital advertising revenues	increase mid- to high teens medium materiality	Q3 · FY26	High
Total advertising revenues	increase high single to low double digits medium materiality	Q3 · FY26	High
Affiliate licensing and other revenues	increase low to mid-single digits low materiality	Q3 · FY26	High
Adjusted operating costs	increase 8% to 9% medium materiality	Q3 · FY26	High
Midterm targets	achieving our midterm targets for subscribers, AOP growth and capital returns high materiality	Midterm	High
Free cash flow tax-related benefit	approximately $60 million medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Digital Subscription Revenues Growth driven by multiple products across the portfolio and performance at pricing step-up points. Net new digital subscribers: 280,000Digital-only subscriber base YoY growth: 13.3%Digital-only ARPU YoY growth: 3.1%	$408 million	16.4%	—	—
Total Subscription Revenues Growth was within the guidance range provided for the quarter.	$538 million	11.7%	—	—
Total Advertising Revenues Exceeded expectations due to marketer demand for high-performing ad products.	$149 million	11.3%	—	—
Digital Advertising Revenues Came in above guidance range, driven by strong marketer demand and high engagement across the portfolio.	$114 million	20.7%	—	—
Affiliate, Licensing and Other Revenues Outperformance primarily due to higher Wirecutter affiliate referral revenues, also beating expectations.	$75.5 million	7%	—	—

Product announcements

Product	Type	Timeline
Shows tab	launch	this week (early August 2026)
New listening and commenting features	launch	Q2 FY26
Cook mode	update	Q2 FY26
[indiscernible] (Games)	update	Q2 FY26

Risks & headwinds

Rapidly changing information ecosystem shaped by big tech companies ongoing

less traffic to publishers

Mitigation:Investing in coverage and products/brands worthy of being sought out and direct relationships; enhancing destination product experiences; expanding video content.

Timing of seasonal working capital H2 FY26

some of which we expect to reverse in the second half

Lapping strong growth in supply in the back half of the year H2 FY26

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Mitigation:Continued optimism about the ad business, confident in its role as a long-term growth driver.

What to watch in Q3 FY26

Digital Subscription Revenue Growth

Q3 FY26

Current 16.4% (Q2 FY26)

Target 12% to 15% (Q3 FY26)

Why it matters

To verify if the anticipated deceleration due to prior-year cohort impacts materializes as guided, impacting overall subscription revenue trajectory.

Digital-only subscription revenues are expected to increase 12% to 15%

Find out whether NYT delivers this. Inve re-checks your case every morning.

Q&A highlights

Clarification on whether elevated sales and marketing costs are temporary or structural, referencing past sharp reactions to similar increases.

Will Bardeen explained that the increase was due to two components: marketing (used as an additional growth lever, fluctuating quarter-to-quarter, with a lean-in for World Cup) and advertising-related costs (higher ad COGS incentive compensation due to outperformance and staffing a new middle market ad sales team). He characterized it as reflecting strategy working as designed.

“There are really 2 different components to highlight there. The first is marketing. The second is actually advertising-related costs.”

asked by Jason Bazinet · answered by William Bardeen

3 min read 7 chapters

Detailed narrative

Strategic Investment in Video Journalism

The New York Times Company is significantly scaling its video production, now producing thousands of new videos each quarter, encompassing reporter videos, news clips, visual investigations, and long-form shows. This strategic investment aims to establish The Times as a preferred brand for watching news, enhance engagement with existing audiences, and attract new ones.

Management views video as a long-term opportunity to expand its market reach and expects it to contribute to future monetization, despite its current minor role in advertising revenue.

Digital Subscription Growth and ARPU Expansion

The company reported robust digital-only subscription revenue growth of 16.4% to $408 million in Q2 FY26, driven by the addition of 280,000 net new digital subscribers and a 3.1% year-over-year increase in digital-only ARPU. This performance reflects the perceived value of the company's diverse product portfolio and the successful execution of pricing strategies, including effective transitions of subscribers from promotional rates to higher price tiers and the full quarter impact of a digital bundle price increase initiated in Q1.

Robust Digital Advertising Performance

Digital advertising revenues surged 20.7% to $114 million, surpassing guidance and expectations. This strong performance is attributed to high marketer demand across the company's expanded portfolio, including news, games, and sports, which offer differentiated coverage and high audience engagement. The company's ad products are noted for their effectiveness, leading to campaign renewals.

While video's contribution to ad revenue is currently minor, it is expected to grow as production and engagement scale.

Resilience Against Information Ecosystem Changes

The New York Times acknowledges the ongoing trend of decreasing traffic referrals from major big tech platforms, which impacts publishers. However, the company is actively building resilience by investing in high-quality, original journalism and differentiated products that are sought out directly by audiences.

The strategy emphasizes enhancing destination product experiences, particularly within its apps, and expanding video content to foster direct audience relationships and reduce reliance on external intermediaries.

Capital Allocation and Shareholder Returns

In the first half of FY26, the company generated approximately $266 million in free cash flow and returned $160 million to shareholders, comprising $92 million in share repurchases and $68 million in dividends. This capital allocation strategy aligns with the company's midterm target of returning at least 50% of free cash flow to shareholders.

The first-half free cash flow benefited from working capital timing, with some reversal expected in the second half, and includes a non-recurring tax-related benefit of $60 million for FY26.

Cost Management and Strategic Investments

Adjusted operating costs increased 10% in Q2 FY26, slightly exceeding the guidance range, primarily due to higher variable compensation tied to the quarter's strong financial outperformance, particularly in advertising. The company maintains its commitment to operating efficiently while making disciplined investments in high-quality journalism and digital product experiences, with video identified as a key strategic area for long-term impact and market penetration.

Local News Experimentation

The company has announced an experiment with a local news product in at least one market, collaborating with a local player. This initiative is described as a test of new ways to meet audience needs and support the broader local journalism ecosystem. It reflects the company's approach to exploring partnerships and innovative models that can both benefit and contribute to the wider media landscape.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.