USA Today (TDAY) Q2 FY26 earnings call: guidance and Q&A

Can you elaborate on the Palantir partnership and its potential opportunity?

The partnership leverages Palantir's AI platform to connect audience behavior, content engagement, and first-party data, enabling real-time monetization through personalized content, ads, and commerce. It aims to convert anonymous interactions into known relationships, increasing ARPU. The collaboration allows for faster implementation than internal builds, with management optimistic about significant financial upside, though specific numbers are not yet available.

“this work with Palantir is really going to allow us to connect that audience behavior, content engagement and first-party data in a way that allows us to monetize each consumer on the platform at a much higher rate.”

asked by Giuliano Anderes-Bologna · answered by Michael Reed

Is the large audience being built on social media platforms a potential new revenue stream?

Yes, social media and video are increasingly primary discovery channels. Monetization will occur directly through platform revenue sharing, sponsorships, and branded content. Additionally, these platforms serve as an 'on-ramp' to build direct relationships with consumers, bringing them back to USA TODAY's platform for deeper engagement and higher-value opportunities in advertising, commerce, and subscriptions.

“The answer to the question about whether this is a potential new revenue stream is, yes, absolutely. And for us, social and video are increasingly becoming primary discovery channels.”

asked by Giuliano Anderes-Bologna · answered by Kristin Roberts

Do you foresee more AI licensing deals coming this year?

Yes, the company expects more AI licensing deals this year, driven by the growing demand for trusted, real-time content from AI platforms. A key initiative is reformatting content to be machine-readable, which will unlock more value in both new and current deals. Management is actively engaged in discussions and aims to build recurring, long-term relationships that recognize the value of their content.

“Yes. Giuliano, yes, the short answer is yes. We do see more AI licensing deals coming this year.”

asked by Giuliano Anderes-Bologna · answered by Michael Reed

Were the softer Q2 revenue trends a setback, or do things remain on track for the full year?

Q2 was not a setback but consistent with expected quarterly variability. While some revenue categories were softer due to content licensing lumpiness, changing consumer behavior, and loss of a programmatic partner, underlying growth engines like digital-only subscriptions and digital other revenue performed strongly. LOCALiQ trends are also improving, reinforcing confidence in the full-year outlook and strategic trajectory.

“I absolutely don't view Q2 as a setback. I think we really remain on track with the strategy that we've outlined. And I think it's really important to separate the quarterly variability that we saw from the underlying trajectory of the business.”

asked by Giuliano Anderes-Bologna · answered by Trisha Gosser

Would USA TODAY consider shutting off Google crawlers to gain negotiating leverage for AI licensing deals, and at what point would this make sense?

Yes, the company would consider this, and that day is approaching faster. While search still performs for unique content (e.g., World Cup), search-driven traffic is often low-value and less monetizable. The preferred path is proactive negotiation for fair licensing, but if necessary, blocking Google would be an option. The current guidance does not factor in any upside from potential litigation outcomes or a more open advertising ecosystem.

“I think the short answer is yes, I can see a day where we turn off scraping or making our content available for the links. I think that that day is getting much sooner now than it was a while back.”

asked by Matthew Condon · answered by Michael Reed

What are the key drivers for continued growth in the subscription business, and how much lever is pricing?

Digital-only subscription revenue growth is driven by a better mix of subscribers, consistent offers, and less reliance on deep discounting, leading to a 34% ARPU increase. While 34% ARPU growth is not indefinitely sustainable, opportunities remain in pricing, packaging, and stacked products. Volume stabilization and improved start-to-stop ratio also position for renewed subscriber growth. The focus is on growing subscription revenue and lifetime value, not just volume.

“The most important point in my view, coming out of Q2, is that our digital-only subscription revenue is continuing to grow, and it's now grown year-over-year for 2 consecutive quarters.”

asked by Matthew Condon · answered by Kristin Roberts

The monthly unique visitors are substantially lower than Q1 and year-ago. What's driving this?

The decline reflects lower referrals from traditional search due to changing consumer discovery behaviors, not lower demand for content. The company's reach now extends beyond owned properties through social and video, which are not fully captured in traditional unique visitor metrics. The strategy prioritizes known, highly engaged users over anonymous visits, as these users generate greater value across revenue lines. The focus is on increasing ARPU per unique visitor rather than maximizing raw traffic volume.

“The decline in uniques that you are noting and that we all are seeing during the quarter, it does not reflect lower demand for the content. What it reflects is lower referrals from traditional search because of those consumer discovery changes that we're seeing and witnessing.”

asked by Barton Crockett · answered by Kristin Roberts