The New York Times Company (NYT) stock: rises on 1.29M new digital subs and 14% digital revenue boost

TLDR

• NYT adds 1.29M digital subs, pushing digital base near 12M strong.
• Digital revenue up 14%, offsetting print decline for solid gains.
• Profit jumps 36.6% with margin at 18.7% amid tight cost control.
• Free cash flow surges 65% as NYT boosts digital efficiency.
• NYT repurchases shares, tackles AI legal costs, stays growth-focused.

The New York Times Company (NYT) reported strong third-quarter 2025 results, prompting a 1.56% rise in its stock price.

The New York Times Company (NYT)

The company closed early afternoon trading on November 5, 2025, at $58.65, showing renewed momentum. The rise followed a sharp increase in digital subscribers and revenue.

NYT added 1.29 million digital-only subscribers year-over-year, pushing its total digital base to 11.76 million. From the previous quarter, it gained 460,000 digital-only subscribers, highlighting consistent demand. Of the total, 6.27 million users subscribed to bundled or multiproduct offerings.

This digital expansion lifted revenue, as average revenue per user (ARPU) rose 3.6% year-over-year to $9.79. The growth came as many subscribers moved from discounted rates to standard pricing tiers. This pricing shift contributed significantly to NYT’s financial performance.

Digital Subscription and Advertising Drive Revenue Gains

Total subscription revenue increased 9.1% year-over-year to $494.6 million in the third quarter of 2025. Digital-only subscription revenue surged 14.0% to $367.4 million, offsetting a 3.0% drop in print subscription revenue. Print revenues declined due to weaker domestic delivery and lower single-copy sales.

Advertising revenue also strengthened, growing 11.8% year-over-year to $132.3 million in the third quarter. Digital advertising led this growth, increasing 20.3% to $98.1 million due to higher demand and expanded ad inventory. In contrast, print advertising declined 7.1% to $34.2 million.

Other revenue streams added to the performance, with affiliate, licensing, and other revenues rising 7.9% to $73.9 million. Licensing activity remained strong and contributed notably to this segment. Overall, NYT posted total revenue of $700.8 million, up 9.5% from a year ago.

Profitability and Operational Metrics Reflect Strong Execution

Operating profit jumped 36.6% year-over-year to $104.8 million, with an adjusted operating profit of $131.4 million. The operating margin reached 15.0%, while the adjusted margin stood at 18.7%, both reflecting solid gains. Diluted earnings per share rose by $0.11 to $0.50, with adjusted EPS increasing by $0.14 to $0.59.

Operating costs increased 5.8% to $596.0 million, driven by higher journalism, marketing and product development costs. Adjusted operating costs rose 6.2% to $569.4 million, indicating tight cost management. Sales and marketing expenses rose 15.1% as media costs climbed 18.0%.

Free cash flow reached $392.9 million for the first nine months of 2025, up from $237.7 million a year earlier. The company attributed part of this increase to tax benefits under the One Big Beautiful Bill Act. NYT also finalized a land sale in College Point, N.Y., contributing $33 million in net proceeds.

Share Buybacks and Legal Expenses Noted

During the quarter, NYT repurchased 482,833 Class A shares, spending approximately $27.3 million. As of October 31, 2025, $393 million remains authorized for future share repurchases. This repurchase activity supports shareholder returns amid improved financial health.

The company incurred a $3.5 million impairment charge related to a nonmarketable equity investment, affecting net income slightly. NYT recorded $2.4 million in legal expenses tied to its ongoing AI litigation against Microsoft and OpenAI. These costs, treated as special items, reflect management’s stance on one-time legal matters.

Capital expenditures totaled $8 million during the quarter, rising modestly from $6 million a year earlier. The company maintained disciplined investment in infrastructure and technology. These efforts align with NYT’s digital-first strategy and operational efficiency.

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