USA TODAY Co., Inc.

What they do

USA TODAY Co. operates three segments: USA TODAY Media (U.S. national and local news properties), Newsquest (U.K. news properties), and LocaliQ (digital marketing solutions for small and medium-sized businesses). The company generates revenue from advertising (print and digital), subscriptions (print and digital-only), digital marketing services, and other digital revenues including syndication, affiliate, and licensing. As of December 31, 2025, digital revenues made up 46% of total revenues, and the company had approximately 1.5 million paid digital-only subscriptions, which outnumbered print subscriptions.

Revenue drivers

• USA TODAY Media — U.S. national and local news properties generating advertising and subscription revenue; digital advertising revenue alone was $79.8 million in Q2 2026.
• Newsquest — U.K. subsidiary with local news properties and digital operations; contributes to total digital audience and advertising revenue.
• LocaliQ — Digital marketing solutions for SMBs; core platform revenues were $106.3 million in Q2 2026, and key metrics improved sequentially.
• Digital-only subscriptions and other digital revenues — Digital-only subscription revenues grew year-over-year in Q2 2026 (second consecutive quarter), and digital other revenues (syndication, affiliate, AI partnerships, licensing) also grew.

Recent performance

In Q2 2026, total revenues were $536.3 million, down 8.3% year-over-year. Net income attributable to the company was $9.1 million, the second consecutive quarter of positive net income. Total Adjusted EBITDA was $56.9 million, and cash provided by operating activities was $35.4 million. Free cash flow was $19.6 million, up approximately 11% year-over-year. Digital revenues were $254.3 million, or 47.4% of total revenues.

Strategy

Management is executing a digital-first strategy focused on growing reach and engagement, diversifying digital revenues, and strengthening the capital structure. They are investing in first-party audience capabilities and technologies like Palantir to improve monetization. They are also expanding reach across social, video, and newsletters, and building content licensing and commerce opportunities. The company aims to cross a revenue inflection point and achieve sustainable long-term revenue growth, free cash flow growth, and margin expansion.

Risks

• Competitive and platform risk — Reliance on third-party platforms (search engines, social media) for content visibility and traffic; actions by these companies can adversely impact traffic and revenues.
• Debt and liquidity risk — High indebtedness ($879.4 million long-term debt at June 30, 2026) and a majority held by one creditor, which may limit flexibility and require consent for additional actions.
• Print decline and macroeconomic pressure — Print advertising and circulation revenues continue to decline, and macroeconomic factors (trade policy, inflation, interest rates) are leading to lower advertising performance and reduced spending.
• Newsprint cost volatility — Shortages of newsprint have caused price volatility, and price increases are expected in 2026.

Outlook

Management reiterates its full-year 2026 outlook: total revenues expected flat to down low single digits on a same-store basis; total digital revenues expected to grow year-over-year and make up 50%+ of total revenues; net income expected to grow versus the prior year. Management expects digital other revenues to continue expanding throughout the year and believes the company is close to crossing a revenue inflection point.