USA TODAY Co. (formerly Gannett) achieves first annual profit since 2019 merger. The company reported a net profit of $1.7 million for fiscal year 2025 on total revenues of approximately $2.3 billion, marking its first positive year-end net income since the $1.2 billion GateHouse merger in 2019.
This turnaround follows years of challenges, including massive losses (such as $670 million in 2020 amid the pandemic), heavy debt from the merger, mass layoffs in 2022, and an exodus of editors. The company battled inflation, declining traditional advertising, and AI disruptions while implementing cost cuts and strategic shifts.
 |
| Mike Reed |
- Growth in digital subscriptions, bolstered by a rebuilt strategy emphasizing reduced churn (subscriber turnover) and sustainable pricing.
- AI licensing deals, including partnerships with Meta and Microsoft, which provided new revenue streams from content.
- A broader digital transformation, with digital revenue reaching 47% of total revenue in recent quarters and targeting 50% by the end of the period.
The most recent quarter stood out as the company's strongest in years, with improvements in free cash flow, adjusted EBITDA (around $263 million for the year), and debt reduction (total debt fell below $1 billion, with significant repayments).
While the $1.7 million profit represents a razor-thin margin (about 0.07% on $2.3 billion revenue), it signals a key inflection point after prolonged losses. The company expects further profit growth, continued digital expansion, and cash flow improvements in 2026, as digital becomes the dominant revenue driver.
This positions USA TODAY Co. for a more stable, growth-oriented future in a tough media landscape.