USA Today Reports Net Loss for 3Q

USA TODAY Co. reported a 7.4% decline in third-quarter revenue and a $4.6 million net loss as it began a cost-cutting program expected to save $100 million annually. The company did not say how many jobs would be eliminated.

Revenue was $519.2 million in the quarter ended Sept. 30. Same-store revenue, which excludes acquisitions and divestitures, fell 5.8%. The net loss narrowed from $39.2 million in the same quarter a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled $36.6 million, down from $57.2 million. Free cash flow was $4.3 million.

Chief Executive Michael Reed cited changes in consumer search behavior, including fewer clicks from AI-generated summaries, as well as inflationary pressures.

Michael Reed

“While these pressures have delayed our return to overall revenue growth, we believe we are building a foundation for improved performance,” Chief Financial Officer Trisha Gosser said.

The cost-reduction program was implemented at the end of the third quarter and was fully in place by early October, executives said. They said it was already helping the company’s fourth-quarter run rate and was expected to support sequential growth in adjusted EBITDA and free cash flow.

Digital revenue fell 5.1% to $249.3 million, or 48% of total revenue. Revenue from digital-only subscriptions rose 5.3% to $46 million, marking a third consecutive quarter of growth. Average revenue per digital-only subscriber reached a record $10.82, up 23%. The number of digital-only subscriptions fell about 12% to roughly 1.4 million.

The company lowered its full-year outlook, projecting a mid-single-digit decline in same-store revenue and decreases in adjusted EBITDA, cash from operating activities and free cash flow compared with 2025. It forecast growth in net income.

The company had previously expected to return to overall revenue growth and reach a 50% digital revenue mix in 2026. It has pushed those targets to 2027.

USA TODAY Co. also said it plans to make opportunistic share repurchases in the fourth quarter. About $96.9 million remained under its existing authorization. Total debt principal was $952.9 million after the company paid down $17.7 million during the quarter.

The publisher of USA TODAY and dozens of local newspapers is continuing its lawsuit against Google over its advertising technology practices. A trial is scheduled for April 5, 2027. The company has calculated its damages at $901 million through 2024, before any potential trebling. The amount is the company’s claim and has not been awarded by a court.

Average monthly unique visitors rose sequentially to 161 million.