New York Times Q1 2025 slides: digital growth drives 21.9% profit surge

The New York Times Company (NYSE:NYT) reported strong first-quarter 2025 results on May 7, highlighting continued digital transformation success with substantial growth in subscribers, revenue, and profitability. The company’s presentation revealed a 21.9% increase in adjusted operating profit, reaching $93 million, as digital revenues across subscriptions and advertising continued to offset print declines.

Executive Summary

The New York Times added approximately 250,000 net digital-only subscribers in Q1 2025, bringing its total subscriber count to 11.66 million. Total (EPA:TTEF) revenue increased 7.1% year-over-year to $636 million, while adjusted diluted earnings per share rose to $0.41, up from $0.31 in the same period last year.

As shown in the following chart of quarterly financial results, the company demonstrated solid growth across key metrics:

The company’s bundle strategy continues to gain traction, with bundle and multiproduct subscribers now representing 49% of the total subscriber base, up from 48% previously. Digital-only average revenue per user (ARPU) increased 3.6% to $9.54.

Subscriber Growth and Bundle Strategy

The New York Times maintained its subscriber growth momentum in Q1 2025, adding 250,000 net new digital-only subscribers. This follows a pattern of consistent quarterly additions, with 210,000 in Q1 2024, 300,000 in Q2 2024, 260,000 in Q3 2024, and 350,000 in Q4 2024.

The following chart illustrates the company’s digital subscriber growth trajectory:

A key component of NYT’s strategy is increasing the proportion of bundle and multiproduct subscribers, which typically generate higher ARPU. The presentation highlighted the steady growth in this segment, which reached 5.76 million subscribers in Q1 2025, an increase of 330,000 from Q1 2024.

The breakdown of subscribers by type shows the increasing importance of bundled offerings:

This strategic focus aligns with statements made during the company’s Q3 2024 earnings call, where management projected bundle subscribers would exceed 50% of the total by the end of 2025. At 49% in Q1 2025, the company appears on track to meet this target.

Revenue Performance

The New York Times reported growth across all major revenue streams in Q1 2025. Total subscription revenues increased 8.2% to $464 million, driven by a 14.4% increase in digital subscription revenues to $335 million, which more than offset the 5.0% decline in print subscription revenues.

The following chart breaks down the subscription revenue components:

Digital advertising revenues grew 12.4% to $71 million, while print advertising continued its structural decline, falling 8.5% to $37 million. Total advertising revenues increased 4.2% to $108 million.

The company’s digital advertising performance exceeded guidance, which had projected high-single-digit growth:

Affiliate, licensing, and other revenues increased 3.7% to $64 million, slightly below the mid-single-digit growth guidance provided earlier.

Profitability and Cost Management

The New York Times demonstrated effective cost management in Q1 2025, with adjusted operating costs growing 4.9% year-over-year to $543 million, below the revenue growth rate of 7.1%. This disciplined approach to expenses contributed to a 180 basis point expansion in adjusted operating profit margin, which reached 14.6%.

The following chart illustrates the company’s adjusted operating profit and margin trends:

Free cash flow for the trailing twelve months ended March 31, 2025, reached $425 million, up from $340 million in the comparable period ending March 31, 2024. The company reiterated its goal to return at least 50% of free cash flow to shareholders over the mid-term.

Outlook and Guidance

For the second quarter of 2025, The New York Times provided the following guidance:

• Digital-only subscription revenues: increase 13-16%
• Total subscription revenues: increase 8-10%
• Digital advertising revenues: increase high-single-digits
• Total advertising revenues: flat to increase low single digits
• Affiliate, licensing, and other revenues: increase mid-single-digits
• Adjusted operating costs: increase 5-6%

Additionally, the company expects approximately $80 million in depreciation and amortization, $40 million in interest income and other, net, and $40 million in capital expenditures for the full year 2025.

Strategic Initiatives

The New York Times continues to execute its digital transformation strategy, focusing on three key areas highlighted in its Q1 2025 business summary:

The company’s long-term digital growth trajectory remains strong, with digital-only subscribers increasing from 6.08 million in Q1 2021 to 11.06 million in Q1 2025, while digital-only subscription revenues grew from $180 million to $335 million over the same period.

This consistent performance demonstrates the effectiveness of the company’s strategic focus on quality journalism and lifestyle products, including games, cooking, and product review site Wirecutter, all of which contribute to the appeal of its bundle offerings.

In conclusion, The New York Times Company’s Q1 2025 results show continued progress in its digital transformation, with strong subscriber growth, increasing digital revenues, and expanding profit margins. The company’s bundle strategy appears to be paying dividends, driving both subscriber growth and improved monetization as it approaches its target of having more than half its subscriber base on multi-product offerings.

Full presentation:

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