Q3 2025 New York Times Co Earnings Call
Should you need assistance.
Please signal a conference specialist by pressing the star key followed by zero. After today's presentation there'll be an opportunity to hope to ask questions.
To ask a question you May press Star then one on your telephone keypad.
To withdraw your question. Please press Star and then two.
Please note. This event is being recorded I would now like to turn the conference over to Anthony Diclemente.
Vice President Investor Relations. Please go ahead.
Thank you and welcome to the New York Times Company's third quarter 2025 earnings conference call on the call today, we have Meredith Kopit, Levien, President and Chief Executive Officer, and Wilbur <unk> Executive Vice President and Chief Financial Officer.
Before we begin I would like to remind you that management will make forward looking statements. During the course of this call. These statements are based on our current expectations and assumptions, which may change overtime.
Our actual results could differ materially due to a number of risks and uncertainties that are described in the company's 2024 10-K and subsequent SEC filings in.
In addition, our presentation will include non-GAAP financial measures and we have provided reconciliations to the most comparable GAAP measures in our earnings press release, which is available on our website at investors Dot <unk> Dot com.
In addition to our earnings press release, we have also posted a slide presentation relating to our results on our website at investors Dot <unk> Dot com and finally, please note that a copy of the prepared remarks from this morning's call will be posted to our investor website. Shortly after we conclude with that I will turn.
The call over to Meredith.
Thanks, Anthony and good morning, everyone.
Q3 was another great quarter across the board at the time our results affirm that our strategy is working as designed.
We have world class journalism, and our portfolio of leading lifestyle products in giant spaces, where people spend a lot of time.
Those products are so valuable that people seek them out by name form habits and make room for them in their daily lives.
And our multi revenue stream model subscription advertising licensing and affiliate revenue lines that are all growing gives us multiple ways to monetize that value.
The media and technology environment is changing rapidly presenting significant opportunities for companies with the talent products intellectual property and brand equity to successfully capitalize on those ships.
<unk> is one of the company.
We have a long track record of evolving to meet changing market and new consumer needs.
That combined with our clear strategy and strong economic Foundation.
US real confidence that we're well positioned to keep building a larger and more profitable company for years to come.
Now, let me share a few highlights from the quarter.
460000, net new digital subscribers, bringing our total subscriber base to $12 3 million.
This puts us further along the path to our next milestone of $15 million.
These results reflect the value of having multiple levers across our full product portfolio to drive subscriber growth.
Speaker #3: Good morning and welcome to the New York Times Company's third Quarter 2025 earnings conference call . All participants will be in listen only mode should you need assistance .
Digital subscription revenue increased by 14% in the quarter propelled by strong audience engagement across the enterprise.
Speaker #3: Please signal a conference specialist by pressing the star key , followed by zero . After today's presentation , there will be an opportunity to ask questions , to ask a question , you may press star , then one on your telephone keypad .
That engagement is evidence of our continued ability to deliver increasing value to users. We're doing this in several ways by expertly and ambitiously covering the most important news by expanding our efforts in video audio and AI to make our.
Speaker #3: Be withdraw your question . Please press star and then two . Please note this event is being recorded . I would now like to turn the conference over to Anthony DiClemente Senior Vice President , Investor Relations .
Reporting more accessible to more people and by making each of our products more valuable with new content shows features games and other enhancements in Q3, we advanced all of these priority.
Speaker #3: Please go ahead .
Speaker #4: Thank you . And welcome to the New York Times Company's third quarter 2020 earnings conference call . On the call today , we have Meredith Kopit Levien , President and Chief Executive Officer .
We substantially grew the amount and impact of our video journalism in news and across the portfolio, but on our platform and then the scale to places where people are consuming it.
Speaker #4: And William Bardeen Executive vice president and chief financial officer . Before we begin , I would like to remind you that management will make forward looking statements during the course of this call .
We've now turned most of our award winning podcast into video shows that demonstrate but the times convening power.
Speaker #4: These statements are based on our current expectations and assumptions , which may change over time . Our actual results could differ materially due to a number of risks and uncertainties that are described in the company's 2020 .
And our ability to influence the conversation across news and culture we.
Speaker #4: Four 10-K and subsequent SEC filings . In addition , our presentation will include non-GAAP Financial measures and we have provided reconciliations to the most comparable GAAP measures in our earnings press release , which is available on our website at investors .
<unk> video a more prominent part of our flagship times App with the new watch tab and featured placements on our home feed.
In cooking, we're expanding the library, but instructional videos and entertaining shows and that the athletic we are now enhancing our signature analysis and reporting with NFL game, but itch.
Speaker #4: In addition to our earnings press release , we have also posted a slide presentation relating to our results on our website at investors .
We also continue to innovate around our use of AI in the quarter.
Speaker #4: And finally, please note that a copy of the prepared remarks from this morning's call will be posted to our investor website shortly after we conclude.
More and more people are using automated voice to engage with our news report.
We're using AI to improve personalization and targeting and monetization across our customer journey marketing and AD products and AI now powers features like metric conversion on recipes and Richard search on wire cutter.
Speaker #4: With that , I will turn the call over to Meredith .
Speaker #5: Thanks , Anthony , and good morning , everyone . Q3 was another great quarter across the board at the times . Our results affirm that our strategy is working as designed .
<unk> video and AI, we keep adding value to our games portfolio. This quarter, we launched a new logic puzzle pit, which is off to a great start.
Speaker #5: We have world class journalism and a portfolio of leading lifestyle products in giant spaces where people spend a lot of time . Those products are so valuable that people seek them out by name , form , habits , and make room for them in their daily lives .
Turning to advertising, we had another really strong quarter with digital advertising growing over 20% and total advertising growing nearly 12%.
Speaker #5: And our monthly revenue stream model with subscription advertising , licensing and affiliate revenue lines that are all growing gives us multiple ways to monetize that value .
This performance reflects our strategy to create a larger more durable digital AD business is working.
That entails having a portfolio of compelling products and spaces with broad market or appeal. In addition to news, particularly sports games and shopping.
Speaker #5: The media and technology environment is changing rapidly , presenting significant opportunities for companies with the talent , products , intellectual property and brand equity to successfully capitalize on those shifts .
Large engaged audience that marketers can target effectively and a growing supply of high performing AD products across a range of format.
Speaker #5: The times is one of those companies . We have a long track record of evolving to meet changing markets and new consumer needs .
Licensing and affiliate revenues also grew in the quarter the growth in licensing in particular is another proof point for how we are able to monetize the increasing value of our products.
Speaker #5: That , combined with our clear strategy and strong economic foundation , gives us real confidence that we're well positioned to keep building a larger and more profitable company for years to come .
Finally, we stayed disciplined on expense growth in the quarter, even as we invest into our journalism and product experiences, which are the source of our long term advantage.
Speaker #5: Now , let me share a few highlights from the quarter . We added 460,000 net new digital subscribers , bringing our total subscriber base to 12.3 million .
I'll close with a few thoughts on our path ahead.
What we do has never been more important or more valuable our independent journalism trustworthy information and compelling product experiences help people understand the world and lead richer Fuller lives.
Speaker #5: This puts us further along the path to our next milestone of 15 million . These results reflect the value of having multiple levers across our full product portfolio to drive subscriber growth .
Even in an environment, where the move the big Tech companies are leading to less and less traffic for publishers, we see large and persistent demand for what we do.
Speaker #5: Digital subscription revenue increased by 14% in the quarter , propelled by strong audience engagement across the enterprise that engagement is evidence of our continued ability to deliver increasing value to users .
Against the backdrop of a changing ecosystem, we are confident in our ability to widen the number of people who use an engaged deeply with the times on and beyond our own platform.
Speaker #5: We're doing this in several ways by expertly and ambitiously covering the most important news by expanding our efforts in video , audio and AI to make our reporting more accessible to more people .
That means becoming even more essential to even more people and as we do that we expect to deliver even more value for shareholders and for society with that I'll turn it over to will for more details on the quarter.
Speaker #5: And by making each of our products more valuable with new content shows , features , games and other enhancements in Q3 , we advanced all these priorities .
Thanks, Meredith and good morning, everyone. As Martin described our 2025 third quarter results demonstrate another strong quarter for subscriber growth revenue growth.
Speaker #5: We substantially grew the amount and impact of our video journalism in news and across the portfolio , both on our platform and in the scaled places where people are consuming it .
Gross margin expansion and free cash flow generation.
We saw healthy growth across our multiple revenue streams again in the quarter and continued to make disciplined investments aimed at further differentiating our high quality journalism and digital products.
Speaker #5: We've now turned most of our award winning podcasts into video shows that demonstrate both the times convening power and our ability to influence the conversation across news and culture .
Year over year consolidated revenues grew approximately nine 5% A&P grew by approximately 26% and op margin expanded by approximately 240 basis points.
Speaker #5: We made video more prominent part of our flagship times app with a new watch tab and featured placements on our home feed in cooking , we're expanding the library of both instructional videos and entertaining shows , and at the Athletic , we are now enhancing our signature analysis and reporting with NFL game footage .
We generated approximately $393 million of free cash flow in the first.
Nine months of the year, which reflects our capital efficient model.
We also benefited in Q3 from lower cash taxes paid due to the recent change in tax law allows us to fully deduct R&D expenditures in the current year.
Speaker #5: We also continue to innovate around our use of AI in the quarter . More and more people are using automated voice to engage with our news report .
Over that same period, we returned approximately $191 million to shareholders, consisting of approximately $110 million in share repurchases and approximately $81 million in dividends.
This is consistent with our capital allocation strategy of returning at least 50% of free cash flow to our shareholders over the mid term.
Now I will discuss the third quarter's key results followed by our financial outlook for the fourth quarter of 2025.
Please note that all comparisons are to the prior year period, unless otherwise specified.
I'll start with our subscription revenues.
We added approximately 460000 net new digital subscribers in the quarter, bringing our total subscriber count to approximately $12 3 million.
Subscriber growth came from multiple products across our portfolio.
We also continue to be pleased with the rollout of our family plan subscription offerings.
Total digital only RP grew three 6% to $9 79 as.
As we stepped up subscribers from promotional to higher prices and raised prices on certain tenured subscribers.
We continue to be encouraged by the results, we're seeing at pricing step up points, which we believe reflects the value we continue to add into our products.
As a result, we remain confident in our trajectory.
With both higher digital subscribers and higher total digital only <unk> in the third quarter digital only subscription revenues grew approximately 14% to $367 million.
Total subscription revenues grew approximately 9% to $495 million.
Which was in line with the guidance, we provided for the quarter.
Now turning to advertising revenues.
Total advertising revenues for the quarter were $132 million, an increase of approximately 12%, which is higher than the guidance we provided for the quarter.
Digital advertising revenues also came in above the guidance, we provided increasing approximately 20% to $98 million.
The strength in digital advertising was due mainly to strong market demand and new advertising supply.
Affiliate licensing and other revenues increased approximately 8% in the quarter to $74 million, primarily as a result of higher licensing revenues.
Even in an environment where the moves of big tech companies are leading to less and less traffic for Publishers. We see large and persistent demand for what we do.
Adjusted operating costs grew six 2%.
This was just above the 5% to 6% guidance range that we provided last quarter.
Adjusted diluted EPS in Q3 increased 14.
To 59.
Primarily driven by higher operating profit.
I will now look ahead to Q4.
Digital only subscription revenues are expected to increase 13% to 16% and total subscription revenues are expected to increase 8% to 10%.
Against a backdrop of a changing ecosystem. We are confident in our ability to widen the number of people who use and engage deeply with the times on and Beyond are in platforms. That means becoming even more essential to even more people. And as we do that, we expect to deliver even more value for shareholders. And for society with that, I'll turn it over to will for more details on the quarter.
Thanks Meredith and good morning, everyone.
Digital advertising revenues are expected to increase mid to high teens and total advertising revenues are expected to increase high single to low double digits.
As Meredith described our 2025 third quarter results, demonstrate another strong quarter for subscriber growth. Revenue growth aop growth margin expansion and free cash flow generation.
Affiliate licensing and other revenues are expected to increase mid single digits adjusted.
Operating costs are expected to increase 6% to 7%, we intend to continue operating efficiently, while making disciplined investments in our high quality journalism and digital product experiences that add value for our audiences.
We saw Healthy Growth across our multiple revenue streams again in the quarter and continue to make disciplined Investments aimed at further differentiating, our high-quality journalism, and digital products.
Year-over-year, Consolidated revenues, through approximately 9.5%, aop grew by approximately 26% and aop margin expanded by approximately 240 basis points.
In summary, our essential subscription strategy is continuing to work as designed.
Valued product portfolio multiple revenue streams and significant free cash flow generation and a strong balance sheet. We believe we are well positioned to navigate a dynamic market environment.
We generated approximately 393 million of free cash flow in the first, uh, first 9 months of the year, which reflects our Capital efficient model.
As we enter into year end, we continue to expect healthy growth in revenues margin expansion and strong free cash flow generation for the full year.
We also benefited in Q3 from lower cash, taxes paid, due to the recent change in tax law, that allows us to fully deduct R&D expenditures in the current year,
With that we're happy to take your questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys.
over that same period. We returned approximately 191 million to shareholders. Consisting of approximately 110 million in share, repurchases, and approximately 81 million in dividends.
This is consistent with our Capital, allocation strategy of returning, at least 50% of free cash, flow to our shareholders, over the midterm.
To withdraw your question. Please press Star then two.
Our first question comes from Thomas <unk> with Morgan Stanley. Please go ahead.
now, I'll discuss the third quarter's key results followed by our financial outlook, for the fourth quarter of 2025,
Please note that all comparisons are the prior year period, unless otherwise specified.
Two just on the video formats I was hoping you could dimensionalize the opportunity around that push I think the big focus sounds like is centered on building engagement and brand, but I guess, how should we think about how it affects advertising do you see this as maybe another aperture for.
I'll start with our subscription revenues.
We added approximately 460,000 net, new digital subscribers in the quarter, bringing our total subscriber, count to approximately 12.3 million.
Subscriber growth came from multiple products across our portfolio.
Expanding into video advertising opportunities and then also maybe just touching on what kind of incremental investment needs. This push might entail and then secondly on the family plan.
We also continue to be pleased with the rollout of our family plan subscription offering.
It looks like and now represents 2% of your digital only subscriber footprint in.
Looks like it also came through predominantly on the game side versus the bundle can.
Total digital only rpu grew 3.6% to 9.79 as we stepped up subscribers from promotional to higher prices and raised prices on certain tenure subscribers.
Can you talk about what stage of the rollout year and if there is any appetite to push further on that in terms of maybe restricting sharing somehow on your non family plan.
We continue to be encouraged by the results. We're seeing at pricing Step Up points, which we believe reflects the value. We continue to add into our products.
as a result, we remain confident in our our food trajectory
I'm happy to take both those questions. Thomas Good morning, Let me start on video I think the first thing to say is we think it's a big opportunity for the company and we're in early days event, we know.
With both higher digital subscribers and higher total, digital only arpu in the third quarter digital only subscription revenues grew approximately 14% to 367 million.
Lots and lots of people are.
Seeking out and getting their news and the other kinds of content, we make in the form of video and so we think having more video gives us a big opportunity to engage the people, we already have more and to engage even more people and to do that both on and off our platform.
Total subscription revenues grew approximately 9% to 495 million, which was in line with the guidance we provided for the quarter.
Now, turning to advertising revenues.
Approximately 12%, Which is higher than the guidance, we provided for the quarter.
And you asked specifically about advertising I would say we're early here. Our first priority is to do what I've, just described which is to drive more engagement and ultimately have.
Digital advertising revenues also came in above the guidance. We provided increasing approximately 20% to 98 million.
Ah wider engaged audience is what drives every part of our business subscriptions advertising and affiliate licensing. So we just think we think this is a really important part of our go forward growth plans and we're very excited about what we're doing there on family.
The strength in digital advertising was due mainly to strong marketer, demand and new advertising Supply.
affiliate licensing and other revenues increased approximately 8% in the quarter to 74 million primarily as a result of higher licensing, revenues,
Adjusted operating costs. Grew 6.2%.
Plan.
We're really excited about this.
This was just above the 5% to 6% guidance range that we provided last quarter.
<unk>.
It's definitely played a role in the quarter family plan is good in a bunch of ways. That's good for market penetration.
Adjusted diluted EPS in Q3 increased 14 cents to 59 cents, primarily driven by higher operating profits.
I'll now look ahead to Q4.
There you can think of it as you know the.
<unk>, we already have bringing in other other subscribers and because the family plan subscription is priced at a premium it's additive to subscription revenue it's great for engagement, it's great for retention.
Digital only subscription revenues are expected to increase 13 to 16% and total subscription revenues are expected to increase 8 to 10%.
And then I think you asked specifically about its waiting to games versus the bundle that is not.
Digital advertising revenues are expected to increase mid to high teens and total advertising revenues, are expected to increase, High single to low, double digits.
I would not.
Think about it that way I think about it as we.
Affiliate licensing and other revenues are expected to increase mid-single digits.
Presented a family opportunity in both the bundle and in games and we are really excited about the performance of boats.
Thank you so much that's very helpful.
Adjusted operating costs are expected to increase 6 to 7%. We intend to continue operating efficiently while making disciplined investments in our high-quality journalism and digital product experiences that add value for our audiences.
And the next question.
And the next question comes from Benjamin soft with Deutsche Bank. Please go ahead.
In summary, our essential subscription strategy is continuing to work as designed
Good morning. Thanks for the question I was wondering if you could talk a bit more about the growth rate in opex for <unk> kind of what's driving that higher growth rate and should we expect that to continue at similar levels going forward and then on capital allocation. Your cash balance has continued to grow nicely, even as <unk> been returning 50% of free cash flow.
With a valued product portfolio, multiple revenue streams, significant free cash flow generation, and a strong balance sheet, we believe we are well positioned to navigate a dynamic market environment.
Shareholders I wanted to check in and see what your latest thoughts are there and how you might potentially go about deploying our cash. Thank you.
As we enter into year end, we continue to expect Healthy Growth in revenues and aop margin expansion and strong free cash flow generation for the full year.
With that, we're happy to take your questions.
Sure. Thanks, I'll take both of those.
So look on the on the cost for Q4, the guidance and this is relevant to Q3 and going forward I think the most important thing I just wanted to say stepping back we remain focused over the long term on sustaining healthy revenue growth <unk> growth and margin expansion. So everything we talked about in cost is in the context of that.
We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone, if you are using a speaker-phone please pick up your handset before pressing the keys.
you withdraw your question, please press star and then 2
Our first question comes from Thomas. Yeah, with Morgan Stanley, please go ahead.
Now, we do that our approach to that and our strategy is.
To be both disciplined cost and efficiency, but also making long term investments that.
Our.
Helping to further areas that best position us for sustainable growth and that's our world class journalism lifestyle products and the product development that underpins our content.
Now that includes areas like.
Video, which Meredith said in her remarks, which we're excited about so specifically your questions on on Q4 and Q3, a couple of things where we're seeing there.
2, I just on the video formats. I was hoping you could Dimension lies the opportunity around that push. I think the big Focus sounds like it's centered on building engagement and brand, but I I guess how should we think about how it affects advertising? Do you see this as maybe another aperture for expanding into video, advertising opportunities, and then also maybe just touching on what kind of incremental investment needs this? Push might entail and then, secondly on the family plan, it looks like it now represents 2% of your digital only subscriber footprint and
Is that continued investment.
The journalism product so areas like video.
Also have.
You see in Q3 results as you can expect in Q4 flexibility to lean into areas like sales and marketing when theyre. Good returns in the market or when we see a good opportunity for a great brand campaign, we haven't had one in the market now if you will to understand which we really like.
looks like it also came through predominantly on the game side versus the bundle. Can you talk about just what stage of the roll out you're in? And if there's any appetite to push further on that, in terms of maybe restricting sharing somehow on your non-family plan,
And then the last thing to note.
Is that there can be some variable expenses correlated with revenue performance that can lead to fluctuations in any given quarter displayed a bit of a roll in Q3.
Could well end up playing a role in Q4 as well.
So that disciplined approach.
Approach overall too.
Being really focused on cost efficiency, while also making investments is what youre seeing.
Start on video. I think the first thing to say is, um, we think it's a big opportunity for the company and we're in early days of it, we know lots and lots of people are um, seeking out and getting their news and the other kinds of content we make in the form of video. And so we think having more video gives us a big opportunity to engage the people. We already have more and to engage even more people.
In our cost performance throughout the year as well as in the Q4 guide.
Great. Thanks, Dan.
And then my question is what happens well locations.
Yes.
That one I would just say.
No change in strategy.
We believe the capital allocation strategy, it's working really well for us so.
The key thing is top priority for US has always been we are.
On a core organic growth strategy central subscription strategy still investing into high return opportunities to continue that growth.
You just mentioned video for example.
And then to the point of Marissa talked about in your remarks, a dynamic market environment.
Having a strong balance sheet that gives us optionality to capture opportunities should we see them <unk>.
Including opportunistic.
Additional capital return.
At least 50% sorry.
Capital return.
Target and then it's.
Just worth making sure to reemphasize that.
Our bar for capital allocation is really really high so.
<unk> seen that in our track record, thus far with any M&A, we've done and you can expect us to continue to have that very high bar going forward.
Great. Thanks, Operator next question.
Other subscribers and because the family plan subscription is priced at a premium it's additive to subscription Revenue. It's great for engagement, it's great for retention. Um, and then I think you asked specifically about, it's waiting to gains versus the bundle that is not. Um, I I would not um think about it that way, I think about it as um we we presented a family opportunity in both uh the bundle and in games and we are really excited about the performance of both.
The next question comes from David <unk> with Jpmorgan. Please go ahead.
Thank you so much, that's very helpful.
In the next question.
Hey, Thank you maybe following up on the watch had wanted to see if you could speak a bit to the functionality of the product is the goal to make that highly personalized or are you also kind of highlighting top stories in other parts of the coverage and how do you think about the process of inserting ads there and then secondly regarding other single product.
And the next question comes from Benjamin soft with Deutsche Bank. Please go ahead.
I think thats the best quarter for net adds on record maybe you could just break that down across the various single products and for games, specifically, how material where factors like putting mini crossword behind a paywall or pips, which were rolled out in August. Thank you.
Good morning, thanks for the question. I was wondering if you could talk a bit more about the growth rate and Opex forq kind of what's driving that higher growth rate, and should we expect that to continue at similar levels, going forward and then on Capital, allocation, your cash balance has continued to grow nicely. Even as you've been returning, 50% of free cash flow to shareholders. I wanted to check in and see what your latest thoughts were there and how you might potentially go about deploying that cash. Thank you.
I'm happy to take both of those David Thank you let.
Sure, thanks. So I'll I'll take both of those. Um,
Let me, let me start with video and the watch tab and I'll step back just a little bit and note a number of things we're doing in video in the watch tab is kind of one of them. We know has on our site and the App substantially more news video on whatever the major stories of the day are we at.
Many more reporter videos with reporters essentially explaining their work and humanizing.
The journal of them, that's great for enhancing trust and it also serves as a teaser.
To longer longer form work that we do we turned.
That's for our podcasts now into full linked shows.
The watch tab and the work we've done in the today feed to get people to watch video more and go to that tab is I'll, just kind of part of that broader effort to get more engagement with.
More and more of the journalism in video in addition by the way to reading and listening I'm. Neither of those things are going away in the watch tab, specifically I would say it is early days on your question about advertising. The most important thing we can do is get lots and lots of people to engage with our video on platform.
So, um, look on the on the cost for Q4 the guidance and, and this is relevant to Q3. And, and going forward, I I think the most important thing I always want to say stepping back, we remain focused over the long term on sustaining healthy Revenue, growth aop, growth and margin expansion. So everything we talked about in cost is in the context of of that. Now we do that we, you know, our approach to that and our strategy is, uh, to be both disciplined and costs and efficiency, but also making long-term Investments that um, uh, are um, helping to further areas that best position us for sustainable growth. And that's our world-class news journalism, lifestyle products, and the product development that underpins our content. Um, now that includes areas like uh, uh video which Meredith said in her remarks, which were excited about so specifically to your questions on on Q4 and Q3 a couple of things. We're we're seeing there. Um, is that continued investment? Um, into the journalism product?
Norm in the tab and off platform and the more we do that the more opportunity I think it opens up across all of our revenue lines. So I can sort of long term optimistic about that.
So areas like video, uh, we also have, uh, as you see in in Q3 results. Um, and you can expect in Q4 flexibility to lean into areas like sales and marketing, when they're a good returns in the market, or when we see a good, um, opportunity for a, a great brand campaign, we have had that 1 in the market. Now it's your role to understand which we really like. Um, and then the last thing to note, um, is that there can be some variable expenses correlated with Revenue per
On your question about single product subscriptions and games.
We are really pleased with the strong net adds growth in the quarter and I would say, it's kind of the strategy working.
As it's designed to do we've got multiple growth levers, including games that are all going to play different roles in sort of different.
Performance. Um, that can lead to fluctuations in any given quarter of this played a bit of a role in, Q3 it it, um, could well, um, end up playing a role in Q4 as well. Uh, so that disciplined, um, approach overall to, um, being really focused on cost efficiency while also making Investments is what you're seeing uh, in our uh, cost performance throughout the year as well as in the Q4 guide.
Orders.
And games definitely played played a role here.
Great, thanks. Ben operate.
On the mini specifically, which I think you asked about the <unk>.
Idea here is that we.
We were pretty intentional.
About.
<unk>.
Long term value creation in the case of the many our decision to make that a paid subscription very intentional one we.
We believed and it's proven to be the case that we would do it in a way that did not sacrifice them.
In a big way engaged audience, so we feel great about that.
The idea here is that we've got sort of multiple ways to monetize.
Across the portfolio, including games and what we're optimizing for here is having the widest possible audience for all of our work in this case games and also having plenty of reasons for people to feel like they should pay and you can sort of extrapolate that to the <unk>.
And then next question, question, okay, go ahead. Yeah, on on that 1, I would just say, um, you know, no change in strategy today. There, we believe the capital allocation strategy is is working really well for us. So, um, you know, the key thing is top priority for us. Has always been, we have what, at a core, our organic growth strategy, essential subscription strategy, so investing into high return, um, opportunities to continue that growth. Um, we we just mentioned video, for example, and then, to this, you know, Point, uh, of Meredith talked about in your remarks and dynamic Market environment. Um, we like having a strong balance sheet that gives us optionality to, uh, capture opportunities. Uh, should we see them? Um, including opportunistic, uh, uh, additional Capital return? That's an, uh, at least 50% is, our is, is is the capital return, um, Target, um, and then, uh, it's just worth making sure to re-emphasize that, uh, you know,
Water theory.
That's how we make free pay decisions across the enterprise I think the thing to know and games as we are always adding value to the portfolio. We've got a robust pipeline kind of at all times of new games in development in a very good track record here and we're just excited about the opportunity.
Our bar for capital allocation is really, really high. So, um, we've seen that in our track record thus far with any M&A we've done, and you can expect us to continue to have that very high bar going forward.
Right. And the next question, let's go to our next question in the next question comes from David Karen voski with JP Morgan. Please go ahead.
Great. Thanks, David Operator next question. Please and then next question goes from close to cut gun morale with Evercore ISI. Please go ahead.
Great. Good morning, and thanks for taking the questions. Two if I could first advertising continues to be an area of strength in the quarter and you expect the momentum to carry into the fourth quarter. I know you called out marketer demand a new advertiser supply, but can you impact the dynamics there a bit more how much of this is attributable to the underlying market compare.
On record, maybe you could just break that down across the various single products. And, and for games, specifically, how material, you know, were factors, like, putting mini crossword behind a pay wall, or, or Pips, which you rolled out in August. Thank you.
Two uptick from some of the new product innovations that <unk> been actively rolling out across the portfolio and.
And second on affiliate licensing and other revenues.
<unk> third quarter is there anything more you can share on Q4 and the outlook for the slight deceleration in growth to mid single digits. I know, we're not talking about 2026, just yet, but I was hoping for more color, especially in the context of the Amazon partnership. Thank you.
Why don't I take the advertising question will you'll you'll take the one on other revenue look I think the first thing to say is we're really pleased with what we have.
I'm I'm happy to take both of those David, thank you. Um let me let me start with video and and the watch Tab and and I'll step back just a little bit and note a number of things we're doing in video and the watch tab is kind of 1 of them. You know we we now have you know, on our site in the app substantially more news video on on whatever the major stories of the day, are we have many more reporter videos with reporters essentially explaining their work and humanizing
So in the quarter and you know frankly, so far all year and it's a little bit of everything working to answer your question directly the big picture here as we kind of see the AD business increasingly like we see the consumer business.
The consumer strategy is to mean more to more people in and advertising were kind of providing more value to more advertisers in more ways that we've got these really big products.
Big spaces, where there is lots of consumer interest, especially in news and I would say games in sports, but also shopping and cooking.
Them, that's great for enhancing trust. And it also serves as a teaser, um, to, you know, longer longer form, work that we, we do, we turned, um, most of our podcasts now, into full length shows, um, the watch Tab and the work we've done in the today, feed to get people to watch video more and go to that tab is all just kind of part of that broader effort to get more engagement with with, you know, more and more of the journalism in video, in addition, by the way, to reading and listening, um neither of those things are are going away in the watch tab. Specifically, I would say it is early days on your question about advertising. The most important thing we
Lots of engagement for all of those products, which allows us to really effectively target people at scale, we have great AD products by the way we've been at that targeting and at those AD products for many years now very deliberately building first party data very deliberately building a suite of proprietary ad.
Products, and we're continuing to sort of extend those across the portfolio and we keep innovating in our AD products. So our AI powered brand match, which I think we launched a year ago was really also helping on the targeting front all of that means they've got AD products that work and I think we're <unk>.
We can do is get lots. And lots of people to engage with our video on platform in the table and off platform. And the more we do that, the more opportunity, I think it opens up across all of our Revenue lines. So I'm sort of long term optimistic about that, um, on your question about single product subscriptions. And and games, um, we are really pleased with the strong, net ads, growth in the quarter, and I would say it's kind of a strategy working
Well, so the sort of broad answer is it's a little bit of everything that you're pointing to.
And then on the on affiliate licensing and other than the dynamics. There. It's just always important to remember that that revenue line has a lot of different items that can create some variability quarter to quarter as well as make it difficult to isolate the contribution of any one particular item and so.
We've said this in the past, it's obviously not just affiliate and licensing multiple licensing deals they're both TV film commercial credits so a lot of different dynamics.
And I think the most important thing to say there looking forward not just Q4, but into the future.
That is just given our strategy to make our news journalism and product portfolio more valuable to more people. We expect this revenue line to.
As it's designed to do, we've got multiple growth levers, including games that are all going to play different roles and and sort of different quarters. Um, and, and games definitely played played a role here, um, on on the mini specifically, which I, I think you asked about. Um, the idea here is that, um, we were, you know, pretty intentional, um, about, you know, long-term value creation. And the case of the mini, um, our decision to make that a paid subscription was very intentional 1. We, um, we believed, and it's, it's proven to be the case that we would do it in a way that did not sacrifice, um, in a big way engaged audience. So we feel great about that. Um, and the idea here is that we've got sort of multiple ways to monetize, um, you know, across the portfolio, including in games and
To grow over the long term as part of our multiples are multi revenue stream model.
And our next question next question please.
The next question comes from Doug Arthur with Huber Research Partners. Please go ahead.
Sure.
You didn't break out the athletic as promised Eddie any color on it was additive in.
In line any color would be helpful. Thank you.
What we're we're optimizing for here is having the widest possible audience for all of our work, in this case games and also having plenty of reasons for people to feel like they they should pay. And you could sort of extrapolate that to the kind of broader Theory, um, of how we make free pay decisions across the Enterprise. I think the thing to know on games is we are always adding value to the portfolio. We've got a robust pipeline kind of, at all times of new games and, and development in a very good track record here, and we're just excited about the opportunity.
Good morning, Doug I'll, just say, we continue to be very pleased with the performance that they athletic.
Remains on track for all the things we wanted to do.
Great, thanks. David operator. Next question, please. And the next question goes from goes to cut gun morale with evercore. Isi, please go ahead.
I mentioned in my remarks sort of consistently strong engagement across the portfolio and the addition of video and lots and lots of places I think this was the quarter, where we introduced NFL, but we already had NBA footage we reintroduced.
We introduced NFL footage and we're combining that with our signature journalism in our reporting and I think that's a great product experience for engagement NFL is a huge part of what the athletic covers and we're continuing to build audience and awareness for the brand to athletic and I would just say it's all.
Great. Good morning. And, um, thanks for taking the questions too. If I could first advertising continues to be an area of strength in the quarter, and, and you expect the momentum to carry into the fourth quarter. I know you called out marketer demand and you Advertiser Supply, but can you impact the Dynamics there? A bit more. You know, how much of this is attributable to the underlying Market compared to uptick from some of the new product innovations. That you've been actively rolling out across the portfolio and second on affiliate licensing and other revenues, get a healthy. Third quarter, is there anything more? You can share on Q4 and the outlook for the slight deceleration and growth to Mid single digits? I know we're not talking about doing.
So all going well big contributor in advertising, all going very very well.
2026 just yet. But I was hoping for more color, especially in the context of the Amazon AI partnership. Thank you.
And I guess really.
Why don't I?
Excellent.
The just as a follow up on the surge in single product.
Our subscribers are.
Are you getting the conversion.
Off those over time that you expect I mean, how it how's that playing out to higher value products.
Aye.
I think the best way to describe it is we really it's really the model working kind of as it's designed to work our single products are serving as the.
Wonderful engine.
Audience and engagement.
And in many instances, our funnels to get people to subscribe either to be individual product or.
Or just the bundle that's all kind of working as we expected it to and Theyre also all proving to be very.
Very valuable to the sort of multi revenue stream monetization I've called out games and sports in particular as being big spaces that marketers.
See real value in and want to be around and we are.
On games.
<unk> scaled audience lots and lots of people who play our games.
Your question directly that the big picture here is we kind of see the ad business increasingly like we see the consumer business. Um you know the consumer strategy is to mean more to more people in an advertising. We're kind of providing more value to more advertisers and more ways. So we've got these really big products, um, in big spaces where there's lots of consumer interest, especially in news and I would say games and sports but also shopping. And, and cooking. Um, we have lots of Engagement for all of those products which allows us to really effectively Target people at scale. We have great ad products, by the way, we've been at that targeting and at those ad products for many years. Now, very deliberately building first-party data very deliberately building, a suite of proprietary, add products and we're continuing to sort of extend those across the portfolio and we we keep innovating, um,
And in the athletic we're really growing the audience. So we see a big opportunity there, but I would say, it's all kind of going it's all working.
As it's designed to as far as as driving subscription advertising and ultimately you know the whole model.
Internet products. So our, our AI powered brand match, which I think we launched a year ago, is really also helping on the targeting front. All of that means we've got to add products that that work and I think we're executing well. So the the sort of broad answer is it's a little bit of everything that you're, you're pointing to
Great. Thanks, Doug.
This concludes our question and answer session I would like to turn the conference back over to Anthony Diclemente for any closing remarks.
Well, thanks, everyone for your interest and for joining us on the earnings call. We'll see you next quarter.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
And then on a on affiliate licensing and, and other and, and the Dynamics there, it's just always important to remember that, that Revenue line has a lot of different items that uh can both create some variability quarter to quarter as well as make it difficult to isolate the contribution of any 1 particular item. And so, you know, we uh, said this in the past, it's obviously not just affiliate and Licensing, its multiple licensing deals there. It's booked TV film. It's commercial printing. So, a lot of different Dynamics. Um, and I think the most important thing to say there, uh, you know, looking forward, not just Q4, but but, you know, into the future as you as you said is just giving our strategy to make our news journalism and product portfolio. More valuable to more people. We expect this Revenue line, uh, to grow over the long term as part of our multiple, our
And the next question, let's go to the next question, please.
And the next question comes from Doug. Arthur, with Huber research Partners, please go ahead.
Um, uh, you didn't break out the athletic, as, as promised, uh, any any color on it was it additive, uh, in line, uh, any color would be helpful. Thank you.
Morning Doug. Um, I'll just say we continue to be, um, very pleased with the performance of the athletic and, you know, remains on track. Um, for all the things, we, we want it to do. Um, I, you know, I mentioned in my remarks, sort of consistently strong engagement across the portfolio, and the addition of of video and lots and lots of places. I think this was the quarter where we introduced, um, NFL's footage. We already had MBA footage. We, um, we introduced NFL footage and we're combining that with our signature journalism and our reporting. And I think that's a great product experience for engagement. NFL is a huge part of what the athletic covers and word continuing to build audience and awareness for for, you know, the brand athletic. And I would just say it's all, it's all going. Well, big contributor and advertising all going very, very well.
I guess this is a
Uh, excellent. Um, the just as a follow up on the surge in single product uh, uh, subscribers are. Are, are you getting the conversion off those over time that you expect? I mean, how, how is that playing out to to higher value products?
I I, I
Scaled audience. Lots and lots of people who play our games. Um, and in the athletic we are are really growing the audience. So we we see a big opportunity there, but I would say it's all kind of going, it's all working. Um uh, as it's designed to um, as far as, as driving subscription advertising and ultimately, you know, the whole model
Great. Thanks. Doug.
This concludes our question and answer session. I would like to turn the conference back over to Anthony diclemente for any closing remarks.
Well, thanks everyone for your interest and for joining us on the earnings call. We'll see you next quarter.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect