Q4 2025 USA Today Earnings Call

February 26, 2026

Question and answer session will follow the formal presentation.

Speaker #2: We expect this momentum to carry into 2026, including full-year growth in net income, total adjusted EBITDA, and free cash flow. Improving same-store revenue trends: total digital revenue growth and continued deleveraging.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded.

I will now turn the conference over to your host. Matt Esposito, head of investor relations. You may begin.

Speaker #2: Furthermore, our fourth quarter performance capped off what we believe was a defining year for USA Today Co., highlighted by significant milestones and a successful rebrand that fully embraces the ethos of a dynamic media company.

Thank you. Good morning, everyone. And thank you for joining our call today to discuss. USA Today company's fourth quarter, 2025 Financial results.

Operator: Greetings! Welcome to the USA TODAY Co., Inc. Q4 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Matthew Esposito, Head of Investor Relations. You may begin.

Speaker #2: Before turning to our quarterly results, I want to highlight some of these milestones that helped to reinforce our confidence as we move into 2026.

Speaker #2: We delivered our third consecutive year of free cash flow growth over the prior year. We achieved positive net income for the first time since our merger in 2019.

Speaker #2: We saw further expansion in our digital revenue mix as I just mentioned, over $47% of our revenue is digital and we are well positioned to surpass 50% during 2026.

Matt Esposito: Thank you. Good morning, everyone, and thank you for joining our call today to discuss USA TODAY Co.'s Q4 2025 financial results. Presenting on today's call will be Michael Reed, Chairman and Chief Executive Officer, Trisha Gosser, Chief Financial Officer, and Kristin Roberts, President of USA TODAY Media. If you navigate to the USA TODAY Co. website, you will find that we have posted an earnings supplement in addition to our earlier press release. We'll be referencing it today on the call as it provides you with additional detail on this quarter's performance and our 2026 business outlook. Before we begin, please let me remind you that this call is being recorded.

Speaker #2: We executed several AI licensing agreements that we expect to improve digital revenue trends and be highly accretive to total adjusted EBITDA. Including a recently signed partnership with Meta, which represents our largest AI licensing deal to date.

Presenting on today's call will be Mike Reid, chairman and chief executive officer. Tricia Gosser Chief Financial Officer and Kristen Roberts. President of USA Today media. If you navigate to the USA Today, company website, you will find that we have posted an earning supplement. In addition to our earlier, press release, we will be referencing it today on the call as it provides you with additional detail on this course performance and our 2026 business outlook. Before we begin, please let me remind you that this call is being recorded. In addition, certain statements made during this call are or may be deemed to be forward-looking statements as defined under the US Federal Securities laws, including those with respect to Future results and events and are based upon current expectations. These statements involve risks and uncertainties that may cause actual results and events to differ materially from those discussed. Today, we encourage you to read the cautionary. Statement regarding forward-looking statements in the earning supplement as well as the risk factors described.

Speaker #2: These agreements contributed positively to our fourth quarter results and position us for further growth in 2026. With regard to total adjusted EBITDA, for full-year 2025, keep in mind that our results reflect some larger asset sales completed during the year, including the Austin American Statesman.

In our filings made with Securities and Exchange Commission.

Except as required by law, we undertake no obligation to publicly update or correct any of the forward-looking statements made during this call.

Matt Esposito: Certain statements made during this call are or may be deemed to be forward-looking statements as defined under the US Federal Securities laws, including those with respect to future results and events and are based upon current expectations. These statements involve risks and uncertainties that may cause actual results and events to differ materially from those discussed today. We encourage you to read the cautionary statement regarding forward-looking statements in the earnings supplement, as well as the risk factors described in our filings made with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to publicly update or correct any of the forward-looking statements made during this call. Please keep in mind all comparisons are a year-over-year basis unless otherwise noted.

Speaker #2: And without those sales, total adjusted EBITDA would have essentially been flat year over year. We continued to strengthen our capital structure by repaying approximately $136 million of long-term debt and repurchasing $14 million of convertible notes.

Speaker #2: And we reduced our firstly net leverage by 11% versus the prior year. In the second half of the year, we also took meaningful actions to create a lower and more flexible cost base.

Matt Esposito: In addition, we will be discussing non-GAAP financial information during the call, including same-store revenues, free cash flow, total adjusted EBITDA, total adjusted EBITDA margin, segment adjusted EBITDA, segment adjusted EBITDA margin, and adjusted net income attributable to USA TODAY Co.. You can find reconciliations of our non-GAAP measures to the most comparable U.S. GAAP measures in the earnings supplement. Lastly, I would like to remind you that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase any USA TODAY Co. securities. The webcast and audiocast are copyrighted material of USA TODAY Co. and may not be duplicated, reproduced, or rebroadcasted without our prior written consent. With that, I would like to turn the call over to Michael Reed, Chairman and CEO of the USA TODAY Co..

Speaker #2: Which resulted in $100 million in annualized savings. Some of which we expect to flow into the first half of 2026. A couple of other factors that will further improve 2026 results were completed in January of this year.

Please keep in mind, all comparisons are a year-over-year basis unless otherwise noted in addition we will be discussing non-gaap financial information during the call including same store. Revenues free, cash flow, total adjusted Eva total adjusted. Eva margin, segment, adjusted Eva segment, adjusted, Eva margin and adjusted net income attributable to USA Today. Company, you can find reconciliations of our non-gaap measures to the most comparable us gaap measures in the earning supplement. Lastly, I would like to remind you that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase any USA Today. Company Securities the webcast and audiocast are copyrighted material of USA Today company and may not be duplicated, reproduced or rebroadcast it without our prior written consent.

With that, I would like to turn a call over to Mike Reed chairman and CEO of USA Today company.

Speaker #2: First, we completed the transfer of the Detroit News. This strategic transaction strengthens the USA Today Network's audience across more than 200 local publications nationwide and reinforces our commitment to local journalism in the Detroit metropolitan area.

I am pleased to report that Q4 was by far our strongest quarter in recent years and we are excited to share our progress with you today.

I want to begin by highlighting some very important themes that you will hear throughout. This morning's call

Speaker #2: And second, as part of the transaction, we were able to reduce our firstly interest rate by 50 basis points, or about 3.5 million dollars annually, which will generate cash interest savings in 2026.

We delivered our strongest profitability in 4 years with total adjusted ibaas or passing 90 million and growing approximately 17% over the prior year period.

Margin expanded, 300 basis points to approximately 16%.

And represents our highest margin percentage in 5 years.

Michael Reed: I am pleased to report that Q4 was by far our strongest quarter in recent years. We are excited to share our progress with you today. I want to begin by highlighting some very important themes that you will hear throughout this morning's call. We delivered our strongest profitability in four years, with Total Adjusted EBITDA surpassing $90 million and growing approximately 17% over the prior year period. Margin expanded 300 basis points to approximately 16%. It represents our highest margin percentage in five years. Same-store revenue trends also achieved their strongest performance in nearly four years, driven by an expansion of digital revenues, which importantly returned to year-over-year growth on a same-store basis. Digital revenues represented more than 47% of total revenues, an all-time high. We also generated $32 million in free cash flow, reflecting significant growth over the prior year period.

Speaker #2: Overall, we believe the strength of our results demonstrates the traction we have gained and the long-term potential of the business we are building. Now, I'll turn to the operational highlights from the fourth quarter.

Same store Revenue. Trends also achieved their strongest performance in nearly 4 years driven by an expansion of digital revenues. Which importantly return to year-over-year growth on a same store basis, digital revenues represented more than 47% of total revenues and all-time high.

Speaker #2: Our digital strategy focuses on expanding our audience, deepening engagement, and maximizing monetization across the customer journey. In the fourth quarter, we continued to attract one of the largest digital audiences in the media industry, million average monthly unique visitors coming to our platforms.

We also generated 32 million in free, cash flow reflecting significant growth over the prior year period.

At the same time, we continue to strengthen our balance sheet, with an increased cash position, further debt, repayment, and firstly, net leverage reduced to 2.4 times.

Speaker #2: That scale combined with our ability to stay closely aligned with our readers' preferences drove another quarter of at least $1 billion page views per month domestically.

We exited 2025 with good momentum across the business, reflecting our strategy to scale, the largest audience in the nation, improve engagement and maximize Revenue growth.

Speaker #2: As a result, digital advertising revenues delivered a third consecutive quarter of year-over-year growth. Turning to our digital-only subscription business, as many of you know, we made a pivot in early 2025 on our digital-only subscription strategy.

We expect this momentum to carry into 2026 including full year growth in net income total adjusted Ava and free cash flow.

Improving same store, Revenue trends.

Michael Reed: At the same time, we continued to strengthen our balance sheet with an increased cash position, further debt repayment, firstly, net leverage reduced to 2.4 times. We exited 2025 with good momentum across the business, reflecting our strategy to scale the largest audience in the nation, improve engagement, and maximize revenue growth. We expect this momentum to carry into 2026, including full-year growth in net income, Total Adjusted EBITDA, and free cash flow, improving same-store revenue trends, total digital revenue growth, and continued deleveraging. Furthermore, our Q4 performance capped off what we believe was a defining year for USA TODAY Co., highlighted by significant milestones and a successful rebrand that fully embraces the ethos of a dynamic media company.

total digital Revenue growth and continued deleveraging

Speaker #2: We felt some pain on volume and revenue from that pivot early in the year. However, we have conviction around the merits of that pivot. We saw some early signs in Q3, and those were further reinforced in Q4.

Furthermore, our fourth quarter performance, capped off what we believed was a defining year for USA Today. Co highlighted by significant milestones and a successful Rebrand that fully Embraces, the ethos of a dynamic Media Company.

Speaker #2: Our digital-only subscription business delivered its strongest quarterly performance for the year. Digital-only ARPU reached a new high of $9.81 in the fourth quarter, up 24% year over year, and 11% sequentially.

We delivered our third consecutive year of free cash flow growth over the prior year.

Speaker #2: Digital-only subscription revenues also grew sequentially for the second consecutive quarter, and we realized year-over-year growth in December. We believe the actions we took in early 2025 are creating a more sustainable, predictable, and growth-oriented subscriber base.

We achieved positive net income for the first time since our merger in 2019.

We saw further expansion in our digital Revenue mix as I just mentioned over, 47% of our revenue is digital and we are well positioned to surpass 50% during 2026.

Speaker #2: Importantly, we expect digital-only subscription revenues to continue to grow year over year, contributing to the overall growth we expect in total digital revenue per user in our ecosystem.

Michael Reed: Before turning to our quarterly results, I wanna highlight some of these milestones that help to reinforce our confidence as we move into 2026. We delivered our third consecutive year of free cash flow growth over the prior year. We achieved positive net income for the first time since our merger in 2019. We saw further expansion in our digital revenue mix, as I just mentioned. Over 47% of our revenue is digital, and we are well positioned to surpass 50% during 2026. We executed several AI licensing agreements that we expect to improve digital revenue trends and be highly accretive to Total Adjusted EBITDA, including a recently signed partnership with Meta, which represents our largest AI licensing deal to date.

We executed several AI licensing agreements that we expect to improve digital Revenue Trends and be highly accretive to to Total adjusted Ava.

Including a recently signed partnership with meta.

Speaker #2: We see additional upside through pricing optimization, leveraging our full product portfolio, including our newly launched gaming hub, Play, and doubling down on local growth.

Which represents our largest AI licensing deal to date.

These agreements contributed positively to our fourth quarter results and position us for further growth in 2026.

Speaker #2: Combine this with the outstanding work our content team delivers through our high-quality journalism and broader content and experiences in categories consumers engage deeply with.

Speaker #2: We believe we have a compelling value proposition for both consumers and advertisers. With that, I'll turn the call to Kristin to outline some of the exciting initiatives underway to expand our content experiences and product portfolio.

With regard to Total adjusted Eva for full year. 2025, keep in mind that our results, reflect some larger asset sales completed during the year, including the austin-american Statesman. And without those sales total adjusted Eva de would have essentially been flat year-over-year.

We continued to strengthen our capital structure by repaying, approximately, 136 million of long-term debt, and repurchasing 14 million of convertible notes.

Speaker #2: Kristin?

Michael Reed: These agreements contributed positively to our Q4 results and position us for further growth in 2026. With regard to Total Adjusted EBITDA for full year 2025, keep in mind that our results reflect some larger asset sales completed during the year, including the Austin American-Statesman, and without those sales, Total Adjusted EBITDA would have essentially been flat year-over-year. We continued to strengthen our capital structure by repaying approximately $136 million of long-term debt and repurchasing $14 million of convertible notes. We reduced our first lien net leverage by 11% versus the prior year.

Speaker #1: Thank you, Mike. 2025 was a year defined by innovation, resilience, and strong collaboration across our media business. We rallied around new ideas, new approaches, new opportunities, and we implemented meaningful change across the organization that generated strong momentum in our key metrics.

And we reduced our first lean net leverage by 11% versus the prior year.

In the second half of the year. We also took meaningful actions to create a lower and more flexible cost base which resulted in 100 million in annualized savings.

Some of which we expect to flow into the first half of 2026.

Speaker #1: We sustained one of the largest digital audiences in the media industry, generated more than $1 billion page views per month, marking two consecutive years at that level, and maintained our overall reach even as we implemented a new subscription strategy.

A couple other factors that will further improve 2026 results were completed in January of this year.

Speaker #1: We also closed the year as the number one news and information provider among content producers in the country, based on unique visitors as measured by ComScore.

First, we completed the transfer of the Detroit news. This strategic, transaction, strengthens the USA. Today networks audience across more than 200 local Publications Nationwide.

Michael Reed: In the second half of the year, we also took meaningful actions to create a lower and more flexible cost base, which resulted in 100 million in annualized savings, some of which we expect to flow into the first half of 2026. A couple other factors that will further improve 2026 results were completed in January of this year. First, we completed the transfer of The Detroit News. This strategic transaction strengthens the USA TODAY Network's audience across more than 200 local publications nationwide and reinforces our commitment to local journalism in the Detroit metropolitan area. Second, as part of the transaction, we were able to reduce our first lien interest rate by 50 basis points, or about $3.5 million annually, which will generate cash interest savings in 2026.

And reinforces our commitment to local journalism in the Detroit, metropolitan area.

Speaker #1: Together, these results reinforce our position as the preferred platform for relevant and essential content and that includes sports. In the fourth quarter, we continued to enhance our NFL and NCAA sports hubs with new features and richer data designed to deliver more immersive mobile-first experiences.

And second as part of the transaction, we were able to reduce our first lean interest rate by 50 basis points, or about 3.5 million dollars, annually, which will generate cash interest Savings in 2026.

Speaker #1: As a result, we're driving stronger engagement as well as increased time spent with our content. And more broadly, these enhancements are elevating how we cover sports every day and how we show up during the moments that matter most to our sports readers and viewers.

Overall, we believe the strength of our results, demonstrates the traction we have gained and the long-term potential of the business. We are building.

Now, I'll turn to the operational highlights from the fourth quarter.

Our digital strategy focuses on expanding our audience, deepening engagement, and maximizing, monetization across the customer Journey.

Speaker #1: And from our key events, that means activating the full strength of our platform to drive scale, to deepen engagement, to maximize monetization across the consumer journey.

In the fourth quarter, we continue to attract 1 of the largest digital audiences in the media industry.

Speaker #1: That approach was evident during the Winter Olympics, NCAA Football Championship, and the Super Bowl. We generated millions of dollars in revenue across advertising, e-commerce, subscriptions, and merchandise, as well as visibility for the beloved USA Today ad meter, this is the tool recognized in the advertising industry for gauging consumer sentiment related to Super Bowl commercials.

With 179 million, average monthly unique, visitors coming to our platforms.

Michael Reed: Overall, we believe the strength of our results demonstrates the traction we have gained and the long-term potential of the business we are building. Now, I'll turn to the operational highlights from Q4. Our digital strategy focuses on expanding our audience, deepening engagement, and maximizing monetization across the customer journey. In Q4, we continued to attract one of the largest digital audiences in the media industry, with 179 million average monthly unique visitors coming to our platforms. That scale, combined with our ability to stay closely aligned with our readers' preferences, drove another quarter of at least 1 billion page views per month domestically. As a result, digital advertising revenues delivered a third consecutive quarter of year-over-year growth. Turning to our digital-only subscription business.

That scale combined with our ability to stay closely aligned with our reader preferences.

Drove another quarter of at least 1 billion page views per month. Domestically

As a result digital advertising, revenues delivered, a third consecutive quarter of year-over-year growth.

Turning to our digital only subscription business.

Speaker #1: Importantly, we see similar opportunities with global events such as the FIFA World Cup. Entertainment is another vertical where we're building meaningful momentum. We continue to execute strongly on our strategy to create standout experiences around topics our readers love, so celebrities, fashion, style, and doing so in the formats and platforms they prefer.

As many of, you know, we made a pivot in early 2025 on our digital only subscription strategy.

We felt some pain on volume and revenue from that pivot early in the year. However, we have conviction around the merits of that pivot.

We saw some early signs in Q3, and those were further reinforced in Q4.

Speaker #1: In the fourth quarter, we launched a reimagined entertainment hub designed to be more immersive and visually dynamic with a focus on vertical video, prominent photography, and richer storytelling formats, as we deliver scoops and exclusive content.

Our digital only subscription business delivered, its strongest quarterly performance for the year.

Digital only our Pooh reached a new high of $981 cents in the fourth quarter.

Up 24% year-over-year and 11% sequentially.

Michael Reed: As many of you know, we made a pivot in early 2025 on our digital-only subscription strategy. We felt some pain on volume and revenue from that pivot early in the year. We had conviction around the merits of that pivot. We saw some early signs in Q3, and those were further reinforced in Q4. Our digital-only subscription business delivered its strongest quarterly performance for the year. Digital-only ARPU reached a new high of $9.81 in the Q4, up 24% year-over-year and 11% sequentially. Digital-only subscription revenues also grew sequentially for the second consecutive quarter, and we realized year-over-year growth in December. We believe the actions we took in early 2025 are creating a more sustainable, predictable, and growth-oriented subscriber base.

Speaker #1: Importantly, these enhancements are driving deeper engagement and audience connection across our platform. As we've seen in sports, entertainment also attracts robust advertiser demand and it creates incremental opportunities to expand our commerce platform.

Digital only subscription revenues, also grew sequentially. For the second consecutive quarter.

And we realized year-over-year growth in December.

We believe the actions we took in early, 2025 are creating a more sustainable predictable and growth-oriented subscriber base.

Speaker #1: On that note, our digital-only subscription volumes in the fourth quarter reinforce that there is meaningful opportunity to further strengthen our core business, which in turn will allow us to unlock the company's full potential.

Importantly, we expect digital only subscription revenues to continue to grow year-over-year.

To the overall growth, we expect in total digital Revenue per user in our ecosystem.

Speaker #1: I'm encouraged that our subscription strategy drove both sequential and year-over-year growth in digital-only ARPU. As I emphasized throughout the year, local is our key differentiator for generating unique content, attracting subscribers, and connecting with communities in more profound ways.

Newly launched gaming Hub. Play

And doubling down on local growth.

combine this with the outstanding work, our content team delivers through our high-quality journalism,

Speaker #1: Where local stories feed national news, and national news connects with local relevance. With a combined reach of 125 million average monthly unique visitors coming from our US media network, we are well positioned to be essential and relevant in the local communities we serve.

and broader content and experiences in categories, consumers engage deeply with

Michael Reed: Importantly, we expect digital-only subscription revenues to continue to grow year-over-year, contributing to the overall growth we expect in total digital revenue per user in our ecosystem. We see additional upside through pricing optimization, leveraging our full product portfolio, including our newly launched gaming hub Play, and doubling down on local growth. Combine this with the outstanding work our content team delivers through our high-quality journalism and broader content and experiences in categories consumers engage deeply with, we believe we have a compelling value proposition for both consumers and advertisers. With that, I'll turn the call to Kristin to outline some of the exciting initiatives underway to expand our content experiences and product portfolio. Kristin?

we believe we have a compelling value proposition for both consumers and advertisers

Speaker #1: Our extensive portfolio of local brands allows us to deliver non-commoditized, hyper-local content that cannot be found anywhere else. From local government and politics to high school sports and community events, these are the stories that matter most to our readers and we are uniquely positioned to deliver them at scale.

With that, I'll turn the call to Kristen to outline some of the exciting initiatives underway to expand our content experiences and product portfolio. Kristen

Thank you. Mike 2025 was a year defined by Innovation resilience and strong collaboration across our media business.

We rallied around new ideas, new approaches New Opportunities, and we implemented meaningful change across the organization that generated strong momentum in our key metrics.

Speaker #1: Looking ahead, to 2026, we plan to further expand our subscription portfolio around high-interest areas and differentiated content experiences. Play is an example of that strategy in action.

Speaker #1: The launch is off to a solid start with early indicators showing audience expansion, deeper engagement, and growth in registrations and subscription starts. More broadly, games complement our sports and entertainment portfolio by driving habitual engagement, opening new monetization pathways, and supporting long-term growth.

Kristin Roberts: Thank you, Mike. 2025 was a year defined by innovation, resilience, and strong collaboration across our media business. We rallied around new ideas, new approaches, new opportunities, and we implemented meaningful change across the organization that generated strong momentum in our key metrics. We sustained one of the largest digital audiences in the media industry, generated more than 1 billion page views per month, marking 2 consecutive years at that level, and maintained our overall reach even as we implemented a new subscription strategy. We also closed the year as the number 1 news and information provider among content producers in the country, based on unique visitors as measured by Comscore. Together, these results reinforce our position as the preferred platform for relevant and essential content, and that includes sports.

We sustained 1 of the largest digital audiences in the media industry generated more than 1 billion page views per month, marking 2, consecutive years at that level and maintained our overall reach. Even as we implemented a new subscription strategy, we also closed the year as the number 1 news and information provider among content producers in the country based on unique visitors as measured by cam score.

Speaker #1: To recap, our progress in 2025 was a result of strong collaboration across the organization, and I want to thank the entire team. We see significant opportunities ahead, and we believe our strategic actions have positioned us for sustainable long-term revenue growth.

Speaker #1: Back to you, Mike.

Speaker #2: Thanks, Kristin. It's exciting to see the key initiatives underway to deepen engagement and enhance the overall monetization across our platform. It's so important to our overall digital revenue growth strategy.

Together these results, reinforce our position as the preferred platform for relevant and essential content and that includes Sports in the fourth quarter. We continue to enhance our NFL and NCAA Sports hubs with new features and Richard data designed to deliver more immersive mobile first experiences as a result. We're driving stronger engagement as well as increased time spent with our content. Now, more broadly, these enhancements are elevating how we cover Sports every day and how we show up during the moments that matter most to our Sports readers and viewers.

Speaker #2: Now, I want to turn to AI. High-quality, trustworthy content is foundational to a healthy, open web, particularly as AI agents become more common to help people discover and consume information.

Kristin Roberts: In Q4, we continued to enhance our NFL and NCAA sports hubs with new features and richer data designed to deliver more immersive mobile-first experiences. As a result, we're driving stronger engagement as well as increased time spent with our content. More broadly, these enhancements are elevating how we cover sports every day and how we show up during the moments that matter most to our sports readers and viewers. For marquee events, that means activating the full strength of our platform to drive scale, to deepen engagement, to maximize monetization across the consumer journey. That approach was evident during the Winter Olympics, NCAA Football Championship, and the Super Bowl. We generated millions of dollars in revenue across advertising, e-commerce, subscriptions, and merchandise, as well as visibility for the beloved USA TODAY Ad Meter.

Speaker #2: Our strategy in this evolving landscape is straightforward. Engage early with foundational partners, help shape the framework, maintain flexibility as monetization models evolve, and protect our long-term upside of this emerging ecosystem.

And from our key events. That means activating the full strength of our platform to drive scale to deepen engagement to maximize, monetization of the consumer Journey. That approach was evident during the winter Olympics. NCAA football championship and the Super Bowl we generated millions of dollars in Revenue across advertising, e-commerce, subscriptions, and merchandise, as well as visibility for the Beloved USA Today. Ad meter, this is the tool recognized in the advertising industry for gauging consumer sentiment related to Super Bowl commercials

Speaker #2: Consistent with that approach, in the fourth quarter, we entered into a multi-year strategic partnership with Meta to license both new and archival content from the USA Today network.

Importantly, we see similar opportunities with global events such as the FIFA World Cup.

Speaker #2: This partnership enables Meta's family of apps and devices to incorporate accurate, timely information rooted in credible local and national journalism. This multi-year AI licensing agreement, as well as the agreement we signed with Microsoft back in October, are high-margin and will contribute meaningfully to expected year-over-year revenue growth in digital other revenue.

Kristin Roberts: This is the tool recognized in the advertising industry for gauging consumer sentiment related to Super Bowl commercials. Importantly, we see similar opportunities with global events such as the FIFA World Cup. Entertainment is another vertical where we're building meaningful momentum. We continue to execute strongly on our strategy to create standout experiences around topics our readers love, so celebrities, fashion, style, and doing so in the formats and platforms they prefer. In Q4, we launched a reimagined entertainment hub designed to be more immersive and visually dynamic, with a focus on vertical video, prominent photography, and richer storytelling formats as we deliver scoops and exclusive content. Importantly, these enhancements are driving deeper engagement and audience connection across our platform. As we've seen in sports, entertainment also attracts robust advertiser demand, and it creates incremental opportunities to expand our commerce platform.

Speaker #2: And while we continue to engage with foundational partners and evaluate additional opportunities in this space, we are doing so with a disciplined, long-term lens.

Entertainment is another vertical where we're building meaningful momentum. We continue to execute strongly on our strategy to create standout experiences around topics. Our readers love so celebrities fashion style and doing. So in the formats and platforms, they prefer in the fourth quarter, we launched a re-imagined. Entertainment Hub designed to be more immersive and Visually Dynamic with a focus on vertical video, prominent photography and richer storytelling formats. As we deliver Scoops, and exclusive content. Importantly, these enhancements are driving deeper engagement and audience connection across our platform.

Speaker #2: Excluding Google, we currently block more than 99% of verified and unverified AI bots, attempting to scrape our content without licensing agreements in place. As we look ahead to 2026, we will continue to take an aggressive approach by actively sourcing AI-related revenue opportunities while continuing to protect the value of our content.

As we've seen in sports Entertainment. Also attracts robust Advertiser demand, and it creates incremental opportunities to expand our Commerce platform.

Speaker #2: And given the scale of our national and local footprint across the US and the UK, we are uniquely positioned to be a leading provider of real-time trusted content to these various technology companies.

On that note, our digital only subscription volumes in the fourth quarter, reinforce that there is Meaningful opportunity to further strengthen our Core Business, which in turn will allow us to unlock the company's full potential. I'm encouraged that our subscription strategy drove both sequential and year-over-year growth in digital. Only arpu. As I emphasized throughout the year, local is our key differentiator

Speaker #2: Now, turning to our local IQ segment. In the fourth quarter, segment adjusted EBITDA totaled approximately $17 million, while core platform ARPU remained near record highs and grew over the prior year period.

Kristin Roberts: On that note, our digital-only subscription volumes in Q4 reinforce that there is meaningful opportunity to further strengthen our core business, which in turn will allow us to unlock the company's full potential. I'm encouraged that our subscription strategy drove both sequential and year-over-year growth in digital-only ARPU. As I emphasized throughout the year, local is our key differentiator for generating unique content, attracting subscribers, and connecting with communities in more profound ways, where local stories feed national news and national news connects with local relevance. With a combined reach of 125 million average monthly unique visitors coming from our US media network, we are well positioned to be essential and relevant in the local communities we serve. Our extensive portfolio of local brands allows us to deliver non-commoditized, hyperlocal content that cannot be found anywhere else.

Data for generating unique content, attracting subscribers and connecting with communities in more profound ways, where local stories feed national news. And national news, connects with local relevance

Speaker #2: There is still work ahead with regard to customer count and revenue. However, the progress we made last year to strengthen our product foundation and sales strategy positions us well to drive stronger results across our key metrics and we expect to return to revenue growth during the back half of 2026.

With a combined reach of 125 million average, monthly unique, visitors coming from our Us. Media Network, we are well, positioned to be essential and relevant in the local communities. We serve our extensive portfolio of local Brands allows us to deliver non-commodity.

Speaker #2: Let me highlight a couple of important initiatives underway. These initiatives include expanding our CRM integrations, strengthening our search optimization capabilities, and advancing the features and functionalities of our AI-powered software solution, Dash.

High School sports and community events. These are the stories that matter most to our readers and we are uniquely positioned to deliver them at scale.

Speaker #2: These product enhancements are expected to increase client retention, deepen customer engagement, and improve measurable ROI across our platform. We also recognize that consumers are engaging with social media more than ever.

Speaker #2: And as a result, we are proactively expanding our social offerings to meet that demand. In January. Of this year, local IQ became a badge, TikTok marketing partner, joining a select group of companies recognized for quality, scale, and innovation in driving advertiser success.

Kristin Roberts: From local government and politics to high school sports and community events, these are the stories that matter most to our readers, and we are uniquely positioned to deliver them at scale. Looking ahead to 2026, we plan to further expand our subscription portfolio around high-interest areas and differentiated content experiences. PLAY is an example of that strategy in action. The launch is off to a solid start, with early indicators showing audience expansion, deeper engagement, and growth in registrations and subscription starts. More broadly, games complement our sports and entertainment portfolio by driving habitual engagement, opening new monetization pathways, and supporting long-term growth. To recap, our progress in 2025 was a result of strong collaboration across the organization, and I want to thank the entire team. We see significant opportunities ahead, and we believe our strategic actions have positioned us for sustainable long-term revenue growth.

Looking ahead to 2026. We plan to further expand our subscription portfolio around, high-interest areas, and differentiated content experiences. Play is an example of that strategy and action. The launch is off to a solid start with early indicators, showing audience expansion, deeper engagement and growth in registrations and subscription starts more, broadly games complement our sports and entertainment portfolio. By driving habitual, engagement opening, new monetization Pathways and supporting long-term growth.

Speaker #2: Being part of this exciting program means we have enhanced tools, deeper integration, and direct collaboration with a platform where over a billion people come to discover, connect, and take action.

To recap our progress in 2025 was a result of strong collaboration across the organization and I want to thank the entire team. We see significant opportunities ahead and we believe our strategic actions have positioned us for sustainable long-term Revenue growth.

Talk to you, Mike.

Speaker #2: In 2026, we plan to further align with evolving consumer behavior by improving and expanding our AI solutions across all parts of the sales funnel.

Thanks Kristen. It's exciting to see the key initiatives underway to deepen engagement and enhance the overall monetization across our platform. It's so important to our overall digital Revenue growth strategy.

Now, I want to turn to AI.

Speaker #2: Which in turn will strengthen our ability to help SMBs achieve their goals by driving measurable results and unlocking the full value of their digital investments.

High quality, trustworthy content is foundational to a healthy open web particularly as AI agents become more common to help people discover and consume information.

Speaker #2: I'd now like to turn the call over to Trisha to provide additional details and color around our 2025 fourth quarter financials and 2026 business outlook.

Our strategy in this evolving. Landscape is straightforward.

Engage early with foundational partners.

Kristin Roberts: Back to you, Mike.

Michael Reed: Thanks, Kristen. It's exciting to see the key initiatives underway to deepen engagement and enhance the overall monetization across our platform. It's so important to our overall digital revenue growth strategy. Now, I want to turn to AI. High-quality, trustworthy content is foundational to a healthy open web, particularly as AI agents become more common to how people discover and consume information. Our strategy in this evolving landscape is straightforward: engage early with foundational partners, help shape the framework, maintain flexibility as monetization models evolve, and protect our long-term upside of this emerging ecosystem. Consistent with that approach, in Q4, we entered into a multiyear strategic partnership with Meta to license both new and archival content from the USA TODAY Network. This partnership enables Meta's family of apps and devices to incorporate accurate, timely information rooted in credible local and national journalism.

Speaker #2: Trisha.

Speaker #3: Thank you, Mike. Good morning, everyone. Please keep in mind all comparisons are on a year-over-year basis unless otherwise noted. In the fourth quarter, total revenues were $585 million, a decrease of 5.8%, or $3.9% on a same-store basis, which marks a $290 basis point improvement over Q3 same-store trends.

Helped shape the framework maintain flexibility as monetization models. Evolved and protect our long-term upside of this emerging ecosystem.

Consistent with that approach. In the fourth quarter, we entered into a multi-year strategic partnership with meta to licensed both new and archival content from the USA Today Network.

Speaker #3: The strength in revenue was driven by renewed momentum across our digital portfolio, with three of four categories growing over the prior quarter. Importantly, this progress reflects both the early success and long-term potential of the strategic initiatives we've been building in 2025, including AI licensing agreements, more targeted subscription efforts, and expanded content in high-interest verticals such as sports and entertainment, where advertising performance and audience engagement remain strong.

This partnership enables meta's family of apps and devices to incorporate accurate, timely information, rooted, incredible, local and National journalism.

This multi-year AI licensing agreement, as well as the agreement. We signed with Microsoft back in October. Our high margin and will contribute meaningfully to expected year-over-year Revenue growth in digital other Revenue.

And while we continue to engage with foundational partners and evaluate additional opportunities, in this space, we are doing so with a disciplined long-term lens.

Speaker #3: Together, these initiatives reinforce our integrated model, enabling us to drive the highest possible digital revenue per user across all streams. Total adjusted EBITDA was $91.1 million in the fourth quarter, an increase of 16.6%, or $13 million.

Excluding Google. We currently block more than 99% of verified and unverified. AI Bots, attempting to scrape, our content without licensing agreements in place.

Michael Reed: This multiyear AI licensing agreement, as well as the agreement we signed with Microsoft back in October, are high margin and will contribute meaningfully to expected year-over-year revenue growth in Digital Other Revenue. While we continue to engage with foundational partners and evaluate additional opportunities in this space, we are doing so with a disciplined long-term lens. Excluding Google, we currently block more than 99% of verified and unverified AI bots attempting to scrape our content without licensing agreements in place. As we look ahead to 2026, we will continue to take an aggressive approach by actively sourcing AI-related revenue opportunities while continuing to protect the value of our content. Given the scale of our national and local footprint across the US and the UK, we are uniquely positioned to be a leading provider of real-time, trusted content to these various technology companies.

Speaker #3: Total adjusted EBITDA margin expanded to 15.6% in Q4, compared to 12.6% in the prior year quarter. The growth in total adjusted EBITDA was driven by the improving revenue trends ongoing cost discipline and continued execution against our operational priorities, expense management remains a critical priority, and in the fourth quarter, we drove a 9% reduction in operating costs and SG&A expenses compared to the prior year.

As we look ahead to 2026, we will continue to take an aggressive approach by actively sourcing. AI related Revenue opportunities while continuing to protect the value of our content.

And given the scale of our national and local footprint across the US and the UK, we are uniquely positioned to be a leading provider of real time. Trusted content to these various technology companies.

Now, turning to our local IQ segment.

In the fourth quarter segment, adjusted Eva totaled, approximately 17 million dollars.

Speaker #3: Total digital revenues in the fourth quarter were $277.5 million, growing 5.6% sequentially, an up slightly on a same-store basis. In the fourth quarter, total digital revenues surpassed $47% of total revenues.

While core platform are poo remain near record highs and grew over the prior year period.

Speaker #3: Digital advertising revenues increased 1.8% in the fourth quarter, marking the third consecutive quarter of year-over-year growth. This momentum was primarily driven by improved sell-through and stronger yield performance as our B2B sales teams more effectively leveraged the USA Today co-brand attract new national advertisers to our platform and deliver highly relevant scaled audiences.

There is still work ahead with regard to customer count and revenue. However, the progress we made last year to strengthen our product foundation and sales strategy positions us. Well to drive stronger results, Prosperity metrics and we expect to return to revenue growth during the back half of 2026.

Let me highlight a couple important initiatives underway.

Michael Reed: Now, turning to our LocaliQ segment. In Q4, Segment Adjusted EBITDA totaled approximately $17 million, while Core platform ARPU remained near record highs and grew over the prior year period. There is still work ahead with regard to customer count and revenue. The progress we made last year to strengthen our product foundation and sales strategy positions us well to drive stronger results across our key metrics, and we expect to return to revenue growth during the back half of 2026. Let me highlight a couple of important initiatives underway. These initiatives include expanding our CRM integrations, strengthening our search optimization capabilities, and advancing the features and functionalities of our AI-powered software solution, Dash. These product enhancements are expected to increase client retention, deepen customer engagement, and improve measurable ROI across our platform.

Speaker #3: This is an encouraging signal as we look ahead to digital revenue growth in 2026. In the fourth quarter, digital-only subscription revenues totaled $45.6 million, up 4.4% over Q3, and marks the second consecutive quarter of sequential growth.

These initiatives include expanding our CRM Integrations, strengthening our search optimization capabilities and advancing, the features, and functionalities of our AI powered software solution Dash.

These product enhancements are expected to increase client retention, deep in customer engagement and improved measurable Roi across our platform.

We also recognize that consumers are engaging with social media more than ever.

Speaker #3: Digital-only subscription volumes continue to reflect the intentional actions to optimize sustainable and predictable profitability by prioritizing long-term monetization over short-term volume. As a result, digital-only ARPU reached a record high of $9.81, up 23.7% year-over-year.

And as a result, we are proactively expanding our social offerings to meet that demand.

Group of companies recognized for quality.

Scale and innovation in driving Advertiser success.

Speaker #3: We expect digital-only ARPU to continue to grow in 2026 as we remain focused on attracting and retaining higher value subscribers while remaining smart in our pricing across the portfolio.

Being part of this exciting program, means we have enhanced tools.

Deeper integration and direct collaboration with a platform where over a billion people come to discover.

Michael Reed: We also recognize that consumers are engaging with social media more than ever, and as a result, we are proactively expanding our social offerings to meet that demand. In January of this year, LocaliQ became a badged TikTok Marketing Partner, joining a select group of companies recognized for quality, scale, and innovation in driving advertiser success. Being part of this exciting program means we have enhanced tools, deeper integration, and direct collaboration with a platform where over a billion people come to discover, connect, and take action. In 2026, we plan to further align with evolving consumer behavior by improving and expanding our AI solutions across all parts of the sales funnel, which in turn will strengthen our ability to help SMBs achieve their goals by driving measurable results and unlocking the full value of their digital investments.

Connect and take action.

Speaker #3: In the fourth quarter, our digital-other revenues, which include digital content syndication, affiliate, content, and AI partnerships and licensing revenues, grew 27.1% and grew approximately $10 million over Q3.

In 2026. We plan to further align with evolving consumer, Behavior by improving and expanding, our AI Solutions across all parts of the sales funnel.

Speaker #3: This growth reflects our recent agreement with Meta as well as the shift of revenue from Perplexity into the fourth quarter. As we continue to expand these AI licensing relationships, we expect variability in timing and recognition, given the structure of these agreements, relative to our more traditional revenue streams.

Which in turn will strengthen our ability to help smbs achieve their goals by driving measurable results, and unlocking the full value of their digital Investments.

Speaker #3: Our strategic efforts to enhance the quality and the overall value proposition of our print product continue to deliver encouraging results, while print and commercial revenues remained in secular decline; we are actively managing the long tail.

I'd now like to turn the call over to Trisha to provide additional details and color around our 2025 fourth quarter financials and 2026 business Outlook Trisha.

Thank you, Mike. Good morning, everyone.

please keep in mind all comparisons are on a year-over-year basis unless otherwise noted

Speaker #3: The actions taken to improve the subscriber experience have helped moderate decreases over the past several quarters, we remain focused on managing the print portfolio efficiently and profitably, and we expect this disciplined approach to continue into the year ahead.

In the fourth quarter, total revenues were 585 million. A decrease of 5.8% or 3.9% on a same store basis, which marks the 290 basis point improvement over Q3 same store trends,

Michael Reed: I'd now like to turn the call over to Tricia to provide additional details and color around our Q4 2025 financials and 2026 business outlook. Tricia?

Speaker #3: Turning to the USA Today media segment, segment revenue decreased 7.3% in the fourth quarter. Segment adjusted EBITDA totaled $69.9 million, increasing 19.3% year-over-year, while segment adjusted EBITDA margin expanded 340 basis points, to 15.6%.

Trisha Gosser: Thank you, Mike. Good morning, everyone. Please keep in mind all comparisons are on a year-over-year basis, unless otherwise noted. In Q4, total revenues were $585 million, a decrease of 5.8% or 3.9% on a same-store basis, which marks a 290 basis point improvement over Q3 same-store trends. The strength in revenue was driven by renewed momentum across our digital portfolio, with three of four categories growing over the prior quarter. Importantly, this progress reflects both the early success and long-term potential of the strategic initiatives we've been building in 2025, including AI licensing agreements, more targeted subscription efforts, and expanded content in high-interest verticals such as sports and entertainment, where advertising performance and audience engagement remain strong....

Speaker #3: Turning to NewsQuest, total revenues in the fourth quarter were $60.1 million, up 3.1% year-over-year, representing the third consecutive quarter of revenue growth. In the fourth quarter, segment adjusted EBITDA was $13.5 million, up 20.7% year-over-year, while segment adjusted EBITDA margin expanded 330 basis points, to 22.5%.

The strength and revenue was driven by renewed momentum across our digital portfolio. With 3 of 4 categories, growing over the prior quarter. Importantly, this progress reflects both the early success and long-term potential of the Strategic initiatives. We've been building in 2025 including AI licensing. Agreements more targeted subscription efforts and expanded content in high interest verticals such as sports and entertainment where advertising performance and audience engagement remains strong

Together these initiatives, reinforce our integrated model, enabling us to drive the highest possible digital Revenue per user across all streams.

Total adjusted, evida with 91.1 million, in the fourth quarter, in increase of 16.6% or 13 million.

Speaker #3: Looking at our localized Q segment, core platform revenue in the fourth quarter was $107.3 million, and segment adjusted EBITDA totaled $16.6 million. We ended the quarter with approximately $12,700 core platform average customer count.

Total adjusted ibida margin, expanded to 15.6% in Q4, compared to 12.6% in the prior year quarter.

The growth in total adjusted, evida with driven by the improving Revenue Trends ongoing cost discipline and continued execution against our operational priorities.

Trisha Gosser: Together, these initiatives reinforce our integrated model, enabling us to drive the highest possible digital revenue per user across all streams. Total Adjusted EBITDA was $91.1 million in Q4, an increase of 16.6% or $13 million. Total Adjusted EBITDA margin expanded to 15.6% in Q4, compared to 12.6% in the prior year quarter. The growth in Total Adjusted EBITDA was driven by the improving revenue trends, ongoing cost discipline, and continued execution against our operational priorities. Expense management remains a critical priority, and in Q4, we drove a 9% reduction in operating costs and SG&A expenses compared to the prior year. Total digital revenues in Q4 were $277.5 million, growing 5.6% sequentially and up slightly on a same-store basis.

Speaker #3: And core platform ARPU remained near record highs, at approximately 2,800, reflecting growth of 1.4%. Let's now turn to the balance sheet. At the end of 2025, our cash balance was $90.2 million, and net debt stood at $887.1 million.

Expense management remains a critical priority. And in the fourth quarter, we drove a 9% reduction in operating costs and sgna expenses. Compared to the prior year.

Total digital revenues in the fourth quarter were 277.5 million. Growing 5.6% sequentially and up slightly on the same store basis.

Speaker #3: Free cash flow in the fourth quarter increased by $27.7 million, to $31.5 million, and for the full year, free cash flow totaled $64.2 million, an increase of approximately 10% versus the prior year.

In the fourth quarter, total digital revenues surpassed 47% of total revenues.

Digital advertising revenues increased 1.8% in the fourth quarter, marking the third consecutive quarter of year-over-year growth.

Speaker #3: We ended 2025 with $977.3 million of total debt, reducing firstly net leverage by 11% to 2.4 times. In the fourth quarter, we repaid $19.1 million of long-term debt, and for the full year, we repaid approximately $136 million of total long-term debt.

This momentum was primarily driven by improved sell through and stronger yield performance. As our B2B sales teams more effectively leverage, the USA Today, co-brand attract New National advertisers to our platform and deliver highly relevant scaled audiences.

This is an encouraging signal. As we look ahead to digital Revenue growth in 2026.

Speaker #3: Our net loss of $30.1 million for the quarter reflects a tax provision of 73.6 million, reflecting the expected large quarterly variances in our provision.

Trisha Gosser: In Q4, total digital revenues surpassed 47% of total revenues. Digital advertising revenues increased 1.8% in Q4, marking the third consecutive quarter of year-over-year growth. This momentum was primarily driven by improved sell-through and stronger yield performance as our B2B sales teams more effectively leverage the USA TODAY co-brand, attract new national advertisers to our platform, and deliver highly relevant scaled audiences. This is an encouraging signal as we look ahead to digital revenue growth in 2026. In Q4, digital-only subscription revenues totaled $45.6 million, up 4.4% over Q3, and marked the second consecutive quarter of sequential growth. Digital-only subscription volumes continue to reflect the intentional actions to optimize sustainable and predictable profitability by prioritizing long-term monetization over short-term volume.

In the fourth quarter digital only subscription revenues totaled 45.6 million of 4.4% over Q3 and marked the second consecutive quarter of sequential growth.

Speaker #3: For the full year of 2025, our tax benefit was $3 million, and our full year net income was $1.7 million. Subsequent to year-end, we completed the transfer of the Detroit News.

Digital only subscription volumes, continue to reflect the intentional actions to optimize sustainable and predictable profitability by prioritizing long-term monetization over short-term volume.

Speaker #3: This follows the conclusion of the long-running joint operating agreement between the Detroit Free Press and the Detroit News, which ended on December 28, 2025, under which the results for both titles were consolidated into our financial results.

As a result, digital only arpu reached a record high of $9.81 up 23.7% year-over-year.

Speaker #3: Now, with common ownership, we can operate more seamlessly in a strategically important market, creating opportunities to better scale audience, strengthen local journalism, and accelerate digital growth, while continuing to support distinct newsroom voices for both titles.

We expect digital only rpu to continue to grow in 2026 as we remain focused on attracting and retaining higher value subscribers while remaining Smart in our pricing across the portfolio.

Speaker #3: The transfer of the Detroit News was funded in part by cash on hand and $15 million of additional principal under our 2029 term loan facility.

in the fourth quarter, our digital other revenues which includes digital content syndication affiliate, content and AI Partnerships and Licensing, revenues grew 27.1% and grew approximately 10 million over Q3

Trisha Gosser: As a result, digital-only ARPU reached a record high of $9.81, up 23.7% year-over-year. We expect digital-only ARPU to continue to grow in 2026 as we remain focused on attracting and retaining higher-value subscribers, while remaining smart in our pricing across the portfolio. In Q4, our Digital Other Revenue, which includes digital content syndication, affiliate content, and AI partnerships and licensing revenues, grew 27.1% and grew approximately $10 million over Q3. This growth reflects our recent agreement with Meta, as well as the shift of revenue from Perplexity into Q4. As we continue to expand these AI licensing relationships, we expect variability in timing and recognition given the structure of these agreements relative to our more traditional revenue streams.

Speaker #3: In connection with the transaction, we also secured a half percentage point reduction in the interest rate on the 2029 term loan. And the first required amortization payment, as per the amendment agreement, shifted to June 30.

This growth reflects our recent agreement with meta as well as the shift of revenue from perplexity into the fourth quarter.

AI licensing relationships. We expect variability in timing and recognition given the structure of these agreements relative to our more traditional revenue streams.

Speaker #3: As we look forward to 2026, we intend to build on the successes of 2025. In Q4, total adjusted EBITDA grew approximately 17% over the prior year, and we expect higher levels of total adjusted EBITDA growth in Q1, as revenue trends improve in part due to the impact of AI licensing and as we cycle the impact of the sale of the Austin American Statesman.

Speaker #3: As new revenue streams scale, we expect to have more consistent total adjusted EBITDA across the quarters in 2026, which may result in greater year-over-year variances by quarter than has been typical.

Our strategic efforts to enhance the quality and the overall value proposition of our print product continued to deliver encouraging results while print and Commercial revenues remained in secular decline. We are actively managing the long tail, the actions taken to improve the subscriber experience have helped moderate decreases over the past several quarters. We remain focused on managing the print portfolio, efficiently and profitably. And we expect this disciplined approach to continue into the year ahead.

Turning to the USA Today media, segment, segment Revenue decreased 7.3% in the fourth quarter.

Speaker #3: We finished 2025 with a market improvement in our same-store revenue trends, and we expect to continue to improve on that trend throughout the year, which we believe will lead us to same-store revenue growth late in 2026.

Trisha Gosser: Our strategic efforts to enhance the quality and the overall value proposition of our print product continue to deliver encouraging results. While print and commercial revenues remained in secular decline, we are actively managing the long tail. The actions taken to improve the subscriber experience have helped moderate decreases over the past several quarters. We remain focused on managing the print portfolio efficiently and profitably, and we expect this disciplined approach to continue into the year ahead. Turning to the USA TODAY Media segment revenue decreased 7.3% in the Q4. Segment Adjusted EBITDA totaled $69.9 million, increasing 19.3% year-over-year, while Segment Adjusted EBITDA margin expanded 340 basis points to 15.6%.

Segment adjusted, evida totaled, 69.9 million increasing 19.3% year-over-year while segment, adjusted IBA margin expanded 340 basis points to 15.6%.

Speaker #3: For the full year, we expect total digital revenues to remain at year-over-year growth on a same-store basis, driving more meaningful growth and exceeding 50% of total revenues during the year.

turning to newsquest Total revenues in the fourth quarter were 60.1, million of 3.1% year-over-year, representing the third consecutive quarter of Revenue growth

Speaker #3: We expect total revenues to be flat to down in the low single digits on a same-store basis, and expect to continue to drive ongoing improvement in year-over-year trends through the year.

In the fourth quarter segment, adjusted Eva with 13.5 million of 20.7% year-over-year. While segment adjusted Eva margin expanded 330 basis points to 22.5%.

Speaker #3: With the expectation of improving revenue trends and the impact of the cost reductions made in 2025, we expect full-year growth in net income attributable to USA Today Co.

Speaker #3: and in total adjusted EBITDA. These year-over-year gains in profitability still allow us to invest in our business, in data technology, product development, and people, which we believe enables us to create a sustainably growing media company.

Looking at our local IQ segment. Core platform Revenue in the fourth quarter was 107.3 million and segment adjusted IBA totaled 16.6 million.

Trisha Gosser: Turning to Newsquest, total revenues in Q4 were $60.1 million, up 3.1% year-over-year, representing the 3rd consecutive quarter of revenue growth. In Q4, Segment Adjusted EBITDA was $13.5 million, up 20.7% year-over-year, while Segment Adjusted EBITDA margin expanded 330 basis points to 22.5%. Looking at our LocaliQ segment, Core platform revenue in Q4 was $107.3 million, and Segment Adjusted EBITDA totaled $16.6 million. We ended the quarter with approximately 12,700 Core platform average customer count, and Core platform ARPU remained near record highs at approximately $2,800, reflecting growth of 1.4%. Let's now turn to the balance sheet.

We ended the quarter with approximately 12,700 core platform. Average customer counts and core platform. Rpu remained near record highs at approximately 2,800 reflecting growth of 1.4%.

Speaker #3: We also expect double-digit year-over-year growth in cash provided by operating activities, as well as free cash flow, with a slight usage of cash in the first quarter, and more meaningful free cash flow generation occurring over the remaining three quarters of the year.

Let's now turn to the balance sheet.

At the end of 2025, our cash balance was 90.2 million and net debt. Stood at 887.1 million.

Speaker #3: Overall, our strong finish to 2025 reinforces the confidence we have in our strategy, and we believe positions us well to build further momentum in 2026.

Speaker #3: I will now hand it back to the operator for questions, and then we will go back to Mike for some closing thoughts.

Free cash flow in the fourth quarter increased by 27.7 million to 31.5 million and for the full year, free cash flow. Total is 64.2 million an increase of approximately 10% versus the prior year.

Speaker #1: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

We ended 2025 with 977.3 million of total debt. Reducing firstly, net, leverage by 11% to 2.4 times.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Trisha Gosser: At the end of 2025, our cash balance was $90.2 million. Net debt stood at $887.1 million. Free cash flow in Q4 increased by $27.7 million to $31.5 million. For the full year, free cash flow totaled $64.2 million, an increase of approximately 10% versus the prior year. We ended 2025 with $977.3 million of total debt, reducing first lien net leverage by 11% to 2.4x. In Q4, we repaid $19.1 million of long-term debt. For the full year, we repaid approximately $136 million of total long-term debt.

In the fourth quarter, we repaid 19.1 million of long-term debt. And for the full year, we repay approximately 136 million of total long-term debt.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And one moment, please, while we pull for questions.

Our net loss of 30.1 million for the quarter, reflects a tax provision of 73.6, million reflecting the expected large, quarterly variances in our provision.

Speaker #1: And the first question today is coming from Juliano Bologna from Compass Point. Juliano, your line is live.

For the full year of 2025, our tax benefit was 3 million, and our full year, net income was 1.7 million.

Speaker #2: Thank you all. Good morning on you. Great to continue performance. As a first question, the fourth quarter showed great revenue improvement. Do you expect that to continue in '26, and what do you think will drive that?

Speaker #3: Hey, yeah. Good morning, Juliano. Thanks. The answer's yes. And from a high level, the driver is continued digital revenue growth, digital revenue improvement. But let me be a little more specific.

Trisha Gosser: Our net loss of $30.1 million for the quarter reflects a tax provision of $73.6 million, reflecting the expected large quarterly variances in our provision. For the full year of 2025, our tax benefit was $3 million, and our full year net income was $1.7 million. Subsequent to year-end, we completed the transfer of The Detroit News. This follows the conclusion of the long-running joint operating agreement between the Detroit Free Press and The Detroit News, which ended on 28 December 2025, under which the results for both titles were consolidated into our financial results. Now, with common ownership, we can operate more seamlessly in a strategically important market, creating opportunities to better scale audience, strengthen local journalism, and accelerate digital growth while continuing to support distinct newsroom voices for both titles.

Subsequent to year end, we completed the transfer of the Detroit news, this follows the conclusion of the long-running joint operating agreement between the Detroit Free Press, and the Detroit News, which ended on December 28th, 2025, under which the results for both titles were Consolidated into our financial results.

Speaker #3: And these are all items that we actually covered in the call this morning. First is our focus on the size of our audience and continuing to grow that audience.

Speaker #3: But more importantly, improved engagement with those folks coming to our platform. And that is leading and will continue in '26 to lead to improved consumer revenue.

Now with common ownership, we can operate more seamlessly in a strategically important Market creating opportunities to better scale. Audience strengthen local journalism and accelerate digital growth. While continuing to support distinct Newsroom, voices for both titles.

the transfer of the Detroit News was funded in part by cash on hand and 15 million of additional principal under our 2029 Term Loan facility,

Speaker #3: And we look at total RPU across the platform, which comes from advertising, subscription, and affiliate. And we're looking to continue to grow that total RPU per consumer on the platform through improved engagement as well as growing the number of users on the platform.

In connection with the transaction. We also secured a half percentage. Point reduction in the interest rate on the 2029 Term Loan.

And the first required amortization payment as per the amendment agreement shifted to June 30th.

Speaker #3: Second, we talked about it a bit in our remarks here this morning, is both our current AI licensing deals and any new AI deals we do this year will all be growth, lead to growth here in 2026.

As we look forward to 2026, we intend to build on the successes of 2025.

Trisha Gosser: The transfer of The Detroit News was funded in part by cash on hand and $15 million of additional principal under our 2029 Term Loan facility. In connection with the transaction, we also secured a half percentage point reduction in the interest rate on the 2029 Term Loan, and the first required amortization payment, as per the amendment agreement, shifted to 30 June. As we look forward to 2026, we intend to build on the successes of 2025. In Q4, Total Adjusted EBITDA grew approximately 17% over the prior year, and we expect higher levels of Total Adjusted EBITDA growth in Q1 as revenue trends improve, in part due to the impact of AI licensing and as we cycle the impact of the sale of the Austin American-Statesman.

Speaker #3: And improving our revenue trends and third, I'd highlight our improved digital subscription revenue trends. We started to really see that shine in the fourth quarter including growth that we saw in December from a year-over-year perspective.

In Q4 total adjusted, Eva grew approximately 17% over the prior year and we expect higher levels of total adjusted Eva. Growth in q1 as Revenue, Trends improve in part due to the impact of AI licensing. And as we cycle the impact of the sale of the austin-american Statesman,

Speaker #3: So with that return to growth, we expect those revenue trends to be much improved in 2026, leading to overall revenue improvement on the digital side.

Is by quarter and then has been typical.

Speaker #3: And then finally, we do expect to improve our DMS revenue trends. We expect to return to growth later in the year, second half of 2026.

Speaker #3: And we outlined the various action items we have underway in the DMS business as well. I think to summarize this, it's all the good news here is these are all action items that we have been putting in place during 2024 and '25.

We finished 2025 with a market improvement in our same store Revenue Trends and we expect to continue to improve on that Trend throughout the year, which we believe will lead us to same store Revenue, growth late in 2026.

For the full year, we expect total digital revenues to remain at year-over-year growth on a same store basis, driving more meaningful growth and exceeding, 50% of total revenues during the year.

Trisha Gosser: As new revenue streams scale, we expect to have more consistent Total Adjusted EBITDA across the quarters in 2026, which may result in greater year-over-year variances by quarter than has been typical. We finished 2025 with a market improvement in our same-store revenue trends. We expect to continue to improve on that trend throughout the year, which we believe will lead us to same-store revenue growth late in 2026. For the full year, we expect total digital revenues to remain at year-over-year growth on a same-store basis, driving more meaningful growth and exceeding 50% of total revenues during the year. We expect total revenues to be flat to down in the low single digits on a same-store basis. We expect to continue to drive ongoing improvement in year-over-year trends through the year.

Speaker #3: They're not things that we yet need to do. So they're things that we're starting to reap the rewards for in our financial statements now as we really started to see in Q4.

We expect total revenues to be flat to down in the low single digits on a same store basis and expect to continue to drive ongoing Improvement in year-over-year, Trends through the year.

Speaker #3: And these things will all drive growth, better improved trends in growth in 2026. So pretty excited about the outlook.

Speaker #2: That's very helpful. And just as a follow-up, you get strong guidance for one Q and 2026. Free cash flow. And also, 2026 free cash flow guidance.

With the expectation of improving Revenue Trends, and the impact of the cost reductions made in 2025, we expect full year growth, in net income attributable to USA Today, Co and in total adjusted ibida.

Speaker #2: But what was indicated was a slight usage of cash in the first quarter. Can you give us what's driving that?

Speaker #4: Hey, good morning, Juliano. This is Trisha. Yeah, that usage of cash in Q1, it's largely seasonality and timing. It's consistent, I think, with what you've seen historically from a working capital perspective from us.

These year-over-year gains in profitability still allow us to invest in our business in data, technology, product development and people, which we believe enables us to create a sustainably growing Media Company.

Speaker #4: And year over year, there's also some minor timing changes in our interest payments. But you're right. We did guide to a pretty strong quarter for Q1.

Trisha Gosser: With the expectation of improving revenue trends and the impact of the cost reductions made in 2025, we expect full year growth in net income attributable to USA TODAY Co. and in Total Adjusted EBITDA. These year-over-year gains in profitability still allow us to invest in our business, in data, technology, product development, and people, which we believe enables us to create a sustainably growing media company. We also expect double-digit year-over-year growth in cash provided by operating activities, as well as free cash flow, with a slight usage of cash in Q1 and more meaningful free cash flow generation occurring over the remaining 3 quarters of the year. Overall, our strong finish to 2025 reinforces the confidence we have in our strategy and we believe positions us well to build further momentum in 2026.

We also expect double-digit year-over-year growth in cash provided by operating activities as well as free cash flow with a slight usage of cash in the first quarter and more meaningful free cash flow generation occurring over the remaining 3 quarters of the year.

Speaker #4: We took a really meaningful step forward in our same-store revenue trends in Q4. Almost 3 percentage points. And we expect, as Mike mentioned, to take another step forward here in Q1.

Overall, our Strong finish to 2025 reinforces the confidence, we have in our strategy and we believe positions as well to build further momentum in 2026.

I will now hand it back to the operator for questions, and then we will go back to Mike for some closing thoughts.

Speaker #4: And then if you look at our Q4 adjusted EBITDA, we grew about 17% year over year and above 20% if you take out that impact of the asset sales we made earlier this year, mainly Austin.

Thank you at this time, it will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad,

A confirmation tone. Will indicate your line is in the question queue?

Speaker #4: So we'll cycle Austin the sale of Austin mid-quarter in Q1. And so you take that with a strong revenue and the flow-through of the cost actions that we put in place in Q3.

You may press star 2 if you would like to remove your question from the queue.

Speaker #4: We expect similar to higher EBITDA growth in Q1 on a percentage basis than Q4. So as Mike said, we've been building on this for '24 and '25.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys on 1 moment, please while we pull for questions.

Trisha Gosser: I will now hand it back to the operator for questions, and then we will go back to Mike for some closing thoughts.

On the first question today, is coming from Giuliano bologna from Compass points. Giuliano your line is live.

Speaker #4: And it's really encouraging that we're starting to see the impacts of our strategy play out and our results. The steps we took on subscription revenue is resulting in more sustainably growing digital business.

Operator: Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. The first question today is coming from Giuliano Bologna from Compass Point. Giuliano, your line is live.

Thank you all. Good morning on you, great. Great to the continued performance. As a first question, you know the fourth quarter showed great Revenue improvements, do you expect us to continue in 26 and what do you think we'll drive that

Speaker #4: The efforts we've taken to monetize our content in multiple ways, including these licensing deals, leading to improving revenue trends and what we think is going to be a really strong Q1 and over the long-term sustainable growth.

Hey yeah, good. Good morning Giuliano thanks. Um, uh the the the answer is yes, and you know from a high level of the driver is uh did continue digital Revenue growth, digital Revenue Improvement

Speaker #2: That's very helpful. Congrats on the new high in digital. RPU. As our approach is $10, do you see more upside from there?

Speaker #5: Mike, I'm going to take this one. Juliano, it's Kristin. We feel really great about the progress. Digital RPU hitting digital-only RPU hitting 9.81 in Q4.

Giuliano Bologna: Thank you. Good morning, everyone. Great to see the continued performance. As a first question, you know, the Q4 showed great revenue improvement. Do you expect that to continue in 2026, and what do you think will drive that?

But uh let let me be a little more specific and and these are all items that we actually covered in the call this morning. Um, first is our focus on, you know, the scale the size of our audience and continuing to grow that audience. But more importantly, improved engagement with those folks coming to our platform and that is leading and will continue in 26 to lead to improve.

Speaker #5: And that's up 24% year over year. And digital-only subscription revenue growing sequentially. Again, so in terms of upside, I think we continue to see room to grow RPU in 2026.

Michael Reed: Hey, yeah. Good morning, Giuliano. Thanks. The answer is yes. You know, from a high level, the driver is did continued digital revenue growth, digital revenue improvement. Let me be a little more specific, and these are all items that we actually covered in the call this morning. First is our focus on, you know, the scale, the size of our audience and continuing to grow that audience, but more importantly, improved engagement with those folks coming to our platform. That is leading and will continue in 2026 to lead to improve consumer revenue.

Uh, uh, consumer revenue and we look at total rpool the platform which comes from advertising subscription and affiliate. And we're looking to continue to grow, that total rpu.

Speaker #5: And I think we're going to do that through a couple of levers, if there are smarter pricing, smarter packaging across the portfolio. There's better retention and lifecycle marketing.

Per consumer on the platform through improved engagement, as well as growing the number of users on the platform.

Speaker #5: I think there's also an expanding product set like Play, right? And we're using Play and these other products to drive habitual engagement and, in turn, some incremental monetization there.

Speaker #5: On the RPU versus volume issue, our philosophy remains optimize long-term value, optimize long-term predictability. We did intentionally trade off some short-term volume earlier in '25.

Second, uh, we talked about it a bit in our remarks here. This morning is both our current AI licensing deals and any new AI deals. We do this year will, uh, all be growth, uh, lead to growth here in 2026 and, and improving our Trend Improvement, our Revenue Trends and

Michael Reed: We look at total ARPU across the platform, which comes from advertising, subscription, and affiliate, and we're looking to continue to grow that total ARPU per consumer on the platform through improved engagement as well as growing the number of users on the platform. Second, we talked about it a bit in our remarks here this morning, is both our current AI licensing deals and any new AI deals we do this year will all be growth, lead to growth here in 2026 and improve our revenue trends. Third, I'd highlight our improved digital subscription revenue trends. We started to really see that shine in the Q4, including growth that we saw in December from a year-over-year perspective.

Third. I'd highlight our improved digital subscription Revenue Trends. We started to really see that shine in the fourth quarter.

Speaker #5: But what you're seeing now is a healthier and a more sustainable subscriber base. And we do expect that digital-only subscription revenue will continue to grow year over year.

Speaker #5: As we execute on this strategy. So I hope that helps, Juliano.

Including uh um uh growth that we saw in December, from a year-over-year perspective. So with that return to growth, we expect those Revenue Trends to be much improved in 2026 leading to overall Revenue Improvement in on the digital side. And then finally,

Speaker #2: That's very helpful. And switching over a little to kind of the meta topic, but you announced the meta AI deal in 4Q. And how should we think about AI licensing revenue in 2026?

We do expect to improve our DMS Revenue Trends. We expect to return to growth later in the year second half of 2026. And we outlined the various action items, we have underway in the DMS business as well. I think.

Speaker #3: Yeah. Juliano, it'll be a good growth category. And I would think about it in terms of '26 and beyond. It's a multi-year good growth category for us, we believe.

Michael Reed: With that return to growth, we expect those revenue trends to be much improved in 2026, leading to overall revenue improvement on the digital side. Finally, we do expect to improve our DMS revenue trends. We expect to return to growth later in the year, second half of 2026. We outlined the various action items we have underway in the DMS business as well. I think to summarize this, the good news here is these are all action items that we have been putting in place during 2024 and 25. They're not things that we yet need to do, so they're things that we're starting to reap the rewards for in our financial statements now, as we really started to see in Q4.

Speaker #3: I would like to introduce just a little bit of caution here as we think about the AI licensing revenue opportunity. We do expect significant growth in 2026, but also it's still a developing marketplace.

Pretty excited about the Outlook.

Speaker #3: And so we're learning a lot as we go forward. We have learned that the deals can be lumpy and they can take some time to get done.

Speaker #3: So the past 12 months, we made a lot of progress. We have some great deals in place now. So we do expect nice growth in 2026.

That's very helpful and you know just as a follow up yeah you get a strong guidance for 1 q and 2026 um free cash flow and and also you know between free cash flow guidance. Uh but what was indicated was just like you said your cash in the first quarter. Give you some what's driving that

Hey, good morning. Giuliano this.

Is Tricia.

yeah, that

Speaker #3: But our eye on the price here is the longer term. Opportunity which we see from more deals to come as this overall business model and this ecosystem continues to evolve.

Michael Reed: These things will all drive growth for better improved trends and growth in 2026. Pretty excited about the outlook.

Speaker #3: So pretty excited, but a little bit of cautiousness in the near term. It's a growth category, but also it's still an evolving category. And we're playing the long game here too.

Giuliano Bologna: That's very helpful. You know, just as a follow-up, you know, you get strong guidance for Q1 and 2026 free cash flow, and also, you know, 2026 free cash flow guidance. What was indicated was a slight usage of cash in Q1. Can you say what's driving that?

Speaker #2: That's helpful. And when you talk about kind of the growth expectation in '26, is that mostly from the existing contracts you've already signed, or is there considering potential new deals that you could sign in '26?

Trisha Gosser: Hey, good morning, Giuliano. This is Tricia. Yeah, that usage of cash in Q1, it's largely seasonality and timing. It's consistent, I think, with what you've seen historically from a working capital perspective from us. Year-over-year, there's also some minor timing changes in our interest payments. You're right, we did guide to a pretty strong quarter for Q1. We took a really meaningful step forward in our same-store revenue trends in Q4, almost 3 percentage points, and we expect, as Mike mentioned, to take another step forward here in Q1. If you look at our Q4 Adjusted EBITDA, we grew about 17% year-over-year and above 20% if you take out that impact of the asset sales we made earlier this year, mainly, Austin.

Speaker #3: Yeah, it's both, Juliano. It's existing deals. So we have some banked growth already with the deals we've signed. But we do expect additional growth through more deals to be signed and more deals to come.

Q1. It's largely a seasonality and timing. It's consistent. I think with what you've seen his story, from a working, capital from us, uh, and year-over-year. There's also some minor timing changes in our interest payments, but you're right, uh, we did guide to a pretty strong quarter for q1. Uh, we took a really meaningful step forward in our same store, Revenue Trends in Q4, almost 3 percentage points. And we expect as Mike mentioned to take another step forward here in q1. And then if you look at our Q4 adjusted Eva, we grew about 17% year-over-year and above 20%. If you take out that impact of the asset sales, we made earlier this year, mainly uh, often

Speaker #3: So both.

Speaker #2: That's very helpful. And then as a final one, you made very strong progress on debt reduction in '25. Can you provide a little more detail on 2026 debt paid on expectations and what you're targeting from a first loan debt leverage perspective?

Speaker #5: Yeah, absolutely. You're right. We did make great progress in 2025. We repaid approximately $135 million of long-term debt in a year. And that brought us down to about 2.4 times first loan net leverage in the year.

Speaker #5: And we remain focused on bringing that number down again in 2026. So, our approach this year is going to be that debt is funded primarily through our operating performance and our free cash flow.

Trisha Gosser: We'll cycle Austin, the sale of Austin mid-quarter in Q1, and you take that with the strong revenue and the flow-through of the cost actions that we put in place in Q3, we expect similar to higher EBITDA growth in Q1 on a percentage basis in Q4. As Mike said, you know, we've been building on this for 2024 and 2025, and it's really encouraging that we're starting to see the impacts of our strategy play out in our results. The steps we took on subscription revenue is resulting in more sustainably growing digital business. The efforts we've taken to monetize our content in multiple ways, including these licensing deals, leading to improving revenue trends and what we think is gonna be a really strong Q1, and over the long term, sustainable growth.

So we'll cycle Austin, the sale of Austin mid-quarter in q1 and so you take that with a strong revenue and the flow through of the cost actions that we put in place. In Q3, we expect similar to higher Eva growth in q1 on a percentage basis in Q4. So, as Mike said, you know, we've been building on this for 24 and 25 and it's really encouraging that we're starting to see the impacts of our strategy play out in our results. Uh, the steps we took on subscription revenue is resulting in more sustainably growing digital business. The efforts, we've taken to monetize our content in multiple ways, including these licensing deals leading to improving Revenue Trends. And what we think is going to be a really strong q1 and over the long term, sustainable growth.

Speaker #5: We did guide to double-digit growth in free cash flow in 2026. So less reliance on asset sales and more reliance on the cash flow that we're throwing off.

That's very helpful. Um, when you're Congress on the, you know, the new high-end digital our our poo, you know as our purchase ten dollars, you know, do you see more upside from there?

Speaker #5: We guided to full-year growth in total adjusted EBITDA and in free cash flow based on those improving revenue trends. And so all of that's going to support our de-leveraging so we're thinking about 2026 as the year that we continue to improve the business.

Mike, I'm gonna take this 1 to its Kristen we feel yep.

Speaker #5: And we use that cash to bring down our debt. I think that will put us much closer to that two times first loan net leverage to end the year here in 2026.

Really great about the progress. You know, digital rfu hitting digital, only RFP is hitting 981 and 24 and that's up 24% year-over-year and digital only subscription Revenue, growing sequentially again. So in terms of upside

Speaker #2: That's very helpful. Good timing. I will jump back in the queue.

Giuliano Bologna: That's very helpful. Yeah, congrats on the, you know, the new high-end digital ARPU. You know, as it approaches 10 dollars, you know, do you see more upside from there?

Speaker #1: Thank you. The next question will be from Matt Condon from Citizens. Matt, your line is live.

Speaker #6: Thank you so much for taking my questions. My first one—just some of your peers in the publishing industry have called out AI Overviews' impact on programmatic revenue.

Kristin Roberts: Mike, I'm gonna take this one. Giuliano, it's Kristen.

Giuliano Bologna: Yep.

Kristin Roberts: We feel really great about the progress. You know, digital ARPU hitting digital-only ARPU hitting $9.81 in Q4, and that's up 24% year-over-year, and digital-only subscription revenue growing sequentially again. In terms of upside, I think we continue to see room to grow ARPU in 2026, and I think we're gonna do that through a couple of levers. There's smarter pricing, smarter packaging across the portfolio. There's better retention and life cycle marketing. I think there's also an expanding product set, like Play, right? We're using Play and these other products to drive habitual engagement and in turn, some incremental monetization there. On the ARPU versus volume issue, our philosophy remains: optimize long-term value, optimize long-term predictability.

Speaker #6: Are you seeing any sort of impact or click-through rates or traffic, or is there anything to call out there that has some follow-ups?

Speaker #3: Yeah. Hey, Matt. Good morning. Good to talk to you. Our click-throughs from Google from the search perspective have remained flat. So we've done a pretty good job of continuing to have a great ranking in the search ecosystem there with regard to Google.

I think we continue to see Room to Grow our poo in 2026. And I think we're going to do that through a couple of flavors. They're smarter pricing smarter packaging, across the portfolio, there's better retention and life cycle marketing. I think there's also an expanding product set like play, right? And we're using play in these other products to drive, habitual engagement and, and in turn, some incremental, monetization there on the arpu versus volume issue. Our philosophy remains optimized, long term value optimized long-term predictability. We did intentionally trade off some short-term volume earlier in 25. But what you're seeing now is a healthier and more sustainable subscriber base and we do expect that digital only subscription Revenue will continue to grow year-over-year as we execute on this strategy. So I hope that helps Juliana

that's very helpful. Um, you know,

Speaker #3: But with regard to AI overviews, pretty much all of the AI platforms—there's not—the amount of traffic that comes back to publishers is almost nothing.

And and, you know, switching over to to um kind of the meta topic. But you announced, you know, the meta ideal in 42. And as we think about, um, the Airlines and revenue in 2026

Kristin Roberts: We did intentionally trade off some short-term volume earlier in 25. What you're seeing now is a healthier and a more sustainable subscriber base. We do expect that digital-only subscription revenue will continue to grow year-over-year as we execute on this strategy. I hope that helps, Giuliano.

Speaker #3: So the user stays on the AI platform in those experiences. So our path to monetization is by licensing content for use in those AI platforms.

Speaker #3: It's not through clickbacks to us,

Yeah, um uh Giuliano. It's a it's it'll be a great. It'll be a good growth category and I would think it think about it you know, in terms of 26 and Beyond, it's a, it's a multi-year. Good growth category for us. We believe, um, I I would uh, I would like to introduce just a little bit of caution here as we think about,

Speaker #1: But with regard to our the publishing industry has seen a lot of declines in traffic from search We've been fortunate enough to be proactive from a strategy perspective over the last two years that we've been able to maintain a flat number with regard to search from Google Blue Links and then we've been really good at growing traffic to our platform from other means .

Giuliano Bologna: That's very helpful. You know, you know, switching over, to, kind of the Meta topic, you announced, you know, the Meta AI deal in Q4. How should we think about, AI licensing revenue in 2026?

You know, the AI licensing Revenue opportunity. We do expect significant growth in 2026 but also it's still a developing Marketplace and so, um, you know, we're learning a lot as we go forward. Uh, we have learned that the deals can be lumpy and they can take some time to get done. So

Michael Reed: Giuliano, it'll be a good growth category, and I would think about it, you know, in terms of 26 and beyond. It's a multiyear good growth category for us, we believe. I would like to introduce just a little bit of caution here as we think about, you know, the AI licensing revenue opportunity. We do expect significant growth in 2026, but also it's still a developing marketplace. You know, we're learning a lot as we go forward. We have learned that the deals can be lumpy, and they can take some time to get done. The past 12 months, we made a lot of progress.

Speaker #1: Social media being one of the biggest drivers . And then also more direct engagement with consumers coming directly to our platform . So overall , our page views remain strong .

Uh the past 12 months, we made a lot of progress, we have some great deals in place now. So we do expect uh nice growth in 2026. But but you know our eye on the pro, the price here is the longer term opportunity which we see from you know more deals to come as this.

Speaker #1: Audience remains strong , and and we're battling through some of the changes . The industry , the challenges , industry's facing from declining search .

Speaker #2: That's very helpful . And then a follow up just on , you know , there's more and more . And I is just it's improving internal workflows across you know I think all companies just as you look at the business obviously you've implemented the 100 million in annualized cost savings .

We're playing the long game here, too.

Michael Reed: We have some great deals in place now. We do expect nice growth in 2026, but, you know, our eye on the prize here is the longer-term opportunity, which we see from, you know, more deals to come as this overall business model and this ecosystem continues to evolve. Pretty excited, but a little bit of cautiousness in the near term. It's a growth category, but also, you know, it's still an evolving category, and we're playing the long game here too.

Speaker #2: Just are you seeing increased opportunity to implement AI internally just to further those cost reductions and run the business leaner

And when you talk about sounds like the, the growth expected in 26, is that mostly from the existing contracts, you've already signed or is there is, you know, considering you know, potential new deals that you could sign down, 26.

Speaker #1: Matt, the answer is yes. And we do have an AI task force that's working on deploying AI in every single facet of our business.

Yeah, it's both Giuliano it's, uh, it's existing deals. So that so we have some banked growth already with the deals we've signed, but we do expect additional growth through, uh, a more deals to be signed and more deals to come, so both

Speaker #1: And so we do see future cost efficiency opportunities that come from the use of AI technology . But I would say , Matt , we're actually more excited about the use of AI technology to improve our revenue performance , our ability to do better , lead gen work , our our ability to do better presentations with customers to tell the story better .

Giuliano Bologna: It's helpful. When you talk about kind of like the growth expected in 2026, is that mostly from the existing contracts you've already signed, or are you know, considering, you know, potential new deals that you could sign down in 2026?

That's very helpful and then there's a final 1 you know you made very strong progress on debt reduction in 25 and you provide a little more detail on, you know 2026 debt paid on exact expectations and what you're targeting from a first line that leverage perspective.

Michael Reed: Yeah, it's both, Giuliano. It's existing deals. We have some banked growth already with the deals we've signed, but we do expect additional growth through more deals to be signed and more deals to come. Both.

Speaker #1: The to improve ROI for customer usage on our platform . So we're frankly more excited about the long term revenue opportunity from deployment of AI technology inside of our company .

Giuliano Bologna: That's very helpful. As a final one, you know, you made very strong progress on debt reduction in 2025. Can you provide a little more detail on, you know, 2026 debt paydown expectations and what you're targeting from a first lien debt leverage perspective?

Speaker #1: That that'll be the big win for us . But to answer your question , we do see further cost efficiencies as well

Speaker #2: Great . And then maybe just the last one , can we just get an update on the Google lawsuit ? I don't know if there's anything update there .

Trisha Gosser: Yeah, absolutely. You're right, we did make great progress in 2025. We repaid approximately $135 million of long-term debt in the year, and that brought us down to about 2.4x first lien net leverage to end the year. We're remained focused on bringing that number down again in 2026. Our approach this year is gonna be that debt is funded primarily through our operating performance and our free cash flow. We did guide to double-digit growth in free cash flow in 2026, so less reliance on asset sales and more reliance on the cash flow that we're throwing off. You know, we guided to full year growth in Total Adjusted EBITDA and in free cash flow, you know, based on those improving revenue trends. All of that's gonna support our deleveraging.

Speaker #2: And I think investors would just love to hear just a timetable . And where we sit here today , thank you so much .

Yeah, absolutely. Uh, you're right, we did make great progress. In 2025, we repaid approximately 135 million of long-term debt in the year. And that brought us down to about 2.4 times. Firstly, net leverage in the year and we're remain focused on bringing that number down again in 2026. So our approach this year is going to be. That debt is funded primarily through our operating performance and our free cash flow. We did guide to double-digit growth in free cash flow in 2026. So, less Reliance on asset sales and more Reliance on the the cash flow that we're throwing off. Uh, you know, we guided to full year growth in total adjusted but, uh, and it's free cash flow.

Speaker #1: Yeah . Matt , thanks . So yeah , judge Castelle , the judge in our case last October , he granted our partial summary judgment in the case , which was great important step for us because it established liability on certain claims .

Speaker #1: So we were really excited about that . You know , in January of this year , Google filed their own motion for summary judgment .

You know, based on those improving Revenue Trends and so all of that's going to support our deleveraging. Uh, so we're thinking about 2026 as the year that we continue to improve the business. Uh, and we use that cash to bring down our debt. I think that will put us much closer to that 2 times. Firstly, net leverage to end the year here in 2026.

Speaker #1: We expected that it was all in normal course . We believe their motion , you know , lacks any merit . And we expect a favorable ruling on that motion favorable for us .

That's very helpful.

Time and I will jump back in the queue.

Thank you. The next question will be from Matt condom from citizens match. Your line is live.

Speaker #1: We anticipate that motion being ruled on later spring or summer of this year . And then , you know , we expect to continue .

Speaker #1: We expect to have our jury trial set later this year , and we expect the jury trial to be set for end of 26 or early 27 at the latest .

Trisha Gosser: We're thinking about 2026 as the year that we continue to improve the business, and we use that cash to bring down our debt. I think that will put us much closer to that 2x first lien net leverage to end the year here in 2026.

Thank you so much for taking my questions. My first 1, just some of your peers uh just in the in the publishing industry of called out, just AI, overviews impact to just programmatic Revenue, are you seeing any sort of impact or click through rates or traffic or or is there anything to this to call out there that have some follow-ups?

Speaker #1: As far as other milestones in the case , similar to what we talked about on previous calls , you know , we do expect the remedies ruling to be issued very soon for the DOJ case .

Yeah, hey Matt, um, uh, good morning, good to talk to you. Uh, you know, our uh, our um,

Giuliano Bologna: That's very helpful. If you have time, and I will jump back in the queue.

Operator: Thank you. The next question will be from Matt Condon from Citizens. Matt, your line is live.

Speaker #1: And we expect once the remedies are ruled on , we expect the the case out of Texas to to go to trial . So that should happen shortly after the the the remedies are announced .

Matt Condon: Thank you so much for taking my questions. My first one, just some of your peers, just in the publishing industry, have called out just AI Overviews impact to just programmatic revenue. Are you seeing any sort of impact or click-through rates or traffic or is there anything to call out there? I have some follow-ups.

Speaker #1: So we are expecting quite a bit of progress here . Quite a few milestone announcements to come over the next several You know , the DOJ remedies ruling the Texas case , going to trial summary judgment ruling on Google's summary judgment filing in our case , and then a jury trial being set .

Click-throughs from Google from the search perspective. Have have remained flat, so, you know, we've, uh, we've done a pretty good job of of continuing to, to have a, a great ranking in the in the search, um, ecosystem there with regard to Google, but you know, with regard to AI overviews, you know, pretty much all of the AI platforms. There's not the the, the amount of traffic that comes back to Publishers is is

Michael Reed: Yeah. Hey, Matt, good morning. Good to talk to you. You know, our click-throughs from Google from the search perspective have remained flat. You know, we've done a pretty good job of continuing to have a great ranking in the search ecosystem there with regard to Google. You know, with regard to AI Overviews, you know, pretty much all of the AI platforms. The amount of traffic that comes back to publishers is almost nothing. The user stays on the AI platform and those experiences. You know, our path to monetization is by licensing content for use in those AI platforms. It's not through clickbacks to us.

Speaker #1: So we feel very , very positive about our case . That hasn't changed . And we think there's a lot of good momentum to come here in 2026 .

Speaker #2: Great. Thank you so much.

Speaker #3: Thank you . And the next question is coming from Barton Crockett from Rosenblatt . Barton , your line is live

Speaker #4: Okay. Thanks for taking the question. I wanted to ask about the steps that Google took earlier this year to make a blog post saying that they would take some steps to allow separation of presence in AI Overviews from Search, seem to be in response to some UK actions, and...

Is almost nothing. So the the the user stays on the AI platform and those experiences. So our, uh, you know, our path to monetization is by licensing content for use in those AI platforms. It's not through click backs to us. But with regard to our, the publishing industry is seeing a lot of declines in traffic from search. We've been fortunate enough to be proactive from a strategy perspective over the last 2 years that we've been able to maintain a flat, um, number with regard to search from Google Blue Links. And then we've been really good at growing traffic to our platform from other means, uh, social media being 1 of the biggest drivers. And then also uh, Dior more direct engagement with consumers, coming directly to our platform. So overall our page views remain strong, audience remains strong.

Michael Reed: With regard to the publishing industry has seen a lot of declines in traffic from search. We've been fortunate enough to be proactive from a strategy perspective over the last 2 years, that we've been able to maintain a flat number with regard to search from Google blue links. We've been really good at growing traffic to our platform from other means, social media being one of the biggest drivers, and then also more direct engagement with consumers coming directly to our platform. Overall, our page views remain strong, audience remains strong, and we're battling through some of the challenges the industry is facing from declining search.

And uh and we're battling through some of the changes, the industries, the challenges Industries facing from declining search.

Speaker #4: But it would seem to be a global statement of ambition to do something that was applauded by your trade group . Here . That would seem to be , you know , potentially very interesting .

Speaker #4: You know , maybe providing some leverage to maybe have a stronger licensing conversation with them , if that proceeded . But I was wondering if you could give us your thoughts on what you think about that .

Speaker #4: And if you have any reason for optimism that that could there could be something that could move the needle forward . There .

That's very helpful and then a follow-up, son. You know, there's more and more. Ai ai is just uh, it's improving internal workflows across. You know, I think all companies just you look at the business obviously you've implemented the 100 million in annualized cost savings. Just are you seeing increased opportunity to implement AI internally just the the further those cost reductions and and run the business leader.

Speaker #1: Yeah . Thanks , Barton . We we are encouraged by that blog post . And , you know , nothing has happened to date .

Speaker #1: We probably should be clear about that . But the blog post was encouraging . You know , we think it's the right move .

Matt Condon: That's very helpful. Then a follow-up. Just on, you know, there's more and more AI is just, it's improving internal workflows across, you know, I think all companies. Just as you look at the business, obviously you've implemented the $100 million in annual cost savings. Just, are you seeing increased opportunity to implement AI internally just to further those cost reductions and run the business leaner?

Speaker #1: It would move the playing field toward , you know , clear publisher control . And it'd be direction and directionally it'd be constructive for sure .

Speaker #1: You know , our our guiding principle remains the same trusted , high quality journalism has real value . And , you know , if that content is being used to power AI experiences with no compensation to the publishers , it's illegal .

Michael Reed: Matt, the answer is yes. We, we do have an AI task force that's working on deploying AI in every single facet of our business. We do see future cost efficiency opportunities that come from the use of AI technology. I would say, Matt, we're actually more excited about the use of AI technology to improve our revenue performance, our ability to do better lead gen work, our ability to do better presentations with customers, to tell the story better, to improve ROIs for customer usage on our platform. We're frankly more excited about the long-term revenue opportunity from deployment of AI technology inside of our company. That'll be the big win for us. To answer your question, we do see further cost efficiencies as well.

Speaker #1: And so , you know , we believe there should be a level playing field fair compensation for our content . And certainly Google distinguishing between blue link search and and usage in their AI products is would be a really positive development .

Technology to improve our Revenue performance. Um, our ability to do better, lead gen work, are better our ability to do better, presentations with customers, to tell the story better, the to improve rois for customer usage, on our platform. So we're frankly more excited about the long-term Revenue opportunity from deployment of AI technology inside of our company that that'll be the big win for us. Uh, but to answer your question, we do see further cost efficiencies as well.

Speaker #1: So you know , we're encouraged by that . We think it's the right thing to do . And you're right , it would lead to we think , a better licensing discussion , you know , around licensing our content for usage in AI .

Great. And then maybe just the last 1, you know, could we just get an update on the Google lawsuit? Um, I don't know if there's anything update there and I think investors would just love to hear uh just the time table and and where we sit here today. Thank you so much.

Speaker #1: So it could be a real positive development . We're we're , you know , hesitant to to say to anything too optimistic right now because we just don't really know what they'll do .

Speaker #4: Yeah . I mean , to follow up on that , they made a blog post . Is there an opening for a discussion with them on your part or industry wide or not ?

Speaker #4: At this point , do you think ?

Speaker #1: Well , I would , I wouldn't say that we don't have discussions . I wouldn't want to get into any , any kind of confidential information for ongoing discussions we have with any potential AI licensing partners .

Matt Condon: Great, maybe just the last one. You know, could we just get an update on the Google lawsuit? I don't know if there's anything to update there. I think investors would just love to hear just a timetable and where we sit here today. Thank you so much.

Speaker #1: But , you know , I would I would suffice it to say that we do have a lot of conversations going on with a lot of different technology companies .

Michael Reed: Matt, thanks. Judge Castel, the judge in our case last October, he granted our partial summary judgment in the case, which was great. Important step for us because it established liability on certain claims, we were really excited about that. You know, in January of this year, Google filed their own motion for summary judgment. We expected that, it was all in normal course. We believe their motion, you know, lacks any merit, we expect a favorable ruling on that motion, favorable for us. We anticipate that motion being ruled on later spring or summer of this year. You know, we expect to have our jury trial set later this year, we expect the jury trial to be set for end of 2026 or early 2027 at the latest.

Yeah, Matt thanks. Uh so yeah. Uh, judge Castel, the judge in our case last October he granted, our partial summary judgement in the case which was great important step for us because it established liability on certain claims. So, we were really excited about that. You know, in January of this year, Google filed their own motion for summary judgement, we expected that it was all in normal course. We believe their motion, you know, lacks any Merit and we expect a favorable ruling on that motion favorable for us. We anticipate that uh motion being ruled on later spring or or summer of this year. And then, you know, we expect to continue. We expect to have our jury trials set.

Speaker #4: Okay . Now , one of the things I was also curious about was your monthly unique visitors . I think the number was 179 million .

Speaker #4: I think , which is down a bit from the third quarter down year over year . What's driving the dip there ? I mean , you know , you said search is steady .

Speaker #4: So what is it that's driving that

Speaker #1: Kristen , you want to take that .

Speaker #5: Yeah I'm happy to . We we made some intentional steps over the course of 2025 to maintain our audience reach at more than 1 billion page views per month , so that we could begin to turn the dials on our subscription strategy and begin to do some testing and some experimenting around various tactics that would improve engagement , improve registration , and then improve take up and then pay up on our subscription offers .

Michael Reed: As far as other milestones in the case, similar to what we talked about on previous calls, you know, we do expect the remedies ruling to be issued very soon for the DOJ case. We expect once the remedies are ruled on, we expect the case out of Texas to go to trial. That should happen shortly after the remedies are announced. We are expecting quite a bit of progress here, or quite a few milestone announcements to come over the next several months. You know, the DOJ remedies ruling, the Texas case going to trial, summary judgment ruling on Google's summary judgment filing in our case, and then a jury trial being set. We feel very, very positive about our case.

Later this year. And we expect the jury trial to be set for end of 26 or early 27 at the latest. Um, as far as other milestones in the case, similar to what we talked about on previous calls, um, you know, we do expect the remedies ruling to be issued very soon for the doj case. And, uh, we expect once the remedies are ruled on, uh, we expect the TA the case out of Texas to, to go to trial, so that should happen shortly after, um, the the the remedies are announced. So we are expecting quite a bit of progress. Here quite a few Milestone announcements to come over the next several months. You know, the doj remedies, ruling the Texas case, going to trial.

Summary judgement ruling on. Google's summary judgement filing in our case and then a jury trial being set. So, uh, we feel very, very positive about our case that hasn't changed. And we think there's a lot of uh good momentum to come here in 2026.

Speaker #5: So this is , I think , what you're seeing is a reflection of some deliberate actions that we're taking to stabilize around 1 billion page views per month , which gives us the breathing room to be testing around different subscriber thresholds in the attempt to build back a healthier , long term subscriber base in the digital only category .

Great, thank you so much.

Thank you. And the next question is coming from a Barton Crockett from Rosen blasts Barton, your line of life.

Okay, thanks for taking the question. Um,

Speaker #5: Does that help answer the question ?

I wanted to ask about um the steps that uh Google took um earlier this year to make a blog post saying that they would um

Speaker #4: Yeah , yeah , that helps . And then one other topic I was wondering about in terms of the the court schedule , if I could , you know , I was wondering if there's also one other key milestone that would , you know , that you can see in terms of timing and that might be important in terms of getting your jury seated .

uh, take some steps to allow separation of

Michael Reed: That hasn't changed, and we think there's a lot of good momentum to come here in 2026.

Uh, presence in AI overviews from, um, search.

Matt Condon: Great. Thank you so much.

Seem to be in response to some UK, um, actions and but it was seemed to be a global statement of ambition, to do something. That was applauded by your trade group here.

Operator: Thank you. The next question is coming from Barton Crockett from Rosenblatt. Barton, your line is live.

um,

Speaker #4: And that is a decision by the judge of which witnesses would be allowed , you know , for a trial proceeding . You know , there's a term of art for that .

Barton Crockett: Okay, thanks for taking the question. I wanted to ask about the steps that Google took earlier this year to make a blog post saying that they would take some steps to allow separation of presence in AI Overviews from search. Seemed to be in response to some UK actions, but it seemed to be a global statement of ambition to do something that was applauded by your trade group here. That would seem to be, you know, potentially very interesting, you know, maybe providing some leverage to maybe have a bit stronger licensing conversation with them if that proceeded.

Speaker #4: And I'm not a lawyer . I forget what it is , but is that something that we should also be looking for as a marker that , you know , would signal that things are about to get started ?

that would seem to be, you know, potentially very interesting. You know, maybe providing some leverage to maybe have a better, stronger licensing conversation with them if that preceded. Um, but I was wondering if you could give us your thoughts on what you think about that. And if you have any reason for optimism, that that could, that could be something that could move the needle forward there.

Speaker #1: Yeah , I do , and I'd say , you know , late summer or fall , we should we should have more clarity on that .

Yeah. Um, uh

Speaker #1: So , you know , it's right to look for . And I would say that's another , you know , milestone to look for .

Speaker #1: You know, as we get to the summer this year.

Speaker #4: Okay . All right . Great . Thank you

Speaker #3: Thank you . And that concludes today's Q and A session . I will now hand the call over to Mike Reed for closing remarks .

Speaker #1: Yeah . Thank you . Thanks , everybody for joining us this morning . Let me just quickly recap a few of the the most important highlights from this morning's call .

Barton Crockett: I was wondering if you could give us your thoughts on what you think about that, and if you have any reason for optimism, there could be something that could move the needle forward there?

Thanks Bart. Bart know we, we are encouraged by that blog post and uh, you know, nothing has happened to date. We we probably should be clear about that. But the blog post was encouraging, you know, we think it's the right move, um, it would move the playing field toward, you know, uh, clearer publisher control and and it'd be Direction in directionally it'd be constructive for sure. Um, you know, our, our guiding principle Remains the Same trusted high-quality journalism has real V.

Speaker #1: And I'll start with , as mentioned , Q4 felt good because it was the best quarter we've had in several years . And so many of the initiatives that we've been working on really started to show up in the financials .

Michael Reed: Yeah. Thanks, Barton. We are encouraged by that blog post and, you know, nothing has happened to date. We probably should be clear about that. The blog post was encouraging. You know, we think it's the right move. It would move the playing field toward, you know, clearer publisher control, and directionally it'd be constructive for sure. You know, our guiding principle remains the same: trusted, high-quality journalism has real value. You know, if that content is being used to power AI experiences with no compensation to the publishers, it's illegal.

Speaker #1: And we're encouraged by that . And how the how that's going to roll into 26 , we delivered our strongest profitability in four years .

Speaker #1: And as a result , in the fourth quarter , adjusted EBITDA returned to meaningful year over year growth . And also on the total digital revenue side , we returned to growth , which was great .

Speaker #1: On a same store basis . More than 47% of our revenue came from digital , and we do expect to surpass 50% here in 2026 .

Speaker #1: And you saw a real step forward on same store revenue trends in the fourth quarter , improving by about 300 basis points . And it was the best trend we've had in several years .

Michael Reed: You know, we believe there should be a level playing field, fair compensation for our content, and certainly Google distinguishing between blue link search and usage in their AI products is a- it would be a really positive development. You know, we're encouraged by that. We think it's the right thing to do. You're right, it would lead to, we think, a better licensing discussion, you know, around licensing our content for usage in AI. It could be a real positive development. We're, you know, hesitant to say anything too optimistic right now because we just don't really know what they'll do.

It could be a real positive development, where we were, you know, hesitant to to say to anything too optimistic right now because we just don't really know what they'll do.

Speaker #1: And and you heard this morning , we expect that to continue into the to the 2026 . And and and Q1 as well .

I mean to follow up on that, they made a blog post. Is there an opening for a discussion with them on your part or industrywide?

Or not at this point. Do you think?

Speaker #1: We did deliver our third straight year of free cash flow growth and that was great . And we can we continue to expect double digit growth again in 2026 for free cash flow .

Speaker #1: And and when you take all these things together , the reflect improving revenue momentum , expanding margins , strong cash generation , deleveraging .

Well, I was I wouldn't say that we don't have discussions. I I wouldn't want to get into any any kind of confidential information for ongoing discussions. We have with any uh potential AI licensing Partners. But you know, I would I would suffice it to say that we do have a lot of conversations going on with a lot of different technology companies.

Speaker #1: And we continue to think we're going to create great value for shareholders . And finally , I would just say , as you heard from Tricia , we are expecting a stronger Q1 across most all trends feeding off of of the for Q4 .

Okay. Now 1 of the things I was also curious about was, um,

Barton Crockett: Yeah. I mean, to follow up on that, they made a blog post. Is there an opening for a discussion with them on your part or industry-wide or not at this point, do you think?

Your uh monthly unique visitors. I think um the number was 179 um million I think

Speaker #1: We just delivered . So we look forward to getting back to together with you all in two months to update you on our progress and fill you in on our Q1 results .

Which um, is down a bit from the third quarter um, down year-over-year.

Michael Reed: Well, I wouldn't say that we don't have discussions. I wouldn't want to get into any kind of confidential information for ongoing discussions we have with any potential AI licensing partners. You know, I would suffice it to say that we do have a lot of conversations going on with a lot of different technology companies.

It's driving the debt there. I mean, what, you know, you said search is steady.

So, you know, what is it? That's driving that.

Speaker #1: And so thanks for joining us this morning . And everyone . Have a great day

Kristen, you want to take that?

yeah, I'm happy to

We're we made some intentional steps.

Barton Crockett: Okay. One of the things I was also curious about was your monthly unique visitors. I think the number was 179 million, I think, which is down a bit from Q3, down year-over-year. What's driving the dip there? I mean, you know, you said search is steady, you know, what is it that's driving that?

Michael Reed: Kristen, you want to take that?

Kristin Roberts: Yeah, I'm happy to. We made some intentional steps over the course of 2025 to maintain our audience reach at more than 1 billion page views per month, so that we could begin to turn the dials on our subscription strategy and begin to do some testing and some experimenting around various tactics that would improve engagement, improve registration, and then improve take-up and then pay up on our subscription offers. This is, I think what you're seeing is a reflection of some deliberate actions that we're taking to stabilize around 1 billion page views per month, which gives us the breathing room to be testing around different subscriber thresholds in the attempt to build back a healthier, long-term subscriber base in the digital-only category. Does that help answer the question?

Course of 2025 to maintain our audience reach at more than 1 billion page views per month. So that we could begin to turn the dials on our subscription strategy, and begin to do some testing and and some experimenting around. Um various tactics that would improve engagement improve registration and then improve take up and then pay up on our subscription offers. So this is um I think what you're seeing is a reflection of some deliberate actions that we're taking to stabilize around 1 billion page views per month which gives us the breathing room to be testing around different subscriber thresholds in the attempt to build back, a healthier um long-term subscriber base um in the digital only category, does that help answer the question?

Um yeah yeah, that that that helps. Um and then 1 other uh topic I was wondering about in terms of the the court schedule if I could um

You know, I was wondering if there's also 1 other key Milestone that would, you know, um, that you can see in terms of timing and that might be important in terms of getting your jury seated.

And that is a decision by the judge of which Witnesses.

Would be allowed, you know, for a trial proceeding, you know, there's a term of art for that, and I'm not a lawyer, I forget what it is. But, um, is that something that, you know, we should also be looking for as a marker that um, you know, would signal that things are about to get started.

Barton Crockett: Yeah, that helps. One other topic I was wondering about in terms of the court schedule, if I could. You know, I was wondering if there's also one other key milestone that would, you know, that you can see in terms of timing and that might be important in terms of getting your jury seated, and that is a decision by the Judge of which witnesses would be allowed, you know, for a trial proceeding. You know, there's a term of art for that, and I'm not a lawyer, I forget what it is. Is that something that, you know, we should also be looking for as a marker that, you know, would signal that things are about to get started?

Yeah, I I do um, and I'd say, you know, late summer or fall we should we should have more clarity on that. So I, you know, it's it's it's alright to look for. Um, and I would say that's another, you know, Milestone to look for, you know, as we get to the summer this year.

Okay, all right, great. Thank you.

Thank you. And that concludes today's Q&A session. I will now hand the call over to Mike Reed for closing remarks.

Michael Reed: Yeah, I do. I'd say, you know, late summer, fall, we should have more clarity on that. I, you know, it's right to look for. I would say that's another, you know, milestone to look for, you know, as we get to the summer this year.

Matt Condon: Okay. All right, great. Thank you.

Yeah, thank you. Um, thanks everybody for joining us this morning. Let me just quickly recap a few of the, the most important highlights from this morning's call. And I'll start with as mentioned Q4. Uh, was felt good because it was the best quarter we've had in several years. And so many of the initiatives that we've been working on, really started to show up in the financials. And we're encouraged by that and how the how that's going to roll into 26. We delivered our strongest profitability in 4 years and and, as a

Operator: Thank you. That concludes today's Q&A session. I will now hand the call over to Michael Reed for closing remarks.

Result in the fourth quarter, adjusted e, but uh returned to meaningful year-over-year growth.

And also on the total digital Revenue side, we returned to growth which was great on the same store basis.

Michael Reed: Thanks, everybody, for joining us this morning. Let me just quickly recap a few of the most important highlights from this morning's call. I'll start with, as mentioned, Q4, well, it felt good because it was the best quarter we've had in several years, and so many of the initiatives that we've been working on really started to show up in the financials, and we're encouraged by that and how that's gonna roll into 2026. We delivered our strongest profitability in 4 years, and as a result, in Q4, Adjusted EBITDA returned to meaningful year-over-year growth. Also on the total digital revenue side, we returned to growth, which was great on a same-store basis. More than 47% of our revenue came from digital, and we do expect to surpass 50% here in 2026.

More than 47% of our Revenue came from digital, and we do expect to surpass 50% here in 2026. And you saw a real step forward on same store. Revenue Trends in the fourth quarter, improving by about 300 basis points and it was the best trend we've had in several years. And, and you heard this morning, we expect that to continue into the, to the 2026 and and uh and q1 as well. We did deliver our third straight year of free cash flow growth and that was great. And we can we continue to expect double digit growth again in 2026 for free cash flow and

Michael Reed: You saw a real step forward on same-store revenue trends in Q4, improving by about 300 basis points, and it was the best trend we've had in several years. You heard this morning, we expect that to continue into 2026 in Q1 as well. We did deliver our 3rd straight year of free cash flow growth, and that was great, and we continue to expect double-digit growth again in 2026 for free cash flow. When you take all these things together, they reflect improving revenue, momentum, expanding margins, strong cash generation, deleveraging, and we continue to think we're gonna create great value for shareholders.

Shareholders. And finally, I would just say, as you heard from Trisha, we are expecting a stronger q1 across, most all Trends, um, feeding off of of the 424. We just delivered. So we look forward to getting back to together with you all in 2 months to update, you on our progress and fill you in on inject you 1 results. And so thanks uh, for joining us this morning and everyone have a great day.

Thank you. This does conclude today's conference and you may disconnect your alliance at this time. Thank you for your participation.

Michael Reed: Finally, I would just say, as you heard from Tricia, we are expecting a stronger Q1 across most all trends, feeding off of Q4 we just delivered. We look forward to getting back together with you all in two months to update you on our progress and fill you in on our Q1 results. Thanks for joining us this morning, and everyone, have a great day.

Operator: Thank you. This does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

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