TDAY · USA TODAY Co., Inc.

USA TODAY Co., Inc. delivered stronger-than-expected Q1 2026 results, with Total Adjusted EBITDA surging 44.7% year-over-year to $73.1 million and margin expanding 450 basis points to 13.3%, driven primarily by digital revenue growth. Same-store revenue declined only 1.8% versus 3.9% in the prior quarter, supported by 5.2% same-store digital revenue growth to $261.9 million, representing 47.8% of total revenues and approaching the 50% threshold. Digital-only subscriptions returned to year-over-year growth at $45.9 million after three sequential quarters of improvement, while digital advertising contributed $80.9 million. CEO Michael Reed highlighted robust execution on core strategy, including AI content licensing positioning through daily content creation, archive digitization, and protective technology, viewing it as a significant growth opportunity despite lumpy cadence. Net income flipped to a $19.9 million profit from a prior-year loss, reflecting operational leverage. Balance sheet strengthened with first lien net leverage dropping 12% to 2.3x, aided by $85.2 million cash and stronger free cash flow of $6.4 million. The company reiterated its full-year 2026 outlook, expecting total revenues flat to low single-digit decline on same-store basis, digital revenues growing to over 50% of total, alongside growth in net income, Adjusted EBITDA, operating cash flow, and free cash flow in double digits. This reaffirmation signals confidence amid improving trends, with digital transformation and cost discipline as key drivers for sustainable growth.