Times Operating Profit Growth Reaccelerates After a Slow Quarter

The Tip Desk · November 4, 2026 · 4 min read

Operating profit rose 16.4% to $121.9 million as digital-only additions reached about 420,000 and revenue growth slowed to 9.7%.

The New York Times Company (NYT) reported operating profit of $121.9 million in the third quarter of 2026, up 16.4% from a year earlier, as year-over-year growth in operating profit accelerated from 10.8% in the second quarter. Operating profit margin rose to 15.9% from 15.5%.

Total revenues were $768.5 million, up 9.7% from $700.8 million a year earlier, a slower pace than 11.2% in the second quarter. Digital-only subscription revenues were $421.3 million, up 14.6%, after 16.4% growth in the second quarter. The company said the digital-only increase was driven by growth in both digital-only subscribers and digital-only average revenue per user.

Digital-only net additions were about 420,000 versus the end of the second quarter, after 280,000 in the second quarter. Digital-only subscribers ended the third quarter at 13.22 million; total subscribers were 13.76 million. Digital-only ARPU was $9.93, up 1.4% year-over-year after 3.1% growth in the second quarter. The company said the ARPU increase was driven primarily by subscribers transitioning from promotional to higher prices and price increases on certain tenured subscribers.

Print subscription revenues decreased 0.7% to $126.3 million, primarily due to lower single-copy revenues. Total subscription revenues increased 10.7% to $547.5 million.

Digital advertising revenues were $109.9 million, up 12.0% year-over-year after 20.7% growth in the second quarter. The company said the increase was primarily due to continued marketer demand and growth in advertising supply. Print advertising revenues decreased 4.3% to $32.7 million. Total advertising revenues increased 7.8% to $142.6 million.

Affiliate, licensing and other revenues increased 6.2% to $78.4 million, primarily as a result of higher licensing and higher Wirecutter affiliate referral revenues, which more than offset a shift in the timing of a marketing promotion by one of the company’s partners.

Operating costs increased 8.5% year-over-year to $646.6 million. Adjusted operating costs increased 8.7% to $618.9 million, slower than 10.0% growth in the second quarter. The company said the increase was largely as a result of higher compensation and benefits expenses, primarily relating to journalism, higher general and administrative costs, as well as higher marketing and promotion costs. Cost of revenue increased 7.0% to $373.5 million. Sales and marketing costs increased 12.5% to $89.5 million. Product development costs increased 7.9% to $72.3 million. General and administrative costs increased 12.7% to $86.4 million, including one-time promotional expenses related to the company’s 175th anniversary.

Adjusted operating profit was $149.6 million, up 13.9% year-over-year after 16.1% growth in the second quarter. Adjusted operating profit margin was 19.5%. Diluted earnings per share were $0.60, a $0.10 increase year-over-year. Adjusted diluted EPS was $0.68.

The quarter included $3.8 million of pre-tax Generative AI litigation costs, or $2.8 million, or $0.02 a share, after tax. Interest income and other, net was $11.6 million. Income tax expense was $32.5 million; the effective tax rate was 25.0%.

Cash and marketable securities were $1.26 billion as of September 30, 2026. There were no outstanding borrowings under the company’s $400 million revolving credit facility and no other outstanding debt. In the quarter ended September 30, 2026, the company repurchased 1,158,652 shares of Class A common stock for about $79.1 million. As of October 30, 2026, about $146.0 million remained available for repurchases. Capital expenditures totaled about $4 million in the third quarter.

For the fourth quarter of 2026, the company guided digital-only subscription revenue growth of 12% to 15%, total subscription revenue growth of 9% to 11%, digital advertising growth of high-single-to-low-double-digits, total advertising growth of mid-single-digits, affiliate, licensing and other growth of low-single-to-mid-single-digits, and adjusted operating cost growth of 6% to 8%. On a pre-tax basis for 2026, it expects depreciation and amortization of approximately $85 million, interest income and other, net of approximately $45 million to $50 million, and capital expenditures of approximately $35 million to $40 million.