USA TODAY Starts $100 Million Cost-Cut Program

The Tip Desk · November 11, 2026 · 4 min read

Third-quarter revenue was $519.2 million as the company booked a $4.6 million net loss and said it expects sequential Adjusted EBITDA growth in the fourth quarter.

USA TODAY Co. (TDAY), the diversified media company, reported third-quarter revenue of $519.2 million, down 7.4% from a year earlier, after an 8.3% year-over-year decline in the second quarter.

Same-store revenues fell 5.8% year-over-year, a 30-basis-point sequential improvement from the second quarter’s 6.1% same-store decline. Chairman and Chief Executive Officer Michael Reed said the company felt the impacts of changes in consumer search and some inflationary pressures.

Net loss attributable to USA TODAY Co. was $4.6 million, or $0.03 a share, reversing second-quarter net income of $9.1 million. Total Adjusted EBITDA was $36.6 million, down from $56.9 million in the second quarter, and the Adjusted EBITDA margin was 7.0%. Free cash flow was $4.3 million. Cash provided by operating activities was $16.7 million.

Digital revenues were $249.3 million, or 48.0% of total revenues. Digital advertising revenues were $75.0 million. Average monthly unique visitors were 161 million, up from 158 million in the second quarter, including about 108 million from the U.S. media network and about 53 million from U.K. digital properties. Reed said audience trends showed signs of stabilization and engagement strengthened across platforms.

Digital-only subscription revenues were $46.0 million, the third consecutive quarter of year-over-year growth. Digital-only average revenue per user reached a record $10.82, up 23% year-over-year. LocaliQ core platform revenues were $105.4 million, with a record core platform ARPU of $2,996, up 6% year-over-year.

USA TODAY Media segment revenues were $380.6 million, with Segment Adjusted EBITDA of $23.8 million and a 6.3% margin. Newsquest revenues were $59.5 million, with Segment Adjusted EBITDA of $13.8 million and a 23.3% margin. LocaliQ segment revenues were $105.7 million, with Segment Adjusted EBITDA of $7.3 million and a 6.9% margin.

At the end of the third quarter the company implemented a $100 million annualized cost-reduction program. Reed said the lower cost structure is already benefiting the fourth-quarter run rate and that, together with momentum across the digital portfolio, the company expects significant sequential growth in Adjusted EBITDA and free cash flow, as well as substantial margin expansion, in the fourth quarter.

The company updated its full-year 2026 outlook. Total revenues are expected to be down in the mid-single digits on a same-store basis. Net income attributable to USA TODAY Co. is expected to grow versus the prior year, with sequential improvement in the fourth quarter. Total Adjusted EBITDA, cash provided by operating activities, and free cash flow are expected to decline versus the prior year, with sequential improvement in the fourth quarter. Total digital revenues are expected to make up 50% or more of total revenues during 2027.

Cash and cash equivalents were $68.2 million as of September 30, 2026. Total debt principal outstanding was $952.9 million, including $705.1 million in first lien debt. First lien net leverage was 2.5x, a decrease of 8.2% year-over-year.

The company received waivers from certain lenders of its $900.0 million five-year first lien term loan and certain holders of its 6.000% Senior Secured Convertible Notes due 2031 to permit strategic agreements with Lee Enterprises to acquire the remaining 50% interest in TNI Partners and assume full ownership of the Arizona Daily Star, and to transfer Montana and South Dakota publications to Lee Enterprises. The Lee Transactions did not result in additional indebtedness. Subsequent to the quarter, the 2029 Term Loan Facility was amended to permit up to $50.0 million of incremental debt, usable to repurchase shares on or before December 31, 2026. The company said it has $96.9 million available under its stock repurchase program and plans to be opportunistic with buybacks in the fourth quarter.

Reed said the Ad Tech litigation continues to advance. Google’s motion for summary judgment was denied, and the trial date is set for April 5, 2027. The court’s ruling made public a damages calculation totaling $901 million through 2024, which the company said does not include potential treble damages and is expected to be updated ahead of trial.