USA TODAY Co Q3 revenue falls 7.4%, misses estimates

Overview

• US media and digital marketing firm's Q3 revenue fell 7.4% yr/yr, missing analyst expectations

• Company posted positive adjusted net income

• USA TODAY launched $100 mln annualized cost reduction program and plans opportunistic share repurchases

Outlook

• Company expects full-year 2026 total revenues to decline mid-single digits on a same store basis

• Total digital revenues expected to comprise over 50% of total revenues during 2027

• Net income attributable to USA TODAY Co. expected to grow versus prior year; sequential improvement seen in Q4 2026

Result Drivers

• SEARCH CHANGES AND INFLATION - Co said Q3 results were affected by changes in consumer search behavior and inflationary pressures

• DIGITAL REVENUE GROWTH - Co reported growth in direct-sold digital advertising, digital-only subscriptions, and digital other revenue categories, which it said are central to its strategy

• AUDIENCE STABILIZATION - Co said audience trends showed signs of stabilization and engagement strengthened across its platforms

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer publishing peer group is "buy"

• Wall Street's median 12-month price target for USA TODAY Co Inc is $10.00, about 64.7% above its November 4 closing price of $6.07

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)