Newspaper and digital media company The New York Times (NYSE: NYT) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 9.7% year on year to $685.9 million. Its non-GAAP profit of $0.58 per share was 12.7% above analysts’ consensus estimates.

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StockStory’s Take

The New York Times delivered a quarter that surpassed Wall Street’s expectations, with management attributing the outperformance to subscription momentum, robust digital advertising, and disciplined cost management. CEO Meredith Kopit Levien pointed to strong engagement across news and lifestyle products, highlighting that over half of subscribers now take the bundle. The company’s growing audience and diversified revenue streams—subscription, advertising, affiliate, and licensing—were central to its positive results. Levien emphasized, “We grew all of our major revenue lines...with real running room ahead.”

Looking forward, management believes continued product expansion, an increased focus on direct subscriber relationships, and new licensing deals—especially in the field of generative AI—will drive future growth. Execution of the company’s essential subscription strategy remains a priority, with further investments planned in journalism and digital experiences. CFO William Bardeen noted that upcoming quarters will see disciplined spending alongside targeted growth initiatives, stating, “We intend to continue operating efficiently while making disciplined investments in our high-quality journalism and digital product experiences.”

Key Insights from Management’s Remarks

Management cited strong performance in both digital subscriptions and advertising, as well as early upside from new video initiatives and the Amazon AI deal, as key drivers behind the quarter’s results.

• Digital bundle adoption milestone: The company reached a point where more than 50% of its subscribers now take multiple products, which management says leads to higher engagement, retention, and lifetime value per subscriber.
• Advertising growth from new ad products: Digital advertising revenues grew significantly, driven by expanded ad offerings, use of first-party data, and tools such as the AI-powered Brand Match. Management highlighted that new ad formats and easier execution for marketers have attracted greater demand in lifestyle segments like games and sports.
• Video content expansion: The New York Times expanded its video efforts, including more news videos, full-length shows, and enhanced lifestyle content. Management believes these initiatives will further engage audiences and strengthen the brand across platforms where video consumption is rising.
• Amazon AI licensing agreement: The company entered its first major licensing deal centered on generative AI, allowing Times content to be used across Amazon’s products and AI models. Management views this as a validation of the value of its intellectual property and expects it to open doors for similar opportunities.
• Disciplined investments and cost control: While operating costs rose slightly above guidance, management emphasized that spending was focused on high-impact areas, specifically journalism and digital product enhancements, supporting both current performance and long-term positioning.

Drivers of Future Performance

Management expects future performance to be shaped by continued growth in digital subscriptions, licensing partnerships, ongoing product innovation, and disciplined investment priorities.

• Direct audience strategy: Management stressed the importance of building direct relationships with users through apps and personalized experiences; this approach is seen as critical to mitigating traffic declines from external platforms and sustaining subscription and advertising growth.
• AI and licensing potential: The Amazon generative AI deal was described as consistent with the company’s strategy for fair value and control over content. Management remains open to further licensing partnerships, which could become a recurring revenue stream if similar agreements are secured.
• Product and bundle evolution: The company is rolling out new offerings such as a family subscription plan and expanding the bundle’s appeal. Management believes these initiatives will help deepen market penetration, improve subscriber retention, and increase average revenue per user over time.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of subscriber growth and adoption of new bundle and family plans, (2) the financial and strategic impact of the Amazon AI licensing agreement and any similar deals, and (3) the effectiveness of expanded video initiatives in driving engagement and monetization. Additionally, we will track how the company navigates evolving platform traffic trends and maintains cost discipline while investing in journalism and digital products.

The New York Times currently trades at $57.62, up from $53.63 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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