USA TODAY Co. reported lower third-quarter revenue as changes in consumer search and inflationary pressures weighed on results. The company also announced a new cost-cutting program, said it plans to make opportunistic share repurchases, and provided an update on its advertising-technology lawsuit against Google.
Management pointed to signs of stabilization in audience trends, stronger engagement and growth in several digital revenue categories. It expects the cost reductions, alongside digital growth, to lift fourth-quarter adjusted EBITDA and free cash flow sequentially and expand margins.
Third-quarter results and business trends
- Revenue was $519.2 million, down 7.4% from a year earlier. Same-store revenue fell 5.8%, a 30-basis-point improvement in the rate of decline from the second quarter.
- Digital revenue totaled $249.3 million, or 48% of total revenue. The company said direct-sold digital advertising, digital-only subscriptions and other digital revenue continued to grow, but provided no figures for those categories in the release excerpt.
- USA TODAY Co. recorded a $4.6 million net loss attributable to the company.
- Adjusted EBITDA was $36.6 million. Cash from operating activities was $16.7 million, and free cash flow was $4.3 million.
- The company cited changes in consumer search and inflationary pressures as factors affecting the quarter. It said audience trends showed signs of stabilization and engagement strengthened across its platforms.
Cost reductions and planned repurchases
- At the end of the quarter, the company implemented a cost-reduction program targeting $100 million in annualized savings. It said the lower cost structure was already benefiting its fourth-quarter run rate and that it would continue looking for further reductions.
- USA TODAY Co. said $96.9 million remained available under its authorized share-repurchase program and that it planned to be opportunistic with repurchases in the fourth quarter. The company said it believes its market valuation does not reflect the business’s underlying value or long-term potential.
Google advertising-technology litigation
- A court denied Google’s motion for summary judgment, and the trial is scheduled to begin April 5, 2027.
- The company cited a damages calculation of $901 million through 2024 that became public through the court’s ruling. USA TODAY Co. said it expects to update the calculation before trial to account for later damages.
- The $901 million figure is the company’s damages calculation, not a court award, and does not include potential treble damages.
The announced cost program is intended to lower the company’s expense base, while the planned repurchases would use part of the remaining authorization to buy shares. The litigation update describes the company’s claimed damages; it does not establish that Google owes that amount.