The persistent revenue decline (-8.3% YoY) and guidance for flat-to-down same-store revenue suggest the print-to-digital transition is still not offsetting legacy declines. Monitor Q3 for whether digital revenue growth accelerates enough to stabilize total revenue; the reiterated outlook provides no upside catalyst. The LocaliQ segment's 9% revenue decline and 12% customer count drop are concerning for the digital marketing growth narrative.
Price Chart
Executive Summary
USA TODAY Co. reported Q2 2026 revenue of $536.3M, down 8.3% YoY and 6.1% on a same-store basis, missing the $546.7M consensus. GAAP EPS of $0.06 beat the -$0.02 estimate, but the beat is largely mechanical from a prior-year tax benefit. The company reiterated its full-year outlook, but the persistent revenue decline and guidance for 'flat to down low single digits' on a same-store basis signals ongoing structural headwinds in print and LocaliQ segments, outweighing digital subscription growth and cost cuts.
Key Financial Metrics
Key Facts
- Total revenues of $536.3M decreased 8.3% YoY and 6.1% on a same-store basis, missing consensus of $546.7M.
- GAAP EPS of $0.06 beat the -$0.02 estimate, but the prior-year period included a large $87.5M tax benefit that distorted comparisons.
- Digital-only subscription revenues grew YoY for the second consecutive quarter, reaching $45.6M, and digital-only ARPU hit a record $10.47.
- LocaliQ core platform revenues declined 9% YoY to $106.3M, and core platform customer count fell 12% to 12.2k.
- Total digital paid subscriptions fell 16% YoY to 1.44M, with USA TODAY Media subscriptions down 19%.
- Free cash flow improved 11% YoY to $19.6M, and operating expenses were reduced by ~8% YoY.
- First lien net leverage decreased to 2.3x, down 14% YoY.
- Full-year 2026 outlook reiterated: total revenues expected flat to down low single digits on a same-store basis, with digital revenues making up 50%+ of total.
Financial Impact
Revenue miss of ~$10.4M vs consensus ($536.3M vs $546.7M). GAAP EPS beat of $0.08 vs -$0.02 estimate, but the beat is largely due to a prior-year tax benefit of $87.5M that made the YoY comparison easy.
Risk Factors
- Continued print revenue erosion outpacing digital growth
- LocaliQ core platform revenue and customer count declining
- Digital-only subscription base shrinking 16% YoY
- High debt load of $970.5M total principal outstanding
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001579684-26-000045 |
| Document: tday-20260806.htm | 0001579684-26-000045 |
| Document: 0001579684-26-000045-index-headers.html | 0001579684-26-000045 |
| Document: 0001579684-26-000045-index.html | 0001579684-26-000045 |
| Document: 0001579684-26-000045.txt | 0001579684-26-000045 |
| 8-K Data (Synthetic) | 0001579684-26-000045 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 5w ago | 8-K | $6.58 $7.21 | ▲ +9.57% | ▲ +6.60% | $6.72 (+2.13%) |
Aug 6, 2026 11w ago | 8-K | $8.00 $6.47 | ▲ +19.13% | ▲ +19.72% | $6.72 (+16.00%) |
Jun 12, 2026 19w ago | Institutional Cluster | $7.74 $8.51 | ▲ +9.95% | ▲ +8.17% | $6.72 (−13.18%) |
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May 12, 2026 23w ago | 8-K | $7.32 $7.92 | ▲ +8.20% | ▲ +9.92% | $6.72 (−8.20%) |
Apr 17, 2026 27w ago | DEFA14A | $7.31 $7.27 | ▼ −0.55% | ▼ −5.92% | $6.72 (−8.07%) |
Feb 28, 2026 34w ago | Institutional Cluster | $5.94 $6.80 | ▲ +14.48% | ▲ +22.42% | $6.72 (+13.13%) |
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