The New York Times Posts Strong Digital Growth in 2025, Eyes Video Expansion

The New York Times Company (NYSE: NYT) capped off a transformative 2025 with significant financial momentum, powered by its digital subscription engine and growing advertising revenue. In its fourth-quarter and full-year earnings report, the storied publisher demonstrated resilience in a fragmented media ecosystem, surpassing 12.8 million total subscribers and generating over $2 billion in digital revenue for the first time.

CEO Meredith Kopit Levien characterized 2025 as "a year of powerful execution," noting the addition of 1.4 million net new digital subscribers. This growth edges the company closer to its publicly stated goal of 15 million subscribers. "Our strategy is working," Levien stated. "We are building a deeper, more habitual relationship with our audience, which is reflected in our engagement and financial results."

Financially, the company's pivot to digital continues to pay dividends. Full-year total revenue grew approximately 9%, reaching $2.82 billion. The digital segment was the clear standout: digital subscription revenue rose 14%, while digital advertising surged an impressive 20%. This helped propel adjusted operating profit up 21% to $550 million. CFO Will Bardeen highlighted a capital-efficient model that generated $551 million in free cash flow, bolstered by one-time benefits from tax changes and asset sales.

The fourth quarter sustained this momentum, with 450,000 net new digital subscribers and a 14% jump in digital-only subscription revenue. Advertising outperformed expectations, with total ad revenue up 16%. Bardeen attributed the digital ad strength to "robust marketer demand and new, premium inventory."

Looking ahead, management identified video as a central pillar of its growth strategy. With linear television viewership declining, Levien sees a major opportunity for The Times to become a destination for "watching the news." The company is scaling formats like "Visual Investigations" and adapting hit podcasts into video series, distributing content both on its core app and off-platform. "We are in the early innings of building a meaningful video business," Levien remarked.

The company also addressed the dual challenges of artificial intelligence and a "polarized, low-trust" information environment. Levien acknowledged AI presents headwinds but expressed confidence that the Times's "differentiated, habit-forming" products provide a buffer. She noted internal use of AI to enhance accessibility and an AI-powered ad product performing well.

On costs, Bardeen reported adjusted operating expenses grew 9.7% for the year, above guidance, largely due to performance-linked compensation. He forecast an 8-9% cost increase for Q1 2026, driven by investments in video production across The Times and The Athletic. The company remains committed to growing revenue faster than costs over the long term.

Capital allocation priorities remain unchanged: reinvesting in the subscription business and returning at least 50% of free cash flow to shareholders. The board approved a 28% dividend increase to $0.23 per share quarterly.

Reader Reactions

David Chen, Media Analyst at Sterling Insights: "The numbers are undeniably strong. The Times has successfully transitioned from a print-centric model to a digital subscription powerhouse. Their focus on ARPU growth and bundling is a masterclass in monetizing journalism. The video push is logical, but it's a crowded, expensive field."

Rebecca Shaw, Long-time Subscriber from Boston: "As a subscriber for 15 years, I'm glad they're thriving. The journalism is worth it. But I'm wary of the price increases—my bundle just went up. I hope the investment truly goes back into the newsroom and not just shareholder pockets."

Marcus Johnson, Former Newspaper Editor: "This is a bittersweet report. While the digital success is commendable, it underscores the devastation in local news. The Times is becoming a global behemoth while local papers shutter. Their 'high-return organic investment' is smart for them, but it does nothing to solve the broader crisis in our industry."

Priya Mehta, Tech & Media Blogger: "The video ambition feels reactive. Everyone is chasing Netflix and YouTube. Their real advantage is deep-reporting and text analysis—can that truly translate to a 'watch' tab? Also, glossing over the AI 'headwinds' is naive. That disruption is just beginning."