The New York Times Posts Strong Q4 Revenue, but Video Push and Rising Costs Give Investors Pause
The New York Times Company (NYSE: NYT) delivered a top-line beat for the fourth quarter of 2025, with revenue climbing 10.4% year-over-year to $802.3 million. Non-GAAP earnings per share of $0.89 met analyst forecasts. Yet, the market reaction was decidedly cautious, with shares declining post-earnings as investors weighed robust growth against a rising cost profile tied to ambitious video expansion.
The quarter was powered by sustained strength in digital subscriptions and a notable rebound in digital advertising. CEO Meredith Kopit Levien pointed to the company's diversified portfolio—including Games, The Athletic, and Cooking—as key drivers of subscriber engagement and reach. "Every part of our portfolio contributed," Levien stated, underscoring a strategy that extends beyond core news.
However, the financial narrative was tempered by rising operating expenses, which surpassed prior guidance. A significant portion stemmed from performance-linked incentive compensation and, more pivotally, stepped-up investments in video journalism and production. CFO Will Bardeen acknowledged the cost pressure, framing it as necessary spending to bolster the company's journalistic output and digital product experiences for the long term.
Looking ahead, management's guidance hinges on this strategic bet: establishing The Times as a premier destination for video news. While expressing confidence in subscriber and advertising trends, executives warned that cost growth would remain "elevated" as video initiatives and related marketing ramp up. Levien outlined a "long-term opportunity to establish The Times as a preferred brand for watching news," while Bardeen emphasized the need for "disciplined capital allocation" alongside investment.
Analysts and investors are now closely watching several key metrics: the adoption of new video formats, the impact of recent price increases on subscriber retention, and whether operating margins can stabilize as these heavy investments continue.
Reader Reactions
Michael R., Media Analyst in Boston: "The digital revenue engine is still firing, which is impressive. The video pivot is a necessary long-game in a visual media landscape, but the margin compression is real. The market is right to be skeptical until we see a clearer path to monetization and scale."
David Chen, Portfolio Manager: "This is classic 'growth vs. profit' tension. The Times is choosing to reinvest its digital success into a costly new vertical. If they can capture a 'CNN-meets-YouTube' audience, it pays off. If not, it's a major drag on profitability for years."
Sarah P., Former Print Journalist (Sharply Critical): "It's infuriating. They're chasing shiny, expensive video objects while local news deserts expand across the country. The 'journalism investment' line rings hollow when it's mostly for high-production NYC studio content. This feels less like a public trust and more like a media conglomerate betting the farm on a trendy—and crowded—format."
Priya V., Digital Subscriber in Seattle: "As a user, I've noticed the push for video in the app. Some documentaries are excellent, but it often feels intrusive next to written reporting. I subscribe for deep analysis, not autoplay news clips. I hope they find a balance without diluting what makes them unique."