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USA TODAY
(NYSE:TDAY)
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Rating:50Neutral
Price Target:
$7.00
▲(9.37% Upside)
Action:Reiterated
Date:10/02/26
Overall score is held back primarily by weak financial profile fundamentals—ongoing revenue declines and especially high leverage despite improving operating profitability and positive free cash flow. Offsetting this, the earnings call was cautiously optimistic with reaffirmed guidance and tangible digital KPI improvements, while technicals are mixed and valuation is difficult to support due to negative earnings and no indicated dividend.
Positive Factors
Digital subscription monetization
Rising digital subscription revenue and ARPU show improving monetization of the paid audience, not merely dependence on advertising. This supports a more recurring revenue mix, increases customer value, and gives the company a durable foundation for digital growth over the next several quarters.
Negative Factors
Highly leveraged balance sheet
The large debt burden relative to equity leaves limited balance-sheet flexibility and increases sensitivity to refinancing needs and earnings volatility. Elevated leverage can constrain investment, reduce strategic options, and make a prolonged revenue downturn more damaging to the company’s financial stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital subscription monetization
Rising digital subscription revenue and ARPU show improving monetization of the paid audience, not merely dependence on advertising. This supports a more recurring revenue mix, increases customer value, and gives the company a durable foundation for digital growth over the next several quarters.
Read all positive factors
USA TODAY (TDAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield17.25%
Average Volume (3M)2.45M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-6.67%
EPS Growth-134.92%
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)-0.27
Shares Outstanding146,817,950
10 Day Avg. Volume2,288,044
30 Day Avg. Volume2,446,771
Financial Highlights & Ratios
PEG Ratio-4.02
Price to Book (P/B)4.82
Price to Sales (P/S)0.32
P/FCF Ratio11.88
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda8.95
Forecast
1Y Price Target
$8.60Price Target Upside34.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.29
Revenue Forecast (FY)$2.18B
USA TODAY Business Overview & Revenue Model
Company Description
USA TODAY Co., Inc. operates as a media and digital marketing solutions company in the United States. It operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company’s print offerings include hom...
How the Company Makes Money
Gannett (TDAY), through the USA TODAY brand and the USA TODAY Network, primarily makes money from two major revenue streams: (1) Subscription and other consumer revenue and (2) Advertising and marketing services revenue. Subscription/consumer reve...
USA TODAY Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive view of the company's transformation: management reaffirmed full-year guidance and highlighted clear progress in higher-value digital initiatives — notably subscription ARPU (+34.4% YoY), digital other growth (+20.2% YoY), LOCALiQ improvements and double-digit free cash flow growth — while acknowledging near-term variability driven by advertising headwinds, lower overall revenue (-8.3% YoY) and traffic shifts away from traditional search. Management emphasized active mitigation (Palantir partnership, off-platform distribution, machine-readable content/licensing, cost discipline) and expects advertising and licensing trends to improve in the back half of the year. Given notable operational and cash-flow wins alongside identifiable but manageable headwinds, the tone is cautiously optimistic.Positive Updates
Free Cash Flow Growth and Profitability
Generated approximately $19.6–$20.0 million of free cash flow in Q2, an increase of ~11.2% year-over-year; reported second consecutive quarter of positive GAAP net income of $9.1 million and adjusted net income of $11 million; cash provided by operating activities grew 8.6% to $35.4 million.
Negative Updates
Overall Revenue Decline
Total revenues were $536.3 million in Q2, down 8.3% year-over-year (down 6.1% on a same-store basis), reflecting continued headwinds and quarter-to-quarter variability.
Read all updates
Q2-2026 Updates
Positive
Negative
Free Cash Flow Growth and Profitability
Generated approximately $19.6–$20.0 million of free cash flow in Q2, an increase of ~11.2% year-over-year; reported second consecutive quarter of positive GAAP net income of $9.1 million and adjusted net income of $11 million; cash provided by operating activities grew 8.6% to $35.4 million.
Read all positive updates
Company Guidance
The company reaffirmed its full-year 2026 outlook, saying it expects same‑store revenue trends to meaningfully improve versus 2025, adjusted EBITDA to grow year‑over‑year with expanding margins, net income to improve and double‑digit free cash flow growth (marking a fourth consecutive year of free cash flow growth); these targets assume an improving back half as revenue mix shifts away from search. In Q2 the business generated $19.6M of free cash flow (up 11.2% YoY), reported total revenue of $536.3M (down 8.3% YoY; -6.1% same‑store), total adjusted EBITDA of $56.9M (10.6% margin), net income of $9.1M (adjusted net income $11M), and ended the quarter with $86.7M cash, $970.5M total debt (net debt $883.8M) after a $17.7M paydown. Management highlighted digital strengths they expect to drive the recovery: total digital revenues of $254.3M (47.4% of revenue, -4.2% YoY; -3.6% same‑store), digital‑only subscription revenue of $45.6M (+6.8% YoY) with record ARPU of $10.47 (+34.4% YoY), digital other of $20.4M (+20.2% YoY), LOCALiQ core platform revenue of $106.3M (+7%) with core ARPU $2,908 (+4.1%) and core platform EBITDA $13.2M (12.4% margin, +560 bps), and noted upside potential from Palantir work and AI/content licensing that is not included in current guidance.USA TODAY Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.23B | 2.30B | 2.51B | 2.66B | 2.95B | 3.21B |
| Gross Profit | 768.78M | 725.68M | 963.73M | 971.52M | 1.08B | 1.31B |
| EBITDA | 299.75M | 263.62M | 183.31M | 261.53M | 213.48M | 251.78M |
| Net Income | -40.29M | 1.75M | -26.35M | -27.79M | -78.00M | -134.96M |
Balance Sheet | ||||||
| Total Assets | 1.79B | 1.84B | 2.04B | 2.18B | 2.39B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 86.66M | 90.21M | 106.30M | 100.18M | 94.25M | 130.76M |
| Total Debt | 1.11B | 1.13B | 1.29B | 1.29B | 1.43B | 1.49B |
| Total Liabilities | 1.64B | 1.68B | 1.89B | 1.86B | 2.10B | 2.30B |
| Stockholders Equity | 153.75M | 155.11M | 153.14M | 317.79M | 295.74M | 532.10M |
Cash Flow | ||||||
| Free Cash Flow | 61.59M | 62.90M | 50.78M | 56.46M | -4.60M | 87.89M |
| Operating Cash Flow | 113.16M | 114.39M | 100.31M | 94.57M | 40.78M | 127.45M |
| Investing Cash Flow | -38.24M | 8.97M | -27.95M | 46.98M | 22.12M | 70.65M |
| Financing Cash Flow | -75.96M | -139.84M | -68.85M | -135.51M | -102.87M | -261.17M |
USA TODAY Technical Analysis
Negative
6.40
Price Trends
6.66
Positive
7.43
Negative
7.05
Negative
Market Momentum
0.07
Positive
49.11
Neutral
31.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDAY, the sentiment is Negative. The current price of 6.4 is below the 20-day moving average (MA) of 6.94, below the 50-day MA of 6.66, and below the 200-day MA of 7.05, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 31.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDAY.
USA TODAY Risk Analysis
USA TODAY disclosed 1 risk factors in its most recent earnings report. USA TODAY reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
USA TODAY Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.22B | 28.75 | 19.47% | 1.25% | 10.76% | 23.78% | |
72 Outperform | $17.16B | 32.79 | 6.62% | 0.65% | 1.06% | 26.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | $1.01B | -25.41 | -25.00% | 17.25% | -6.67% | -134.92% | |
48 Neutral | $708.76M | 25.50 | 7.05% | 2.21% | -2.53% | ― | |
45 Neutral | $140.89M | -4.08 | 38.08% | ― | -11.12% | 72.31% | |
42 Neutral | $2.47M | -0.02 | -249.02% | ― | -7.16% | 71.12% |
* Communication Services Sector Average
TDAY
USA TODAY
6.86
3.18
86.41%
LEE
Lee Enterprises
6.32
1.65
35.45%
NYT
New York Times
69.58
12.97
22.90%
NWSA
News Corp
30.74
4.19
15.77%
SCHL
Scholastic
38.50
10.25
36.27%
TNMG
TNL Mediagene
3.25
-49.87
-93.88%
USA TODAY Corporate Events
Business Operations and StrategyExecutive/Board Changes
USA TODAY appoints Tim Allen to board of directors
Positive
Sep 15, 2026
On September 15, 2026, USA TODAY Co., Inc. expanded its Board of Directors from eight to nine members and appointed Tim Allen, Chief Executive Officer of global digital language-learning firm Babbel, as an independent director. Allen will serve on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.