USA TODAY Co., Inc. Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. USA TODAY Co., Inc. is a diversified media company operating through three primary segments: USA TODAY Media (U.S. local and national publishing), Newsquest (U.K. publishing), and LocaliQ (digital marketing solutions). The company focuses on sustainable growth through trusted journalism and digital marketing products.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $548.5 million | $571.6 million |
| Net Income (Loss) | $19.9 million | ($7.3 million) |
| Diluted EPS | $0.12 | ($0.05) |
| Operating Cash Flow | $19.3 million | $23.3 million |
| Total Debt (Carrying Value) | $966.4 million | $954.2 million |
| Cash and Equivalents | $85.2 million | $85.9 million |
| Total Adjusted EBITDA | $73.1 million | $50.5 million |
Material Changes vs. Prior Period
- Revenue Decline: Total revenues decreased 4% year-over-year, driven by an 11% decline in Print and commercial revenues ($286.6M vs. $321.2M), partially offset by a 5% increase in Digital revenues ($261.9M vs. $250.4M).
- Profitability Turnaround: The company returned to profitability with $19.9 million in net income, compared to a $7.3 million loss in Q1 2025. This was aided by a significant reduction in integration and reorganization costs (down 77% to $2.2M) and lower depreciation and amortization (down 27% to $31.2M).
- Asset Sales: The company recognized a $7.8 million gain on the sale of assets in Q1 2026, compared to a $20.7 million gain in Q1 2025 (which included the sale of the Austin American-Statesman).
- Segment Performance:
- USA TODAY Media: Revenues down 5% to $416.1M; Adjusted EBITDA up 90% to $59.5M due to cost controls.
- Newsquest: Revenues up 7% to $59.8M; Adjusted EBITDA up 7% to $14.9M, aided by favorable foreign currency fluctuations.
- LocaliQ: Revenues down 8% to $99.7M; Adjusted EBITDA down 20% to $6.8M due to a decline in customer count.
Guidance, Outlook, and Risks
- Capital Expenditures: Management expects capital expenditures for the remainder of 2026 to total approximately $46 million, focused on digital product development and technology systems.
- Debt Structure: The 2029 Term Loan Facility was amended in January 2026 in connection with the transfer of The Detroit News. The facility bears interest at SOFR + 4.50% or Base Rate + 3.50% and requires quarterly amortization of $17.7 million (with a payment holiday for Q1 2026).
- Stock Repurchases: The company has a $100 million repurchase program with approximately $96.9 million remaining. No shares were repurchased under this program in Q1 2026.
- Risks:
- Macroeconomic Conditions: Inflation, interest rates, and consumer confidence continue to impact advertising demand.
- Print Decline: Secular decline in print advertising and circulation revenues is expected to continue.
- Legal Proceedings: The company is pursuing a civil action against Google LLC and Alphabet Inc. regarding anticompetitive practices; the outcome remains uncertain.
- Third-Party Platforms: Reliance on large technology companies for content visibility and ad distribution poses ongoing risks.
Investor Verification Checklist
- Debt Covenants: Verify compliance with the minimum unrestricted cash covenant ($30 million) and leverage ratios under the 2029 Term Loan Facility and Convertible Notes.
- Print Revenue Trajectory: Monitor the rate of decline in print advertising and circulation to assess the effectiveness of cost-cutting measures.
- LocaliQ Customer Count: Review the trend in LocaliQ customer count, which declined 11% year-over-year, impacting segment profitability.
- Google Litigation: Track developments in the antitrust lawsuit against Google, which represents a potential gain contingency but also involves ongoing legal costs.
- Foreign Currency Impact: Assess the sensitivity of Newsquest results to GBP/USD exchange rate fluctuations, which provided a positive impact in Q1 2026.