USA Today Q4 Digital Mix Tops 47% as EBITDA Rises 17%
USA Today digital revenue reached $277.5M, over 47% of total $585M Q4 sales, and management expects to exceed a 50% digital mix in 2026. Adjusted EBITDA grew 17% to $91.1M with a 15.6% margin, while operating costs fell 9% and Q4 free cash flow hit $31.5M.
1. Q4 Financial Highlights
Total revenue for the quarter was $585 million, down 5.8% year-over-year and 3.9% on a same-store basis. Digital revenue rose to $277.5 million, up 5.6% sequentially, with same-store digital sales flat. Same-store revenue trends improved by 290 basis points from Q3, driven by targeted subscriptions and sports and entertainment verticals.
2. Digital Revenue and AI Licensing
Digital mix reached a record 47% of total revenue, and management expects to surpass 50% in 2026. The “digital other” category jumped 27.1% year-over-year, driven largely by AI licensing deals with Meta and Microsoft, though recognition timing remains variable.
3. Profitability and Cost Management
Adjusted EBITDA climbed 17% year-over-year to $91.1 million, delivering a 15.6% margin, the strongest profitability in four years. Operating costs and SG&A expenses declined 9% from the prior-year quarter, reflecting continued cost discipline.
4. Cash Flow and Balance Sheet
Q4 free cash flow was $31.5 million, lifting full-year free cash flow to $64.2 million, a 10% increase. Net debt stood at $887.1 million with first-lien net leverage down to 2.4x. LocaliQ revenue was $107.3 million with $16.6 million in EBITDA, while Newsquest revenue grew 3.1% to £60.1 million with a 22.5% margin.