| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 78 | — | 17.3x | Top tier | |
Growth | 11 | -6.7% | 7.1% | Bottom tier | |
Quality | 33 | 0.7% | 4.5% | Bottom tier | |
Safety | 37 | 3.2x | 2.6x | Bottom tier | |
Capital Return | 54 | 0.00% | 0.06% | Around median | |
Momentum | 66 | 83.8% | -1.6% | Top tier | |
Sentiment | 69 | 4 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
USA TODAY Co. Inc., listed under the ticker TDAY, combines news content publishing and marketing through USA TODAY Media and Newsquest with digital marketing services through LOCALiQ. It generates revenue from advertising and subscriptions, alongside content licensing and distribution, affiliate commerce, and artificial intelligence partnerships. Its core transformation involves building direct relationships with readers and subscribers and generating more revenue from audience data and content, while reducing reliance on referrals from traditional search.
In quarter 2 of fiscal year 2026 (ended 2026-06-30), revenue was $536.3 million, down 8.3% from the same quarter of the previous year, while net income was $9.1 million and diluted earnings per share were $0.06. Gross margin was 38.8%, compared with 38.5% in quarter 2 of fiscal year 2025. Digital revenue was $254.3 million, representing 47.4% of total revenue in quarter 2 of fiscal year 2026, but declined 4.2% from the same quarter of the previous year; progress in subscriptions and licensing has therefore not yet offset pressure on the remaining digital businesses.
Performance varied across businesses in quarter 2 of fiscal year 2026: adjusted earnings before interest, taxes, depreciation, and amortization for USA TODAY Media were approximately $42 million at a margin of 10.6%, for Newsquest approximately $14.3 million at a margin of 24.2%, and for LOCALiQ approximately $13.2 million at a margin of 12.4%. At the group level, operating cash flow according to EL7 data was approximately $35.4 million for that quarter, but net income for the last 12 months through 2026-06-30 remained negative at -$40.3 million. This picture shows improving cash generation and positive quarterly profitability, without a completed transition to sustainable profitability.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-29
Revenue in the expected earnings announcement, with a threshold of $536.3 million
Gross margin in the expected earnings announcement, with a threshold of 38.8%
The indicative value from the median analyst price target is $8.05, based on two analysts and with low confidence, and reflects their growth expectations; the consensus recommendation is neutral. The industry-multiple value is $4.48, within a range of $2.68 to $5.66, based on next year's earnings and a median multiple of 17.8 across 8 companies, meaning USA TODAY's earnings are valued using the multiple of comparable companies. The analyst-target value lies above the entire range of the industry-multiple method, so the two methods do not converge; the difference reflects the targets' inclusion of growth expectations versus the second method's reliance on valuing earnings in line with peers, alongside analysts' inherent tendency toward optimistic targets. Citi's reduction of its target from $8.05 to $7.2 on 2026-08-24 adds a note of caution to the interpretation of expectations.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
In quarter 2 of fiscal year 2026 (ended 2026-06-30), digital-only subscription revenue increased 6.8% from the same quarter of the previous year to $45.6 million. Average revenue per user increased 34.4% to $10.47, alongside reduced deep discounting, an improved subscriber mix, and the elimination of subscriptions with weak economics. The company added Marvel Comics content to PLAY during the quarter, but explained on the 2026-08-06 call that assuming average revenue would continue growing at this pace was inappropriate.
The work with Palantir aims to connect audience data and content to deliver advertising, commercial products, and subscription offers that are more relevant to users. As of the 2026-08-06 call, questions submitted to DeeperDive had exceeded 50 million since its launch in September 2025, with average daily activity exceeding 390,000 interactions. Management said DeeperDive tests showed improvements in engagement, advertising revenue per session, and subscription intent, while it included no financial benefit from the work with Palantir in fiscal year 2026 guidance.
Automated analysis for informational purposes only — not investment advice.
Year-over-year growth in other digital revenue in the expected earnings announcement, with a threshold of 20.2%
Operating cash flow according to EL7 data was approximately $113.2 million for the last 12 months through 2026-06-30, versus a net loss of -$40.3 million for the same period. Free cash flow calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months was approximately $61.6 million. In quarter 2 of fiscal year 2026 (ended 2026-06-30), total debt according to EL7 data was approximately $1.0 billion versus cash and short-term investments of $139.6 million, excluding long-term marketable securities from this comparison.
USA TODAY generated approximately 3 billion video views outside its platforms in the first half of fiscal year 2026, including more than a billion views on TikTok. However, digital advertising revenue declined 9.2% in quarter 2 of fiscal year 2026 (ended 2026-06-30) from the same quarter of the previous year, under pressure from changes in search, the loss of a programmatic advertising partner, and a platform policy change affecting a paid-link partner. Management explained on the 2026-08-06 call that converting external reach into direct relationships and full revenue takes time, through platform revenue sharing, sponsorships, sponsored content, and subscriptions.
The designated earnings announcement date is 2026-10-29, and it is expected. Revenue of $536.3 million and gross margin of 38.8% in quarter 2 of fiscal year 2026 (ended 2026-06-30) provide two comparison points for measuring improvement in business activity and gross profitability. Other digital revenue growth of 20.2% from the same quarter of the previous year in that quarter also merits monitoring to assess whether strength in licensing, artificial intelligence partnerships, and commerce continues. Management reaffirmed on the 2026-08-06 call its fiscal year 2026 guidance for growth in adjusted earnings before interest, taxes, depreciation, and amortization and double-digit growth in free cash flow.