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Research Alert: Nyt: Strong Digital Subscription And Advertising Revenue Fuel Q1 Beat

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

NYT delivered a clean Q1 beat with adjusted EPS of $0.61 (+49% Y/Y) vs. consensus' $0.47, and revenue of $712.2M (+12.0% Y/Y) vs. the $700M estimate. Digital-only ARPU accelerated to +2.4% growth at $9.77, up from Q4's 0.7%, while digital advertising surged 31.6% to $93.3M, the strongest growth in five quarters. This combination of ARPU acceleration and digital ad strength reinforces the bull case for continued subscriber monetization, addressing key investor concerns around pricing power. Management guided Q2 digital subscription revenue growth of 14%-17% and digital advertising in the high-teens. We believe the 200 bps operating margin expansion to 16.6% demonstrates meaningful operating leverage as revenue growth outpaced cost increases. With the digital subscriber base reaching 12.52M, we expect continued earnings growth, led by promotional-to-paid transitions and selective price increases, though we will monitor whether net adds can maintain pace as the base scales.

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