Overview
- The company reported on Wednesday that it added about 280,000 net digital‑only subscribers in Q2, bringing total subscribers to roughly 13.3–13.4 million and leaving the firm on a path to its 15 million target next year.
- For Q3 the Times guided digital‑only subscription revenue growth of 12–15%, a clear deceleration from recent quarters that weighed on investor expectations.
- Digital advertising and ARPU were bright spots, with digital ad revenue rising about 20–21% year‑over‑year and average revenue per user edging higher.
- Operating costs rose about 10–11% as the company increased compensation and intentionally invested in video production and a larger ad‑sales team to offset falling platform referrals.
- The firm disclosed $4.6 million in Q2 generative AI litigation expenses (about $32.9 million disclosed to date) and the weaker guidance and higher costs drove a sharp stock selloff, with declines reported as large as roughly 15%.