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USA TODAY (TDAY)
NYSE:TDAY
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USA TODAY (TDAY) AI Stock Analysis

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TDAY

USA TODAY

(NYSE:TDAY)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
$8.50
▲(19.38% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial fundamentals—especially high leverage and ongoing revenue pressure—despite positive free cash flow. Technicals are supportive with an improving price trend and neutral momentum readings, and the earnings call reinforced a constructive outlook for improving trends and cash flow, but valuation (P/E 39.5) remains a headwind given the risk profile.
Positive Factors
Consistent positive free cash flow
Sustained positive operating and free cash flow provides durable internal funding for debt service, product investment and buybacks. Over a multi‑quarter horizon this cash generation reduces reliance on external financing, supports transformation investments, and cushions earnings volatility.
Negative Factors
Very high leverage
Extremely elevated leverage materially heightens refinancing and interest‑rate risk, limits strategic optionality and constrains capital allocation. With a thin equity cushion, adverse revenue or margin shocks could force difficult tradeoffs between deleveraging, investment and shareholder returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive free cash flow
Sustained positive operating and free cash flow provides durable internal funding for debt service, product investment and buybacks. Over a multi‑quarter horizon this cash generation reduces reliance on external financing, supports transformation investments, and cushions earnings volatility.
Read all positive factors

USA TODAY (TDAY) vs. SPDR S&P 500 ETF (SPY)

USA TODAY Business Overview & Revenue Model

Company Description
USA TODAY Co., Inc. operates as a media and digital marketing solutions company in the United States. It operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company’s print offerings include hom...
How the Company Makes Money
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USA TODAY Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive view of the company's transformation: management reaffirmed full-year guidance and highlighted clear progress in higher-value digital initiatives — notably subscription ARPU (+34.4% YoY), digital other growth (+20.2% YoY), LOCALiQ improvements and double-digit free cash flow growth — while acknowledging near-term variability driven by advertising headwinds, lower overall revenue (-8.3% YoY) and traffic shifts away from traditional search. Management emphasized active mitigation (Palantir partnership, off-platform distribution, machine-readable content/licensing, cost discipline) and expects advertising and licensing trends to improve in the back half of the year. Given notable operational and cash-flow wins alongside identifiable but manageable headwinds, the tone is cautiously optimistic.
Positive Updates
Free Cash Flow Growth and Profitability
Generated approximately $19.6–$20.0 million of free cash flow in Q2, an increase of ~11.2% year-over-year; reported second consecutive quarter of positive GAAP net income of $9.1 million and adjusted net income of $11 million; cash provided by operating activities grew 8.6% to $35.4 million.
Negative Updates
Overall Revenue Decline
Total revenues were $536.3 million in Q2, down 8.3% year-over-year (down 6.1% on a same-store basis), reflecting continued headwinds and quarter-to-quarter variability.
Read all updates
Q2-2026 Updates
Negative
Free Cash Flow Growth and Profitability
Generated approximately $19.6–$20.0 million of free cash flow in Q2, an increase of ~11.2% year-over-year; reported second consecutive quarter of positive GAAP net income of $9.1 million and adjusted net income of $11 million; cash provided by operating activities grew 8.6% to $35.4 million.
Read all positive updates
Company Guidance
The company reaffirmed its full-year 2026 outlook, saying it expects same‑store revenue trends to meaningfully improve versus 2025, adjusted EBITDA to grow year‑over‑year with expanding margins, net income to improve and double‑digit free cash flow growth (marking a fourth consecutive year of free cash flow growth); these targets assume an improving back half as revenue mix shifts away from search. In Q2 the business generated $19.6M of free cash flow (up 11.2% YoY), reported total revenue of $536.3M (down 8.3% YoY; -6.1% same‑store), total adjusted EBITDA of $56.9M (10.6% margin), net income of $9.1M (adjusted net income $11M), and ended the quarter with $86.7M cash, $970.5M total debt (net debt $883.8M) after a $17.7M paydown. Management highlighted digital strengths they expect to drive the recovery: total digital revenues of $254.3M (47.4% of revenue, -4.2% YoY; -3.6% same‑store), digital‑only subscription revenue of $45.6M (+6.8% YoY) with record ARPU of $10.47 (+34.4% YoY), digital other of $20.4M (+20.2% YoY), LOCALiQ core platform revenue of $106.3M (+7%) with core ARPU $2,908 (+4.1%) and core platform EBITDA $13.2M (12.4% margin, +560 bps), and noted upside potential from Palantir work and AI/content licensing that is not included in current guidance.

USA TODAY Financial Statement Overview

Summary
Operating performance and cash generation are improving (positive operating cash flow and positive TTM free cash flow), but fundamentals remain constrained by declining TTM revenue (-2.1%), a TTM net loss, and a highly leveraged balance sheet (very high debt-to-equity around ~8.0x with a thin equity cushion), which increases refinancing and earnings-volatility risk.
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
56
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.23B2.30B2.51B2.66B2.95B3.21B
Gross Profit1.10B725.68M963.73M971.52M1.08B1.31B
EBITDA299.75M263.62M183.31M261.53M213.48M251.78M
Net Income-40.29M1.75M-26.35M-27.79M-78.00M-134.96M
Balance Sheet
Total Assets1.79B1.84B2.04B2.18B2.39B2.83B
Cash, Cash Equivalents and Short-Term Investments86.66M90.21M106.30M100.18M94.25M130.76M
Total Debt1.11B1.13B1.29B1.29B1.43B1.49B
Total Liabilities1.64B1.68B1.89B1.86B2.10B2.30B
Stockholders Equity153.75M155.11M153.14M317.79M295.74M532.10M
Cash Flow
Free Cash Flow61.59M62.90M50.78M56.46M-4.60M87.89M
Operating Cash Flow113.16M114.39M100.31M94.57M40.78M127.45M
Investing Cash Flow-38.24M8.97M-27.95M46.98M22.12M70.65M
Financing Cash Flow-75.96M-139.84M-68.85M-135.51M-102.87M-261.17M

USA TODAY Technical Analysis

Technical Analysis Sentiment
Last Price7.12
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDAY, the sentiment is undefined. The current price of 7.12 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for TDAY.

USA TODAY Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison

USA TODAY Corporate Events

Executive/Board ChangesShareholder Meetings
USA TODAY shareholders uphold supermajority governance at annual meeting
Neutral
Jun 1, 2026
At its June 1, 2026 annual meeting, USA TODAY Co., Inc. shareholders elected eight directors to serve until the 2027 meeting and ratified Grant Thornton LLP as the independent auditor for the fiscal year ending December 31, 2026. Investors also en...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
USA TODAY Clarifies Google Antitrust Litigation Disclosure Remarks
Neutral
May 12, 2026
On May 5, 2026, USA TODAY Co., Inc. clarified remarks made by CEO Michael Reed during an investor call about its ongoing litigation with Google, noting that he misspoke by describing certain figures as estimated damages rather than as interference...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2026