USA TODAY (TDAY) AI Stock Analysis

• Market Cap: $875.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -8.56%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -0.21
• Shares Outstanding: 147,108,750
• 10 Day Avg. Volume: 1,264,176
• 30 Day Avg. Volume: 1,402,993
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $8.03
• Price Target Upside: 31.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $2.25B

• Rating: 52 Neutral
• Price Target: $6.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial performance (ongoing revenue decline, very thin margins, and high leverage despite improved cash flow). Earnings call signals and moderate technical strength provide support, but valuation is constrained by negative earnings (negative P/E) and no stated dividend yield.

Positive Factors

Debt reduction

Reducing total debt below $1B materially improves financial flexibility and lowers refinancing risk versus prior years. A smaller debt burden supports continued investment in digital initiatives and reduces interest expense sensitivity, helping stabilize cash available for operations over the medium term.

Shift to digital revenues

A near-50% digital mix signals structural reorientation away from print. Higher digital mix supports recurring subscription and programmatic ad revenue, improves scalability, and reduces exposure to print circulation declines, enhancing long-term revenue quality and margins once scale and ARPU gains continue.

AI licensing partnerships

Licensing content to major AI platforms creates new, structural revenue streams and leverages proprietary journalism as an asset. Partnerships with large tech players can deliver recurring licensing fees, broaden distribution, and strengthen IP monetization, diversifying income beyond advertising and subscriptions.

Negative Factors

Multi-year revenue decline

Persistent top-line erosion reduces scale advantages and advertiser appeal, constraining ability to invest in product, staff, or marketing. Continued revenue decline increases the risk that digital gains won’t offset print erosion, pressuring margins and long-term growth prospects absent sustained new revenue streams.

High leverage vs equity

A large debt load relative to a compressed equity base limits strategic flexibility and raises refinancing and covenant risk in downturns. Even with recent reductions, the thin equity cushion increases sensitivity to earnings shocks and reduces headroom for acquisitions or material shareholder returns.

Extremely thin net margins

Margins are fragile—small advertising, circulation, or cost shocks can flip to losses. Limited profit buffer constrains reinvestment and makes long-term planning dependent on either sustained revenue improvement or deeper structural cost reductions to make profits durable.

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 home delivery on a subscription basis; single copy; and non-daily publications, such as shoppers and niche publications. It also provides digital-only subscription, including local media brands, USA TODAY NETWORK community events platform, magazines, sports, and games; and E-newspapers; and digital advertising and marketing services. In addition, the company offers digital news and media brands; daily and weekly newspapers; digital advertising and marketing products and solutions under the LocaliQ brand; cloud-based platform that offers a suite of products and solutions for marketing automation, AI-driven advertising optimization, and customizable reporting; commercial printing and distribution arrangements services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as Gannett Co., Inc. and changed its name to USA TODAY Co., Inc. in October 2025. USA TODAY Co., Inc. was incorporated in 2013 and is headquartered in New York, New York.

How the Company Makes Money

Gannett generates revenue through several key streams. The primary source is advertising revenue, which includes both print and digital advertising placements in its newspapers and online platforms. Additionally, Gannett earns money from subscription fees for its digital content and print publications. The company has also expanded its revenue model to include digital marketing solutions, offering services such as search engine optimization, social media marketing, and web development to local businesses. Partnerships with technology firms and advertising networks further enhance its revenue capabilities. The shift towards digital media consumption has led Gannett to focus on expanding its digital subscriptions and advertising, which has become increasingly vital for its financial growth.

USA TODAY Financial Statement Overview

Summary

Fundamentals are mixed: revenue continues a multi-year decline and margins are extremely thin, while free cash flow has improved (TTM OCF ~$114M; FCF ~$63M). The biggest constraint is leverage and a limited equity cushion, which reduces flexibility if operating conditions weaken.

Income Statement

TTM (Trailing-Twelve-Months) revenue of ~$2.30B continues a multi-year decline (TTM revenue down ~1.6%; annual revenue also fell each year from 2021–2024). Profitability has improved versus prior losses: TTM net income is slightly positive (~$1.7M) and operating profit is positive, but net margins remain extremely thin and vulnerable to small cost or advertising swings. Gross margin has also stepped down versus earlier years, indicating weaker pricing/publisher economics than in the past.

Balance Sheet

Leverage is the key constraint. TTM total debt is ~$1.13B against a small equity base of ~$155M, keeping debt meaningfully high relative to equity (though improved versus 2024). Equity has compressed sharply versus 2021–2023 levels, limiting financial flexibility and raising refinancing risk in a downturn. Returns to shareholders are positive in TTM but only modest given the thin earnings base.

Cash Flow

Cash generation is a relative bright spot. TTM operating cash flow is ~$114M and free cash flow is ~$63M, with a sharp improvement versus 2024 and a major recovery from the negative free cash flow seen in 2022. That said, cash flow covers only a modest portion of the debt load annually, and the gap between free cash flow and reported earnings suggests results can be sensitive to working-capital/timing effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.30B	2.51B	2.66B	2.95B	3.21B
Gross Profit	0.00	963.73M	971.52M	1.08B	1.31B
EBITDA	261.71M	183.31M	261.53M	213.48M	251.78M
Net Income	1.75M	-26.35M	-27.79M	-78.00M	-134.96M
Balance Sheet
Total Assets	1.84B	2.04B	2.18B	2.39B	2.83B
Cash, Cash Equivalents and Short-Term Investments	90.21M	106.30M	100.18M	94.25M	130.76M
Total Debt	1.13B	1.29B	1.29B	1.43B	1.49B
Total Liabilities	1.68B	1.89B	1.86B	2.10B	2.30B
Stockholders Equity	155.11M	153.14M	317.79M	295.74M	532.10M
Cash Flow
Free Cash Flow	62.90M	50.78M	56.46M	-4.60M	87.89M
Operating Cash Flow	114.39M	100.31M	94.57M	40.78M	127.45M
Investing Cash Flow	8.97M	-27.95M	46.98M	22.12M	70.65M
Financing Cash Flow	-139.84M	-68.85M	-135.51M	-102.87M	-261.17M

USA TODAY Technical Analysis

• Last Price: 6.12

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 6.12 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%