A diversified media company, USA TODAY Co. publishes the national newspaper USA TODAY along with hundreds of local U.S. news brands and the U.K.'s Newsquest papers, and runs LocaliQ, a digital marketing platform for small businesses. Its roots trace to Frank Gannett's 1906 purchase of the Elmira Gazette, and in 2025 the former Gannett Co. renamed itself after its best-known paper. Fun fact: USA TODAY launched in 1982 and became the first truly national daily newspaper in the U.S.
Digital revenue contracted 4% and net income fell 88% as a prior-year tax benefit did not repeat.
The digital business, the company's primary growth engine, contracted for a second consecutive quarter. fell 8.3% to $536.3 million and dropped 88.4% to $9.1 million, as a $92.8 million swing in the income tax provision erased the prior year's profit and digital revenue declined 4%. The company returned to a reported , but the top-line decline is accelerating.
Key takeaways
Digital fell 4% , following a 5% decline in Q1 2026, confirming a contraction in the business that had been the company's primary growth driver.
fell 88.4% to $9.1 million from $78.4 million a year ago, driven entirely by a $92.8 million swing in the income tax provision — the prior-year quarter included an $87.5 million tax benefit that did not recur.
swung to a $14.5 million profit from a $9.1 million loss a year ago, as integration and reorganization costs dropped 81% to $2.3 million and fell 14% to $20.9 million on lower debt balances.
Section summaries
Management's Discussion and Analysis
Total revenues fell 8% in Q2 2026 to $536M, driven by print declines, while net income dropped 88% to $9.1M due to a prior-year tax benefit.
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Consolidated decreased 8% to $536.3M in Q2 2026, with print and commercial down 12% and digital down 4%.
Print and commercial fell 12%, with the USA TODAY Media reporting double-digit declines in both print advertising and print circulation, partially offset by 6% growth in digital-only subscription revenue within that segment.
The LocaliQ saw decline 9% to $106.6 million, driven by a 12% drop in core platform average customer count, though core platform average revenue per user rose 3%.
rose 11.8% to $19.6 million, and the company reduced by 4.4% to $879.4 million.
What changed
The digital contraction flagged in Q1 2026 deepened: after a 5% decline in Q1, digital revenue fell 4% in Q2, confirming the reversal from the 5% growth reported in Q1 2026 is not yet stabilizing.
The USA TODAY Media 's digital-only subscription grew 6%, a partial recovery from the 14% decline reported in Q3 2025, but the company still did not report a subscriber count, leaving the base size unknown.
The newsprint supply risk flagged in the FY 2025 10-K — a supplier ceasing operations in January 2026 — did not materially affect costs this quarter, as remained at 38.8%, though this was down 1.5 points sequentially from 40.3% in Q1 2026.
Recurring operating profitability improved: the company reported a $14.5 million without relying on the large asset sale gains or tax benefits that had supported prior quarters, though a $7.8 million gain on asset sales in Q1 2026 did not repeat.
What to watch
Digital trajectory — whether the 4% decline in Q2 2026 stabilizes or accelerates, and whether the 6% growth in USA TODAY Media digital-only subscription revenue can offset the 9% decline at LocaliQ.
USA TODAY Media digital-only subscriber count — whether the company resumes reporting a subscriber figure to clarify whether the 6% subscription growth reflects volume recovery or solely increases.
Newsprint costs — with a supplier having ceased operations in January 2026, whether alternative sourcing begins to pressure in the second half of the year.
and debt reduction — with free cash flow at $19.6 million in Q2 and $26.0 million for the first half, whether the company can continue prepaying its term loan while maintaining the $30 million minimum liquidity .
USA TODAY Media fell 9% to $397.7M, driven by double-digit declines in print advertising and circulation, partially offset by 6% growth in digital-only subscription revenue.
LocaliQ declined 9% to $106.6M due to a 12% drop in core platform average customer count, though Core platform rose 3%.
Total decreased to $56.9M from $64.2M in Q2 2025, while attributable to USA TODAY Co. fell to $9.1M from $78.4M, largely due to a $92.8M swing in income tax provision.
was $54.6M for the first half of 2026, slightly below the prior year, and the company expects ~$30M in remaining 2026 , primarily for digital and technology projects.
Integration and reorganization costs dropped 81% to $2.3M, and fell 14% to $20.9M, reflecting lower debt balances and rates.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes during the quarter ended June 30, 2026, to the information disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk of our Form 10-K for the fiscal year ended December 31, 2025.
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There have been no material changes during the quarter ended June 30, 2026, to the information disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk of our Form 10-K for the fiscal year ended December 31, 2025.
Information regarding legal proceedings may be found in Note 11 — Commitments, contingencies, and other matters — Legal proceedings of the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
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Information regarding legal proceedings may be found in Note 11 — Commitments, contingencies, and other matters — Legal proceedings of the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
There have been no material changes to the risk factors described in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended December 31, 2025.
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There have been no material changes to the risk factors described in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended December 31, 2025.