The New York Times Company (NYT) Cash Flow Statement

The OCF/NI ratio averaged well above 1.0 across the period, with a notable spike in 2026Q2 driven by strong collections and working capital inflows. This suggests that reported earnings are backed by actual cash generation, a positive signal for earnings quality. However, the seasonal dip in Q1 2026 (1.05x) warrants monitoring, as it may reflect timing of subscription billings or bonus payments.

The trajectory shows a clear upward trend, with FCF margins consistently improving each quarter, except for seasonal dips in Q1. This aligns with the income statement's accelerating revenue growth and margin expansion, indicating that the company is converting top-line growth into cash at an increasing rate. The 2026Q2 FCF of $265.7M is a record high, suggesting the digital subscription model is highly cash-generative.

NYT's capital expenditures are modest relative to its revenue, reflecting a digital-first business model that requires less physical infrastructure. The slight increase in CapEx in 2026Q2 (2.7% of revenue) may indicate investments in technology or content, but it remains well below peers, supporting high FCF conversion. This low capital intensity suggests that most of the operating cash flow is available for deployment or reinvestment.

The volatility in working capital is largely seasonal, with Q1 typically showing negative changes due to payouts and Q3 showing positive inflows. The positive working capital contribution in 2026Q2 ($18.2M) helped boost OCF, suggesting effective management of receivables and payables. Investors should monitor whether these swings stabilize as the subscription base grows, but current trends indicate no structural deterioration.

Capital deployment has intensified, with share repurchases growing significantly and dividends increasing steadily. The 2026Q2 buyback of $91.8M is the largest in the period, indicating management's confidence in cash generation. However, the rising SBC ($39.3M in 2026Q2) partially offsets the buyback's anti-dilutive effect, so net share count reduction may be less than gross buybacks suggest.

The cumulative OCF/NI ratio of approximately 1.68x over the period underscores the high quality of NYT's earnings, with cash generation consistently ahead of net income. This divergence is likely driven by non-cash charges like D&A and SBC, as well as favorable working capital dynamics. It suggests that the company's reported profitability is conservative and that cash flows are more than sufficient to fund growth and shareholder returns.