The New York Times Company (NYT) Income Statement

The sequential acceleration in revenue growth, from 5.8% in 2024Q2 to 11.2% in 2026Q2, suggests that the company's subscription and advertising strategies are gaining traction. This trend is supported by consistent quarter-over-quarter improvements, with the most recent quarter showing the highest growth rate in the period. The durability of this growth appears robust, as it is not reliant on a single quarter but reflects a multi-quarter trend.

Gross margin has expanded by over 500 basis points from 2024Q1 to 2026Q2, indicating that NYT is successfully managing its cost of goods sold while growing revenue. The cyclicality is evident in the seasonal dip in Q1 margins (46.2% in 2026Q1) versus Q4 peaks (54.2% in 2025Q4), which likely reflects advertising seasonality. This suggests that the company has structural pricing power, but investors should monitor the sustainability of these margins given the competitive landscape.

The operating margin has nearly doubled from 8.1% in 2024Q1 to 15.5% in 2026Q2, demonstrating significant operating leverage. This is particularly notable in 2026Q2, where revenue grew 11.2% year-over-year while SG&A increased only modestly, leading to a 118% increase in operating income. The company appears to be scaling efficiently, though the volatility in SG&A (e.g., a spike in 2026Q1) suggests that cost control may not be uniform across quarters.

R&D expenses have been relatively flat, hovering between $61M and $70M, suggesting a consistent investment in product development. In contrast, SG&A has shown significant volatility, with a notable spike to $213.3M in 2026Q1, which compressed operating margins to 13.5%. This variability may reflect marketing campaigns or one-time costs, and investors should monitor whether SG&A growth aligns with revenue growth over the long term.

The period from 2025Q1 to 2026Q2 represents a clear inflection point, with operating income more than doubling from $58.6M to $118.0M. This was driven by accelerating revenue growth and improving gross margins, which expanded from 47.4% to 51.8%. The lasting impact is a structurally higher profitability level, as operating margins have consistently exceeded 15% in recent quarters, compared to sub-10% levels in early 2024.