Copyright Forbes
The New York Times’ stock (NYSE: NYT) has just reported another strong quarter — but the true narrative runs deeper. The 170-year-old publisher has subtly transformed into a high-margin digital subscription service, capitalizing on engagement across news, games, cooking, and reviews. For investors, the message is unequivocal: the transition in business model is yielding results — and the figures hidden beneath the surface explain why the story continues to be intriguing. Here are some additional details. That being said, if you seek upward potential with lower volatility than owning a single stock, you might want to consider the High Quality Portfolio. It has significantly outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has delivered returns exceeding 105% since its launch. What is the reason for this? Collectively, HQ Portfolio stocks have provided superior returns with diminished risk when compared to the benchmark index, avoiding considerable fluctuations, as demonstrated in HQ Portfolio performance metrics. Additionally, take a look at McDonald’s Hands Back $81 Billion 1. Subscribers Cross 12 Million The Times concluded Q3 with 12.33 million total subscribers, an increase of 460,000 from the previous quarter. Digital-only subscribers reached 11.76 million, representing nearly 95% of the overall base. This expansion highlights the strength of the Times’ direct-to-consumer engine in a landscape where many media peers are finding it challenging to sustain readership. Subscription additions also mitigated ongoing weakness in digital advertising — an encouraging indicator for revenue stability. 2. The Bundle Is Now the Core Business For the first time, bundle and multiproduct customers constituted over half of all subscriptions (51%), compared to less than a third two years ago. This is significant because bundle subscribers generate higher ARPU and lower churn rates. The company reported an average revenue per user (ARPU) of $12.84 for bundle subscribers — approximately 31% higher than the overall digital-only average of $9.79. That ARPU gap is widening, suggesting additional margin leverage as the mix shifts to multi-product households. 3. ARPU Growth Accelerates Digital-only ARPU increased by 3.6% year over year in Q3 2025, fueled by improved pricing on bundles and strategic retention of higher-value cohorts. This metric is arguably one of the best forward indicators for operating income growth, as it scales with gross margin while marketing expenses remain relatively stable. MORE FOR YOU If this ARPU trend persists, it could support mid-single-digit annual operating income growth even without significant subscriber increases — a crucial factor considering the NYT’s approximately 24x forward earnings multiple. 4. News-Only Is Becoming a Smaller Slice Pure news subscribers now account for just 13% of the total base, as the company aggressively shifts towards its all-access model. While this reduces choice for consumers interested in only one product, it greatly enhances revenue per reader and retention rates. The transition indicates management is emphasizing profitability per user over sheer scale — a strategy that aligns with the broader market’s preference for quality revenue over volume in a high-rate environment. With strong pricing power, increasing recurring revenue, and a growing base of multi-product subscribers, NYT is demonstrating that its digital pivot is more than just a headline trend. The market may be overlooking how these factors are enhancing stronger unit economics — positioning the company for sustained double-digit EPS growth, even in a sluggish ad environment.
