Gannett is cutting costs by $100 million and revamping its subscription strategy as it seeks to steady its finances following a difficult start to 2025.
The largest newspaper chain in the United States reported second-quarter revenue of $584.9 million, down 8.6% compared with the previous year, but turned a profit of $78.4 million, up sharply from $13.7 million in the same period last year.
The savings programme includes closing two major print facilities, shifting some markets to mail delivery and expanding the use of automation and outsourcing in back-office operations. Chief Financial Officer Trisha Gosser said artificial intelligence would be central to improving workflows and unlocking further efficiencies.
CEO Mike Reed said the cuts likely include the impact of recent company-wide buyouts prompted by “static revenue trends.” He described AI as key to driving future savings and signalled a strategic shift toward deeper integration of technology across the business.
Gannett is also moving away from a reliance on steeply discounted introductory offers for its subscriptions –such as USA Today’s $9.99 monthly trial – which drove initial sign-ups but led to high cancellation rates. The company will now prioritise annual subscriptions, vary pricing by market and offer pay-per-article options. Reed said the changes would cause short-term disruption but were already starting to deliver results.
On the content side, Gannett is investing in verticals such as sports and entertainment to drive engagement. It recently appointed former People editor-in-chief Wendy Naugle as executive editor of entertainment across the USA Today network.
Despite these shifts, the company expects digital-only subscription growth to lag for several quarters and has revised its full-year outlook. It now anticipates a loss in 2025, before returning to flat revenue and improved net income in 2026.
Gannett is also using AI to explore new revenue streams. It has signed a licensing deal with Perplexity, deployed Taboola’s DeeperDive tool on USA Today and taken steps to block AI models from scraping its content. Reed described the changing dynamics between publishers and AI platforms as a “momentous shift,” predicting a wave of new licensing agreements in the year ahead.
Source: Noah Wire Services
- https://www.poynter.org/business-work/2025/gannett-earnings-call-gci-media-company/ – Please view link – unable to able to access data
- https://www.gurufocus.com/news/3021749/gannett-announces-second-quarter-2025-results-updated-business-outlook-100-million-cost-reduction-program-gci-stock-news – Gannett Co., Inc. reported its financial results for the second quarter ending June 30, 2025, highlighting a net income of $78.4 million and total revenues of $584.9 million, marking an 8.6% year-over-year decrease. The company announced a $100 million cost reduction program aimed at enhancing long-term growth and margin improvements. Additionally, Gannett reported a 4% increase in digital advertising revenues from the previous quarter’s decline, signaling an optimistic outlook for continued improvement in the third quarter. The company also highlighted its AI initiatives, including a licensing agreement with Perplexity and the launch of Taboola’s AI tool, DeeperDive, on the USATODAY platform. Measures to counter unauthorized AI scraping have been implemented to protect the company’s valuable content.
- https://www.gurufocus.com/news/3022012/gannett-announces-second-quarter-2025-results-updated-business-outlook-100-million-cost-reduction-program – Gannett Co., Inc. reported its financial results for the second quarter ending June 30, 2025, highlighting a net income of $78.4 million and total revenues of $584.9 million, marking an 8.6% year-over-year decrease. The company announced a $100 million cost reduction program aimed at enhancing long-term growth and margin improvements. Additionally, Gannett reported a 4% increase in digital advertising revenues from the previous quarter’s decline, signaling an optimistic outlook for continued improvement in the third quarter. The company also highlighted its AI initiatives, including a licensing agreement with Perplexity and the launch of Taboola’s AI tool, DeeperDive, on the USATODAY platform. Measures to counter unauthorized AI scraping have been implemented to protect the company’s valuable content.
- https://www.panabee.com/news/gannett-q1-quarterly-earnings-2025 – Gannett Co., Inc. reported a net loss of $7.3 million for the first quarter of 2025, a significant improvement from the prior-year loss of $84.7 million. Total revenue fell 10.1% year-over-year to $571.6 million, driven by the sale of the Austin-American Statesman and the disposal of non-core assets. Excluding these factors, same-store revenue declined 7.7%, reflecting ongoing challenges in traditional advertising and print operations. However, the company made strides in profitability metrics, with Adjusted EBITDA rising to $50.5 million and free cash flow improving by 7.6% to $10.2 million. Debt reduction remains a priority, with $74.5 million repaid in Q1, lowering total principal debt to $1.037 billion and reducing first-lien leverage to 2.6x, a 4.8% sequential improvement. Gannett’s digital strategy showed encouraging trends, with audience reach growing to 195 million monthly unique visitors, a 4.7% increase year-over-year. The company reaffirmed its 2025 outlook, forecasting 7-10% same-store growth in digital revenue, with digital representing 50% of total revenue by year-end.
- https://www.stocktitan.net/news/GCI/gannett-announces-additional-debt-02hu3twm613f.html – Gannett Co., Inc. reported a net loss of $7.3 million for the first quarter of 2025, a significant improvement from the prior-year loss of $84.7 million. Total revenue fell 10.1% year-over-year to $571.6 million, driven by the sale of the Austin-American Statesman and the disposal of non-core assets. Excluding these factors, same-store revenue declined 7.7%, reflecting ongoing challenges in traditional advertising and print operations. However, the company made strides in profitability metrics, with Adjusted EBITDA rising to $50.5 million and free cash flow improving by 7.6% to $10.2 million. Debt reduction remains a priority, with $74.5 million repaid in Q1, lowering total principal debt to $1.037 billion and reducing first-lien leverage to 2.6x, a 4.8% sequential improvement. Gannett’s digital strategy showed encouraging trends, with audience reach growing to 195 million monthly unique visitors, a 4.7% increase year-over-year. The company reaffirmed its 2025 outlook, forecasting 7-10% same-store growth in digital revenue, with digital representing 50% of total revenue by year-end.
- https://www.ainvest.com/news/gannett-navigates-challenges-debt-reduction-digital-momentum-q1-2025-2505/ – Gannett Co., Inc. reported a net loss of $7.3 million for the first quarter of 2025, a significant improvement from the prior-year loss of $84.7 million. Total revenue fell 10.1% year-over-year to $571.6 million, driven by the sale of the Austin-American Statesman and the disposal of non-core assets. Excluding these factors, same-store revenue declined 7.7%, reflecting ongoing challenges in traditional advertising and print operations. However, the company made strides in profitability metrics, with Adjusted EBITDA rising to $50.5 million and free cash flow improving by 7.6% to $10.2 million. Debt reduction remains a priority, with $74.5 million repaid in Q1, lowering total principal debt to $1.037 billion and reducing first-lien leverage to 2.6x, a 4.8% sequential improvement. Gannett’s digital strategy showed encouraging trends, with audience reach growing to 195 million monthly unique visitors, a 4.7% increase year-over-year. The company reaffirmed its 2025 outlook, forecasting 7-10% same-store growth in digital revenue, with digital representing 50% of total revenue by year-end.
- https://www.poynter.org/business-work/2024/gannetts-2024-priorities-include-rebooting-small-newsrooms-and-keeping-voters-informed/ – Gannett’s 2024 priorities include ‘rebooting’ small newsrooms and keeping voters informed. The company focused on audience preferences, especially around college football and high school sports, to grow pageviews and engagement. Gannett also experimented with newsletters in its smaller newsrooms, a strategy it plans to continue. The company had 187 million average monthly unique visitors last quarter, up 4.3% year-over-year. Gannett also plans to convert more of its smaller newsrooms across the country to take advantage of the engagement rate, reader satisfaction, and retention that the newsletters offer.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is current, with the latest information from July 2025. The $100 million cost-cutting programme was announced in the second quarter of 2025, aligning with recent reports. The focus on digital transformation and subscription strategy updates are consistent with Gannett’s recent initiatives. No evidence of recycled content or significant discrepancies with earlier reports. The narrative appears fresh and original.
Quotes check
Score:
8
Notes:
Direct quotes from CEO Mike Reed and CFO Trisha Gosser are consistent with statements made in Gannett’s Q1 2025 earnings call. No significant variations in wording were found, suggesting the quotes are accurately reported. However, the absence of earlier instances of these exact quotes online may indicate potential exclusivity or original reporting.
Source reliability
Score:
9
Notes:
The narrative originates from Poynter, a reputable organisation known for its journalism and media analysis. This enhances the credibility of the information presented.
Plausability check
Score:
9
Notes:
The claims regarding Gannett’s financial performance, cost-cutting measures, and digital transformation efforts are consistent with recent reports and earnings call transcripts. The focus on AI and automation aligns with industry trends. The subscription strategy changes and the appointment of Wendy Naugle as executive editor of entertainment are plausible and supported by available information. No inconsistencies or implausible elements were identified.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is current, with no evidence of recycled content or significant discrepancies. Direct quotes are consistent with recent earnings calls, and the source is reputable. Claims about Gannett’s financial performance and strategic initiatives are plausible and supported by available information. No major risks to credibility were identified.
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