- The Philadelphia Inquirer reports its first year-over-year revenue growth in over 20 years, reaching profitability.
- Shift from advertising reliance to subscription revenue has been key to its revival.
- Unique ownership structure under the Lenfest Institute prioritises civic impact and community engagement.
Elizabeth Hughes, the publisher and CEO of The Philadelphia Inquirer, this week shared a rare piece of good news in the beleaguered world of American local journalism: for the first time in more than two decades, the 197-year-old newspaper has achieved year-over-year revenue growth and returned to operating profitability.
Writing against the backdrop of the recent closure of the Pittsburgh Post-Gazette, Hughes detailed how the Inquirer transformed from a declining legacy daily into a sustainable, “reader-first” digital powerhouse. In 2025, the Inquirer posted an operating profit of several million dollars.
The engine behind this recovery is a dramatic shift in how the paper makes its money. While legacy newspapers historically relied on advertising for upwards of 80% of their revenue, the Inquirer has flipped the script. Today 70% of its revenue comes directly from readers through digital and print subscriptions. Local advertising now accounts for just 19%, while syndication and partnerships contribute 5%.
Crucially, Hughes highlighted the role of the paper’s unique ownership structure. In 2016, the late philanthropist Gerry Lenfest donated the Inquirer to the nonprofit Lenfest Institute for Journalism. While the paper still operates as a for-profit public benefit corporation, the nonprofit umbrella allows it to prioritise civic impact over shareholder dividends. Philanthropic support now makes up roughly 6% of its total revenue, a small but vital “R&D” fund that allows the newsroom to invest in high-impact investigative reporting and community engagement.
The path to profitability wasn’t without pain. Over the past decade, the paper underwent significant newsroom buyouts and a gruelling digital transformation. However, Hughes argues that the Inquirer’s success proves that local journalism is not a “charity case” but a viable business if it can prove its value to the community.
“When we ask people to pay for the news, we are asking them to invest in their city,” Hughes wrote. By focusing on essential local coverage, from City Hall accountability to the Philadelphia Eagles, the Inquirer has convinced 250,000 subscribers that local reporting is a service worth the price of admission.
- https://www.lenfestinstitute.org/about/ – This page details the Lenfest Institute’s mission and history, including the 2016 donation of The Philadelphia Inquirer by H.F. ‘Gerry’ Lenfest, which aligns with the article’s mention of the paper’s unique ownership structure.
- https://www.lenfestinstitute.org/institute-news/lenfest-institute-bequest-estate-hf-gerry-lenfest/ – This announcement about the Lenfest Institute receiving a $50 million bequest from H.F. ‘Gerry’ Lenfest’s estate supports the article’s claim regarding philanthropic support contributing to the Inquirer’s revenue.
- https://www.lenfestinstitute.org/donors/ – The list of donors to the Lenfest Institute corroborates the article’s statement that philanthropic support now makes up roughly 6% of the Inquirer’s total revenue.
- https://www.lenfestinstitute.org/solutions-resources/giving-thanks-for-local-journalism/ – This article discusses the Inquirer’s transformation into a public benefit corporation under the Lenfest Institute, aligning with the article’s mention of the paper’s unique ownership structure.
- https://www.philanthropy.com/article/gerry-lenfest-left-bequests-totaling-100-million-to-2-philadelphia-institutions – This article reports on H.F. ‘Gerry’ Lenfest’s substantial bequests to the Lenfest Institute and the Museum of the American Revolution, supporting the article’s claim about the Inquirer’s philanthropic backing.
- https://www.lenfestinstitute.org/wp-content/uploads/2023/11/TLIFJ_12.31.22.-Financial-Statements.pdf – The Lenfest Institute’s financial statements provide insight into its funding and operations, supporting the article’s mention of the Inquirer’s revenue sources and philanthropic support.
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