Adjusted EBITDA was $44.4 million, up 26% year-over-year, primarily due to higher gross profit partially offset by increased SG&A expenses.
Adjusted gross margin improved to 46.9% from 45.9% in the prior year period, driven by lower input costs, higher yields, and reduced quality costs.
Adjusted SG&A was 30.1% of net sales, down from 31.0% the prior year, with media spend increasing to 15% of net sales from 12.2%.
Capital spending for Q2 was $33.4 million, with operating cash flow of $33.9 million and cash on hand of $243.7 million at quarter end.
Household penetration grew 11% year-over-year to 14.4 million households, with MVPs (most valuable pet parents) growing 18% to 2.2 million households, representing 70% of sales.
Logistics costs remained stable at 5.7% of net sales compared to 5.8% last year.
Second quarter net sales were $264.7 million, up 12.5% year-over-year, driven primarily by volume growth.
EPS grew 24.1% to $5.45 per diluted share, driven by higher gross margins and lower share count, partially offset by lower volumes and increased brand investments.
First half 2025 revenue grew 3.6%, gross margin was 49.1%, and EPS was $7.58, with shipments ahead of depletions.
Gross margin expanded by 380 basis points to 49.8%, benefiting from brewery efficiencies, procurement savings, price increases, and product mix, partially offset by inflation and tariffs.
In Q2 2025, depletions decreased 5% and shipments decreased 0.8% year-over-year, driven by declines in Truly Hard Seltzer and Sam Adams partially offset by growth in Sun Cruiser and Dogfish Head.
Operating cash flow exceeded $125 million in the first half, enabling $111 million in cash returns to shareholders year-to-date.
Revenue increased 1.5% due to pricing and favorable product mix despite lower volumes.
Adjusted diluted EPS increased by $0.13 to $0.58, driven by higher operating profit and interest income.
Adjusted operating profit margin expanded by approximately 280 basis points.
Affiliate, licensing, and other revenues increased approximately 6% to $70 million.
Digital advertising revenues grew nearly 19% to $94 million, exceeding guidance, while total advertising revenues increased more than 12% to $134 million.
Digital-only subscription revenues grew approximately 15% to $350 million, driven by 230,000 net new digital subscribers, bringing the total to approximately 11.9 million.
Free cash flow generation was strong at approximately $193 million in the first half of 2025, with $134 million returned to shareholders through buybacks and dividends.
NYT reported strong Q2 2025 financial results with nearly 10% revenue growth year-over-year and approximately 28% growth in adjusted operating profit (AOP).
Total subscription revenues increased about 10% to $481 million, in line with guidance.
Dafinchi
