Shares dropped 6.5% as investors reacted negatively to signs of decelerating core web traffic and persistent challenges in sessions-based revenues, despite growth in off-platform audiences and nonsessions-based revenue streams.

• Core web sessions remained under pressure with continued declines in Google search traffic and open web traffic.
• Off-platform audiences (Apple News, TikTok, Instagram, YouTube) grew 27% year-over-year, driving digital revenue growth.
• Nonsessions-based revenue expanded 24% year-over-year and now represents 41% of digital revenue, up from 35% last year.
• Sessions-based revenue held steady but remains a challenged segment within digital revenue streams.
• Digital adjusted EBITDA margins improved to 20%, up from 18% a year ago, supported by diversified revenue and audience mix.