Gannett Co., Inc. (GCI): Business Model Canvas [Dec-2025 Updated]

You're looking at a classic media giant navigating a brutal turnaround, and honestly, it's a fascinating case study in financial engineering. As someone who's spent two decades in the trenches, I see a company using aggressive debt reduction-targeting over $135 million paid off in 2025-as the safety net for a high-stakes digital pivot. They are balancing a $100 million cost-cutting program against a goal of nearly 50% digital revenue, all while signing new, high-margin deals to license their premium content to AI firms. If you want to see exactly how they structure their operations, revenue streams, and key resources to pull this off, dive into the full Business Model Canvas below.

Gannett Co., Inc. (GCI) - Canvas Business Model: Key Partnerships

You're looking at how Gannett Co., Inc. (GCI), now rebranding to USA TODAY Co. as of November 4, 2025, structures its external relationships to drive value in the evolving media landscape. These partnerships are critical for diversifying revenue away from traditional advertising and securing content value in the age of generative AI.

AI Content Licensing Deals

Gannett Co., Inc. has made significant moves to monetize its content library through licensing agreements with major technology players. This is a direct response to the increasing demand for high-quality training data by large language models.

• Gannett Co., Inc. completed an AI licensing agreement with Microsoft in Q3 2025, focusing on content for the Publisher Content Marketplace.
• The Microsoft partnership is expected to fuel strong digital revenue growth in the fourth quarter of 2025 and contribute to significant Adjusted EBITDA and free cash flow growth.
• The company also announced a multi-year AI licensing partnership with Meta on December 5, 2025.
• A deal with Perplexity, announced earlier in 2025, generated licensing fees and ad revenue in the second quarter of 2025.
• Content from USA TODAY and over 200 local newsbrands appears in Perplexity AI search answers and its Comet web browser for subscribers.
• On September 15, 2025, USA TODAY deployed Taboola's DeeperDive AI Answer Engine for all audiences.

A key financial milestone tied to these strategic digital efforts was achieved in the third quarter of 2025, when total debt for Gannett Co., Inc. fell below $1.0 billion.

Content Distribution Agreements

To maximize the reach of commercial content, Gannett Co., Inc. formalized distribution agreements that leverage its massive network scale. This helps drive visibility for clients and adds to the company's revenue base.

The June 2025 agreement with XPR Media, a content and distribution platform, is designed to amplify press release visibility across the USA TODAY Network, which includes more than 200 publications nationwide. XPR Media itself delivers over 150,000 stories monthly across its network of more than 1,000 websites. Press releases distributed via this channel are featured on the USA TODAY website and within a dedicated press release section for enhanced discoverability.

Strategic Media Partnerships

The partnership with the Big Ten Conference is a prime example of leveraging high-interest, localized content across a broad media footprint. This multi-year agreement positions Gannett Co., Inc. as the official content partner.

• Syndicated content from the USA TODAY Network's local network of over 200 publications is featured on BigTen.org.
• This includes coverage from local outlets like The Columbus Dispatch, The Des Moines Register, Detroit Free Press, and The Indianapolis Star.
• USA TODAY Sports Media Group continues to produce souvenir covers to commemorate winners of the football and basketball Championship Games.

The financial scale of the Big Ten Conference itself, which distributed approximately $63.2 million to each of its 12 longest-tenured schools in the 2023-24 league year, underscores the value of the content ecosystem Gannett Co., Inc. is embedded within.

Ad-tech Partners for Programmatic Advertising

Programmatic advertising remains a core component of the digital revenue strategy, supported by various ad-tech partners focused on yield optimization. The results from the middle of 2025 show positive momentum in this area.

Digital advertising revenues showed a rebound, growing 4% year-over-year in the second quarter of 2025, directly attributed to higher page views and programmatic sales. For Q2 2025, digital advertising revenues hit $87.9 million, and for Q3 2025, they were reported at $87.2 million. The Digital Marketing Solutions segment's core platform revenue reached $116.9 million in Q2 2025.

Here's a quick look at the scale of the digital operations supporting these partnerships as of mid-to-late 2025:

The Digital Marketing Solutions segment achieved a record core platform Average Revenue Per User (ARPU) of $2,830 in Q2 2025, driven by search optimization and new AI voice agent launches.

Gannett Co., Inc. (GCI) - Canvas Business Model: Key Activities

You're looking at the core actions Gannett Co., Inc. (GCI) is taking to reshape its business, moving from print reliance to a digital-first, efficiency-focused model, based on their late 2025 performance data.

Producing local and national journalism across the USA TODAY Network remains central, but the focus is clearly on digital scale and monetization. As of the third quarter ending September 30, 2025, the network reached 187 million average monthly unique visitors. Digital revenues accounted for 46.9% of the total revenue base in Q3 2025, hitting $262.7 million. This content engine is also being actively protected, with Gannett Co., Inc. implementing measures to block unauthorized AI content scraping and actively pursuing licensing deals.

The company has been aggressively executing the $100 million annualized cost reduction program. This initiative was officially completed in the third quarter of 2025. The program targeted approximately $100 million in annualized expense reductions to create a lower, more variable cost structure. This discipline is showing up in the numbers; for instance, operating costs and SG&A expenses decreased approximately 8% in Q3 2025 compared to the prior year.

Operating the LocaliQ Digital Marketing Solutions (DMS) platform for SMBs is a key revenue diversification activity. In the third quarter of 2025, the core platform revenues for this segment were $114.0 million. The platform ended that quarter with approximately 13,400 core platform customers, and the Average Revenue Per User (ARPU) remained near record highs at approximately $2,800, reflecting 2% growth. To give you a sense of the scale and performance, here are some recent financial snapshots:

Aggressive debt reduction is a major operational focus, with the company hitting a significant milestone. As of September 30, 2025, total principal debt outstanding was $996.4 million, officially falling below the $1.0 billion mark. The company is on track to meet its goal, having repaid over $135 million in debt for the full year 2025. Specifically, they repaid $18.5 million in Q3 2025 alone, following $23.4 million in Q2 2025. This effort brought the First lien net leverage down to 2.69x by the end of Q3 2025.

Finally, Gannett Co., Inc. is actively developing and monetizing new content streams via AI licensing and affiliate commerce. This activity is materializing through strategic partnerships. They announced a new AI licensing agreement with Microsoft for its Publisher Content Marketplace, building on a prior deal with Perplexity. Furthermore, they were the first U.S. publisher to launch the beta of Taboola's generative AI answer engine, DeeperDive, on the USA TODAY platform. The digital advertising segment showed a positive trend, with Q2 2025 digital advertising revenues increasing 4% year-over-year.

Finance: draft 13-week cash view by Friday.

Gannett Co., Inc. (GCI) - Canvas Business Model: Key Resources

You're looking at the core assets Gannett Co., Inc. (GCI) relies on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving the business.

The extensive USA TODAY Network of over 200 local and national publications remains a foundational asset. This network includes the national publication, USA TODAY, and local media organizations across the United States. The structure encompasses a presence in approximately 220 local U.S. markets across 43 states, in addition to its UK subsidiary, Newsquest. Furthermore, the company is known for its brands like USA TODAY and over 250 daily newspapers.

The scale of the audience reached through these properties is a critical resource. As of the third quarter of 2025, Gannett Co., Inc. reported a massive digital audience metric.

The key digital audience figure for Q3 2025 is:

• Average monthly unique visitors: 187 million.

The company's digital revenue streams are intrinsically linked to this reach. For context on the digital performance supporting these resources in Q3 2025, here are the related revenue figures:

The proprietary LocaliQ digital marketing technology platform represents a significant, non-media resource. LocaliQ is an end-to-end, AI-powered marketing platform designed to help local businesses attract, convert, and retain customers. Its proprietary AI technology leverages data to optimize cross-channel marketing. This platform is a key part of the Digital Marketing Solutions segment.

Here's a look at the scale of the LocaliQ core platform as of Q3 2025:

• Core Platform Customers: Approximately 13,400.
• Core Platform ARPU (Average Revenue Per User): Approximately $2,800, reflecting 2% year-over-year growth.
• Digital Marketing Solutions Segment Core Platform Revenue: $114.0 million.

The platform includes tools like Dash by LocaliQ, an AI-powered lead management SaaS solution.

Finally, the management of the balance sheet has yielded a crucial financial resource: reduced leverage. Gannett Co., Inc. achieved a significant milestone by reducing its debt load.

The key financial metric here is:

• Total principal debt outstanding as of September 30, 2025: $996.4 million.

This figure marks the total debt falling below the $1.0 billion threshold. Finance: draft 13-week cash view by Friday.

Gannett Co., Inc. (GCI) - Canvas Business Model: Value Propositions

You're looking at the core value Gannett Co., Inc. (GCI) is delivering to its various customer groups as of late 2025. This is about what they promise to give in exchange for revenue, based on their Q3 2025 performance and outlook.

High-quality, trusted local and national news and information.

• Gannett Co., Inc. provides access to its content across brands including USA TODAY and over 250 daily newspapers.
• The scaled digital reach is evidenced by 187 million average monthly unique visitors in the third quarter of 2025.
• Digital-only subscription revenues for Q3 2025 were $43.7 million.

Digital marketing services for SMBs to manage online presence and advertising.

The Digital Marketing Solutions (DMS) segment is a key value driver for small and medium-sized businesses (SMBs). Here's a look at the Q3 2025 numbers that define this proposition:

The company is focused on maintaining high ARPU in this area, with the Q3 2025 core platform ARPU reflecting growth of 2% year-over-year. If onboarding takes 14+ days, churn risk rises, but the current customer base seems sticky.

Content monetization via AI licensing, providing fair value for premium journalism.

Gannett Co., Inc. is actively transforming its content library into a direct revenue stream by licensing it for use in Artificial Intelligence (AI) models. This is a defintely new and important value proposition.

• A new AI licensing agreement was announced in Q3 2025, partnering with Microsoft for its Publisher Content Marketplace.
• The company previously announced a deal with AI-powered search engine Perplexity to license its content.
• Management expects these new AI licensing deals to drive strong digital revenue growth in the fourth quarter of 2025.

Access to a scaled, engaged audience across multiple digital and print channels.

The value proposition here is the sheer scale and the increasing digital concentration of that scale. Digital revenues are nearing the 50% mark of the total top line.

Here is the breakdown of the $262.7 million in total digital revenues for Q3 2025, which represented 46.9% of total revenues:

The digital subscription value is supported by a Digital-only ARPU of $8.80 in Q3 2025, an increase of approximately 8% year-over-year. The company maintained 1.6 million digital-only paid subscriptions as of Q3 2025.

Finance: draft 13-week cash view by Friday.

Gannett Co., Inc. (GCI) - Canvas Business Model: Customer Relationships

You're looking at how Gannett Co., Inc. (GCI) manages its diverse customer base, from individual readers to large marketing clients, as of late 2025. It's a mix of high-tech automation and dedicated human touchpoints.

For your LocaliQ customers, the self-service experience is heavily automated, defintely leaning into AI. The Dash™ by LocaliQ platform, recognized with the 2025 BIG Innovation Award, is central here. This platform leverages insights from over 5.2 million campaigns to optimize lead generation. Specifically, the AI Voice Agent and SMS agent are designed to turn every call into a qualified lead, aiming for up to a 40% boost in SMS leads and a 25% boost in call leads. The platform itself holds a trScore of 8.9 out of 10 from TrustRadius, based on over 76 verified reviews, showing that the automated tools are resonating with the users.

When it comes to the content side, paywall and subscription management is a key relationship driver. As of the third quarter of 2025, Gannett Co., Inc. (GCI) was managing relationships with approximately 1.6 million digital-only paid subscribers. This focus on quality over volume is reflected in the digital-only Average Revenue Per User (ARPU), which hit a record high of $8.80 in Q3 2025. This resulted in digital-only subscription revenues totaling $43.7 million for that quarter.

Here's a quick look at how the key digital customer segments performed in Q3 2025:

For your larger advertisers, especially those utilizing the Digital Marketing Solutions (DMS) segment, the relationship shifts to dedicated support. This segment generated core platform revenues of $114.0 million in Q3 2025. Also, the broader digital advertising revenue stream, which captures large national advertiser spend, was $87.2 million in the same period. This level of spend typically requires dedicated sales and account management to ensure campaign success and retention, which is a different service model than the self-service tools offered to smaller LocaliQ users.

Community engagement relies on the local media organizations and the USA Today Network Ventures events division. While specific print delivery numbers aren't readily available in the latest filings, the structure remains in place to connect with local audiences. The company maintains its network of local media properties across the United States alongside its UK-based Newsquest subsidiary, supporting local relationships through content and events.

Finance: draft 13-week cash view by Friday.

Gannett Co., Inc. (GCI) - Canvas Business Model: Channels

You're looking at how Gannett Co., Inc. (GCI) gets its content and services to customers as of late 2025. It's a mix of old-school physical delivery and aggressive digital monetization, especially through AI deals.

Print distribution network for daily and weekly newspapers

The print channel still exists, though it's shrinking as digital takes over. The physical reach is measured by the readership numbers from the end of 2024, which is the latest comprehensive data we have before the full impact of the 2025 digital pivot is reflected in print metrics.

The print distribution network supports over 220 local U.S. markets.

The company is actively shifting resources away from this channel, as evidenced by the strategic move to eliminate Saturday print editions in 136 markets, focusing on digital-only Saturday editions.

USA TODAY Network websites and mobile applications

This is the core of Gannett Co., Inc.'s audience reach now. The digital platforms are where the majority of engagement and subscription revenue is generated. By the third quarter of 2025, digital revenues accounted for 46.9% of total company revenue, hitting $262.7 million for the quarter.

The audience scale is substantial, but the focus is clearly on converting visitors to paying users.

• Average Monthly Unique Visitors (Q3 2025): 187 million
• Average Monthly Unique Visitors (Q2 2025): 181 million
• Digital-Only Paid Subscriptions (Q3 2025): Reached 1.93 million in Q1 2025, with digital-only subscription revenues at $43.7 million in Q3 2025.

Here's a breakdown of the digital engagement metrics compared to the prior year's benchmark:

The goal is to have digital revenues cross the 50% threshold of total revenue during 2025, with projections for 2026 aiming for 50%+.

Direct sales force for Digital Marketing Solutions (LocaliQ)

The LocaliQ brand is the direct sales channel for small and medium-sized businesses needing digital marketing services. This segment is a key component of the digital revenue diversification strategy.

In Q3 2025, the Digital Marketing Solutions segment generated core platform revenues of $114.0 million.

To give you a clearer picture of the sales force's effectiveness, look at the Q1 2025 metrics:

The high retention rate suggests the direct sales force is successfully maintaining its customer base, which is defintely important when overall customer count might fluctuate.

Third-party platforms for content syndication and AI licensing

Gannett Co., Inc. is actively channeling its content assets through third-party platforms, particularly for AI monetization. This is a newer, high-potential channel to generate revenue outside of traditional advertising and subscriptions.

In the third quarter of 2025, the company announced a strategic deal with Perplexity, integrating content from USA TODAY and the USA TODAY Network of over 200 local publications into Perplexity's AI-powered search experiences.

Also announced in Q3 2025 was a partnership with Microsoft to license content for AI training via the Publisher Content Marketplace. This is expected to contribute to 'strong digital revenue growth' in the fourth quarter of 2025.

• Partnerships established with Perplexity and Microsoft as of Q3 2025.
• The Perplexity deal includes sharing advertising revenue and leveraging data.
• The Microsoft partnership positions content as a revenue-generating asset for AI model training.

The financial terms for these AI licensing deals have not been disclosed, but the strategic intent is to create a recurring revenue stream tied to AI ecosystem usage.

Gannett Co., Inc. (GCI) - Canvas Business Model: Customer Segments

You're looking at the specific groups Gannett Co., Inc. (GCI) serves to generate revenue as of late 2025, based on their latest reported figures.

Local and national news consumers who pay for digital-only subscriptions.

This segment is crucial as they provide recurring, high-margin revenue, which is a key focus for Gannett Co., Inc. (GCI) as they continue their digital transformation. You can see the revenue from this group is growing on a per-user basis, even if the total subscriber count isn't hitting old aggressive targets.

• Digital-only subscription revenues for the third quarter ended September 30, 2025, totaled $43.7 million.
• Digital-only subscription revenues for the second quarter of 2025 were $42.7 million.
• Digital-only Average Revenue Per User (ARPU) for Q3 2025 increased 8% year-over-year, reaching $8.80.
• This compares to a Q2 2025 digital-only ARPU of $7.79.
• As of an earlier report, the company maintained 1.6 million digital-only paid subscriptions.

Small and Medium-sized Businesses (SMBs) needing digital marketing.

This group is served through the Digital Marketing Solutions (DMS) segment, which includes the LocaliQ brand. Stability here is a foundation for the company's overall financial health.

The core platform ARPU growth of 2% year-over-year in Q3 2025 shows they are getting more value from their existing SMB base. The customer budget retention across this period has consistently been above 95%.

Large national and programmatic advertisers seeking scaled audience reach.

These advertisers buy digital ad space across Gannett Co., Inc. (GCI)'s network, including USA TODAY. The shift to digital means this revenue stream is now a major component of the total.

• Total digital revenues for Q3 2025 were $262.7 million, making up 46.9% of total company revenue.
• Digital advertising revenues for Q3 2025 were $87.2 million.
• This represents a year-over-year growth of 2.9% for digital advertising in Q3 2025.
• Average monthly unique visitors for Q3 2025 totaled 187 million.
• For comparison, Q1 2025 saw 195 million average monthly unique visitors.

Technology companies licensing content for Artificial Intelligence (AI) training and products.

This is a newer, high-potential segment, turning proprietary content into a distinct revenue stream outside of traditional advertising and subscriptions. You'll want to watch this closely for Q4 2025 results.

• Gannett Co., Inc. (GCI) announced a deal with AI-powered search engine Perplexity, which includes both licensing fees and an advertising revenue share.
• In Q3 2025, the company also announced a partnership with Microsoft for its Publisher Content Marketplace.
• The impact of the new AI licensing deals is expected to drive strong digital revenue growth in the fourth quarter of 2025.

Gannett Co., Inc. (GCI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Gannett Co., Inc.'s operational expenses as of late 2025. The cost structure is clearly under intense pressure, forcing significant structural changes to manage legacy print obligations while funding a digital pivot.

Labor costs are being actively managed through a major expense alignment effort. Gannett Co., Inc. is implementing targeted annualized expense reductions of approximately $100 million. This program, which was fully implemented by the third quarter of 2025, includes companywide buyouts and is designed to create a lower and more variable cost structure. The cuts involve closing two of the company's largest print facilities and expanding automation and outsourcing in back-office processes.

The legacy business still carries high fixed costs associated with physical production and distribution. While print revenue is declining, these costs remain a significant drag. For context on the revenue mix Gannett is trying to support with these costs, look at the Q2 2025 figures:

By the third quarter of 2025, digital revenues accounted for 46.9% of total revenues at $262.7 million.

Financing costs are a persistent drain, tied directly to the balance sheet leverage. As of September 30, 2025, the total principal debt outstanding was $996.4 million. This figure represents a significant milestone, as Gannett Co., Inc. achieved total debt falling below $1.0 billion during that quarter. The financial health indicators reflect this burden; the interest coverage ratio stood at a tight 0.47.

Technology and platform development costs are being incurred as Gannett Co., Inc. pushes its digital transformation, particularly around Artificial Intelligence integration. While a specific development budget isn't itemized in the latest reports, the strategic shift implies substantial investment in digital infrastructure and new revenue-enabling technology. The company is actively pursuing AI monetization through licensing deals with Perplexity and a new partnership with Microsoft for its Publisher Content Marketplace. Unplanned expenses tied to the $100 million cost reduction program in Q3 2025 were approximately $7.0 million.

The cost structure is characterized by these key components:

• Annualized expense reductions targeted at $100 million.
• Fixed costs related to print operations, evidenced by Q2 print revenue of $319 million.
• Debt servicing costs reflected by an interest coverage ratio of 0.47.
• Total principal debt of $996.4 million as of September 30, 2025.
• Investment in digital platforms and AI integration, including new licensing agreements.

Finance: draft 13-week cash view by Friday.

Gannett Co., Inc. (GCI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Gannett Co., Inc. (GCI) brings in cash as of late 2025. It's a mix of legacy strength and aggressive digital pivots, so let's look at the hard numbers from the third quarter of 2025.

The Digital Marketing Solutions (DMS) core platform remains a significant pillar, bringing in $114.0 million in revenue for Q3 2025. This segment serves a base of approximately 13,400 core platform customers. To give you a sense of the pricing power there, the core platform ARPU (Average Revenue Per User) stayed near record highs at approximately $2,800, reflecting a 2% growth year-over-year.

Still, the largest component of total revenue is print advertising and circulation, even as the company pushes digital. Total revenues for Q3 2025 were $560.8 million, but digital revenues are closing the gap fast, hitting $262.7 million, which accounted for 46.9% of that total. This shows the scale of the print business, which makes up the remaining portion of that $560.8 million top line.

Digital advertising revenue showed positive momentum, increasing 2.9% year-over-year in the third quarter. Digital-only subscription revenue also posted sequential growth, landing at $43.7 million for the quarter. Honestly, the company expects Q4 2025 to be even stronger, partly due to revenue timing shifts from Q3.

A key new development is the introduction of high-margin AI content licensing revenue. Gannett Co., Inc. announced a new agreement with Microsoft for its Publisher Content Marketplace during Q3 2025, signaling a new, potentially high-margin stream. While the Q3 results were impacted by this licensing revenue launching late in the quarter, management expects a more significant impact in the fourth quarter of 2025.

Here's the quick math on the digital revenue breakdown for Q3 2025:

What this estimate hides is that the print portion, while the largest single category, is facing year-over-year declines, which is why the digital streams are so critical for future stability. The company is targeting digital revenues to make up over 50% of total revenues during 2026.

You should also track these related metrics that feed into the revenue picture:

• Digital-only ARPU (Average Revenue Per User) hit a new high of $8.80 in Q3 2025, up approximately 8% year-over-year.
• Digital-only paid subscription volumes were maintained at 1.6 million.
• The company is blocking over 99% of AI-verified bots, other than Google, attempting to scrape content without agreements.
• Management projects cash provided by operating activities to grow in excess of 30% versus the prior year for the full year 2025.

Finance: draft 13-week cash view by Friday.