DallasNews Corporation Reports $28.3 Million Net Income in Q1 2025, Significant Cost Reductions Achieved

DallasNews Corporation reported a significant turnaround in its financial performance for the first quarter of 2025, posting a net income of $28.3 million, compared to a net loss of $1.4 million in the same period last year. The company's total net operating revenue decreased by 6.4% to $29.1 million, down from $31.1 million in the first quarter of 2024. The decline in revenue was primarily attributed to decreases in advertising and marketing services, circulation, and printing, distribution, and other revenues, which fell by 7.2%, 5.2%, and 9.2%, respectively.

The company experienced a notable reduction in operating costs, which totaled $5.1 million for the quarter, a significant decrease from $32.9 million in the prior year. This reduction was largely due to a $36.2 million gain from the sale of its Plano printing facility, which was completed in March 2025. Employee compensation and benefits also decreased by 7.9% to $14.8 million, reflecting a headcount reduction of 13.2% to 461 employees as the company transitioned to a more efficient printing facility. The decrease in employee numbers was part of a strategic move to streamline operations and reduce costs.

In terms of operational developments, DallasNews has been focusing on enhancing its digital offerings and agency services through its subsidiary, Medium Giant. The company reported a slight decline in digital advertising revenue, which was offset by an increase in digital subscriptions. The company’s digital-only subscriptions increased by 1.1% compared to the previous quarter, indicating a positive trend in digital engagement. However, print circulation revenue continued to decline, driven by a drop in print subscriptions.

Looking ahead, DallasNews Corporation is optimistic about its future performance, particularly following the transition to a smaller, more efficient printing facility expected to be operational by May 2025. The company anticipates annual expense savings of approximately $5 million from this transition. Additionally, the proceeds from the sale of the Plano facility have been allocated to fully fund the company’s pension liabilities and to invest in its business, which may further enhance its financial stability and growth potential. The company remains focused on diversifying its revenue streams and adapting to the changing media landscape.