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Income taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income taxes | NOTE 12 — Income taxes The following table outlines the Company's Loss before income taxes:
| Year ended December 31,
In thousands | 2025 |  | 2024 |  | 2023
Domestic | $(58,661) |  | $(128,806) |  | $(55,073)
Foreign | 57,386 |  | 51,133 |  | 48,908
Loss before income taxes | $(1,275) |  | $(77,673) |  | $(6,165)
The following table outlines the Company's (Benefit) provision for income taxes:
| Year ended December 31,
In thousands | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $(13) |  | $(15,979) |  | $(311)
State and local | 1,257 |  | 1,780 |  | 1,705
Foreign | 6,002 |  | 7,671 |  | 8,821
Total current | 7,246 |  | (6,528) |  | 10,215
Deferred: |  |  |  |  |
Federal | (12,735) |  | (38,805) |  | 6,436
State and local | (3,180) |  | (2,493) |  | 399
Foreign | 5,639 |  | (3,460) |  | 4,679
Total deferred | (10,276) |  | (44,758) |  | 11,514
(Benefit) provision for income taxes | $(3,030) |  | $(51,286) |  | $21,729
The effective tax rate varies from the federal statutory tax rate as a result of the following differences:
In thousands, except percentages | Year ended December 31, 2025
U.S. federal statutory rate | $(268) | 21.0%
U.S. |  |
State and local income taxes, net of federal income tax effect(a) | (2,187) | 171.5%
Effect of cross-border tax laws |  |
Global intangible low-taxed income | 8,735 | (685.1)%
Other | 95 | (7.5)%
Tax credits |  |
Research and development tax credits | (7,216) | 566.0%
Changes in valuation allowances | (6,454) | 506.2%
Nontaxable or nondeductible items |  |
Nondeductible compensation | 1,360 | (106.7)%
Other | 1,169 | (91.7)%
Other adjustments |  |
Other | 2,160 | (169.4)%
Foreign tax effects |  |
U.K. |  |
Statutory tax rate difference between the U.S. and U.K. | 2,159 | (169.3)%
Foreign exchange and tax rate changes | (1,606) | 126.0%
Changes in valuation allowances | (2,497) | 195.8%
Other | 576 | (45.2)%
Other foreign jurisdictions | (429) | 33.6%
Changes in unrecognized tax benefits | 1,373 | (107.7)%
Benefit for income taxes | $(3,030) | 237.6%
(a) For the year ended December 31, 2025, s
| Year ended December 31,
In percentage | 2024 |  | 2023
Federal statutory tax rate | 21.0% |  | 21.0%
(Increase) decrease in taxes resulting from: |  |  |
State and local income taxes, net of federal benefit | (0.5) |  | 3.6
Debt refinancing | 37.8 |  | —
Change in valuation allowance | (0.2) |  | (130.0)
Foreign tax rates differences | (1.0) |  | (9.2)
Non-deductible parking | (0.1) |  | (2.5)
Non-deductible meals, entertainment | (1.0) |  | (12.8)
(Loss) gain on foreign exchange rate | (0.6) |  | 2.4
Stock compensation shortfall | (1.2) |  | (24.2)
Partnership permanent differences | (0.1) |  | (2.0)
Tegna indemnification release | — |  | (2.8)
Foreign entities loss adjustments | (1.4) |  | (1.3)
Newsquest permanent differences | (0.7) |  | (7.6)
Nondeductible compensation | (1.0) |  | (13.4)
Provision to return and deferred tax adjustments | 5.2 |  | (45.1)
Global intangible low-taxed income | (10.0) |  | (112.7)
Branch income | 1.2 |  | 5.4
Profit on non-qualifying land and buildings | 0.2 |  | 0.2
Uncertain tax positions | 19.0 |  | (134.5)
Deduction for interest expense | — |  | 102.7
Impact of non-deductible goodwill | (0.5) |  | —
Other expenses | (0.1) |  | 10.3
Effective tax rate | 66.0% |  | NM
NM indicates not meaningful. Our effective tax rate for the year ended December 31, 2025 was 237.6%. The tax benefit for 2025 was primarily impacted by the generation of research and development tax credits, the release of valuation allowances on capital loss carryforwards, and the pre-tax book loss, partially offset by the increase in valuation allowances on non-deductible U.S. interest expense carryforwards and the global intangible low-taxed income inclusion. Our effective tax rate for the year ended December 31, 2024 was 66.0%. The tax benefit for 2024 was primarily impacted by the release of uncertain tax position reserves related to an IRS audit, the release of foreign valuation allowances, debt refinancing transactions and the pre-tax book loss, partially offset by the increase in valuation allowances on non-deductible U.S. interest expense carryforwards and the global intangible low-taxed income inclusion. Our effective tax rate for the year ended December 31, 2023 was not meaningful. The tax provision for 2023 was primarily impacted by the valuation allowances on non-deductible U.S. interest expense carryforwards, the global intangible low-taxed income inclusion, the release of uncertain tax positions in the U.S., and the reduction in the blended state tax rate, which were offset by the tax benefit of the pre-tax book loss. The tax effects of each type of temporary differences and carryforwards that give rise to significant portions of our deferred tax assets and deferred tax liabilities are presented below:
| December 31,
In thousands | 2025 |  | 2024
Deferred tax assets: |  |  |
Fixed assets | $5,961 |  | $4,474
Accrued compensation costs | 9,420 |  | 13,167
Accrued liabilities | 16,041 |  | 17,787
Disallowed interest | 124,816 |  | 121,110
Goodwill | — |  | 162
Capitalized research and development costs | 17,607 |  | 11,572
Partnership investments | — |  | 4,961
Loss carryforwards | 196,585 |  | 203,602
Lease liabilities | 43,248 |  | 50,826
Definite and indefinite lived intangible assets | 7,773 |  | —
Other | 25,414 |  | 15,130
Total deferred tax assets | $446,865 |  | $442,791
Less: Valuation allowances | (298,033) |  | (304,673)
Total net deferred tax assets | $148,832 |  | $138,118
Deferred tax liabilities: |  |  |
Partnership investments | (1,130) |  | —
Goodwill | (825) |  | —
Right-of-use assets | (36,406) |  | (43,157)
Convertible debt | (21,218) |  | (22,472)
Pension and other postretirement benefit obligations | (19,537) |  | (9,380)
Definite and indefinite lived intangible assets | — |  | (7,054)
Total deferred tax liabilities | $(79,116) |  | $(82,063)
Net deferred tax assets | $69,716 |  | $56,055
In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During the year ended December 31, 2025, the Company recorded a reduction of $6.6 million of valuation allowances against its deferred tax assets. The decrease in the valuation allowance was primarily due to a decrease of $3.6 million related to foreign valuation allowances and a decrease of $11.6 million related to the release of capital loss carryforward valuation allowances, partially offset by an increase in the U.S. disallowed interest expense carryforward of $3.7 million, the impact related to currency translation adjustments of $3.9 million and various other increases in the valuation allowance of $1.0 million. The Company considered the available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets was needed. The Company reached the conclusion it was appropriate to record a valuation allowance against a portion of its federal deferred tax assets based on available evidence. We relied on evidence shown by reversing taxable temporary differences, as well as expectations of future taxable income with the appropriate tax character. The following table summarizes the activity related to our valuation allowance for deferred tax assets for the year ended December 31, 2025 (In thousands):
Balance at beginning of period |  | Additions/ (reductions) charged to expenses |  | Additions/ (reductions) for acquisitions/ dispositions |  | Other additions to (deductions from) reserves |  | Foreign currency translation |  | Balance at end of period
$304,672 |  | $(10,538) |  | $— |  | $— |  | $3,899 |  | $298,033
The aforementioned valuation allowance relates to indefinite-lived intangible assets, nondeductible interest expense carryforwards, capital losses, state and foreign net operating losses and other tax attributes. As of December 31, 2025, the Company had $409.8 million of Federal net operating loss ("NOL") carryforwards, $518.0 million of Federal disallowed business interest expense carryforwards, $1.1 billion of apportioned state NOL carryforwards and $170.0 million of foreign NOL carryforwards. Additionally, as of December 31, 2025, the Company had $13.7 million of other business tax credits, $0.2 million of foreign tax credits, $4.7 million of state credits and $46.8 million of foreign capital loss carryforwards. The Federal NOL carryforwards begin to expire in 2034. The state NOL carryforwards began to expire in 2025 and the state tax credits begin to expire in 2026. The foreign NOLs are not subject to expiration and have an indefinite life. The Company's NOLs may be subject to limitations under Section 382 of the Internal Revenue Code, which restricts the annual amount of NOLs that may be utilized to offset consolidated U.S. taxable income. In addition, the Company's ability to utilize its NOLs may be subject to review by the relevant tax authorities in the jurisdictions in which such NOLs were generated. The following table summarizes the change in unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:
| Year ended December 31,
In thousands | 2025 |  | 2024 |  | 2023
Balance at beginning of year | $41,727 |  | $52,821 |  | $43,697
Additions based on tax positions related to the current year | 1,446 |  | 837 |  | 7,017
Additions for tax positions of prior years | 446 |  | 8 |  | 1,327
Reductions for tax positions of prior years | (574) |  | (11,261) |  | (652)
Reductions due to lapsed statutes of limitations | (12) |  | (137) |  | (208)
Foreign currency translation | 2,999 |  | (541) |  | 1,640
Balance at end of year | $46,032 |  | $41,727 |  | $52,821
At December 31, 2025, the Company's uncertain tax positions of $46.0 million, if recognized, would impact the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2025 and 2024, the amount of accrued interest and penalties payable related to uncertain tax positions was immaterial. The Company files a federal consolidated income tax return for which the statute of limitations remains open for any year in which a net operating loss is utilized, which for the Company is the 2011 tax year and subsequent years. U.S. state jurisdictions have statute of limitations generally ranging from 3 to 6 years. On November 19, 2019, New Media Investment Group Inc. ("New Media") completed its acquisition of Gannett Co., Inc. (which was renamed USA TODAY Media Corp. and is referred to as "Legacy Gannett"). The U.K. income tax returns for calendar years 2018-2023 for Newsquest Capital Ltd. are under audit. The statute of limitations for the Company's U.K. income tax return remains open for tax years for 2024 and forward. Cash paid for income taxes, net of refunds received The following table summarizes the Company's cash paid for income taxes, net of refunds received:
| Year ended December 31,
In thousands | 2025 |  | 2024 |  | 2023
State and local | $1,623 |  | $738 |  | $920
Foreign: |  |  |  |  |
U.K.(a) | 8,279 |  | 8,929 |  | 6,937
Other | 709 |  | 448 |  | 365
Cash paid for income taxes, net of refunds received | $10,611 |  | $10,115 |  | $8,222
(a) For the years ended December 31, 2025, 2024 and 2023, the U.K. was the only jurisdiction with cash paid for income taxes that equaled or exceeded 5% of total income taxes paid. Recently enacted U.S. tax legislation On July 4, 2025, the President signed into law H.R. 1, titled the "One Big Beautiful Bill Act" (the "Act"), which introduced significant tax law changes with varying effective dates for businesses. The Company has evaluated the provisions of the Act on the Consolidated financial statements, and its impact was included in the Company's income tax provision for the year ended December 31, 2025. Key provisions of the Act applicable to the Company include the reinstatement of EBITDA, rather than EBIT, in determining adjusted taxable income under Section 163(j), the immediate expensing of domestic research and experimental expenditures, and the extension of 100% bonus depreciation for qualified property placed in service after January 19, 2025. Beginning with 2026, the legislation also makes changes to the Global Intangible Low-Taxed Income regime, including an increase in the effective tax rate and modifications to the calculation of tested income. As a result of the changes in determining adjusted taxable income under Section 163(j), the Company's limitation on the deductibility of business interest expense and our corresponding valuation allowance on non-deductible U.S. interest expense carryforwards was reduced.

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