People Incorporated — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue was $430.8 million for Q3 2026, a 4% decrease from $447.1 million in Q3 2025.
• People Inc. revenue was $409.9 million, down 5% year-over-year, driven by a 2% increase in Digital revenue to $288.5 million and a 16% decline in Print revenue to $127.6 million.
• Emerging & Other revenue increased 21% to $21.0 million.
• Total operating loss was $3.0 million for Q3 2026, an 89% improvement from a $27.2 million loss in Q3 2025.
• People Inc. operating income increased 30% to $37.2 million.
• Digital operating income rose 27% to $48.7 million; Print operating income increased 263% to $3.7 million.
• Total Adjusted EBITDA was $54.8 million for Q3 2026, a 1% decrease from $55.1 million in Q3 2025.
• People Inc. Adjusted EBITDA was $70.4 million, down 7% from $75.7 million in Q3 2025, with Digital Adjusted EBITDA at $72.0 million (25% margin).
• Net loss was $687.5 million for Q3 2026 compared to a $21.9 million loss in Q3 2025, primarily due to an unrealized loss of $1,119.9 million on the investment in MGM Resorts International.
• Diluted loss per share was $9.15 for Q3 2026 versus $0.27 in Q3 2025.
• For the nine months ended September 30, 2026, net cash from continuing operations increased $105 million to $106 million, and Free Cash Flow increased $93 million to $80 million.
• The company held $1.3 billion in cash and cash equivalents as of September 30, 2026.
• Long-term debt was $1.4 billion, with a weighted average maturity of 5.0 years and a weighted average borrowing cost of 7.0%.
• Deferred revenue was $23.1 million as of September 30, 2026, up from $19.0 million at December 31, 2025.

Guidance and Future Outlook:

• Full Year 2026 Adjusted EBITDA is projected between $263 million and $283 million.
• Full Year 2026 Total Operating Income is projected between $6 million and $49 million.
• People Inc. Digital revenue is expected to grow mid-single digits for the full year 2026, with Q4 2026 growth expected in the low-to-mid single digits.
• Emerging & Other revenue and Adjusted EBITDA are expected to grow driven by The Daily Beast and Vivian Health.
• Corporate annual run-rate operating expense is targeted at approximately $45 million by the end of Q1 2027, with stock-based compensation expected at approximately $30 million.
• The company expects to incur $15-$20 million in severance and employee separation benefits expense in Q4 2026 due to staffing reductions executed on October 29, 2026.

Business Segments and Product Lines:

• People Inc. Digital: Revenue grew 2% driven by a 15% increase in Non-session-based revenue, including a 49% surge in Licensing and other revenue from Apple News+, Meta content partnership, and AI-related content use. Session-based revenue declined 6% due to a 26% drop in Core Sessions driven by AI-oriented search and content discovery.
• People Inc. Print: Revenue declined 16% due to portfolio optimization and the migration of audience and advertising spend to digital.
• Emerging & Other: Revenue grew 21%, with The Daily Beast up 39% and Vivian Health up 18% (accelerating from 12% in Q2 2026). Vivian Health growth was supported by its AI Assistant subscription product launched in Q4 2025.
• MGM Investment: The company holds 66.8 million shares of MGM, valued at $2.0 billion as of October 30, 2026. An amended voting agreement limits collective ownership to 29.9%.

Market and Competitive Landscape:

• The company faces competitive pressure from AI-oriented search and content discovery experiences, which have reduced Core Sessions by 26%.
• Licensing revenue growth was driven by partnerships with major platforms including Apple News+, Meta, Yahoo, and MSN, as well as utilization in large-language models.
• The company continues to optimize its print portfolio while shifting focus to digital non-session-based revenue streams.

Risks and Challenges:

• Significant volatility in net earnings is driven by unrealized gains and losses on the MGM investment.
• Ongoing decline in print revenue and migration of advertising spend to digital.
• Risks related to AI advancements affecting traffic, engagement, and monetization.
• Dependence on search engines and third-party platforms, including potential changes in algorithms or policies by Google.
• Antitrust litigation against Google continues to incur costs.
• Legacy business legal matters previously resulted in significant expenses, though Q3 2026 saw a resolution of a specific legacy litigation matter.

Management Commentary and Tone:

• Barry Diller, Chairman and Senior Executive, stated the company is continuing its course to simplify around People Inc. and the MGM investment.
• Management expressed confidence in People Inc. as a durable generator of cash flow and undiminished conviction in MGM.
• The tone emphasizes capital allocation, stock investment, and value creation through simplification and strategic focus.

Other Key Points:

• On August 4, 2026, the company sold its Limited Partner stake in a third-party fund for $185 million in net proceeds, resulting in a $175 million pre-tax gain.
• The company has 12.5 million shares remaining under its share repurchase authorization as of October 30, 2026.
• A proposal to acquire all outstanding shares of MGM was withdrawn on September 23, 2026.
• The company is consolidating corporate functions with People Inc., resulting in increased stock-based compensation expenses in the short term but targeting long-term cost savings.
• Conference call scheduled for November 3, 2026, at 8:30 a.m. Eastern Time.