Versant Media Group — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was $1,644 million, a 3.8% decline year-over-year from $1,708 million in Q2 2025; excluding SportsEngine, revenue decreased 2.8%.
• Net income attributable to Versant was $211 million, a 30.1% decrease from $302 million in the prior year quarter.
• Adjusted EBITDA was $624 million, an 8.9% decline year-over-year from $685 million; Standalone Adjusted EBITDA increased 3.0% compared to the prior year.
• Linear distribution revenue declined 6.3% to $954 million, driven by subscriber declines partially offset by contractual rate increases.
• Advertising revenue declined 0.6% to $423 million.
• Platforms revenue increased 0.8% to $225 million (9.3% growth excluding SportsEngine), driven by Fandango and GolfNow.
• Content licensing and other revenue remained flat at $43 million.
• Net cash provided by operating activities was $382 million; Free Cash Flow was $350 million.
• Total debt increased to $2,954 million ($113 million current portion + $2,841 million long-term) as of June 30, 2026, compared to $983 million long-term debt at December 31, 2025.
• Deferred revenue decreased to $83 million as of June 30, 2026, from $163 million at December 31, 2025.

Guidance and Future Outlook

• Raised full-year 2026 Total Revenue outlook to $6.2 billion to $6.45 billion.
• Raised full-year 2026 Adjusted EBITDA outlook to $1.9 billion to $2.05 billion.
• Maintained full-year 2026 Free Cash Flow outlook at $1.0 billion to $1.2 billion.

Business Segments and Product Lines

• Business News and Personal Finance: CNBC ranked among the top 10 cable networks for market hours in June; coverage of the SpaceX IPO generated the network's highest-rated day in over five years; Jeff Bezos interview generated over 100 million video views.
• Political News and Opinion: MS NOW achieved its seventh consecutive month of year-over-year audience growth in June, finishing as the second-highest-rated network across all genres; viewership increased 14% in Q2 2026 versus the prior year; generated nearly 3 billion combined YouTube and TikTok views year-to-date; ranked as the No. 1 news organization on YouTube in June; celebrated its 30th anniversary in July.
• Golf: PGA TOUR coverage delivered the most-watched second quarter since 2020; GolfNow reported broad-based growth in rounds booked, global course relationships, payments volume, and GolfPass subscribers.
• Sports and Genre Entertainment: USA Network remained a top-five cable entertainment network; WNBA inaugural season on USA delivered the three most-watched games across cable and streaming; announced a five-year agreement with the Bundesliga to broadcast over 300 live matches annually (30+ on USA, rest free on Fandango); new originals "Anna Pigeon" and "The Golden Life" set to premiere.
• Platforms: Fandango launched an ad-supported streaming service; acquired Full Swing to expand the golf ecosystem; advanced direct-to-consumer initiatives at CNBC and MS NOW.

Market and Competitive Landscape

• Versant's brands reached over 120 million viewers monthly during the quarter.
• Secured multi-year renewals with two large distribution partners, one in the U.S. and one in Canada.
• MS NOW ranked as the No. 1 news organization on YouTube in June.
• USA Network extended a leadership position spanning more than three decades among key demographics.

Risks and Challenges

• Net income decline attributed to lower revenue, public company costs, interest expense following separation from Comcast, and increased tax expense largely due to the SportsEngine divestiture.
• Linear distribution revenue decline driven by subscriber declines.
• Platforms revenue growth was partially offset by the impact of the SportsEngine divestiture.
• Forward-looking statements are subject to risks including changes in consumer behavior, distribution agreements, advertising market conditions, competitive environment, and separation-related costs.

Management Commentary and Tone

• CEO Mark Lazarus stated brands demonstrated "strength, durability and scale" and that initiatives position Versant for long-term growth.
• CFO Anand Kini expressed pride in "disciplined execution," highlighting the strength of the operating model and meaningful cash flow generation.
• Management emphasized a balanced approach to capital allocation and confidence in the business and financial outlook.

Other Key Points

• Declared a third quarterly cash dividend of $0.375 per share, payable on October 22, 2026, to shareholders of record as of October 1, 2026.
• Completed a $100 million Accelerated Share Repurchase (ASR) transaction in the second quarter, repurchasing 2,374,942 shares of Class A common stock.
• Announced an additional planned $100 million ASR agreement expected to commence August 7, 2026, and complete in Q3 2026.
• Remaining stock repurchase authorization was approximately $800 million as of June 30, 2026.
• Completed the divestiture of SportsEngine during the second quarter of 2026.
• Completed the Full Swing acquisition following the second quarter.
• Separation from Comcast was completed on January 2, 2026.