Third Quarter 2026
Filed Nov 3, 2026Versant Media Reports Third Quarter 2026 Operating and Financial Results
Platforms revenue grew 9.6% and Free Cash Flow was $302 million, but total revenue declined 4.2%, net income attributable to Versant declined 41.1%, and Adjusted EBITDA declined 20.9%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $1.59B | – | (4.2%) |
| Revenue, nine months ended September 30GAAP | $4.92B | – | – |
| Total revenue excluding SportsEngine and Full Swing, three months ended September 30non-GAAP | $1.57B | – | (3.5%) |
| Costs of revenue, exclusive of depreciation and amortization, three months ended September 30GAAP | $879M | – | – |
| Costs of revenue, exclusive of depreciation and amortization, nine months ended September 30GAAP | $2.17B | – | – |
| Selling, general and administrative, three months ended September 30GAAP | $362M | – | – |
| Selling, general and administrative, nine months ended September 30GAAP | $1.08B | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $243M | – | – |
| Depreciation and amortization, nine months ended September 30GAAP | $757M | – | – |
| Total costs and expenses, three months ended September 30GAAP | $1.48B | – | – |
| Total costs and expenses, nine months ended September 30GAAP | $4.01B | – | – |
| Operating income, three months ended September 30GAAP | $110M | – | – |
| Operating income, nine months ended September 30GAAP | $919M | – | – |
| Interest expense, three months ended September 30GAAP | −$53M | – | – |
| Interest expense, nine months ended September 30GAAP | −$157M | – | – |
| Investment and other income (loss), net, three months ended September 30GAAP | $8M | – | – |
| Investment and other income (loss), net, nine months ended September 30GAAP | $25M | – | – |
| Income before income taxes, three months ended September 30GAAP | $66M | – | – |
| Income before income taxes, nine months ended September 30GAAP | $787M | – | – |
| Income tax expense, three months ended September 30GAAP | −$19M | – | – |
| Income tax expense, nine months ended September 30GAAP | −$243M | – | – |
| Net income, three months ended September 30GAAP | $47M | – | – |
| Net income, nine months ended September 30GAAP | $544M | – | – |
| Net income attributable to Versant, three months ended September 30GAAP | $47M | – | (41.1%) |
| Net income attributable to Versant, nine months ended September 30GAAP | $544M | – | – |
| Basic earnings per common share attributable to Versant shareholders, three months ended September 30GAAP | $0.34 | – | – |
| Basic earnings per common share attributable to Versant shareholders, nine months ended September 30GAAP | $3.86 | – | – |
| Diluted earnings per common share attributable to Versant shareholders, three months ended September 30GAAP | $0.34 | – | – |
| Diluted earnings per common share attributable to Versant shareholders, nine months ended September 30GAAP | $3.85 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $353M | – | (20.9%) |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $1.68B | – | – |
| Standalone Adjusted EBITDA, three months ended September 30non-GAAP | $381M | – | (7.4%) |
| Standalone Adjusted EBITDA, nine months ended September 30non-GAAP | $1.66B | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $346M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.31B | – | – |
| Capital expenditures, three months ended September 30GAAP | −$44M | – | – |
| Capital expenditures, nine months ended September 30GAAP | −$103M | – | – |
| Free Cash Flow, three months ended September 30non-GAAP | $302M | – | – |
| Free Cash Flow, nine months ended September 30non-GAAP | $1.21B | – | – |
| Cash and cash equivalents, September 30GAAP | $1.05B | – | – |
| Current portion of long-term debt, September 30GAAP | $113M | – | – |
| Long-term debt, September 30GAAP | $2.81B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Linear distributionSubscriber declines were partially offset by contractual rate increases. | $935M | – | (5.8%) |
| AdvertisingThe decline reflected the event timing impact of the Ryder Cup in the prior year; the current quarter reflected favorable ratings at the networks and incremental revenue from a recent acquisition. | $373M | – | (5.3%) |
| PlatformsHigher revenue at Fandango, largely driven by movie ticket purchases and sales from the new cinema operating platform. | $245M | – | 9.6% |
| Platforms excluding SportsEngine and Full SwingThe measure excludes the impact of the SportsEngine divestiture and Full Swing acquisition. | $222M | – | 17.4% |
| Content licensing and otherThe decline was primarily due to the timing of content licensing agreements. | $41M | – | (23.6%) |
Full-year 2026 outlook
- Revenue$6.2 billion to $6.45 billion
- NoteAdjusted EBITDA: $1.90 billion to $2.05 billion
- NoteFree Cash Flow: Expected to exceed the prior $1.0 billion to $1.2 billion range
Capital returns
- The Board of Directors declared the fourth quarterly cash dividend of $0.375 per share, payable on January 25, 2027, to shareholders of record as of the close of business on January 4, 2027.
- During the third quarter of 2026, the Company repurchased $100 million of its Class A common stock under an accelerated share repurchase agreement, representing approximately 2.6 million shares.
- Approximately $700 million remained available under the Company's stock repurchase program as of September 30, 2026.
- The Company expects to enter into an accelerated share repurchase agreement commencing November 4, 2026, to repurchase $100 million of its Class A common stock and anticipates completing the transaction during the fourth quarter of 2026.
- Repurchases of common stock under repurchase program and employee plans were $(300) million for the nine months ended September 30, 2026.
- Dividends paid were $(106) million for the nine months ended September 30, 2026.
What drove it
- Networks reached more than 120 million viewers monthly, while aggregate viewership grew double digits year over year.
- All planned pay television distribution renewals for the year were completed.
- Platforms revenue grew 10% in the third quarter, or 17% excluding the impacts of the SportsEngine divestiture and Full Swing acquisition.
- Fandango growth was supported by ticketing, home entertainment sales and Fandango1.
- MS NOW delivered double-digit year-over-year viewership growth across key demographics and launched its direct-to-consumer membership platform.
- Golf Channel delivered its most-watched PGA TOUR season since 2018.
- Viewership of the WNBA's inaugural season on USA increased 25% compared to the prior year's cable average.
Concerns
- Linear distribution revenue declined 5.8%, primarily due to subscriber declines.
- Advertising revenue declined 5.3%, reflecting the event timing impact of the Ryder Cup in the prior year.
- Content licensing and other revenue declined 23.6%, primarily due to the timing of content licensing agreements.
- Adjusted EBITDA declined 20.9%; the company cited lower revenue, partially offset by lower entertainment programming costs and reduced selling, general and administrative costs.
- Programming costs in the current year include additional sports rights and are generally more significant in the third and fourth quarters due to the timing of events.
- The prior-year combined financial statements were derived from Comcast historical accounting records and may not be indicative of future performance as a standalone company.
What to watch
- Whether Platforms growth, including Fandango ticketing and the new cinema operating platform, offsets declines in linear distribution and advertising.
- Fourth-quarter programming costs related to additional sports rights.
- Delivery against reaffirmed full-year revenue of $6.2 billion to $6.45 billion and Adjusted EBITDA of $1.90 billion to $2.05 billion.
- Free Cash Flow performance relative to the prior $1.0 billion to $1.2 billion range, which management now expects to exceed.
- Completion of the planned $100 million accelerated share repurchase during the fourth quarter of 2026.
- Development of CNBC's direct-to-consumer platform and MS NOW Membership.
Balance sheet and cash flow
- Cash and cash equivalents were $1,051 million as of September 30, 2026, compared with $55 million as of December 31, 2025.
- Current portion of long-term debt was $113 million and long-term debt was $2,813 million as of September 30, 2026.
- Net cash provided by operating activities was $346 million in the third quarter of 2026 and $1,313 million for the nine months ended September 30, 2026.
- Free Cash Flow was $302 million in the third quarter of 2026 and $1,210 million for the nine months ended September 30, 2026.
- Acquisitions of businesses were $(696) million for the nine months ended September 30, 2026.
- Proceeds from borrowings were $1,973 million and repayment of long-term debt was $(30) million for the nine months ended September 30, 2026.
- Net cash used in investing activities was $(709) million and net cash used in financing activities was $(645) million for the nine months ended September 30, 2026.
Analysis
Versant reported third-quarter revenue of $1,594 million, down 4.2% from $1,663 million in the prior-year quarter. The underlying revenue measure excluding SportsEngine and Full Swing was $1,569 million, down 3.5% from $1,627 million. Linear distribution revenue declined 5.8% to $935 million as subscriber declines outweighed contractual rate increases. Advertising fell 5.3% to $373 million, principally reflecting Ryder Cup timing in the prior year, while content licensing and other declined 23.6% to $41 million on licensing timing.
Platforms was the growth offset. Revenue increased 9.6% to $245 million, or 17.4% to $222 million excluding SportsEngine and Full Swing. Management attributed the increase primarily to Fandango, driven by movie ticket purchases and sales from the new cinema operating platform. The company also cited double-digit aggregate viewership growth, more than 120 million monthly viewers across its networks, audience gains at MS NOW and Golf Channel's most-watched PGA TOUR season since 2018.
Profitability declined more sharply than revenue. Operating income was $110 million versus $164 million, net income attributable to Versant was $47 million versus $80 million, and diluted EPS was $0.34 versus $0.56. Adjusted EBITDA was $353 million, down 20.9% from $445 million. Management cited lower revenue, public company costs and interest expense following the separation from Comcast in explaining the net-income decline. Compared with Standalone Adjusted EBITDA in the prior-year quarter, Adjusted EBITDA decreased 7.4%, with lower revenue partly offset by lower entertainment programming costs and reduced selling, general and administrative costs.
Cash generation remained a notable feature of the period. Net cash provided by operating activities was $346 million and Free Cash Flow was $302 million in the quarter. For the first nine months, operating cash flow was $1,313 million and Free Cash Flow was $1,210 million. Cash and cash equivalents were $1,051 million at September 30, while current long-term debt was $113 million and long-term debt was $2,813 million. The company deployed $100 million through an ASR in the quarter, had repurchased $300 million of common stock under its repurchase program and employee plans over nine months, and declared a $0.375 per-share fourth quarterly dividend.
Management reaffirmed its full-year 2026 revenue outlook of $6.2 billion to $6.45 billion and Adjusted EBITDA outlook of $1.90 billion to $2.05 billion. It raised its Free Cash Flow posture, saying it now expects Free Cash Flow to exceed the prior $1.0 billion to $1.2 billion range. The outlook maintains the operating targets despite third-quarter declines in revenue and Adjusted EBITDA, placing attention on Platforms growth, the trajectory of subscriber and advertising trends, and fourth-quarter programming costs associated with additional sports rights.
Management, verbatim
Versant’s momentum continues, with audience growth and the completion of all planned pay television distribution renewals for the year, underscoring the value and enduring appeal of our brands.
Mark Lazarus, Chief Executive Officer
We delivered strong Platforms revenue, continued operating efficiencies and significant cash flow. Looking ahead, we are reaffirming our full-year revenue and Adjusted EBITDA 1 outlook, and we expect Free Cash Flow 1 to exceed our prior $1.0 to $1.2 billion forecast.
Anand Kini, Chief Financial Officer and Chief Operating Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating margin was not reported.
- Non-GAAP earnings per share were not reported.
- Segment operating income or segment profitability was not reported.
- Prior-quarter comparisons for reported metrics were not reported.
- A quantitative full-year 2026 Free Cash Flow guidance range was not reported; the company stated only that Free Cash Flow is expected to exceed the prior $1.0 billion to $1.2 billion range.
- Full-year 2026 gross margin, operating expense and tax-rate guidance were not reported.
- Previous-release outlook was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.