Key Highlights

  • Revenue fell 3.6% to USD 430.8 million, and the operating loss narrowed to USD 3.0 million from USD 27.2 million.
  • A USD 1,119.9 million unrealized loss on MGM Resorts shares drove a net loss of USD 685.1 million.
  • Other income, net, was USD 185.8 million, and an income tax benefit of USD 278.4 million partly offset the loss.
  • Total operating costs and expenses fell to USD 433.9 million from USD 474.4 million, and cash was USD 1.3 billion.

Operating Results

People Inc. (NASDAQ:PPLI), a digital media and publishing company, reported third-quarter 2026 Revenue of USD 430.8 million, down from USD 447.1 million. Cost of revenue fell to USD 155.7 million from USD 171.9 million, selling and Marketing expense fell to USD 118.8 million from USD 130.1 million, and general and administrative expense fell to USD 96.6 million from USD 108.1 million. Product development expense rose to USD 34.3 million from USD 33.5 million, Depreciation rose to USD 9.2 million from USD 8.2 million, and Amortization of Intangibles fell to USD 19.2 million from USD 22.5 million.

Total operating costs and expenses were USD 433.9 million versus USD 474.4 million, so the operating loss narrowed to USD 3.0 million from USD 27.2 million. By our calculation, costs fell 8.5% against revenue down 3.6%, which accounts for the improvement. Selling and marketing expense fell about 8.7% and general and administrative expense fell about 10.7%, both faster than revenue.

Investment Valuation and Net Loss

Interest expense was USD 26.0 million versus USD 27.6 million. The company recorded an unrealized loss of USD 1,119.9 million on its Investment in MGM Resorts International, versus a gain of USD 17.5 million a year earlier, partly offset by other income, net, of USD 185.8 million versus an expense of USD 18.4 million. The loss from continuing operations before income taxes was USD 963.3 million versus USD 55.9 million, and an income tax benefit of USD 278.4 million brought the net loss from continuing operations to USD 684.9 million versus USD 52.7 million. After a small loss from discontinued operations, the net loss was USD 685.1 million, compared with USD 21.7 million a year earlier, which had included USD 31.0 million of Earnings from discontinued operations.

Nine Months and Liquidity

For the nine months, revenue was USD 1,273.4 million versus USD 1,301.7 million, and the operating loss was USD 49.2 million versus USD 13.6 million, because general and administrative expense rose to USD 312.6 million from USD 246.0 million. Interest expense fell to USD 77.8 million from USD 93.1 million. The unrealized loss on the MGM investment was USD 364.3 million for the nine months, and the company also recorded a USD 78.3 million loss on the sale of Care.com, net of income taxes. The net loss was USD 247.9 million versus USD 25.7 million.

Cash and cash equivalents were USD 1.3 billion at September 30, 2026.

Valuation and Cost Indicators

The quarter shows two different stories: an operating Business with narrowing losses and a Balance Sheet exposure to the share price of a large Equity holding that moves reported earnings by large amounts. Items to track include mark-to-market movements in the MGM Resorts position, Advertising and subscription revenue trends, cost reductions in selling and general expenses and interest expense after Debt repayments.