Key Highlights

  • Diluted EPS of USD 0.34 topped the consensus estimate of USD 0.01 but fell from USD 0.56 a year earlier.
  • Revenue of USD 1.594 billion fell 4.2% but topped the consensus estimate of USD 1.57 billion; Platforms rose 9.6%.
  • Adjusted EBITDA of USD 353 million fell 20.9% from the prior year, or 7.4% against standalone adjusted EBITDA.
  • Revenue guidance of USD 6.2 to 6.45 billion was reaffirmed, and a USD 100 million accelerated share repurchase closed.

Versant Media Group, Inc. (NASDAQ:VSNT) reported third quarter 2026 Revenue of USD 1.594 billion, down 4.2% from USD 1.663 billion a year earlier but above the consensus estimate of USD 1.57 billion. Diluted Earnings per Share were USD 0.34 against a consensus estimate of USD 0.01, and compared with USD 0.56 in the third quarter of 2025. Net Income attributable to Versant fell to USD 47 million from USD 80 million, which the company tied to lower revenue, public company costs and interest expense following its January 2026 separation from Comcast, partly offset by a prior year Investment impairment.

Platforms Growth Offsets Linear Declines

Platforms revenue rose 9.6% to USD 245 million, or 17.4% excluding the SportsEngine divestiture and the Full Swing acquisition, led by Fandango movie ticket purchases and sales from its new cinema operating platform. Linear distribution revenue fell 5.8% to USD 935 million on subscriber declines partly offset by contractual rate increases, and Advertising revenue fell 5.3% to USD 373 million, reflecting the prior year Ryder Cup timing. Content licensing and other revenue dropped 23.6% to USD 41 million on the timing of licensing agreements.

Adjusted EBITDA was USD 353 million, down 20.9% from USD 445 million, with lower entertainment programming and selling, general and administrative costs only partly offsetting lower revenue. Operating Cash Flow was USD 346 million and free cash flow was USD 302 million. Chief Executive Officer Mark Lazarus pointed to audience growth, the completion of all planned pay television distribution renewals for the year, the integration of Full Swing into the golf ecosystem and the launch of MS NOW Membership. The company said its networks reached more than 120 million viewers monthly.

Outlook and Capital Returns

The company reaffirmed full year 2026 revenue guidance of USD 6.2 to 6.45 billion and Adjusted EBITDA guidance of USD 1.90 to 2.05 billion. It now projects free cash flow above its prior range of USD 1.0 to 1.2 billion. The board declared a fourth quarterly Cash Dividend of USD 0.375 per share, payable on January 25, 2027 to holders of record on January 4, 2027.

During the quarter the company repurchased USD 100 million of Class A common stock, about 2.6 million shares, under an accelerated share repurchase agreement, and it plans another USD 100 million agreement commencing November 4, 2026. About USD 700 million remained available under the repurchase program at September 30, 2026.

Full Year Revenue Guidance Against Nine Month Results

Nine month revenue of USD 4.925 billion against the USD 6.2 to 6.45 billion guidance leaves USD 1.275 to 1.525 billion for the fourth quarter, compared with USD 1.594 billion in the third. Third quarter free cash flow of USD 302 million sits against a full year range that the company now places above USD 1.0 to 1.2 billion. Long Term Debt stood at USD 2.813 billion against USD 983 million at year end 2025, with cash of USD 1.051 billion against USD 55 million. Nine month net income of USD 544 million compares with USD 749 million a year earlier.