People Inc misses Q3 revenue estimates as MGM stake loss deepens

People Inc (PPLI) reported third-quarter revenue of $430.8 million, down 4% from a year earlier, and a GAAP loss of $9.15 per diluted share, the company said in its press release on Nov. 2.

Revenue fell short of the $451.26 million consensus estimate. The loss was wider than the 20-cent loss per share estimate, which is on an adjusted basis, while the company's per-share figure is GAAP.

The loss was weighed down by an unrealized loss of $1.12 billion on the company's investment in MGM Resorts International. The operating loss narrowed to $3.0 million from $27.2 million a year earlier.

People Inc owns more than 40 brands, including PEOPLE, Food & Wine and Better Homes & Gardens, and holds a stake in MGM Resorts International.

Here's how the company did:

• Revenue: $430.8 million vs. $447.1 million a year earlier, below the $451.26 million consensus estimate
• Diluted loss per share: $9.15 vs. a loss of 27 cents a year earlier

Segment results

Digital revenue rose 2% to $288.5 million from $283.2 million. Digital operating income increased 27% to $48.7 million, while Digital Adjusted EBITDA fell 2% to $72.0 million.

Print revenue fell 16% to $127.6 million, driven by the ongoing portfolio optimization and the continued migration of audience and advertising spend from print to digital.

Emerging & Other revenue rose 21% to $21.0 million. Revenue at The Daily Beast grew 39%, and revenue at Vivian Health grew 18%. The segment posted operating income of $3.6 million, compared with a loss of $20.8 million a year earlier.

2026 guidance

The company narrowed its full-year total Adjusted EBITDA forecast to $263 million to $283 million, from the $255 million to $290 million range it gave on Aug. 3.

It raised the low end of its People Inc Adjusted EBITDA forecast to $330 million to $345 million, from $325 million to $355 million. Its total operating income forecast is now $6 million to $49 million, from $15 million to $80 million.

For the fourth quarter, the company expects Digital revenue growth of low-to-mid single digits.

"We're continuing the course we laid out last year: simplify the company around People Inc. and our MGM Resorts investment. With ample capital, we're well positioned to invest in our own stock and pursue opportunities for value creation," said Barry Diller, Chairman and Senior Executive of People Incorporated.

Costs and cash

On Oct. 29, the company executed staffing reductions and expects to incur $15 million to $20 million in severance and employee separation expense in the fourth quarter of 2026.

Net cash from continuing operations for the first nine months rose to $105.6 million, and free cash flow was $80.2 million.

The company had $1.3 billion in cash and cash equivalents as of Sept. 30, of which $372 million was held at People Inc. As of Oct. 30, it had 12.5 million shares remaining under its share repurchase authorizations.

On Aug. 4, the company completed the sale of its Limited Partner stake in a third-party fund for $185 million in net proceeds, resulting in a pre-tax gain of $175 million.

Net income swung from a loss of $71.9 million in the first quarter of 2026 to a profit of $506.9 million in the second quarter, according to its SEC filings.