Versant tops Q3 profit estimates as revenue lands in line
Versant earned 34 cents per share on a GAAP diluted basis, above the 5-cent EPS consensus estimate compiled by Finnhub. Revenue of $1.59 billion was in line with the $1.6 billion estimate, also compiled by Finnhub.
Key takeaways
- Versant Media Group (VSNT) reported third-quarter revenue of $1.59 billion, down 4.2% from a year earlier, and GAAP diluted earnings of 34 cents per share. Adjusted EBITDA was $353 million, down 20.9%. The company reaffirmed its full-year revenue and Adjusted EBITDA outlook and declared a quarterly dividend of 37.5 cents per share.
Versant Media Group (VSNT) topped third-quarter profit estimates on Nov. 3, while revenue came in line with expectations. Adjusted EBITDA fell 20.9% from a year earlier, and the company kept its full-year forecasts.
Versant operates four core markets: political news and opinion; business news and personal finance; golf; and sports and genre entertainment. It separated from Comcast on Jan. 2, 2026, and its brands include CNBC, MS NOW, USA Network and Golf Channel.
The company reported GAAP diluted earnings of 34 cents per share for the quarter ended Sept. 30, against the 5-cent consensus estimate compiled by Finnhub. Total revenue was $1.59 billion, against the $1.6 billion estimate compiled by Finnhub.
Here's how the company did:
- Revenue: $1.59 billion vs. $1.66 billion a year earlier
- Net income attributable to Versant: $47 million vs. $80 million a year earlier
- Adjusted EBITDA: $353 million vs. $445 million a year earlier
- Free cash flow: $302 million
Revenue fell 4.2% from a year earlier. Excluding the effects of the SportsEngine divestiture and the Full Swing acquisition, revenue fell 3.5%.
Linear distribution revenue declined 5.8%, which the company attributed mainly to subscriber declines, partly offset by contractual rate increases. Advertising revenue fell 5.3%, reflecting the timing of the Ryder Cup in the prior year.
Platforms revenue rose 9.6%, or 17.4% excluding SportsEngine and Full Swing. The company said the increase was mainly due to higher revenue at Fandango, driven by movie ticket purchases and sales from its new cinema operating platform.
CFO Anand Kini, who is also Chief Operating Officer, said: “Our third quarter performance demonstrates the financial discipline and flexibility that underpins Versant's strategy.”
2026 guidance
The company reaffirmed its full-year 2026 outlook for revenue and Adjusted EBITDA, the same ranges it gave in August. Total revenue is expected at $6.2 billion to $6.45 billion, and Adjusted EBITDA at $1.90 billion to $2.05 billion.
Free cash flow is now expected to exceed the prior forecast of $1.0 billion to $1.2 billion. Free cash flow was $1.21 billion for the first nine months of 2026.
According to its SEC filings, net income fell in each of the last three quarters, from $367.0 million in the first quarter of fiscal 2026 to $211.0 million in the second quarter of 2026.
Cash and capital returns
The board declared a fourth quarterly cash dividend of $0.375 per share, payable Jan. 25, 2027, to shareholders of record on Jan. 4, 2027.
The company repurchased $100 million of its Class A common stock in the third quarter under an accelerated share repurchase agreement, covering about 2.6 million shares. About $700 million remained under its repurchase program as of Sept. 30.
The company expects to start a new $100 million accelerated share repurchase on Nov. 4 and to complete it in the fourth quarter. CEO Mark Lazarus said: “Versant's momentum continues, with audience growth and the completion of all planned pay television distribution renewals for the year.”
The company said it has returned $457 million to shareholders to date.