People's Digital Growth Slows as Sessions Fall

The Tip Desk · November 3, 2026 · 3 min read

Digital revenue rose 2% to $288.5 million in the third quarter, a slower pace than the 6% increase in the second quarter, as session-based revenue declined 6%.

People Incorporated (PPLI), the digital media and services company, reported third-quarter revenue of $430.8 million, down 4% from a year earlier, a steeper drop than the 1% year-over-year decline in the second quarter.

Digital revenue rose 2% to $288.5 million, slowing from 6% growth to $290 million in the prior quarter and marking a 12th consecutive quarter of Digital growth. Non-session-based revenue increased 15% to $125.0 million, including 49% growth in Licensing and other, versus 16% non-sessions-based growth in the second quarter. Licensing and other rose primarily on Apple News+ and other syndication partners and the Meta content partnership signed in the fourth quarter of 2025.

Session-based revenue declined 6% to $163.6 million, which the company said reflected an accelerated impact from AI-oriented search and content discovery. Core Sessions fell 26% to 1,613 million and Total Sessions fell 25% to 1,794 million. Advertising revenue decreased 8% to $161.9 million on lower premium and open programmatic volume, partially offset by direct-sold growth. Performance marketing rose 2% to $73.9 million. Print revenue declined 16% to $127.6 million.

People Inc. operating income increased 30% to $37.2 million, versus 27% year-over-year growth in Digital operating income in the prior quarter. Digital operating income rose 27% to $48.7 million, matching the prior quarter’s 27% year-over-year increase. The company said Digital operating income included $8.3 million of severance and related expenses in the year-ago quarter. Digital Adjusted EBITDA decreased 2% to $72.0 million, with margins of 25%, after an 18% year-over-year increase to $74 million and margins expanding nearly 300 basis points to 26% in the second quarter. People Inc. Adjusted EBITDA decreased 7% to $70.4 million. Total Adjusted EBITDA decreased 1% to $54.8 million, reversing a 15% year-over-year increase in the prior quarter.

Emerging & Other revenue increased 21% to $21.0 million, with The Daily Beast up 39% to $8.0 million and Vivian Health up 18% to $12.3 million, accelerating from 12% Vivian Health growth in the second quarter. Emerging & Other swung to operating income of $3.6 million from a $20.8 million loss a year earlier, after $21.4 million of legal fees and settlement expenses in the third quarter of 2025.

Corporate operating loss increased 26% to $43.9 million, including $12.1 million higher stock-based compensation from consolidating corporate functions with People Inc. The company said the consolidation remains on track for annual run-rate operating expense of approximately $45 million and annual stock-based compensation of approximately $30 million after completion in the first quarter of 2027.

On October 29, 2026, the company executed staffing reductions and expects $15 million to $20 million in severance and employee separation benefits expense in the fourth quarter of 2026. On August 4, 2026, it completed the sale of its Limited Partner stake in a third-party fund for $185.1 million net of costs, a $174.9 million pre-tax gain.

Cash and cash equivalents were $1.3 billion as of September 30, 2026, of which $372.4 million was held at People Inc. The company holds 66.8 million MGM shares valued at $2.0 billion as of October 30, 2026. Full-year 2026 outlook: total Adjusted EBITDA $263 million to $283 million, with People Inc. $330 million to $345 million, Emerging & Other $13 million to $15 million, Corporate $(80) million to $(77) million, and total operating income $6 million to $49 million; fourth-quarter Digital revenue growth is expected at low-to-mid single digits and full-year Digital revenue growth at mid-single digits.