Versant Reaffirms 2026 Outlook After Third-Quarter Earnings Drop

The Tip Desk · November 10, 2026 · 3 min read

Net income attributable to Versant was $47 million in the third quarter, down 41.1% from $80 million a year earlier, as the company reaffirmed full-year revenue of $6.2 billion to $6.45 billion.

Versant Media Group (VSNT), the media and entertainment company spun off from Comcast, reported net income attributable to Versant of $47 million for the three months ended September 30, 2026, down 41.1% from $80 million a year earlier.

The company said the decline was primarily due to lower revenue and public-company costs and interest expense following the January 2026 separation from Comcast, partially offset by a prior-year impairment loss on one of its investments that had also raised the income-tax provision in the year-ago quarter.

Total revenue was $1,594 million, down 4.2% from $1,663 million a year earlier. Excluding SportsEngine and Full Swing, revenue was $1,569 million, down 3.5% from $1,627 million. Sequential revenue had been $1.64 billion in the second quarter and $1.69 billion in the first quarter.

Linear distribution revenue was $935 million, down 5.8% from $992 million a year earlier, which the company attributed primarily to subscriber declines partially offset by contractual rate increases. Advertising revenue was $373 million, down 5.3% from $394 million, reflecting the Ryder Cup event-timing impact in the prior year. Content licensing and other revenue was $41 million, down 23.6% from $54 million, primarily due to the timing of content licensing agreements.

Platforms revenue was the offsetting line. It was $245 million, up 9.6% from $224 million a year earlier, or 17.4% excluding SportsEngine and Full Swing ($222 million versus $189 million). The company said the increase was primarily due to higher revenue at Fandango, largely driven by movie ticket purchases and sales from its new cinema operating platform.

Adjusted EBITDA was $353 million, down 20.9% from $445 million a year earlier, or down 7.4% versus Standalone Adjusted EBITDA of $381 million. Sequential Adjusted EBITDA had been $624 million in the second quarter and $704 million in the first quarter. The company said the year-over-year decrease reflected lower revenue, partially offset by lower entertainment programming costs and reduced selling, general and administrative costs. Programming costs in the current year reflect costs related to additional sports rights that are generally more significant in the third and fourth quarters due to the timing of events.

Net cash provided by operating activities was $346 million and Free Cash Flow was $302 million in the third quarter.

Audience metrics remained a feature of the quarter. Versant said its networks reached more than 120 million viewers monthly, while aggregate viewership grew double digits year over year. CNBC ranked among the top 10 most-watched cable networks during market hours for the eighth consecutive month across key demographics. MS NOW delivered double-digit year-over-year viewership growth across key demographics, ranking as the second-most-watched cable network during the quarter and recording its eleventh consecutive month of audience growth in September. Golf Channel delivered its most-watched PGA TOUR season since 2018. USA Network ranked among the top five cable entertainment networks across key demographics, and viewership of the WNBA’s inaugural season on USA increased 25% compared with the prior year’s cable average.

The company completed a $100 million accelerated share repurchase in the third quarter, representing approximately 2.6 million shares, with approximately $700 million remaining available under the stock repurchase program as of September 30, 2026. It announced an additional planned $100 million ASR to commence November 4, 2026, and expects to complete it during the fourth quarter. The board declared a fourth quarterly cash dividend of $0.375 a share, payable January 25, 2027.

Based on year-to-date performance and expectations for the remainder of the year, Versant reaffirmed its full-year 2026 outlook for revenue of $6.2 billion to $6.45 billion and Adjusted EBITDA of $1.90 billion to $2.05 billion, and now anticipates Free Cash Flow to exceed the prior $1.0 billion to $1.2 billion range.