People Incorporated (PPLI) Q2 2026 earnings summary

Executive summary

• Leadership transition completed: Neil Vogel appointed CEO and Tim Quinn as CFO, effective August 2026, with outgoing executives remaining as consultants through March 2027.

• Strategic pivot to focus on core assets, including People Inc, MGM investment, and monetization of non-core assets; Care.com sale completed and Search segment operations ceased.

• Agreement to sell a limited partner stake in a third-party fund for $189 million, expected to close in Q3 2026.

• Board authorized repurchase of 10 million additional shares, with $448 million invested since 2025, reducing shares outstanding by 13%.

• Net earnings surged to $506.9 million for the quarter, driven by a $721.7 million unrealized gain on MGM investment.

Financial highlights

• Q2 2026 digital revenue grew 6% year-over-year to $290M, marking the 11th consecutive quarter of digital growth.

• Adjusted EBITDA for the quarter rose 5% to $76.2 million, with digital Adjusted EBITDA up 18% to $74M and margins expanding to 26% from 23%.

• Print revenue declined 16% year-over-year to $132.6M, with Adjusted EBITDA down 45%.

• Free cash flow for the first half of 2026 was $79M; $179M generated over the last 12 months.

• Net leverage ratio reduced to 3.3x, with $1.1B in cash and $1.4B in long-term debt as of June 30, 2026.

Outlook and guidance

• FY 2026 Adjusted EBITDA guidance: $255M–$290M, with mid- to high-single-digit digital revenue and EBITDA growth projected.

• Print Adjusted EBITDA expected to offset unallocated corporate costs.

• Corporate consolidation and restructuring plan targeting $45M annual run-rate operating expense and $30M annual stock-based compensation by Q1 2027.

• Emerging & Other segment revenue and EBITDA growth driven by The Daily Beast and Vivian Health.

• Capital expenditures for 2026 projected to increase 60–70% over 2025, mainly for leasehold improvements.