Versant Media Group (VSNT) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $1.64 billion, with net income attributable to shareholders of $211 million and Adjusted EBITDA of $624 million, reflecting continued operating momentum and strong brand performance despite a 3.8% year-over-year revenue decline and a 30.1% drop in net income.

• Completed separation from Comcast in January 2026, incurring $3.0 billion in new debt and a $2.25 billion payment to Comcast.

• Strategic initiatives included the acquisition of Full Swing for $530 million, Bundesliga broadcast rights, Fandango platform expansion, and direct-to-consumer advances at CNBC and MS NOW.

• Declared a quarterly cash dividend of $0.375 per share and completed a $100 million accelerated share repurchase, with another $100 million ASR planned for Q3 2026.

Financial highlights

• Total revenue for Q2 2026 was $1.64 billion, down 3.8% year-over-year; excluding SportsEngine, revenue declined 2.8%.

• Adjusted EBITDA for Q2 2026 was $624 million, down 8.9% year-over-year, but up 3% compared to Standalone Adjusted EBITDA in the prior year quarter due to lower programming and SG&A costs.

• Net income attributable to shareholders was $211 million, a 30.1% decrease from Q2 2025, mainly due to lower revenue, higher public company costs, increased interest expense, and higher tax expense from the SportsEngine divestiture.

• Free cash flow totaled $350 million for the quarter; net cash provided by operating activities was $382 million.

• Advertising revenue was $423 million, down 0.6% year-over-year, a significant improvement from the prior year’s 13% decline.

Outlook and guidance

• Raised full-year 2026 outlook: total revenue expected between $6.2 billion and $6.45 billion, Adjusted EBITDA between $1.9 billion and $2.05 billion, and Free Cash Flow maintained at $1.0–$1.2 billion.

• Management expects continued declines in linear distribution revenue due to subscriber losses and ongoing pressure on advertising revenue from audience fragmentation and macroeconomic factors.

• Digital platforms are expected to remain a growth area, with investments planned to expand offerings and continued investment in sports programming and digital capabilities.

• Expect higher programming costs in the second half due to increased sports rights, impacting Q3 and Q4 Adjusted EBITDA growth.

• Anticipate lower free cash flow in the second half due to CapEx and working capital timing.