How much of the guidance increase was due to Full Swing vs. underlying business improvements, and what does the ASR mean for future M&A appetite?

The guidance increase was driven by confidence in the underlying business and its momentum, not the Full Swing acquisition. Versant's capital allocation policy is 'ands' – investing in growth, returning capital to shareholders, and maintaining a healthy balance sheet – allowing for both ASRs and disciplined M&A. “Our updat and guidance is not because of the acquisition of Full Swing. As you know, getting a partial period here given we just closed the acquisition, and we looked at and we established our kind of outlook up based on the entirety of the portfolio.”

What is the strategic vision for Fandango as a comprehensive entertainment platform, and how does it differentiate from competitors like Pluto or Tubi?

Fandango aims to be a comprehensive platform for movie discovery, ticketing, renting/buying, and free AVOD, leveraging its strong brand, installed base on connected TVs, and independence to work with all studios. Its differentiation comes from unique content (e.g., Bundesliga), transactional data for targeted advertising, and the ability to offer all three monetization models (AVOD, transactional, ticketing) under one brand. “I think our ability, because of the transactional business around movie tickets and buying and renting films and TV series, our ability to target content and target advertising will be distinct.”

What drove the firming of linear distribution growth, and what networks/factors contributed to the better advertising trends?

Linear distribution deals, despite industry headwinds, allowed Versant to mitigate some impacts. Advertising strength was broad-based across news and sports, driven by strong ratings and engagement in live events, rather than primarily by the Free TV Networks acquisition. “The strength was pretty broad-based. Now we have talked a lot about the power of one of our kind of home markets. We have a very sports and news and live event focused kind of programming. It's about 60% of our audience. That's the kind of programming that's resonating very well.”

VSNT

Versant Media (VSNT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 6, 2026

Source: earnings call transcript

Executive summary

Versant Media Q2 FY26 — Strong Platform Growth and Raised Full-Year Outlook

Versant Media delivered a strong Q2 FY26, reinforcing its strategy of leveraging premium content and iconic brands to drive audience engagement and accelerate growth across digital platforms. The company raised its full-year revenue and adjusted EBITDA outlook, reflecting confidence in its business model and strategic investments in direct-to-consumer offerings and disciplined M&A. Despite ongoing secular headwinds in linear distribution, Versant is mitigating impacts through strategic deals and focusing on capital returns to shareholders.

Highlights

Full-year revenue outlook raised from $6.15B-$6.4B to $6.2B-$6.45B.
Full-year adjusted EBITDA outlook raised from $1.85B-$2B to $1.9B-$2.05B.
Adjusted EBITDA increased 3% to $624M in Q2 FY26.
Platforms revenue grew 9% (excluding divestiture) to $225M.
Advertising revenue decline improved to 0.6% YoY in Q2 FY26, compared to a 13% decline in the prior year period.

Concerns

Total revenue declined 4% (3% excluding divestiture) to $1.64B in Q2 FY26.
Linear distribution revenue decreased 6% YoY to $954M due to subscriber declines.
Second half programming costs are expected to increase year-over-year, making Q3 and Q4 adjusted EBITDA growth unlikely.
Second half free cash flow is anticipated to be lower than the first half due to working capital timing and higher CapEx.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year revenue	$6.2B-$6.45B high materiality	FY26	High
Full-year adjusted EBITDA	$1.9B-$2.05B high materiality	FY26	High
Full-year free cash flow	$1B-$1.2B high materiality	FY26	Medium
Second half programming costs	increase year-over-year medium materiality	H2 FY26	High
Q3 and Q4 Adjusted EBITDA growth	unlikely to demonstrate growth versus prior year medium materiality	Q3 FY26 and Q4 FY26	High
SG&A expenses	modest increases low materiality	Future	Medium
Second half CapEx	higher medium materiality	H2 FY26	High
Second half free cash flow	lower than the first half medium materiality	H2 FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Linear distribution Reflecting subscriber declines partially offset by contractual rate increases.	$954M	down 6%	—	—
Advertising Improved from a 13% decline in the prior year, driven by strong demand across news and sports, favorable network ratings, and additional revenue from Free TV Networks acquisition.	$423M	down 0.6%	—	—
Platforms Fastest-growing part of Versant, excluding the impact of Sports Engine divestiture. Driven by momentum at Fandango and GolfNow. Tickets sold: solid growthVideo-on-demand transactions: solid growthNew cinema operating platform sales: solid growthU.S. bookings (GolfNow): increasedPayments processed (GolfNow): increasedGolfPass subscriptions: increased	$225M	up 9%	—	—
Content licensing and other Follows a sharp uptick in Q1. This category can fluctuate based on timing of licensing agreements.	$43M	flat	—	—

Product announcements

Product	Type	Timeline
Fandango AVOD service	launch	a few weeks ago
MS NOW direct-to-consumer experience	launch	ahead of the midterm elections
CNBC next-generation digital platform	roadmap	—
Bundesliga coverage on Fandango and USA Network	launch	Beginning this season

Deals & partnerships

Full Swing Acquisition of a leading sports technology company specializing in immersive off-course golf experiences.

Expands Versant's golf portfolio with interactive offerings like simulation, launch monitors, and virtual greens. Full Swing's technology is also used in baseball.

Bundesliga 5-year agreement for broadcasting rights to one of Europe's renowned soccer leagues. 5 years

Will broadcast more than 300 live matches annually, with premium matches on USA Network and all remaining matches streaming for free on Fandango.

2 large Pay TV distribution partners Multiyear renewals of distribution agreements for Versant's TV portfolio. multiyear

One renewal in the U.S. and one in Canada. Negotiations were similar to past experiences, focusing on the value and strength of Versant's brands.

Risks & headwinds

Linear distribution subscriber declines Q2 FY26

Linear distribution revenue down 6% YoY to $954M.

Mitigation:Mitigated by contractual rate increases and strategic distribution renewals; investing in digital platforms and D2C offerings.

Increased programming and production costs H2 FY26

Second half programming costs expected to increase year-over-year, impacting Q3 and Q4 adjusted EBITDA growth.

Mitigation:Focused on disciplined expense management and identifying efficiencies across the organization.

Higher capital expenditures H2 FY26

Higher CapEx anticipated in the second half of the year, largely associated with construction at the New York office facility, impacting second half free cash flow.

Mitigation:Business model delivers strong cash conversion on an annual run rate basis; strong free cash flow generation supports capital allocation priorities.

What to watch in Q3 FY26

MS NOW D2C experience launch and adoption

next quarter

Current Launch expected ahead of midterm elections

Target Details on launch, initial adoption, and engagement metrics

Why it matters

This launch is a key part of the D2C strategy to deepen audience engagement and expand reach beyond traditional Pay TV.

MS NOW, which will launch its direct-to-consumer experience ahead of the midterm elections, giving audiences new ways to engage with its host, programming and community while deepening engagement, strengthening the brand's relationships with viewers and fans.

Find out whether VSNT delivers this. Inve re-checks your case every morning.

Q&A highlights

How did affiliate negotiations differ post-Comcast, and what is the latent demand for MS NOW and CNBC D2C offerings outside of Pay TV?

Affiliate negotiations were 'business as usual,' focused on the value of Versant's brands and content. For D2C, MS NOW and CNBC have strong existing digital presences (YouTube, TikTok, websites, live events) indicating significant demand beyond traditional Pay TV subscribers, which the new D2C products will serve.

“So the strength of MS's highly engaged audience, already watching 9 hours a week, of our network, but also the size and scale of the audience that may or may not be watching us each and every day, who's interested in the point of view that MS has, I think we'll be able to have a strong marketplace as we enter it.”

asked by Peter Supino · answered by Mark Lazarus

2 min read 6 chapters

Detailed narrative

Strategic Focus and Portfolio Strength

Versant Media's Q2 FY26 results underscored the strength of its portfolio and strategy, focusing on premium live content, iconic brands, and accelerating growth across platforms. The company aims to extend audience reach and build on the foundation of its highly cash-generative brands through strategic investments.

This approach has led to double-digit audience increases across its networks and successful multiyear renewals with key Pay TV distribution partners.

Audience Engagement and Ratings Success

The quarter saw strong audience engagement across news, sports, and entertainment. CNBC ranked among the top 10 cable networks for the fourth consecutive month, achieving its highest-rated quarter in over five years, driven by events like the SpaceX IPO. MS NOW delivered its seventh consecutive month of audience growth, with viewers watching an average of nine hours weekly and generating nearly 3 billion YouTube and TikTok views year-to-date.

Golf Channel also recorded its most-watched second quarter since 2020, and USA Network maintained its position as a top 5 entertainment network.

Platform and Digital Growth Initiatives

Platforms emerged as the fastest-growing segment, with revenue increasing 9% (excluding divestiture) to $225M. Fandango is evolving into a comprehensive entertainment platform, integrating ticketing, home entertainment, and a new AVOD service, leveraging its strong brand and connected TV distribution. GolfNow achieved broad-based growth in rounds booked, course relationships, and GolfPass subscribers.

The acquisition of Full Swing further strengthens Versant's leadership in golf technology, expanding its ecosystem into immersive off-course experiences.

Direct-to-Consumer (D2C) Expansion

Versant is advancing its D2C strategies, with MS NOW launching its D2C experience ahead of the midterm elections to deepen audience engagement. CNBC is developing a next-generation digital platform that will combine trusted journalism with AI-powered investing tools, aiming to become a premier destination for investors.

These initiatives are designed to serve highly engaged audiences with content beyond traditional television, capitalizing on existing digital reach and latent demand.

Capital Allocation and Financial Discipline

The company demonstrated its commitment to returning capital to shareholders by repurchasing $100M of stock in Q2 and announcing an additional $100M accelerated share repurchase program for Q3. Year-to-date, $305M has been returned through share repurchases and dividends. Versant also continues to deploy capital into long-term growth areas, including D2C offerings and disciplined M&A like the Full Swing acquisition, while maintaining a healthy balance sheet with $1.5B in cash.

Advertising and Distribution Trends

Advertising revenue showed significant improvement, declining only 0.6% YoY compared to a 13% decline in the prior year, driven by strong demand across news and sports, favorable network ratings, and contributions from the Free TV Networks acquisition. Linear distribution revenue declined 6% YoY, reflecting subscriber trends, but was partially offset by contractual rate increases and successful renewals with major Pay TV partners, highlighting the value of Versant's content portfolio.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.