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    VSNT
    Earnings call· Jun 2026(Q2 FY26)

    Versant Media Group Q2 FY26 earnings call VSNT

    Aug 6, 2026 Source

    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

    5

    • 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

    4

    • 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

    8
    CategoryTargetConfidence
    Full-year revenue
    $6.2B-$6.45B
    high materiality
    High
    Full-year adjusted EBITDA
    $1.9B-$2.05B
    high materiality
    High
    Full-year free cash flow
    $1B-$1.2B
    high materiality
    Medium
    Second half programming costs
    increase year-over-year
    medium materiality
    High
    Q3 and Q4 Adjusted EBITDA growth
    unlikely to demonstrate growth versus prior year
    medium materiality
    High
    SG&A expenses
    modest increases
    low materiality
    Medium
    Second half CapEx
    higher
    medium materiality
    High
    Second half free cash flow
    lower than the first half
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Linear distribution
    Reflecting subscriber declines partially offset by contractual rate increases.
    		$954Mdown 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.
    		$423Mdown 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
    		$225Mup 9%——
    Content licensing and other
    Follows a sharp uptick in Q1. This category can fluctuate based on timing of licensing agreements.
    		$43Mflat——

    Operational metrics

    7
    Total capital returned to shareholders
    $305M
    YTD FY26

    Reflects commitment to returning capital to shareholders.

    Share buyback
    $100M
    Q2 FY26

    Repurchased under a previously announced ASR.

    Additional accelerated share repurchase program
    $100M
    Q3 FY26

    Announced intention to commence during the third quarter.

    Net debt to adjusted EBITDA target
    1 to 5
    Long-term

    Stated as the 'North Star' for capital allocation policy.

    Off-course golfers
    38Mup >60% since 2019
    Current

    Exceeding the number who play on traditional courses, highlighting the market opportunity for Full Swing.

    Fandango/Rotten Tomatoes monthly consumers
    50M
    Monthly

    Consumers visiting either platform to decide what to watch.

    TV portfolio reach
    120M+double-digit audience increases in aggregate
    Monthly

    Monthly reach across the TV portfolio with aggregate audience increases.

    Industry KPIs

    8
    MetricValueDetails
    Total revenue$1.64BUSD
    Adjusted EBITDA$624MUSD
    CAPEX capital program—
    Total operating expenses$1.019BUSD
    Content title performance—
    Cash marketable securities$1.5BUSD
    M a integration cost synergies—
    Free cash flow operating cash flow$350MUSD

    Product announcements

    4
    ProductTypeDetails
    Fandango AVOD servicelaunch
    MS NOW direct-to-consumer experiencelaunch
    CNBC next-generation digital platformroadmap
    Bundesliga coverage on Fandango and USA Networklaunch

    Deals & partnerships

    3
    Full SwingAcquisition 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.

    Bundesliga5-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 partnersMultiyear 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

    3
    Linear distribution subscriber declinesQ2 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 costsH2 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 expendituresH2 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

    5

    MS NOW D2C experience launch and adoption

    next quarter
    CurrentLaunch expected ahead of midterm elections
    TargetDetails 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.

    Q&A highlights

    5

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.