Versant Media Group (VSNT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.69 billion, down 1.1% year-over-year, with net income of $286 million and adjusted EBITDA of $704 million, reflecting strong digital platform growth and disciplined execution as an independent company post-Comcast separation.

• Leadership positions were maintained in business news, political news, golf, and sports/entertainment, with significant audience engagement and monetization progress.

• Platforms business delivered high single-digit growth, driven by GolfNow and Fandango, while content licensing saw a boost from major agreements.

• The company completed its separation from Comcast on January 2, 2026, incurring $3.0 billion in new debt and making a $2.25 billion payment to Comcast.

• Cash flows from operations increased to $585 million, up from $478 million in Q1 2025.

Financial highlights

• Total Q1 revenue was $1.69 billion, down 1.1% year-over-year, reflecting ongoing pay TV pressure but offset by platform growth.

• Linear distribution revenue declined 7.3% to $1.01 billion; advertising revenue fell 5.2% to $368 million, a marked improvement from last year’s 12% decline.

• Platform revenue rose 9.5% to $192 million, driven by GolfNow and Fandango.

• Content licensing and other revenue surged to $121 million from $57 million, boosted by major licensing deals.

• Adjusted EBITDA was $704 million, with margin above 30%; standalone adjusted EBITDA rose 4.8% due to lower programming and SG&A costs.

Outlook and guidance

• Full-year 2026 guidance: revenue of $6.15–$6.4 billion, adjusted EBITDA of $1.85–$2.0 billion, and free cash flow of $1.0–$1.2 billion.

• Expect quarterly fluctuations due to content licensing, working capital, and higher programming costs in the second half, especially Q4.

• Management expects continued declines in linear distribution and advertising revenue due to industry trends and audience fragmentation.

• Digital platform revenue is expected to grow as investments continue in this area.

• The company anticipates higher effective tax rates in Q2 2026 due to a noncash charge from the sale of assets.