People | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 436.74 M

Revenue: As of FY2026 Q2, the actual value is USD 436.74 M, beating the estimate of USD 433.29 M.

EPS: As of FY2026 Q2, the actual value is USD 6.68, beating the estimate of USD -0.316.

EBIT: As of FY2026 Q2, the actual value is USD 11.58 M.

Overall Company Performance (Q2 2026 vs. Q2 2025)

• Total revenue was $436.7 million in Q2 2026, a -1% decrease from $443.2 million in Q2 2025. Operating loss was -$14.3 million in Q2 2026, representing a -91% increase in loss from -$7.5 million in Q2 2025. Net earnings significantly increased by 140% to $506.9 million in Q2 2026, compared to $211.5 million in Q2 2025. Adjusted EBITDA grew by 15% to $55.9 million in Q2 2026, up from $48.7 million in Q2 2025. Unrealized gain on investment in MGM Resorts International increased by 135% to $721.7 million in Q2 2026, from $307.4 million in Q2 2025.

People Incorporated Segment Performance (Q2 2026 vs. Q2 2025)

• Total People Incorporated revenue decreased by -2% to $416.7 million in Q2 2026.
  • Digital revenue increased 6% to $289.9 million, with non-sessions-based revenue growing 16% (including 23% growth in Licensing and other revenue), performance marketing revenue increasing 13% (driven by 11% affiliate commerce growth), and advertising revenue remaining flat year-over-year.
  • Print revenue declined by -16% to $132.6 million.
• Total People Incorporated operating income was $33.8 million, a -3% decrease.
  • Digital operating income increased 27% to $48.7 million.
  • Print operating income decreased -58% to $4.5 million.
• Total People Incorporated Adjusted EBITDA increased 5% to $73.3 million.
  • Digital Adjusted EBITDA increased 18% to $74.5 million, with margins expanding to 26% from 23%.
  • Print Adjusted EBITDA declined -45% to $9.1 million.

Emerging & Other Segment Performance (Q2 2026 vs. Q2 2025)

• Revenue increased 26% to $20.0 million, with The Daily Beast revenue growing 53% and Vivian Health revenue growing 12%.
• Operating income increased to $2.5 million from a loss of -$9.2 million.
• Adjusted EBITDA increased by $2.7 million to $2.9 million.

Corporate Segment Performance (Q2 2026 vs. Q2 2025)

• Corporate operating loss increased by $17.6 million to -$50.6 million.
• Corporate Adjusted EBITDA losses decreased -4% to -$20.3 million.

Cash Flow (Six Months Ended June 30, 2026 vs. 2025)

• Net cash provided by operating activities attributable to continuing operations increased $90.1 million to $55.6 million.
• Free Cash Flow increased $79.1 million to $36.5 million.
• Capital expenditures were -$19.1 million in 2026, compared to -$8.2 million in 2025.

Liquidity and Capital Resources (As of June 30, 2026)

• People Incorporated had $1.1 billion in cash and cash equivalents, with $330 million held at People Incorporated.
• The company had $1.4 billion in long-term debt.
• The company owned 66.8 million shares of MGM, valued at $3.0 billion as of July 31, 2026.

Other Key Metrics

• Total Sessions decreased -23% to 1,891 million in Q2 2026, and Core Sessions decreased -22% to 1,707 million in Q2 2026.
• The income tax provision for Q2 2026 was $177.3 million, with an effective tax rate of 26%.
• The Board of Directors authorized the repurchase of an additional 10 million shares of common stock.

Full Year 2026 Outlook

People Incorporated expects total Adjusted EBITDA for fiscal year 2026 to be between $255 million and $290 million, with operating income projected to be between $15 million and $80 million. The company anticipates mid-to-high single-digit growth for both Digital revenue and Digital Adjusted EBITDA in the People Incorporated segment.