Versant beats Q3 estimates, maintains 2026 outlook as digital growth offsets ad pressure

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Versant Q3 results and outlook

Highlights

Versant reports Q3 EPS of 34 cents, beating LSEG consensus of 5 cents, with revenue at $1.59 billion and adjusted EBITDA at $353 million above estimates.
Digital platforms revenue rises nearly 10% to $245 million, driven by record Fandango ticketing and new direct-to-consumer launches across MS NOW and CNBC.
Advertising and linear TV revenue decline over 5%, but Versant initiates a $100 million accelerated stock repurchase program to be completed in Q4.

Quarterly performance and guidance update

As reported by CNBC, Versant says third-quarter earnings per share are 34 cents, ahead of the 5 cents expected by analysts surveyed by LSEG, while revenue totals $1.59 billion. The company also reaffirms its full-year revenue outlook of $6.2 billion to $6.45 billion and its adjusted EBITDA forecast of $1.9 billion to $2.05 billion, while raising its free cash flow expectation above its previous range of $1 billion to $1.2 billion.

For the period ended Sept. 30, net income stands at $47 million, or 34 cents per share, compared with $80 million, or 56 cents per share, a year earlier. Adjusted EBITDA reaches $353 million, above StreetAccount estimates of $305 million, while total revenue slips from $1.66 billion in the prior-year period.

Versant says its reported revenue includes the acquisition of golf simulation company Full Swing and the sale of sports management software company SportsEngine. The company adds that it completes four major distribution renewals this year following its spinoff from Comcast's NBCUniversal.

Digital expansion supports media portfolio

Digital platforms revenue, including Fandango, rises to $245 million, up nearly 10% from a year earlier. Versant says Fandango posts significant growth in ticketing revenue during the quarter, reaching its highest level since the pandemic, while MS NOW launches a direct-to-consumer product and CNBC is expected to launch its own direct-to-consumer offering next year.

Advertising revenue falls 5.3% to $373 million, which the company attributes primarily to the impact of last year's Ryder Cup. Revenue from linear TV declines 5.8% to $935 million as cord-cutting and subscriber losses continue to weigh on the segment.

Across its portfolio, which includes CNBC, MS NOW and Golf Channel, Versant says its networks reach more than 120 million viewers each month and aggregate viewership grows by double digits from a year earlier. Live sports remains a key audience driver, with WNBA viewership on Versant's USA Sports networks running 25% above the prior year's cable average. The company also announces an additional $100 million accelerated stock repurchase program starting Wednesday, with completion expected in the fourth quarter.

In our earlier article on the S&P 500’s push toward the 8,000 level, we noted that investors were looking to third-quarter earnings to justify lofty valuations despite headwinds such as higher oil prices, elevated Treasury yields, and political uncertainty. We also highlighted growing concentration risk, as gains were being driven by a narrow group of megacaps while market breadth weakened, leaving the index more vulnerable to any earnings disappointments.

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