Versant Beats Earnings Estimates and Raises Free Cash Flow Target

Versant posted third-quarter adjusted EBITDA of $353 million, exceeding the $305 million estimate, and lifted its cash-flow outlook as digital platform revenue grew nearly 10% year over year.

Earnings per share came in at 34 cents, compared with the 5-cent analyst estimate. Total revenue was $1.59 billion, down from $1.66 billion in the year-earlier quarter. Net income declined to $47 million, or 34 cents a share, from $80 million, or 56 cents, a year earlier.

Digital platforms, including Fandango, generated $245 million in revenue. Fandango ticketing revenue reached its strongest level since the pandemic. During the quarter, Versant launched a direct-to-consumer product for MS NOW and an on-demand service from Fandango. CNBC’s direct-to-consumer product is expected next year.

Versant’s networks drew more than 120 million viewers monthly, while aggregate viewership grew by double digits year over year. Live sports remained a central audience draw, and WNBA viewership across the company’s USA Sports networks was 25% above the prior year’s cable average. Versant completed four major distribution renewals this year. CEO Mark Lazarus said, “75% of our network subscribers are now under contract into 2028 and beyond.”

Advertising revenue fell 5.3% to $373 million, with the prior year’s Ryder Cup affecting the comparison. Linear television revenue declined 5.8% to $935 million as cord-cutting and subscriber losses weighed on the segment. Versant’s $1.59 billion in total revenue also reflected the Full Swing acquisition and the SportsEngine sale.

Versant kept its 2026 revenue outlook at $6.2 billion to $6.45 billion and its adjusted EBITDA range at $1.9 billion to $2.05 billion. It now expects free cash flow to exceed its previous range of $1 billion to $1.2 billion. Executives have set a longer-term goal for digital, platform, subscription, advertising-supported and transactional businesses to contribute half of revenue. Lazarus has pointed to Versant’s brands, financial position and workforce as strengths for the transition.

The portfolio includes CNBC, MS NOW and Golf Channel. Versant separated from Comcast’s NBCUniversal earlier this year and began trading independently on Nasdaq in January. Its $100 million accelerated stock repurchase program starts Wednesday, with completion expected during the fourth quarter.