People Expects Adjusted Operating Profit of Up to $345 Million for Its Unit in 2026
Key Facts
People Incorporated issued its 2026 guidance, expecting adjusted EBITDA for its People Inc. unit to range from $330 million to $345 million, according to a filing published on November 2. At the same time, the company set its consolidated adjusted EBITDA estimate at $263 million to $283 million, and operating income at $6 million to $49 million. The guidance separates the unit’s performance from the consolidated total, with the consolidated range below the outlook for People Inc. alone. Chairman and Chief Executive Barry Diller said the company is focused on simplifying its business around People Inc. and its investment in MGM. He added: "We have ample capital, and we are well positioned to invest in our shares and pursue opportunities to create value."
The new range for People Inc. represents an increase from the guidance the company gave when it reported fourth-quarter 2025 results, when it estimated the unit’s adjusted EBITDA at $310 million to $340 million. The previous estimate for the consolidated total was $260 million to $335 million, while its current range is $263 million to $283 million. The comparison shows that both the low and high ends of the unit’s outlook increased, while the consolidated range narrowed. In the third quarter of 2026, the company posted revenue of $430.8 million, compared with $447.1 million in the same period a year earlier. Adjusted EBITDA was $54.8 million, versus $55.1 million a year earlier.
People Inc.’s digital revenue grew 2% in the third quarter to $289 million, marking its twelfth consecutive quarter of digital growth. The increase was led by non-session-based revenue, which rose 15%, while a 6% decline in session-based revenue weighed on growth. The company attributed the decline to an accelerating impact from AI-powered search and content discovery. The earnings call showed slower digital revenue growth than in the previous quarter, at 2% in the third quarter after 6% in the second quarter. The decline in session-based revenue also widened to 6%, from a 1% drop in the previous quarter.
At the Emerging & Other segment level, revenue rose 21% to $21 million in the third quarter. The company attributed the segment’s growth to a 39% increase in revenue at The Daily Beast and an 18% increase at Vivian Health. On liquidity, the company had $1.3 billion in cash and cash equivalents as of September 30, while long-term debt was $1.4 billion, an obligation of People Inc. alone. The quarterly report said $372.4 million of consolidated cash was held at People Inc. The company also said People Inc.’s consolidated net leverage ratio was within its limits for the test period ended September 30, while noting that contractual restrictions may limit access to funds if specified ratios are exceeded or a contractual default occurs.
People Inc. generated $152 million in net cash from operations during the nine months ended September 30, while free cash flow reached $127 million. The company also said it sold its limited partner interest in a third-party fund, generating net proceeds of $185 million during the third quarter. On October 29, People Inc. implemented a job reduction that it said was intended to align costs with growth priorities. The company expects to incur severance and separation benefit expenses of $15 million to $20 million in the fourth quarter. It is targeting annual operating expenses for the parent company of about $45 million on a run-rate basis, after completing the integration of corporate functions in the first quarter of 2027.
On share repurchases, the company said 12.5 million shares remained under its repurchase authorizations as of October 30. The filing states that purchases may be made in the open market or through privately negotiated transactions, depending on factors including market conditions, the share price and future outlook. This remaining authorization alone does not establish that new purchases have been made. The company’s quarterly report showed that it repurchased 3.5 million shares during the first nine months of 2026, at an average of $37.86 per share and a total cost of $132.2 million, with no shares repurchased in the third quarter. Chief Financial Officer Tim Quinn said on the earnings call that most of the cash over the short to medium term would be allocated to repurchases, and that the company intended to return to the repurchase market soon.
The stock fell 3.9% to $35.42 after the results were announced on November 2, according to a report published by TheStreet via Yahoo Finance. The company expects low- to mid-single-digit growth in People Inc.’s digital revenue in the fourth quarter of 2026, and mid-single-digit growth for the full fiscal year. The company scheduled a call to discuss third-quarter results for November 3, 2026, at 8:30 a.m. Eastern time. These quarterly projections put digital revenue trends among the key upcoming operating indicators identified by management. The company also linked its targeted cost reductions to completing the integration of corporate functions in the first quarter of 2027.