EL7.AI
StocksMedium•14 November 2026•
3 min read

Versant’s Platform Revenue Grows 17% in Third Quarter

Key Facts

1Versant’s revenue was $1.594 billion in the third quarter of 2026, down 4.2% year over year.
2Net income attributable to Versant was $47 million, down 41.1% from the prior year.
3Linear distribution revenue fell 5.8% to $935 million.
4The company maintained its 2026 revenue outlook at $6.2 billion to $6.45 billion.

Total revenue was $1.594 billion, compared with $1.663 billion, a decline of 4.2%, while net income attributable to the company fell to $47 million from $80 million, down 41.1%. The company said the increase in platform revenue was primarily tied to higher Fandango revenue, driven largely by movie ticket purchases and sales of its new cinema operating platform. The results come as linear distribution and advertising revenue continue to decline, putting platform growth alongside declines in other revenue sources in the quarterly picture. Adjusted EBITDA also fell to $353 million from $445 million, a decline of 20.9%.

Linear distribution revenue fell to $935 million in the third quarter, compared with $992 million a year earlier, down 5.8%. The company attributed the decline primarily to fewer subscribers, partly offset by higher contractual rates. The CEO said 75% of network subscribers are now contracted through 2028 and beyond. The company said these agreements provide visibility into future distribution, while it expects subscriber numbers and linear distribution revenue to continue falling. This reflects the coexistence of extended contracts with an ongoing decline in the traditional distribution base and its revenue, according to the company.

Advertising revenue fell to $373 million from $394 million, a 5.3% year-over-year decline. The company said the timing of the previous year’s Ryder Cup affected the quarterly comparison. At the same time, it cited improving recent trends and favorable network ratings, according to its disclosures. Content licensing and other revenue also fell to $41 million from $54 million, down 23.6%. The company attributed the decline primarily to the timing of licensing agreements, making the timing of some revenue a factor in the comparison between the two quarters.

The comparison in platform revenue was also affected by changes in the business portfolio during the period. Platform revenue associated with Full Swing was $23 million in the three months ended September 30, 2026, following its acquisition in August. In the corresponding period of 2025, platforms generated $35 million in revenue from SportsEngine, which was later sold. These changes limit direct comparability between the periods, alongside Fandango’s contribution to the increase in platform revenue. In digital performance, the company said MS NOW led news organizations on YouTube during the quarter, and its podcast downloads exceeded 105 million from the start of the year through November 3, 2026.

Versant maintained its 2026 revenue outlook at $6.2 billion to $6.45 billion and its adjusted EBITDA outlook at $1.90 billion to $2.05 billion. It said free cash flow would exceed its previous range of $1.0 billion to $1.2 billion. On capital returns, the company announced a quarterly cash dividend of $0.375 per share in the fourth quarter and an additional plan to repurchase $100 million of shares during the same quarter. In the third quarter, the company completed an accelerated share repurchase worth $100 million, covering about 2.6 million shares. The company’s outlook remains paired with its acknowledgment that subscribers and linear distribution revenue will continue to decline.