Versant Media Group, Inc. (VSNT) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Versant Media Group, Inc. became a standalone public company following its separation from Comcast Corporation on January 2, 2026. The company operates in four core markets: political news, business news, golf, and sports/genre entertainment. Key brands include USA Network, CNBC, Fandango, and Golf Channel. Financial results for the current period are presented on a consolidated basis, while prior year periods (2025) are presented on a combined basis derived from Comcast's records.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenue | $1,644 million | $1,708 million | $3,331 million | $3,415 million |
| Net Income (Attributable to Versant) | $211 million | $302 million | $497 million | $669 million |
| Diluted EPS | $1.49 | $2.09 | $3.49 | $4.64 |
| Adjusted EBITDA | $624 million | $685 million | $1,328 million | $1,442 million |
| Operating Cash Flow (YTD) | $967 million | $1,113 million | $967 million | $1,113 million |
| Total Debt (Long-term + Current) | $2,954 million | $983 million | $2,954 million | $983 million |
| Cash & Equivalents | $1,478 million | $55 million | $1,478 million | $55 million |
Note: Debt increased significantly in 2026 due to $3.0 billion in borrowings issued in connection with the Separation from Comcast.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 3.8% in Q2 and 2.4% YTD compared to 2025. Linear distribution revenue fell 6.3% (Q2) and 6.8% (YTD) due to subscriber declines, partially offset by rate increases. Advertising revenue was relatively flat (-0.6% Q2, -2.8% YTD).
- Profitability Pressure: Net income dropped 30.1% in Q2 and 25.7% YTD. This was driven by new interest expenses ($52 million in Q2, $105 million YTD) from Separation-related debt and increased Selling, General, and Administrative (SG&A) costs ($369 million Q2 vs. $355 million Q2 2025) required to operate as a standalone entity.
- Cost Management: Costs of revenue decreased 7.1% in Q2 and 4.9% YTD, primarily due to the removal of allocated Comcast costs and reductions in licensed/owned programming costs, partially offset by new sports rights agreements.
- Divestiture: The company sold its SportsEngine business in Q2 2026 for $143 million, recognizing a pre-tax loss of $20 million in the quarter and $39 million YTD.
Guidance, Outlook, and Risks
- Outlook: Management expects continued declines in linear distribution revenue due to cord-cutting trends. Advertising revenue faces headwinds from audience fragmentation and macroeconomic conditions, though digital platform growth (Fandango, GolfNow) is a positive offset.
- Capital Allocation: The company maintains a $1.0 billion share repurchase program ($800 million remaining as of June 30, 2026) and a quarterly dividend of $0.375 per share. A new $100 million Accelerated Share Repurchase (ASR) is expected to commence in August 2026.
- Recent Acquisitions: On August 3, 2026, Versant acquired Full Swing, a sports technology company, for approximately $530 million in cash.
- Risks: Key risks include the competitive landscape for sports programming, declining MVPD subscriber levels, cyber-security threats, and the company's indebtedness. The company must maintain a maximum consolidated first lien net leverage ratio of 3.50:1.00 starting in Q3 2026.
Investor Verification Checklist
- Debt Servicing: Verify the impact of the new $3.0 billion debt load on future interest coverage ratios and cash flow availability.
- Standalone Cost Structure: Confirm that SG&A expenses have stabilized post-separation and do not continue to rise as the company builds independent infrastructure.
- Linear Decline Rate: Monitor the rate of subscriber loss in linear distribution to assess the sustainability of the core revenue stream.
- Full Swing Integration: Evaluate the strategic fit and financial impact of the $530 million Full Swing acquisition announced in August 2026.
- Divestiture Impact: Assess the long-term revenue impact of the SportsEngine sale on the digital platforms segment.