Versant shares surge 10% after company raises 2026 outlook on platforms, advertising momentum
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- Versant raised full-year 2026 guidance to $6.2–6.45 billion in revenue and $1.9–2.05 billion in adjusted EBITDA, citing momentum at digital brands Fandango and GolfNow plus broader business 'strength'.
- Versant beat Q2 Wall Street estimates on both lines: EPS of $1.49 vs. $1.35 expected, and revenue of $1.64 billion vs. $1.62 billion expected, sending shares up more than 10% in morning trading.
- Versant's linear TV revenue fell 6.3% to $954 million in the quarter due to subscriber declines, even as executives said live sports and news still capture the most viewers and ad dollars in traditional TV.
- CEO Mark Lazarus said Versant completed carriage agreements with two large distribution partners — one in the U.S. and one in Canada — a key milestone since most of its deals were inherited from the Comcast/NBCUniversal era.
- Versant aims to shift to a 50% revenue mix from digital, platform, subscription, ad-supported and transactional businesses; today more than 80% of revenue still comes from pay TV, per the company's stated strategy.
- Versant closed its acquisition of golf-simulation company Full Swing this week and earlier bought AI-powered financial-analysis platform StockStory for CNBC, alongside a recent Bundesliga media-rights deal and a free, ad-supported Fandango streaming launch.
- Versant posted net income of $211 million (down 30% YoY) on $1.49 per share, attributed to lower revenue, public-company costs, Comcast-separation interest expense and tax costs from the SportsEngine divestiture; adjusted EBITDA was $624 million, down 8.9% but up 3% on a stand-alone comparable basis.
- Versant declared a third consecutive quarterly cash dividend of 37.5 cents per share, completed a $100 million accelerated share repurchase (about 2.4 million shares) and plans a similar $100 million buyback agreement on Aug. 7, with roughly $800 million remaining under authorization.
Why it matters: Versant's stock pop masks a structural split in the business: linear TV revenue fell 6.3% to $954 million while digital platforms like Fandango and GolfNow drove the raised 2026 outlook — exactly the pivot management says it needs, given pay TV still accounts for more than 80% of revenue. Net income fell 30% YoY, so the 10%+ share rally is essentially a vote on the diversification bet, not current profitability.
