People Incorporated released its third-quarter financial results on November 2, 2026. The report showcases continued operational cash flow and digital revenue growth. However, it is juxtaposed with a significant net loss.
Digital Growth and Core Earnings
The media conglomerate reported its 12th consecutive quarter of digital revenue growth. Digital revenue increased by 2% to $288.5 million. The company posted a total operating income of $37.2 million. Furthermore, the company had a total Adjusted EBITDA of $54.8 million for the quarter.
Despite these operational gains, total revenue for the quarter was $430.8 million, representing a 4% decline compared to Q3 2025. This drop was largely attributed to a 16% decline in print revenue. That segment fell to $127.6 million as audiences and advertisers continue migrating to digital platforms.
MGM Investment and Net Loss
The quarter was heavily impacted by the company’s significant stake in MGM Resorts International. People Inc. reported a net loss of $687.5 million, a stark contrast to the $21.9 million loss in the same period last year. This widening loss was driven by a $1.1 billion unrealized loss on its investment in MGM.
Barry Diller, Chairman and Senior Executive of People Incorporated, maintained a positive outlook on the company’s core strategy. “We’re continuing the course we laid out last year: simplify the company around People Inc. and our MGM Resorts investment,” Diller said. “People Inc. continues to be a durable generator of cash flow, focused on turning the power of its brands into vibrant new businesses. Our conviction in MGM is undiminished.”
Restructuring and Cost Reductions
In a move to align the business with strategic growth priorities, People Inc. executed staffing reductions on October 29, 2026. The company expects to incur $15 million to $20 million in severance and employee separation expenses in the fourth quarter of 2026. Additionally, the company is continuing to make progress toward reducing its annual Corporate operating expenses, targeting approximately $45 million on a run-rate basis by the end of Q1 2027.
Cash Flow and Capital Allocation
People Inc. demonstrated strong liquidity, reporting year-to-date net cash from continuing operations of $105.6 million, an increase of $105.5 million from the prior year. Free Cash Flow also saw a significant boost, rising by $92.8 million to reach $80.2 million. As of September 30, 2026, the company held $1.3 billion in cash and cash equivalents and has 12.5 million shares remaining under its share repurchase authorization.
Furthermore, the company generated $185.1 million in net proceeds during the quarter from the sale of its Limited Partner stake in a third-party fund, resulting in a pre-tax gain of $174.9 million.
