People Incorporated Common Stock Q2 Earnings Call Highlights

People Incorporated Common Stock (NASDAQ:PPLI) reported continued digital revenue growth and higher profitability in its second quarter, while outlining plans to simplify its corporate structure, monetize non-core assets and invest in its core media operations and MGM holdings.

The company said digital revenue at its People Inc. operating business rose 6% year over year, marking its 11th consecutive quarter of digital growth. Digital adjusted EBITDA increased 18%, while the digital EBITDA margin expanded to 26% from 23% a year earlier.

The call also marked a leadership transition. Christopher Halpin said he would leave his executive roles after the close of business and serve as a consultant through March 2027. Neil Vogel became CEO of People Incorporated and Tim Quinn became CFO. Barry Diller remains chairman and senior executive.

Publishing growth led by non-session revenue

Vogel said the company’s strategy is centered on executing in its People Inc. media business, deploying capital in assets it knows well, including MGM and publishing, and continuing to monetize non-core holdings.

Non-session-based revenue grew 16% during the quarter, driven by Apple News, licensing agreements including artificial-intelligence partnerships, social programs, events and Decipher. Session-based revenue declined 1%, despite a 22% decline in core sessions, as the company benefited from higher advertising rates across direct-sold and programmatic advertising.

Quinn said advertising revenue was approximately flat in the quarter. Performance marketing, primarily affiliate commerce, grew 13%, while licensing revenue increased 23%. Print revenue declined 18% amid continued pressure on print advertising, although the company expects full-year print EBITDA to offset People Inc. corporate overhead.

“Our premium ad sales team” has continued to deliver performance for advertisers through campaigns that combine session-based and non-session-based assets, Quinn said. He added that the company has been able to command premium and growing ad rates despite lower web traffic.

Google search traffic represented about 21% of People Inc.’s traffic during the quarter, Quinn said, compared with roughly two-thirds historically. Vogel said the company has prepared for this shift by building new revenue sources around its brands, including social video, events, subscriptions, product offerings and content licensing.

The company reaffirmed its expectation for mid- to high-single-digit digital revenue growth for the full year.

New products, events and licensing initiatives

People Inc. highlighted several initiatives intended to contribute to growth in 2027 and beyond. The company said its Charleston Food & Wine Classic is on track to become one of its largest events. It also acquired Hot Luck, an Austin-based food and music festival aimed at Gen Z audiences, and plans a multi-city expansion in 2027.

The company is also expanding subscription offerings. In July, it launched Southern Living Insiders, a paid membership program that includes access to vintage recipes and other benefits. MyRecipes had reached 4.5 million registered users for its free product, Vogel said, and the company plans to launch a subscription app in August. A People premium subscription bundle is expected to launch in October.

People Inc. now has 47 original social video series, including programs from InStyle, People and Travel + Leisure. It also licensed a curated library of videos from several brands for Netflix’s short-form video launch.

On AI licensing, Vogel said the company sees “real momentum” as AI developers increasingly seek timely, high-quality content. People Inc. has agreements with OpenAI, Meta and Microsoft, according to Vogel, though he did not announce additional deals.

Vogel also discussed the company’s relationship with Google, saying People Inc. would like Google to separate its search and AI crawlers. He said Google’s use of a single crawler means blocking the company’s content from AI products would also block it from search, making that action impractical for now. People Inc. expects its Google-related litigation to resolve in 2027, he said.

Cash generation, portfolio actions and MGM

People Inc. generated $179 million of free cash flow over the past 12 months, Quinn said. The operating business is expected to finish the year with net leverage below three times.

The company also signed an agreement to sell its limited-partner interests in a third-party fund to private investors. The transaction is expected to close in the third quarter and generate approximately $189 million of gross cash. Halpin said the company has more than $250 million of remaining capital-loss carryforwards from the Care.com sale, which it expects will offset the gain associated with the fund-interest transaction.

Diller said the company intends to continue selling non-core assets over time. He identified Turo, The Daily Beast and Vivian as businesses that are not expected to remain part of the company over the long term, though he said the company would seek full value for those holdings.

Regarding MGM, Diller said discussions continue with the MGM special committee and their respective representatives concerning People Incorporated’s proposal to acquire shares it does not already own. He said he expects a resolution “certainly within the next 60 days,” though he cautioned that timing could change.

Diller said People Incorporated has a long-term belief in MGM’s management and business, and expects to increase its ownership either through a single transaction or gradually over time.

Guidance and corporate cost reduction

The company confirmed full-year 2026 guidance under a revised definition of adjusted EBITDA. People Inc. expects EBITDA of $325 million to $355 million, unchanged from its prior outlook after accounting for a $15 million forecasted Google litigation expense that is now excluded under the revised measure.

• People Inc. operating-business EBITDA guidance: $325 million to $355 million.
• Emerging and other EBITDA guidance: $10 million to $15 million, with the low end raised by $5 million following first-half performance at The Daily Beast and Vivian.
• Total People Incorporated 2026 EBITDA guidance: $255 million to $290 million.
• Parent corporate costs under the revised definition: $80 million for 2026.

Halpin said the corporate consolidation is expected to continue through the first quarter of 2027. Corporate costs are expected to remain near the second-quarter level in the third quarter, fall below $20 million in the fourth quarter and decline further in the first quarter of 2027. The company reaffirmed a target of $45 million in annual corporate run-rate expense after the consolidation is completed, with the second quarter of 2027 expected to be the first full quarter reflecting that structure.

About People Incorporated Common Stock (NASDAQ:PPLI)

IAC (NASDAQ: IAC) is a publicly traded holding company headquartered in New York City that builds and invests in consumer-focused internet businesses. Through its portfolio of digital media brands, online marketplaces and subscription services, IAC delivers content and connections across a range of verticals, including lifestyle, finance, home services and personal care. The company’s operations span North America and parts of Europe, where its brands reach millions of visitors each month.

In the digital publishing space, IAC’s Dotdash Meredith division develops original content and data‐driven journalism across more than a dozen specialty sites.