Versant revenue falls as platforms and licensing offset cable declines

Versant’s cable core kept shrinking in its first quarter as an independent company, but a sharp rise in licensing and steady growth in platforms helped the media spin-off top Wall Street’s revenue forecast. The company reported revenue of $1.69 billion for the quarter ended May 14, 2026, above analysts’ estimate of $1.62 billion, even as CNBC said revenue was down 1% because linear distribution and advertising weakened.

The pressure came from the business that still carries the most weight. Linear distribution revenue fell 7.3% as subscriber declines continued to hit the company’s pay-TV base, while advertising also lost momentum. Against that slide, Versant’s content licensing and other revenue jumped 112.3% to $121 million, helped in part by licensing select library titles such as Keeping Up with the Kardashians to Hulu. Platforms revenue rose about 9.1% to $192 million, supported by a steady box-office slate and stronger ticketing at Fandango.

The quarter also showed that some of Versant’s brands still have reach. CNBC posted its highest-rated quarter in four years, MS NOW delivered its most-watched quarter since 2024, and USA Network drew its largest Olympics audience ever during the Milan Cortina Olympics. Versant also launched Morning Call, a new early-morning CNBC program aimed at adding pre-market coverage of economic and earnings developments.

Profitability remained solid despite the mix shift. Versant said net income attributable to the company was $286 million and adjusted EBITDA was $704 million, with robust free cash flow in the quarter. The company repurchased $100 million of Class A shares under its $1 billion authorization, declared a second quarterly cash dividend of $0.375 per share and announced a planned $100 million accelerated share repurchase transaction.

The results fit a broader transition that investors are watching closely. In March, Versant said 2025 revenue fell 5.3% to nearly $6.69 billion and net income dropped 31%, with ad revenue down 8.9% and distribution revenue off about 5.4%. Digital properties including Rotten Tomatoes and Fandango rose 3.9% to $826 million, and the board authorized up to $1 billion in buybacks. Versant has also outlined plans for an MS NOW subscription product, a CNBC subscription service and a free, ad-supported Fandango streaming offering, signaling how aggressively it is trying to replace fading cable economics with platform income and licensing.