Market Newsdesk

AdaptHealth Corp. Announces Third Quarter 2026 Results

CONSHOHOCKEN, Pa.–(BUSINESS WIRE)–AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the third quarter ended September 30, 2026.

Third Quarter Business Highlights

• Made solid progress in the second full quarter of the Company’s exclusive capitated agreement with a large national integrated delivery network, with utilization lower than peak levels and reduced labor costs driving a sequential improvement in contract profitability.

• Cleared the Hart-Scott-Rodino waiting period for the pending sale of the Company’s Diabetes Health business for $235.0 million in cash, with the transaction on track to close in early 2027, subject to certain regulatory approvals and other customary closing conditions.

• Signed preferred-provider agreements with four health systems, and broadened its capitated portfolio through two smaller agreements with regional health plans, one new and one expanded.

• Grew registered myAPP users to more than 615,000, up approximately 88% from year-end 2025, and completed more than 12,600 patient scans with its AI-powered mask-fitting tool.

Third Quarter Results

All comparisons are to the quarter ended September 30, 2025 unless otherwise stated. The amounts presented below reflect the Company’s continuing operations, except for cash flow from operations and free cash flow, which include the cash flows from continuing operations and discontinued operations, see below for further discussion.

• Net revenue was $745.6 million compared to $672.4 million, an increase of 10.9%.

• Organic revenue growth of 12.8%, with growth across each of the Company’s reportable segments.

• Net loss attributable to AdaptHealth Corp. was $168.2 million compared to net income of $10.2 million, largely resulting from a $184.8 million pre-tax write down of goodwill.

• Adjusted EBITDA was $141.9 million compared to $146.1 million, a decrease of 2.9%.

• Cash flow from operations was $395.6 million year-to-date 2026, a decrease from $418.6 million during the comparable period in 2025, and free cash flow was $2.6 million year-to-date 2026, compared to $140.1 million during the comparable period in 2025.

Management Commentary

“In the third quarter, we delivered strong organic revenue growth and exceeded our guidance for revenue, Adjusted EBITDA and free cash flow,” said Suzanne Foster, Chief Executive Officer. “Our capitated partnership made a positive contribution to enterprise Adjusted EBITDA, driven by a tighter labor model and lower costs to serve. We also continue to move toward closing the sale of our Diabetes Health business, bringing us closer to a more focused portfolio built around Sleep Health, Respiratory Health and Wellness-at-Home. The business is stabilizing as we work through a period of transformation, and we look forward to carrying that momentum into 2027.”

Financial Outlook

The Company is revising its financial guidance for fiscal year 2026 on a continuing operations basis, which excludes the Diabetes Health business, except for free cash flow, which includes the cash flows from continuing operations and discontinued operations, as follows:

• Net revenue of $2.88 billion to $2.90 billion, from $2.85 billion to $2.89 billion

• Adjusted EBITDA of $510 million to $525 million, from $490 million to $520 million

• Free cash flow of $50 million to $75 million, from $80 million to $120 million

Conference Call

Management will host a teleconference today, Tuesday, November 3, 2026, at 8:30 am ET to discuss the results and business activities with analysts and investors.

Interested parties may participate in the call by dialing:

• 800-274-8461 (Domestic) or

• 203-518-9814 (International)

When prompted, reference Conference ID:AHCO3Q26

Webcast registration: Click Here

Following the live call, a replay will be available for six months on the Company’s website, www.adapthealth.com, under “Investor Relations.”

About AdaptHealth Corp.

AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under three reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, and (iii) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment.

In July 2026, AdaptHealth entered into a definitive agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments. As a result of this transaction, the Diabetes Health business met the criteria to be reported as discontinued operations. Therefore, AdaptHealth has reported the results of the Diabetes Health business, including the results of operations, and related assets and liabilities, as discontinued operations for all periods presented herein.

The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.8 million patients annually in all 50 states through its network of approximately 660 locations in 48 states.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company’s acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company’s customers’ preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Use of Non-GAAP Financial Information and Financial Guidance

The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, free cash flow and organic revenue, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company’s ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA.

The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company’s financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.

The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company’s competitors and to measure the ability of companies to service their debt. The Company’s presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.

Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.

The Company uses organic revenue, which is a financial measure that is not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that it is useful to investors, as a supplement to U.S. GAAP measures. The change in net revenue from organic revenue is reported as organic revenue as a percentage of prior period total reported net revenue. Management believes organic revenue is meaningful to investors as it provides appropriate visibility into how the Company changes organically—that is, within its existing operations using its own resources.

Organic revenue is defined as all changes in reported net revenues from the comparable period presented, excluding: (1) increases in net revenue in the current period from acquisitions attributable to businesses and/or assets the Company has owned for less than one year based on the month of acquisition. This excludes the acquisition of assets from previous providers to facilitate the transition of patients related to newly awarded at-risk capitated contracts, since the revenue related to these agreements is earned organically; and (2) decreases in net revenue from dispositions existing in the prior period from divested product lines, services, and/or businesses for which there is no revenue recognized in the current period.

This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.

In addition, the Company’s financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.

Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)		September 30, 2026			December 31, 2025
Assets
Current assets:
Cash		$	80,687		$	106,136
Accounts receivable			395,866			370,897
Inventory			111,897			114,893
Prepaid and other current assets			73,508			100,619
Current assets held for sale – discontinued operations			177,131			36,354
Total current assets			839,089			728,899
Equipment and other fixed assets, net			646,895			503,193
Operating lease right-of-use assets			121,244			111,968
Finance lease right-of-use assets			39,366			52,300
Goodwill			2,158,313			2,457,627
Identifiable intangible assets, net			29,902			35,774
Deferred income taxes, net			302,997			267,786
Other assets			62,903			19,119
Noncurrent assets held for sale – discontinued operations			—			139,911
Total Assets		$	4,200,709		$	4,316,577
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses		$	600,674		$	553,700
Current portion of long-term debt			16,250			20,313
Current portion of operating lease obligations			36,543			30,728
Current portion of finance lease obligations			18,281			17,702
Contract liabilities			67,182			59,339
Other liabilities			5,305			30,106
Liabilities held for sale – discontinued operations			580			504
Total current liabilities			744,815			712,392
Long-term debt, less current portion			1,867,607			1,715,983
Operating lease obligations, less current portion			90,173			85,470
Finance lease obligations, less current portion			21,076			32,604
Other long-term liabilities			243,805			243,804
Total Liabilities			2,967,476			2,790,253
Total Stockholders’ Equity			1,233,233			1,526,324
Total Liabilities and Stockholders’ Equity		$	4,200,709		$	4,316,577

Consolidated Statements of Operations (Unaudited)
	Three Months Ended							Nine Months Ended
	September 30,							September 30,
(in thousands, except per share data)	2026				2025			2026				2025
Net revenue	$	745,648			$	672,367		$	2,165,828			$	1,974,014
Costs and expenses:
Cost of net revenue		630,841				533,849			1,851,183				1,594,130
General and administrative expenses		88,661				88,143			278,638				268,301
Depreciation and amortization, excluding patient equipment depreciation		9,316				7,002			24,433				21,330
Goodwill impairment		184,751				—			328,987				—
Total costs and expenses		913,569				628,994			2,483,241				1,883,761
Gain on sale of businesses		—				—			(6,269	)			(32,225	)
Gain on deconsolidation of subsidiary		(12,002	)			—			(12,002	)			—
Operating (loss) income		(155,919	)			43,373			(299,142	)			122,478
Interest expense, net		28,600				25,380			80,403				81,312
Loss on extinguishment of debt		—				—			1,322				—
(Loss) income from continuing operations before income taxes		(184,519	)			17,993			(380,867	)			41,166
Income tax (benefit) expense		(17,494	)			6,519			(45,886	)			36,813
Net (loss) income from continuing operations		(167,025	)			11,474			(334,981	)			4,353
Net income from discontinued operations, net of tax		14,259				14,276			34,623				31,146
Net (loss) income		(152,766	)			25,750			(300,358	)			35,499
Income attributable to noncontrolling interest		1,221				1,241			3,598				3,523
Net (loss) income attributable to AdaptHealth Corp.	$	(153,987	)		$	24,509		$	(303,956	)		$	31,976
Weighted average common shares outstanding – basic		136,396				135,345			136,101				135,048
Weighted average common shares outstanding – diluted		136,396				137,211			136,101				137,102
Basic net (loss) income per share:
Continuing operations	$	(1.23	)		$	0.07		$	(2.49	)		$	0.01
Discontinued operations		0.10				0.10			0.25				0.21
Basic net (loss) income per share	$	(1.13	)		$	0.17		$	(2.24	)		$	0.22
Diluted net (loss) income per share:
Continuing operations	$	(1.23	)		$	0.07		$	(2.49	)		$	0.01
Discontinued operations		0.10				0.10			0.25				0.21
Diluted net (loss) income per share	$	(1.13	)		$	0.17		$	(2.24	)		$	0.22

Consolidated Statements of Cash Flows (Unaudited)
		Nine Months Ended September 30,
(in thousands)		2026				2025
Cash flows from operating activities:
Net (loss) income		$	(300,358	)		$	35,499
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization, including patient equipment depreciation			343,665				284,421
Goodwill impairment			328,987				—
Equity-based compensation			13,254				16,738
Reduction in the carrying amount of operating lease right-of-use assets			32,050				22,946
Reduction in the carrying amount of finance lease right-of-use assets			14,909				10,942
Deferred income tax (benefit) expense			(33,424	)			47,167
Loss on extinguishment of debt			1,322				—
Amortization of deferred financing costs			5,369				4,437
Gain on deconsolidation of subsidiary			(12,002	)			—
Gain on sale of businesses			(6,269	)			(32,225	)
Other			1,472				3,000
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable			(24,969	)			22,142
Inventory			(4,948	)			(9,749	)
Prepaid and other assets			26,743				(75,059	)
Operating lease obligations			(30,809	)			(23,474	)
Operating liabilities			40,621				111,802
Net cash provided by operating activities			395,613				418,587
Cash flows from investing activities:
Purchases of equipment and other fixed assets			(392,981	)			(278,492	)
Payments for business acquisitions, net of cash acquired			(127,422	)			(18,561	)
Proceeds from the sale of businesses, net of cash disposed			6,269				117,175
Proceeds from the sale of assets			1,439				—
Investment in joint venture			(2,000	)			—
Receipt of contingent consideration from the sale of assets			—				1,156
Net cash used in investing activities			(514,695	)			(178,722	)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt and lines of credit			900,000				—
Repayments on long-term debt and lines of credit			(755,031	)			(225,000	)
Repayments of finance lease obligations			(12,925	)			(12,179	)
Proceeds received in connection with employee stock purchase plan			1,338				1,210
Payments relating to the Tax Receivable Agreement			(26,846	)			(25,045	)
Payments of debt financing costs			(5,444	)			—
Distributions to noncontrolling interests			(3,821	)			(5,426	)
Payments for tax withholdings from vesting of restricted stock units and stock option exercises			(3,427	)			(2,604	)
Payments of deferred purchase price from acquisitions			(211	)			(211	)
Net cash provided by (used in) financing activities			93,633				(269,255	)
Net decrease in cash			(25,449	)			(29,390	)
Cash at beginning of period			106,136				109,747
Cash at end of period		$	80,687			$	80,357

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

This press release presents AdaptHealth’s EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025.

AdaptHealth defines EBITDA as net income (loss) from continuing operations, plus interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient depreciation.

AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, goodwill impairment, gain on deconsolidation of subsidiary, gain on sale of businesses, restructuring expenses, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.

The following unaudited table presents the reconciliation of net income (loss) from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for the three months ended September 30, 2026 and 2025:

		Three Months Ended September 30,
		2026							2025
(in thousands, except percentages)		Dollars				Revenue Percentage			Dollars			Revenue Percentage
		(Unaudited)
Net (loss) income from continuing operations		$	(167,025	)		(22.4	)%		$	11,474		1.7	%
Interest expense, net			28,600			3.8	%			25,380		3.8	%
Income tax (benefit) expense			(17,494	)		(2.3	)%			6,519		1.0	%
Depreciation and amortization, including patient equipment depreciation			116,800			15.7	%			92,228		13.7	%
EBITDA			(39,119	)		(5.2	)%			135,601		20.2	%
Equity-based compensation expense (a)			986			0.1	%			5,191		0.8	%
Goodwill impairment (b)			184,751			24.8	%			—		—	%
Gain on deconsolidation of subsidiary (c)			(12,002	)		(1.6	)%			—		—	%
Other non-recurring expenses, net (d)			7,288			0.9	%			5,298		0.7	%
Adjusted EBITDA		$	141,904			19.0	%		$	146,090		21.7	%
Adjusted EBITDA Margin						19.0	%					21.7	%

	(a)		Represents equity-based compensation expense for awards granted to employees and non-employee directors.
	(b)		Represents non-cash goodwill impairment charges as a result of the fair values of the Company’s Respiratory Health and Wellness at Home reporting units being less than their respective carrying values.
	(c)		Represents a pre-tax gain associated with the deconsolidation of the Company’s former wholly-owned eCommerce subsidiary.
	(d)		The 2026 period consists of $5.1 million of consulting expenses associated with asset dispositions, $1.6 million of severance related to the Company’s former Chief Financial Officer, and $0.6 million of other non-recurring expenses. The 2025 period consists of $1.7 million of consulting expenses associated with a reorganization project, $1.2 million write-off of assets, $0.6 million of consulting expenses associated with asset dispositions, and $1.8 million of other non-recurring expenses.

The following unaudited table presents the reconciliation of net income (loss) from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for the nine months ended September 30, 2026 and 2025:

		Nine Months Ended September 30,
		2026							2025
(in thousands, except percentages)		Dollars				Revenue Percentage			Dollars				Revenue Percentage
		(Unaudited)
Net (loss) income from continuing operations		$	(334,981	)		(15.5	)%		$	4,353			0.2	%
Interest expense, net			80,403			3.7	%			81,312			4.1	%
Income tax (benefit) expense			(45,886	)		(2.1	)%			36,813			1.9	%
Depreciation and amortization, including patient equipment depreciation			332,483			15.4	%			268,094			13.6	%
EBITDA			32,019			1.5	%			390,572			19.8	%
Equity-based compensation expense (a)			12,750			0.6	%			16,393			0.8	%
Goodwill impairment (b)			328,987			15.2	%			—			—	%
Gain on deconsolidation of subsidiary (c)			(12,002	)		(0.6	)%			—			—	%
Gain on sale of businesses (d)			(6,269	)		(0.3	)%			(32,225	)		(1.6	)%
Restructuring expenses (e)			6,070			0.3	%			—			—	%
Loss on extinguishment of debt (f)			1,322			0.1	%			—			—	%
Litigation settlement expense (g)			500			—	%			—			—	%
Other non-recurring expenses, net (h)			15,085			0.7	%			20,439			1.0	%
Adjusted EBITDA		$	378,462			17.5	%		$	395,179			20.0	%
Adjusted EBITDA Margin						17.5	%						20.0	%

	(a)		Represents equity-based compensation expense for awards granted to employees and non-employee directors.
	(b)		Represents non-cash goodwill impairment charges as a result of the fair values of the Company’s Respiratory Health and Wellness at Home reporting units being less than their respective carrying values.
	(c)		Represents a pre-tax gain associated with the deconsolidation of the Company’s former wholly-owned eCommerce subsidiary.
	(d)		Represents pre-tax gains associated with the dispositions of two businesses within the Company’s Wellness at Home segment.
	(e)		Represents expenses related to a cost savings plan that was implemented in June 2026.
	(f)		Represents third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company’s credit agreement.
	(g)		Represents an estimated expense to settle a shareholder derivative complaint.
	(h)		The 2026 period consists of $9.3 million of consulting expenses associated with asset dispositions, $2.1 million of transaction costs associated with acquisitions, $1.6 million of severance related to the Company’s former Chief Financial Officer, and $2.1 million of other net non-recurring expenses. The 2025 period consists of $9.8 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $2.3 million of consulting expenses associated with systems implementation activities, $1.7 million of consulting expenses associated with a reorganization project, $1.4 million of transaction costs associated with acquisitions, $1.2 million write-off of assets, and $4.0 million of other non-recurring expenses.

Free Cash Flow

This press release presents AdaptHealth’s free cash flow for the three and nine months ended September 30, 2026 and 2025.

AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets.

The following unaudited table reconciles net cash provided by operating activities to free cash flow for the three and nine months ended September 30, 2026 and 2025:

		Three Months Ended								Nine Months Ended
(in thousands)		September 30,								September 30,
		2026				2025				2026				2025
Net cash provided by operating activities		$	156,589			$	161,066			$	395,613			$	418,587
Purchases of equipment and other fixed assets			(105,525	)			(94,242	)			(392,981	)			(278,492	)
Free cash flow		$	51,064			$	66,824			$	2,632			$	140,095

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261103608966/en/

AdaptHealth Corp.

Harriss T. Currie

Chief Financial Officer

Luke Montgomery, CFA

Senior Vice President, Investor Relations

[email protected]

KEYWORDS: United States North America Pennsylvania

INDUSTRY KEYWORDS: Apps/Applications Technology Medical Devices Medical Supplies Health Technology Telemedicine/Virtual Medicine Managed Care Health Artificial Intelligence

MEDIA:

Posted on November 3, 2026 8:05 am

Versant Media Reports Third Quarter 2026 Operating and Financial Results

Versant Media Reports Third Quarter 2026 Operating and Financial Results

• Revenue of $1.59 Billion
• Net Income Attributable to Versant of $47 Million
• Adjusted EBITDA of $353 Million¹
• Declared Fourth Quarterly Cash Dividend of $0.375 Per Share
• Completed $100 Million Accelerated Share Repurchase (ASR) Transaction
• Announced an Additional Planned $100 Million ASR in the Fourth Quarter of 2026

NEW YORK–(BUSINESS WIRE)–
Versant Media Group, Inc. (Nasdaq: VSNT) (the “Company”) today reported operating and financial results for the third quarter of 2026, highlighted by strong performance across its businesses, including favorable network audience trends, double-digit Platforms revenue growth and significant cash flow generation.

“Versant’s momentum continues, with audience growth and the completion of all planned pay television distribution renewals for the year, underscoring the value and enduring appeal of our brands,” said Mark Lazarus, Chief Executive Officer. “In the third quarter, we advanced Fandango’s evolution into a comprehensive entertainment platform, integrated Full Swing into our golf ecosystem, and launched MS NOW Membership to connect directly with our audiences. We’re building deeper consumer relationships, expanding our reach and creating new opportunities for growth and monetization across our four core markets.”

“Our third quarter performance demonstrates the financial discipline and flexibility that underpins Versant’s strategy,” said Anand Kini, Chief Financial Officer and Chief Operating Officer. “We delivered strong Platforms revenue, continued operating efficiencies and significant cash flow. Looking ahead, we are reaffirming our full-year revenue and Adjusted EBITDA¹ outlook, and we expect Free Cash Flow¹ to exceed our prior $1.0 to $1.2 billion forecast. We believe that our ability to invest in growth, maintain a healthy balance sheet, and return capital to shareholders is a distinct advantage. With $457 million already returned to shareholders to date, this morning’s announcement of an additional planned $100 million ASR, along with the declaration of our quarterly dividend, underscores our commitment to delivering shareholder value.”

________________________________

1 Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. Further information and reconciliations to the most comparable GAAP measures, as well as explanations as to why reconciliations are not provided for forward-looking information, can be found under Table 4 below.

Business Highlights: In the third quarter of 2026, Versant’s networks reached more than 120 million viewers monthly, while aggregate viewership grew double digits year over year. The Company expanded its digital offerings, launching MS NOW Membership and advancing development of CNBC’s direct-to-consumer platform. Fandango recorded significant growth across ticketing, with home entertainment sales and Fandango1 also contributing to third-quarter performance, while the Company continued to expand its golf ecosystem with the addition of Full Swing.

Business News and Personal Finance: CNBC reinforced its position as the leading global business news brand, ranking among the top 10 most-watched cable networks during market hours for the eighth consecutive month across key demographics. The network remained the destination for CEOs and business leaders to share their perspectives on the issues shaping markets and the economy. CNBC also advanced plans to launch its new digital offering early next year.

Political News and Opinion: MS NOW delivered double-digit year-over-year viewership growth across key demographics, ranking as the second-most-watched cable network during the quarter and recording its eleventh consecutive month of audience growth in September. Digital engagement remained healthy, with MS NOW ranking as the No. 1 news organization on YouTube during the quarter and generating more than 105 million podcast downloads year to date. The network also launched its direct-to-consumer membership platform ahead of the midterm elections, creating new ways to engage audiences beyond television.

Golf: Golf Channel continued to build on its leadership position in the third quarter, delivering its most-watched PGA TOUR season since 2018. Audience reach, time spent viewing and viewing frequency for the PGA TOUR on Golf Channel all increased year over year, reflecting solid demand for premium live golf and the continued strength of the Golf Channel brand. Versant continued to integrate Full Swing into its golf ecosystem during the quarter, creating more ways to engage golfers across consumer and commercial markets.

Sports and Genre Entertainment: Live sports continued to drive robust audience engagement, with USA Network ranking among the top five cable entertainment networks across key demographics. Viewership of the WNBA’s inaugural season on USA increased 25% compared to the prior year’s cable average. Entertainment programming also delivered strong viewership among key demographics throughout the quarter.

Platforms: Platforms revenue grew 10% in the third quarter, or 17% excluding the impacts of the SportsEngine divestiture and Full Swing acquisition. Fandango delivered significant growth in ticketing, while home entertainment sales and Fandango1 also contributed to its third-quarter performance.

Third Quarter 2026 Financial Results

	Three Months Ended September 30,
	2026			2025			Change
	(in millions)
Revenue:
Linear distribution	$	935		$	992		(5.8	%)
Advertising		373			394		(5.3	%)
Platforms		245			224		9.6	%
Platforms (excluding SportsEngine and Full Swing)1		222			189		17.4	%
Content licensing and other		41			54		(23.6	%)
Total revenue	$	1,594		$	1,663		(4.2	%)
Total revenue (excluding SportsEngine and Full Swing)1	$	1,569		$	1,627		(3.5	%)
Net income attributable to Versant	$	47		$	80		(41.1	%)
Adjusted EBITDA2	$	353		$	445		(20.9	%)
Standalone Adjusted EBITDA2				$	381		(7.4	%)

________________________________
1	Platforms (excluding SportsEngine and Full Swing) and Total revenue (excluding SportsEngine and Full Swing) are non-GAAP financial measures and have been included for comparative purposes only. For the three months ended September 30, 2025, Platforms revenue related to SportsEngine totaled $35 million and Total revenue related to SportsEngine totaled $36 million. For the three months ended September 30, 2026, Platforms revenue related to Full Swing was $23 million and Total revenue related to Full Swing was $24 million. We believe, among other things, these measures may help investors evaluate our ongoing operations and can assist in making meaningful period-over-period comparisons given that the divestiture of SportsEngine was completed during the second quarter of 2026 and the acquisition of Full Swing was completed during the third quarter of 2026.
2	Adjusted EBITDA and Standalone Adjusted EBITDA are non-GAAP financial measures. Standalone Adjusted EBITDA and growth rate of Adjusted EBITDA compared to Standalone Adjusted EBITDA have been included for comparative purposes only. Further information and reconciliations to the most comparable GAAP measures can be found under Table 4 below.

Total Revenue was $1,594 million, representing a decline of 4.2% compared to the same period in 2025. Excluding the impact of SportsEngine and Full Swing, revenue decreased 3.5%.

• Linear Distribution revenue declined 5.8% in the third quarter of 2026 as compared to the same period in 2025, primarily due to subscriber declines, which were partially offset by contractual rate increases.
• Advertising revenue declined 5.3% in the third quarter of 2026 as compared to the same period in 2025, reflecting the event timing impact of the Ryder Cup in the prior year. The current quarter continues to reflect improvements in recent trends including favorable ratings at the networks as well as incremental revenue from a recent acquisition.
• Platforms revenue increased 9.6% in the third quarter of 2026 as compared to the same period in 2025, or 17.4% excluding the impact of SportsEngine and Full Swing. The increase was primarily due to higher revenue at Fandango, largely driven by movie ticket purchases and sales from our new cinema operating platform.
• Content licensing and other revenue decreased in the third quarter of 2026 as compared to the same period in 2025, primarily due to the timing of content licensing agreements.

Net income attributable to Versant was $47 million, adecrease of$33 million compared to the prior year quarter, primarily due to lower revenue and public company costs and interest expense following the separation from Comcast, partially offset by a prior year impairment loss on one of our investments, which also resulted in a higher provision for income taxes in the prior year period.

Adjusted EBITDA² was $353 million, a decrease of 20.9% compared to the prior year quarter. Compared to Standalone Adjusted EBITDA in the prior year quarter, Adjusted EBITDA decreased 7.4%. This decrease reflects lower revenue, partially offset by lower entertainment programming costs, and reduced selling, general and administrative costs. Programming costs in the current year reflect costs related to additional sports rights compared to the prior year period, which are generally more significant in the third and fourth quarters due to the timing of events.

Net cash provided by operating activities was $346 million and Free Cash Flow²was $302 million in the third quarter of 2026.

2026 Financial Outlook

Based on year-to-date performance and expectations for the remainder of the year, the Company reaffirms its full-year 2026 outlook for revenue and Adjusted EBITDA, and now anticipates Free Cash Flow to exceed our prior forecast:

• Total Revenue:Reaffirmed outlookof $6.2 billion to $6.45 billion
• Adjusted EBITDA²: Reaffirmed outlook of $1.90 billion to $2.05 billion
• Free Cash Flow²: Expected to exceed the prior $1.0 billion to $1.2 billion range

Dividends and Share Repurchase Program

On November 3, 2026, the Board of Directors declared the fourth quarterly cash dividend of $0.375 per share, payable on January 25, 2027, to shareholders of record as of the close of business on January 4, 2027.

During the third quarter of 2026, the Company repurchased $100 million of its Class A common stock under an accelerated share repurchase (ASR) agreement, representing approximately 2.6 million shares. Approximately $700 million remained available under the Company’s stock repurchase program as of September 30, 2026.

The Company expects to enter into an ASR agreement commencing November 4, 2026, to repurchase $100 million of its Class A common stock under the Company’s stock repurchase program. The Company anticipates completing the transaction during the fourth quarter of 2026.

Basis of Presentation

The interim condensed consolidated and combined financial statements have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC.

________________________________

2 Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. Further information and reconciliations to the most comparable GAAP measures, as well as explanations as to why reconciliations are not provided for forward-looking information, can be found under Table 4 below.

For the prior year periods presented in the combined financial statements before our separation from Comcast on January 2, 2026 (the “Separation”) included in this report, the Versant businesses operated as part of Comcast’s Media segment. As such, the prior year combined financial statements were derived from Comcast’s historical accounting records as if Versant operations had been conducted independently from Comcast, and reflect our assets, liabilities, revenues and expenses on a historical cost basis. The prior year historical financial statements were prepared using allocations and carve-out methodologies for the periods prior to the Separation, using assumptions that management believed to be reasonable. Accordingly, the combined financial statements herein for periods prior to the Separation from Comcast may not be indicative of our future performance, do not necessarily include the actual expenses that would have been incurred by us, and may not reflect our results of operations, financial position, and cash flows had we been a separate, standalone company during the historical periods presented.

Numerical information in this report is presented on a rounded basis using actual amounts. Minor differences in totals and percentage calculations may exist due to rounding.

Conference Call and Other Information

The Company will host a conference call on November 3, 2026, at 8:00 a.m. ET. A live webcast of the call and related presentation materials will be available on the Company’s Investor Relations website at www.versantmedia.com/investors. Following the conference call, an audio replay will also be made available on the Investor Relations website.

For additional information about Versant, including SEC filings, please visit the Investor Relations website at www.versantmedia.com/investors or www.versantmedia.com.

Caution Concerning Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “would,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “opportunity,” “strategy,” “future,” “goal,” “outlook,” “commit,” or “continue,” the negative of these terms and other comparable terminology. These statements are only predictions based on our current expectations and projections about future events and reflect our beliefs regarding such future events and do not represent historical facts or statements of current condition. In evaluating these statements, readers should consider various factors, including the risks and uncertainties we describe in the “Risk Factors” sections of our most recent Annual Report on Form 10-K, and other reports filed with the Securities and Exchange Commission (SEC). Factors that could cause our actual results to differ materially from these forward-looking statements include changes in and/or risks associated with: the ability to deliver benefits of acquisitions and divestitures; the competitive environment; consumer behavior; distribution agreements; the advertising market; our brands and reputation; consumer acceptance of our content; growth of our digital platforms; use and protection of our intellectual property; cyber-attacks or incidents, information or security breaches or technology disruptions; weak economic conditions; personnel; labor disputes; laws and regulations; network rebrands; adverse decisions in litigation or governmental investigations; investments and acquisitions; our separation from Comcast Corporation; obligations associated with being a public company; our indebtedness; and other risks described from time to time in reports and other documents we file with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. The amount and timing of any dividends and share repurchases are subject to business, economic and other relevant factors.

About Versant Media Group, Inc.

Versant Media Group, Inc. (Nasdaq: VSNT) is an industry-changing media and entertainment business and home to trusted brands that shape culture, inform audiences, and build lasting connections. It operates across four core markets: political news and opinion; business news and personal finance; golf; and sports and genre entertainment. These markets are served through a powerful portfolio of iconic and innovative brands, including CNBC, MS NOW, USA Network, Golf Channel, Oxygen, E!, SYFY, USA Sports, Fandango, Rotten Tomatoes, GolfNow, GolfPass and Full Swing. Visit www.versantmedia.com for more information.

TABLE 1
Condensed Consolidated and Combined Statements of Income
(Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
	(in millions, except per share data)
Revenue	$	1,594			$	1,663			$	4,925			$	5,078
Costs and expenses
Costs of revenue (exclusive of depreciation and amortization)		879				873				2,167				2,227
Selling, general and administrative		362				372				1,082				1,034
Depreciation and amortization		243				255				757				744
Total costs and expenses		1,483				1,499				4,006				4,005
Operating income		110				164				919				1,073
Interest expense		(53	)			—				(157	)			—
Investment and other income (loss), net		8				(39	)			25				(40	)
Income before income taxes		66				124				787				1,033
Income tax expense		(19	)			(45	)			(243	)			(283	)
Net income		47				79				544				749
Less: Net loss attributable to noncontrolling interests		—				(1	)			—				—
Net income attributable to Versant	$	47			$	80			$	544			$	749
Basic earnings per common share attributable to Versant shareholders	$	0.34			$	0.56			$	3.86			$	5.19
Diluted earnings per common share attributable to Versant shareholders	$	0.34			$	0.56			$	3.85			$	5.19

TABLE 2
Condensed Consolidated and Combined Statements of Cash Flows
(Unaudited)
	Nine Months Ended September 30,
	2026				2025
	(in millions)
Operating Activities
Net income	$	544			$	749
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		757				744
Share-based compensation		49				21
Noncash interest expense		8				—
Net loss on investment activity and other		3				41
Deferred income taxes		(108	)			(94	)
Changes in operating assets and liabilities:
Current and noncurrent receivables, net		(392	)			48
Content costs, net		84				63
Accounts payable		52				(7	)
Other operating assets and liabilities		316				(20	)
Net cash provided by operating activities		1,313				1,546
Investing Activities
Capital expenditures		(103	)			(121	)
Acquisitions of businesses		(696	)			—
Purchase of investments		(110	)			—
Proceeds from sale of business		140				—
Return of capital from investments		60				—
Other		—				35
Net cash used in investing activities		(709	)			(86	)
Financing Activities
Proceeds from borrowings		1,973				—
Repurchases of common stock under repurchase program and employee plans		(300	)			—
Dividends paid		(106	)			—
Net transfers to Comcast		(2,250	)			(1,401	)
Repayment of long-term debt		(30	)			—
Settlement payment from NBCUniversal		70				—
Other		(2	)			(12	)
Net cash used in financing activities		(645	)			(1,413	)
Increase (decrease) in cash, cash equivalents and restricted cash		(41	)			48
Cash and cash equivalents and restricted cash, beginning of year		1,092				8
Cash and cash equivalents, end of period	$	1,051			$	56

TABLE 3
Condensed Consolidated and Combined Balance Sheets
(Unaudited)
	September 30,			December 31,
	2026			2025
	(in millions)
Assets
Current Assets:
Cash and cash equivalents	$	1,051		$	55
Restricted cash		—			1,034
Receivables, net		1,241			1,151
Assets held for sale		—			196
Other current assets		201			66
Total current assets		2,493			2,502
Content costs		570			539
Investments		262			214
Property and equipment, net of accumulated depreciation of $656 million and $615 million		463			423
Intangible assets, net of accumulated amortization of $9,384 million and $8,848 million		482			924
Goodwill		8,127			7,611
Other noncurrent assets, net		258			120
Total assets	$	12,656		$	12,333
Liabilities and Equity
Current Liabilities:
Accounts payable	$	224		$	151
Deferred revenue		97			163
Accrued content obligations		226			105
Accrued employee costs		153			62
Current portion of long-term debt		113			—
Accrued expenses and other current liabilities		383			141
Total current liabilities		1,196			622
Deferred income taxes		152			191
Noncurrent content obligations		60			72
Long-term debt		2,813			983
Other noncurrent liabilities		288			63
Commitments and contingencies
Equity:
Preferred stock, no par value — authorized 20 million shares; none issued as of September 30, 2026		—			—
Class A common stock, $0.01 par value — authorized 7.5 billion shares; issued and outstanding 136,247,945 shares as of September 30, 2026		1			—
Class B common stock, $0.01 par value — authorized 75 million shares; issued and outstanding 377,775 shares as of September 30, 2026		—			—
Additional paid-in capital		7,637			—
Retained earnings		382			—
Net Comcast investment		—			10,299
Accumulated other comprehensive income (loss)		16			(7	)
Total equity attributable to Versant		8,037			10,292
Noncontrolling interests		110			110
Total equity		8,147			10,402
Total liabilities and equity	$	12,656		$	12,333

TABLE 4

Supplemental Disclosures Regarding Non-GAAP Financial Measures

We evaluate our operating performance based on several factors, including the following non-GAAP financial measures:

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure and is a key measure used to assess the operational strength and performance of our business as well as to assist in the evaluation of underlying trends in our business. This measure eliminates the significant level of noncash depreciation and amortization expense that results from property and equipment and intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the impacts of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our operating performance and to allocate resources. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

We define Adjusted EBITDA as net income attributable to Versant before net income (loss) attributable to noncontrolling interests, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may make adjustments to Adjusted EBITDA for the impact of certain other events, gains, losses or other charges that affect the period-to-period comparability of our operating performance. Reconciliations of Adjusted EBITDA to the nearest GAAP measures for historical periods are presented below. A reconciliation for full-year 2026 outlook cannot be provided without unreasonable efforts because of the inherent difficulty in forecasting certain amounts that are necessary for such reconciliations due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Forward-looking estimates are made in a manner consistent with the relevant definitions noted herein.

Standalone Adjusted EBITDA

Standalone Adjusted EBITDA is a non-GAAP financial measure used in periods prior to the Separation to measure the operational strength and performance of our business as well as to assist in the evaluation of underlying trends in our business. Consistent with Adjusted EBITDA, this measure eliminates noncash depreciation and amortization expense and is unaffected by our capital and tax structures and by our investment activities, as our management excludes these results when evaluating our operating performance. Standalone Adjusted EBITDA also includes estimated incremental costs of operating as a standalone company following the Separation. We use Standalone Adjusted EBITDA and believe this measure is useful to investors because it provides an estimate of our operating performance giving effect to the Separation and related transactions and additional costs that we expect to incur as a standalone company for the periods presented, and is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Standalone Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

We define Standalone Adjusted EBITDA as net income attributable to Versant before net income (loss) attributable to noncontrolling interests, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any, and further adjusted to give effect to estimated incremental costs of commercial agreements with Comcast and estimated additional costs we expect to incur as a standalone company in certain of our corporate administrative, facilities and support functions. From time to time, we may make adjustments to Standalone Adjusted EBITDA for the impact of certain events, gains, losses or other charges that affect the period-to-period comparability of our operating performance. Standalone Adjusted EBITDA is presented for informational purposes only and does not purport to represent what our results of operations actually would have been had we operated as a standalone company for the periods presented or to project our financial performance for any future period. Standalone Adjusted EBITDA is based on available information, estimates and assumptions, which we believe are reasonable, although actual future results will differ from the amounts presented. Reconciliations of Adjusted EBITDA and Standalone Adjusted EBITDA to the nearest GAAP measures for historical periods are presented below.

Reconciliation from Net Income Attributable to Versant to Adjusted EBITDA and Standalone Adjusted EBITDA
(Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
	(in millions)
Net income attributable to Versant	$	47			$	80			$	544			$	749
Net loss attributable to noncontrolling interests		—				(1	)			—				—
Income tax expense		19				45				243				283
Investment and other (income) loss, net		(8	)			39				(25	)			40
Interest expense		53				—				157				—
Depreciation and amortization		243				255				757				744
Adjustments (1)		—				27				5				71
Adjusted EBITDA	$	353			$	445			$	1,681			$	1,888
Incremental costs of commercial agreements with Comcast (2)						(46	)							(134	)
Incremental costs of corporate administrative, facilities and support functions (3)						(19	)							(95	)
Standalone Adjusted EBITDA					$	381							$	1,658

(1)	Amounts represent the impact of certain events, gains, losses or other charges that are adjusted in our definition of Adjusted EBITDA. For the periods presented, Adjusted EBITDA excludes transaction and transaction-related costs associated with the Separation, and includes fair value adjustments associated with a legacy deferred compensation plan assumed in the Separation. Transaction costs are incremental costs directly related to effectuating the Separation and primarily include legal, audit and advisory fees. Transaction-related costs are incremental costs incurred in anticipation of the Separation and primarily include IT separation and implementation costs, advisory fees and other one-time costs. The legacy deferred compensation program is frozen and has been funded with investments held in a trust. As such, we include the investment gains and losses, presented in investment and other income (loss), net in Adjusted EBITDA to offset gains and losses on the deferred compensation plan liability included in selling, general and administrative expenses.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
	(in millions)
Transaction costs	$	—		$	5		$	2		$	32
Transaction-related costs		—			22			3			39
Investment gains related to deferred compensation plan		—			—			—			—
Total transaction and transaction-related costs	$	—		$	27		$	5		$	71

(2)	Amounts represent incremental costs of commercial agreements entered into with Comcast in connection with the Separation and primarily relate to the commercial services agreement for the sale and use of our advertising and promotional inventory.
(3)	Amounts represent estimated incremental costs related to corporate administrative, facilities and support functions and primarily include the recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities and insurance. Amounts were determined by comparing expected costs to amounts in the combined statements of income, inclusive of allocation for centralized functions within Comcast and allocations of costs for the use of shared assets.

Free Cash Flow

Free Cash Flow is a non-GAAP financial measure that we believe provides a meaningful measure of liquidity and a useful basis for assessing our ability to repay debt, make strategic acquisitions and investments, and return capital to investors through stock repurchases and dividends. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe Free Cash Flow is useful to investors as a basis for comparing our performance and coverage ratios with other companies in our industries, although our measure of Free Cash Flow may not be directly comparable to similar measures used by other companies. Free Cash Flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other non-discretionary payments, such as mandatory debt repayments, are not deducted from the measure.

Free Cash Flow is defined as net cash provided by operating activities, reduced by capital expenditures. From time to time, we may exclude from Free Cash Flow the impact of certain cash receipts or payments that affect comparability. Reconciliations of Free Cash Flow to the nearest GAAP measures for historical periods are presented below. A reconciliation for full-year 2026 outlook cannot be provided without unreasonable efforts because of the inherent difficulty in forecasting certain amounts that are necessary for such reconciliations due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Forward-looking estimates are made in a manner consistent with the relevant definitions noted herein.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026				2026
	(in millions)
Net cash provided by operating activities	$	346			$	1,313
Capital expenditures		(44	)			(103	)
Free Cash Flow	$	302			$	1,210

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261102134685/en/

Investor Contacts:

Wylie Collins

[email protected]

Natalie Candela

[email protected]

Press Contacts:

Keith Cocozza

[email protected]

Hollie Tracz

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: General Sports Sports Golf TV and Radio Media Communications General Entertainment Entertainment

MEDIA:

Logo