People Incorporated (PPLI) investor relations material

Executive summary

• Leadership transition completed: Neil Vogel appointed CEO and Tim Quinn as CFO effective August 2026, with outgoing executives transitioning to consultant roles through March 2027.

• Strategic pivot away from general acquisitions, focusing on core assets (People Inc and MGM), with ongoing simplification and monetization of non-core assets, including the sale of Care.com and shutdown of Search segment.

• Agreement signed to sell a limited partner stake in a third-party fund for $189 million, expected to close in Q3 2026.

• Net earnings surged to $506.9 million for the quarter, driven by a $721.7 million unrealized gain on MGM investment.

• Corporate restructuring and consolidation plan initiated, targeting $63 million in cost savings and significant run-rate expense reductions.

Financial highlights

• Q2 2026 digital revenue grew 6% year-over-year to $290M, marking the 11th consecutive quarter of digital growth.

• Adjusted EBITDA increased 18% year-over-year to $74M, with margins expanding to 26% from 23%.

• Print revenue declined 16% to $132.6M, with Adjusted EBITDA down 45%.

• Net earnings from continuing operations were $514.7 million, up from $191.2 million in the prior year quarter.

• Free Cash Flow for the first half of 2026 was $79M; cumulative FCF since Q1 2024 reached $330M.

Outlook and guidance

• FY 2026 Adjusted EBITDA guidance: $255M–$290M, with mid- to high-single-digit growth in Digital revenue and Adjusted EBITDA.

• Print Adjusted EBITDA expected to offset unallocated corporate costs.

• Corporate consolidation to deliver $45M annual run-rate operating expense and $30M annual stock-based compensation post-Q1 2027.

• Emerging & Other segment guidance raised to $10M–$15M due to strong performance at The Daily Beast and Vivian Health.

• Restructuring plan expected to be completed by Q1 2027, with anticipated cost savings and leadership transitions.