People Incorporated (PPLI) Q2 2026 earnings summary

Executive summary

• Leadership transition completed: Neil Vogel appointed CEO and Tim Quinn as CFO effective August 2026, with outgoing executives remaining as consultants through March 2027; corporate consolidation and restructuring underway targeting significant cost savings.

• Strategic pivot to focus on core assets (People Inc and MGM), simplification of portfolio, and sale of non-core assets including Care.com and a limited partner stake in a third-party fund for $189 million, expected to close in Q3 2026.

• Submitted a non-binding proposal to acquire all outstanding shares of MGM Resorts International not already owned, with ongoing discussions to increase MGM ownership and a stake valued at $3.0B (26.6% ownership).

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

• Board authorized an additional 10M share repurchase, with $448M invested since 2025, reducing shares outstanding by 13%.

Financial highlights

• Q2 2026 digital revenue grew 6% year-over-year to $290M, marking the 11th consecutive quarter of growth; total Q2 revenue was $436.7M, down 1% year-over-year, with Print revenue down 16% to $132.6M.

• Adjusted EBITDA for Q2 2026 rose 5% to $76.2M, with Digital Adjusted EBITDA up 18% to $74M and margins expanding to 26% from 23%; Print Adjusted EBITDA fell 45% to $9M.

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

• Free Cash Flow for the first half of 2026 was $79M, with $179M generated over the last 12 months and cumulative FCF since Q1 2024 at $330M.

• Diluted EPS rose 160% year-over-year to $6.68.

Outlook and guidance

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

• People Inc expected EBITDA of $325M–$355M under new definition, with $15M Google litigation expense added back.

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

• Print Adjusted EBITDA expected to offset unallocated corporate costs.

• Digital revenue growth for the full year projected at mid to high single digits.