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People Inc said its digital business extended its run of growth in the second quarter of 2026, helped by higher licensing income, AI-related partnerships, events and social media products, even as core traffic remained under pressure from changes in search.<\/p>\n
The company reported its 11th straight quarter of digital revenue growth, with digital adjusted EBITDA rising 18% year on year and margins widening to 26% from 23%.<\/p>\n
Chief executive Neil Vogel said the group\u2019s long-term aim is to persuade Google to separate its search and AI crawlers, arguing that the current model lets the search giant use its content to produce summaries without paying for the value it removes from publishers. He said People Inc was not yet in a position to switch off Google access entirely, but described the issue as a question of fair compensation rather than protest.<\/p>\n
The quarter still reflected the strain on legacy publishing. Core sessions fell 22%, while print revenue dropped 18%, underlining the continuing decline in advertising tied to print products. Even so, management said print subscriptions remain important, with around 10 million subscribers contributing more than $150 million a year and providing what Vogel called a valuable base of highly engaged readers.<\/p>\n
The company also maintained its push towards less traffic-dependent revenue streams. Non-session-based revenue rose 16% in the quarter, and executives said that mix should keep improving through the second half of the year. Tim Quinn, the finance chief, said growth in performance marketing is likely to slow later in 2026, but that this should be offset by stronger advertising trends and continued momentum in newer businesses.<\/p>\n
People Inc reaffirmed its full-year guidance, pointing to expected operating company EBITDA of between $325 million and $355 million. It also said it had agreed to sell its limited partner stake in a third-party fund for about $189 million in gross cash, with the deal expected to close in the third quarter. Christopher Halpin, the finance and operating chief, said the proceeds would be more than covered by remaining capital losses from the Care.com sale, leaving the company with further flexibility to monetise non-core holdings.<\/p>\n
Barry Diller, the chairman, again used the call to press the company\u2019s case for MGM Resorts. People Inc has proposed buying the remaining 74% of MGM it does not already own at $48.30 a share, valuing the casino operator at about $18 billion, but the offer remains non-binding. Diller said MGM could close the valuation gap by continuing to run the business well and return capital through buy-backs, while also signalling that People Inc would keep building its stake, whether through a full transaction or gradually over time.<\/p>\n
The broader message from the quarter was one of transition. People Inc is still managing the decline of its traditional print and search-dependent businesses, but it is increasingly leaning on licensing, events, AI partnerships and other non-session revenue to restore growth. Management said that as those initiatives scale, the company should be able to return to double-digit digital revenue growth in 2027 and beyond.<\/p>\n