People Incorporated Common Stock NASDAQ: PPLI said its digital media business recorded its 12th consecutive quarter of digital revenue growth in the third quarter, though growth slowed as declining Google referrals continued to pressure web traffic. Executives said the company is responding by expanding licensing, subscriptions, social video, events and other revenue streams that do not depend on website sessions.
Digital revenue at People Inc. rose 2% from a year earlier, compared with 6% growth in the prior quarter. Non-sessions-based revenue increased 15%, supported by licensing, content syndication, events and social video. However, legacy sessions-based revenue fell 6%, as web sessions declined 26%, primarily due to reduced referrals from Google.
“The trend for the quarter was clear,” Chief Executive Officer Neil Vogel said. “Our newer non-sessions-based revenues continued to grow at pace, while legacy sessions-based revenues were more of a drag than we expected.”
Search Traffic Pressures Continue
Management said the company has lost nearly 70% of its Google search traffic over the past several years. Chief Financial Officer Tim Quinn said AI Overviews now appear on more than 90% of the Google searches the company tracks, contributing to the changing traffic environment.
Vogel said the company has been planning for a scenario it internally called “Google Zero,” seeking to reduce dependence on search-driven traffic by building direct consumer relationships and distributing content through additional channels. He cited social video series, events, connected-TV targeting through the company’s D/Cipher product, Apple News distribution, AI licensing, mobile apps, subscriptions and consumer products as areas of focus.
People Inc. launched MyRecipes+ and PEOPLE VIP paid online subscription offerings during the quarter, while its brands operated more than 50 social-video series. Vogel also highlighted People magazine’s “Sexiest Man Alive” franchise, saying associated revenue rose 50% this year as the property expanded across social media, YouTube, Apple News, the People app, podcasts and other distribution partners.
Quinn said licensing revenue rose 49% in the quarter, reflecting content consumption across distributed platforms including Apple News and AI-related partners. He said the company’s licensing activities include content licensing, AI licensing and traditional product licensing, including its Better Homes & Gardens product arrangement with Walmart.
The company expects digital revenue growth to improve in the fourth quarter and said it plans to return to mid- to high-single-digit digital revenue growth in 2027. Management also said sessions-based traffic and revenue could begin to stabilize next year, although absolute declines in search-driven traffic may continue.
Cost Actions and 2026 Outlook
People Inc. said it reduced staffing by 195 employees, or about 6% of its workforce, during the prior week. Vogel said the reductions were intended to optimize headcount around the company’s most important projects, while Quinn said resources are being shifted away from legacy operations such as print and web activities toward newer growth initiatives.
Quinn said holding-company EBITDA was flat year over year, while digital EBITDA at People declined by approximately $1 million. He attributed margin pressure in the quarter largely to lower volumes and investments in new initiatives, but said margins in licensing, non-session advertising and D/Cipher remain strong.
The company refined its full-year outlook. For People Inc., it expects EBITDA of $330 million to $345 million and mid-single-digit revenue growth for the year. At the total holding-company level, it expects EBITDA of $263 million to $283 million.
People Inc. generated $186 million of free cash flow after taxes and debt service in the prior year, according to Quinn. He said the company expects its corporate-expense run rate to reach roughly $45 million by the end of the first quarter of next year, following efforts to reduce former holding-company overhead.
MGM Stake, Capital Allocation and Asset Simplification
Chairman and Senior Executive Barry Diller addressed the company’s discussions with MGM, saying People Inc. ended a process that had considered taking MGM private and later declined an MGM proposal to acquire People Inc. Diller said he does not believe the timing was right for a sale of the People entity.
Diller said the company retains confidence in MGM’s prospects, pointing to opportunities in Las Vegas, regional markets, China and MGM’s resort development in Japan. People Inc. entered an agreement with MGM that addresses voting rights connected to its ownership position and limits People Inc. from purchasing MGM shares beyond 29.9%. Diller said the company does not intend to exceed that level through additional purchases, though its ownership could rise as MGM repurchases its own stock.
Management said People Inc. is now able to resume repurchasing its own shares after restrictions associated with the MGM discussions. Quinn said share repurchases are expected to receive the majority of capital allocation in the short to medium term, while acquisitions would be selective and targeted.
Executives said M&A efforts will focus on smaller bolt-on transactions that expand non-sessions-based media capabilities rather than large, transformative deals. The company recently acquired food influencer network The Feedfeed and food-event business Hot Luck.
The company also continues to simplify its portfolio. Quinn said the sale of Care, a limited partner stake and other smaller asset sales produced nearly $500 million in after-tax cash this year. He said remaining assets include stakes in Turo, Vivian and The Daily Beast, as well as the company’s headquarters building.
Turo is pacing toward approximately $1.2 billion in annual revenue, according to Quinn. Vivian reported 18% third-quarter revenue growth to about $12 million, while The Daily Beast reported 39% revenue growth to $8 million.
Finally, management discussed its Google ad-tech litigation, which relies on government findings concerning Google’s advertising-market practices. Quinn said a trial date has been set for a separate USA Today case in April and that People Inc. could see a resolution of its own case in 2027. He said the company believes its potential claims could be at least nine figures, while cautioning that uncertainty remains.
About People Incorporated Common Stock (NASDAQ:PPLI)
IAC Inc, together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands.
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