People Inc
For the period ended Jun 30, 2026. Filed Aug 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 3, 2026
PPLI$42.08+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001628280-26-029798
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0001628280-26-051881
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsPrinciples of Financial ReportingThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 159 previous paragraphs and 198 current paragraphs.
76 unchanged; 63 reworded; 54 added; 20 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 22 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (54)
Current report
On June 4, 2026, IAC Inc. changed its name to People Incorporated (NASDAQ: PPLI), which is the owner of publisher, People Inc. Group. People Incorporated also holds a significant minority stake in MGM Resorts International (“MGM”).
Current report
On June 30, 2026, Dotdash Meredith Inc. amended and restated its certificate of incorporation to change its name to People Inc. Group. As used herein, “People Inc.” refers to People Inc. Group.
Current report
Proposed Acquisition of MGM
Current report
On June 1, 2026, the Company announced that it submitted a non-binding proposal to the board of directors of MGM to acquire all outstanding shares of MGM that the Company does not already own for $48.30 per share in cash. The Company reserves the right to withdraw or modify the proposal at any time, or to terminate discussions and negotiations at any time in our sole discretion. No legal obligation with respect to our proposal or any other matter will arise unless and until we have executed definitive transaction documentation with MGM.
Current report
Corporate Restructuring
Current report
During the three and six months ended June 30, 2026, the Company incurred $0.8 million and $11.1 million of severance and employee separation benefits, respectively, related to the Plan, net of reversals of$0.5 million of previously recorded accrued costs. During both the three and six months ended June 30, 2026, the Company incurred $25.8 million of stock-based compensation expense and $0.2 million of other costs related to the Plan. All charges related to the Plan are included in “General and administrative expense” in the statement of operations. At June 30, 2026, $11.1 million in severance and employee separation benefits is accrued related to the Plan, which is included in “Accrued expenses and other current liabilities” in the balance sheet.
Current report
Shutdown of Search Segment
Current report
•The Daily Beast, IAC Films and the operations of certain legacy businesses.
Current report
•Emerging & Other revenue increased $4.2 million, or 26%, to $20.0 million due primarily to increases of $3.0 million, or 53%, from The Daily Beast and $1.2 million, or 12%, from Vivian Health. The increase in revenue from The Daily Beast was driven by content licensing, advertising and subscription revenue growth. The increase in revenue from Vivian Health was due to higher subscription and usage revenue, due in part to the contribution from its AI Assistant subscription product launched in fourth quarter of 2025.
Current report
◦The Digital increase was due primarily to increases of $17.2 million, or 24%, in Licensing and Other revenue, $14.9 million, or 14%, in Performance marketing revenue, net of intersegment eliminations, and $0.9 million in advertising revenue. The increases in Licensing and Other revenue and Performance marketing revenue were due primarily tothe factors described above in the three-month discussion. The increase in Performance marketing revenue was further impacted by the achievement of certain volume-related retailer incentive programs. The increase in advertising revenue was due primarily to growth in direct-sold premium advertising from the Health and Pharmaceuticals, Beauty and Style and Media and Entertainment categories, increased contribution from the D/Cipher+ advertising product and other Non-session-based revenue, partially offset by lower premium programmatic volume.
Current report
◦The Print decrease was due primarily to decreases of $28.1 million, or 19%, in subscription revenue, $14.7 million, or 20%, in advertising revenue, $4.1 million, or 13%, in project and other revenue and $2.7 million, or 20%, in performance marketing revenue. The decreases in subscription revenue, advertising revenue, and project and other revenue are all due, in part, to the factors described above in the three-month discussion. The decrease in performance marketing revenue was due to a decrease in renewals following the discontinuation of certain retail relationships.
Current report
•The People Inc. decrease was due to decreases of $4.7 million from Print and $0.7 million from Digital.
Current report
◦The Digital decrease was due primarily to decreases of $2.0 million in content costs and $0.8 million related to the purchase of advertising inventory for advertising campaigns sold by a legacy business as it increases its use of D/Cipher technology, partially offset by an increase of $2.5 million in revenue share payments to third parties. The decrease in content costs resulted from lower advertising revenue and a decline in Core Sessions.
Current report
•The Emerging & Other increase was due primarily to an increase of $0.8 million from The Daily Beast resulting from increases in compensation expense of $0.4 million due primarily to higher headcount and $0.2 million in content costs.
Current report
Cost of revenue in 2026 decreased from 2025 due to a decrease of $10.5 million from People Inc., partially offset by an increase of $2.1 million from Emerging & Other.
Current report
•The People Inc. decrease was due primarily to a decrease of $10.7 million from Print due primarily to a decrease of $10.4 million in production and distribution costs (postage, paper, printing and editorial) and $1.6 million in compensation expense. The decrease in both production and distribution costs and compensation expense were due primarily to the factors described above in the three-month discussion.
Current report
•The Emerging & Other increase was due primarily to an increase of $1.3 million from The Daily Beast resulting from increases in compensation expense of $0.8 million due primarily to the factor described above in the three-month discussion and content costs of $0.3 million.
Current report
Selling and marketing expense in 2026 decreased from 2025 due to a decrease of$12.9 million from People Inc. resulting from a decrease of$26.5 million from Print, net of intersegment eliminations, partially offset by an increase of$13.6 million from Digital.
Current report
•The Print decrease was due primarily to a decrease of $22.9 million in subscription acquisition costs due primarily to the factor described above in the three-month discussion.
Current report
•The Digital increase was due primarily to an increase of $11.3 million in advertising expense due primarily to the factor described above in the three-month discussion and a new initiative to improve sales channels.
Current report
General and administrative expense in 2026 increased from 2025 due to increases of $17.7 million from Corporate and $8.4 million from People Inc., partially offset by a decrease of $9.0 million from Emerging & Other.
Current report
•The Corporate increase was due primarily to an increase in compensation expense of $19.6 million due primarily to an increase of $18.4 million in stock-based compensation expense and $0.8 million in severance and employee separation benefits resulting from the planned reduction in workforce as the Company consolidates its corporate functions with those of People Inc. The increase in stock-based compensation expense is due primarily to the acceleration and modification of stock-based awards related to the Plan. See “Corporate Restructuring” above for additional information on the reduction in workforce.
Current report
•The People Inc. increase was due primarily to increase of $4.7 million from Other (unallocated corporate costs) and $4.0 million from Digital.
Current report
◦The Other (unallocated corporate costs) increase was due primarily to $3.7 million in legal costs related to the antitrust litigation against Google and increase of $1.5 million in compensation expense due primarily to an increase in stock-based compensation expense.
Current report
◦The Digital increase was due primarily to $3.3 million in legal costs due to an accrual for a certain legal matter.
Current report
•The People Inc. increase was due primarily to increases of $44.3 million from Other (unallocated corporate costs) and $4.0 million from Digital.
Current report
◦The Digital increase was due primarily to $3.5 million in legal costs due to an accrual for a certain legal matter.
Current report
•The Emerging & Other decrease was due primarily to the inclusion in the prior year of $12.7 million in legal costs as described above in the three-month discussion.
Current report
Product development expense in 2026 decreased from 2025 due primarily to a decrease of $0.4 million from Digital at People Inc. due primarily to a decrease of $0.5 million in compensation expense resulting from an increase in wages being capitalized related to brand growth initiatives.
Current report
Product development expense in 2026 increased from 2025 due primarily to an increase of $1.5 million from People Inc., partially offset by a decrease of $0.7 million from Emerging & Other.
Current report
•The Emerging & Other decrease was due primarily to a decrease of $0.3 million in compensation expense from Vivian Health resulting from a reduction in headcount in 2025.
Current report
Depreciation in 2026 increased from 2025 due primarily to an increase of $0.3 million at People Inc. resulting from an increase in assets placed in service compared to the prior year period.
Current report
Amortization of intangibles in 2026 decreased from 2025 due primarily to the factors described above in the three-month discussion.
Current report
The operating loss in 2026 of $46.1 million compares to income of $13.6 million in 2025, representing a $59.7 million decline, despite the increase of $14.2 million in Adjusted EBITDA, described below, due primarily to an increase of $54.5 million in stock-based compensation expense, the inclusion in the prior year of $36.2 million in net gains from lease impairments, terminations and amendments and certain asset sales, and $1.6 million in transaction-related costs, partially offset by decreases of $6.8 million in amortization of intangibles, $5.2 million in restructuring costs, including certain severance and employee separation benefits, $3.7 million in depreciation and $2.2 million in litigation costs. Refer to the “General and administrative expense” discussion above for additional details on the net gains from lease impairments, terminations and amendments and certain asset sales, the increase in stock-based compensation, and the decrease in restructuring costs, including certain severance and employee separation benefits.
Current report
•Emerging & Other Adjusted EBITDA increased $2.7 million to $2.9 million due primarily to increased profits at The Daily Beast and Vivian Health.
Current report
•Corporate Adjusted EBITDA loss decreased 4% to $20.3 million due primarily to lower operating expenses.
Current report
•People Inc. Adjusted EBITDA increased 5% to $119.3 million due primarily to an increase in Adjusted EBITDA of $19.9 million from Digital, partially offset by a decrease in Adjusted EBITDA of $15.2 million from Printdue to the factors described above in the three-month discussion.
Current report
•Emerging & Other Adjusted EBITDA increased $5.1 million to $6.8 million due primarily to increased profits at The Daily Beast and Vivian Health, partially offset by losses in the current year at IAC Films compared to profits in the prior year.
Current report
•Corporate Adjusted EBITDA loss decreased 8% to $40.9 milliondue primarily to the factor described above in the three-month discussion.
Current report
Interest expense in 2026 decreased from 2025 due primarily to the factors described above in the three-month discussion.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
IAC today primarily comprises leading publisher People Inc. and its strategic equity positions in MGM Resorts International (“MGM”) and Turo Inc. (“Turo”).
Previous report
IAC Corporate Restructuring
Previous report
On April 28, 2026, IAC announced it is changing its name to “People Incorporated” as it continues to sharpen its focus on its People Inc. business and its investment in MGM.
Previous report
•Search - consists of Ask Media Group, a collection of websites providing general search services and information, and Desktop, our legacy desktop search software business, which includes our business-to-business partnership operations and the remaining installed base of our direct-to-consumer downloadable desktop applications; and
Previous report
•The Daily Beast and IAC Films.
Previous report
Services Agreement with Google and the Shutdown of the Search Segment
Previous report
For both the three months ended March 31, 2026 and 2025, 99% of the revenue earned by the Search segment was earned pursuant to the Services Agreement. See “Note 1—The Company and Summary of Significant Accounting Policies” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information on the Services Agreement.
Previous report
•Search revenue decreased $53.2 million, or 76%, to $17.1 million due to decreases of $46.4 million, or 80%, from Ask Media Group due primarily to frequent Google algorithm changes and policy updates, as well as the revised terms of the Services Agreement that became effective April 2025, resulting in a reduction in marketing through affiliate partners, which drove fewer visitors to our ad-supported search and content websites, and $6.8 million, or 54%, from Desktop due primarily to continued decline in search queries.
Previous report
•The Search decrease was due primarily to a decrease in traffic acquisition costs of $24.0 million following a decrease in revenue and the proportion of revenue earned from affiliate partners who direct traffic to our websites.
Previous report
Selling and marketing expense in 2026 decreased from 2025 due to decreases of$20.8 million from Search and$3.7 million from People Inc.
Previous report
•The Search decrease was due primarily to a decrease of $22.1 million in online marketing spend as Search reduced its marketing efforts due primarily to frequent Google algorithm changes and policy updates, partially offset by $1.5 million in severance and related expenses resulting from the anticipated shutdown of the Search segment in the second quarter of 2026. See “Services Agreement with Google and the Shutdown of the Search Segment” above for further discussion.
Previous report
Product development expense in 2026 increased from 2025 due primarily to increases of $2.6 million from Search and $1.9 million from People Inc.
Previous report
•The Search increase was due primarily to increases in compensation expense of $1.7 million and software maintenance of $1.1 million. The increase in compensation expense was due primarily to $2.0 million in severance and related expenses and the increase in software maintenance was due primarily to the write-off of $1.4 million in certain prepaid vendor contracts, both resulting from the anticipated shutdown of the Search segment in the second quarter of 2026.
Previous report
◦The Other (unallocated corporate costs) Adjusted EBITDA loss increase was due primarily to the inclusion in the prior year of a net gain of $36.2 million resulting from the amendment to a lease, which provided for the surrender of certain office space early and $2.1 million of costs in the first quarter of 2026 related to the antitrust litigation against Google.
Previous report
•Search Adjusted EBITDA decreased $11.3 million to a loss of $8.3 million due primarily to lower revenue, an increase in compensation expense due primarily to severance and related expenses of $5.4 million and the write-off of $1.4 million related to certain prepaid vendor contracts, resulting from the anticipated shutdown of the Search segment in the second quarter of 2026. See “Services Agreement with Google and the Shutdown of the Search Segment” above for further discussion.
Previous report
•Emerging & Other Adjusted EBITDA increased $8.7 million to $4.2 million from a loss of $4.5 million due primarily to the inclusion in the prior year of $5.9 million in legal fees for litigation that concluded in the third quarter of 2025 related to a legacy business and increased profits at The Daily Beast and Vivian Health.
Previous report
•Corporate Adjusted EBITDA loss decreased 13% to $36.8 milliondue primarily to the inclusion in the prior year of$14.5 million in separation benefits to our former CEO under the Employment Transition Agreement and $4.8 million intransaction-related costs related to the Distribution, partially offset by increases of $8.6 million in severance and related expense and $3.7 million in legal fees and $2.2 million in transaction-related costs related to the sale of Care.com on March 16, 2026. The increase in severance and related expense is due to a reduction in workforce as the Company consolidates its corporate functions with those of People Inc. See “IAC Corporate Restructuring” above for additional information on the reduction in workforce.
Previous report
Income tax benefit
Previous report
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements, if applicable. We believe this measure is useful for investors and analysts as this measure allows a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.
Previous report
(a) Other comprises unallocated corporate expenses.
Reworded paragraphs (63)
Previous wording
As used herein, “IAC,” the “Company,” “we,” “our” or “us” and other similar terms refer to IAC Inc. and its subsidiaries (unless the context requires otherwise).
Current wording
As used herein, “People Incorporated,” the “Company,” “we,” “our,” “us” and other similar terms refer to People Incorporated and its subsidiaries (unless the context requires otherwise).
Previous wording
Ahead of its name change to “People Incorporated,” which is expected to occur in or before August 2026, the Company has initiated a plan to consolidate its corporate functions with those of People Inc. through a reduction in workforce, technology integrations and other cost-saving measures over the coming quarters (the “Plan”). The Plan is expected to be completed by the first quarter of 2027.
Current wording
On April 28, 2026, the Company initiated a plan to consolidate its corporate functions with those of People Inc. through a reduction in workforce, technology integrations and other cost-saving measures over the coming quarters (the “Plan”). The Plan is expected to be completed during the first quarter of 2027.
Previous wording
The Company expects to incur approximately $14.0 million in severance and related expenses, of which $10.3 million was accrued at March 31, 2026 and is included in “General and administrative expense” in the statement of operations, $48.0 million in stock-based compensation expense and $0.5 million to $1.0 million in other costs related to the Plan. The aforementioned stock-based compensation expense includes approximately $16.0 million of expense that accelerates based on the original terms of employee award agreements and $32.0 million of expense associated with awards that were modified to vest in connection with the Plan. The total costs expected to be incurred in connection with the Plan are approximately $63.0 million. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions and actual amounts may differ materially from these estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the Plan.
Current wording
The total costs expected to be incurred in connection with the Plan are approximately $63.0 million, including approximately $14.0 million in severance and employee separation benefits, $48.0 million in stock-based compensation expense and $0.5 million in other costs related to the Plan. The total expected stock-based compensation expense includes approximately $32.0 million of expense associated with awards that were modified to vest in connection with the Plan and $16.0 million of expense associated with awards that accelerate based on the original terms of the award agreements. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions and actual amounts may differ materially from these estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the Plan.
Previous wording
As the Company moves away from its holding company structure and in connection with the Plan, Christopher Halpin will cease to serve as Executive Vice President, Chief Operating Officer and Chief Financial Officer of the Company, and Kendall Handler will cease to serve as Executive Vice President and Chief Legal Officer of the Company, in each case, effective on the filing of the Company’s Form 10-Q for the quarter ending June 30, 2026 or such earlier date on which the executive’s employment with the Company is terminated for any other reason (the “Separation Effective Date”). The Company expects that, upon the Separation Effective Date, Neil Vogel, who currently serves as Chief Executive Officer of People, will become Chief Executive Officer of the Company, and Tim Quinn, who currently serves as the Chief Financial Officer of People, will become Chief Financial Officer of the Company. Mr. Halpin and Ms. Handler have each entered into employment transition agreements with the Company, each dated April 27, 2026, pursuant to which each executive will continue to serve in their respective positions through the Separation Effective Date.
Current wording
As the Company moves away from its holding company structure and in connection with the Plan, Christopher Halpin will cease to serve as Executive Vice President (“EVP”), Chief Operating Officer and Chief Financial Officer (“CFO”) of the Company, and Kendall Handler will cease to serve as EVP and Chief Legal Officer of the Company, in each case, effective August 5, 2026 (the “Separation Effective Date”). Upon the Separation Effective Date, Neil Vogel, who served as Chief Executive Officer (“CEO”) of People Inc., will become CEO of the Company, and Timothy Quinn, who served as the CFO of People Inc., will become CFO of the Company. Mr. Halpin and Ms. Handler have each entered into employment transition agreements with the Company, each dated April 27, 2026, pursuant to which each executive will serve in their respective positions through the Separation Effective Date.
Previous wording
On December 10, 2025, the Company received a notice of non-renewal (the “Notice”) from Google of the services agreement, dated October 26, 2015 and as subsequently amended (the “Services Agreement”). As a result of the Notice, the Services Agreement was due to expire on March 31, 2026; the Services Agreement was extended through April 30, 2026, at which point the Services Agreement expired. As a result, the Company ceased operations of its Search segment. The operations of the Search segment will be presented as discontinued operations within IAC’s financial statements in the second quarter of 2026 and prior periods will reflect Search as discontinued operations to conform to this presentation.
Current wording
On December 10, 2025, the Company received a notice of non-renewal (the “Notice”) from Google Inc. of the services agreement, dated October 26, 2015 and as subsequently amended (the “Services Agreement”). As a result of the Notice, the Services Agreement was due to expire on March 31, 2026; the Services Agreement was extended through April 30, 2026, at which point the Services Agreement expired. In connection with the expiration of the Services Agreement the Company ceased operations of its Search segment, which are presented as discontinued operations within the Company’s consolidated financial statements for all periods presented.
Previous wording
On March 16, 2026, IAC completed the sale of its wholly-owned subsidiary, Care.com, for net proceeds of $295.7 million. As a result of the transaction, the consolidated operations of Care.com are presented as discontinued operations within IAC’s consolidated financial statements for all periods prior to March 16, 2026.
Current wording
On March 16, 2026, the Company completed the sale of its wholly-owned subsidiary, Care.com, for net proceeds of $300.2 million. In July 2026, the remaining $4.5 million of cash proceeds, which was held in escrow at June 30, 2026, was received by the Company. As a result of the transaction, the consolidated operations of Care.com are presented as discontinued operations within the Company’s consolidated financial statements for all periods prior to March 16, 2026.
Previous wording
On March 31, 2025, IAC completed the spin-off of Angi Inc. (“Angi”) by means of a special dividend (the “Distribution”) of all shares of Angi capital stock held by IAC to holders of its common stock and Class B common stock. Following the Distribution, IAC no longer owns any shares of Angi’s capital stock and Angi became an independent public company. As a result of the Distribution, the consolidated operations of Angi are presented as discontinued operations within IAC’s consolidated financial statements for all periods prior to March 31, 2025.
Current wording
On March 31, 2025, the Company completed the spin-off of Angi Inc. (“Angi”) by means of a special dividend (the “Distribution”) of all shares of Angi capital stock held by the Company to holders of its common stock and Class B common stock. Following the Distribution, the Company no longer owns any shares of Angi’s capital stock and Angi became an independent public company. As a result of the Distribution, the consolidated operations of Angi are presented as discontinued operations within the Company’s consolidated financial statements for all periods prior to March 31, 2025.
Previous wording
IAC Businesses(for additional information see “Note 5—Segment Information” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements”):
Current wording
Businesses of the Company(for additional information see “Note 6—Segment Information” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements”):
Previous wording
•People Inc. - one of the largest digital and print publishers in America and is committed to content—made by people for people—that delights, teaches, inspires and entertains. More than 175 million people trust People Inc. each month to help them make decisions, take action, and find inspiration. People Inc.’s over 40 iconic brands include PEOPLE, Better Homes & Gardens, Verywell, Food & Wine, Travel + Leisure, Allrecipes, REAL SIMPLE, Investopedia and Southern Living. People Inc. has two operating segments: (i) Digital, which includes its digital, mobile and licensing operations; and (ii) Print, which includes its magazine subscription and newsstand operations;
Current wording
•People Inc. - one of the largest digital and print publishers in America and home to over 40 celebrated brands, including PEOPLE, Food & Wine, Travel + Leisure, InStyle, Better Homes & Gardens and Southern Living, attracting more than 175 million consumers each month. People Inc. has two operating segments: (i) Digital, which includes its digital, mobile and licensing operations; and (ii) Print, which includes its magazine subscription and newsstand operations;
Previous wording
•Cost of revenue (exclusive of depreciation) -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs; production, distribution and editorial costs of the People Inc. Print segment; traffic acquisition costs, which include payments made to partners that direct traffic to our Ask Media Group websites and who distribute our business-to-business customized browser-based applications; content costs; purchases of advertising inventory for advertising campaigns sold with People’s D/Cipher product; and hosting fees. Traffic acquisition costs include payment of amounts based on revenue share and other arrangements.
Current wording
•Cost of revenue (exclusive of depreciation) -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs; production, distribution and editorial costs of the People Inc. Print segment; content costs; purchases of advertising inventory for advertising campaigns sold with People Inc.’s D/Cipher product; traffic acquisition costs, which include payment of amounts based on revenue share and other arrangements; and hosting fees.
Previous wording
•Term Loan A-1- due May 14, 2030. On May 14, 2025, People Inc. entered into the Incremental Assumption Agreement and Amendment No. 2 to the Credit Agreement (“Amendment No. 2”), which replaced $288.8 million of the then outstanding Term Loan A with $350 million of the Term Loan A-1 and provided for a new five-year $150 million revolving credit facility (“Revolving Facility”). At March 31, 2026 and December 31, 2025, the outstanding balance of the Term Loan A-1 was $336.9 million and $341.3 million, respectively, and bore interest at secured overnight financing rate (“SOFR”) plus 2.00%, or 5.67% and 5.73%, respectively. The Term Loan A-1 requires quarterly principal payments, which commenced September 30, 2025, of $4.4 million through December 31, 2027, $8.8 million thereafter through December 31, 2028 and $13.1 million thereafter through maturity.
Current wording
•Term Loan A-1- due May 14, 2030. On May 14, 2025, People Inc. entered into the Incremental Assumption Agreement and Amendment No. 2 to the Credit Agreement (“Amendment No. 2”), which replaced $288.8 million of the then outstanding Term Loan A with $350 million of the Term Loan A-1 and provided for a new five-year $150 million revolving credit facility (“Revolving Facility”). At June 30, 2026 and December 31, 2025, the outstanding balance of the Term Loan A-1 was $332.5 million and $341.3 million, respectively, and bore interest at secured overnight financing rate (“SOFR”) plus 2.00%, or 5.65% and 5.73%, respectively. The Term Loan A-1 requires quarterly principal payments, which commenced September 30, 2025, of $4.4 million through December 31, 2027, $8.8 million thereafter through December 31, 2028 and $13.1 million thereafter through maturity.
Previous wording
•Term Loan B-2 - due June 16, 2032. On June 16, 2025, People Inc. completed the refinancing and replacement of its then outstanding $1.18 billion Term Loan B-1 with a combination of $700 million of the Term Loan B-2 and $400 million of the 7.625% Senior Secured Notes due June 15, 2032 (“2032 Notes”). At March 31, 2026 and December 31, 2025, the outstanding balance of the Term Loan B-2 was $698.3 million and $700.0 million, respectively, and bore interest at SOFR, subject to a minimum of 0.50%, plus 3.50%, or 7.17% and 7.37%, respectively, as the applicable margin was unchanged under the governing agreements. The Term Loan B-2 requires quarterly principal payments of $1.8 million, which commenced March 31, 2026 through maturity.
Current wording
•Term Loan B-2 - due June 16, 2032. On June 16, 2025, People Inc. completed the refinancing and replacement of its then outstanding $1.18 billion Term Loan B-1 with a combination of $700 million of the Term Loan B-2 and $400 million of the 7.625% Senior Secured Notes due June 15, 2032 (“2032 Notes”). At June 30, 2026 and December 31, 2025, the outstanding balance of the Term Loan B-2 was $696.5 million and $700.0 million, respectively, and bore interest at SOFR, subject to a minimum of 0.50%, plus 3.50%, or 7.12% and 7.37%, respectively, as the applicable margin was unchanged under the governing agreements. The Term Loan B-2 requires quarterly principal payments of $1.8 million, which commenced March 31, 2026 through maturity.
Previous wording
•Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) - is a non-GAAP financial measure. See “Principles of Financial Reporting” for the definition of Adjusted EBITDA and required non-GAAP reconciliations.
Current wording
•Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) - is a non-GAAP financial measure. Beginning with the second quarter of 2026, the Company revised its definition of Adjusted EBITDA to also exclude certain items that management believes are not representative of the Company’s core ongoing operating performance and certain items that affect comparability between periods. Adjusted EBITDA for prior periods has been recast to conform to the current period presentation. See “Principles of Financial Reporting” for the definition of Adjusted EBITDA and required non-GAAP reconciliations.
Previous wording
Results of Operations for the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2026 Compared to the Three and Six Months Ended June 30, 2025
Previous wording
•People Inc. revenue decreased $7.3 million, or 2%, to $385.7 million, despite the increase of $18.1 million, or 8%, from Digital, net of intersegment eliminations, due to a decrease of $25.4 million, or 16%, from Print.
Current wording
•People Inc. revenue decreased $10.7 million, or 2%, to $416.7 million, despite the increase of $14.9 million, or 6%, from Digital, net of intersegment eliminations, due to a decrease of $25.6 million, or 16%, from Print.
Previous wording
◦The Digital increase was due primarily to increases of $8.3 million, or 26%, in Licensing and Other revenue, $8.2 million, or 16%, in Performance marketing revenue, net of intersegment eliminations, and $1.6 million, or 1%, in Advertising revenue. The increase in Licensing and Other revenue was due primarily to improved performance of Apple News+ and content syndication partners and the contribution from Meta, a content partnership which was signed in the fourth quarter of 2025. The increase in Performance marketing revenue was due primarily to an increase in affiliate commerce commission revenue due tohigher transaction volumes and the achievement of volume-related retailer incentive programs, partially offset by a decrease in performance marketing service revenue primarily in the Finance category. The increase in Advertising revenue was due primarily to growth in direct-sold premium advertising in the Health and Pharmaceuticals, Home and Consumer Packaged Goods and Technology and Telecommunications categories as well as increased contribution from the D/Cipher+ advertising product and other Non-session-based revenue, partially offset by declines in premium programmatic volume. Additionally, open programmatic advertising revenue decreased due primarily to lower impression volumes driven by a 17% decline in Core Sessions, due primarily to the impact of the increasing prominence of Google AI Overviews on Google search sessions, partially offset by higher programmatic rates. The Company expects the increasing prominence of Google AI Overviews to continue to negatively impact Core Sessions and advertising revenue.
Current wording
◦The Digital increase was due primarily to increases of $8.9 million, or 23%, in Licensing and Other revenue and $6.7 million, or 12%, in Performance marketing revenue, net of intersegment eliminations, partially offset by a decrease of $0.6 million in Advertising revenue. The increase in Licensing and Other revenue was due primarily to improved performance of Apple News+ and content syndication partners and from the contribution of a content partnership with Meta that was signed in the fourth quarter of 2025. The increase in Performance marketing revenue was due primarily to an increase in affiliate commerce commission revenue due primarily tohigher transaction volumes. Advertising revenue decreased slightly due primarily to lower premium programmatic volume, partially offset by direct-sold advertising growth primarily from the Health and Pharmaceuticals, Media and Entertainment and Beauty and Style categories, higher open programmatic advertising revenue, other Non-session-based revenue, including the contribution from the acquisition of Feedfeed, which was acquired in the fourth quarter of 2025, and increased contribution from the D/Cipher+ advertising product. Open programmatic advertising revenue increased due primarily to higher programmatic rates, partially offset by lower impression volumes driven by a 22% decline in Core Sessions, due primarily to the impact of the increasing prominence of Google AI Overviews on Google search sessions. The Company expects the increasing prominence of Google AI Overviews to continue to negatively impact Core Sessions and advertising revenue.
Previous wording
◦The Print decrease was due primarily to decreases of $12.9 million, or 17%, in subscription revenue, $7.6 million, or 20%, in advertising revenue, $2.5 million, or 16%, in project and other revenue and $2.2 million, or 27%, in performance marketing revenue. The decreases in subscription revenue, advertising revenue, and performance marketing revenue are all due, in part, to ongoing portfolio optimization changes that resulted in a reduction in the number of issues sold in the current year compared to the prior year and the ongoing and continuing broader migration of audience from print to digital platforms. The decrease in project and other revenue was due primarily to fewer project-related contracts compared to the prior year.
Current wording
◦The Print decrease was due primarily to decreases of $15.2 million, or 21%, in subscription revenue, $7.1 million, or 19%, in advertising revenue, $1.7 million, or 11%, in project and other revenue and $1.2 million, or 5%, in newsstand revenue. The decreases in both subscription revenue and advertising revenue are due to ongoing portfolio optimization changes that resulted in a reduction in the number of issues sold in the current year compared to the prior year and the ongoing and continuing broader migration of audience from print to digital platforms. The decrease in project and other revenue was due primarily to fewer project-related contracts compared to the prior year. The decrease in newsstand revenue was due primarily to less favorable rates under a renewed contract with a wholesaler.
Previous wording
•Emerging & Other revenue increased $1.8 million, or 10%, to $20.1 million due primarily to increases of $2.3 million, or 36%, from The Daily Beast and $0.9 million, or 8%, from Vivian Health, partially offset by a decrease in revenue of $1.3 million, or 74%, from IAC Films.
Current wording
•Emerging & Other revenue increased $6.0 million, or 17%, to $40.1 million due primarily to increases of $5.2 million, or 44%, from The Daily Beast and $2.1 million, or 10%, from Vivian Health, partially offset by a decrease in revenue of $1.4 million, or 74%, from IAC Films. The increase in revenue from The Daily Beast and Vivian Health was due primarily to the factors described above in the three-month discussion.
Previous wording
Cost of revenue in 2026 decreased from 2025 due primarily to decreases of $23.4 million from Search and $5.1 million from People Inc.
Current wording
Cost of revenue in 2026 decreased from 2025 due to a decrease of $5.4 million from People Inc., partially offset by an increase of $1.2 million from Emerging & Other.
Previous wording
•The People Inc. decrease was due primarily to a decrease of $6.0 million from Print due primarily to a decrease of $6.8 million in production and distribution costs (postage, paper, printing and editorial) resulting from the planned reduction in the number of printed copies of certain publications and a corresponding reduction in the consumption of paper.
Current wording
◦The Print decrease was due primarily to decreases of $3.1 million in production and distribution costs (paper, postage, printing and editorial) resulting from the planned reduction in the number of printed copies of certain publications and $1.5 million in compensation expense due primarily to a reduction in headcount.
Previous wording
•The People Inc. decrease was due primarily to a decrease of$12.0 million from Print, net of intersegment eliminations, partially offset by an increase of$8.4 million from Digital.
Current wording
Selling and marketing expense in 2026 decreased from 2025 due to a decrease of$9.3 million from People Inc. resulting from a decrease of$14.5 million from Print, net of intersegment eliminations, partially offset by an increase of$5.2 million from Digital.
Previous wording
◦The Print decrease was due primarily to a decrease of $10.4 million in subscription acquisition costs due primarily to the on-going portfolio optimization changes that reduced the number of issues produced compared to the prior year.
Current wording
•The Print decrease was due primarily to a decrease of $12.5 million in subscription acquisition costs due primarily to the on-going portfolio optimization changes that reduced the number of issues produced compared to the prior year.
Previous wording
◦The Digital increase was due primarily to an increase of $7.5 million in advertising and events production expense resulting from an increase in online marketing spend due primarily to an increase in paid affiliate commerce commission revenue and a new initiative to improve sales channels.
Current wording
•The Digital increase was due primarily to an increase of $4.1 million in advertising expense resulting from an increase in online marketing spend due primarily to an increase in paid affiliate commerce commission revenue.
Previous wording
•The Emerging & Other decrease was due primarily to the inclusion in the prior year of $5.9 million in legal fees for litigation that concluded in the third quarter of 2025 related to a legacy business.
Current wording
•The Emerging & Other decrease was due primarily to the inclusion in the prior year of $6.5 million in legal costs for litigation that concluded in the third quarter of 2025 related to a legacy business.
Previous wording
General and administrative expense in 2026 increased from 2025 due primarily to increases of$39.5 million from People Inc. and $28.0 million from Corporate, partially offset by a decrease of $6.4 million from Emerging & Other.
Current wording
General and administrative expense in 2026 increased from 2025 due to increases of$47.9 million from People Inc. and $45.6 million from Corporate, partially offset by a decrease of $15.4 million from Emerging & Other.
Previous wording
•The People Inc. increase was at Other (unallocated corporate costs) and was due primarily to the inclusion in the prior year of a net gain of $36.2 million resulting from the amendment of a lease, which provided for the surrender of certain office space early, an increase of $2.3 million in stock-based compensation expense due primarily to an increase in awards granted subsequent to the first quarter of 2025 and $2.1 million of costs in 2026 related to the antitrust litigation against Google.
Current wording
◦The Other (unallocated corporate costs) increase was due primarily to the inclusion in the prior year of a net gain of $36.2 million resulting from the amendment of a lease, which provided for the surrender of certain office space early and $5.9 million in legal costs due primarily to the antitrust litigation against Google and increase of $3.5 million in compensation expense resulting from an increase in stock-based compensation expense.
Previous wording
•The Corporate increase was due primarily to increases in compensation expense of $25.6 million and legal fees of $3.7 million and $2.2 million in transaction-related costs related to the sale of Care.com on March 16, 2026, partially offset by $4.8 million intransaction-related costs in the prior year related to the Distribution. The increase in compensation expense was due primarily to increases in stock-based compensation expense of $33.6 million and $8.6 million in severance and related expense, partially offset by $14.5 million in separation benefits in the prior year to our former Chief Executive Officer’s (“CEO”) under his employment transition agreement (the “Employment Transition Agreement”). The increase in stock-based compensation expense is due primarily to the reversal of in the prior year of $49.8 million of previously recognized expense related to the forfeiture of our former CEO’s restricted stock award, which was forfeited on January 13, 2025, partially offset by $14.9 million of stock-based compensation expense related to the transfer of 5.0 million Class B shares of Angi held by the Company to our former CEO prior to the Distribution pursuant to the Employment Transition Agreement. The increase in severance and related expense is due to a reduction in workforce as the Company consolidates its corporate functions with those of People Inc. See “IAC Corporate Restructuring” above for additional information on the reduction in workforce.
Current wording
•The Corporate increase was due primarily to increases in compensation expense of $45.2 million and legal costs of $2.7 million and $2.2 million in transaction-related costs related to the sale of Care.com on March 16, 2026, partially offset by $4.8 million intransaction-related costs in the prior year related to the Distribution. The increase in compensation expense was due primarily to an increase in stock-based compensation expense of $52.1 million, partially offset by a decrease of $5.4 million in severance and employee separation benefits. The increase in stock-based compensation expense was due primarily to the reversal in the prior year of $49.8 million of previously recognized expense related to the forfeiture of our former Chief Executive Officer’s (“CEO”) restricted stock award, which was forfeited on January 13, 2025, partially offset by $14.9 million of stock-based compensation expense related to the transfer of 5.0 million Class B shares of Angi held by the Company to our former CEO prior to the Distribution pursuant to his employment transition agreement (the “Employment Transition Agreement”), and the acceleration and modification of stock-based awards in the current year related to the planned reduction in workforce as the Company consolidates its corporate functions with those of People Inc. The decrease in severance and employee separation benefits is due primarily to $14.7 million in separation benefits in the prior year related to our former CEO under his Employment Transition Agreement and $2.3 million in severance and employee separation benefits related to other headcount reductions, partially offset by $11.1 million in severance and employee separation benefits in the current year related to the aforementioned planned reduction in workforce. See “Corporate Restructuring” above for additional information on the reduction in workforce.
Previous wording
•The People Inc. increase was due primarily to an increase of $2.2 million from Digital due primarily to increases in software maintenance of $1.1 million related to AI service costs and $0.9 million in compensation expense due primarily to an increase in payroll-related expenses.
Current wording
•The People Inc. increase was due primarily to $1.8 million from Digital due primarily to an increase of $1.4 million in software maintenance expense related to AI service costs.
Previous wording
Depreciation in 2026 decreased from 2025 due primarily to a decrease of $3.8 million at People Inc. resulting from accelerated depreciation expense recognized in 2025 on certain leasehold improvements in connection with a lease amendment to surrender certain unoccupied office space.
Current wording
Depreciation in 2026 decreased from 2025 due primarily to a decrease of $3.5 million at People Inc. resulting from accelerated depreciation expense recognized in 2025 on certain leasehold improvements in connection with a lease amendment to surrender certain unoccupied office space, partially offset by an increase in assets placed in service compared to the prior year period.
Previous wording
The operating loss in 2026 of $40.1 million compares to income of $24.1 million in 2025, representing a $64.2 million decline, due primarily to an increase of $37.8 million in stock-based compensation expense and a decrease of $33.7 million in Adjusted EBITDA, described below, partially offset by decreases of $3.9 million in depreciation and $3.4 million in amortization of intangibles, described above. The increase in stock-based compensation expense was due primarily to the inclusion of the reversal of $49.8 million of previously recognized expense in the prior year related to the forfeiture of our former CEO’s restricted stock award, partially offset by $14.9 million of stock-based compensation expense related to the transfer of 5.0 million Class B shares of Angi held by the Company to our former CEO, as described above under “General and administrative expense.”
Current wording
Operating loss increased $6.8 million, or 91%, to $14.3 million, despite the increase of $7.2 million in Adjusted EBITDA, described below, due primarily to increases of $16.7 million in stock-based compensation expense, $0.8 million in transaction-related costs, $0.4 million in restructuring costs, including certain severance and employee separation benefits, and $0.2 million in depreciation, partially offset by decreases of $3.4 million in amortization of intangibles and $0.5 million in litigation matters. The increase in stock-based compensation expense was due primarily to the acceleration and modification of stock-based awards related to the planned reduction in workforce as the Company consolidates its corporate functions with those of People Inc., partially offset by the reversal in the prior year of previously recognized expense related to the forfeiture of our former CEO restricted stock award, as described above under “General and administrative expense.” See “Corporate Restructuring” above for additional information on the reduction in workforce.
Previous wording
At March 31, 2026, there was $97.4 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.1 years.
Current wording
At June 30, 2026, there was $66.8 million of unrecognized stock-based compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 1.4 years.
Previous wording
•People Inc. Adjusted EBITDA decreased 46% to $43.5 million due to an increase in Adjusted EBITDA loss of $37.3 million from Other (unallocated corporate costs) and a decrease in Adjusted EBITDA of $7.9 million from Print, partially offset by an increase in Adjusted EBITDA of $8.4 million from Digital.
Current wording
•People Inc. Adjusted EBITDA increased 5% to $73.3 million due principally to an increase in Adjusted EBITDA of $11.2 million from Digital, partially offset by a decrease in Adjusted EBITDA of $7.3 million from Print.
Previous wording
◦The Digital Adjusted EBITDA increase was due primarily to higher revenue, partially offset by increases in advertising and events production expense and AI service costs.
Current wording
◦The Digital Adjusted EBITDA increase was due primarily to higher revenue and expense leverage.
Previous wording
Interest expense in 2026 decreased from 2025 due primarily to both decreases in the amount of debt outstanding and interest rates under the Term Loans, partially offset by interest expense on the 2032 Notes.
Current wording
Interest expense in 2026 decreased from 2025 due primarily to both decreases in the amount of debt outstanding and interest rates under the Term Loans, partially offset by interest expense on the 2032 Notes and the inclusion of a $8.5 million extinguishment loss in the second quarter of 2025 in connection with the refinancing of the People Inc. debt.
Previous wording
At March 31, 2026, the Company owns 66.8 million common shares of MGM, including 1.0 million common shares purchased in the first quarter of 2026 for $37.2 million, which represents approximately 26.1% of MGM's common shares outstanding. The Company accounts for its investment in MGM under the equity method of accounting using the fair value option. The fair value of the investment in MGM is remeasured each reporting period based upon MGM’s closing stock price on the New York Stock Exchange on the last trading day in the reporting period; any unrealized pre-tax gains or losses are included in the statement of operations.
Current wording
At June 30, 2026, the Company owns 66.8 million common shares of MGM, including 1.0 million common shares purchased in the first quarter of 2026 for $37.2 million, which represents approximately 26.6% of MGM's common shares outstanding. The Company accounts for its investment in MGM under the equity method of accounting using the fair value option. The fair value of the investment in MGM is remeasured each reporting period based upon MGM’s closing stock price on the New York Stock Exchange on the last trading day in the reporting period; any unrealized pre-tax gains or losses are included in the statement of operations.
Previous wording
See “Note 2—Financial Instruments and Fair Value Measurements” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information on the voting agreement the Company entered into with MGM and Barry Diller on April 3, 2026.
Current wording
See “Note 2—Financial Instruments and Fair Value Measurements” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information on the Company’s investment in MGM.
Previous wording
In 2026, the effective income tax rate is higher than the statutory rate of 21% due primarily to state taxes, including an adjustment to deferred state income taxes resulting from the sale of Care.com, and non-deductible compensation expense, partially offset by research credits.
Current wording
In 2025, the effective income tax rate is higher than the statutory rate of 21% due primarily to state taxes, a deferred tax adjustment and non-deductible compensation expense, partially offset by the realization of a capital loss.
Previous wording
In 2025, the effective income tax rate is lower than the statutory rate of 21% due primarily to non-deductible compensation expense, partially offset by research credits and non-taxable stock-based compensation expense, which was reversed due to the forfeiture of our former CEO’s restricted stock award pursuant to the Employment Transition Agreement.
Current wording
In 2025, the effective income tax rate is lower than the statutory rate of 21% due primarily to a deferred tax adjustment, non-taxable stock-based compensation expense, which included a reversal due to the forfeiture of our former CEO’s restricted stock award pursuant to the Employment Transition Agreement, and state taxes, partially offset by research credits.
Previous wording
Net earnings attributable to noncontrolling interests
Current wording
Net (earnings) loss attributable to noncontrolling interests
Previous wording
Net earnings attributable to noncontrolling interests in 2026 primarily represents the allocation of earnings related to a business in Emerging & Other. Net earnings attributable to noncontrolling interests in 2025 primarily represents the publicly-held interest in Angi’s earnings prior to the Distribution, which was completed on March 31, 2025.
Current wording
Net (earnings) loss attributable to noncontrolling interests in 2026 primarily represents the allocation of earnings related to a business in Emerging & Other. Net earnings attributable to noncontrolling interests in 2025 primarily represents the publicly-held interest in Angi’s earnings prior to the Distribution, which was completed on March 31, 2025.
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Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
•People Inc. revenue decreased $18.0 million, or 2%, to $802.4 million, despite the increase of $33.0 million, or 7%, from Digital, net of intersegment eliminations, due to a decrease of $51.1 million, or 16%, from Print.
Current report — wording carried from elsewhere
In 2026, the effective income tax rate is higher than the statutory rate of 21% due primarily to state taxes.
Current report — wording carried from elsewhere
In 2026, the effective income tax rate is higher than the statutory rate of 21% due primarily to state taxes.
Current report — wording carried from elsewhere
Gains and losses from lease impairments, terminations and amendments and certain asset sales relate to certain activity to surrender leased space prior to its original lease expiration and the sale of certain assets. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance.
Current report — wording carried from elsewhere
Share repurchases can be made over an indefinite period of time in the open market and in privately negotiated transactions, depending on those factors management deems relevant at any particular time, including, without limitation, market conditions, price and future outlook.