New York, NY – August 8, 2025: AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX) today reported financial results for the second quarter ended June 30, 2025.
Chief Executive Officer Kristin Dolan said: “We are executing our clear strategic plan focused on programming, partnerships and profitability. We remain committed to delivering high-quality and distinctive series and films to our engaged fans across all platforms, including the best collection of targeted streaming services in the world. In the second quarter, we saw streaming revenue growth accelerate, strength in content licensing and continued healthy free cash flow generation. We are increasing our free cash flow outlook for 2025 and now expect approximately $250 million of free cash flow for the full year.”
Operational Highlights:
- Capitalizing on continued advertising innovation in our current Upfront negotiations with 25%+ growth in digital commitments and trending toward overall volumes consistent with the prior year.
- Continued expansion of our FAST channels business with the launch of 11 FAST channels on TCLtv+ and introduction of two new FAST channels, Acorn TV Mysteries and Love After Lockup.
- Renewed long-term affiliate agreement with the National Content & Technology Cooperative (NCTC).
- Continued momentum in Amazon Prime Video Channels streaming bundles including AMC+ bundles with Acorn TV, Discovery+, Starz and MGM+ in market in 2Q and the new launch of an Acorn TV and MGM+ bundled offering.
- Announced partnership with Runway to incorporate Runway’s AI models and tools in AMC Networks’ marketing and programming development processes.
- Inaugural “Murder Mystery May” programming event drove Acorn TV’s biggest month ever, with record engagement, viewership and a multi-year high in subscriber acquisition.
- Renewed multiple series in The Walking Dead Universe franchise for new seasons including The Walking Dead: Dead City and The Walking Dead: Daryl Dixon.
- Theatrical debut of Clown in a Cornfield delivered the largest opening weekend and widest screen count in the Company’s history. The popular title premieres on our Shudder streaming service today.
- Strengthened our balance sheet through a series of financing transactions in the second quarter and July. Extended debt maturity profile, reduced gross debt by approximately $400 million and captured $138 million of debt discount since March 31, 2025.
Financial Highlights – Second Quarter Ended June 30, 2025:
- Net cash provided by operating activities of $103 million; Free Cash Flow(1) of $96 million.
- Operating income of $64 million; Adjusted Operating Income(1) of $109 million, with a margin of 18%.
- Net revenues of $600 million decreased 4% from the prior year. Foreign currency translation represented an approximately 60 bps beneficial impact to our second quarter revenue growth rate.
- Streaming revenues of $169 million increased 12% from the prior year.
- Diluted EPS of $0.91; Adjusted EPS(1) of $0.69.
Segment Results:
Domestic Operations:
Second Quarter Results
- Domestic Operations revenues decreased 2% from the prior year to $527 million.
- Subscription revenues decreased 1% to $320 million due to declines in the linear subscriber universe, partially offset by streaming revenue growth.
- Streaming revenues increased 12% to $169 million primarily due to the impact of price increases across our services.
- Streaming subscribers increased 2% to 10.4 million as compared to 10.2 million subscribers at June 30, 2024 and March 31, 2025.
- Affiliate revenues declined 12% to $151 million primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals.
- Streaming revenues increased 12% to $169 million primarily due to the impact of price increases across our services.
- Content licensing revenues increased 26% to $84 million primarily due to the timing and availability of deliveries in the period. Revenues in the quarter included the sale of our music catalog and executive producer fees related to Apple TV+’s
- Advertising revenues decreased 18% to $123 million primarily due to linear ratings declines and lower marketplace pricing, including digital CPMs.
- Subscription revenues decreased 1% to $320 million due to declines in the linear subscriber universe, partially offset by streaming revenue growth.
- Segment Adjusted Operating Income decreased 19% to $126 million, with a margin of 24%. The decrease in Segment Adjusted Operating Income was primarily driven by revenue headwinds in our linear businesses, partially offset by strength in streaming and content licensing revenue.
International:
Second Quarter Results
- International revenues decreased 16% from the prior year to $76 million. Prior period advertising revenues included the recognition of a $13.4 million retroactive adjustment reported by a third party in the second quarter of 2024. Excluding the retroactive adjustment in the prior period and the favorable impact of foreign currency translation in the current period, International revenues decreased 6%.
- Subscription revenues decreased 5% to $47 million primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the favorable impact of foreign currency translation. Excluding the favorable impact of foreign currency translation, subscription revenues decreased 9%.
- Advertising revenues decreased 31% to $26 million due to the recognition of a $13.4 million retroactive adjustment reported by a third party in the second quarter of 2024, partially offset by the favorable impact of foreign currency translation. Excluding the retroactive adjustment in the prior period and the favorable impact of foreign currency translation in the current period, advertising revenues increased 2%.
- Segment Adjusted Operating Income decreased 50% to $15 million, with a margin of 20%. The decrease in Segment Adjusted Operating Income was primarily due to the recognition of a $13.4 million retroactive adjustment reported by a third party in the second quarter of 2024 and the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024. Excluding the retroactive adjustment in the prior period and the favorable impact of foreign currency translation in the current period, Segment Adjusted Operating Income decreased 15%.
Recent Financing Activity
AMC Networks completed a series of financing transactions in the second quarter and in July 2025 including the issuance of $400 million of new 10.50% Senior Secured Notes due 2032 (the “Senior Secured Notes”), the tender offer for $600 million of 4.25% Senior Notes due 2029 (the “Senior Notes”), open market repurchases of $99 million of Senior Notes and the voluntary prepayment of $90 million of borrowings under the Senior Secured Credit Facility. Since March 31, 2025 the Company has reduced gross debt outstanding by approximately $400 million and captured approximately $138 million of debt discount. See page 10 for the adjusted capitalization taking account of transactions that closed subsequent to the end of the second quarter.
10.50% Senior Secured Notes due 2032
- In July, the Company issued $400 million aggregate principal amount of 10.50% Senior Secured Notes due 2032. The Notes are guaranteed by AMC Network Entertainment and AMC Networks’ subsidiaries that guarantee the Credit Agreement.
Tender Offer for 4.25% Senior Notes due 2029
- In July, the Company utilized proceeds from the offering of the Senior Secured Notes and existing cash on hand, to complete a cash tender offer to purchase $600 million aggregate principal amount of its Senior Notes at a discount of $111 million.
Open Market Repurchases of 4.25% Senior Notes due 2029
- During the second quarter of 2025, the Company repurchased $99 million principal amount of its Senior Notes through open market repurchases and privately negotiated transactions, at a discount of $27 million, and retired the repurchased notes.
Voluntary Prepayment of Borrowings Under the Senior Secured Credit Facility
- During 2025, the Company voluntarily prepaid the remaining $90 million of borrowings under the Term Loan A Facility (non-extended), $20 million of which was paid in the second quarter of 2025 and $70 million of which was paid in July 2025 in connection with the Senior Secured Notes offering.
Other Matters
Stock Repurchase Program & Outstanding Shares
The Company repurchased 1.6 million shares of its Class A Common Stock at an average purchase price of $6.48 per share in the second quarter. As of June 30, 2025, the Company had $125 million of authorization remaining for repurchase under the Stock Repurchase Program.
As of August 1, 2025, the Company had 31,899,405 shares of Class A Common Stock and 11,484,408 shares of Class B Common Stock outstanding.
Please see the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2025, which will be filed later today, for further details regarding the above matters.
Description of Non-GAAP Measures
Internally, the Company uses Adjusted Operating Income (Loss) and Free Cash Flow measures as the most important indicators of its business performance and evaluates management’s effectiveness with specific reference to these indicators.
The Company defines Adjusted Operating Income (Loss), which is a non-GAAP financial measure, as operating income (loss) before share-based compensation expense or benefit, depreciation and amortization, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges, cloud computing amortization, and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. From time to time, we may exclude the impact of certain events, gains, losses, or other charges (such as significant legal settlements) from AOI that affect our operating performance. Because it is based upon operating income (loss), Adjusted Operating Income (Loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the business without regard to the effect of the settlement of an obligation that is not expected to be made in cash.
The Company believes that Adjusted Operating Income (Loss) is an appropriate measure for evaluating the operating performance of the business segments and the Company on a consolidated basis. Adjusted Operating Income (Loss) and similar measures with similar titles are common performance measures used by investors, analysts, and peers to compare performance in the industry.
Adjusted Operating Income (Loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since Adjusted Operating Income (Loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to Adjusted Operating Income (Loss), please see page 11 of this release.
The Company defines Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, all of which are reported in our Consolidated Statement of Cash Flows. The Company believes the most comparable GAAP financial measure of its liquidity is net cash provided by operating activities. The Company believes that Free Cash Flow is useful as an indicator of its overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment, investment, and other discretionary and non-discretionary cash uses. The Company also believes that Free Cash Flow is one of several benchmarks used by analysts and investors who follow the industry for comparison of its liquidity with other companies in the industry, although the Company’s measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies. For a reconciliation of net cash provided by operating activities to Free Cash Flow, please see page 11 of this release.
The Company defines Adjusted Earnings per Diluted Share (“Adjusted EPS”), which is a non-GAAP financial measure, as earnings per diluted share excluding the following items: amortization of acquisition-related intangible assets; impairment and other charges (including gains or losses on sales or dispositions of businesses); non-cash impairments of goodwill, intangible and fixed assets; restructuring and other related charges; and the impact associated with the modification of debt arrangements, including gains and losses related to the extinguishment of debt; as well as the impact of taxes on the aforementioned items. The Company believes the most comparable GAAP financial measure is earnings per diluted share. The Company believes that Adjusted EPS is one of several benchmarks used by analysts and investors who follow the industry for comparison of its performance with other companies in the industry, although the Company’s measure of Adjusted EPS may not be directly comparable to similar measures reported by other companies. For a reconciliation of earnings per diluted share to Adjusted EPS, please see pages 12-13 of this release.
Forward-Looking Statements
This earnings release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
Conference Call Information
AMC Networks will host a conference call today at 8:30 a.m. ET to discuss its second quarter 2025 results. To listen to the call, please visit investors.amcnetworks.com.
About AMC Networks Inc.
AMC Networks (Nasdaq: AMCX) is home to many of the greatest stories and characters in TV and film and the premier destination for passionate and engaged fan communities around the world. The Company creates and curates celebrated series and films across distinct brands and makes them available to audiences everywhere. Its portfolio includes targeted streaming services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE; cable networks AMC, BBC AMERICA (which includes U.S. distribution and sales responsibilities for BBC News), IFC, SundanceTV and We TV; and film distribution labels Independent Film Company and RLJE Films. The Company also operates AMC Studios, its in-house studio, production and distribution operation behind acclaimed and fan-favorite original franchises including The Walking Dead Universe and the Anne Rice Immortal Universe; and AMC Networks International, its international programming business.
