Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 39 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during ...

Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 39 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during ...

Group 1 - AMC Networks is currently trading at all-time lows due to a heavy debt-load and challenges from cord-cutting trends in their legacy business segment [1] - The company has been highlighted in investment discussions, with notable buy recommendations made in September and November 2023, indicating potential interest from investors [1] - The article mentions a specific acquisition of another company (ADTH) at $3.21 per share, which may reflect broader market trends and investor sentiment [1] Group 2 - The article emphasizes the importance of conducting personal research before making investment decisions, indicating a focus on educational content [2] - It clarifies that past performance is not indicative of future results, suggesting a cautious approach to investment evaluations [3] - The article notes that the views expressed may not represent the entire platform, highlighting the diversity of opinions among analysts [3]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents AMC Networks Inc.'s unaudited condensed consolidated financial statements for Q2 2025, including balance sheets, income statements, cash flows, and detailed accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets increased to **$4.42 billion**, cash and cash equivalents rose to **$866.4 million**, and long-term debt decreased to **$2.13 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,421,567** | **$4,362,221** | | Cash and cash equivalents | $866,407 | $784,649 | | Program rights, net | $1,729,327 | $1,713,952 | | **Total Liabilities** | **$3,354,830** | **$3,422,080** | | Long-term debt, net | $2,127,822 | $2,328,719 | | **Total Stockholders' Equity** | **$1,007,707** | **$884,260** | [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) AMC Networks reported Q2 2025 net income of **$50.3 million**, a significant turnaround from a **$29.2 million** net loss in Q2 2024, despite a **4.1%** revenue decrease, with six-month net income reaching **$68.3 million** Q2 Financial Performance (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues, net | $600,024 | $625,934 | | Operating income | $64,469 | $10,788 | | Net income (loss) attributable to stockholders | $50,289 | $(29,234) | | Diluted EPS | $0.91 | $(0.66) | Six-Month Financial Performance (in thousands, except per share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenues, net | $1,155,257 | $1,222,395 | | Operating income | $128,666 | $120,966 | | Net income attributable to stockholders | $68,338 | $16,569 | | Diluted EPS | $1.25 | $0.37 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for H1 2025 was **$211.6 million**, a decrease from **$255.3 million** in H1 2024, while net cash used in financing activities significantly increased to **$126.2 million** due to debt and treasury stock repurchases Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $211,596 | $255,272 | | Net cash used in investing activities | $(22,360) | $(12,022) | | Net cash used in financing activities | $(126,230) | $(5,922) | | **Net increase in cash** | **$63,006** | **$237,328** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's Domestic and International segments, updated revenue recognition, **$8.3 million** in H1 2025 restructuring charges, significant debt management, and ongoing 'The Walking Dead' litigation - The company operates through two segments: Domestic Operations (including programming networks like AMC, streaming services like AMC+, and AMC Studios) and International (AMCNI)[23](index=23&type=chunk)[30](index=30&type=chunk) - In Q1 2025, the company updated its definitions of 'affiliate revenues' and 'streaming revenues' to better classify fees from distributors who bundle streaming services with traditional programming networks[32](index=32&type=chunk)[33](index=33&type=chunk) - Restructuring charges of **$8.3 million** were recorded in H1 2025, primarily related to the wind-down of a U.K. joint venture and streamlining operations in Southern Europe within the International segment[44](index=44&type=chunk) - The company is involved in ongoing 'MFN Litigation' with producers of 'The Walking Dead', who claim over **$200 million** in damages related to a prior settlement with Frank Darabont. The trial is scheduled for March 2026[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **5.5%** decline in consolidated revenues for H1 2025, driven by decreases in advertising and subscription revenues, detailing segment performance, liquidity, and recent debt management activities Consolidated Financial Highlights (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenues, net | $1,155,257 | $1,222,395 | | Operating Income | $128,666 | $120,966 | | Adjusted Operating Income | $213,871 | $301,931 | [Consolidated Results of Operations](index=33&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 total revenues fell **4.1%** to **$600.0 million**, primarily due to a **20.4%** drop in advertising revenue, while operating income surged to **$64.5 million** due to the absence of prior-year impairment charges Q2 2025 vs Q2 2024 Revenue Breakdown (in thousands) | Revenue Stream | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Subscription | $367,428 | $372,180 | (1.3)% | | Advertising | $148,609 | $186,723 | (20.4)% | | Content licensing and other | $83,987 | $67,031 | 25.3% | | **Total revenues, net** | **$600,024** | **$625,934** | **(4.1)%** | - The significant increase in operating income in Q2 2025 was primarily due to the absence of a **$96.8 million** impairment charge that was recorded in Q2 2024[141](index=141&type=chunk)[162](index=162&type=chunk) - A gain on extinguishment of debt of **$25.7 million** was recognized in Q2 2025 from repurchasing **$99.1 million** of Senior Notes at a discount[141](index=141&type=chunk)[167](index=167&type=chunk) [Segment Results of Operations](index=38&type=section&id=Segment%20Results%20of%20Operations) Domestic Operations saw a **2.1%** revenue decline in Q2 2025 despite a **12.5%** increase in streaming revenue, while International revenue fell **16.2%**, leading to decreased adjusted operating income for both segments Domestic Operations Performance - Q2 2025 (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenues, net | $526,853 | $538,291 | (2.1)% | | Segment adjusted operating income | $126,339 | $155,348 | (18.7)% | - Domestic streaming revenues grew **12.5%** to **$169.0 million** in Q2 2025, driven by price increases. Streaming subscribers reached **10.4 million** at June 30, 2025[179](index=179&type=chunk)[180](index=180&type=chunk) International Performance - Q2 2025 (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenues, net | $75,535 | $90,095 | (16.2)% | | Segment adjusted operating income | $14,737 | $29,265 | (49.6)% | - International advertising revenue decline was primarily due to a one-time **$13.4 million** retroactive adjustment recognized in Q2 2024[192](index=192&type=chunk)[199](index=199&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$866.4 million** in cash, was compliant with debt covenants at a **4.45:1.00** net leverage ratio, and issued **$400 million** in new Senior Secured Notes in July 2025 to fund debt tenders - The company held **$866.4 million** in cash and cash equivalents as of June 30, 2025[201](index=201&type=chunk) - The company was in compliance with its debt covenants, with a total net leverage ratio of approximately **4.45:1.00** and an interest coverage ratio of approximately **2.46:1.00**[205](index=205&type=chunk) - Subsequent to the quarter end, on July 3, 2025, the company issued **$400 million** of **10.500%** Senior Secured Notes due 2032. Proceeds were used to tender for **$600 million** of existing Senior Notes and repay other borrowings[209](index=209&type=chunk) - Under its stock repurchase program, the company bought back **1.6 million** shares for approximately **$10.3 million** in H1 2025. **$124.9 million** of authorization remained as of June 30, 2025[211](index=211&type=chunk)[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates and foreign currency fluctuations, with **85%** of debt at fixed rates, and a **100 basis point** interest rate increase would raise annual interest expense by **$3.3 million** on variable-rate debt - A hypothetical **100 basis point** increase in interest rates would increase annual interest expense by **$3.3 million** on the company's **$329.4 million** of variable-rate debt[233](index=233&type=chunk) - The company recognized foreign currency transaction gains of **$16.7 million** for the six months ended June 30, 2025, compared to losses of **$3.9 million** in the prior year period[236](index=236&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[238](index=238&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[239](index=239&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the financial statements for a detailed description of the company's legal proceedings, which includes ongoing litigation related to 'The Walking Dead' franchise - For details on legal proceedings, the report refers to Note 14 in the financial statements[240](index=240&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor is the potential for the Trump administration to impose tariffs on movies produced outside the U.S., which could materially increase production costs and adversely affect financial results - A key risk factor discussed is the potential for the Trump administration to impose tariffs on movies produced outside the U.S., which could materially increase production costs and adversely affect financial results[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **1,594,254** shares of Class A Common Stock, with **$124.9 million** remaining authorized for future repurchases under the program as of June 30, 2025 Q2 2025 Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 1,194,254 | $6.42 | | June 2025 | 400,000 | $6.65 | | **Total Q2** | **1,594,254** | **N/A** | - As of June 30, 2025, **$124.9 million** remained authorized for repurchase under the company's stock buyback program[243](index=243&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including incorporation by reference of articles of incorporation, bylaws, and debt indentures, as well as certifications from the CEO and CFO

Core Viewpoint - AMC Networks is facing ongoing challenges in the cable network industry but does not plan to sell or spin off its assets like some competitors [1][2]. Company Performance - AMC Networks reported a revenue decline to $600 million from $625.9 million year-over-year, despite exceeding analysts' forecasts [5]. - The company experienced an 18% year-over-year decline in advertising revenue, totaling $123 million, attributed to linear ratings declines and lower marketplace pricing [10]. - Affiliate revenue decreased by 12% to $151 million, due to basic subscriber declines and contractual rate decreases [9]. - Streaming revenue increased by 12% year-over-year to $169 million, with a slight increase in subscribers to 10.4 million [9]. Financial Outlook - The company anticipates strong cash flow, projecting it to reach $250 million this year [4]. - Despite a 6% drop in shares initially, the stock later rose by 21% on above-average trading volume, although it has fallen more than 25% year-to-date [4]. Strategic Positioning - AMC Networks differentiates itself from competitors like Versant and Warner Bros. Discovery by emphasizing its streaming business, which is expected to comprise the majority of revenue by 2025 [2]. - The CFO highlighted the company's diverse assets, including a studio and a robust streaming portfolio, which work synergistically [6]. - The Dolan family's control over AMC Networks suggests motivations beyond purely financial considerations, as the company is a smaller part of a larger empire that includes valuable assets like Madison Square Garden [7].

Core Insights - AMC Networks is actively pursuing AI integration through a partnership with Runway, emphasizing that this initiative is a technology play rather than a threat to intellectual property or creative partnerships [1][3] - The entertainment industry is navigating the complexities of AI adoption amid union sensitivities, with AMC Networks being more open about its AI strategies compared to other media companies [2] Group 1: AI Integration and Strategy - The partnership with Runway aims to enhance creative processes, allowing teams to visualize ideas and reduce costs in production, particularly in post-production for the 30 to 50 episodes produced annually [3][4] - AMC Networks positions itself as an early adopter of AI technologies, leveraging them to support showrunners and improve the ideation process [3][4] Group 2: Industry Context and Reactions - The use of AI in Hollywood has been contentious, especially following the 2023 strikes, with companies like Disney and NBCUniversal taking legal action against AI firms for alleged misuse of proprietary content [2] - Proponents of AI argue that it can enhance the quality of films and series while also creating new job opportunities, despite concerns about job displacement [1][2]

Financial Data and Key Metrics Changes - The company reported a second quarter consolidated net revenue decline of 4% year over year to $600 million, with foreign exchange rates providing a 60 basis point tailwind to revenue growth [20][21] - Consolidated AOI decreased by 28% to $109 million, with an 18% margin, and adjusted EPS was $0.69 per share [20][21] - Free cash flow for the second quarter totaled $96 million, leading to an increased full-year free cash flow outlook of approximately $250 million [6][20] Business Line Data and Key Metrics Changes - Domestic operations revenue decreased by 2% to $527 million, with subscription revenue down 1% due to a 12% decline in affiliate revenue, partially offset by a 12% growth in streaming revenue [21] - Streaming subscribers grew by 2% year over year, ending the quarter with 10.4 million subscribers [21] - Content licensing revenue for the quarter was $84 million, reflecting the timing and availability of deliveries [23] Market Data and Key Metrics Changes - International revenues for the second quarter were $76 million, with subscription revenue excluding foreign exchange decreasing by 9% due to a non-renewal with Movistar in Spain [25] - Advertising revenue in domestic operations decreased by 18% year over year due to linear rating declines and lower marketplace pricing [22] Company Strategy and Development Direction - The company continues to focus on programming, partnerships, and profitability, aiming to build and grow fan communities around high-quality content [6][7] - The strategy includes expanding targeted streaming services and leveraging fan engagement to drive viewership and subscriptions [8][10] - The company is adapting its success in FAST channels internationally, with plans to launch additional channels in various markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive free cash flow and maintain a strong balance sheet while navigating a challenging media landscape [30][31] - The company anticipates that the third quarter will represent the lowest licensing revenue quarter for the year, with a recovery expected in the fourth quarter [23][29] - Management highlighted the importance of cash tax savings and programming efficiencies in improving free cash flow guidance [36][38] Other Important Information - The company has reduced gross debt by over $400 million this year, including the retirement of $699 million of unsecured senior notes at a significant discount [26][27] - The company is exploring the use of generative AI in marketing and programming development through a partnership with Runway [16][17] Q&A Session Summary Question: Can you elaborate on the source of the free cash flow upside? - Management indicated that the largest factor for the increase in free cash flow guidance is cash tax savings, with modest savings across programming also contributing [36][38] Question: How do you view the trends in advertising and affiliate revenue? - Management noted strong performance in content licensing, with some weakness in advertising, but maintained confidence in affiliate relationships [39][41] Question: Can you provide details on the Runway partnership? - The partnership with Runway is aimed at facilitating creative work, allowing teams to visualize ideas and enhance production efficiency without integrating IP [43][45] Question: What are the expectations for subscription revenue growth? - Management expressed optimism about sustainable subscription revenue growth, particularly in streaming, with recent programming resonating well with audiences [51][52] Question: How is the company thinking about capital allocation and potential splits of assets? - Management emphasized a consistent capital allocation philosophy focused on content investment and debt reduction, while recognizing the value of the company's diverse assets [77][82]

Group 1: Earnings Performance - AMC Networks reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $1.24 per share a year ago, representing an earnings surprise of +27.78% [1] - The company posted revenues of $600.02 million for the quarter, surpassing the Zacks Consensus Estimate by 2.39%, but down from $625.93 million year-over-year [2] - Over the last four quarters, AMC Networks has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - AMC Networks shares have declined approximately 39.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $573.64 million, and for the current fiscal year, it is $2.64 on revenues of $2.29 billion [7] Group 3: Industry Context - The Broadcast Radio and Television industry, to which AMC Networks belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AMC Networks' stock performance [5][6]

Core Insights - AMC Networks reported Q2 fiscal 2025 results with GAAP revenue of $600 million, exceeding analyst expectations of $582.37 million, while adjusted EPS was $0.69, beating projections of $0.61 [1][5] - The company raised its free cash flow outlook for 2025 to approximately $250 million, reflecting successful cost management efforts [1][9] Financial Performance - Adjusted EPS decreased 44.4% to $0.69 compared to $1.24 in Q2 2024 [2][5] - Revenue declined 4.1% year-over-year from $625.9 million in Q2 2024 [2][5] - Adjusted operating income fell 28.4% to $109.4 million compared to $152.8 million in the previous year [2][5] - Streaming revenues increased 12% year-over-year to $169 million, primarily driven by price increases rather than significant subscription growth [2][6] Business Strategy and Focus - AMC Networks focuses on niche and genre audiences through its brands like AMC, Acorn TV, Shudder, and AMC+, emphasizing original content and intellectual property [3][11] - The company aims to grow its streaming platforms, optimize advertising technologies, and maintain financial discipline [4][13] Revenue Streams and Challenges - Traditional revenue streams faced declines, with domestic affiliate revenue down 12% and domestic advertising revenue dropping 18% to $123 million [7] - International segment revenue fell 16%, with adjusted operating income down nearly 50%, attributed to the non-renewal of a Spanish distribution agreement [8][14] Future Outlook - Management did not provide updated guidance for revenue or adjusted operating income but previously targeted $2.3 billion in consolidated revenue [15] - Key areas to monitor include the pace of declines in affiliate and advertising revenue, growth in streaming and content licensing, and sustainability of cash flow improvements [16]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) AMC Networks reported a 4.1% decrease in Q2 2025 net revenues to $600 million, but saw a significant increase in operating income, highlighting accelerated streaming revenue growth, strength in content licensing, and healthy free cash flow - CEO Kristin Dolan emphasized the company's strategy focusing on programming, partnerships, and profitability, leading to accelerated streaming revenue growth and strong free cash flow generation[2](index=2&type=chunk) Q2 2025 Consolidated Financial Results (dollars in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $600,024 | $625,934 | (4.1)% | | **Operating Income** | $64,469 | $10,788 | n/m | | **Adjusted Operating Income** | $109,386 | $152,807 | (28.4)% | | **Diluted Earnings Per Share** | $0.91 | $(0.66) | n/m | | **Adjusted Earnings Per Share** | $0.69 | $1.24 | (44.4)% | | **Free Cash Flow** | $95,741 | $95,165 | 0.6% | - Operational progress includes **25%+ growth in digital advertising commitments**, launch of **11 new FAST channels**, renewal of NCTC affiliate agreement, and a new partnership with Runway to incorporate AI into development processes[6](index=6&type=chunk) - The company strengthened its balance sheet by reducing gross debt by approximately **$400 million** and capturing **$138 million** of debt discount since March 31, 2025[6](index=6&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The company's performance varied by segment, with Domestic Operations seeing a slight revenue decrease offset by streaming and content licensing growth, while International Operations experienced a more significant revenue drop due to prior-year adjustments and non-renewals [Domestic Operations](index=2&type=section&id=Domestic%20Operations) Domestic Operations revenue decreased 2% to $527 million, as a 12% increase in streaming revenue and a 26% rise in content licensing were not enough to offset declines in advertising and affiliate revenue, leading to a 19% fall in Segment Adjusted Operating Income Domestic Operations Q2 Performance (dollars in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $526,853 | $538,291 | (2.1)% | | **Segment Adjusted Operating Income** | $126,339 | $155,348 | (18.7)% | - Streaming revenues grew **12% to $169 million**, mainly due to price increases, with streaming subscribers increasing **2% year-over-year to 10.4 million**[11](index=11&type=chunk) - Linear business headwinds included an **18% decrease in advertising revenues** due to ratings declines and lower pricing, and a **12% decrease in affiliate revenues** from subscriber declines[11](index=11&type=chunk) - Content licensing revenues increased **26% to $84 million**, boosted by the timing of deliveries, the sale of a music catalog, and fees related to Apple TV+'s "Silo"[11](index=11&type=chunk) [International Operations](index=2&type=section&id=International%20Operations) International revenues fell 16% to $76 million, heavily impacted by a $13.4 million retroactive advertising adjustment in the prior-year quarter and the non-renewal of a distribution agreement in Spain, resulting in a 50% decrease in Segment Adjusted Operating Income International Operations Q2 Performance (dollars in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $75,535 | $90,095 | (16.2)% | | **Segment Adjusted Operating Income** | $14,737 | $29,265 | (49.6)% | - Prior period advertising revenues included a one-time **$13.4 million retroactive adjustment**, and excluding this and currency impacts, International revenues decreased **6%**[12](index=12&type=chunk) - Subscription revenues decreased **5% to $47 million**, primarily due to the non-renewal of a distribution agreement in Spain during Q4 2024[12](index=12&type=chunk) [Capital Management and Shareholder Returns](index=3&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) The company actively managed its capital structure in Q2 and July 2025 by issuing new Senior Secured Notes, tendering and repurchasing existing notes at a discount, and making a debt prepayment, which collectively reduced gross debt by approximately $400 million, while also repurchasing 1.6 million shares - Completed a series of financing transactions that extended debt maturity, reduced gross debt by approximately **$400 million**, and captured approximately **$138 million** in debt discount since March 31, 2025[13](index=13&type=chunk) - Key transactions include issuing **$400 million** of 10.50% Senior Secured Notes due 2032, tendering **$600 million** of 4.25% Senior Notes due 2029 at a **$111 million discount**, and repurchasing **$99 million** of the same notes at a **$27 million discount**[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Repurchased **1.6 million shares** of Class A Common Stock at an average price of **$6.48 per share** in Q2, with **$125 million** remaining authorized for future repurchases[18](index=18&type=chunk) [Outlook](index=1&type=section&id=Outlook) AMC Networks has raised its full-year 2025 guidance for free cash flow, reflecting confidence in its operational execution and financial management - The company increased its free cash flow outlook for the full year 2025 and now expects approximately **$250 million**[2](index=2&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance, showing a significant turnaround to a net income of $50.3 million for Q2 2025, driven by lower impairment charges and a gain on debt extinguishment, alongside a strong balance sheet and cash flow from operations - Q2 2025 Net Income attributable to stockholders was **$50.3 million**, compared to a Net Loss of **$29.2 million** in Q2 2024, largely due to the absence of a **$96.8 million impairment charge** and a **$25.7 million gain on extinguishment of debt**[30](index=30&type=chunk) - For the six months ended June 30, 2025, net cash provided by operating activities was **$211.6 million**, a decrease from **$255.3 million** in the prior year period, primarily due to changes in program rights and obligations[31](index=31&type=chunk) - As of June 30, 2025, the company held **$866.4 million in cash and cash equivalents** and had total debt (net) of **$2.13 billion**[33](index=33&type=chunk) [Supplemental Information & Non-GAAP Reconciliations](index=4&type=section&id=Supplemental%20Information%20%26%20Non-GAAP%20Reconciliations) This section provides definitions for non-GAAP measures and detailed reconciliations to GAAP equivalents, along with the company's capitalization as of June 30, 2025, and a pro forma view adjusted for July 2025 financing activities, showing a reduced leverage ratio - The company defines and uses non-GAAP measures such as Adjusted Operating Income (AOI), Free Cash Flow (FCF), and Adjusted EPS to evaluate business performance[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Pro Forma Capitalization and Leverage (As Adjusted June 30, 2025, in thousands) | Metric | June 30, 2025 | As Adjusted | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $866,407 | $699,690 | $(166,717) | | **Total Debt** | $2,233,991 | $1,963,991 | $(270,000) | | **Net debt** | $1,367,584 | $1,264,301 | $(103,283) | | **Leverage ratio** | 2.9x | 2.7x | (0.2x) | Reconciliation of Operating Income to Adjusted Operating Income (Q2, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating income (GAAP)** | $64,469 | $10,788 | | Share-based compensation | $8,043 | $8,457 | | Depreciation and amortization | $26,446 | $26,493 | | Restructuring charges | $3,529 | $2,931 | | Impairment and other charges | — | $96,819 | | Other adjustments | $6,899 | $7,319 | | **Adjusted operating income (Non-GAAP)** | $109,386 | $152,807 | Reconciliation of Diluted EPS to Adjusted EPS (Q2 2025, per share) | Metric | Amount | | :--- | :--- | | **Reported Diluted EPS (GAAP)** | $0.91 | | Amortization of intangibles | $0.10 | | Restructuring charges | $0.03 | | Gain on extinguishment of debt | $(0.35) | | **Adjusted EPS (Non-GAAP)** | $0.69 |