Core Viewpoint - AMC Networks Inc. is soliciting consents from holders of its existing 10.50% Senior Secured Notes due 2032 to amend certain covenants in the indenture governing the Notes, allowing for specific financial maneuvers and investments [1][2]. Group 1: Proposed Amendments - The proposed amendments include allowing buybacks and other acquisitions of equity interests up to $50 million [1]. - The revision of the covenant regarding transfers or licenses of certain trademarks will only permit non-exclusive licenses to unrestricted subsidiaries [1]. - Investments in unrestricted subsidiaries will be restricted to certain specified clauses in the definition of "Permitted Investments" [1]. Group 2: Consent Solicitation Details - The consent solicitation will expire on February 23, 2026, at 5:00 p.m. New York City time [3]. - To approve the proposed amendments, the company needs the consents of at least a majority of the outstanding Notes, excluding those owned by the company or its affiliates [3][4]. - A cash payment, termed the "Consent Fee," totaling $2 million will be allocated pro rata among consenting holders of the Notes [5]. Group 3: Financial Implications - The aggregate principal amount of the outstanding Notes is $400 million, which means the Consent Fee could range from $5.00 to $10.00 per $1,000 principal amount depending on the number of valid consents received [5].

Acorn TV , which she described as having an “active and successful” 2025 and cited upcoming programming including You’re Killing Me starring and executive produced by Brooke Shields, plus additional installments of “An Autumn to Die For” and “Murder Mystery May.”HIDIVE , which Dolan said has achieved strong growth since AMC Networks acquired it four years ago, driven by anime’s rising popularity and the service’s curation.Sundance Now , which the company “relaunched” at the Sundance Film Festival as a home ...

AMC Networks (NasdaqGS:AMCX) Q4 2025 Earnings call February 11, 2026 04:30 PM ET Company ParticipantsKim Kelleher - Chief Commercial OfficerKristin Dolan - CEONick Seibert - Senior Vice President, Corporate Development and Investor RelationsPatrick O'Connell - CFOThomas Yeh - Executive Director in Equity ResearchConference Call ParticipantsDavid Joyce - Senior AnalystSteven Cahall - Senior AnalystOperatorGood day and thank you for standing by. Welcome to the AMC Networks fourth quarter 2025 earnings call. A ...

Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with adjusted operating income of $412 million and a margin of 18% [15] - Free cash flow reached $272 million, exceeding previous forecasts, with expectations of at least $200 million for 2026 [4][14] - Domestic operations revenue decreased by 5% to $2 billion for the full year, with a 1% decline in the fourth quarter [15] Business Line Data and Key Metrics Changes - Streaming revenue became the largest single source of domestic revenue, growing by 12% for the full year and 14% in the fourth quarter, offsetting declines in linear affiliate revenue [16] - Domestic advertising revenue decreased by 15% for the year and 10% for the fourth quarter, primarily due to linear ratings declines [17] - International revenue decreased by 4% for both the year and the quarter, with advertising revenues growing by 6% for the full year [18] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, with subscriber numbers remaining flat compared to the previous quarter and year [16] - The advertising market saw a significant influx of digital inventory, impacting pricing negatively in the first half of 2025, but recovery was noted in the latter half [29] Company Strategy and Development Direction - AMC Networks is focusing on a streaming-first strategy, enhancing its content offerings and leveraging partnerships to drive growth [4][9] - The company aims to maintain a strong balance sheet while investing in high-quality programming and reducing gross debt [20][23] - The acquisition of RLJ Entertainment is expected to simplify the business structure and enhance operational clarity [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the return of The Walking Dead rights as a significant opportunity for monetization [28] - The company anticipates stable domestic operations subscription revenue in 2026, despite linear revenue declines [21] - Management highlighted the importance of maintaining a healthy cash position and the expectation of continued free cash flow generation [19][22] Other Important Information - The company repurchased approximately 850,000 shares of Class A common stock for about $7.5 million in the fourth quarter [19] - AMC Networks has extended the majority of its revolving credit facility to 2030, improving its maturity profile [18] Q&A Session Summary Question: Advertising performance and expectations for 2026 - Management acknowledged that advertising performance was below expectations in 2025 but expressed confidence in a recovery strategy for 2026, focusing on digital and streaming [26][29] Question: Ad contribution from streaming and FAST channels - Management noted that digital advertising is a significant portion of revenue, with strong performance in Q4, and emphasized the importance of cross-platform buying [33][35] Question: Subscriber universe and cash spend on content - Management discussed the positive trends in affiliate revenue and the importance of continuing to invest in premium programming while maintaining free cash flow [40][42]

Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with consolidated adjusted operating income of $412 million, reflecting an 18% margin [15] - Free cash flow reached $272 million, exceeding previous forecasts, with expectations of at least $200 million for 2026 [4][14] - Domestic operations revenues decreased by 5% to $2 billion for the full year, with a 1% decrease in Q4 [15][16] Business Line Data and Key Metrics Changes - Streaming revenue became the largest single source of domestic revenue, growing by 12% for the full year and 14% in Q4, offsetting declines in affiliate revenue [16][17] - Domestic operations advertising revenue decreased by 15% for the year and 10% for Q4, primarily due to linear ratings declines [18] - International revenue decreased by 4% for both the year and the quarter, but advertising revenues grew by 6% for the full year and 4% for Q4 [19] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, flat compared to the previous year [17] - The advertising market saw a significant influx of digital inventory in early 2025, impacting pricing negatively, but recovery was noted in Q4 [31][32] Company Strategy and Development Direction - AMC Networks is focusing on a streaming-first strategy, enhancing its content offerings and leveraging partnerships to drive subscriber growth [4][10] - The company aims to maintain a strong balance sheet while investing in high-quality programming and reducing gross debt [20][21] - The return of streaming rights for "The Walking Dead" is seen as a significant opportunity for monetization [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strategy and the potential for growth in streaming and advertising despite challenges in linear revenue [12][14] - The company anticipates stable domestic operations subscription revenue for 2026, with continued growth in streaming revenue [22][24] - Management highlighted the importance of maintaining a healthy cash position and the expectation of generating at least $200 million in free cash flow for 2026 [20][24] Other Important Information - The company repurchased approximately 850,000 shares of Class A common stock for about $7.5 million in Q4 [20] - AMC Networks completed a transaction to acquire full ownership of RLJ Entertainment, simplifying its business structure [8][21] Q&A Session Summary Question: Advertising performance and expectations for 2026 - Management acknowledged that advertising performance was below expectations in 2025 but expressed confidence in a recovery strategy for 2026, focusing on digital and streaming platforms [28][31] Question: Ad contribution from streaming and FAST channels - Management indicated that digital advertising is a significant portion of revenue and that they are well-positioned to meet cross-platform buying needs [36][38] Question: Subscriber universe and affiliate revenue outlook - Management noted encouraging trends in affiliate revenue and emphasized successful renewals of affiliate agreements, while also addressing content spend and investment strategies for 2026 [41][43]

Subscriber Growth and Programming - As of December 31, 2025, AMC reached approximately 55 million subscribers across its programming networks and streaming services [31]. - AMC+ ended 2025 with approximately 10.4 million streaming subscribers, showcasing a strong growth trajectory [41]. - In 2025, Acorn TV's new series "Irish Blood" became the service's largest acquisition driver to date, contributing to a multi-year high in subscriber acquisition [43]. - The AMC programming network includes five channels and various streaming services, providing a diverse range of content to subscribers [30]. - AMC's partnership with TNA Wrestling has expanded its programming offerings, including the new home for "Thursday Night iMPACT" [35]. - In late 2025, the Company launched a new targeted streaming service, All Reality, featuring popular unscripted content, including the return of Bridezillas [51]. Content Production and Distribution - AMC's film distribution business includes brands like Independent Film Company, RLJE Films, and Shudder, focusing on quality and commercial content [48]. - AMC Studios has produced several critically acclaimed originals, including "The Walking Dead" and "Anne Rice's Interview with the Vampire," contributing to its reputation for high-quality programming [35]. - In 2026, AMC is set to introduce new series such as "The Audacity" and "Dark Winds" season 4, continuing its commitment to original content [32]. - Independent Film Company released 21 new theatrical films in 2025, showcasing its leadership in high-quality independent film distribution [52]. International Expansion - AMC's international programming businesses, AMCNI, distribute a portfolio of channels worldwide, enhancing its global reach [30]. - AMC+ is available in several international markets, including Canada, Spain, Australia, and New Zealand, reflecting its global expansion strategy [41]. - AMCNI launched four new pay-TV channels and six pop-up channels in Spain in 2025, expanding its service offerings in Southern Europe [56]. - The AMC Series linear channel was recently launched in Latin America, featuring over 650 hours of original series, enhancing AMC's regional channel lineup [58]. - AMCNI U.K. has partnerships with major streaming platforms, making a significant portion of its content library available through AVOD and FAST channels [55]. Financial Performance and Debt Management - The fair value of the company's fixed rate debt was $1.73 billion, exceeding its carrying value of $1.67 billion by $56.3 million [369]. - The company has $1.78 billion of debt outstanding, with $82.8 million subject to variable interest rates [370]. - A hypothetical 100 basis point increase in interest rates would raise the company's annual interest expense by approximately $0.8 million [370]. - The company recognized foreign currency transaction gains of $13.3 million for the year ended December 31, 2025 [373]. - The company engages in foreign currency contracts to manage exposure to fluctuations in foreign currency exchange rates [372]. - Approximately 95% of the company's debt is fixed rate as of December 31, 2025 [370]. Corporate Culture and Workforce - As of December 31, 2025, the company had a global workforce of 1,738 employees, with 1,675 being full-time employees [81]. - The company aims to attract and retain talent through competitive rewards and professional growth opportunities [82]. - The company emphasizes a positive, inclusive, and collaborative corporate culture to enhance employee engagement [82]. - The company supports community impact through philanthropic efforts and matches employee donations [88]. Regulatory and Competitive Environment - The Company faces intense competition in programming services, competing for distribution and viewer engagement against larger publicly held companies [70]. - Regulatory compliance is a significant aspect of the Company's operations, affecting its programming and distribution strategies [59]. - The Company is focused on increasing content licensing revenues by expanding opportunities through various media platforms [76].

Core Insights - AMC Networks reported mixed fourth quarter results, with total revenue of $595 million, a 1% decline year-over-year, and adjusted earnings per share of 64 cents, falling short of Wall Street expectations of $581.8 million in revenue and 66 cents in earnings [1] - Streaming services have become a significant revenue source, generating $177 million in the quarter, marking a 14% year-over-year increase, surpassing revenue from traditional cable networks [2][3] - The total subscriber count for AMC's streaming services, including AMC+, Shudder, and Acorn TV, remained flat at 10.4 million as of the end of 2025 [3] Revenue and Advertising - Domestic ad revenue decreased by 10% year-over-year to $124.9 million, indicating challenges in the advertising segment [4] - AMC Networks is transitioning away from linear business models but continues to leverage relationships with distributors, with over 1.1 million customers activating ad-supported AMC+ through Charter's Spectrum TV service since a carriage deal in September 2024 [4][5] Strategic Developments - Charter, the leading pay-TV operator in the U.S., has integrated streaming services at no extra charge, contributing to a rare increase in video subscribers in the fourth quarter [5] - AMC Networks achieved carriage renewals with distributors in the U.S. and Canada, covering approximately one-third of its total footprint in 2025 [5] - CEO Kristin Dolan highlighted the shift towards streaming as a significant milestone in the company's ongoing transformation [6]

Financial Performance - AMC Networks reported net revenues of $594.8 million for Q4 2025, a decrease of 0.8% from Q4 2024, and full-year revenues of $2.31 billion, down 4.5% year-over-year[6]. - The company reported an operating loss of $50.9 million in Q4 2025, an improvement of 80% compared to a loss of $254.2 million in Q4 2024[6]. - The net income attributable to AMC Networks' stockholders for the full year 2025 was $89.4 million, compared to a net loss of $226.5 million in 2024[34]. - The company reported a net loss attributable to AMC Networks stockholders of $55,467 thousand for the three months ended December 31, 2025, compared to a net income of $27,566 thousand in the same period of 2024[49]. - For the twelve months ended December 31, 2025, the reported net loss was $47.753 million, with a diluted EPS of $(12.372)[53]. Cash Flow and Liquidity - The company achieved a free cash flow of $40.4 million in Q4 2025, up 7.6% from Q4 2024, and a full-year free cash flow of $272.4 million, down 17.7% from the previous year[6]. - The company generated $305.7 million in net cash provided by operating activities for the year 2025, compared to $375.6 million in 2024[36]. - Free Cash Flow for the twelve months ended December 31, 2025, was $272,367 thousand, compared to $330,840 thousand in 2024, a decline of about 17.6%[44]. - Cash and cash equivalents decreased from $784,649 thousand in 2024 to $502,379 thousand in 2025, a drop of approximately 36.0%[38]. Revenue Segments - Streaming revenue grew by 14% in Q4 2025, now representing the largest revenue component for the Domestic Operations segment[8]. - The Domestic Operations segment reported subscription revenues of $314.8 million in Q4 2025, a slight increase of 0.3% year-over-year, while full-year subscription revenues were $1.26 billion, down 0.8%[10]. - The International segment's revenues decreased by 5% to $81.3 million in Q4 2025, with subscription revenues increasing by 1% to $48.6 million[14]. Expenses and Charges - The total operating expenses for Q4 2025 were $645.7 million, down from $853.5 million in Q4 2024, reflecting a significant reduction in impairment and other charges[34]. - The company faced impairment and other charges of $98 million for the year ended December 31, 2025, including a $93 million goodwill impairment charge[19]. - The company incurred $97.8 million in impairment and other charges in Q4 2025, significantly lower than the $302.7 million in Q4 2024[34]. - Restructuring and related charges amounted to $43.037 million for the three months ended December 31, 2024[51]. Ownership and Acquisitions - AMC Networks acquired the remaining 17% of RLJ Entertainment for $75 million, consolidating its ownership of RLJ Entertainment[18]. - The company completed significant affiliate renewals in 2025, covering over a third of its subscriber footprint in the US and Canada[8]. Assets and Liabilities - Total assets decreased from $4,362,221 thousand in 2024 to $3,936,881 thousand in 2025, a decline of approximately 9.7%[38]. - Total liabilities decreased from $3,422,080 thousand in 2024 to $2,923,132 thousand in 2025, a reduction of about 14.6%[38]. - The company had a total debt of $1,778,251 thousand as of December 31, 2025[40]. - Net debt as of December 31, 2025, was $1,275,872 thousand, reflecting a decrease from the previous year[40]. Future Outlook - AMC Networks plans to continue focusing on its streaming services and original content production to drive future growth[31].

Core Insights - AMC Networks reported a successful 2025, with streaming becoming the largest revenue source in its domestic segment, marking a significant transformation in the business [2][3] - The company achieved free cash flow ahead of forecasts and met its financial guidance for the year, indicating strong operational performance [2] Operational Highlights - The company completed significant affiliate renewal activities in 2025, covering over a third of its subscriber base in the US and Canada [7] - Streaming revenue grew by 14%, now representing the largest revenue component for the Domestic Operations segment [6][12] - The company launched new services and diversified its programming slate for 2026, including new series and docuseries [7] Fourth Quarter Financial Highlights - Net revenues for Q4 2025 were $595 million, a decrease of 1% from Q4 2024 [6][12] - The operating loss for Q4 was $51 million, with adjusted operating income of $104 million, reflecting a margin of 17% [6][8] - Diluted EPS for Q4 was $(1.26), while adjusted EPS was $0.64 [6][8] Full Year Financial Highlights - Total net revenues for 2025 were $2.3 billion, down 5% from 2024 [6][12] - The operating income for the year was $133 million, with adjusted operating income of $412 million, representing a margin of 18% [6][8] - Diluted EPS for the full year was $1.66, with adjusted EPS of $2.03 [6][8] Segment Results – Domestic Operations - Domestic Operations segment revenues decreased 1% to $515 million in Q4 2025, with subscription revenues flat at $315 million [9][12] - Advertising revenues fell by 10% to $125 million due to declines in linear ratings and pricing [12] - For the full year, Domestic Operations revenues decreased 5% to $2.0 billion, with subscription revenues down less than 1% [16] Segment Results – International - International segment revenues decreased 5% to $81 million in Q4 2025 [13][17] - Subscription revenues increased 1% to $49 million, while advertising revenues decreased 13% to $30 million [13][17] - Adjusted Operating Income for the International segment decreased 23% to $7 million [13][17] Other Matters - The company acquired the remaining 17% of RLJ Entertainment for $75 million, consolidating its ownership [19] - Impairment and other charges for the year totaled $98 million, primarily due to a goodwill impairment charge [20] - The company repurchased 854,692 shares of Class A Common Stock for $7.5 million in Q4 2025 [22]

Core Viewpoint - Investors in AMC Networks Inc. should closely monitor stock movements due to significant implied volatility in the options market, particularly for the Jun 18, 2026 $2.5 Put option [1] Company Analysis - AMC Networks currently holds a Zacks Rank 3 (Hold) in the Broadcast Radio and Television industry, which is positioned in the top 29% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, while no analysts have lowered their estimates, resulting in an increase in the Zacks Consensus Estimate from 10 cents per share to 50 cents [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for AMC Networks shares, indicating potential trading opportunities [1][4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [4]