Core Points - AMC Networks Inc. will host a conference call to discuss its third quarter 2025 results on November 7, 2025, at 8:30 a.m. Eastern Time [1] - A press release with the results will be issued before the market opens on the same day [1] - The conference call will be available via live webcast on the company's investor relations website [1] Company Overview - AMC Networks is a prominent media company known for its celebrated series and films, catering to passionate fan communities globally [3] - The company's portfolio includes various streaming services such as AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as cable networks like AMC, BBC AMERICA, IFC, SundanceTV, and We TV [3] - AMC Networks also operates AMC Studios, which is responsible for original franchises like The Walking Dead Universe and the Anne Rice Immortal Universe, along with its international programming business [3]

Group 1: Leadership Changes - AMC Networks CEO Kristin Dolan's contract has been extended through 2028, with a base salary starting at $2 million, increasing to $2.1 million next year, plus bonuses and stock awards [1] - Dolan was appointed CEO in early 2023 during a turbulent period for the company, succeeding Christina Spade, who served only three months [3] Group 2: Company Performance - AMC Networks has experienced a decline in share price, dropping 24% in 2025 to date, with shares closing at $7.52 [2] - The company faces challenges due to cord-cutting and pressures on its linear networks, including AMC, IFC, and We TV, while also expanding its subscription streaming services like Shudder, AMC+, and Acorn TV [2] Group 3: Corporate Background - AMC Networks, previously known as Rainbow Media, has been publicly traded for over a decade [2] - The company is controlled by the Dolan family, which has significant influence over its operations and strategic direction [1]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis for identifying investment opportunities [1]. Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on supply/demand imbalances indicated by specific stock price and volume movements [1]. - The "Bottom Fishing Club" articles target deep value stocks or those showing significant positive technical momentum reversals [1]. - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1]. Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009, out of over 60,000 portfolios [1]. - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]. Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1].

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]