AMC Entertainment (NYSE:AMC) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Speaker3Hello, welcome everyone to today's AMC Entertainment Holdings, Inc. fourth quarter and full year 2025 earnings webcast. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are standing by ...

Core Insights - Ryan Coogler's film "Sinners" received a record-breaking 16 nominations at the 98th Academy Awards, surpassing the previous record of 14 nominations held by "All About Eve," "Titanic," and "La La Land" [1][10] - "One Battle After Another," directed by Paul Thomas Anderson, followed closely with 13 nominations, showcasing strong competition between the two films [2][10] - The Academy's recognition of these films reflects a focus on original American narratives that resonate with current social issues, particularly in the context of race and rebellion [3][10] Nominations Overview - The ten films nominated for Best Picture include "Bugonia," "F1," "Frankenstein," "Hamnet," "Marty Supreme," "One Battle After Another," "The Secret Agent," "Sentimental Value," "Sinners," and "Train Dreams" [6][10] - "Frankenstein," "Marty Supreme," and "Sentimental Value" each received nine nominations, indicating a competitive landscape for the awards [6][10] Actor and Actress Nominations - In the Best Actor category, nominees include Michael B. Jordan for "Sinners," Timothée Chalamet for "Marty Supreme," Leonardo DiCaprio for "One Battle After Another," Ethan Hawke for "Blue Moon," and Wagner Moura for "The Secret Agent" [7][10] - The Best Actress nominees feature Jessie Buckley for "Hamnet," Rose Byrne for "If I Had Legs I'd Kick You," Kate Hudson for "Song Sung Blue," Renate Reinsve for "Sentimental Value," and Emma Stone for "Bugonia," marking her sixth nomination [7][10] Industry Context - The Oscars introduced a new category for casting, which benefited "Sinners" and "One Battle After Another," further enhancing their nomination tallies [9][10] - Warner Bros. achieved its best Oscar nominations morning ever amid a contentious sale to Netflix for $72 billion, highlighting significant industry shifts [10]

Core Viewpoint - Netflix is currently facing significant challenges, including a sharp decline in stock price and intense competition, while navigating a complex acquisition of Warner Bros. [2][8] Financial Performance - Netflix's earnings per share for Q3 was $5.87, missing analysts' expectations by $1.10 or 15.8% [3] - Revenue increased by 17.2% year-over-year to $11.5 billion, but operating margin fell from 34.1% to 28.2% due to a $619 million expense related to a tax dispute in Brazil [4] - The stock is trading at a price-to-earnings ratio of 36.5, below its five-year average of 44.7, but higher than the S&P 500's P/E ratio of 31.3 [5] Competitive Landscape - Netflix's market position is under pressure, ranking third in TV watch time with 8.8%, while YouTube leads with 13.4% [2] - The competition for viewers remains intense, with YouTube maintaining its lead for six consecutive months [2] Acquisition of Warner Bros. - Netflix announced an agreement to acquire Warner Bros. for $82.7 billion, which includes its film and TV studios, catalog, and HBO Max streaming service [8][9] - Investor skepticism surrounds the deal due to its high cost and potential debt implications, with Netflix's stock falling 12% since the announcement [9] - Historical context suggests that corporate mergers, particularly in media, often fail to deliver expected results, raising concerns about the Warner Bros. acquisition [10][11] Future Outlook - Netflix expects the Warner Bros. transaction to close within 12 to 18 months and has adjusted its bid to an all-cash offer of $27.75 per share [13] - Investor caution persists regarding the acquisition's impact on Netflix's finances and the integration of two culturally different media entities [13]

Core Viewpoint - Netflix has shown solid growth but has recently experienced a significant decline in stock value, raising questions about its future performance [2][5]. Financial Performance - Netflix reported a revenue growth of 17.6% in 2025, reaching $12.1 billion, surpassing the consensus estimate of $11.97 billion, with an operating margin of 24.5%, up from 22.2% [3]. - For 2026, Netflix anticipates revenue between $50.7 billion and $51.7 billion, representing a 12%-14% increase from 2025, with a target operating margin of 31.5% [4]. Market Position and Valuation - With a market capitalization around $400 billion, Netflix's growth rate appears healthy, although revenue growth is expected to slow after 16% growth in 2025 [5]. - The company is projected to achieve approximately $3 in earnings per share in 2026, resulting in a forward price-to-earnings ratio of 28, aligning with the S&P 500's trailing P/E ratio [9]. Strategic Moves - Netflix is pausing share buybacks to accumulate cash for the acquisition of Warner Bros. Discovery, which has raised investor skepticism [6]. - To enhance the appeal of the acquisition for WBD shareholders, Netflix has modified its offer to an all-cash deal [6].

Core Insights - Netflix reported strong financial results for the fourth quarter, with revenue increasing by 18% to over $12 billion compared to the previous year, driven by growth in advertising, higher prices, and an increase in paid memberships [1][2] - The company's profits for the same period reached $2.4 billion, or 56 cents per share, up from $1.87 billion, or 43 cents per share, a year earlier [2] - Total engagement on the platform rose by 2% in the second half of the year, with significant contributions from popular shows and movies, including the final season of "Stranger Things" and the record-breaking "KPop Demon Hunters" [3][4] Financial Performance - For the fiscal year, Netflix reported total revenue of $45.2 billion, marking a 16% increase from 2024 [5] - The earnings report coincided with Netflix's modification of its acquisition offer for Warner Bros. Discovery, now an all-cash bid valued at $82.7 billion [5][6] Market Reactions - Despite the strong earnings, Netflix shares have been declining since the announcement of the Warner Bros. acquisition, raising questions among investors about the strategic fit of the deal [6] - Rival bidder Paramount continues its hostile takeover attempt for Warner Bros., with a deadline for investors to tender their shares set for January 21 [7]

Core Insights - The relationship between Netflix and AMC is evolving, with both companies seeking to collaborate after years of tension over theatrical release strategies [2][3][9]. Group 1: Industry Trends - There has been a significant shift in audience behavior, with many viewers moving from traditional broadcast and cable TV to streaming services, leading to a decline in movie theater ticket sales [1]. - Netflix has reported over 300 million global subscribers as of the end of 2024, although it no longer provides updates on subscription data [2]. Group 2: Company Dynamics - Netflix's approach of shorter theatrical windows and simultaneous releases on streaming platforms has historically caused friction with cinema operators like AMC [2][3]. - AMC's CEO Adam Aron has been a vocal opponent of Netflix's practices, but recent collaborations indicate a potential thaw in relations [3][9]. Group 3: Collaborative Efforts - A high-level dialogue between Netflix and AMC took place to explore mutual benefits and collaboration opportunities [4]. - Successful events like the theatrical release of "KPop Demon Hunters" and the finale of "Stranger Things" have demonstrated the potential for joint ventures, with the latter attracting over 753,000 viewers [5][7]. Group 4: Future Outlook - Both companies are looking for more enticing projects in 2026 and beyond, although significant differences remain, particularly regarding the preferred length of theatrical windows [9]. - AMC is committed to the industry standard of a 45-day theatrical window, while Netflix advocates for a shorter 17-day window, highlighting ongoing strategic differences [9][10].

Core Viewpoint - AMC Entertainment and Netflix are engaging in a high-level dialogue to explore collaboration opportunities, with AMC already showcasing Netflix's KPop Demon Hunters in its theaters [1] Group 1 - AMC Entertainment is the world's largest theatrical exhibitor [1] - The collaboration discussions between AMC and Netflix were announced to begin in September 2025 [1] - AMC has already started to feature Netflix's popular content, specifically KPop Demon Hunters, in its theaters as part of this collaboration [1]

Group 1: Boeing and Defense Sector - Boeing has secured an $8.58 billion contract for the F-15 Israel Program, which includes cost-plus-fixed-fee components, highlighting its strategic partnership with Israel's defense initiatives [2][8] - The F-15 program is essential for Israel's air superiority, with previous contracts focusing on customized versions like the F-15IA tailored for the Israeli Air Force [2] Group 2: Pop Mart and Consumer Trends - Pop Mart reported 13 billion Chinese yuan ($1.9 billion) in revenue for the first half of 2025, marking over 200% year-over-year growth, with net income increasing by almost 400% to 4.5 billion yuan ($630 million) [4] - The success of Labubu, Pop Mart's "ugly-cute" doll, is attributed to the "blind box" purchasing model, appealing to Gen Z consumers and driving emotionally-driven purchases [3][4] - Pop Mart's market capitalization reached $37 billion, surpassing the combined value of Hasbro, Mattel, and Sanrio, despite a stock slump in September [4] Group 3: Asian Pop Culture Influence - The animated series KPop Demon Hunters has become the most popular Netflix show in history with 236 million views, indicating the growing global appetite for Asian entertainment [5] - These trends reflect a significant shift towards "new consumption" or "emotional consumption," where young urban shoppers prioritize unique experiences over traditional big-ticket items [5][8]

Core Insights - The article discusses the top Google search trends of 2025, highlighting significant societal changes and events that have shaped public interest [1][2]. Group 1: Political Trends - The assassination of Charlie Kirk, a prominent political figure, shocked the nation and reflects rising political violence [1][2]. - The political landscape remains polarized, with strong support and opposition for figures like Donald Trump, indicating ongoing societal tensions [6][7]. - The election of Zohran Mamdani, a democratic socialist, as mayor of New York has made him a national celebrity, showcasing the emergence of new political figures [8]. Group 2: Entertainment and Cultural Trends - "KPop Demon Hunters," an animated musical film, reflects society's fascination with dark themes in entertainment, particularly among youth [3]. - The popularity of Labubu collectible figures indicates a shift in children's toy preferences towards more unconventional and darker designs [4][5]. - The iPhone 17's ranking as a top search trend underscores the continued addiction to technology and smartphones in daily life [5]. Group 3: Economic and Legislative Trends - The "One Big Beautiful Bill Act" and discussions around tariffs and government shutdowns highlight the focus on political drama and economic issues in 2025 [6]. - The FIFA Club World Cup's ranking indicates the ongoing global interest in sports, despite controversies surrounding specific events [9]. Group 4: Societal Reflections - The article reflects on past predictions about 2025, noting that while some were accurate, others, such as expectations for a female president and a cure for cancer, did not materialize [12][13]. - The author suggests that the pace of change in society is accelerating, indicating that future developments may be even more dramatic [14].

Core Viewpoint - Netflix's potential acquisition of Warner Bros. Discovery for an enterprise value of $82.7 billion could enhance its content library and original content creation capabilities, despite investor skepticism and a recent stock decline [1][2][10]. Group 1: Acquisition Impact - The acquisition would significantly expand Netflix's content library, including access to popular franchises like Harry Potter and HBO programming, which could enhance subscriber engagement and retention [11][12]. - Netflix's strategy has historically focused on building its streaming empire without major acquisitions, indicating that it can thrive independently of the Warner Bros. deal [6][18]. - The deal's uncertainty arises from Paramount Skydance's hostile takeover bid for Warner Bros., complicating Netflix's plans [2][10]. Group 2: Financial Performance - Netflix has shown resilience in subscriber growth and financial performance, achieving a gross margin of 48.02% and maintaining a manageable long-term debt of approximately $5.2 billion [10][16]. - The company's current price-to-earnings ratio stands at 40.4, while its price-to-free cash flow ratio is at 47, reflecting a premium valuation but also strong earnings conversion [14]. - Despite recent stock price declines, Netflix's valuation remains reasonable compared to its historical price-to-sales ratio, which is currently at 9.7 against a 10-year median of 8.1 [14]. Group 3: Future Outlook - If the Warner Bros. deal is finalized, Netflix could justify higher subscription prices and expand its subscriber base, similar to HBO's pricing strategies [17]. - Even without the acquisition, Netflix is positioned to outperform the S&P 500 over the next five years, driven by its ability to grow annual earnings by double digits [18]. - The company is viewed as a strong long-term growth stock, making it an attractive buy for investors despite recent market fluctuations [19].