Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with 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 revenue decreased by 5% to $2 billion for the full year, while subscription revenue stabilized with a decrease of less than 1% [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 the fourth quarter, offsetting declines in linear affiliate revenue [16][17] - Domestic advertising revenue decreased by 15% for the year, primarily due to linear ratings declines [17] - International revenue decreased by 4% for both the year and the quarter, but advertising revenues grew by 6% for the full year [18] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, flat compared to the previous 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][33] Company Strategy and Development Direction - AMC Networks is focusing on a streaming strategy that emphasizes genre-specific content curation and efficient content delivery [4][5] - The company aims to strengthen its balance sheet and reduce gross debt, having reduced it by almost $600 million in 2025 [18][19] - The acquisition of RLJ Entertainment is expected to enhance operational clarity and simplify the business structure [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the company's independence as a strength in a changing industry landscape [11] - The outlook for 2026 includes expectations of approximately $2.25 billion in consolidated revenue, with stable domestic subscription revenue anticipated [21][22] - Management acknowledged the challenges in the advertising market but highlighted improvements in digital advertising performance [29][33] 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 is committed to maintaining a healthy cash position, ending the year with approximately $675 million in total liquidity [19] 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: The value of The Walking Dead rights - Management confirmed ongoing conversations regarding the monetization of The Walking Dead rights, expressing optimism about their value [28] Question: Ad contributions 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: Affiliate revenue outlook and content spend - Management highlighted positive trends in affiliate revenue and confirmed continued investment in premium programming while maintaining free cash flow [40][41]

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]

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]