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AMC Networks Inc. (AMCX)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue of $561.7M declined 6.3% YoY but modestly beat consensus; Adjusted EPS of $0.18 missed while EBITDA beat; free cash flow was $42.0M . Revenue beat, EPS miss, EBITDA beat relative to S&P Global consensus for Q3 2025: Revenue $549.3M*, EPS $0.34*, EBITDA $74.7M*; actuals: Revenue $561.7M, EPS $0.18, EBITDA $81.4M. Bold: revenue and EBITDA beat; EPS miss.*
  • Streaming is now on pace to be AMC’s largest single domestic revenue source in 2025; Q3 streaming revenue rose 14% to $174M and subscribers were 10.4M, offsetting affiliate declines .
  • Management reiterated FY25 outlook: revenue ≈ $2.3B, AOI $400–$420M, and ~ $250M free cash flow; licensing expected to exceed $250M, supported by the renewed Netflix agreement and distribution/bundle expansions .
  • Capital structure actions and liquidity: net debt ≈ $1.23B, leverage 2.8x; amended revolver maturities and repurchased senior notes; term loan A partially prepaid post-quarter .

Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Streaming revenue growth accelerated (+14% YoY to $174M) with price increases, and streaming is expected to be the largest single source of domestic revenue in 2025; CEO: “milestone…transition…streaming revenue growth accelerated” .
  • Strategic partnerships expanded: renewed Netflix licensing (including international), renewed DirecTV with AMC+ ad-supported bundle, charter uptake of 850k+ ad-supported AMC+ subs; management emphasized bundles and FAST renewals .
  • Strong cash generation and reiterated FY25 FCF guidance: “on track to achieve…$250 million in free cash” with Q3 FCF of $42M and YTD $232M; AOI margin 17% despite linear headwinds .

What Went Wrong

  • Linear pressures persisted: domestic advertising revenue down 17% YoY to $110M on ratings and pricing; affiliate revenue down 13% to $142M on basic subs declines and contract rates .
  • AOI and Adjusted EPS declined YoY; consolidated AOI fell 28% to $94M and Adjusted EPS to $0.18 vs $0.91; domestic AOI down 25% YoY .
  • Content licensing timing weighed on Q3 domestic licensing revenue ($59M, -27% YoY); management noted quarterly variability (expect >$250M for FY) .

Financial Results

Consolidated metrics vs prior year and prior quarter

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$599.6 $600.0 $561.7
Operating Income ($USD Millions)$93.7 $64.5 $55.5
Adjusted Operating Income ($USD Millions)$131.5 $109.4 $94.4
Diluted EPS (GAAP) ($USD)$0.76 $0.91 $1.38
Adjusted EPS ($USD)$0.91 $0.69 $0.18
Free Cash Flow ($USD Millions)$53.9 $95.7 $42.0

Notes: GAAP EPS in Q3 benefited from a $105.3M gain on extinguishment of debt; adjusted EPS excludes this item .

Segment breakdown

Domestic Operations ($USD Millions)Q3 2024Q2 2025Q3 2025
Total Revenues, net$530.2 $526.9 $485.7
Subscription$316.0 $320.0 $316.2
Advertising$133.1 $123.0 $110.0
Content Licensing & Other$81.1 $84.0 $59.4
Segment AOI$150.2 $126.3 $112.2
International ($USD Millions)Q3 2024Q2 2025Q3 2025
Total Revenues, net$73.7 $75.5 $77.1
Subscription$48.5 $47.0 $48.1
Advertising$22.5 $26.0 $25.9
Segment AOI$13.5 $14.7 $11.9

KPIs and Operational Metrics

KPIQ1 2025Q2 2025Q3 2025
Streaming Subscribers (Millions)10.2 10.4 10.4
Domestic Streaming Revenues ($USD Millions)$157 $169 $174
Domestic Affiliate Revenues ($USD Millions)$156 $151 $142
Domestic Advertising Revenues ($USD Millions)$119 $123 $110
Free Cash Flow ($USD Millions)$94.2 $95.7 $42.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue ($USD Billions)FY 2025N/A≈ $2.3 New
Adjusted Operating Income ($USD Millions)FY 2025N/A$400–$420 New
Free Cash Flow ($USD Millions)FY 2025≈ $250 (raised in Q2) ≈ $250 (reiterated) Maintained
Domestic Content Licensing Revenue ($USD Millions)FY 2025N/A> $250 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
Streaming shift and pricingQ1: streaming +8% to $157M; updated subscriber definitions; focus on higher-quality subs . Q2: streaming +12% to $169M; 10.4M subs .Streaming +14% to $174M; streaming expected to be largest domestic revenue bucket .Accelerating
Advertising and upfronts/digitalQ1: linear ad -15% . Q2: ad -18%; upfront digital commitments +25%+ in negotiations .Digital upfront +40%; linear ad -17%; FAST/AVOD inventory scaling .Mixed: digital improving, linear challenged
FAST channels & AVODQ2: launched 11 FAST channels on TCLtv+; new genre channels; growth in FAST .33 FAST channels across 22 platforms, 215 feeds; renewals with Roku/Samsung .Expanding
Licensing partnershipsQ2: licensing strength; renewed series and catalog sales; Silo EP fees .Netflix branded content deal expanded to international; expected FY25 licensing >$250M .Strengthening
Bundles and distributionQ2: Amazon Channels bundles; NCTC renewal .DirecTV hard bundle ad-supported AMC+; triple bundle with Prime Video (AMC+/MGM+/Starz); 850k+ Charter AMC+ opt-ins .Expanding reach
Capital structure & liquidityQ2: reduced gross debt ~$400M since Mar 31; leverage ~2.9x; senior secured notes issued .Net debt ≈ $1.23B; leverage 2.8x; repurchased $9.2M notes; extended revolver maturities; paid down ~$166M term loan A .Deleveraging and terming out

Management Commentary

  • CEO: “Our performance in the third quarter marks a key milestone in our transition…Streaming revenue growth accelerated and will represent our largest single source of domestic revenue this year…on track to achieve our increased outlook of $250 million in free cash for the full year” .
  • CFO: “We are reiterating our 2025 outlook…approximately $250 million of free cash flow…consolidated revenue of approximately $2.3 billion…consolidated AOI in the range of $400 million–$420 million” .
  • CCO: “We have 33 FAST channels now across 22 platforms with over 250 global feeds…creating a great deal of streaming digital inventory…beyond just an advertising venture…drive awareness and promotion towards our streaming services” .
  • CEO on cost/tech: “Our strategy is to be a wholesale streamer…technology…with Comcast Technology Services…predictable…scalable for as large as we want to grow” .

Q&A Highlights

  • Advertising/digital: Upfront digital commitments rose 40%; management is focused on dynamically inserted digital inventory and expanding ad-supported offerings (e.g., Shudder) to grow the ad pool over time .
  • FAST channels scale and monetization: 33 FAST channels across 22 platforms; used both for ad monetization and for funneling audiences to DTC, including trials with click-through to TVOD purchases .
  • Margins vs FCF: CFO emphasized prioritizing free cash flow generation (>60% FCF conversion in 2025) over near-term AOI margin expansion amid continued investment in premium programming .
  • Streaming economics: Efficient model leverages programming across linear and streaming; targeted services like Acorn have favorable unit economics; wholesale streaming strategy offloads some acquisition and CS costs to partners .

Estimates Context

  • Q3 2025 vs consensus: Revenue $561.7M vs $549.3M* (beat); Adjusted/Primary EPS $0.18 vs $0.34* (miss); EBITDA $81.4M vs $74.7M* (beat). Values retrieved from S&P Global.*
  • Implications: Consensus likely needs to reduce near-term EPS/adjusted profitability given linear headwinds and licensing timing, but maintain/lift revenue and EBITDA in outer quarters if streaming momentum and licensing (> $250M FY25) materialize .

Values retrieved from S&P Global.*

Estimates comparison (Q3 2025)

MetricQ3 2025 Consensus*Q3 2025 Actual
Revenue ($USD)$549,265,460*$561,741,000
Primary EPS ($USD)$0.3423*$0.18
EBITDA ($USD)$74,710,970*$81,375,000*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Streaming inflection is real: streaming revenue growth (+14%) and bundles/wholesale strategy are offsetting linear declines, supporting top-line stability and EBITDA resilience .
  • Expect continued quarterly variability in licensing, but FY25 domestic licensing should exceed $250M, aided by Netflix expansion and strong franchises (Anne Rice, TWD) .
  • Cash generation remains the anchor: reiterated ~$250M FY25 FCF with Q3 $42M; debt reduction and maturity extensions de-risk the capital structure (net debt ≈ $1.23B, leverage 2.8x) .
  • Advertising headwinds persist on linear (Q3 -17%), but digital/FAST momentum (upfront +40%) and ad-supported expansions should gradually improve the ad mix; near-term ad trends remain a watch point .
  • GAAP vs non-GAAP optics: large gain on debt extinguishment boosted GAAP EPS ($1.38) while Adjusted EPS ($0.18) better reflects operating reality; focus on AOI/EBITDA/FCF for valuation and trend analysis .
  • Distribution leverage: DirecTV, Charter, Amazon bundles broaden reach at lower acquisition cost, consistent with wholesale streaming economics; supports subscriber quality and engagement .
  • Tactical setup: Narrative catalysts include streaming becoming the largest domestic revenue source, licensing visibility, and capital structure progress; offsets are linear pressure and quarterly licensing timing .

Additional Relevant Press Releases (Q3 context)

  • SearchKings launched a TV ad offering built on Comcast’s Universal Ads API with access to content from major publishers including AMC Networks, highlighting ecosystem expansion for targeted, measurable TV advertising .