Angel Studios, Inc. (ANGX)·Q3 2025 Earnings Summary

Executive Summary

• Record Q3 revenue of $76.5 million, up 280% year-over-year, with Angel Guild recurring revenue contributing 77% ($59.2 million); membership reached 1.6 million, up 620% YoY .
• GAAP net loss widened to $38.6 million (EPS -$0.246), driven by higher marketing ($64.7 million) and content-related costs (including royalties); EPS rounding in commentary (-$0.25) reconciles to the statement figure [-$0.246] .
• Strategic catalysts: definitive acquisition of top-performing series (Tuttle Twins, Homestead, Wingfeather), David franchise acquisition (pre-sales nearly $3 million), and AI-driven discovery boosting watch time by 12% .
• Strengthened capital flexibility: closed a $100 million credit facility with Trinity; filed a $400 million shelf and plans ATM to maintain capital optionality .
• S&P Global consensus estimates for Q3 2025 were unavailable; no formal guidance provided, with management citing rapid growth and variability as the rationale .

What Went Well and What Went Wrong

What Went Well

• Guild scale and monetization: 1.6 million paying members (+620% YoY); Guild revenue $59.2 million (77% of total), new ARPM disclosure at $13.70 TTM per member .
• Product/tech leverage: AI-driven discovery increased average watch time by 12%, a key driver of retention and recurring revenue .
• Strategic IP and slate: Acquired DAVID franchise with 2521; pre-sales nearly $3 million in three weeks; acquired top-performing series (Tuttle Twins, Homestead, Wingfeather) to enhance retention and long-term library value .
  • CEO: “Our third-quarter results underscore the strength of our community and the momentum of our audience-first model… The Angel Guild has grown more than 500% year over year to 1.6 million paying members” .

What Went Wrong

• Profitability pressure: Net loss ($38.6 million) and EPS (-$0.246) worsened YoY, primarily due to higher strategic marketing spend ($64.7 million) and royalty/transaction costs ($17.0 million royalties; $5.4 million processing fees) .
• Margin variability: Cost of revenues rose to $34.3 million; management flagged mix effects (Guild vs theatrical) causing consolidated gross margin swings over time .
• Visibility: No formal guidance amid rapid growth and slate timing; analysts probed seasonality and spend levels, with management emphasizing efficiency but indicating variability (e.g., David marketing could flex higher on performance) .

Financial Results

Notes: “calc” indicates values calculated from reported revenue, cost of revenues, and operating loss. Values for Q2 2025 were not disclosed in the Q3 8-K press release.
Values marked with an asterisk were retrieved from S&P Global.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO Neal Harmon: “The Angel Guild has grown more than 500% year over year to 1.6 million paying members… a remarkable community that doesn’t just watch, but decides which values-driven films and series get made” .
• CFO Scott Klossner: “We’re continuing to see our investment in member acquisition delivering significant top-line growth… Selling and marketing expense was $64.7 million… As long as we can efficiently grow the Angel Guild, you’ll continue to see this investment” .
• CFO on guidance: “We’re in a period of exceptionally high growth… to provide guidance now would be premature… We will continue to provide transparency through our quarterly updates” .

Q&A Highlights

• David acquisition economics: $80 million acquisition (with 2521), combining film and series, highest Guild-rated title; pre-sales nearly $3 million in three weeks .
• Seasonality of net adds: Q4 is typically strongest streaming quarter; slate (Wingfeather S3, Tuttle Twins S4, Homestead, Wayfinder, Young David) should support strength .
• Content licensing dynamics: Direct PVOD relationships with Apple/Amazon/Fandango drove sequential licensing gains; fee reductions and scale benefits improving economics .
• ARPM/tiering: ARPM disclosed at $13.70 TTM; tier mix (basic, basic no-ads, premium) managed via A/B testing; premium uptake increased after basic no-ads introduction .
• Marketing spend: Variable and ROI-driven; spend will flex higher on proven theatrical performance (e.g., David) but kept in check relative to revenue .
• IMAX strategy: Per-title evaluation; IMAX suitable for certain epics (e.g., Zero A.D.) .
• Deferred revenue: Driven by annual membership mix and amortization timing .

Estimates Context

S&P Global Wall Street consensus estimates for Q3 2025 were unavailable; values retrieved from S&P Global where applicable.

Key Takeaways for Investors

• Recurring engine scaling: Guild reached 1.6 million members and 77% of revenue; ARPM disclosed, AI-driven discovery and platform optimizations support retention and monetization .
• Near-term catalysts: David release (pre-sales nearly $3M), premium series acquisitions, and Q4 slate should accelerate net adds and engagement into year-end .
• Margin mix matters: Guild-heavy quarters can compress gross margin relative to theatrical; expect variability as slate timing shifts—watch mix to model margins .
• Cash and capital optionality: $63.3M cash, $100M credit facility, and $400M shelf/ATM in process provide funding for Guild growth and IP acquisition, reducing execution risk .
• Near-term trading lens: Momentum narrative around record revenue, pre-sales strength, and IP ownership could be supportive; lack of formal guidance and elevated marketing spend may add volatility around prints .
• Medium-term thesis: Audience-first model with recurring revenue, improving distribution economics (Apple fee cut), and owned IP compounding retention builds a structurally advantaged platform .
• Watch execution KPIs: Net adds, ARPM tier mix, licensing traction, and marketing ROI disclosures will signal operating leverage pathway as scale increases .

Values marked with an asterisk were retrieved from S&P Global.