AMC Global Media (AMCX) Q2 2026 earnings summary

Executive summary

• Announced a $500 million, five-year global co-exclusive licensing agreement with Netflix for The Walking Dead Universe, covering all seven series and 371 episodes, enhancing long-term value creation and cash flow.

• Renewed major distribution agreements with Comcast, YouTube, DirecTV, and DISH, strengthening affiliate relationships.

• Second quarter results aligned with expectations, with AOI at its anticipated low point and guidance raised for the full year.

• Subscriber acquisition was slightly below expectations due to geopolitical events and major sports programming, but engagement and retention improved sequentially.

• Increased full-year guidance, citing strong IP value, studio performance, and partner relationships.

Financial highlights

• Net revenue for Q2 2026 was $547.5 million, down 8.8%–9% year-over-year; six-month revenue was $1.09 billion, down 5.7%.

• Operating income for Q2 was $15.9–$16 million, a 75% decrease year-over-year; adjusted operating income was $46–$46.1 million, down 58%.

• Free cash flow was $43 million for the quarter, with $108 million generated in the first six months.

• Diluted EPS was $(0.51); adjusted EPS was $(0.28).

• Net cash from operating activities for the first half of 2026 was $124.7 million, down from $211.6 million in the prior year.

Outlook and guidance

• Full-year consolidated revenue expected in the range of $2.4 billion–$2.45 billion, reflecting $200–$225 million in new content licensing revenue from The Walking Dead deal.

• Domestic operations content licensing revenue projected at $460–$485 million for the year.

• Domestic subscription revenue expected to decrease by approximately 3% year-over-year.

• Full-year AOI guidance raised to $410–$420 million.

• Management expects continued linear subscriber and ad revenue declines, but liquidity remains sufficient for the next year.