AMC Global Media Inc.

Net revenue declined 9% year over year to $547 million in Q2 2026. Consolidated AOI was $46 million, and free cash flow was $43 million in the quarter and $108 million in the first 6 months. Domestic operations revenue declined 11% to $470 million; domestic subscription revenue fell 5%, streaming revenue grew 6%, and content licensing revenue was $56 million. International revenue rose 4% to $79 million, or about 2% excluding FX, and International AOI was $14 million with an 18% margin. For full-year 2026, management raised revenue guidance to $2.4 billion to $2.45 billion, AOI guidance to $410 million to $420 million, and free cash flow guidance to about $220 million. Domestic content licensing revenue is now expected at $460 million to $485 million, and domestic subscription revenue is expected to decline modestly by about 3% versus 2025.

Kristin Dolan framed the quarter around AMC’s owned IP and the strategic value of the Netflix agreement, calling The Walking Dead universe a long-term asset that creates a global streaming home while also bringing the original series back to AMC+. She emphasized that the company’s model is built on passionate fan bases, multi-platform distribution, and hard-bundle partnerships, and said the second quarter was the expected low point for AOI with better performance ahead. Her tone was upbeat and confident, especially around streaming engagement, franchise renewals, and the company’s ability to monetize content across streaming, linear, FAST, and licensing.

Hozefa Lokhandwala highlighted the financial structure of the Netflix deal: 5 years, $500 million of contracted fees, approximately $25 million of cash in 2026, about $100 million annually in 2027 through 2030, and the remainder in 2031. He said AMC expects to recognize about $445 million of revenue over the life of the agreement, with roughly $200 million to $225 million recognized in 2026 and 2027. On the quarter, he noted $547 million of net revenue, $46 million of consolidated AOI, $43 million of free cash flow, approximately $464 million of cash at quarter-end, net debt of about $1.3 billion, and a 4.1x consolidated net leverage ratio. He also said the company paid down its remaining Term Loan A, terminated its credit facility, and expects leverage to peak in Q2 before improving later in the year.

Analysts focused heavily on the Netflix deal structure, asking why AMC chose co-exclusive rights, how many bidders were involved, and what the impact would be on AMC+ engagement. Management said many major players were involved, the company had worked for years to align rights globally, and co-exclusivity would likely strengthen both Netflix and AMC+ by putting the original series back on AMC+ for the first time. Another theme was the advertising and subscription outlook: management pointed to geopolitical uncertainty and sports attention as first-half headwinds, but said ad trends were improving, affiliate declines should ease in the second half, and the YouTube renewal was completed smoothly without disruption. Questions also probed broader media consolidation and live sports; management said consolidation could help independent premium content owners like AMC, while sports adjacent programming such as wrestling and the Rise of franchise fit the company’s storytelling approach, though it does not plan to chase full sports rights.