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    AMCX
    Earnings call· Jun 2026(Q2 FY26)

    AMC Global Media Q2 FY26 earnings call AMCX

    Jul 30, 2026 Source

    Executive summary

    AMC Global Media Q2 FY26 — Strategic Netflix Deal and Raised Full-Year Guidance

    AMC Global Media reported Q2 FY26 results in line with expectations, marking the low point for AOI, but announced a significant global co-exclusive licensing deal with Netflix for The Walking Dead Universe, valued at $500 million. This strategic move, coupled with improved ad trends and successful affiliate renewals, underpins a raised full-year guidance for revenue, AOI, and free cash flow. The company continues to leverage its owned IP and studio capabilities to drive monetization across a converging distribution ecosystem, focusing on cash flow generation and balance sheet management despite slower H1 subscriber acquisition.

    Highlights

    5

    • Secured a global co-exclusive licensing agreement with Netflix for The Walking Dead Universe, valued at $500 million in total contracted license fees.

    • Raised full-year free cash flow guidance to approximately $220 million, up from previous expectations.

    • Renewed carriage agreements with four of the five major domestic MVPDs (Comcast, DirecTV, DISH, YouTube) in the last 12 months, including a smooth YouTube TV renewal.

    • Domestic advertising revenue, excluding a one-time technical issue, declined mid-single digits, showing notable improvement in trends and strong digital growth in H1 FY26.

    • Achieved sequential improvement in streaming retention and a double-digit increase in engagement across the portfolio, even after price increases.

    Concerns

    5

    • Net revenue declined 9% year-over-year to $547 million in Q2 FY26.

    • Consolidated AOI was $46 million, representing the low point for the year.

    • Subscriber acquisition came in slightly below expectations in the first half of the year due to geopolitical events and high-profile sports programming.

    • Domestic operations revenue decreased 11% to $470 million, with affiliate revenue declining 17%.

    • Domestic subscription revenue is now anticipated to decrease modestly by approximately 3% for the full year FY26.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year consolidated revenue
    $2.4 billion to $2.45 billion
    high materiality
    High
    Full-year adjusted operating income (AOI)
    $410 million to $420 million
    high materiality
    High
    Full-year free cash flow
    approximately $220 million
    high materiality
    High
    Walking Dead licensing cash payments
    $25 million
    high materiality
    High
    Walking Dead licensing cash payments
    $100 million
    high materiality
    High
    Walking Dead licensing revenue recognition
    approximately $200 million to $225 million
    high materiality
    High
    Domestic operations content licensing revenue
    $460 million to $485 million
    medium materiality
    High
    Domestic operations subscription revenue growth
    decrease modestly by approximately 3%
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Domestic operations
    Revenue decline primarily due to affiliate revenue decrease, partly offset by streaming revenue growth. AOI reflected revenue performance and timing of marketing investments.
    Subscription revenue growth: 6%Affiliate revenue decline: 17%Advertising revenue decline (ex-one-time impact): mid-single-digit percentsContent licensing revenue: $56 million
    		$470 million-11%—$61 million
    International
    Revenue growth driven by favorable FX impact and strong advertising performance. Subscription revenue decline due to wind-down of a joint venture.
    Revenue growth (ex-FX): approximately 2%Subscription revenue decline (ex-FX): 3%Advertising revenue increase (ex-FX): 11%AOI margin: 18%
    		$79 million4%—$14 million

    Operational metrics

    10
    Net debt
    $1.3 billion
    Q2 FY26

    At quarter end.

    Consolidated net leverage ratio
    4.1 times
    Q2 FY26

    Represents the high point for the year due to timing and cadence of AOI and cash.

    Cash balance
    $464 million
    Q2 FY26

    At quarter end.

    Hard bundled activations (AMC Plus and All Reality)
    2.3 million
    cumulative

    Generated across Charter and Philo partnerships.

    WE tv ratings growth
    21%vs prior quarter
    Q2 FY26

    Ratings growth in prime time.

    Anne Rice's Interview with the Vampire viewership
    highervs prior season
    Q2 FY26

    Season 4 delivered higher AMC Plus viewership.

    Streaming retention
    sequential improvement
    Q2 FY26

    Improved even as price increases were implemented.

    Streaming engagement
    double digit increase
    Q2 FY26

    Increased even as price increases were implemented.

    Digital advertising growth
    strong growth
    H1 FY26

    Contributed to overall advertising revenue trends.

    Debt maturity profile
    three quarters of total debt not due until July of 2032
    Q2 FY26

    Meaningfully improved after paying down remaining term loan A and terminating credit facility.

    Industry KPIs

    6
    MetricValueDetails
    Total revenue$547 millionUSD
    Adjusted EBITDA$46 millionUSD
    Operating income margin18%%
    Content title performancehigher viewership
    Cash marketable securities$464 millionUSD
    Free cash flow operating cash flow$43 millionUSD

    Product announcements

    4
    ProductTypeDetails
    Thunder Roadlaunch
    Anne Rice's Interview with the Vampireupdate
    Art Detectivesupdate
    Inspector Ellisupdate

    Deals & partnerships

    5
    NetflixGlobal co-exclusive licensing agreement for The Walking Dead Universe (seven series, 371 episodes).$500 millionfive years

    Expands relationship with Netflix, creates a global streaming home for the franchise, and allows the original series to come to AMC Plus for the first time. Rights revert back to AMC at conclusion of license period.

    ComcastRenewal of carriage agreement for distribution of content.long term

    One of four major domestic MVPDs renewed in the last 12 months.

    YouTubeRenewal of carriage agreement for distribution of seven streaming services, five linear networks, and FAST channels, with future launch in YouTube TV genre packages.long term

    Smooth and constructive renewal without disruption, demonstrating value of programming and affiliate relationships. One of four major domestic MVPDs renewed in the last 12 months.

    DirecTVLaunched AMC Plus as a hard bundle offering in their Entertainment Genre Package.

    Part of strategy to leverage streaming and linear convergence through bundled arrangements.

    DISHRenewal of carriage agreement for distribution of content.

    One of four major domestic MVPDs renewed in the last 12 months.

    Risks & headwinds

    7
    Slower subscriber acquisitionfirst half of the year

    slightly below expectations

    Mitigation: Anticipate AOI growth in the back half of the year; strategic focus on content and distribution partnerships.

    Impact of geopolitical events and high-profile sports programmingfirst half of the year

    captured outsized consumer attention

    Mitigation: Focus on strong content slate and linear performance; anticipate better performance in H2.

    One-time technical issue impacting domestic advertising revenuesecond quarter

    isolated technical issue

    Mitigation: Issue is now resolved; noted notable improvements in advertising revenue trends and strong digital growth in H1.

    Lower ratings and marketplace pricing for domestic advertisingQ2 FY26

    mid-single-digit percents decline (ex-one-time impact)

    Mitigation: Continued digital advertising growth; linear brands showing ratings growth (e.g., WE tv up 21%, TNA Wrestling hit all-time high).

    Affiliate revenue declineQ2 FY26

    17% decline

    Mitigation: Anticipate rate of decline will improve in H2 FY26 as new agreements and contractual changes take effect; renewed with 4 of 5 major domestic MVPDs.

    Wind-down of international joint ventureQ2 FY26

    impacted international subscription revenue (3% decline ex-FX)

    Mitigation: International revenue still increased 4% (2% ex-FX) overall, with strong advertising growth.

    Timing mismatch between licensing revenue recognition and cash receiptongoing

    causes a timing mismatch

    Mitigation: IP licensing delivers a contracted stream of defined cash payments with high cash margins, providing clarity and confidence into longer-term cash generation.

    What to watch in Q3 FY26

    5

    Affiliate revenue decline rate

    second half of the year
    Current17% decline in Q2 FY26
    Targetimproved rate of decline

    Why it matters

    Improvement in affiliate revenue decline is crucial for overall domestic operations revenue stability and growth, especially after recent major MVPD renewals.

    We anticipate that our affiliate revenue rate of decline will improve in the second half of the year as new agreements and contractual changes take place. effect.

    Q&A highlights

    6

    Can you provide details on the competitive bidding process for The Walking Dead Netflix deal, including the number of bidders and reasons for choosing Netflix? Also, elaborate on the drivers behind the core adjustment to the full-year guidance, specifically geopolitical uncertainty and sports impact.

    Management confirmed multiple major players were involved in the bidding process for The Walking Dead. They aimed for a co-exclusive deal and chose Netflix due to their strong partnership and the global offering. For guidance adjustments, they acknowledged the World Cup's impact and other factors, but expressed optimism for H2 performance, noting linear strength and green shoots in streaming.

    “On the bidding process, as we said last quarter, we had a lot of the major players involved, and there was a variety of things to consider. We always knew we wanted to do a co-exclusive deal, but the opportunity to license everything to one group globally versus piecemeal, there were a lot of things to consider.”

    asked by Sean Dethley · answered by Unknown Speaker

    3 min read6 chapters

    Detailed Narrative

    01

    The Walking Dead Netflix Licensing Deal

    AMC Global Media announced a global co-exclusive licensing agreement with Netflix for the entire Walking Dead Universe, encompassing seven series and 371 episodes. This five-year deal, valued at $500 million in total contracted license fees, provides significant revenue visibility. The company expects to recognize approximately $200 million to $225 million of this revenue in FY26 and FY27, with cash payments starting at $25 million in FY26 and increasing to $100 million annually from FY27 through FY30. This agreement also enables the original The Walking Dead series to return to AMC Plus, enhancing its content offering for core fans.

    02

    Strategic Focus on Owned IP and Studio Business

    The company emphasizes the value of its owned intellectual property (IP) and the strength of its studio business, citing Dark Winds and The Walking Dead as prime examples. The studio actively develops projects for both internal platforms and third-party distributors, leveraging its production expertise and creative relationships. This strategy allows for monetization across multiple channels, including streaming, linear, FAST, and AVOD, and positions AMC Global Media as a differentiated player in the evolving media landscape.

    03

    Streaming and Linear Convergence / Distribution Partnerships

    AMC Global Media highlights the convergence of streaming and linear viewing, with an increasing number of viewers accessing services through hard bundled arrangements. Partnerships with distributors like Charter, Philo, and DirecTV have already generated 2.3 million AMC Plus and All Reality activations. The company recently renewed long-term agreements with major MVPDs, including Comcast and YouTube, demonstrating the value distributors place on its portfolio and its partner-focused approach to distribution. These renewals are expected to improve the affiliate revenue decline rate in the second half of the year.

    04

    Advertising Revenue Trends

    Domestic advertising revenue, excluding a one-time📎 technical issue in Q2, decreased in the mid-single digits. However, management noted notable improvements in advertising revenue trends and strong growth in digital advertising during the first half of the year. Linear brands like WE tv (21% ratings growth in prime time) and AMC (TNA Wrestling hitting all-time ratings highs) continue to resonate with viewers, reinforcing the power of original programming and attracting new audiences.

    05

    Programming Highlights and Franchise Strength

    The company showcased strong performance across its programming slate, including the renewal of Anne Rice's Interview with the Vampire for a fourth season and the successful launch of The Walking Dead: Dead City Season 3. Acorn TV, a genre-specific streamer, saw re-energization efforts exceed expectations with new shows and talent. Production is set to begin on Thunder Road, a multi-generational racing drama in partnership with NASCAR, further diversifying content offerings and attracting advertiser interest.

    06

    Balance Sheet and Capital Allocation

    AMC Global Media ended Q2 FY26 with approximately $464 million in cash and has significantly improved its debt maturity profile, with three-quarters of total debt not due until July 2032. Net debt stood at $1.3 billion, with a consolidated net leverage ratio of 4.1 times, which is expected to be the high point for the year. The capital allocation philosophy prioritizes fueling the business with compelling programming, reducing gross debt, and opportunistic M&A and share repurchases.

    AI-generated summary of the company’s earnings call. Not investment advice.