Why was a co-exclusive structure the right choice for The Walking Dead deal, and what impact do you expect it to have on AMC Plus engagement, given the full content universe will be available?

Management stated that the co-exclusive arrangement was ideal, allowing the original Walking Dead series to return to AMC Plus for the first time. They believe it will increase and build on existing engagement for AMC Plus, as fans strongly associate the IP with AMC. The deal allows the content to cohabitate nicely on both platforms. “You know, the overall engagement that we're seeing on our streaming services is really giving us, you know, a lot of optimism here for, you know, the value of streaming and the way that we present it. And so for AMC Plus in particular, that is a destination for our core fan base.”

How has engagement been for live sports and sports-adjacent content like wrestling and docuseries, and how much further does the company plan to push into this space?

Management expressed pleasant surprise at the performance of TNA Wrestling, noting its story-driven, character-driven nature aligns with AMC's strategy and attracts a younger, male audience. They also highlighted the success of 'Rise of the 49ers' and upcoming 'Rise of the Saints'. While they will continue with sports-adjacent content, they clarified they won't license games or full live sports, focusing on storytelling within their genre. “The live sports program, we've been really pleasantly surprised. I keep saying that on this call, but there's been a lot of good things coming out of the quarter with the performance of TNA.”

Can you explain the ratable revenue recognition for The Walking Dead deal, specifically the AOI contribution in 2026 and 2027 and beyond? Also, what are the underlying changes to guidance excluding the new transaction?

Management explained that $200M-$225M of revenue will be recognized in FY26 and FY27 due to ASC 606 rules, totaling $445M over the agreement's life. AOI contribution will be high margin. For guidance, they noted $200M-$225M of new licensing revenue, implying domestic licensing of $460M-$485M, and domestic subscription revenue decreasing by ~3% YoY, offsetting other factors. “So on the revenue recognition, it's not out of the ordinary. It's standard procedure. We're going to recognize 200 to 225 million of the revenue in year 26 and also in 27.”

AMCX

AMC Global Media (AMCX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Jul 30, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year consolidated revenue	$2.4 billion to $2.45 billion high materiality	FY26	High
Full-year adjusted operating income (AOI)	$410 million to $420 million high materiality	FY26	High
Full-year free cash flow	approximately $220 million high materiality	FY26	High
Walking Dead licensing cash payments	$25 million high materiality	FY26	High
Walking Dead licensing cash payments	$100 million high materiality	FY27-FY30	High
Walking Dead licensing revenue recognition	approximately $200 million to $225 million high materiality	FY26	High
Domestic operations content licensing revenue	$460 million to $485 million medium materiality	FY26	High
Domestic operations subscription revenue growth	decrease modestly by approximately 3% medium materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 million	4%	—	$14 million

Product announcements

Product	Type	Timeline
Thunder Road	launch	next month
Anne Rice's Interview with the Vampire	update	—
Art Detectives	update	—
Inspector Ellis	update	—

Deals & partnerships

Netflix Global co-exclusive licensing agreement for The Walking Dead Universe (seven series, 371 episodes). $500 million five 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.

Comcast Renewal of carriage agreement for distribution of content. long term

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

YouTube Renewal 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.

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

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

DISH Renewal of carriage agreement for distribution of content.

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

Risks & headwinds

Slower subscriber acquisition first 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 programming first 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 revenue second 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 advertising Q2 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 decline Q2 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 venture Q2 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 receipt ongoing

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

Affiliate revenue decline rate

second half of the year

Current 17% decline in Q2 FY26

Target improved 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.

Find out whether AMCX delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.