Angel Studios Q2 Earnings Call Highlights

Key Points

• Revenue and membership surged: Second-quarter revenue rose 28% year over year to $111 million, driven by a 94% increase in Guild revenue. Paying Guild members reached 2.61 million at quarter-end and 2.85 million by July 31, representing approximately $466 million in annual recurring revenue.
• Marketing efficiency improved while losses narrowed: Guild sales and marketing expense fell to 52.8% of Guild revenue from 71.6% a year earlier, while first-half adjusted EBITDA loss improved to $7.7 million from $46.2 million. Management reaffirmed its goal of limiting the full-year adjusted EBITDA loss to $25 million.
• Content and distribution expansion remain central to strategy: Angel plans six more theatrical releases in 2026, expanded its streaming catalog and launched on additional platforms. Management expects stronger theatrical revenue in the third and fourth quarters and sees a path toward 5 million Guild members.

Angel Studios NYSE: ANGX reported second-quarter 2026 revenue growth of 28% as its Guild membership business expanded, while management said it remained committed to limiting its full-year adjusted EBITDA loss to no more than $25 million.

Total revenue reached $111 million in the quarter, up from $88 million a year earlier. Guild revenue rose 94% to $90.7 million, compared with $46.8 million in the prior-year period, according to CFO Scott Klossner. The company’s Guild membership increased from 2.22 million at the end of the first quarter to 2.61 million at the end of the second quarter, representing 17.6% sequential growth and 99% year-over-year growth.

As of July 31, Angel had 2.85 million paying Guild members, Klossner said. Based on trailing-12-month average revenue per member of $13.63 per month, management calculated the membership base represented about $466 million in annual recurring revenue.

Membership Growth and Marketing Efficiency

Co-Founder and CEO Neal Harmon characterized the Guild as the foundation of Angel’s audience-driven entertainment platform. Rather than operating solely as a traditional streaming service or studio, Harmon said the company uses member engagement to help select stories, provide feedback to filmmakers, create awareness around releases and guide investment decisions.

Angel added nearly 400,000 Guild members during the second quarter, while Guild sales and marketing expense declined as a percentage of Guild revenue. Harmon said Guild sales and marketing fell to 52.8% of Guild revenue from 71.6% in the second quarter of 2025. Klossner said the company spent $61.1 million on sales and marketing during the quarter, essentially flat from $61.5 million a year earlier, despite adding 390,000 members versus 230,000 in the prior-year quarter.

For the first half of 2026, Guild sales and marketing expense was 48% of Guild revenue, compared with 78% for full-year 2025, Klossner said. Management attributed the improvement to more efficient customer acquisition and real-time coordination between the finance and marketing teams.

Average revenue per member declined by $0.06 sequentially to $13.63. Klossner said the decrease largely reflected the company’s America 250 campaign, which attracted a higher volume of discounted premium and annual memberships. While annual plans pressure revenue per member, he said they improve cash flow and deferred revenue.

Angel ended June with $83 million in deferred revenue, up from $67 million six months earlier and $40 million a year earlier. Cash and cash equivalents rose to $48 million at quarter-end from $39 million at the end of the first quarter.

Losses, Margins and Outlook

Angel posted a net loss of approximately $23.8 million, or $0.129 per share, compared with a net loss of $15.7 million, or $0.106 per share, in the second quarter of 2025. Gross margin was 54%, down from 69% a year earlier.

Klossner said the lower gross margin reflected a change in revenue mix. In the second quarter of 2025, theatrical and distribution revenue represented 45% of total revenue, aided by the box-office performance of The King of Kings. Those businesses carry structurally higher gross margins than Guild revenue. In the latest quarter, Guild revenue accounted for 84% of revenue, while theatrical distribution represented 16%.

The company reported an adjusted EBITDA loss of $7.7 million for the first six months of 2026, compared with an adjusted EBITDA loss of $46.2 million in the first half of 2025. Management reaffirmed its outlook for a full-year adjusted EBITDA loss of no more than $25 million.

During the question-and-answer session, Klossner said Angel expects to continue investing in member growth as long as acquisition returns meet its internal targets. He said the company could improve profitability by reducing growth spending, but management believes it should continue pursuing its large addressable market while remaining within its cash and adjusted EBITDA objectives.

Theatrical Releases and Content Expansion

Harmon said Angel views theatrical releases as part of a broader platform strategy rather than a separate business. While the company seeks profitable theatrical outcomes, he said theater releases can also bring in new Guild members, build brand awareness, attract filmmakers and add titles to the streaming library.

Young Washington, released during the quarter, delivered one of Angel’s strongest theatrical openings, Harmon said. The company has six of its 10 planned 2026 theatrical releases scheduled for the remainder of the year. Management identified Brink of War and Runner for the third quarter, followed by HERSHEY, Angel and the Badman, Drummer Boy and Zero A.D., which is scheduled for Dec. 11.

Harmon said Angel expects both the third and fourth quarters to generate more theatrical revenue than the second quarter, which management described as an anomaly due to the timing of releases.

The company also expanded its streaming catalog. Angel added 115 films, 31 comedy specials and 340 television episodes so far in 2026, including 18 new series, putting it more than halfway toward its goal of 750 total releases for the year. Harmon said the company is licensing catalog titles from studios to supplement Angel Originals and broaden its values-driven library.

Angel launched its service during the quarter on Comcast X1, Xfinity Flex, Xumo and LG platforms. The company also cited licensing arrangements involving Netflix, Prime Video, Peacock and Hulu. Harmon said the company licensed the DAVID title to Netflix, where it reached No. 1, and said Solo Mio was released on Hulu through a licensing arrangement with Disney.

Technology, Retention and Long-Term Strategy

Management said artificial intelligence tools are being used across the company to improve production, marketing and engineering productivity. Harmon said Angel developed internal systems called Ad Factory and Creative Studio to expand and iterate on advertising across a growing number of titles. He also said the engineering team built enterprise-grade digital rights management technology in under six weeks using AI tools, after a major studio indicated such an upgrade could take more than a year.

Angel does not disclose churn or retention figures, but Harmon and Klossner said retention metrics have improved as the library has expanded and the company has refined recommendations. Management said greater watch time, longer viewing sessions, member voting and getting viewers to the right first and second titles are among factors associated with stronger retention.

Looking ahead, Harmon said Angel expects a similar number of theatrical releases in 2027 as in 2026, though the company could consider moving toward a monthly release cadence. Management also said it sees a path to 5 million members using its current balance sheet and marketing returns, while international expansion could become a priority once the company reaches profitability or generates free cash flow.

About Angel Studios (NYSE:ANGX)

Angel Studios, Inc is a media and entertainment company that develops, produces, distributes and licenses film and television content. The company uses a community-driven model through the Angel Guild, whose members help guide content decisions, and focuses on stories intended to “amplify light.” Angel Studios generates revenue from Guild memberships, theatrical releases, content licensing, merchandise, and its Pay It Forward model.

Angel Studios became publicly traded on the New York Stock Exchange under the ticker symbol ANGX in September 2025 following its business combination with Southport Acquisition Corporation, a special purpose acquisition company.

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