What Angel Studios (ANGX) Said on Its Q3 Earnings Call

Key Points

• Revenue rose 108% to $159 million in Q3, while net loss narrowed to $5.2 million. Paying Angel Guild membership grew 86% year over year to 2.94 million.
• Guild marketing spending fell to 55% of Guild revenue from 75% a year earlier as membership expanded. Angel reported $29.1 million in operating cash flow for the first nine months and reaffirmed its full-year adjusted EBITDA loss guidance of less than $25 million.
• Angel plans 10 theatrical releases this year, up from eight last year; “Young Washington” led Q3 releases with $47 million in domestic box-office revenue. Executives also said the company will expand internationally gradually and is testing AI tools to support content production.

Angel Studios NYSE: ANGX more than doubled third-quarter revenue and narrowed its loss as paying membership in its Angel Guild grew 86% from a year earlier, executives said on the company’s earnings call.

Revenue rose 108% to $159 million, while the net loss narrowed to $5.2 million, or $0.03 per share, from $38.5 million, or $0.25 per share, a year earlier. The company generated $10.3 million in operating cash flow during the quarter.

Co-founder and CEO Neal Harmon said Angel increased membership while spending more efficiently on marketing. The company ended September with 2.94 million paying Guild members, adding about 335,000 during the quarter, compared with roughly 269,000 in the prior-year period.

Guild Growth and Marketing Efficiency

Guild revenue increased 95% year over year to $115.6 million and rose 27% from the second quarter. Chief Financial Officer Scott Klossner said Guild marketing spending fell to 55% of Guild revenue from 75% a year earlier, even as the company added more members.

Angel’s adjusted EBITDA loss narrowed to $3.2 million from $32.6 million in the third quarter of 2025. For the first nine months of 2026, the adjusted EBITDA loss was $10.9 million, compared with $78.8 million a year earlier.

Klossner reiterated the company’s full-year guidance for an adjusted EBITDA loss of less than $25 million. He said Angel expects fourth-quarter growth to meet the expectations included in that guidance.

Executives attributed some of the improvement to a more disciplined response to seasonal trends. Klossner said member acquisition slowed in the final two weeks of September and into October as viewing declined around the back-to-school period. Angel reduced spending when acquisition was less efficient rather than marketing as heavily through the slowdown, he said.

Marketing expense as a share of Guild revenue can fluctuate from quarter to quarter, Klossner said, because the company spends more when acquisition opportunities meet its return targets. Harmon said the period from Thanksgiving through Christmas has historically been a major growth season for Angel.

Trailing 12-month average revenue per member was $13.73 per month, up $0.10 from the previous quarter. Klossner said annual memberships are discounted but bring in cash upfront and retain customers better than monthly plans. Using the member count and average monthly revenue, Angel calculated annual recurring revenue of approximately $484 million.

Cash Flow, Releases and the Holiday Slate

Operating cash flow for the first nine months was positive $29.1 million, compared with negative $52.5 million a year earlier. Angel ended September with $45.6 million in cash and cash equivalents, while notes payable declined to $75.5 million from $97.2 million at the start of the year.

Asked how much operating cash flow reflected sustainable business performance rather than working-capital benefits, Klossner did not provide a numerical breakdown. He said deferred revenue from annual memberships supplies working capital, while lower losses and more efficient marketing also contribute to cash generation.

Gross margin improved to 63% from 55% a year earlier and 54% in the second quarter. Klossner said a greater mix of theatrical revenue generates a higher gross-margin percentage.

Harmon said “Young Washington” led Angel’s third-quarter theatrical releases with $47 million in domestic box-office revenue. He said “Drummer Boy: The Musical” opened in the top three with $9.3 million at the box office. Angel’s fourth-quarter slate also includes “Angel and the Badman,” “Hershey” and “Zero A.D.”

The company plans 10 theatrical releases this year, up from eight last year. Harmon said Angel does not foresee releasing more than 12 films in theaters annually and plans to announce its 2027 slate in April.

Angel has surpassed its goal of adding 750 releases to its library in 2026, Harmon said. He expects the pace of streaming additions to increase as the Guild grows. The company signs revenue-sharing agreements rather than paying upfront for titles it brings onto the platform, he said.

International Plans and Technology

Harmon said Angel expects more international activity but plans to expand gradually and within its financial means. The company has tested Spanish-language offerings in the U.S. in preparation for Mexico and Latin America, and has also conducted tests in the U.K. and Canada.

Angel’s internally developed Ad Factory helps the marketing team produce and test advertising assets quickly, Klossner said. Harmon added that the company can run targeted campaigns for library titles while its team concentrates more heavily on major releases.

Harmon said he expects artificial intelligence to lower production costs and increase the number of titles reaching the market. He also said Angel has enabled teams behind shows including “David,” “Young David,” “Tuttle Twins” and “The Wingfeather Saga” to experiment with AI tools for content production.

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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