Angel Studios (ANGX) Financials

Data note: The supplied filings identify the company as Southport Acquisition Corp. (ticker PORT), not Angel Studios (NYSE:ANGX). The analysis below is therefore based on the financial data provided and may not describe Angel Studios.

Revenue has expanded substantially, but profitability remains elusive. Reported quarterly revenue increased from $20.1 million in Q3 2024 to $111.7 million in Q2 2026. Q2 2026 revenue was up approximately 27% from the restated Q2 2025 figure of $87.6 million, although it declined from $115.1 million in Q1 2026. Gross profit increased compared with Q2 2025, reaching $60.0 million, but the gross margin fell to approximately 53.7% from 68.9% a year earlier as cost of revenue grew faster than sales.

Operating losses have improved from the worst levels but remain significant. The company reported an operating loss of $18.5 million in Q2 2026, compared with a $21.3 million loss in Q2 2025 and a $125.6 million loss in Q4 2025. However, marketing expense remained very high at $61.1 million, consuming more than half of revenue. Net loss attributable to common shareholders widened sequentially to $23.8 million from $13.8 million in Q1 2026, partly because of interest and other expenses.

Cash generation improved sharply in the latest quarter, although its quality should be monitored. Operating cash flow was $16.9 million in Q2 2026, compared with $1.9 million in Q1 2026 and negative operating cash flow in Q2 2025. Much of the improvement came from a $35.1 million benefit from changes in operating assets and liabilities, rather than from net income. This suggests that working-capital movements, including deferred revenue and other operating liabilities, were important contributors and may not be fully recurring.

The balance sheet remains highly leveraged and technically undercapitalized. Cash increased to $48.0 million at June 30, 2026, while total liabilities reached $264.4 million. Total debt, including short- and long-term debt, was approximately $74.4 million. Current liabilities of $192.5 million substantially exceeded current assets of $125.3 million, producing a current ratio of roughly 0.65. Shareholders’ equity was negative $29.3 million, although this was an improvement from negative $41.5 million in Q1 2026.

• Revenue scale has increased materially: Quarterly revenue rose from $20.1 million in Q3 2024 to more than $111 million in Q2 2026.
• Operating cash flow turned positive: Q2 2026 operating cash flow of $16.9 million was a significant improvement over the prior quarter and the year-earlier period.
• Liquidity improved year over year: Cash and equivalents increased to $48.0 million from just $0.3 million in Q2 2025.
• Operating losses narrowed from late 2025: The $18.5 million Q2 2026 operating loss was substantially better than the $125.6 million loss reported in Q4 2025.
• Deferred revenue increased: Current deferred revenue reached $82.5 million, up from $50.7 million in Q3 2025, potentially supporting future revenue recognition if obligations are fulfilled.
• Working-capital-driven cash flow: The latest cash-flow improvement was helped by a $35.1 million operating-capital benefit, so investors should determine whether this reflects sustainable customer deposits or temporary timing effects.
• Acquisition spending continues: The company spent $11.1 million on acquisitions in Q2 2026, which could support growth but also increases execution and integration risk.
• Profitability remains weak: The company posted a $23.8 million net loss in Q2 2026 and has reported recurring quarterly losses since Q2 2024, apart from the small profit reported in Q1 2024.
• Marketing spending is extremely high: Q2 2026 marketing expense was $61.1 million, exceeding operating income before expenses and contributing to continued operating losses.
• Leverage and dilution are significant: Debt totaled approximately $74.4 million, equity was negative $29.3 million, and weighted-average basic shares increased to 184.2 million from 149.4 million in Q2 2025, indicating meaningful dilution risk.

Overall, the statements show a business with rapid revenue growth and improved near-term cash generation, but also persistent net losses, heavy marketing requirements, negative equity, weak current-liability coverage and reliance on external financing. The most important trends for investors to monitor are whether revenue growth can translate into positive operating margins, whether operating cash flow remains positive without large working-capital benefits, and whether additional equity or debt financing is required.