ANGEL STUDIOS INC (NYSE:ANGX) reported second-quarter results that were essentially in line with Wall Street on revenue and modestly ahead of consensus on the bottom line, but the after-market reaction was negative, with shares trading roughly 4.3% lower following the print.
Headline numbers versus estimates
The quarter came down to a mixed read on expectations. Revenue was effectively flat against the consensus figure, while EPS landed on the favorable side of the analyst range.
Key Q2 metrics:
- Revenue: $111.7 million reported versus $111.9 million expected, a difference of less than 0.2%, so the result is best described as in line with expectations.
- EPS: -$0.13 reported versus -$0.15 expected, a favorable swing of roughly 12%.
- After-market move: shares down about 4.3% in extended trading.
The narrow revenue gap does not represent a miss, and the better-than-expected EPS was not enough to keep the stock from slipping after the announcement. Some of that may reflect valuation after a strong run; shares were up more than 21% over the past month entering the report.
What drove the quarter
Total revenue rose 27.5% year over year to $111.7 million, helped primarily by the Angel Guild subscription base. Guild revenue reached $90.7 million, up 93.8% from the prior-year quarter, and represented roughly 81.2% of total company revenue.
Membership remains the core growth story. The Guild grew to 2.61 million paying members at the end of June, a 99.2% increase from the prior-year period, and the company said membership had surpassed 2.85 million by July 31. Management also highlighted improved acquisition efficiency:
- Guild selling and marketing expense was 52.8% of Guild revenue in Q2 2026, down from 71.6% in Q2 2025.
- Selling and marketing expense in dollar terms was $61.1 million, slightly below the $61.5 million spent in the same quarter last year despite a much larger revenue base.
- Operating cash flow turned positive at $16.9 million, compared with -$10.6 million in the prior-year quarter.
Gross margin fell to roughly 54% from 69%, but the company attributed that primarily to revenue mix. The prior-year quarter included a heavy concentration of theatrical revenue tied to King of Kings, which carries structurally higher margins. Adjusted EBITDA loss narrowed to $11.7 million from $17.5 million a year earlier, though it swung back to a loss after a positive $4.0 million in Q1 2026.
Guidance and the market reaction
The company reiterated its existing target to reduce the full-year 2026 adjusted EBITDA loss to no more than $25 million. It did not provide explicit revenue or GAAP EPS guidance. That leaves the adjusted EBITDA target as the main measurable forward-looking commitment, though it is not directly comparable to consensus revenue estimates of roughly $494.5 million for the full year or the Q3 EPS estimate of -$0.08.
Analysts currently project Q3 revenue of about $125.1 million, which would require meaningful acceleration from the $111.7 million reported in Q2. That expectation is consistent with management's plan to release seven theatrical titles in the second half of 2026 and use those releases to drive further Guild membership growth. The market may be waiting for clearer evidence that those releases can convert into subscriptions at the same efficiency levels achieved during the first half.
The main swing factor remains content timing and mix. Film releases can make revenue and margins lumpy from quarter to quarter, and the comparison base shifts significantly depending on the theatrical slate. If the second-half releases underperform at the box office or fail to attract Guild members at recent rates, the full-year adjusted EBITDA target could come under pressure.
Investors looking for more historical earnings context can review past quarterly results on this earnings page. For updated consensus estimates and projections across upcoming quarters, this forecast page offers a useful reference.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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Angel Studios (NYSE:ANGX) Slips 4.3% as Q2 Revenue Matches, EPS Beats
ANGEL STUDIOS INC (NYSE:ANGX) reported second-quarter results that were essentially in line with Wall Street on revenue and modestly ahead of consensus on the bottom line, but the after-market reaction was negative, with shares trading roughly 4.3% lower following the print.
Headline numbers versus estimates
The quarter came down to a mixed read on expectations. Revenue was effectively flat against the consensus figure, while EPS landed on the favorable side of the analyst range.
Key Q2 metrics:
The narrow revenue gap does not represent a miss, and the better-than-expected EPS was not enough to keep the stock from slipping after the announcement. Some of that may reflect valuation after a strong run; shares were up more than 21% over the past month entering the report.
What drove the quarter
Total revenue rose 27.5% year over year to $111.7 million, helped primarily by the Angel Guild subscription base. Guild revenue reached $90.7 million, up 93.8% from the prior-year quarter, and represented roughly 81.2% of total company revenue.
Membership remains the core growth story. The Guild grew to 2.61 million paying members at the end of June, a 99.2% increase from the prior-year period, and the company said membership had surpassed 2.85 million by July 31. Management also highlighted improved acquisition efficiency:
Gross margin fell to roughly 54% from 69%, but the company attributed that primarily to revenue mix. The prior-year quarter included a heavy concentration of theatrical revenue tied to King of Kings, which carries structurally higher margins. Adjusted EBITDA loss narrowed to $11.7 million from $17.5 million a year earlier, though it swung back to a loss after a positive $4.0 million in Q1 2026.
Guidance and the market reaction
The company reiterated its existing target to reduce the full-year 2026 adjusted EBITDA loss to no more than $25 million. It did not provide explicit revenue or GAAP EPS guidance. That leaves the adjusted EBITDA target as the main measurable forward-looking commitment, though it is not directly comparable to consensus revenue estimates of roughly $494.5 million for the full year or the Q3 EPS estimate of -$0.08.
Analysts currently project Q3 revenue of about $125.1 million, which would require meaningful acceleration from the $111.7 million reported in Q2. That expectation is consistent with management's plan to release seven theatrical titles in the second half of 2026 and use those releases to drive further Guild membership growth. The market may be waiting for clearer evidence that those releases can convert into subscriptions at the same efficiency levels achieved during the first half.
The main swing factor remains content timing and mix. Film releases can make revenue and margins lumpy from quarter to quarter, and the comparison base shifts significantly depending on the theatrical slate. If the second-half releases underperform at the box office or fail to attract Guild members at recent rates, the full-year adjusted EBITDA target could come under pressure.
Investors looking for more historical earnings context can review past quarterly results on this earnings page. For updated consensus estimates and projections across upcoming quarters, this forecast page offers a useful reference.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »