Q2 2026 Angel Studios Inc Earnings Call Transcript
Key Points
- Guild membership grew 99% year-over-year to 2.85 million members, exceeding analyst expectations.
- Guild sales and marketing expense decreased to 52.8% of Guild revenue in Q2 2026 from 71.6% in Q2 2025, demonstrating improved operating leverage.
- Total revenue increased 28% year-over-year to $111 million, driven by a 94% increase in Guild revenue.
- Adjusted EBITDA loss improved significantly to $7.7 million in the first half of 2026, compared to $46.2 million in the first half of 2025.
- The company reaffirmed its commitment to limit full-year adjusted EBITDA loss to no more than $25 million, with a clear path to profitability.
- Filmmakers have earned nearly $300 million through Angel Studios, strengthening the filmmaker ecosystem and attracting top talent.
- The company launched on Comcast X1, Xfinity Flex, Xumo, and LG, expanding its reach and improving economic terms.
- AI tools have enabled faster production and marketing, including delivering enterprise-grade DRM in under 6 weeks, a task a major studio estimated would take over a year.
- Theatrical releases like 'Young Washington' have driven Guild growth and brand awareness, with 6 of 10 planned releases still ahead in 2026.
- The company is expanding its library with 115 films, 31 comedy specials, and 340 TV episodes added so far in 2026, on track to exceed its 750-release goal.
- Net loss widened to $23.8 million in Q2 2026 from $15.7 million in Q2 2025, with net loss per share increasing to $0.129 from $0.106.
- Gross margin declined to 54% in Q2 2026 from 69% in Q2 2025, due to a shift in revenue mix toward lower-margin Guild revenue.
- Average revenue per member (ARPM) decreased slightly to $13.63, impacted by the America250 campaign's premium and annual memberships.
- The company remains in a growth phase, spending heavily on sales and marketing, which limits near-term profitability.
- Theatrical revenue is unpredictable and can cause volatility in financial results, as seen in Q2 2025's high concentration from 'King of Kings'.
- The company faces seasonality in advertising costs and consumer behavior, which could impact marketing efficiency in the second half of the year.
- The company is not yet profitable and relies on continued growth to achieve its adjusted EBITDA guidance, with any slowdown in growth potentially impacting results.
- The transfer of super voting shares to the Angel Mission Trust involves issuing approximately 10 million shares, which could dilute existing shareholders.
- The company's reliance on AI tools and technology for marketing and production may pose risks if these tools fail to deliver expected results.
- International expansion is still in early stages, and the company has not yet provided a clear timeline for entering new markets.
(video playing)
Hello, everyone. Welcome to Angel's Second Quarter 2026 Earnings Call. Joining me are Angel's Co-Founder and CEO, Neal Harmon; and Angel's CFO, Scott Klossner. Before we begin, I would like to remind everyone that certain statements made on today's call, including statements regarding future financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
Information regarding these risks and uncertainties is included in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. These forward-looking statements represent our outlook only as of the date of this call, and we undertake no obligation to
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