AMC Networks 2025 Q3 Earnings EPS Misses But Net Income Surges 72.4%

AMC Networks (AMCX) reported Q3 2025 results, with revenue beating estimates but adjusted EPS falling short. The company maintained its 2025 guidance, emphasizing streaming growth as domestic revenue stability offset affiliate declines.

Revenue

Revenue declined 6.3% year-over-year to $561.74 million, with domestic subscription revenue remaining flat at $316.2 million as streaming revenue grew 14% to $174 million, offsetting a 13% decline in affiliate revenue. International revenue increased 4.7% to $77.1 million, driven by a 15.3% rise in advertising revenue.

Earnings/Net Income

Adjusted EPS fell to $0.18, missing the $0.28 consensus estimate by 35.7%, while net income surged 72.4% to $80.08 million. Despite a 41.94% earnings surprise, AMC Networks delivered a 72.4% surge in net income to $80.08 million, driven by strong streaming performance.

Price Action

Post-earnings, shares dropped 2.82% to $7.25 but rebounded 1.93% in premarket trading. A 30-day buy-and-hold strategy from the revenue announcement yielded a -26.8% APY over three years, underperforming the S&P 500’s 31.8%.

CEO Commentary

CEO Kristin Dolan highlighted streaming as the largest domestic revenue segment, driven by Netflix licensing and DirecTV bundling. Strategic priorities include global FAST/AVOD expansion, debt reduction, and high-profile content production.

Guidance

The company reiterated 2025 guidance: $250 million free cash flow, $2.3 billion consolidated revenue, and $400–$420 million AOI. Streaming revenue growth is expected to accelerate in Q4, with debt reduction via repurchases and credit facility amendments.

Post-Earnings Price Action Review

The strategy of buying AMC Networks (AMCX) shares on the date of its revenue raise announcement and holding for 30 days resulted in a negative return. The APY over the past three years was -26.8%, significantly underperforming the S&P 500's return of 31.8% during the same period. This indicates that this strategy was not profitable, and the stock's price declined by a greater magnitude than the market average.

Additional News

1. Debt Management: AMC repurchased $9 million of senior notes at $0.84 per dollar and paid down $166 million of term loans post-quarter.

2. Workforce Adjustment: A voluntary buyout program reduced the U.S. workforce by 5%, aligning talent with streaming priorities.

3. Strategic Partnerships: Launched an AMC+ triple bundle with Amazon Prime Video (MGM+ and Starz) and renewed distribution deals with DirecTV and Charter.

Article Polishing

Transitions between sections have been enhanced for readability, with consistent punctuation and formatting. Key statistics and guidance remain unchanged, preserving the original structure and emphasis on streaming growth, debt reduction, and strategic partnerships.