AMC Networks 2025 Q3 Earnings Strong EPS Growth Despite Revenue Decline

AMC Networks (AMCX) reported fiscal 2025 Q3 earnings on November 7, 2025. The company’s revenue declined by 6.3% year-over-year to $561.74 million, missing 2024 Q3’s $599.61 million. However, it exceeded analyst expectations of $549.01 million. Adjusted EPS rose 86% to $1.73, surpassing 2024 Q3’s $0.93, while net income surged 72.4% to $80.08 million. The company reiterated its full-year free cash flow guidance of $250 million, despite ongoing challenges in traditional revenue streams.

Revenue

Domestic subscription revenue remained stable at $316.2 million, as 14% growth in streaming revenue offset a 13% decline in affiliate revenue. Streaming subscribers increased 2% year-over-year to 10.4 million. International revenue rose 4.7% to $77.1 million, driven by a 15.3% increase in advertising revenue. Content licensing revenue, however, dropped 27% due to timing and delivery constraints.

Earnings/Net Income

AMC Networks’ adjusted EPS of $1.73 marked a 86% year-over-year increase, while net income rose 72.4% to $80.08 million. The company has maintained profitability for 15 consecutive years, reflecting resilient business operations. Despite revenue declines, earnings growth underscores strategic shifts toward streaming and cost efficiency.

Post-Earnings Price Action Review

The strategy of purchasing AMC Networks shares on earnings release dates and holding for 30 days has underperformed historically, with a -26.8% APY over three years. This trend aligns with declining revenues and earnings, suggesting risks for such strategies. However, specific price data on the earnings date is missing, making precise APY calculations challenging.

CEO Commentary

CEO Kristin Dolan emphasized progress in transitioning to a global streaming and technology-focused content company. Streaming revenue growth offset affiliate declines, with streaming becoming the largest domestic revenue source. Strategic initiatives include expanding partnerships (e.g., Netflix, DirecTV) and optimizing FAST/AVOD channels. A voluntary buyout program reduced the workforce by less than 5% to align talent with future needs.

Guidance

CFO Patrick O’Connell reiterated 2025 guidance: $250 million free cash flow, $2.3 billion consolidated revenue, and $400–420 million consolidated AOI. The company prioritizes debt reduction, healthy cash flow conversion, and streaming expansion.

Additional News

Recent non-earnings developments include a voluntary buyout program reducing the workforce by less than 5%, renewed distribution agreements with Netflix and DirecTV, and a triple bundle partnership with Amazon Prime Video offering AMC+, MGM+, and Starz. These initiatives aim to enhance subscriber growth and advertising revenue.

Image Suggestion:

A visual representation of AMC Networks’ streaming revenue growth versus traditional revenue decline, highlighting key partnerships and subscriber trends.

Conclusion

AMC Networks’ Q3 results reflect a strategic pivot to streaming despite broader industry headwinds. While revenue challenges persist, earnings growth and operational efficiencies position the company for long-term adaptability. Investors should monitor streaming subscriber trends and debt management as key indicators of future performance.