AMCX Q2 Deep Dive: Streaming Growth and Content Licensing Offset Advertising Headwinds

Television broadcasting and production company AMC Networks (NASDAQ:AMCX) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 4.1% year on year to $600 million. Its non-GAAP profit of $0.69 per share was 13% above analysts’ consensus estimates.

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StockStory’s Take

AMC Networks’ second quarter results received a positive market response, reflecting stronger-than-expected growth in streaming and content licensing revenues. Management credited the acceleration in streaming revenue to both higher engagement and successful price increases across platforms like Acorn and HIDIVE. CEO Kristin Dolan pointed to robust fan engagement at events like Comic-Con and highlighted the role of targeted streaming services in driving subscriber loyalty. CFO Patrick O’Connell emphasized that operational discipline and programming efficiencies contributed to higher-than-anticipated free cash flow.

Looking ahead, AMC Networks’ guidance is shaped by anticipated gains in streaming, further international expansion of FAST channels, and continued content licensing strength. Management expects streaming revenue to become the company’s largest revenue source this year, driven by ongoing rate events and subscriber growth. Dolan noted, “We continue to execute our clear strategic plan focused on programming, partnerships and profitability,” while O’Connell described the updated free cash flow outlook as underpinned by tax efficiencies and stable content spend. The company remains focused on leveraging fan-driven franchises and new partnerships to sustain momentum.

Key Insights from Management’s Remarks

Management highlighted streaming platform performance, content licensing, and cost controls as the main drivers behind the quarter’s outperformance versus Wall Street forecasts.

• Streaming platform momentum: AMC Networks reported accelerating streaming revenue growth, supported by recent price increases and improved subscriber retention and engagement. Platforms such as Acorn and HIDIVE saw notable successes, with Acorn’s “Murder Mystery May” event delivering multi-year highs in new sign-ups and HIDIVE benefiting from a price increase without elevated churn.
• Content licensing resilience: The company saw strong content licensing demand from both domestic and international partners, including revenue from the music catalog sale and participation in Apple TV+’s “Silo.” Management noted that licensing revenues fluctuate with delivery schedules but remain a source of strength, especially as owned intellectual property (IP) is leveraged across platforms.
• FAST channel expansion: AMC Networks continued expanding its Free Ad-Supported Streaming TV (FAST) channels, both domestically and internationally. The company now operates more than 20 domestic channels and is rolling out additional offerings in Europe and Latin America, aiming to boost audience reach and digital advertising opportunities.
• Operational cost control: CFO Patrick O’Connell cited ongoing programming cost efficiencies and prudent capital allocation. Recent debt reduction and refinancing activities are expected to support shareholder value, while free cash flow guidance was raised due to tax savings and disciplined spending.
• Ad market challenges and digital pivot: While linear advertising revenue declined due to lower ratings and pricing, digital advertising grew by over 25% year-over-year. Chief Commercial Officer Kim Kelleher highlighted gains in digital ad commitments and the company’s leadership in targeted, cross-platform advertising solutions.

Drivers of Future Performance

Management expects future performance to hinge on streaming growth, international digital expansion, and continued content licensing strength, while navigating linear advertising headwinds.

• Streaming revenue acceleration: Management believes ongoing rate increases and subscriber growth, especially from targeted services like Acorn, HIDIVE, and Shudder, will drive streaming revenue to become AMC Networks’ largest revenue stream in 2025. The company expects low- to mid-teens growth in streaming revenue for the year, supported by high engagement and new content launches.
• International FAST rollout: The expansion of FAST channels into new regions—such as Europe and Latin America—is intended to grow AMC Networks’ global footprint and increase digital advertising opportunities. Management views the scalability of FAST, combined with their content library, as a key lever for future growth.
• Ad market and cost pressures: Despite digital advertising gains, management acknowledged that linear ad revenue remains under pressure from ratings declines and soft market pricing. The company expects continued technical and operating expense increases, mainly tied to streaming marketing, but anticipates cost efficiencies and tax benefits will help offset these headwinds.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will monitor (1) the pace of streaming revenue growth, especially as more rate increases take effect; (2) the expansion and adoption of FAST channels in international markets; and (3) the ability of content licensing to provide consistent, high-margin revenue. Progress in digital advertising and successful new content launches—such as upcoming seasons of major franchises—will also be critical for tracking AMC Networks’ execution.

AMC Networks currently trades at $6.73, up from $6 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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