AMC Global Media Inc. (AMCX) — the company formerly known as AMC Networks — had a mixed first quarter. Revenue came in a bit better than Wall Street expected, but earnings fell short, and the stock took a hit on Friday.
The company reported Q1 revenue of $542.13 million, down 2.4% from a year ago but slightly above the analyst consensus of $540.73 million. The problem was on the bottom line: adjusted earnings per share came in at just 8 cents, down 84.6% from last year and well below the 21 cents analysts were looking for.
Shares were down about 7.8% at $7.89 on Friday afternoon.
Domestic Revenue Still Shrinking
The domestic operations segment, which is still the bulk of AMC's business, saw revenue fall 3.2% year over year to $470.69 million. Subscription revenue dropped 2.6% to $305.28 million, even though streaming revenue grew 11% to $174 million. That growth came from price increases across AMC's streaming services, not from adding subscribers — in fact, streaming subscribers edged down to 10.1 million from 10.2 million a year ago.
Affiliate revenue, the money AMC gets from cable and satellite companies for carrying its channels, fell 16% to $131 million. That's the cord-cutting story playing out in real time. Advertising revenue also declined, down 5% to $113 million, as lower marketplace pricing outweighed some digital ad growth. Content licensing revenue slipped 2.1% to $52.56 million, which the company attributed to the timing of content deliveries.
International Provides a Bright Spot
International revenue bucked the trend, rising 3.3% to $72.26 million. But that wasn't enough to offset the domestic weakness. Consolidated adjusted operating income fell 34% to $68.97 million, and operating cash flow dropped 38% to $67.47 million. Free cash flow came in at $64.82 million, down 31.2% from a year ago. AMC ended the quarter with $552.14 million in cash.
Full-Year Outlook Reaffirmed
CEO Kristen Dolan struck an optimistic tone, saying the company delivered another quarter of double-digit streaming revenue growth and strong free cash flow generation. AMC reaffirmed its full-year guidance: about $2.25 billion in revenue, roughly $350 million in adjusted operating income, and at least $200 million in free cash flow for 2026.
President and Chief Commercial Officer Kim Kelleher pointed to improving advertising trends, including 44% growth in digital advertising and stronger ratings for original programming in key demographics.
New Deals and FAST Expansion
AMC has been busy on the partnership front. Dolan said the company signed a new long-term affiliation agreement with DISH Network Corp. (DISH) and Sling TV, and expanded streaming distribution through bundle partnerships with Charter Communications, Inc. (Charter), Philo, and DirecTV. So far, AMC has recorded 1.8 million hard-bundle activations.
The company also plans to launch 12 additional FAST (free ad-supported TV) channels and expand internationally across the U.K., Latin America, and Spain. And in a nod to the future of viewing, AMC announced a partnership with Meta Platforms, Inc. (Meta) to bring its streaming apps, including AMC+, to Meta Quest headsets later this year.
The Walking Dead Still Has Legs
Content licensing remains a key focus. Dolan said AMC continues to see strong interest in licensing rights for "The Walking Dead" franchise ahead of regaining streaming rights in early 2027. She said the company is evaluating multiple co-exclusive licensing structures with major platform partners.
Kelleher described the content licensing market as "very robust and competitive," while Chief Content Officer Dan McDermott said programming spending and content volume in 2026 are expected to remain broadly consistent with 2025 levels.
So AMC is navigating a tricky transition: streaming is growing, but it's not yet enough to offset the declines in traditional cable. The company is betting on partnerships, FAST channels, and its iconic zombie franchise to bridge the gap. Investors will be watching to see if that bet pays off.
