SEC Form 10-Q filed by AMC Networks Inc.

11/7/25 4:02:53 PM ET

$AMCX

Cable & Other Pay Television Services

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amcx-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2025


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 1-35106

AMC Networks Inc.

(Exact name of registrant as specified in its charter)


Nevada		27-5403694
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

11 Penn Plaza,
New York,	NY	10001
(Address of principal executive offices)		(Zip Code)

(212) 324-8500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.01 per share

AMCX

The

NASDAQ

Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company (as defined in Exchange Act Rule 12b-2).


Large accelerated filer	¨	Accelerated filer	þ

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of common stock outstanding as of October 31, 2025:


Class A Common Stock par value $0.01 per share			32,042,361
Class B Common Stock par value $0.01 per share			11,484,408

AMC NETWORKS INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Income			2
Condensed Consolidated Statements of Comprehensive Incom e			3
Condensed Consolidated Statements of Stockholders' Equity			4
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			28
Item 3. Quantitative and Qualitative Disclosures About Market Risk			44
Item 4. Controls and Procedures			44
PART II. OTHER INFORMATION
Item 1. Legal Proceedings			45
Item 1A. Risk Factors			45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			45

Item 6. Exhibits			46
SIGNATURES			47

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)


	September 30, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	716,838	$	784,649
Accounts receivable, trade (less allowance for doubtful accounts of $9,987 and $9,468)	571,613		623,898

Prepaid expenses and other current assets	228,712		262,257
Total current assets	1,517,163		1,670,804
Property and equipment, net of accumulated depreciation of $414,817 and $458,396	123,602		143,036
Program rights, net	1,731,418		1,713,952
Intangible assets, net	196,780		216,478
Goodwill	260,015		246,304
Deferred tax assets, net	18,592		13,183
Operating lease right-of-use assets	46,065		58,390
Other assets	315,759		300,074
Total assets	$	4,209,394	$	4,362,221
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	88,549	$	88,570
Accrued liabilities	281,641		290,718
Current portion of program rights obligations	229,782		221,603
Deferred revenue	74,495		61,838
Current portion of long-term debt	7,500		7,500
Current portion of lease obligations	33,793		32,439
Total current liabilities	715,760		702,668
Program rights obligations	207,810		144,476
Long-term debt, net	1,911,213		2,328,719
Lease obligations	42,855		64,581
Deferred tax liabilities, net	146,274		121,302
Other liabilities	41,837		60,334
Total liabilities	3,065,749		3,422,080
Commitments and contingencies
Redeemable noncontrolling interests	60,389		55,881
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized: 66,730 and 66,730 shares issued and 31,971 and 32,636 shares outstanding, respectively	667		667
Class B Common Stock, $0.01 par value, 90,000 shares authorized: 11,484 shares issued and outstanding	115		115
Preferred stock, $0.01 par value, 45,000 shares authorized: none issued	—		—
Paid-in capital	438,924		437,860
Accumulated earnings	2,231,593		2,092,229
Treasury stock, at cost (34,759 and 34,094 shares Class A Common Stock, respectively)	(1,399,122)		(1,408,307)
Accumulated other comprehensive loss	(219,321)		(266,969)
Total AMC Networks stockholders' equity	1,052,856		855,595
Non-redeemable noncontrolling interests	30,400		28,665
Total stockholders' equity	1,083,256		884,260
Total liabilities and stockholders' equity	$	4,209,394	$	4,362,221

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues, net	$	561,741	$	599,614	$	1,716,998	$	1,822,009
Operating expenses:
Technical and operating (excluding depreciation and amortization)	291,075		287,746		842,297		840,049
Selling, general and administrative	189,291		191,622		608,970		588,679
Depreciation and amortization	21,378		23,097		68,750		75,416
Impairment and other charges	—		—		—		96,819
Restructuring and other related charges	4,479		3,496		12,797		6,427
Total operating expenses	506,223		505,961		1,532,814		1,607,390
Operating income	55,518		93,653		184,184		214,619
Other income (expense):
Interest expense	(44,574)		(45,123)		(130,426)		(121,180)
Interest income	6,113		9,303		22,733		27,480
Gain (loss) on extinguishment of debt, net	105,316		(352)		131,061		(105)
Miscellaneous, net	473		8,850		21,180		5,153
Total other income (expense)	67,328		(27,322)		44,548		(88,652)
Income from operations before income taxes	122,846		66,331		228,732		125,967
Income tax expense	(42,765)		(19,891)		(73,792)		(54,433)
Net income including noncontrolling interests	80,081		46,440		154,940		71,534
Less: Net income attributable to noncontrolling interests	(3,552)		(5,058)		(10,073)		(13,583)
Net income attributable to AMC Networks' stockholders	$	76,529	$	41,382	$	144,867	$	57,951

Net income per share attributable to AMC Networks' stockholders:
Basic	$	1.73	$	0.93	$	3.25	$	1.31
Diluted	$	1.38	$	0.76	$	2.63	$	1.21

Weighted average common shares:
Basic	44,136		44,607		44,606		44,381
Diluted	56,275		56,149		56,412		49,038

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income including noncontrolling interests	$	80,081	$	46,440	$	154,940	$	71,534
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,929)		20,563		50,381		4,997




Comprehensive income	78,152		67,003		205,321		76,531
Less: Comprehensive income attributable to noncontrolling interests	(3,015)		(6,655)		(12,806)		(14,903)
Comprehensive income attributable to AMC Networks' stockholders	$	75,137	$	60,348	$	192,515	$	61,628

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands)

(unaudited)


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total AMC Networks Stockholders’ Equity		Non-redeemable Noncontrolling Interests		Total Stockholders' Equity
Balance, June 30, 2025	$	667	$	115	$	433,374	$	2,155,064	$	(1,399,599)	$	(217,929)	$	971,692	$	36,015	$	1,007,707
Net income attributable to AMC Networks’ stockholders	—		—		—		76,529		—		—		76,529		—		76,529
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		2,193		2,193


Distribution to noncontrolling member	—		—		—		—		—		—		—		(7,271)		(7,271)

Other comprehensive income (loss)	—		—		—		—		—		(1,392)		(1,392)		(537)		(1,929)
Share-based compensation expenses	—		—		6,027		—		—		—		6,027		—		6,027


Common stock issued under employee stock plans	—		—		(477)		—		477		—		—		—		—

Balance, September 30, 2025	$	667	$	115	$	438,924	$	2,231,593	$	(1,399,122)	$	(219,321)	$	1,052,856	$	30,400	$	1,083,256


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total AMC Networks Stockholders’ Equity		Non-redeemable Noncontrolling Interests		Total Stockholders' Equity
Balance, June 30, 2024	$	667	$	115	$	374,353	$	2,335,526	$	(1,408,832)	$	(248,120)	$	1,053,709	$	28,383	$	1,082,092
Net loss attributable to AMC Networks’ stockholders	—		—		—		41,382		—		—		41,382		—		41,382
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		1,245		1,245





Redeemable noncontrolling interest adjustment to redemption fair value	—		—		(2,784)		—		—		—		(2,784)		—		(2,784)

Other comprehensive income (loss)	—		—		—		—		—		18,966		18,966		1,597		20,563

Share-based compensation expenses	—		—		5,776		—		—		—		5,776		—		5,776


Balance, September 30, 2024	$	667	$	115	$	377,345	$	2,376,908	$	(1,408,832)	$	(229,154)	$	1,117,049	$	31,225	$	1,148,274

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands)

(unaudited)


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total AMC Networks Stockholders’ Equity		Non-redeemable Noncontrolling Interests		Total Stockholders' Equity
















Balance, December 31, 2024	$	667	$	115	$	437,860	$	2,092,229	$	(1,408,307)	$	(266,969)	$	855,595	$	28,665	$	884,260
Net income attributable to AMC Networks’ stockholders	—		—		—		144,867		—		—		144,867		—		144,867
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		6,273		6,273
Redeemable noncontrolling interest adjustment to redemption fair value	—		—		(708)		—		—		—		(708)		—		(708)

Distributions to noncontrolling member	—		—		—		—		—		—		—		(7,271)		(7,271)

Other comprehensive income (loss)	—		—		—		—		—		47,648		47,648		2,733		50,381
Share-based compensation expenses	—		—		19,827		—		—		—		19,827		—		19,827

Treasury stock acquired	—		—		—		—		(10,329)		—		(10,329)		—		(10,329)
Common stock issued under employee stock plans	—		—		(14,011)		(5,503)		19,514		—		—		—		—
Tax withholding associated with shares issued under employee stock plans	—		—		(4,044)		—		—		—		(4,044)		—		(4,044)
Balance, September 30, 2025	$	667	$	115	$	438,924	$	2,231,593	$	(1,399,122)	$	(219,321)	$	1,052,856	$	30,400	$	1,083,256


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total AMC Networks Stockholders’ Equity		Non-redeemable Noncontrolling Interests		Total Stockholders' Equity
Balance, December 31, 2023	$	667	$	115	$	378,877	$	2,321,105	$	(1,419,882)	$	(232,831)	$	1,048,051	$	25,895	$	1,073,946
Net income attributable to AMC Networks’ stockholders	—		—		—		57,951		—		—		57,951		—		57,951
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		10,203		10,203
Distributions to noncontrolling member	—		—		—		—		—		—		—		(6,193)		(6,193)
Redeemable noncontrolling interest adjustment to redemption fair value	—		—		(8,312)		—		—		—		(8,312)		—		(8,312)


Other comprehensive income (loss)	—		—		—		—		—		3,677		3,677		1,320		4,997
Share-based compensation expenses	—		—		20,308		—		—		—		20,308		—		20,308

Common stock issued under employee stock plans	—		—		(8,902)		(2,148)		11,050		—		—		—		—
Tax withholding associated with shares issued under employee stock plans	—		—		(4,626)		—		—		—		(4,626)		—		(4,626)
Balance, September 30, 2024	$	667	$	115	$	377,345	$	2,376,908	$	(1,408,832)	$	(229,154)	$	1,117,049	$	31,225	$	1,148,274

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities:
Net income including noncontrolling interests	$	154,940	$	71,534
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	68,750		75,416
Non-cash impairment and other charges	—		96,819
Share-based compensation expenses related to equity classified awards	19,827		20,308
Non-cash restructuring and other related charges	5,320		1,641
Amortization and write-off of program rights	625,870		641,706
Amortization of deferred carriage fees	18,210		18,362
Unrealized foreign currency transaction gain	(11,650)		(5,311)
Amortization of deferred financing costs and discounts on indebtedness	5,611		5,375
(Gain) loss on extinguishment of debt, net	(131,061)		105

Deferred income taxes	20,587		(9,857)


Other, net	(7,531)		(667)
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)	58,753		18,012
Prepaid expenses and other assets	41,461		184,066
Program rights and obligations, net	(569,241)		(691,545)

Deferred revenue	13,505		2,847

Accounts payable, accrued liabilities and other liabilities	(56,927)		(111,304)
Net cash provided by operating activities	256,424		317,507
Cash flows from investing activities:
Capital expenditures	(24,502)		(24,252)






Other investing activities, net	(8)		4,085
Net cash used in investing activities	(24,510)		(20,167)
Cash flows from financing activities:
Proceeds from the issuance of 10.50% Senior Secured Notes due 2032, net	394,500		—
Proceeds from the issuance of 10.25% Senior Secured Notes due 2029, net	—		862,969
Proceeds from the issuance of 4.25% Convertible Senior Notes due 2029, net	—		139,437
Tender and redemption of 4.75% Senior Notes due 2025	—		(774,729)
Principal payments on Term Loan A Facility	(114,375)		(233,750)
Tender and repurchase of 4.25% Senior Notes due 2029	(569,078)		(10,129)
Payments for financing costs	(3,094)		(10,450)
Deemed repurchases of restricted stock units	(4,044)		(4,626)
Purchase of treasury stock	(10,329)		—
Principal payments on finance lease obligations	(3,542)		(3,461)

Distributions to noncontrolling interests	(7,271)		(18,000)

Net cash used in financing activities	(317,233)		(52,739)
Net increase (decrease) in cash and cash equivalents from operations	(85,319)		244,601
Effect of exchange rate changes on cash and cash equivalents	17,508		1,200
Cash and cash equivalents at beginning of period	784,649		570,576
Cash and cash equivalents at end of period	$	716,838	$	816,377

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Description of Business and Basis of Presentation

Description of Business

AMC Networks Inc. ("AMC Networks") and its subsidiaries (collectively referred to as the "Company," "we," "us," or "our") own and operate entertainment businesses and assets. The Company is comprised of two operating segments:

•Domestic Operations: Consists of our five national programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, We TV, BBC AMERICA ("BBCA"), IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks.

•International: Consists of AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels distributed around the world.

Basis of Presentation

Principles of Consolidation

The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling financial interest is maintained or variable interest entities in which the Company has determined it is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.

Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method of accounting.

Unaudited Interim Financial Statements

These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the Company's consolidated financial statements and notes thereto for the year ended December 31, 2024 contained in the Company's Annual Report on Form 10-K (our "2024 Form 10-K") filed with the SEC. The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented.

The results of operations for interim periods are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending December 31, 2025.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets.

Reclassifications

Certain reclassifications were made to the prior period amounts to conform to the current period presentation.

Recently Issued Accounting Standards

In September 2025, the Financial Accounting Standards Board ("FASB") issued guidance to simplify the capitalization of costs to develop software for internal use by eliminating the consideration of software development project stages. Instead, costs will be capitalized when management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used to perform its intended function. The new guidance is effective January 1, 2028 and can be applied prospectively, retrospectively, or with a modified prospective approach. The Company does not expect the adoption of this standard will have a material impact on its consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

In July 2025, the FASB issued guidance that provides a practical expedient for estimating credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606, Revenue from Contracts with Customers. Under the new standard, in lieu of developing forecasts of future economic conditions, entities can elect a practical expedient that assumes the current conditions as of the balance sheet date remain consistent for the remaining life of the asset. The new guidance is effective January 1, 2026 and is to be applied prospectively, with early adoption permitted. The Company does not expect the adoption of this standard will have a material impact on its consolidated financial statements.

In November 2024, the FASB issued guidance that is intended to provide investors more detailed disclosures around specific types of expenses in the notes to the financial statements for interim and annual reporting periods. The Company will incorporate the required disclosure updates for the 2027 annual financial statements, and is currently assessing whether to apply the updates prospectively or retrospectively.

In December 2023, the FASB issued guidance that is intended to enhance the transparency and decision usefulness of income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company will incorporate the required disclosure updates for the 2025 annual financial statements.

Note 2. Revenue Recognition

In the first quarter of 2025, the Company updated the definitions of "affiliate revenues" and "streaming revenues." These changes have no effect on the Company's consolidated financial statements or results of operations. The impact of these changes to historical affiliate revenues and streaming revenues is not material. The new definitions are as follows:

Affiliate revenues: Represents fees received from distributors for the rights to use the Company's programming under multi-year contracts, commonly referred to as "affiliation agreements." Affiliate revenues also include fees received from distributors who provide access to the Company's streaming services to end users through a video package that also includes access to the Company's programming networks. Affiliate revenues are earned from cable and other multichannel video programming distribution platforms, including direct broadcast satellite and platforms operated by telecommunications providers and virtual multichannel video programming distributors.

Streaming revenues: Represents fees for the Company's streaming services earned from the Company's direct-to-consumer platforms as well as through streaming platform arrangements with companies that sell the Company's streaming services on the Company's behalf.

Transaction Price Allocated to Future Performance Obligations

As of September 30, 2025, other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to remaining performance obligations was not material to our consolidated revenues.

Contract Balances from Contracts with Customers

The following table provides information about accounts receivable and contract liabilities from contracts with customers.


(In thousands)	September 30, 2025		December 31, 2024
Balances from contracts with customers:
Accounts receivable (including long-term receivables within Other assets)	$	599,375	$	674,631


Contract liabilities, short-term (Deferred revenue)	74,495		61,838

Revenue recognized for the nine months ended September 30, 2025 and 2024 relating to the contract liabilities at December 31, 2024 and 2023 was $39.6 million and $46.5 million, respectively.

During the second quarter of 2024, we recognized revenues of $13.4 million for a one-time retroactive adjustment reported and paid by a third party, for which our performance obligation was satisfied in a prior period.

In October 2023, the Company entered into an agreement enabling it to sell certain customer receivables to a financial institution on a recurring basis for cash. The transferred receivables will be fully guaranteed by a bankruptcy-remote entity and the financial institution that purchases the receivables will have no recourse to the Company's other assets in the event of non-payment by the customers. The Company can sell an indefinite amount of customer receivables under the agreement on a revolving basis, but the outstanding balance of unpaid customer receivables to the financial institution cannot exceed the initial program limit of $125.0 million at any given time. As of September 30, 2025, the Company had not yet sold any customer receivables under this agreement.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Note 3. Net Income per Share

Net income per basic share is based upon net income attributable to AMC Networks' stockholders divided by the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding during the period. Net income per diluted share reflects the dilutive effects, if any, of AMC Networks' outstanding equity-based awards and the assumed conversion of the Company's 4.25% Convertible Senior Notes due 2029 (the "Convertible Notes") issued in June 2024.


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income attributable to AMC Networks' stockholders used for basic net income per share	$	76,529	$	41,382	$	144,867	$	57,951
Add: Convertible Notes interest expense, net of tax	1,146		1,144		3,437		1,260
Net income attributable to AMC Networks' stockholders used for diluted net income per share	$	77,675	$	42,526	$	148,304	$	59,211

Basic weighted average common shares outstanding	44,136		44,607		44,606		44,381
Effect of dilution:
Restricted stock units	854		257		521		456
Convertible Notes	11,285		11,285		11,285		4,201
Diluted weighted average common shares outstanding	56,275		56,149		56,412		49,038

Net income per share attributable to AMC Networks' stockholders:
Basic	$	1.73	$	0.93	$	3.25	$	1.31
Diluted	$	1.38	$	0.76	$	2.63	$	1.21

For the three and nine months ended September 30, 2025, no restricted stock units ("RSUs") have been excluded from the diluted weighted average common shares outstanding due to their impact being antidilutive.

For the three and nine months ended September 30, 2024, 2.8 million of RSUs have been excluded from the diluted weighted average common shares outstanding, as their impact would have been antidilutive.

Stock Repurchase Program

The Company's Board of Directors previously authorized a program to repurchase up to $1.5 billion of its outstanding shares of Class A Common Stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. During the second quarter of 2025, the Company repurchased 1.6 million shares of its Class A Common Stock at an average purchase price of $6.48 per share. As of September 30, 2025, the Company had $124.9 million of authorization remaining for repurchase under the Stock Repurchase Program.

Note 4. Restructuring and Other Related Charges

Restructuring and other related charges were $4.5 million for the three months ended September 30, 2025. During the third quarter of 2025, we expanded our restructuring plan related to the International segment and implemented a voluntary buyout program for employees in Argentina designed to achieve cost reductions and streamline operations in response to challenging industry conditions. Additionally, during the third quarter of 2025, we implemented organizational changes in our Domestic Operations segment designed to create an enhanced offering that is intended to maximize the potential of our We TV and ALLBLK brands. Additional restructuring charges were incurred in connection with the wind-down of a U.K. joint venture in our International segment.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Restructuring and other related charges were $12.8 million for the nine months ended September 30, 2025, primarily related to our multi-faceted restructuring plan in our International segment ("AMCNI Plan") designed to achieve cost reductions and streamline operations including channel re-branding and a reduction of workforce in Southern Europe, the wind-down of a U.K. joint venture, and a voluntary buyout program for employees in Argentina. The Company will incur additional restructuring charges in connection with the AMCNI Plan, which is expected to be substantially completed in the first half of 2026.

In October 2025, the Company announced a voluntary buyout program for U.S. employees, which is expected to result in modifications to the organizational structure of the Company and reduced employee costs. The Company expects to recognize approximately $15.0 - $20.0 million of severance charges during the fourth quarter of 2025 in connection with the employees who participate in the program.

Restructuring and other related charges were $3.5 million for the three months ended September 30, 2024, consisting primarily of severance and employee-related costs, and $6.4 million for the nine months ended September 30, 2024, consisting primarily of severance and employee-related costs, as well as content impairments in connection with We TV shifting to a reduced originals strategy.

The following table summarizes the restructuring and other related charges (credits) recognized by operating segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2025		2024		2025		2024
Domestic Operations	$	1,609	$	3,454	$	(812)	$	6,385
International	2,870		—		13,609		—
Corporate / Inter-segment eliminations	—		42		—		42
Total restructuring and other related charges	$	4,479	$	3,496	$	12,797	$	6,427

The following table summarizes accrued restructuring and other related costs:


(In thousands)	Severance and Employee-Related Costs		Content Impairments and Other Exit Costs		Total
Balance at December 31, 2024	$	4,884	$	1,337	$	6,221
Charges	7,852		4,945		12,797
Cash payments	(10,292)		(792)		(11,084)
Non-cash content impairment adjustments	—		(5,320)		(5,320)
Other	(65)		1,642		1,577
Balance at September 30, 2025	$	2,379	$	1,812	$	4,191

Accrued restructuring and other related costs of $4.2 million and $6.2 million are included in Accrued liabilities in the condensed consolidated balance sheets at September 30, 2025 and December 31, 2024, respectively.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Note 5. Program Rights

Total capitalized produced and licensed content by predominant monetization strategy is as follows:


	September 30, 2025
(In thousands)	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total
Owned original program rights, net:
Completed	$	41,651	$	618,007	$	659,658
In-production and in-development	—		268,845		268,845
Total owned original program rights, net	$	41,651	$	886,852	$	928,503

Licensed program rights, net:
Licensed film and acquired series	$	73	$	601,285	$	601,358
Licensed originals	—		139,769		139,769
Advances and other production costs	—		71,656		71,656
Total licensed program rights, net	73		812,710		812,783
Program rights, net	$	41,724	$	1,699,562	$	1,741,286

Current portion of program rights, net					$	9,868
Program rights, net (long-term)					1,731,418
					$	1,741,286


	December 31, 2024
(In thousands)	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total
Owned original program rights, net:
Completed	$	65,129	$	647,632	$	712,761
In-production and in-development	—		222,660		222,660
Total owned original program rights, net	$	65,129	$	870,292	$	935,421

Licensed program rights, net:
Licensed film and acquired series	$	261	$	543,396	$	543,657
Licensed originals	—		147,245		147,245
Advances and other production costs	—		90,318		90,318
Total licensed program rights, net	261		780,959		781,220
Program rights, net	$	65,390	$	1,651,251	$	1,716,641

Current portion of program rights, net					$	2,689
Program rights, net (long-term)					1,713,952
					$	1,716,641

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Amortization of program rights (including write-offs) included in Technical and operating expenses in the condensed consolidated statements of income, is as follows:


	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
(In thousands)	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total		Predominantly Monetized Individually		Predominantly Monetized as a Group		Total

Owned original program rights	$	7,515	$	90,334	$	97,849	$	23,053	$	268,767	$	291,820
Licensed program rights	46		118,344		118,390		188		333,862		334,050
	$	7,561	$	208,678	$	216,239	$	23,241	$	602,629	$	625,870


	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
(In thousands)	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total		Predominantly Monetized Individually		Predominantly Monetized as a Group		Total

Owned original program rights	$	20,707	$	77,289	$	97,996	$	62,872	$	215,959	$	278,831
Licensed program rights	148		128,846		128,994		1,980		360,895		362,875
	$	20,855	$	206,135	$	226,990	$	64,852	$	576,854	$	641,706

There were no significant program rights write-offs included in technical and operating expenses for the three and nine months ended September 30, 2025 or 2024.

In the normal course of business, the Company may qualify for tax incentives through eligible spend on productions. Receivables related to tax incentives earned on production spend as of September 30, 2025 consisted of $163.2 million recorded in Prepaid expenses and other current assets and $83.5 million recorded in Other assets. Receivables related to tax incentives earned on production spend as of December 31, 2024 consisted of $182.0 million recorded in Prepaid expenses and other current assets and $42.4 million recorded in Other assets.

Note 6. Investments

The Company holds several investments in and loans to non-consolidated entities that are included in Other assets in the condensed consolidated balance sheets. Equity method investments were $88.8 million and $81.8 million at September 30, 2025 and December 31, 2024, respectively. Investments in non-marketable equity securities were $44.6 million and $43.9 million at September 30, 2025 and December 31, 2024, respectively.

Note 7. Goodwill and Other Intangible Assets

The carrying amount of goodwill, by operating segment, is as follows:


(In thousands)	Domestic Operations		International		Total
December 31, 2024	$	80,038	$	166,266	$	246,304



Foreign currency translation	—		13,711		13,711
September 30, 2025	$	80,038	$	179,977	$	260,015

As of September 30, 2025 and December 31, 2024, accumulated impairment charges totaled $556.2 million.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

The following tables summarize information relating to the Company's identifiable intangible assets:


(In thousands)	September 30, 2025
	Gross		Accumulated Amortization		Net		Estimated Useful Lives
Amortizable intangible assets:
Affiliate and customer relationships	$	628,822	$	(491,853)	$	136,969	6 to 25 years
Advertiser relationships	46,282		(46,282)		—		11 years
Trade names and other amortizable intangible assets	91,888		(51,977)		39,911		3 to 20 years

Total amortizable intangible assets	766,992		(590,112)		176,880
Indefinite-lived intangible assets:
Trademarks	19,900		—		19,900
Total intangible assets	$	786,892	$	(590,112)	$	196,780














(In thousands)	December 31, 2024
	Gross		Accumulated Amortization		Net
Amortizable intangible assets:
Affiliate and customer relationships	$	610,048	$	(456,052)	$	153,996
Advertiser relationships	46,282		(46,282)		—
Trade names and other amortizable intangible assets	88,751		(46,169)		42,582

Total amortizable intangible assets	745,081		(548,503)		196,578
Indefinite-lived intangible assets:
Trademarks	19,900		—		19,900
Total intangible assets	$	764,981	$	(548,503)	$	216,478

Aggregate amortization expense for amortizable intangible assets for the three months ended September 30, 2025 and 2024 was $7.6 million and $7.9 million, respectively, and for the nine months ended September 30, 2025 and 2024 was $23.4 million and $26.1 million, respectively.

Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is:


(In thousands)
Years Ending December 31,
2025	$	31,222
2026	30,374
2027	25,399
2028	23,220
2029	19,893

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Note 8. Accrued Liabilities

Accrued liabilities consist of the following:


(In thousands)	September 30, 2025		December 31, 2024
Employee related costs	$	73,202	$	79,873
Participations and residuals	135,611		118,101
Interest	31,590		60,485

Other accrued expenses	41,238		32,259
Total accrued liabilities	$	281,641	$	290,718

Note 9. Long-term Debt

The Company's long-term debt consists of:


(In thousands)	September 30, 2025		December 31, 2024
Senior Secured Credit Facility: (a)
Term Loan A Facility	$	251,250	$	365,625
Senior Notes:
10.25% Senior Secured Notes due January 2029	875,000		875,000
4.25% Senior Notes due February 2029	276,706		985,010
4.25% Convertible Senior Notes due February 2029	143,750		143,750
10.50% Senior Secured Notes due July 2032	400,000		—
Total long-term debt	1,946,706		2,369,385
Unamortized discount	(20,793)		(25,014)
Unamortized deferred financing costs	(7,200)		(8,152)
Long-term debt, net	1,918,713		2,336,219
Current portion of long-term debt	7,500		7,500
Noncurrent portion of long-term debt	$	1,911,213	$	2,328,719

(a)Represents the aggregate principal amount of the debt, with the Term Loan A (extended) of $251.3 million and commitments under our undrawn $175.0 million revolving credit facility. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.

Senior Secured Credit Facility

During the nine months ended September 30, 2025, the Company voluntarily prepaid the remaining $90.0 million of borrowings under the Term Loan A Facility (non-extended), $20.0 million of which was paid in May 2025 and the remaining $70.0 million of which was paid in July 2025. In connection with the voluntary prepayments, the Company recorded a charge of $0.4 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Term Loan A Facility (non-extended), which is included in Gain (loss) on extinguishment of debt, net in the condensed consolidated statements of income. During the nine months ended September 30, 2025, the Company made quarterly payments of the principal amount of the Term Loan A Facility (extended) totaling $24.4 million.

AMC Networks' credit agreement (as amended, the "Credit Agreement") generally requires AMC Networks Inc. and its restricted subsidiaries on a consolidated basis to comply with a maximum total net leverage ratio of 5.75:1.00 from April 9, 2024 through March 31, 2026, after which the maximum total net leverage ratio changes to 5.50:1.00. In addition, the Credit Agreement requires a minimum interest coverage ratio, which prior to Amendment No. 5 described below, was 2.00:1.00 for AMC Networks Inc. and its restricted subsidiaries on a consolidated basis. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including the absence of a default and accuracy of representations and warranties. AMC Networks was in compliance with all of its financial covenants under the Credit Agreement as of September 30, 2025.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

On October 29, 2025, the Company entered into Amendment No. 5 (“Amendment No. 5”) to the Credit Agreement. The Company continues to maintain $175.0 million of commitments under the revolving credit facility. Pursuant to Amendment No. 5, the maturity date of $111.8 million of such commitments was extended to the earlier of (i) October 29, 2030 and (ii) the date that is 90 days prior to the maturity date of any capital markets indebtedness of AMC Networks Inc. with an aggregate outstanding principal amount exceeding $50.0 million. The remaining $63.2 million of commitments under the revolving credit facility retained their existing maturity date of April 9, 2028.

Additionally, the Company repurchased and permanently retired term loans held by certain lenders that consented to the maturity extension noted above, in an aggregate principal amount equal to $165.7 million, at a price equal to the principal amount thereof plus accrued and unpaid interest. The remaining $85.6 million principal amount retained their existing maturity date of April 9, 2028.

Amendment No. 5 also includes certain other modifications to covenants and other provisions of the Credit Agreement, including a reduction in the minimum interest coverage ratio from 2.00:1.00 to 1.50:1.00, with a step-up to 1.75:1.00 for fiscal quarters ending on or after December 31, 2028.

4.25% Senior Notes due 2029

Utilizing proceeds from the July 3, 2025 offering of 2032 Secured Notes described below and cash-on-hand, the Company completed a cash tender offer on July 17, 2025 to purchase $600.0 million of its 4.25% Senior Notes due 2029 ("Senior Notes") at a discount of $111.0 million, and retired the notes tendered. The Company recorded a $105.8 million gain which reflects the discount, net of $5.2 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes, and is included in Gain (loss) on extinguishment of debt, net in the condensed consolidated statements of income.

Additionally, during the second and third quarters of 2025, the Company repurchased $99.1 million and $9.2 million principal amount, respectively, of its Senior Notes through open market repurchases, at discounts of $26.7 million and $1.5 million, respectively, and retired the repurchased Senior Notes. The Company recorded gains of $25.8 million and $1.4 million, respectively, which reflects the discounts, net of $0.9 million and $0.1 million, respectively, to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes, and is included in Gain (loss) on extinguishment of debt, net in the condensed consolidated statements of income.

2032 Secured Notes Offering

On July 3, 2025, AMC Networks completed an offering of $400.0 million aggregate principal amount of its 10.500% Senior Secured Notes due 2032 (the “2032 Secured Notes”). AMC Networks received net proceeds of $394.5 million, after deducting initial purchaser discounts. The 2032 Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement (the "Guarantors").

The 2032 Secured Notes were issued pursuant to an Indenture, dated as of July 3, 2025 (the “2032 Secured Notes Indenture”), among AMC Networks, the Guarantors and U.S. Bank Trust Company, National Association, as Trustee.

The 2032 Secured Notes accrue interest at a rate of 10.500% per annum and mature on July 15, 2032. Interest is payable semiannually on January 15 and July 15 of each year, commencing on January 15, 2026. The 2032 Secured Notes are AMC Networks’ general senior secured obligations, secured on a first-priority basis by substantially all of AMC Networks’ and the Guarantors’ assets and property (the “Collateral”), subject to certain liens permitted under the 2032 Secured Notes Indenture, and will rank equally with all of AMC Networks’ existing and future senior indebtedness, senior in right of payment to AMC Networks’ future subordinated indebtedness and effectively senior to any of AMC Networks’ existing and future unsecured indebtedness or indebtedness that is secured by a lien ranking junior to the lien securing the 2032 Secured Notes, in each case, to the extent of the value of the Collateral.

On or after July 15, 2028, AMC Networks may redeem the 2032 Secured Notes, at its option, in whole or in part, at any time and from time to time, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest thereon, to the applicable redemption date, if redeemed during the twelve month period beginning on July 15 of the years indicated below:


Year									Percentage
2028									105.250%
2029									102.625%
2030 and thereafter									100.000%

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

In addition to the optional redemption of the 2032 Secured Notes described above, at any time prior to July 15, 2028, AMC Networks may redeem up to 40% of the aggregate principal amount of the 2032 Secured Notes at a redemption price equal to 110.500% of the principal amount thereof, plus accrued and unpaid interest and additional interest, if any, using the net proceeds of certain equity offerings. At any time prior to July 15, 2028, AMC Networks may also redeem up to 10% of the aggregate principal amount of the 2032 Secured Notes during any twelve month period at a redemption price equal to 103.000% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the redemption date.

Finally, at any time prior to July 15, 2028, AMC Networks may redeem the 2032 Secured Notes, at its option in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount thereof to be redeemed plus the “Applicable Premium” calculated as described in the 2032 Secured Notes Indenture at the Treasury rate + 50 basis points, and accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

Note 10. Leases

The Company's leases consist of non-cancelable agreements for office space, and to a lesser extent, equipment leases for satellite transponders, which expire at various dates through 2033. Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants.

Since the rate implicit in our leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date to determine the present value of the lease payments.

The following table summarizes the leases included in the condensed consolidated balance sheets:


(In thousands)	Balance Sheet Location	September 30, 2025		December 31, 2024
Assets
Operating	Operating lease right-of-use assets	$	46,065	$	58,390
Finance	Property and equipment, net	10,568		11,695
Total lease assets		$	56,633	$	70,085
Liabilities
Current:
Operating	Current portion of lease obligations	$	30,469	$	27,798
Finance	Current portion of lease obligations	3,324		4,641
		$	33,793	$	32,439
Noncurrent:
Operating	Lease obligations	$	31,856	$	51,929
Finance	Lease obligations	10,999		12,652
		$	42,855	$	64,581

Total lease liabilities		$	76,648	$	97,020

Note 11. Fair Value Measurement

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

•Level I - Quoted prices for identical instruments in active markets.

•Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

•Level III - Instruments whose significant value drivers are unobservable.

The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024:


(In thousands)	Level I		Level II		Level III		Total
At September 30, 2025:
Assets
Cash equivalents	$	126,154	$	—	$	—	$	126,154



Foreign currency derivatives	—		8,067		—		8,067

Liabilities

Foreign currency derivatives	—		6,572		—		6,572


At December 31, 2024:
Assets
Cash equivalents	$	250,841	$	—	$	—	$	250,841



Foreign currency derivatives	—		4,889		—		4,889

Liabilities

Foreign currency derivatives	—		2,330		—		2,330

The Company's cash equivalents (comprised of money market mutual funds) are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.

The Company's foreign currency derivatives are classified within Level II of the fair value hierarchy as their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk.

Fair value measurements are also used in nonrecurring valuations performed in connection with impairment testing. These nonrecurring valuations primarily include the valuation of program rights, goodwill, intangible assets and property and equipment. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level III of the fair value hierarchy.

Credit Facility Debt and Senior Notes

The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities.

The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the condensed consolidated balance sheets, are summarized as follows:


(In thousands)	September 30, 2025
	Carrying Amount		Estimated Fair Value
Debt instruments:
Term Loan A Facility	$	247,159	$	251,250
10.25% Senior Secured Notes due 2029	863,739		922,031
4.25% Senior Notes due 2029	274,475		240,734
4.25% Convertible Senior Notes due 2029	140,133		134,842
10.50% Senior Secured Notes due 2032	393,207		422,860
	$	1,918,713	$	1,971,717

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	December 31, 2024
	Carrying Amount		Estimated Fair Value
Debt instruments:
Term Loan A Facility	$	359,660	$	356,934
10.25% Senior Secured Notes due 2029	861,683		927,500
4.25% Senior Notes due 2029	975,466		772,002
4.25% Convertible Senior Notes due 2029	139,410		142,313
	$	2,336,219	$	2,198,749

Fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Note 12. Derivative Financial Instruments

Foreign Currency Exchange Rate Risk

We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than one of our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain trade receivables and accounts payable (including intercompany amounts).

The fair values of the Company's derivative financial instruments included in the condensed consolidated balance sheets are as follows:


(In thousands)	Balance Sheet Location	September 30, 2025		December 31, 2024





Derivatives not designated as hedging instruments:
Assets:
Foreign currency derivatives	Prepaid expenses and other current assets	$	2,359	$	944
Foreign currency derivatives	Other assets	5,708		3,945


Liabilities:


Foreign currency derivatives	Accrued liabilities	$	1,952	$	945

Foreign currency derivatives	Other liabilities	4,620		1,385

The amounts of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows:


(In thousands)	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
		Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024

Foreign currency derivatives	Miscellaneous, net	$	1,512	$	473	$	(968)	$	(318)

Note 13. Income Taxes

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law which included a broad range of tax reform provisions impacting companies. The applicable impacts of the OBBBA are reflected in the Company’s operating results for the three and nine months ended September 30, 2025, including a $35.7 million deferred tax expense impact, mostly offset by a current tax benefit, resulting from the re-measurement of the Company's deferred tax assets and liabilities.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

For the three and nine months ended September 30, 2025, income tax expense was $42.8 million on income from operations before income taxes of $122.8 million, and $73.8 million on income from operations before income taxes of $228.7 million, respectively, representing an effective rate of 35% and 32%, respectively. Items resulting in variances from the federal statutory rate of 21% for the three and nine months ended September 30, 2025 primarily consisted of (i) state and local income tax expense, (ii) tax expense for an increase in the valuation allowance for foreign taxes, (iii) tax expense related to non-deductible compensation, (iv) tax expense, including interest, related to an increase in uncertain tax positions and (v) tax expense related to the OBBBA discrete impacts to deferred tax assets and liabilities, partially offset by (vi) a tax benefit from foreign operations.

For the three and nine months ended September 30, 2024, income tax expense was $19.9 million on income from operations before income taxes of $66.3 million, and $54.4 million on income from operations before income taxes of $126.0 million, respectively, representing an effective tax rate of 30% and 43%, respectively. The effective tax rate for the nine months ended September 30, 2024 was impacted by the $68.0 million nondeductible goodwill impairment charge at AMCNI. Inclusive of the nondeductible goodwill impairment charge, items resulting in variances from the federal statutory rate of 21% for the three and nine months ended September 30, 2024 primarily consisted of (i) state and local income tax expense, (ii) tax expense from foreign operations, (iii) tax expense for an increase in the valuation allowance for foreign taxes and (iv) tax expense related to non-deductible compensation.

At September 30, 2025, the Company had foreign tax credit carryforwards of approximately $53.2 million, expiring on various dates from 2025 through 2035. These carryforwards have been reduced to zero by a valuation allowance of $53.2 million as it is more likely than not that these carryforwards will not be realized.

As of September 30, 2025, the Company’s cash and cash equivalents balance of $716.8 million included approximately $146.0 million held by foreign subsidiaries. Of this amount, approximately $8.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and the Company does not expect to incur any significant, additional taxes related to the remaining balance.

As of September 30, 2025, the Pillar Two minimum tax requirement has not had, and is not expected to have, a material impact on the Company's results of operations or financial position for the year ending December 31, 2025.

Note 14. Commitments and Contingencies

Commitments

As of September 30, 2025, the Company's contractual obligations not reflected on the Company's condensed consolidated balance sheets decreased $44.6 million, as compared to December 31, 2024, to $550.7 million. The decrease was primarily related to payments for program rights and third-party service contracts.

Legal Matters

On August 14, 2017, Robert Kirkman, Robert Kirkman, LLC, Glen Mazzara, 44 Strong Productions, Inc., David Alpert, Circle of Confusion Productions, LLC, New Circle of Confusion Productions, Inc., Gale Anne Hurd, and Valhalla Entertainment, Inc. f/k/a Valhalla Motion Pictures, Inc. (together, the "Plaintiffs") filed a complaint in California Superior Court in connection with Plaintiffs’ rendering of services as writers and producers of the television series entitled The Walking Dead, as well as Fear the Walking Dead and/or Talking Dead, and the agreements between the parties related thereto (the "Walking Dead Litigation"). The Plaintiffs asserted that the Company had been improperly underpaying the Plaintiffs under their contracts with the Company and they asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and liability for violation of Cal. Bus. & Prof. Code § 17200. The Plaintiffs sought compensatory and punitive damages and restitution. On August 8, 2019, the judge in the Walking Dead Litigation ordered a trial to resolve certain issues of contract interpretation only. Following eight days of trial in February and March 2020, on July 22, 2020, the judge issued a Statement of Decision finding in the Company's favor on all seven matters of contract interpretation before the court in this first phase trial. On January 20, 2021, the Plaintiffs filed a second amended complaint, eliminating eight named defendants and their claims under Cal. Bus. & Prof. Code § 17200. On May 5, 2021, the Plaintiffs filed a third amended complaint, repleading in part their claims for alleged breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and certain breach of contract claims. On June 2, 2021, the Company filed a demurrer and motion to strike seeking to dismiss the claim for breach of the implied covenant of good faith and fair dealing and certain tort and breach of contract claims asserted in the third amended complaint. On July 27, 2021, the court granted in part and denied in part the Company's motion. On January 12, 2022, the Company filed a motion for summary adjudication of many of the remaining claims. On April 6, 2022, the court granted the Company’s summary adjudication motion in part, dismissing the

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Plaintiffs’ claims for breach of the implied covenant of good faith and fair dealing and inducing breach of contract. On January 26, 2023, the Plaintiffs filed a notice of appeal of the court’s post-trial, demurrer, and summary adjudication decisions. On September 25, 2024, a hearing was held on the Plaintiffs’ appeals. On November 4, 2024, the appellate court issued a decision affirming the trial court’s decisions in favor of the Company in the 2021 first phase trial and the 2022 motion for summary judgment. The parties entered into an agreement to resolve through confidential binding arbitration the remaining claims in the litigation (consisting mainly of ordinary course profit participation audit claims), and as a result, the court formally dismissed the case. The arbitration to resolve the two remaining claims for breach of contract was held between October 16 through October 20, 2023. On March 12, 2024, the arbitral panel issued a decision awarding the Plaintiffs a sum of approximately $7.8 million. The arbitral panel's decision did not have a material impact on the Company's financial condition or results of operations.

On November 14, 2022, the Plaintiffs filed a separate complaint in California Superior Court (the “MFN Litigation”) in connection with the Company’s July 16, 2021 settlement agreement with Frank Darabont (“Darabont”), Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (the “Darabont Parties”), which resolved litigations the Darabont Parties had brought in connection with Darabont's rendering services as a writer, director and producer of the television series entitled The Walking Dead and the agreement between the parties related thereto (the “Darabont Settlement”). Plaintiffs assert claims for breach of contract, alleging that the Company breached the most favored nations (“MFN”) provisions of Plaintiffs’ contracts with the Company by failing to pay them additional contingent compensation as a result of the Darabont Settlement. Plaintiffs claim in the MFN Litigation that they are entitled to actual and compensatory damages in excess of $200 million. The Plaintiffs also brought a cause of action to enjoin an arbitration the Company commenced in May 2022 concerning the same dispute. On December 15, 2022, the Company removed the MFN Litigation to the United States District Court for the Central District of California. On January 13, 2023, the Company filed a motion to dismiss the MFN Litigation and informed the court that the Company had withdrawn the arbitration Plaintiffs sought to enjoin. On March 25, 2024, the Court issued a ruling denying the Company’s motion to dismiss. On February 25, 2025, the Plaintiffs filed an amended complaint adding two claims for the alleged breach of the MFN provisions of their contracts based on certain agreements the Company entered into with another profit participant and a claim for breach of the implied covenant of good faith and fair dealing. On March 14, 2025, the Company filed its answer to the amended complaint. On November 5, 2025, the Company filed a motion for summary judgment seeking dismissal of all the claims in the MFN Litigation. The Plaintiffs’ opposition to the Company’s motion is due to be filed on November 26, 2025 and the Company’s reply is due to be filed on December 10, 2025. The parties are also completing limited remaining expert and fact discovery. As a result of a Court order extending the case deadlines, the trial for this matter, previously scheduled for March 26, 2026, has been rescheduled to April 21, 2026. The Company believes that the asserted claims are without merit and will vigorously defend against them if they are not dismissed. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company.

The Company is party to various lawsuits and claims in the ordinary course of business, including the matters described above, as well as other lawsuits and claims relating to employment, intellectual property, and privacy and data protection matters. Although the outcome of these matters cannot be predicted with certainty and while the impact of these matters on the Company's results of operations in any particular subsequent reporting period could be material, management does not believe that the resolution of these matters will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due.

Note 15. Equity Plans

During the second quarter of 2025, AMC Networks granted 275,522 RSUs to non-employee directors under the 2011 Stock Plan for Non-Employee Directors that vested on the date of grant.

During the first quarter of 2025, AMC Networks granted 3,103,666 RSUs to certain executive officers and employees under the AMC Networks Inc. Amended and Restated 2016 Employee Stock Plan, which vest ratably over a three-year period.

No RSUs vested for employees during the three months ended September 30, 2025. During the nine months ended September 30, 2025, 1,397,031 RSUs previously issued to employees of the Company vested. On the vesting date, 566,095 RSUs were surrendered to AMC Networks to cover the required statutory tax withholding obligations and 830,936 shares of AMC Networks' Class A Common Stock were issued. Units are surrendered to satisfy the employees' statutory minimum tax withholding obligations for the applicable income and other employment tax. The units surrendered during the nine months ended September 30, 2025 had an aggregate value of $4.0 million, which has been reflected as a financing activity in the condensed consolidated statements of cash flows for the nine months ended September 30, 2025.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Share-based compensation expense for the three months ended September 30, 2025 and 2024 was $6.0 million and $5.8 million, respectively, and for the nine months ended September 30, 2025 and 2024 was $19.8 million and $20.3 million, respectively. Share-based compensation expenses are recognized in the condensed consolidated statements of income as part of Selling, general and administrative expenses.

As of September 30, 2025, there was $25.6 million of total unrecognized share-based compensation cost related to outstanding unvested share-based awards. The unrecognized compensation cost is expected to be recognized over a weighted average remaining period of approximately 2.0 years.

Note 16. Redeemable Noncontrolling Interests

In connection with the Company's previous acquisitions of New Video Channel America L.L.C (owner of the cable channel BBCA) and RLJ Entertainment, the terms of the acquisition agreements provide the noncontrolling members with a right to put all of their noncontrolling interest to subsidiaries of the Company at a future time, within ninety days following October 31, 2025, or earlier upon a change of control, in the case of RLJ Entertainment. Since the exercise of these put rights is outside the Company's control, the noncontrolling interest in each entity is presented as a redeemable noncontrolling interest outside of stockholders' equity on the Company's condensed consolidated balance sheets.

On November 1, 2024, the Company acquired the remaining 50.1% of the BBC America joint-venture that it had not previously owned from BBC Studios for $42.0 million in cash. Since the Company retained the controlling financial interest, the transaction was accounted for as an equity transaction and therefore no gain or loss was recorded in the consolidated statements of income (loss). As a result, the carrying amount of the noncontrolling interest was reduced to zero, reflecting the Company's 100% ownership of the BBC America business, and the $90.9 million difference between this reduction and the $42.0 million purchase price was recognized in Paid-in capital on the condensed consolidated balance sheets. The amount recorded in Paid-in capital was partially offset by $21.5 million of deferred taxes reflecting the difference between the existing noncontrolling interest and the tax basis (amount paid) as of the acquisition date.

The following tables summarize activity related to redeemable noncontrolling interests for the three and nine months ended September 30, 2025 and 2024:


(In thousands)	Three Months Ended September 30, 2025
June 30, 2025	$	59,030
Net earnings	1,359



September 30, 2025	$	60,389


(In thousands)	Three Months Ended September 30, 2024
June 30, 2024	$	180,065
Net earnings	3,813
Distributions	(1,480)
Adjustment to redemption fair value	2,784

September 30, 2024	$	185,182


(In thousands)	Nine Months Ended September 30, 2025
December 31, 2024	$	55,881
Net earnings	3,800

Adjustment to redemption fair value	708

September 30, 2025	$	60,389

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	Nine Months Ended September 30, 2024
December 31, 2023	$	185,297
Net earnings	3,380
Distributions	(11,807)
Adjustment to redemption fair value	8,312
September 30, 2024	$	185,182

Note 17. Related Party Transactions

The Company and its related parties enter into transactions with each other in the ordinary course of business. On September 2, 2025, the Company entered into a consulting agreement with MSG Networks Inc. (“MSG Networks”) to provide certain advisory services to MSG Networks. Revenues, net from related parties amounted to $1.2 million and $1.3 million for the three months ended September 30, 2025 and 2024, respectively, and $3.6 million and $3.9 million for the nine months ended September 30, 2025 and 2024, respectively. Amounts charged to the Company, included in Selling, general and administrative expenses, pursuant to transactions with its related parties amounted to $0.5 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, and $1.4 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively.

Note 18. Cash Flows

The following table details the Company's non-cash investing and financing activities and other supplemental data:


(In thousands)	Nine Months Ended September 30,
	2025		2024
Non-Cash Investing and Financing Activities:


Operating lease additions	$	3,719	$	8,269
Capital expenditures incurred but not yet paid	1,460		1,651

Supplemental Data:
Cash interest paid	153,620		121,419
Income tax payments, net	21,923		9,970

Note 19. Segment Information

The Company classifies its operations into two operating segments: Domestic Operations and International. These operating segments represent strategic business units that are managed separately.

The Company evaluates segment performance based on operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. The Company has presented the components that reconcile segment adjusted operating income to income from operations before income taxes, and other information as to the continuing operations of the Company's operating segments below.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	Three Months Ended September 30, 2025
	Domestic Operations		International		Total
Revenues, net from external customers
Subscription	$	316,243	$	48,087	$	364,330
Advertising	110,033		25,898		135,931
Content licensing and other	59,148		2,332		61,480

	485,424		76,317		561,741
Inter-segment revenues (Content licensing and other) (a)	299		827		1,126
	$	485,723	$	77,144	562,867
Reconciliation of revenue
Elimination of inter-segment revenues (a)					(1,126)
Total consolidated revenues, net					$	561,741

Less: (b)
Content expenses	216,232		18,210
Marketing, research, and advertising sales expenses	63,779		5,881
Other (c)	93,489		41,130
Segment adjusted operating income	$	112,223	$	11,923	$	124,146

Reconciliation of total segment adjusted operating income
Elimination of inter-segment profits					198
Unallocated corporate overhead costs (d)					(29,898)
Share-based compensation expenses					(6,027)
Depreciation and amortization					(21,378)

Restructuring and other related charges					(4,479)
Cloud computing amortization					(2,405)
Majority-owned equity investees AOI					(4,639)
Operating income					55,518
Other income (expense):
Interest expense					(44,574)
Interest income					6,113
Gain on extinguishment of debt, net					105,316
Miscellaneous, net					473
Income from operations before income taxes					$	122,846

(a) Inter-segment revenues primarily relate to Domestic Operations content licensing sales to International, as well as services performed by AMCNI on behalf of businesses within the Domestic Operations segment.

(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker (the "CODM").

(c) Other for each reportable segment primarily includes employee-related costs, information technology costs, professional services expenses, occupancy expenses, certain overhead expenses and the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees.

(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	Three Months Ended September 30, 2024
	Domestic Operations		International		Total
Revenues, net from external customers
Subscription	$	316,002	$	48,510	$	364,512
Advertising	133,139		22,454		155,593
Content licensing and other	77,365		2,144		79,509

	526,506		73,108		599,614
Inter-segment revenues (Content licensing and other) (a)	3,737		598		4,335
	$	530,243	$	73,706	603,949
Reconciliation of revenue
Elimination of inter-segment revenues (a)					(4,335)
Total consolidated revenues, net					$	599,614

Less: (b)
Content expenses	229,376		17,794
Marketing, research, and advertising sales expenses	64,266		5,093
Other (c)	86,412		37,277
Segment adjusted operating income	$	150,189	$	13,542	$	163,731

Reconciliation of total segment adjusted operating income
Elimination of inter-segment profits					(2,934)
Unallocated corporate overhead costs (d)					(29,321)
Share-based compensation expenses					(5,776)
Depreciation and amortization					(23,097)

Restructuring and other related charges					(3,496)
Cloud computing amortization					(3,272)
Majority-owned equity investees AOI					(2,182)
Operating income					93,653
Other income (expense):
Interest expense					(45,123)
Interest income					9,303
Loss on extinguishment of debt, net					(352)
Miscellaneous, net					8,850
Income from operations before income taxes					$	66,331

(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	Nine Months Ended September 30, 2025
	Domestic Operations		International		Total
Revenues, net from external customers
Subscription	$	949,975	$	139,858	$	1,089,833
Advertising	351,887		74,509		426,396
Content licensing and other	194,791		5,978		200,769

	1,496,653		220,345		1,716,998
Inter-segment revenues (Content licensing and other) (a)	2,230		2,280		4,510
	$	1,498,883	$	222,625	1,721,508
Reconciliation of revenue
Elimination of inter-segment revenues (a)					(4,510)
Total consolidated revenues, net					$	1,716,998

Less: (b)
Content expenses	629,994		53,215
Marketing, research, and advertising sales expenses	235,248		14,962
Other (c)	271,155		117,937
Segment adjusted operating income	$	362,486	$	36,511	$	398,997

Reconciliation of total segment adjusted operating income
Elimination of inter-segment profits					(899)
Unallocated corporate overhead costs (d)					(89,781)
Share-based compensation expenses					(19,827)
Depreciation and amortization					(68,750)

Restructuring and other related charges					(12,797)
Cloud computing amortization					(8,343)
Majority-owned equity investees AOI					(14,416)
Operating income					184,184
Other income (expense):
Interest expense					(130,426)
Interest income					22,733
Gain on extinguishment of debt, net					131,061
Miscellaneous, net					21,180
Income from operations before income taxes					$	228,732

(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)


(In thousands)	Nine Months Ended September 30, 2024
	Domestic Operations		International		Total
Revenues, net from external customers
Subscription	$	961,136	$	148,963	$	1,110,099
Advertising	422,193		81,501		503,694
Content licensing and other	202,406		5,810		208,216

	1,585,735		236,274		1,822,009
Inter-segment revenues (Content licensing and other) (a)	7,025		3,132		10,157
	$	1,592,760	$	239,406	1,832,166
Reconciliation of revenue
Elimination of inter-segment revenues (a)					(10,157)
Total consolidated revenues, net					$	1,822,009

Less: (b)
Content expenses	636,589		51,303
Marketing, research, and advertising sales expenses	226,851		14,198
Other (c)	261,464		117,698
Segment adjusted operating income	$	467,856	$	56,207	$	524,063

Reconciliation of total segment adjusted operating income
Elimination of inter-segment profits					(3,604)
Unallocated corporate overhead costs (d)					(87,052)
Share-based compensation expenses					(20,308)
Depreciation and amortization					(75,416)
Impairment and other charges					(96,819)
Restructuring and other related charges					(6,427)
Cloud computing amortization					(10,103)
Majority-owned equity investees AOI					(9,715)
Operating income					214,619
Other income (expense):
Interest expense					(121,180)
Interest income					27,480
Loss on extinguishment of debt, net					(105)
Miscellaneous, net					5,153
Income from operations before income taxes					$	125,967

(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(d) Unallocated corporate overhead costs include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.

Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $173.9 million and $152.0 million for the three months ended September 30, 2025 and 2024, respectively, and $500.0 million and $447.3 million for the nine months ended September 30, 2025 and 2024, respectively.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

The Company does not disclose total assets for each operating segment because these amounts are not regularly reviewed by the CODM nor are they used in assessing segment performance or deciding how to allocate resources to the segments.

The table below summarizes revenues based on customer location:


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues
United States	$	444,446	$	481,390	$	1,373,657	$	1,452,897
Europe	78,167		80,492		233,893		260,618
Other	39,128		37,732		109,448		108,494
	$	561,741	$	599,614	$	1,716,998	$	1,822,009

One customer within the Domestic Operations segment accounted for approximately 20% and 18% of consolidated revenues, net for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, one customer within the Domestic Operations segment accounted for approximately 16% and 15%, respectively, of consolidated revenues, net.

The table below summarizes property and equipment based on asset location:


(In thousands)	September 30, 2025		December 31, 2024
Property and equipment, net
United States	$	107,826	$	127,881
Europe	14,836		13,634
Other	940		1,521
	$	123,602	$	143,036

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. In this Management's Discussion and Analysis of Financial Condition and Results of Operations there are statements concerning our future operating results and future financial performance. Words such as "expects," "anticipates," "believes," "estimates," "may," "will," "should," "could," "potential," "continue," "intends," "plans" and similar words and terms used in the discussion of future operating results and future financial performance identify forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to:

•the level of our revenues;

•market demand, including changes in viewer consumption patterns, for our programming networks, our subscription streaming services, our programming (including our owned original programming and our film content) and our production services;

•demand for advertising inventory and our ability to deliver guaranteed viewer ratings;

•the highly competitive nature of the cable, telecommunications, streaming and programming industries;

•the cost of, and our ability to obtain or produce, desirable content for our programming services, other forms of distribution, including digital and licensing in international markets, as well as our film distribution businesses;

•the loss of any of our key personnel or artistic talent;

•the impact of strikes, including those related to the Writers, Directors, and Screen Actors guilds;

•the security of our program rights and other electronic data;

•breaches or failures of our or our vendors’ information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft;

•our ability to maintain and renew distribution or affiliation agreements with distributors;

•economic and business conditions and industry trends in the countries in which we operate, including fluctuations in inflation rates, recession risk, the impact of tariffs and changes in trade policies and the impact of the Government shutdown that began on October 1, 2025, and uncertainty regarding the foregoing;

•fluctuations in currency exchange rates and interest rates;

•changes in domestic and foreign laws or regulations under which we operate;

•changes in laws or treaties relating to taxation, or the interpretation thereof, in the United States or in the countries in which we operate;

•the impact of existing and proposed federal, state and international laws and regulations relating to data protection, privacy and security, including the European Union's General Data Protection Regulation, the California Consumer Privacy Act and other similar comprehensive privacy and security laws that have been or may be enacted in other states;

•our substantial debt and high leverage;

•reduced access to, or inability to access, capital or credit markets, or significant increases in costs to borrow;

•the level of our expenses;

•changes in our business strategy;

•future acquisitions and dispositions of assets;

•our ability to successfully acquire new businesses and, if acquired, to integrate, and implement our plan with respect to businesses we acquire;

•problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire;

•the outcome of litigation, arbitration and other proceedings or investigations;

•whether pending uncompleted transactions, if any, are completed on the terms and at the times set forth (if at all);

•financial community and rating agency perceptions of our business, operations, financial condition and the industry in which we operate;

•impairment charges related to our goodwill and other intangible assets;

•the impact of pandemics or other health emergencies on the economy and our business;

•events that are outside our control, such as political unrest in international markets, terrorist attacks, natural disasters, the impact of the Government shutdown that began on October 1, 2025, and other similar events; and

•the factors described under Item 1A, "Risk Factors" in our 2024 Annual Report on Form 10-K (the "2024 Form 10-K"), as filed with the Securities and Exchange Commission, and Part II, Item 1A, “Risk Factors,” in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025.

We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.

Introduction

Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere herein and our 2024 Form 10-K to enhance the understanding of our financial condition, changes in financial condition and results of our operations. Unless the context otherwise requires, all references to "we," "us," "our," "AMC Networks" or the "Company" refer to AMC Networks Inc., together with its subsidiaries. The MD&A is organized as follows:

Business Overview. This section provides a general description of our business and our operating segments, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends.

Consolidated Results of Operations. This section provides an analysis of our results of operations for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International.

Liquidity and Capital Resources. This section provides a discussion of our financial condition as of September 30, 2025, as well as an analysis of our cash flows for the nine months ended September 30, 2025 and 2024. The discussion of our financial condition and liquidity also includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations that existed at September 30, 2025 as compared to December 31, 2024.

Critical Accounting Policies and Estimates. This section provides an update, if any, to our significant accounting policies or critical accounting estimates since December 31, 2024.

Business Overview

Financial Highlights

The tables presented below set forth our consolidated revenues, net, operating income and adjusted operating income ("AOI")1, for the periods indicated.


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024




Revenues, net	$	561,741	$	599,614	$	1,716,998	$	1,822,009




Operating Income	$	55,518	$	93,653	$	184,184	$	214,619




Adjusted Operating Income	$	94,446	$	131,476	$	308,317	$	433,407

Segment Reporting

We manage our business through the following two operating segments:

•Domestic Operations: Consists of our five programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, We TV, BBC AMERICA ("BBCA"), IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks.

•International: Consists of AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels distributed around the world.

1 Adjusted Operating Income (Loss), is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section on page 43 for additional information, including our definition and our use of this non-GAAP financial measure, and for a reconciliation to its most comparable GAAP financial measure.

Domestic Operations

In our Domestic Operations segment, we earn revenue principally from: (i) subscription revenues in connection with the distribution of our programming through our programming networks and streaming services, (ii) the sale of advertising, and (iii) the licensing of our original programming to distributors, including the distribution of programming of IFC Films.

In the first quarter of 2025, the Company updated the definition of "aggregate paid subscribers" and the definitions of "affiliate revenues" and "streaming revenues". These changes have no effect on the Company's consolidated financial statements or results of operations. The impact of these changes to historical affiliate revenues and streaming revenues is not material. The new definitions are as follows:

Streaming subscriber (previously "aggregate paid subscriber"): A subscriber who registers on an a la carte basis and from whom we receive a fee, for one of our streaming services directly through our direct-to-consumer applications or indirectly through one of our streaming platform arrangements. This definitional change resulted in the exclusion of subscribers from our count who received access to our streaming services from distributors through a video package that also included access to our programming networks. Subscribers in this Quarterly Report on Form 10-Q reflect our updated definition.

Affiliate revenues: Represents fees received from distributors for the rights to use the Company's programming under multi-year contracts, commonly referred to as "affiliation agreements." Affiliate revenues also include fees received from distributors who provide access to our streaming services to end users through a video package that also includes access to our programming networks. Affiliate revenues are earned from cable and other multichannel video programming distribution platforms, including direct broadcast satellite and platforms operated by telecommunications providers and virtual multichannel video programming distributors.

Streaming revenues: Represents fees for our streaming services earned from our direct-to-consumer platforms as well as through streaming platform arrangements with companies that sell our streaming services on our behalf.

Substantially all of our subscription revenues for our programming networks are based on a per subscriber fee. The subscription revenues we earn vary from period to period, distributor to distributor and also vary among our programming services. Subscription revenues are generally based on the impact of renewals of distributor agreements and upon the number of each distributor's subscribers who receive our programming, referred to as viewing subscribers. Subscription fees for our services are typically based on a per subscriber fee and are generally paid by distributors and consumers on a monthly basis. In negotiating for additional subscribers or extended carriage, we have agreed, in some instances, to make upfront payments to a distributor which we record as deferred carriage fees and which are amortized as a reduction to revenue over the period of the related affiliation agreement. We also may support the distributors' efforts to market our networks. We believe that these transactions generate a positive return on investment over the contract period.

Under affiliation agreements with our distributors, we have the right to sell a specified amount of national advertising time on our programming networks. Our advertising revenues are more variable than subscription revenues because the majority of our advertising is sold on a short-term basis, not under long-term contracts. Our arrangements with advertisers provide for a set number of advertising units to air over a specific period of time at a negotiated price per unit. Additionally, in these advertising sales arrangements, our programming networks generally guarantee specified viewer ratings for their programming. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen.

Content licensing revenue is earned from the licensing of original programming for digital, foreign and home video distribution and is recognized upon availability or distribution by the licensee, and, to a lesser extent, is earned through the distribution of AMC Studios produced series to third parties. Content licensing revenues vary based on the timing of availability of programming to distributors.

We continue to contract for and produce high-quality, attractive programming and remain disciplined in our marketing spend in our efforts to acquire and retain higher lifetime value subscribers. As competition for programming increases and alternative distribution technologies continue to emerge and develop in the industry, costs for content acquisition and original programming have increased. There is a concentration of subscribers in the hands of a few distributors, which could create disparate bargaining power between the largest distributors and us by giving those distributors greater leverage in negotiating the price and other terms of affiliation agreements. We also seek to increase our content licensing revenues by expanding the opportunities for licensing our programming through digital distribution platforms, foreign distribution and home video services.

Content expenses, included in technical and operating expenses, represent the largest expenses of the Domestic Operations segment and primarily consist of amortization of program rights, such as those for original programming, feature films and licensed series, as well as participation and residual costs. The other components of technical and operating expenses primarily

include distribution and production related costs and program operating costs including cost of delivery, such as origination, transmission, uplink and encryption.

The success of our business depends on original programming, both scripted and unscripted, across all of our programming services. These original series generally result in higher ratings for our networks and higher viewership on our streaming services. Among other things, higher audience ratings drive increased revenues through higher advertising revenues. The timing of exhibition and distribution of original programming varies from period to period, which results in greater variability in our revenues, earnings and cash flows from operating activities. There may be significant changes in the level of our technical and operating expenses due to the level of our content investment spend and the related amortization of content acquisition and/or original programming costs. Program rights that are predominantly monetized as a group are amortized based on projected usage and viewership patterns, typically resulting in an accelerated amortization pattern and, to a lesser extent, program rights that are predominantly monetized individually are amortized based on the individual-film-forecast-computation method.

Most original series require us to make significant up-front investments. Our programming efforts are not always commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or as a group is less than their unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost.

International

In our International segment, we earn revenue principally from subscription revenue in connection with the international distribution of programming and, to a lesser extent, the sale of advertising from our AMCNI programming networks. Subscription revenue consists of the fees paid by distributors to carry our programming networks. Our subscription revenues are generally based on either a per-subscriber fee or a fixed contractual annual fee, under multi-year affiliation agreements. Subscription revenues are derived from the distribution of our programming networks primarily in Europe, and to a lesser extent, Latin America.

Content expenses and programming operating costs primarily comprise technical and operating expenses. Content expenses represent the largest expense of the International segment and primarily consist of amortization of acquired content. Program operating costs include costs such as origination, transmission, uplink and encryption of our linear AMCNI channels as well as content hosting and delivery costs at our various on-line content distribution initiatives. Other components of technical and operating expense include costs of dubbing and sub-titling of programs. Our programming efforts are not all commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or a group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned, resulting in the write-off of remaining unamortized cost.

Impact of Economic Conditions

Our future performance is dependent, to a large extent, on general economic conditions, which can impact, among other things, our ability to manage our businesses effectively and our relative strength and leverage in the marketplace, with both suppliers and customers. Additionally, macroeconomic and geopolitical risks, particularly high inflation and interest rates, as well as potential or implemented tariffs and changes to the U.S.'s and other countries' trade policies, and uncertainty regarding further changes to any of the foregoing, may adversely impact our results of operations, cash flows and financial position or our ability to refinance our indebtedness on terms favorable to us, or at all.

Capital and credit market disruptions, as well as other events such as pandemics or other health emergencies, inflation, tariffs and changes to the U.S.'s and other countries' trade policies, international conflict and recession, have in the past caused and could in the future cause market volatility and economic downturns, which have led and may lead to lower demand for our products, such as lower demand for television advertising and a decrease in the number of subscribers receiving our programming services. Events such as these have in the past adversely impacted, and may in the future adversely impact, our results of operations, cash flows and financial position.

Consolidated Results of Operations

The amounts presented and discussed below represent 100% of each operating segment's revenues, net and expenses. Where we have management control of an entity, we consolidate 100% of such entity in our condensed consolidated statements of income notwithstanding that a third-party owns an interest, which may be significant, in such entity. The noncontrolling owner's interest in the operating results of consolidated subsidiaries are reflected in net income attributable to noncontrolling interests in our condensed consolidated statements of income.

Three and Nine Months Ended September 30, 2025 and 2024

The following table sets forth our consolidated results of operations for the periods indicated.


	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2025		2024		Change		2025		2024		Change
Revenues, net:
Subscription	$	364,330	$	364,512	—	%	$	1,089,833	$	1,110,099	(1.8)	%
Advertising	135,931		155,593		(12.6)	%	426,396		503,694		(15.3)	%
Content licensing and other	61,480		79,509		(22.7)	%	200,769		208,216		(3.6)	%
Total revenues, net	561,741		599,614		(6.3)	%	1,716,998		1,822,009		(5.8)	%
Operating expenses:
Technical and operating (excluding depreciation and amortization)	291,075		287,746		1.2	%	842,297		840,049		0.3	%
Selling, general and administrative	189,291		191,622		(1.2)	%	608,970		588,679		3.4	%
Depreciation and amortization	21,378		23,097		(7.4)	%	68,750		75,416		(8.8)	%
Impairment and other charges	—		—		n/m		—		96,819		(100.0)	%
Restructuring and other related charges	4,479		3,496		28.1	%	12,797		6,427		99.1	%
Total operating expenses	506,223		505,961		0.1	%	1,532,814		1,607,390		(4.6)	%
Operating income	55,518		93,653		(40.7)	%	184,184		214,619		(14.2)	%
Other income (expense):
Interest expense	(44,574)		(45,123)		(1.2)	%	(130,426)		(121,180)		7.6	%
Interest income	6,113		9,303		(34.3)	%	22,733		27,480		(17.3)	%
Gain (loss) on extinguishment of debt, net	105,316		(352)		n/m		131,061		(105)		n/m
Miscellaneous, net	473		8,850		(94.7)	%	21,180		5,153		n/m
Total other income (expense)	67,328		(27,322)		n/m		44,548		(88,652)		n/m
Income from operations before income taxes	122,846		66,331		85.2	%	228,732		125,967		81.6	%
Income tax expense	(42,765)		(19,891)		n/m		(73,792)		(54,433)		35.6	%
Net income including noncontrolling interests	80,081		46,440		72.4	%	154,940		71,534		n/m
Less: Net income attributable to noncontrolling interests	(3,552)		(5,058)		(29.8)	%	(10,073)		(13,583)		(25.8)	%
Net income attributable to AMC Networks' stockholders	$	76,529	$	41,382	84.9	%	$	144,867	$	57,951	n/m
n/m - Absolute percentages greater than 100% and comparisons between positive and negative values or zero values are considered not meaningful.

Revenues, net

Three months ended September 30, 2025 vs. 2024

Subscription revenues increased 0.1% in our Domestic Operations segment due to an increase in streaming revenues primarily due to the impact of price increases across our services, partially offset by a decline in affiliate revenues primarily due to basic subscriber declines. Subscription revenues decreased 0.9% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the favorable impact of foreign currency translation. We expect linear subscriber declines to continue in our Domestic Operations segment, consistent with the declines across the cable ecosystem.

Advertising revenues decreased 17.4% in our Domestic Operations segment primarily due to linear ratings declines and lower marketplace pricing. Advertising revenues increased 15.3% in our International segment primarily due to the impact of higher pricing in the U.K. and Ireland linear advertising markets and digital and advanced advertising growth in the U.K. Despite the third quarter increase in our International segment, we generally expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms.

Content licensing and other revenues decreased 26.7% in our Domestic Operations segment primarily due to the timing and availability of deliveries in the period, including lower licensing sales of The Walking Dead and Fear the Walking Dead. We expect content licensing revenues to vary for the remainder of 2025 and in 2026 based on the timing and availability of our programming to distributors.

Nine months ended September 30, 2025 vs. 2024

Subscription revenues decreased 1.2% in our Domestic Operations segment due to a decline in affiliate revenues primarily due to basic subscriber declines, partially offset by an increase in streaming revenues primarily due to the impact of price increases across our services. Subscription revenues decreased 6.1% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024.

Advertising revenues decreased 16.7% in our Domestic Operations segment primarily due to linear ratings declines and lower marketplace pricing, including digital pricing. Advertising revenues decreased 8.6% in our International segment primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024 and lower digital and advanced advertising revenue in the U.K., partially offset by the impact of higher pricing in the U.K. and Ireland linear advertising markets.

Content licensing and other revenues decreased 5.9% in our Domestic Operations segment primarily due to the timing and availability of deliveries in the period, including the prior year beneficial impact of the sale of our rights and interests to Killing Eve in the first quarter of 2024 and lower licensing sales of Fear the Walking Dead in the current year, partially offset by the sale of our music catalog during the second quarter of 2025.

Technical and operating expenses (excluding depreciation and amortization)

Technical and operating expenses consist primarily of content expenses, which include the amortization of program rights, such as those for original programming, feature films and licensed series, and participation and residual costs. Technical and operating expenses also include other direct programming costs, such as distribution and production related costs and program delivery costs, such as transmission, encryption, hosting, and formatting.

There may be significant changes in the level of our technical and operating expenses due to original programming costs and/or content acquisition costs. As competition for programming increases, costs for content acquisition and original programming are expected to increase.

Three months ended September 30, 2025 vs. 2024

Technical and operating expenses (excluding depreciation and amortization) increased 0.9% in our Domestic Operations segment primarily due to an increase in other direct programming costs, partially offset by lower program rights amortization, including decreases for The Walking Dead and Fear the Walking Dead, consistent with the lower content licensing sales during the period. Technical and operating expenses (excluding depreciation and amortization) increased 2.6% in our International segment due to higher program amortization, primarily driven by the unfavorable impact of foreign currency translation.

Nine months ended September 30, 2025 vs. 2024

Technical and operating expenses (excluding depreciation and amortization) decreased 0.3% in our Domestic Operations segment primarily due to a decrease in program rights amortization, partially offset by higher participation and residuals costs and other direct programming costs. Technical and operating expenses (excluding depreciation and amortization) increased 2.1% in our International segment due to higher program amortization, primarily driven by the unfavorable impact of foreign currency translation.

Selling, general and administrative expenses

Selling, general and administrative expenses for our operating segments primarily consist of sales, marketing, research and advertising expenses, employee related costs (excluding share-based compensation), costs of non-production facilities, and an allocation of certain corporate overhead costs. Selling, general and administrative expenses on a consolidated basis also include unallocated executive management and administrative support services, such as executive salaries and benefits costs, costs of maintaining corporate headquarters, facilities and common support functions.

There have been and may continue to be significant changes in the level of our selling, general and administrative expenses due to the timing of promotions and marketing of original programming series.

Three months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses decreased 4.9% in our Domestic Operations segment primarily due to lower employee related costs. Selling, general and administrative expenses increased 15.8% in our International segment primarily due to higher corporate overhead costs allocated to AMCNI and higher marketing costs. Unallocated corporate overhead costs increased 2.0% to $29.9 million primarily due to higher long-term incentive compensation.

Nine months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses increased 4.6% in our Domestic Operations segment primarily due to higher marketing expenses mainly driven by increased paid media spend for AMC+, higher employee related costs, and an increase in legal costs related to the MFN litigation. Selling, general and administrative expenses increased 1.0% in our International segment primarily due to higher corporate overhead costs allocated to AMCNI and higher marketing costs, partially offset by lower selling expenses, including commissions.

Unallocated corporate overhead costs increased 3.1% to $89.8 million primarily due to higher employee related costs, including higher bonus and severance expenses.

Impairment and other charges

Three and nine months ended September 30, 2025 and three months ended September 30, 2024

There were no impairment and other charges recorded during these periods.

Nine months ended September 30, 2024

During the second quarter of 2024, we determined that the decline in our stock price was an indicator of potential impairment of goodwill. Accordingly, we performed quantitative assessments for all of our reporting units and concluded that the fair value of the AMCNI reporting unit declined to less than its carrying amount. As a result, we recognized an impairment charge of $68.0 million, which is included in Impairment and other charges in the condensed consolidated statements of income within the International segment.

Additionally, during the second quarter of 2024, given continued market challenges and linear declines, we determined that sufficient indicators of potential impairment of long-lived assets existed at BBCA, and concluded that the carrying amount of the BBCA asset group was not recoverable. The carrying value of the BBCA asset group exceeded its fair value, and accordingly an impairment charge of $29.2 million was recorded for identifiable intangible assets and other long-lived assets, which is included in Impairment and other charges in the condensed consolidated statements of income within the Domestic Operations segment.

Restructuring and other related charges

Three months ended September 30, 2025

Restructuring and other related charges were $4.5 million for the three months ended September 30, 2025. During the third quarter of 2025, we expanded our restructuring plan related to the International segment and implemented a voluntary buyout program for employees in Argentina designed to achieve cost reductions and streamline operations in response to challenging industry conditions. Additionally, we implemented organizational changes in our Domestic Operations segment designed to create an enhanced offering that is intended to maximize the potential of our We TV and ALLBLK brands. Additional restructuring charges were incurred in connection with the wind-down of a U.K. joint venture in our International segment.

Nine months ended September 30, 2025

Restructuring and other related charges were $12.8 million for the nine months ended September 30, 2025, primarily related to our multi-faceted restructuring plan in our International segment designed to achieve cost reductions and streamline operations including channel re-branding and a reduction of workforce in Southern Europe, the wind-down of a U.K. joint venture and a voluntary buyout program for employees in Argentina.

Three months ended September 30, 2024

For the three months ended September 30, 2024, restructuring and other related charges of $3.5 million primarily consisted of severance and employee-related costs in our Domestic Operations segment.

Nine months ended September 30, 2024

For the nine months ended September 30, 2024, restructuring and other related charges of $6.4 million primarily consisted of severance and employee-related costs, as well as content impairments in connection with We TV shifting to a reduced originals strategy, in our Domestic Operations segment.

Operating income

Three months ended September 30, 2025 vs. 2024

The decrease in operating income was primarily attributable to a $37.9 million decrease in revenues, net.

Nine months ended September 30, 2025 vs. 2024

The decrease in operating income was primarily attributable to a $105.0 million decrease in revenues, net and a $20.3 million increase in selling, general and administrative costs, partially offset by a $96.8 million decrease in impairment and other charges.

Interest expense

Three months ended September 30, 2025 vs. 2024

The decrease in interest expense was primarily due to the impact of lower outstanding balances under our Term Loan A facility under the Credit Agreement (the "Term Loan A Facility") and 4.25% Senior Notes due 2029 (the "Senior Notes"), partially offset by an increase in average interest rates associated with the July 2025 issuance of the Company's 10.50% Senior Secured Notes due 2032 (the "2032 Secured Notes") to refinance the Company's Senior Notes.

Nine months ended September 30, 2025 vs. 2024

The increase in interest expense was primarily due to an increase in average interest rates associated with the July 2025 issuance of the Company's 2032 Secured Notes and the April 2024 issuance of the Company's 10.25% Senior Secured Notes due 2029 to refinance the Company's Senior Notes and 4.75% Senior Notes due 2025, respectively, and the impact of a full year of interest expense for the Company’s 4.25% Convertible Senior Notes due 2029 (the "Convertible Notes") that were issued in June 2024, partially offset by the impact of lower outstanding balances under our Term Loan A Facility and Senior Notes.

Interest income

Three months ended September 30, 2025 vs. 2024

The decrease in interest income was primarily attributable to lower interest rates and lower average cash balances for our money market fund accounts as well as lower interest income recognized in connection with our long-term content licensing receivables.

Nine months ended September 30, 2025 vs. 2024

The decrease in interest income was primarily attributable to interest received in connection with a one-time retroactive adjustment reported and paid by a third party during the second quarter of 2024, as well as lower interest income recognized in connection with our long-term content licensing receivables.

Gain (loss) on extinguishment of debt, net

Three months ended September 30, 2025

During the third quarter of 2025, we completed a cash tender offer to repurchase $600.0 million of our Senior Notes at a discount of $111.0 million, and retired the tendered notes. The discount, net of a $5.2 million write-off of unamortized discount and deferred financing costs associated with the Senior Notes, was recognized as a gain on extinguishment of debt in the condensed consolidated statements of income. Subsequent to the cash tender offer, we repurchased $9.2 million principal amount of our outstanding Senior Notes through open market repurchases, at a discount of $1.5 million, and retired the repurchased notes. We recorded a $1.4 million gain which reflects the discount, net of $0.1 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes.

Nine months ended September 30, 2025

In addition to the above transactions for the three months ended September 30, 2025, we repurchased $99.1 million principal amount of our outstanding Senior Notes through open market repurchases during the second quarter of 2025, at a discount of $26.7 million, and retired the repurchased notes. We recorded a $25.8 million gain after reflecting the discount, net of $0.9 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes.

Three and nine months ended September 30, 2024

During the third quarter of 2024, we voluntarily prepaid $35.0 million of borrowings under the Term Loan A Facility, resulting in the recognition of a $0.4 million charge to write off a portion of the associated unamortized discount and deferred financing costs.

In June 2024, we repurchased $15.0 million of our outstanding Senior Notes through open market repurchases, at a discount of $4.9 million, and retired the repurchased notes. We recorded a $4.7 million gain which reflects the discount, net of $0.2 million to write-off a portion of the unamortized discount and deferred financing costs associated with the notes.

On April 22, 2024, we completed a cash tender offer (the "2025 Senior Notes Tender Offer") to purchase any and all outstanding 4.75% Senior Notes due 2025 and redeemed all 4.75% Senior Notes due 2025 that remained outstanding after completion of the 2025 Senior Notes Tender Offer at a price of 100.000% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date. In connection with the 2025 Senior Notes Tender Offer and redemption, we recorded a charge of $3.1 million to write-off the remaining unamortized discount and deferred financing costs associated with the 4.75% Senior Notes due 2025.

On April 9, 2024, we entered into Amendment No. 3 ("Amendment No. 3") to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended to date and by Amendment No. 3, the "Credit Agreement"). In connection with Amendment No. 3, we made a $165.6 million partial prepayment of the Term Loan A Facility, bringing the total principal amount outstanding under the Term Loan A Facility to $425 million, and reduced the revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”) to $175 million. In connection with the partial prepayment of the Term Loan A Facility and reduction of the revolving loan commitments, the Company recorded a charge of $1.3 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Credit Agreement.

Miscellaneous, net

Three months ended September 30, 2025 vs. 2024

The decrease in miscellaneous, net was primarily related to the impact of foreign currency fluctuations, partially offset by increased earnings from equity-method investments.

Nine months ended September 30, 2025 vs. 2024

The increase in miscellaneous, net was primarily related to the impact of foreign currency fluctuations, the impact of prior year costs incurred in connection with the second quarter 2024 refinancing transactions and increased earnings from equity-method investments.

Income tax expense

Three months ended September 30, 2025 vs. 2024

For the three months ended September 30, 2025, income tax expense was $42.8 million on income from operations before income taxes of $122.8 million, representing an effective tax rate of 35%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense, (ii) tax expense for an increase in the valuation allowance for foreign taxes, (iii) tax expense related to non-deductible compensation, (iv) tax expense, including interest, related to an increase in uncertain tax positions and (v) tax expense related to the One Big Beautiful Bill Act (the "OBBBA") discrete impacts to deferred tax assets and liabilities, partially offset by (vi) a tax benefit from foreign operations.

For the three months ended September 30, 2024, income tax expense was $19.9 million on income from operations before income taxes of $66.3 million, representing an effective tax rate of 30%. The items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense, (ii) tax expense from foreign operations, (iii) tax expense for an increase in the valuation allowance for foreign taxes and (iv) tax expense related to non-deductible compensation.

Nine months ended September 30, 2025 vs. 2024

For the nine months ended September 30, 2025, income tax expense was $73.8 million on income from operations before income taxes of $228.7 million, representing an effective tax rate of 32%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense, (ii) tax expense for an increase in the valuation allowance for foreign taxes, (iii) tax expense related to non-deductible compensation, (iv) tax expense, including interest, related to an increase in uncertain tax positions and (v) tax expense related to the OBBBA discrete impacts to deferred tax assets and liabilities, partially offset by (vi) a tax benefit from foreign operations.

For the nine months ended September 30, 2024, income tax expense was $54.4 million on income from operations before income taxes of $126.0 million, representing an effective tax rate of 43%. The effective tax rate for the nine months ended September 30, 2024 was impacted by the $68.0 million nondeductible goodwill impairment charge at AMCNI. Inclusive of the nondeductible goodwill impairment charge, items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense, (ii) tax expense from foreign operations, (iii) tax expense for an increase in the valuation allowance for foreign taxes and (iv) tax expense related to non-deductible compensation.

Segment Results of Operations

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use segment adjusted operating income as the measure of profit or loss for our operating segments. See the "Non-GAAP Financial Measures" section below for our definition of Adjusted Operating Income and a reconciliation from Operating Income to Adjusted Operating Income on a consolidated basis. The segment financial information set forth below, including the discussion related to individual line items, does not reflect inter-segment eliminations unless specifically indicated.

Domestic Operations

The following table sets forth our Domestic Operations segment results for the periods indicated.


	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2025		2024		Change			2025		2024		Change
Revenues, net:
Subscription	$	316,243	$	316,002	0.1	%		$	949,975	$	961,136	(1.2)	%
Advertising	110,033		133,139		(17.4)			351,887		422,193		(16.7)
Content licensing and other	59,447		81,102		(26.7)			197,021		209,431		(5.9)
Total revenues, net	485,723		530,243		(8.4)			1,498,883		1,592,760		(5.9)
Technical and operating expenses (excluding depreciation and amortization)(a)	256,183		253,974		0.9			738,485		740,533		(0.3)
Selling, general and administrative expenses(b)	121,956		128,262		(4.9)			412,328		394,086		4.6
Majority-owned equity investees AOI	4,639		2,182		112.6			14,416		9,715		48.4
Segment adjusted operating income	$	112,223	$	150,189	(25.3)	%		$	362,486	$	467,856	(22.5)	%
(a) Technical and operating expenses exclude cloud computing amortization
(b) Selling, general and administrative expenses exclude share-based compensation expenses and cloud computing amortization

Revenues, net

Three months ended September 30, 2025 vs. 2024

Subscription revenues increased due to a 14.4% increase in streaming revenues offset by a 13.2% decline in affiliate revenues. Streaming revenues increased primarily due to the impact of price increases across our services. Affiliate revenues decreased primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals.

Revenues related to the Company's streaming services were $173.9 million and $152.0 million for the three months ended September 30, 2025 and 2024, respectively. Streaming subscribers were 10.4 million at September 30, 2025, consistent with streaming subscribers at June 30, 2025, and an increase of 2% compared to 10.2 million streaming subscribers at September 30, 2024.

Advertising revenues decreased primarily due to linear ratings declines and lower marketplace pricing.

Content licensing and other revenues decreased primarily due to the timing and availability of deliveries in the period, including lower licensing sales of The Walking Dead and Fear the Walking Dead.

Nine months ended September 30, 2025 vs. 2024

Subscription revenues decreased due to a 12.4% decline in affiliate revenues, partially offset by an 11.8% increase in streaming revenues. Affiliate revenues decreased primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals. Streaming revenues increased primarily due to the impact of price increases across our services. Revenues related to the Company's streaming services were $500.0 million and $447.3 million for the nine months ended September 30, 2025 and 2024, respectively.

Advertising revenues decreased primarily due to linear ratings declines and lower marketplace pricing, including digital pricing.

Content licensing and other revenues decreased primarily due to the timing and availability of deliveries in the period, including the prior year beneficial impact of the sale of our rights and interests to Killing Eve in the first quarter of 2024 and lower licensing sales of Fear the Walking Dead in the current year, partially offset by the sale of our music catalog during the second quarter of 2025.

Technical and operating expenses (excluding depreciation and amortization)

Three months ended September 30, 2025 vs. 2024

Technical and operating expenses (excluding depreciation and amortization) increased primarily due to an increase in other direct programming costs, partially offset by lower program rights amortization, including decreases for The Walking Dead and Fear the Walking Dead, consistent with the lower content licensing sales during the period.

Nine months ended September 30, 2025 vs. 2024

Technical and operating expenses (excluding depreciation and amortization) decreased primarily due to a decrease in program rights amortization, partially offset by higher participation and residuals costs and other direct programming costs.

Selling, general and administrative expenses

Three months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses decreased primarily due to lower employee related costs.

Nine months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses increased primarily due to higher marketing expenses mainly driven by increased paid media spend for AMC+, higher employee related costs, and an increase in legal costs related to the MFN litigation.

Segment adjusted operating income

Three and nine months ended September 30, 2025 vs. 2024

The decrease in segment adjusted operating income was primarily attributable to the continued revenue declines in our linear businesses.

International

The following table sets forth our International segment results for the periods indicated.


	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2025		2024		Change			2025		2024		Change
Revenues, net:
Subscription	$	48,087	$	48,510	(0.9)	%		$	139,858	$	148,963	(6.1)	%
Advertising	25,898		22,454		15.3			74,509		81,501		(8.6)
Content licensing and other	3,159		2,742		15.2			8,258		8,942		(7.6)
Total revenues, net	77,144		73,706		4.7			222,625		239,406		(7.0)
Technical and operating expenses (excluding depreciation and amortization)	34,543		33,663		2.6			102,445		100,362		2.1
Selling, general and administrative expenses(a)	30,678		26,501		15.8			83,669		82,837		1.0

Segment adjusted operating income	$	11,923	$	13,542	(12.0)	%		$	36,511	$	56,207	(35.0)	%
(a) Selling, general and administrative expenses exclude share-based compensation expenses

Revenues, net

Three months ended September 30, 2025 vs. 2024

Subscription revenues decreased primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the favorable impact of foreign currency translation.

Advertising revenues increased primarily due to the impact of higher pricing in the U.K. and Ireland linear advertising markets and digital and advanced advertising growth in the U.K.

Nine months ended September 30, 2025 vs. 2024

Advertising revenues decreased primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024 and lower digital and advanced advertising revenue in the U.K., partially offset by the impact of higher pricing in the U.K. and Ireland linear advertising markets and the favorable impact of foreign currency translation.

Technical and operating expenses (excluding depreciation and amortization)

Three and nine months ended September 30, 2025 vs. 2024

Technical and operating expenses (excluding depreciation and amortization) increased due to higher program amortization primarily driven by the unfavorable impact of foreign currency translation.

Selling, general and administrative expenses

Three months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses increased primarily due to higher corporate overhead costs allocated to AMCNI and higher marketing costs.

Nine months ended September 30, 2025 vs. 2024

Selling, general and administrative expenses increased primarily due to higher corporate overhead costs allocated to AMCNI and higher marketing costs, partially offset by lower selling expenses, including commissions.

Segment adjusted operating income

Three months ended September 30, 2025 vs. 2024

The decrease in segment adjusted operating income was primarily due to the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024 and higher corporate overhead costs allocated to AMCNI, partially offset by the impact of higher pricing in the U.K. and Ireland linear advertising markets.

Nine months ended September 30, 2025 vs. 2024

The decrease in segment adjusted operating income was primarily due to the recognition of a retroactive adjustment reported and paid by a third party for $13.4 million in the second quarter of 2024 and the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the impact of higher pricing in the U.K. and Ireland linear advertising markets.

Liquidity and Capital Resources

Our operations typically generate positive net cash flow from operating activities. However, each of our programming businesses has substantial programming acquisition and production expenditure requirements.

As of September 30, 2025, our cash and cash equivalents balance of $716.8 million included approximately $146.0 million held by foreign subsidiaries. Of this amount, approximately $8.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and we do not expect to incur any significant, additional taxes related to the remaining balance.

Our primary source of cash typically includes cash flow from operations. Sources of cash also include amounts available under our Revolving Credit Facility and, subject to market conditions, access to capital and credit markets. The Revolving Credit Facility was not drawn upon at September 30, 2025. The total undrawn revolver commitment is available to be drawn for our general corporate purposes. Although we currently believe that amounts available under our Revolving Credit Facility will be available when and if needed, we can provide no assurance that access to such funds will not be impacted by adverse conditions in the financial markets. The obligations of the financial institutions under our Revolving Credit Facility are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others. As a public company, we may have access to capital and credit markets, although adverse conditions in the financial markets have in the past impacted, and are expected in the future to impact, access to those markets.

We believe that a combination of cash-on-hand, cash generated from operating activities, availability under our Revolving Credit Facility and our accounts receivable monetization program, borrowings under additional financing facilities and proceeds from the issuance of new debt, will provide sufficient liquidity to service the principal and interest payments on our indebtedness, along with our other funding and investment requirements over the next twelve months and over the longer term. However, we do not expect to generate sufficient cash from operations to repay the entirety of the outstanding balances of our

debt at the applicable maturity dates. As a result, we will be dependent upon our ability to access the capital and credit markets in order to repay, refinance, repurchase through privately negotiated transactions, open market repurchases, tender offers or otherwise or redeem the outstanding balances of our indebtedness.

On July 3, 2025, we issued $400.0 million aggregate principal amount of 2032 Secured Notes. We received net proceeds of $394.5 million, after deducting initial purchaser discounts. The 2032 Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement. The proceeds from the issuance, together with cash-on-hand, were used to facilitate the completion of a cash tender offer on July 17, 2025 to purchase $600.0 million of our Senior Notes, at a discount of $111.0 million, and to voluntary prepay the remaining $70.0 million of borrowings under the Term Loan A (non-extended) on July 3, 2025.

During the second and third quarters of 2025, we also repurchased $99.1 million and $9.2 million principal amount, respectively, of our Senior Notes through open market repurchases, at discounts of $26.7 million and $1.5 million, respectively, and retired the repurchased Senior Notes. Additionally, in May 2025 we voluntarily prepaid $20.0 million of borrowings under the Term Loan A Facility (non-extended).

On July 4, 2025, the OBBBA was signed into law, which will result in cash tax savings for the year ending December 31, 2025.

On October 29, 2025, the Company entered into Amendment No. 5 (“Amendment No. 5”) to the Credit Agreement. The Company continues to maintain $175.0 million of commitments under the Revolving Credit Facility. Pursuant to Amendment No. 5, the maturity date of $111.8 million of such commitments was extended to the earlier of (i) October 29, 2030 and (ii) the date that is 90 days prior to the maturity date of any capital markets indebtedness of AMC Networks with an aggregate outstanding principal amount exceeding $50.0 million. The remaining $63.2 million of commitments under the Revolving Credit Facility retained their existing maturity date of April 9, 2028.

We are currently evaluating our liquidity profile in connection with our consideration of our funding and investment needs. Depending on market conditions, we may purchase, redeem, prepay, refinance, amend, exchange, extend or otherwise retire any amount of our outstanding indebtedness at any time and from time to time, in open market or privately negotiated transactions with the holders of such indebtedness or otherwise. We may not proceed with any of such transactions in light of market conditions or other relevant factors and, if we do proceed, the terms of any such transaction would be subject to market and other conditions.

Our Credit Agreement generally requires us and our restricted subsidiaries on a consolidated basis to comply with a maximum total net leverage ratio of 5.75:1.00 from April 9, 2024 through March 31, 2026, after which the maximum total net leverage ratio changes to 5.50:1.00. As of September 30, 2025, the total net leverage ratio was approximately 4.33:1.00. In addition, the Credit Agreement requires a minimum interest coverage ratio for us and our restricted subsidiaries on a consolidated basis, which prior to Amendment No. 5 described above was 2.00:1.00. As of September 30, 2025, the interest coverage ratio was approximately 2.20:1.00. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including the absence of a default and accuracy of representations and warranties.

We were in compliance with all of our debt covenants as of September 30, 2025.

Failure to raise significant amounts of funding to repay our outstanding debt obligations at their respective maturity dates would adversely affect our business. In such a circumstance, we would need to take other actions including selling assets, seeking strategic investments from third parties or reducing other discretionary uses of cash. For information relating to our outstanding debt obligations, refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Debt Financing Agreements" of our 2024 Form 10-K. In addition, economic or market disruptions could lead to lower demand for our services, such as loss of subscribers and lower levels of advertising. These events would adversely impact our results of operations, cash flows and financial position.

Our Board of Directors has authorized a program to repurchase up to $1.5 billion of our outstanding shares of Class A Common Stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. During the second quarter of 2025, the Company repurchased 1.6 million shares

of its Class A Common Stock at an average purchase price of $6.48 per share. As of September 30, 2025, the Company had $124.9 million of authorization remaining for repurchase under the Stock Repurchase Program.

Cash Flow Discussion

The following table is a summary of cash flows provided by (used in) operating, investing and financing activities for the periods indicated:


(In thousands)	Nine Months Ended September 30,
	2025		2024
Net cash provided by operating activities	$	256,424	$	317,507
Net cash used in investing activities	(24,510)		(20,167)
Net cash used in financing activities	(317,233)		(52,739)
Net increase (decrease) in cash and cash equivalents from operations	$	(85,319)	$	244,601

Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 amounted to $256.4 million and $317.5 million, respectively.

For the nine months ended September 30, 2025, net cash provided by operating activities primarily resulted from $768.9 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $569.2 million. Changes in all other assets and liabilities resulted in a net cash inflow of $56.7 million.

For the nine months ended September 30, 2024, net cash provided by operating activities primarily resulted from $915.4 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $691.5 million. Changes in all other assets and liabilities resulted in a net cash inflow of $93.6 million.

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2025 and 2024 amounted to $24.5 million and $20.2 million, respectively, and primarily consisted of capital expenditures.

Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2025 and 2024 amounted to $317.2 million and $52.7 million, respectively.

For the nine months ended September 30, 2025, net cash used in financing activities primarily related to the tender offer for and repurchases of our Senior Notes of $569.1 million, principal payments on the Term Loan A Facility of $114.4 million, and the purchase of treasury stock for $10.3 million, partially offset by $394.5 million of proceeds from the issuance of our 2032 Secured Notes.

For the nine months ended September 30, 2024, net cash used in financing activities primarily related to long-term debt refinancing transactions, the Convertible Notes issuance, principal payments on the Term Loan A Facility and distributions to noncontrolling interests of $18.0 million.

Contractual Obligations

As of September 30, 2025, our contractual obligations not reflected on the condensed consolidated balance sheets decreased $44.6 million, as compared to December 31, 2024, to $550.7 million. The decrease was primarily related to payments for program rights and third-party service contracts.

Supplemental Guarantor Financial Information

The following is a description of the terms and conditions of the guarantees with respect to the notes outstanding as of September 30, 2025 for which AMC Networks is the issuer.

Note Guarantees

Debt of AMC Networks as of September 30, 2025 included $875.0 million of 10.25% Senior Secured Notes due 2029, $276.7 million of Senior Notes, $143.8 million of Convertible Notes, and $400.0 million of 2032 Secured Notes (collectively, the “notes”). The notes were issued by AMC Networks and are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of AMC Networks’ existing and future domestic restricted subsidiaries, subject to certain exceptions

(each, a “Guarantor Subsidiary,” and collectively, the “Guarantor Subsidiaries”). The obligations of each Guarantor Subsidiary under its note guarantee are limited as necessary to prevent such note guarantee from constituting a fraudulent conveyance under applicable law. A guarantee of the notes by a Guarantor Subsidiary is subject to release in the following circumstances: (i) any sale or other disposition of all of the capital stock of a Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) a restricted subsidiary, in compliance with the terms of the applicable indenture; (ii) the designation of a restricted subsidiary as an “Unrestricted Subsidiary” under the applicable indenture; or (iii) the release or discharge of the guarantee (including the guarantee under the AMC Networks’ credit agreement) which resulted in the creation of the note guarantee (provided that such Guarantor Subsidiary does not have any preferred stock outstanding at such time that is not held by AMC Networks or another Guarantor Subsidiary).

Foreign subsidiaries of AMC Networks do not and will not guarantee the notes.

The following tables present the summarized financial information specified in Rule 1-02(bb)(1) of Regulation S-X for AMC Networks and each Guarantor Subsidiary. The summarized financial information has been prepared in accordance with Rule 13-01 of Regulation S-X.

Summarized Financial Information


Income Statement
(In thousands)	Nine Months Ended September 30, 2025				Nine Months Ended September 30, 2024
	Parent Company		Guarantor Subsidiaries		Parent Company		Guarantor Subsidiaries
Revenues	$	—	$	1,313,468	$	—	$	1,317,440
Operating expenses	—		1,138,388		—		1,084,303
Operating income	$	—	$	175,080	$	—	$	233,137
Income before income taxes	$	209,737	$	213,891	$	99,373	$	230,599
Net income	144,867		208,714		57,951		222,139


Balance Sheet	September 30, 2025				December 31, 2024
(In thousands)	Parent Company		Guarantor Subsidiaries		Parent Company		Guarantor Subsidiaries
Assets
Amounts due from subsidiaries	$	206	$	47,520	$	4,483	$	82,342
Current assets	609		1,183,529		31,727		1,386,554
Non-current assets	3,221,339		2,755,801		3,467,276		2,718,427

Liabilities and equity:
Amounts due to subsidiaries	$	37,547	$	2,086	$	80,983	$	733
Current liabilities	105,438		510,785		168,903		473,418
Non-current liabilities	2,063,654		264,391		2,474,505		228,778

Critical Accounting Policies and Estimates

We describe our significant accounting policies in Note 2 to the Company's Consolidated Financial Statements included in our 2024 Form 10-K. There have been no significant changes in our significant accounting policies since December 31, 2024.

We discuss our critical accounting estimates in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our 2024 Form 10-K. There have been no significant changes in our critical accounting estimates since December 31, 2024.

Non-GAAP Financial Measures

Internally, we use AOI and Free Cash Flow as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators.

We evaluate segment performance based on operating segment AOI. We define AOI, which is a financial measure that is not calculated in accordance with generally accepted accounting principles ("GAAP"), as operating income (loss) before share-based compensation expenses or benefit, depreciation and amortization, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges, cloud computing amortization and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. From time to time, we may exclude the impact of certain events, gains, losses or other charges (such as significant legal settlements) from AOI that affect our operating performance.

We believe that AOI is an appropriate measure for evaluating the operating performance on both an operating segment and consolidated basis. AOI and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in the industry. AOI should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities and other measures of performance and/or liquidity presented in accordance with GAAP. Since AOI is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

The following is a reconciliation of operating income to AOI for the periods indicated:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2025		2024		2025		2024
Operating income	$	55,518	$	93,653	$	184,184	$	214,619
Share-based compensation expenses	6,027		5,776		19,827		20,308
Depreciation and amortization	21,378		23,097		68,750		75,416
Restructuring and other related charges	4,479		3,496		12,797		6,427
Impairment and other charges	—		—		—		96,819
Cloud computing amortization	2,405		3,272		8,343		10,103
Majority owned equity investees AOI	4,639		2,182		14,416		9,715
Adjusted operating income	$	94,446	$	131,476	$	308,317	$	433,407

We define Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, all of which are reported in our Consolidated Statement of Cash Flows. We believe the most comparable GAAP financial measure of our liquidity is net cash provided by operating activities. We believe that Free Cash Flow is useful as an indicator of our overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment, investment, and other discretionary and non-discretionary cash uses. We also believe that Free Cash Flow is one of several benchmarks used by analysts and investors who follow the industry for comparison of our liquidity with other companies in our industry, although our measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies.

The following is a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods indicated:


	Nine Months Ended September 30,
(In thousands)		2025		2024
Net cash provided by operating activities		$	256,424	$	317,507
Less: capital expenditures		(24,502)		(24,252)
Free cash flow		$	231,922	$	293,255


Supplemental Cash Flow Information	Nine Months Ended September 30,
(In thousands)	2025		2024
Restructuring initiatives	$	(11,084)	$	(10,351)
Distributions to noncontrolling interests	(7,271)		(18,000)

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Fair Value of Debt

Based on the level of interest rates prevailing at September 30, 2025, the carrying value of our fixed rate debt of $1.67 billion was less than its fair value of $1.72 billion by $48.9 million. The fair value of these financial instruments is estimated based on reference to quoted market prices for these or comparable securities. A hypothetical 100 basis point decrease in interest rates prevailing at September 30, 2025 would increase the estimated fair value of our fixed rate debt by $47.1 million.

Managing our Interest Rate Risk

As of September 30, 2025, we had $1.9 billion of debt outstanding (excluding finance leases), of which $251.3 million is outstanding under our loan facility and is subject to variable interest rates. A hypothetical 100 basis point increase in interest rates prevailing at September 30, 2025 would increase our annual interest expense by $2.5 million. The interest rate paid on approximately 87% of our debt (excluding finance leases) as of September 30, 2025 is fixed.

Managing our Foreign Currency Exchange Rate Risk

We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain trade receivables and accounts payable (including intercompany amounts) that are denominated in a currency other than the applicable functional currency. Changes in exchange rates with respect to amounts recorded in our condensed consolidated balance sheets related to these items will result in unrealized (based upon period-end exchange rates) or realized foreign currency transaction gains and losses upon settlement of the transactions. Moreover, to the extent that our revenue, costs and expenses are denominated in currencies other than our respective functional currencies, we will experience fluctuations in our revenue, costs and expenses solely as a result of changes in foreign currency exchange rates.

To manage foreign currency exchange rate risk, we enter into foreign currency contracts from time to time with financial institutions to limit our exposure to fluctuations in foreign currency exchange rates. We do not enter into foreign currency contracts for speculative or trading purposes.

The Company recognized a loss of $3.3 million and a gain of $13.4 million for the three and nine months ended September 30, 2025, respectively, and gains of $8.5 million and $4.6 million for the three and nine months ended September 30, 2024, respectively, related to foreign currency transactions. Such amounts are included in miscellaneous, net in the condensed consolidated statements of income.

We also are exposed to fluctuations of the U.S. dollar (our reporting currency) against the currencies of our operating subsidiaries when their respective financial statements are translated into U.S. dollars for inclusion in our condensed consolidated financial statements. Cumulative translation adjustments are recorded in accumulated other comprehensive income (loss) as a separate component of equity. Any increase (decrease) in the value of the U.S. dollar against any foreign currency that is the functional currency of one of our operating subsidiaries will cause us to experience unrealized foreign currency translation losses (gains) with respect to amounts already invested in such foreign currencies. Accordingly, we may experience a negative impact on our comprehensive income (loss) and equity with respect to our holdings solely as a result of changes in foreign currency exchange rates.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of the Company's management, including our principal executive officer (our Chief Executive Officer) and our principal financial officer (our Chief Financial Officer), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation as of September 30, 2025, the Company's principal executive officer (our Chief Executive Officer) and principal financial officer (our Chief Financial Officer) concluded that the Company's disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

During the three months ended September 30, 2025, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 14, Commitments and Contingencies to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of our legal proceedings.

Item 1A. Risk Factors.

The risk factors discussed in Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 have not materially changed except as set forth below.

The Trump administration has introduced tariffs that impact a number of industries, including announcing an intention to impose tariffs on movies produced outside the United States. Such tariffs, if imposed, and similar tariffs imposed by other governments, could have a material adverse effect on our financial condition and results of operations.

The Trump administration has introduced tariffs that impact a number of industries, including announcing an intention to impose tariffs on movies produced outside the United States. The U.S. tariff environment remains highly dynamic and views on tariffs and how tariffs would be imposed are evolving. Tariffs charged by other countries, included retaliatory tariffs, also are expected to evolve. As a result, we cannot predict the breadth of tariffs and related costs that will ultimately impact the Company, but if tariffs are imposed on production of content, including films and series, such costs could be substantial and have a material adverse effect on our financial condition, results of operations and cash flows, and our expected financial results. Based on the ultimate scope, nature and duration of any tariffs implemented, we may take various mitigating actions, such as making changes to our content production plans, which may not fully offset the impact of tariffs. We may also need to make material changes to how and where we produce and source programming, which could require significant changes to production schedules and locales, including access to local production tax credits, any of which could be material.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company's Board of Directors has authorized a $1.5 billion Stock Repurchase Program. The authorization of up to $500 million was announced on March 7, 2016, an additional authorization of $500 million was announced on June 7, 2017, and an additional authorization of $500 million was announced on June 13, 2018. The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time.

For the three months ended September 30, 2025, the Company did not repurchase any shares of its Class A Common Stock. As of September 30, 2025, the Company had $124.9 million of authorization remaining for repurchase under the Stock Repurchase Program.

Item 6. Exhibits.

(a)Index to Exhibits.


Exhibit Number						Description of Exhibit

10.1						Employment Agreement, dated October 9, 2025, by and between AMC Networks Inc. and Kristin Dolan.

10.2						Renewal Cash Performance Award Agreement, dated October 9, 2025, by and between AMC Networks Inc. and Kristin Dolan.

10.3						Indenture, dated as of July 3, 2025, among AMC Networks, as issuer, each of the guarantors party thereto and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on July 3, 2025).

10.4						Amendment No. 5, dated as of October 29, 2025, to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017, among AMC Networks and its subsidiary, AMC Network Entertainment LLC, as the initial borrowers, certain of AMC Networks’ subsidiaries, as restricted subsidiaries, Bank of America N.A., as an L/C Issuer, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and an L/C Issuer (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 30, 2025).

22						Guarantor Subsidiaries of the Registrant.

31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32*						Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.



101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within Inline XBRL document.

101.SCH						XBRL Taxonomy Extension Schema Document.

101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.

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101.LAB						XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.

104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

* Furnished herewith. These exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMC Networks Inc.

Date:

November 7, 2025

By:

/s/ Patrick O'Connell

Patrick O'Connell

Executive Vice President and Chief Financial Officer

Date:

November 7, 2025

By:

/s/ Michael J. Sherin III

Michael J. Sherin III

Executive Vice President and Chief Accounting Officer

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SEC Form 10-Q filed by AMC Networks Inc.

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