0001865200-26-000020
SEC filingAngel Studios, Inc. reported significant revenue growth of 233% year-over-year to $321.6 million for FY 2025, driven primarily by a 488% increase in Angel Guild revenue to $209.7 million and a 162% increase in Theatrical revenue to $77.0 million. The company's paying Angel Guild members grew from approximately 0.6 million to 2.0 million during the year. However, operating expenses grew faster than revenue, resulting in an operating loss of $164.1 million and a net loss of $170.5 million. The company's cash position improved by $36.9 million to $44.1 million, supported by $175.8 million in net financing cash flows from equity issuances and debt financing. Key strategic developments include the termination of The Chosen distribution agreement, settlement of the ClearPlay litigation, and the formation of a joint venture to acquire the DAVID film assets.
Angel Studios reported FY 2025 revenue of $321.6 million, representing 233% year-over-year growth from $96.5 million in FY 2024. This exceptional growth was primarily driven by the Angel Guild segment, which grew 488% to $209.7 million as paying members increased from approximately 0.6 million to 2.0 million. Theatrical revenue also showed strong growth of 162% to $77.0 million, supported by 8 film releases compared to 5 in the prior year. Despite this revenue growth, the company reported an operating loss of $164.1 million (widening from $86.7 million in FY 2024) and a net loss of $170.5 million (widening from $88.4 million). The losses were driven by selling and marketing expenses of $297.3 million (220% increase) and cost of revenues of $124.9 million (181% increase).
Revenue growth was concentrated in the Angel Guild segment, which now represents 65% of total revenue ($209.7 million of $321.6 million). Theatrical distribution contributed $77.0 million (24% of total), content licensing $24.5 million (8%), merchandise $7.4 million (2%), and Pay it Forward programs $1.8 million (1%). The company's transition away from Pay it Forward revenue (which declined 74% year-over-year) toward the Angel Guild subscription model appears to be driving the revenue mix shift. Geographic revenue mix was not disclosed in the filing. Growth drivers included successful theatrical releases (King of Kings and David films), larger content licensing deals, and increased merchandise sales due to stronger brand recognition.
Gross margin improved to 61.2% in FY 2025 from 54.0% in FY 2024, with gross profit of $196.7 million on $321.6 million revenue. However, operating margin remained deeply negative at -51.0% due to high operating expenses. Selling and marketing expenses represented 92% of total operating expenses at $297.3 million, with Angel Guild promotion ($163.1 million) and theatrical marketing ($116.8 million) as the largest components. General and administrative expenses were $37.9 million (70% increase), research and development $15.5 million (21% increase), and legal expenses $10.1 million (7% decrease). The cost structure shows heavy investment in customer acquisition and content promotion, with selling and marketing expenses nearly equaling total revenue.
Operating cash flow was negative $83.3 million, while investing activities used $55.6 million primarily for investments in affiliates ($37.0 million), internal-use software ($8.7 million), and content purchases ($6.3 million). Financing activities provided $175.8 million from equity issuances ($104.1 million), debt financing ($157.3 million receipts offset by $67.1 million repayments), and other financing activities. The company ended with $44.1 million in cash and cash equivalents, up from $10.7 million at the beginning of the period. Total assets were $241.4 million, including $26.5 million in digital assets (bitcoin) and $46.0 million in investments in affiliates. Total liabilities were $267.2 million, resulting in negative stockholders' equity of $25.8 million. Debt includes $97.2 million in notes payable ($55.5 million current, $41.7 million long-term).
The company's strategic priorities include continuing its bitcoin treasury strategy (holding 303.1 bitcoins as of December 31, 2025), expanding the Angel Guild membership base, and developing new content through recent merger agreements (Homestead, Toothy Cow Productions, Tuttle Twins Show). The company entered into a $100 million credit facility in September 2025 with four tranches, of which $40 million was funded at closing and $20 million drawn in February 2026. Risk factors include dependence on the Angel Guild model, high customer acquisition costs, ongoing litigation matters (though ClearPlay and Slingshot litigations were settled), and the termination of The Chosen distribution agreement effective May 28, 2024. The company plans to continue using Regulation A offerings and at-the-market equity sales for capital raising.