0001865200-26-000036
SEC filingRevenue surged 143% YoY to $115.1M driven by Angel Guild growth; net loss improved 63% to $13.8M.
For Q1 2026, revenue reached $115.1M, a 143% increase from $47.4M in Q1 2025, driven primarily by Angel Guild membership growth from 1.08M to 2.22M. Cost of revenues rose 126% to $44.0M, resulting in a gross margin improvement to approximately 61.8% from 58.9% (implied). Operating loss narrowed to $2.7M from $33.6M, a 92% improvement, due to revenue scaling. Net loss improved 63% to $13.8M, but was impacted by higher interest expense ($6.0M vs. $1.6M) and a $5.8M net loss on digital assets (bitcoin fair value decline). Adjusted EBITDA turned positive at $4.0M versus -$28.7M.
Angel Guild revenue grew 140% to $83.3M, now 72.4% of total revenue (vs. 65.2% in FY2025). Theatrical revenue increased 133% to $18.0M from larger box office releases. Content licensing surged 291% to $10.2M, reflecting larger deals from recent theatrical films. Merchandise revenue rose 232% to $3.1M, largely from DVD sales of 'David'. Pay it Forward revenue declined 71% as the company transitions focus to the Angel Guild.
Management expects continued operating losses and negative operating cash flow in 2026 as it invests in marketing and content. However, the company believes existing cash ($38.9M), anticipated membership cash inflows ($92.2M from Angel Guild in Q1 2026), and available debt facilities ($60M drawn of $100M loan) are sufficient for at least 12 months. Post-quarter, the company raised $34.5M via a common stock offering and repaid $38.5M in P&A loans. No specific revenue or margin guidance was provided, but strategic priorities remain growing the Angel Guild and expanding theatrical and licensing revenue.
As of March 31, 2026, Angel Studios held $38.9M in cash and cash equivalents, a decrease of $5.2M from December 31, 2025. The company's total assets were $213.1M, down from $241.4M. Total liabilities stood at $254.5M, resulting in negative stockholders' equity of $41.5M, largely due to an accumulated deficit of $255.3M. The current ratio (current assets / current liabilities) was 0.59, indicating liquidity pressure. Operating cash flow was positive at $1.9M for Q1 2026, compared to negative $9.8M in the prior year period. Management notes ongoing reliance on cash from operations, debt facilities, and potential equity raises to fund operations.
The notes disclose no aggregate purchase commitments. However, the company has material contractual obligations under its debt facilities, including a $100M term loan (with $60M drawn as of March 31, 2026) and revolving P&A loans ($38.5M outstanding, since repaid in April 2026). Future commitments include pending acquisitions of Black Autumn Show (Homestead), Toothy Cow Productions (Wingfeather Saga), and Tuttle Twins Show, with stock-based consideration to be issued upon closing. Additionally, production funding commitments for Wingfeather Saga and Tuttle Twins totaled $3.1M capitalized as of March 31, 2026. The Disney litigation settlement was fully paid ($7.8M) by September 2025.
During Q1 2026, Angel Studios repurchased 240,497 shares of common stock for $897,416. No dividends were paid. The company issued $20.0M in new debt (second tranche of term loan) and repaid $18.7M of existing notes payable, resulting in a net debt increase of $1.3M. Capital expenditures totaled $2.7M, including $2.6M for internal-use software and $0.1M for property, equipment, and content. Stock-based compensation expense was $3.5M. No new buyback authorization was announced.
The company operates as a single reportable segment. The CODM (CEO) evaluates performance based on consolidated financial results. Revenue is generated from Angel Guild memberships, theatrical releases, content licensing, merchandise, and Pay It Forward contributions. Geographic revenue disclosure is not provided as the company states it is impracticable due to interconnected revenue streams.