Angel Studios, Inc. - Q1 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended March 31, 2026. Angel Studios, Inc. (ANGX) is a values-based media distribution company operating as a single reportable segment. The company utilizes a community-driven model, the "Angel Guild," to fund, vote on, and distribute content. As of March 31, 2026, the Angel Guild comprised approximately 2.22 million paying members. The company is classified as a non-accelerated filer and an emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $115.1 million | $47.4 million |
| Net Loss | $(13.8) million | $(37.3) million |
| Operating Loss | $(2.7) million | $(33.6) million |
| Adjusted EBITDA | $4.0 million | $(28.7) million |
| Cash and Equivalents | $38.9 million | $14.2 million (Q1 2025) |
| Total Debt (Notes Payable) | $102.3 million | $97.2 million |
| Digital Assets (Bitcoin) | $20.7 million | $26.5 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 143% year-over-year, driven primarily by a 140% increase in Angel Guild revenue ($83.3M vs. $34.7M) and a 133% increase in theatrical revenue ($18.0M vs. $7.7M).
- Profitability Improvement: The operating loss narrowed significantly from $33.6 million in Q1 2025 to $2.7 million in Q1 2026. The company achieved positive Adjusted EBITDA of $4.0 million, compared to a loss of $28.7 million in the prior year.
- Expense Increases: Cost of revenues rose 126% to $44.0 million, largely due to higher royalties ($23.8M) and Angel Guild transaction fees. Selling and marketing expenses increased 12% to $56.6 million to support theatrical releases and membership growth.
- Digital Asset Volatility: The company recorded a net loss on digital assets of $5.8 million due to a decrease in the fair value of its Bitcoin holdings (303.1 BTC).
- Debt Structure: Total notes payable increased to $102.3 million. This includes a new $20.0 million tranche drawn in February 2026 under a $100.0 million credit facility.
Outlook, Risks, and Contingencies
- Liquidity and Capital: Management expects existing capital resources, including cash, receivables, and the ability to draw on its debt facility or sell digital assets, to meet operating requirements for at least the next 12 months. In April 2026 (subsequent event), the company raised $34.5 million via a public offering of Class A Common Stock.
- Strategic Acquisitions: The company has entered into merger agreements to acquire Black Autumn Show (Homestead), Toothy Cow Productions (Wingfeather Saga), and Tuttle Twins Show. Production costs for these titles are being capitalized.
- Legal Proceedings:
- Disney Litigation: The $7.8 million settlement obligation was fully repaid by September 30, 2025. The $62.5 million promissory note remains outstanding but is cancellable upon continued compliance.
- Slingshot Litigation: Resolved in October 2025 via a joint venture and asset purchase agreement, resulting in the dismissal of the lawsuit.
- ClearPlay Litigation: Settled in August 2024; payments are made by VidAngel Entertainment, not Angel Studios.
- Risk Factors: Key risks include the ability to maintain profitability, reliance on the Angel Guild membership base, volatility of digital asset holdings, and the success of upcoming theatrical releases.
Investor Verification Checklist
- Verify the sustainability of the Angel Guild membership growth (2.22M members) and the associated recurring revenue model.
- Review the terms of the $100 million credit facility, specifically the conditions required to draw the remaining tranches (minimum annualized recurring revenue and equity proceeds).
- Assess the impact of Bitcoin price volatility on the company's balance sheet and net income, given the $20.7 million holding.
- Monitor the progress and integration costs of the pending acquisitions (Homestead, Wingfeather Saga, Tuttle Twins).
- Confirm the status of the $62.5 million promissory note related to the Disney settlement and ensure no breaches of the settlement agreement have occurred.