Shares of Angel Studios slid 7.2% to $4.14 as investors weighed a mixed Q2 earnings report that delivered impressive audience growth but no clear path to profitability. Revenue came in at $111.7 million, roughly in line with estimates, while earnings per share of -$0.13 beat forecasts — yet the stock still fell, signaling that Wall Street wanted more than a smaller-than-expected loss.
• Nearly 100% More Paying Members, but Revenue Per Head Is Slipping
The company's paid membership community grew from 2.22 million to 2.61 million during the quarter, a 17.6% sequential jump and 99.2% year-over-year surge.
That momentum continued past quarter-end: as of July 31, the company had surpassed 2.85 million paying members. But growth came at a cost to quality. Average revenue per member declined by $0.06 to $13.63, largely due to a promotional campaign that attracted a wave of discounted memberships. Investors are asking whether the company is buying scale at the expense of unit economics.
• Marketing Efficiency Is Improving — the Losses Are Not
Guild marketing expense fell to 52.8% of Guild revenue, down from 71.6% a year ago , a real efficiency gain. Yet total net loss widened roughly 50% year-over-year to $23.8 million , and adjusted EBITDA swung back to a $11.7 million loss after turning positive at $4.0 million in Q1. Content investment and revenue mix — not marketing — are now the bigger drags.
• The Second Half Hinges on Seven Film Releases
Analysts project Q3 revenue of about $125.1 million, and management plans to release seven theatrical titles in the back half of 2026 to drive further membership growth.
Film releases make revenue lumpy quarter to quarter, and if those titles underperform at the box office or fail to attract Guild members at recent rates, the full-year EBITDA target could come under pressure.
• The EBITDA Goalpost Hasn't Moved — and That's the Problem
Management reiterated its commitment to limiting the full-year 2026 adjusted EBITDA loss — essentially operating profit before certain accounting charges — to no more than $25 million.
That would still be a massive improvement from the $132 million loss posted in 2025 , but with $11.7 million of the allowance already consumed in Q2 alone, execution in the second half leaves very little room for error. The accumulated deficit grew by roughly $37.6 million in just six months , reminding shareholders that growth and profitability remain on separate timelines.