MC Networks Inc. announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting a pivotal shift in its business model as streaming emerged as the dominant revenue driver in its domestic operations.
The company achieved a significant milestone in 2025 with streaming becoming the largest single source of revenue within the domestic segment. This development marked an important turning point in the company’s ongoing transformation amid broader industry changes. Streaming revenue grew 14% in the fourth quarter to $177 million, primarily driven by price increases across its platforms. For the full year, streaming revenue increased 12% to $677 million. Despite this progress, overall streaming subscriber numbers remained stable at 10.4 million as of December 31, 2025, unchanged from both the end of the previous quarter and the prior year.
Total net revenues for the fourth quarter reached $595 million, reflecting a modest 1% decline compared to the same period in 2024. Full-year net revenues amounted to $2.3 billion, down 5% from the previous year. In the domestic operations segment, which forms the core of the business, revenues fell 1% in the quarter to $515 million and 5% for the full year to $2.0 billion. Subscription revenues in this segment stayed essentially flat in the fourth quarter at $315 million and declined less than 1% annually to $1.3 billion, as streaming gains largely offset reductions in traditional affiliate fees. Affiliate revenues dropped 13% in both the quarter and the year due to ongoing declines in basic cable subscribers.
Advertising revenues faced continued pressure, decreasing 10% in the fourth quarter to $125 million and 15% for the full year to $477 million, attributed to lower linear TV ratings and softer marketplace conditions. Content licensing and other revenues rose 12% in the quarter to $75 million but edged down slightly over the full year.
The company generated positive free cash flow of $40 million in the fourth quarter and $272 million for the entire year, outperforming earlier expectations and supporting financial stability. Net cash from operating activities totaled $49 million in the quarter and $306 million annually. Adjusted operating income stood at $104 million for the quarter with a 17% margin, while full-year adjusted operating income reached $412 million with an 18% margin. The company reported a diluted loss per share of $1.26 in the fourth quarter but achieved positive diluted earnings per share of $1.66 for the year. Adjusted earnings per share were $0.64 in the quarter and $2.03 for the full year.
Strategically, AMC Networks completed key affiliate renewal deals in 2025, covering more than a third of its U.S. and Canadian subscriber footprint. Agreements included long-term partnerships with DirecTV, the National Content & Technology Cooperative, Philo, and EastLink in Canada. Over 1.1 million Spectrum TV customers activated the ad-supported version of AMC+ through Charter since its introduction.
The company advanced its targeted streaming offerings by launching the new unscripted service All Reality and relaunching Sundance Now with an expanded library exceeding 1,000 hours of independent film content. Looking ahead to 2026, the programming slate features a diverse mix of originals, including the darkly comedic Silicon Valley drama The Audacity, new seasons of popular series such as Dark Winds, The Vampire Lestat, The Walking Dead: Daryl Dixon, and The Terror, the sports docuseries Rise of the 49ers, and weekly live programming from TNA Wrestling.
In a notable corporate move, AMC Networks acquired the remaining 17% stake in RLJ Entertainment during the fourth quarter for $75 million in cash, achieving full ownership. This transaction consolidated control over valuable assets, including Acorn TV, ALLBLK, RLJE Films, and a significant investment in Agatha Christie Limited.
The results also incorporated certain non-recurring items, including $98 million in impairment and other charges for the year, primarily a $93 million goodwill impairment related to international operations and a smaller charge for SundanceTV trademarks. Restructuring charges totaled $27 million, tied to cost-reduction initiatives such as channel re-branding, workforce adjustments in Southern Europe, the wind-down of a UK joint venture, and voluntary buyout programs in both international and U.S. operations.
AMC Networks continued its stock repurchase efforts, buying back shares worth $7.5 million in the fourth quarter, with $117 million in authorization remaining under the program as of year-end.
Overall, while traditional linear business segments continued to face headwinds from subscriber losses and advertising softness, the company’s focus on streaming growth, strategic content investments, and operational efficiencies positioned it to navigate the evolving media landscape effectively into the future.
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