Angel Studios Adds Members as Recurring Revenue Mix Expands
Revenue rose 27.5% to $111.7 million as membership income claimed a larger share of the business.
Angel Studios (ANGX), the values-driven entertainment company, added about 390,000 paying Guild members in the second quarter, lifting membership 17.6% sequentially to 2.61 million. The gain accelerated from 11% growth in the first quarter, though year-over-year growth eased to 99.2% from 106%.
The expansion deepened Angel’s shift toward recurring membership revenue. Guild revenue rose 8.9% from the prior quarter and 93.8% from a year earlier to $90.7 million, accounting for 81.2% of total revenue, up from 72% in the first quarter and 62.9% in the fourth quarter of 2024.
Total revenue increased 27.5% from a year earlier to $111.7 million, while declining about 3% from the first quarter. The company’s year-over-year growth slowed from 143% in the prior quarter. Angel’s net loss widened to $23.8 million from $15.7 million, and its loss increased to $0.129 a share from $0.106 a share.
Member acquisition remained more efficient than a year earlier even as costs rose from the first quarter. Angel added 69.6% more Guild members than in the year-earlier period while Guild selling-and-marketing expense increased 43.0%. That expense climbed to 52.8% of Guild revenue from 43% in the first quarter, though it remained below 71.6% a year earlier.
Gross margin contracted to about 54% from 69% a year earlier, which Angel attributed to the prior-year quarter’s heavier mix of higher-margin theatrical revenue from “The King of Kings.” Adjusted EBITDA swung to an $11.7 million loss from positive $4.0 million in the first quarter, though the loss narrowed from $17.5 million a year earlier. Operating cash flow improved by $27.5 million to positive $16.9 million.
Angel reiterated its full-year outlook for an Adjusted EBITDA loss of no more than $25 million. Cash and equivalents rose to $48.0 million at June 30 from $44.1 million at year-end, and the company made no second-quarter draw on its Trinity credit facility.
The company began publishing Guild membership in real time during the quarter and the count exceeded 2.85 million by July 31. Angel stopped reporting trailing-12-month average revenue per member after disclosing monthly figures of $13.69 in the first quarter and $13.67 in the fourth quarter, leaving its membership trajectory more current than its measure of unit monetization.