# AMC Global Media Inc. (AMCX) Informational only - not investment advice. CIK: 0001514991 SIC: 4841 Cable & Other Pay Television Services SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Communications](/major-group/48/) > [SIC 4841 Cable & Other Pay Television Services](/industry/4841/) Latest 10-K filed: 2026-02-11 SEC page: https://www.sec.gov/edgar/browse/?CIK=1514991 Filing source: https://www.sec.gov/Archives/edgar/data/1514991/000151499126000011/amcx-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2311801000 | USD | 2025 | 2026-02-11 | | Net income | 89400000 | USD | 2025 | 2026-02-11 | | Assets | 3936881000 | USD | 2025 | 2026-02-11 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001514991.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 2,805,691,000 | 2,971,929,000 | 3,060,321,000 | 2,814,956,000 | 3,077,608,000 | 3,096,545,000 | 2,711,877,000 | 2,421,314,000 | 2,311,801,000 | | Net income | | | | 270,510,000 | 471,316,000 | 446,187,000 | 380,486,000 | 239,979,000 | 250,596,000 | 7,594,000 | 215,464,000 | -226,546,000 | 89,400,000 | | Operating income | | | | 657,556,000 | 722,359,000 | 726,909,000 | 625,277,000 | 442,644,000 | 489,922,000 | 86,916,000 | 388,412,000 | -39,600,000 | 133,322,000 | | Diluted EPS | | | | 3.74 | 7.18 | 7.57 | 6.67 | 4.64 | 5.77 | 0.17 | 4.90 | -5.10 | 1.66 | | Operating cash flow | | | | | 385,729,000 | 606,547,000 | 483,748,000 | 748,736,000 | 143,474,000 | 181,834,000 | 203,919,000 | 375,615,000 | 305,670,000 | | Capital expenditures | | | | 79,220,000 | 80,049,000 | 89,802,000 | 91,604,000 | 46,595,000 | 42,572,000 | 44,272,000 | 35,207,000 | 44,775,000 | 33,303,000 | | Share buybacks | | | | 223,237,000 | 434,210,000 | 283,143,000 | 70,598,000 | 356,701,000 | 0.00 | 0.00 | 0.00 | 0.00 | 17,969,000 | | Assets | | | | 4,480,595,000 | 5,032,985,000 | 5,278,563,000 | 5,596,686,000 | 5,246,338,000 | 5,748,946,000 | 5,633,836,000 | 4,969,787,000 | 4,362,221,000 | 3,936,881,000 | | Liabilities | | | | 4,262,908,000 | 4,650,436,000 | 4,633,797,000 | 4,595,730,000 | 4,287,588,000 | 4,562,425,000 | 4,526,354,000 | 3,710,544,000 | 3,422,080,000 | 2,923,132,000 | | Stockholders' equity | | | | -30,082,000 | 134,944,000 | 316,680,000 | 665,781,000 | 616,805,000 | 851,088,000 | 806,988,000 | 1,048,051,000 | 855,595,000 | 981,871,000 | | Cash and cash equivalents | 521,951,000 | 201,367,000 | 316,321,000 | 481,389,000 | 558,783,000 | 554,886,000 | | | | 930,002,000 | 570,576,000 | 784,649,000 | 502,379,000 | | Free cash flow | | | | | 305,680,000 | 516,745,000 | 392,144,000 | 702,141,000 | 100,902,000 | 137,562,000 | 168,712,000 | 330,840,000 | 272,367,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | 16.80% | 15.01% | 12.43% | 8.53% | 8.14% | 0.25% | 7.95% | -9.36% | 3.87% | | Operating margin | | | | | 25.75% | 24.46% | 20.43% | 15.72% | 15.92% | 2.81% | 14.32% | -1.64% | 5.77% | | Return on equity | | | | | 349.27% | 140.90% | 57.15% | 38.91% | 29.44% | 0.94% | 20.56% | -26.48% | 9.11% | | Return on assets | | | | 6.04% | 9.36% | 8.45% | 6.80% | 4.57% | 4.36% | 0.13% | 4.34% | -5.19% | 2.27% | | Liabilities / equity | | | | | 34.46 | 14.63 | 6.90 | 6.95 | 5.36 | 5.61 | 3.54 | 4.00 | 2.98 | | Current ratio | | | | 1.78 | 2.51 | 2.46 | 2.90 | 2.21 | 1.89 | 1.67 | 1.72 | 2.38 | 1.67 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001514991.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 1.91 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.94 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 2.36 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 678,628,000 | 70,239,000 | 1.60 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 636,954,000 | 63,424,000 | 1.44 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 678,848,000 | -21,809,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 596,461,000 | 45,803,000 | 1.03 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 625,934,000 | -29,234,000 | -0.66 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 599,614,000 | 41,382,000 | 0.76 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 599,305,000 | -284,497,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 555,233,000 | 18,049,000 | 0.34 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 600,024,000 | 50,289,000 | 0.91 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 561,741,000 | 76,529,000 | 1.38 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 594,803,000 | -55,467,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 542,127,000 | -18,870,000 | -0.43 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1514991/000151499126000061/amcx-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-08 Report date: 2026-03-31 Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. In this Management's Discussion and Analysis of Financial Condition and Results of Operations there are statements concerning our future operating results and future financial performance. Words such as "expects," "anticipates," "believes," "estimates," "may," "will," "should," "could," "potential," "continue," "intends," "plans" and similar words and terms used in the discussion of future operating results and future financial performance identify forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to: •the level of our revenues; •market demand, including changes in viewer consumption patterns, for our programming networks, our subscription streaming services, our programming (including our owned original programming and our film content) and our production services; •demand for advertising inventory and our ability to deliver guaranteed viewer ratings; •the highly competitive nature of the cable, telecommunications, streaming and programming industries; •the cost of, and our ability to obtain or produce, desirable content for our programming services, other forms of distribution, including digital and licensing in international markets, as well as our film distribution businesses; •the loss of any of our key personnel or artistic talent; •the impact and lingering effects of strikes, including those related to the Writers, Directors, and Screen Actors guilds; •the security of our program rights and other electronic data; •breaches or failures of our or our vendors’ information technology systems or products, including by cyber-attack, malware, data leakage, unauthorized access or theft, or other cybersecurity incidents; •our ability to maintain and renew distribution or affiliation agreements with distributors; •economic and business conditions and industry trends in the countries in which we operate, including fluctuations in inflation rates, recession risk, the impacts of tariffs, U.S. federal government shutdowns, and uncertainty regarding the foregoing; •fluctuations in currency exchange rates and interest rates; •changes in domestic and foreign laws or regulations under which we operate; •changes in laws or treaties relating to taxation, or the interpretation thereof, in the United States or in the countries in which we operate; •the impact of existing and proposed federal, state and international laws and regulations relating to data protection, privacy and security, including the European Union's General Data Protection Regulation ("GDPR"), the California Consumer Privacy Act ("CCPA") and other similar comprehensive privacy and security laws that have been or may be enacted in other states; •our substantial debt and high leverage, as well as our liquidity; •reduced access to, or inability to access, capital or credit markets, or significant increases in costs to borrow; •the level of our expenses; •changes in our business strategy; •future acquisitions and dispositions of assets; •our ability to successfully acquire new businesses and, if acquired, to integrate, and implement our plan with respect to businesses we acquire; •problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire; •the outcome of litigation, arbitration and other proceedings or investigations; •whether pending uncompleted transactions, if any, are completed on the terms and at the times set forth (if at all); •financial community and rating agency perceptions of our business, operations, financial condition and the industry in which we operate; •impairment charges related to our goodwill and other intangible assets; •the impact of pandemics or other health emergencies on the economy and our business; •the direct and indirect impact of events that are outside our control, such as geopolitical conditions (including international war or conflicts), political unrest in international markets, terrorist attacks, natural disasters and other similar events; and •the factors described under Item 1A, "Risk Factors" in our 2025 Annual Report on Form 10-K (the "2025 Form 10-K"), as filed with the Securities and Exchange Commission. We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws. 23 Introduction Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere herein and our 2025 Form 10-K to enhance the understanding of our financial condition, changes in financial condition and results of our operations. Unless the context otherwise requires, all references to "we," "us," "our," "AMC Global Media" or the "Company" refer to AMC Global Media Inc., together with its subsidiaries. The MD&A is organized as follows: Business Overview. This section provides a general description of our business and our operating segments, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends. Consolidated Results of Operations. This section provides an analysis of our results of operations for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International. Liquidity and Capital Resources. This section provides a discussion of our financial condition as of March 31, 2026, as well as an analysis of our cash flows for the three months ended March 31, 2026 and 2025. The discussion of our financial condition and liquidity also includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations that existed at March 31, 2026 as compared to December 31, 2025. Critical Accounting Policies and Estimates. This section provides an update, if any, to our significant accounting policies or critical accounting estimates since December 31, 2025. Business Overview Financial Highlights The tables presented below set forth our consolidated revenues, net, operating income and adjusted operating income ("AOI")1, for the periods indicated. (In thousands) Three Months Ended March 31, 2026 2025 Revenues, net $ 542,127  $ 555,233  Operating Income $ 31,261  $ 64,197  Adjusted Operating Income $ 68,974  $ 104,485  Segment Reporting We manage our business through the following two operating segments: •Domestic Operations: Consists of our streaming services, our five programming networks, our AMC Studios operation and our film distribution business. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, HIDIVE and All Reality). Our programming networks are AMC, We TV, BBC America, IFC, and SundanceTV. Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business consists of Independent Film Company. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks. •International: Consists of AMC Global Media International, our international programming businesses consisting of a portfolio of channels distributed around the world. 1 Adjusted Operating Income is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section in this MD&A for additional information, including our definition and our use of this non-GAAP financial measure, and for a reconciliation to its most comparable GAAP financial measure. 24 Domestic Operations In our Domestic Operations segment, we earn revenue principally from: (i) subscription revenues in connection with the distribution of our programming through our streaming services and programming networks, (ii) the sale of advertising, and (iii) the licensing of our original programming to distributors, including the distribution of programming of Independent Film Company. Substantially all of our subscription revenues are based on a per subscriber fee. The subscription revenues we earn vary from period to period, distributor to distributor and also vary among our streaming services and programming networks. Subscription revenues are generally based on the impact of renewals of distributor agreements and upon the number of each distributor's subscribers who receive our programming, referred to as viewing subscribers. Subscription fees for our services are generally paid by distributors and consumers on a monthly basis. In negotiating for additional subscribers or extended carriage, we have agreed, in some instances, to make payments to a distributor which we record as deferred carriage fees and which are amortized as a reduction of revenue over the period of the related affiliation agreement. We also may support the distributors' efforts to market our networks. We believe that these transactions generate a positive return on investment over the contract period. Under affiliation agreements with our distributors, we have the right to sell a specified amount of national advertising time on our programming networks. Our advertising revenues are more variable than subscription revenues because the majority of our advertising is sold on a short-term basis, not under long-term contracts. Our arrangements with advertisers provide for a set number of advertising units to air over a specific period of time at a negotiated price per unit. Additionally, in these advertising sales arrangements, our programming networks generally guarantee specified viewer ratings for their programming. If these guaranteed viewer ratings are not met, we are generally required to provide additional advertising units to the advertiser at no charge. For these types of arrangements, a portion of the related revenue is deferred if the guaranteed ratings are not met and is subsequently recognized either when we provide the required additional advertising units or the guarantee obligation contractually expires. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen. Our domestic programming networks have advertisers representing companies in a broad range of sectors, including the automotive, restaurants/food, health, technology and telecommunications industries. We seek to increase our advertising revenues by increasing the rates we charge for such advertising, which depend in part on the overall distribution and popularity of our programming, including among desirable demographic groups as measured by Nielsen, the penetration of our services across digital platforms, including AVOD and FAST services, and the integration of our advanced advertising products. Content licensing revenue is earned from the licensing of original programming for digital, foreign and home video distribution and is recognized upon availability or distribution by the licensee, and, to a lesser extent, is earned throu [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's discussion and analysis of financial condition and results of operations, or MD&A, is a supplement to and should be read in conjunction with the accompanying consolidated financial statements and related notes. Our MD&A is provided to enhance the understanding of our financial condition, changes in financial condition and results of our operations and is organized as follows: Business Overview. This section provides a general description of our business and our operating segments, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends. Consolidated Results of Operations. This section provides an analysis of our results of operations for the years ended December 31, 2025 and 2024. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International. Analysis of our results of operations, on both a consolidated and segment basis, for the year ended December 31, 2023, including a comparison of 2024 to 2023, is included in our Annual Report on Form 10-K for the year ended December 31, 2024. Liquidity and Capital Resources. This section provides a discussion of our financial condition as of December 31, 2025 as well as an analysis of our cash flows for the years ended December 31, 2025 and 2024. The discussion of our financial condition and liquidity also includes a summary of our primary sources of liquidity. Analysis of our cash flows for the year ended December 31, 2023 is included in our Annual Report on Form 10-K for the year ended December 31, 2024. Critical Accounting Policies and Estimates. This section provides a discussion of our accounting policies considered to be important to an understanding of our financial condition and results of operations, and which require significant judgment and estimates on the part of management in their application. Business Overview Financial Highlights     The tables presented below set forth our consolidated revenues, net, operating income (loss) and adjusted operating income ("AOI")(1), for the periods indicated. (In thousands) Year Ended December 31, Change 2025 2024 2025 vs. 2024 Revenues, net $ 2,311,801  $ 2,421,314  (4.5) % Operating Income (Loss) $ 133,322  $ (39,600) n/m Adjusted Operating Income $ 411,874  $ 562,573  (26.8) % n/m - Absolute percentages greater than 100% and comparisons between positive and negative values or zero values are considered not meaningful. (1) Adjusted Operating Income is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section in this MD&A for additional information, including our definition and our use of this non-GAAP financial measure, and for a reconciliation to its most comparable GAAP financial measure. Segment Reporting We manage our business through the following two operating segments: •Domestic Operations: Consists of our five programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, We TV, BBCA, IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, HIDIVE and All Reality). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes Independent Film Company, RLJE Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks. •International: Consists of AMCNI, our international programming businesses consisting of a portfolio of channels distributed around the world. Domestic Operations In our Domestic Operations segment, we earn revenue principally from: (i) subscription revenues in connection with the distribution of our programming through our programming networks and streaming services, (ii) the sale of advertising, and (iii) the licensing of our original programming to distributors, including the distribution of programming of Independent Film Company. 43 In the first quarter of 2025, the Company updated the definition of "aggregate paid subscribers" and the definitions of "affiliate revenues" and "streaming revenues". These changes have no effect on the Company's consolidated financial statements or results of operations, or operating segment results. The impact of these changes to historical affiliate revenues and streaming revenues is not material. The new definitions are as follows: Streaming subscriber (previously "aggregate paid subscriber"): A subscriber who registers on an a la carte basis and from whom we receive a fee, for one of our streaming services directly through our direct-to-consumer applications or indirectly through one of our streaming platform arrangements. This definitional change resulted in the exclusion of subscribers from our count who received access to our streaming services from distributors through a video package that also included access to our programming networks. Subscribers in this Annual Report on Form 10-K reflect our updated definition. The following table sets forth our streaming subscribers, presented under both the old definition of "aggregate paid subscriber" and the new definition of "streaming subscriber" as of each date indicated: (in thousands) December 31, 2024 December 31, 2023 As originally reported (a) 12,388 11,443 Adjustments (b) (1,971) (1,306) Recast (c) 10,417 10,137 (a) Originally reported as "aggregate paid subscribers". Prior to the first quarter of 2025, a paid subscription was defined as a subscription to a direct-to-consumer service or a subscription received through distributor arrangements, in which we received a fee for the distribution of our streaming services. (b) Primarily consists of Orange (Spain) and Philo customers at the end of the period presented that were provided access to our streaming services as part of video packages that also included access to our programming networks. (c) Under new definition of "streaming subscribers". Affiliate revenues: Represents fees received from distributors for the rights to use the Company's programming under multi-year contracts, commonly referred to as "affiliation agreements." Affiliate revenues also include fees received from distributors who provide access to our streaming services to end users through a video package that also includes access to our programming networks. Affiliate revenues are earned from cable and other multichannel video programming distribution platforms, including direct broadcast satellite and platforms operated by telecommunications providers and virtual multichannel video programming distributors. Streaming revenues: Represents fees for our streaming services earned from our direct-to-consumer platforms as well as through streaming platform arrangements with companies that sell our streaming services on our behalf. Substantially all of our subscription revenues are based on a per subscriber fee. The subscription revenues we earn vary from period to period, distributor to distributor and also vary among our programming networks and streaming services. Subscription revenues are generally based on the impact of renewals of distributor agreements and upon the number of each distributor's subscribers who receive our programming, referred to as viewing subscribers. Subscription fees for our services are generally paid by distributors and consumers on a monthly basis. In negotiating for additional subscribers or extended carriage, we have agreed, in some instances, to make upfront payments to a distributor which we record as deferred carriage fees and which are amortized as a reduction of revenue over the period of the related affiliation agreement. We also may support the distributors' efforts to market our networks. We believe that these transactions generate a positive return on investment over the contract period. Under affiliation agreements with our distributors, we have the right to sell a specified amount of national advertising time on our programming networks. Our advertising revenues are more variable than subscription revenues because the majority of our advertising is sold on a short-term basis, not under long-term contracts. Our arrangements with advertisers provide for a set number of advertising units to air over a specific period of time at a negotiated price per unit. Additionally, in these advertising sales arrangements, our programming networks generally guarantee specified viewer ratings for their programming. If these guaranteed viewer ratings are not met, we are generally required to provide additional advertising units to the advertiser at no charge. For these types of arrangements, a portion of the related revenue is deferred if the guaranteed ratings are not met and is subsequently recognized either when we provide the required additional advertising time or the guarantee obligation contractually expires. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen. Our domestic programming networks have advertisers representing companies in a broad range of sectors, including the automotive, restaurants/food, health, technology and telecommunications 44 industries. We seek to increase our advertising revenues by increasing the rates we charge for such advertising, which is directly related to the overall distribution of our programming, penetration of our services on various digital platforms such as AVOD and FAST services, integration of our advanced advertising products, and the popularity (including within desirable demographic groups) of our services as measured by Nielsen. Content licensing revenue is earned from the licensing of original programming for digital, foreign and home video distribution and is recognized upon availability or distribution by the licensee, and, to a lesser extent, is earned through the distribution of AMC Studios produced series to third parties. Content licensing revenues vary based on the timing and availability of programming to distributors. We continue to contract for and produce high-quality, attractive programming and remain disciplined in our marketing spend in our efforts to acquire and retain higher lifetime value subscribers. As competition for programming increases and alternative distribution technologies continue to emerge and develop in the industry, costs for content acquisition and original programming have increased. There is a concentration of subscribers in the hands of a few distributors, which could create disparate bargaining power between the largest distributors and us by giving those distributors greater leverage in negotiating the price and other terms of affiliation agreements. We also seek to increase our content licensing revenues by expanding the opportunities for licensing our programming through digital distribution platforms, foreign distribution and home video services. Content expenses, included in technical and operating expenses, represent the largest expenses of the Domestic Operations segment and primarily consist of amortization of program rights, such as those for original programming, feature films and licensed series, as well as participation and residual costs. The other components of technical and operating expenses primarily include distribution and production related costs and program operating costs including cost of delivery, such as origination, transmission, uplink and encryption. The success of our business depends on original programming, both scripted and unscripted, across all of our programming services. These original series generally result in higher ratings for our networks and higher viewership on our streaming services. Among other things, higher audience ratings drive increased revenues through higher advertising revenues. The timing of exhibition and distribution of original programming varies from period to period, which results in greater variability in our revenues, earnings and cash flows from operating activities. There may be significant changes in the level of our technical and operating expenses due to the level of our content investment spend and the related amortization of content acquisition and/or original programming costs. Program rights that are predominantly monetized as a group are amortized based on projected usage and viewership patterns, typically resulting in an accelerated amortization pattern and, to a lesser extent, program rights that are predominantly monetized individually are amortized based on the individual-film-forecast-computation method. Most original series require us to make significant up-front investments. Our programming efforts are not always commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or as a group is less than their unamortized cost, we will write off the excess to technical and operating expenses in the consolidated statements of income (loss). Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. There were no material program rights write-offs included in technical and operating expense for the year ended December 31, 2025. There were program rights write-offs of $20.0 million included in technical and operating expense for the year ended December 31, 2024 for programming that was substantively abandoned. For the year ended December 31, 2024, there were also $44.2 million of program write-offs recorded to restructuring and other related charges in connection with the Company's strategic programming assessments. See "Critical Accounting Policies and Estimates" for a discussion of the amortization and write-off of program rights. International In our International segment, we earn revenue principally from subscription revenue in connection with the international distribution of programming and, to a lesser extent, the sale of advertising from our AMCNI programming networks. Subscription revenue consists of the fees paid by distributors to carry our programming networks. Our subscription revenues are generally based on either a per-subscriber fee or a fixed contractual annual fee, under multi-year affiliation agreements. Subscription revenues are derived from the distribution of our programming networks primarily in Europe, and to a lesser extent, Latin America. Content expenses and programming operating costs primarily comprise technical and operating expenses. Content expenses represent the largest expense of the International segment and primarily consist of amortization of acquired content. Program operating costs include costs such as origination, transmission, uplink and encryption of our linear AMCNI channels as well as content hosting and delivery costs at our various on-line content distribution initiatives. Other components of technical and operating expense include costs of dubbing and sub-titling of programs. Our programming efforts are not all commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in 45 circumstances indicate that the fair value of program rights predominantly monetized individually or a group is less than its unamortized cost, we will write off the excess to technical and operating expenses in the consolidated statements of income (loss). Program rights with no future programming usefulness are substantively abandoned, resulting in the write-off of remaining unamortized cost. There were no material programming write-offs included in technical and operating expense for the years ended December 31, 2025 and 2024. For the year ended December 31, 2025, $6.7 million of program write-offs were recorded to restructuring and other related charges, primarily related to the wind-down of a U.K. joint venture. Similar to our Domestic Operations businesses, the most significant business challenges we expect to encounter in our International business include programming competition (from both foreign and domestic programmers), limited channel capacity on distributors' platforms, the number of subscribers on those platforms and economic pressures on subscription fees. Other significant business challenges unique to our international operations include increased programming costs for international rights and translation (i.e., dubbing and subtitling), a lack of availability of international rights for a portion of our domestic programming content, increased distribution costs for cable, satellite or fiber feeds, a limited physical presence in certain territories, and our exposure to foreign currency exchange rate risk. See also the risk factors described under Item 1A, "Risk Factors - We face risks from doing business internationally." in this Annual Report. Impact of Economic Conditions Our future performance is dependent, to a large extent, on general economic conditions, which can impact, among other things, our ability to manage our businesses effectively and our relative strength and leverage in the marketplace, with both suppliers and customers. Additionally, macroeconomic and geopolitical risks, particularly high inflation and interest rates, as well as potential or implemented tariffs and changes to the U.S. and other countries' trade policies, and uncertainty regarding further changes to any of the foregoing, may adversely impact our results of operations, cash flows and financial position or our ability to refinance our indebtedness on terms favorable to us, or at all. Capital and credit market disruptions, as well as other events such as pandemics or other health emergencies, inflation, tariffs and changes to the U.S. and other countries' trade policies, international conflict and recession, have in the past caused and could in the future cause market volatility and economic downturns, which have led and may lead to lower demand for our products, such as lower demand for television advertising and a decrease in the number of subscribers receiving our programming services. Events such as these have in the past adversely impacted, and may in the future adversely impact, our results of operations, cash flows and financial position. 46 Consolidated Results of Operations The amounts presented and discussed below represent 100% of each operating segment's revenues, net and expenses. Where we have management control of an entity, we consolidate 100% of such entity in our consolidated statements of income (loss) notwithstanding that a third-party owns an interest in such entity. The noncontrolling owner's interest in the operating results of consolidated subsidiaries are reflected in net income or loss attributable to noncontrolling interests in our consolidated statements of income (loss). Years Ended December 31, 2025 and 2024 The following table sets forth our consolidated results of operations for the periods indicated. Years Ended December 31, Change (In thousands) 2025 2024 2025 vs. 2024 Revenues, net: Subscription $ 1,453,240  $ 1,472,051  (1.3) % Advertising 580,795  676,634  (14.2) % Content licensing and other 277,766  272,629  1.9  %  Total revenues, net 2,311,801  2,421,314  (4.5) % Operating expenses: Technical and operating (excluding depreciation and amortization) 1,141,393  1,132,593  0.8  % Selling, general and administrative 818,341  781,329  4.7  % Depreciation and amortization 94,425  98,015  (3.7) % Impairment and other charges 97,784  399,513  (75.5) % Restructuring and other related charges 26,536  49,464  (46.4) % Total operating expenses 2,178,479  2,460,914  (11.5) % Operating income (loss) 133,322  (39,600) n/m Other income (expense): Interest expense (172,353) (166,186) 3.7  % Interest income 27,746  36,803  (24.6) % Gain (loss) on extinguishment of debt, net 129,800  (105) n/m Miscellaneous, net 29,483  (5,409) n/m Total other income (expense) 14,676  (134,897) n/m Net income (loss) from operations before income taxes 147,998  (174,497) n/m Income tax expense (46,226) (43,490) 6.3  % Net income (loss) including noncontrolling interests 101,772  (217,987) n/m Net income attributable to noncontrolling interests (12,372) (8,559) 44.5  % Net income (loss) attributable to AMC Networks' stockholders $ 89,400  $ (226,546) n/m n/m - Absolute percentages greater than 100% and comparisons between positive and negative values or zero values are considered not meaningful. Revenues Subscription revenues decreased 0.8% in our Domestic Operations segment primarily due to a decline in affiliate revenues from basic subscriber declines, partially offset by an increase in streaming revenues primarily due to the impact of price increases across our services. Subscription revenues decreased 4.3% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the favorable impact of foreign currency translation. We expect linear subscriber declines to continue in our Domestic Operations segment, consistent with the declines across the cable ecosystem. Advertising revenues decreased 15.1% in our Domestic Operations segment primarily due to linear ratings declines and lower marketplace pricing. Advertising revenues decreased 9.8% in our International segment primarily due to the recognition of retroactive adjustments reported by a third party for $20.8 million in 2024 partially offset by the impact of higher pricing in the U.K. linear advertising markets. Despite the increase in our International segment in 2025 (excluding the impact of retroactive adjustments reported by a third party in 2024), we generally expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms. 47 Content licensing and other revenues increased primarily due to the timing and availability of deliveries in the period, including the sale of our music catalog during the second quarter of 2025 and revenues earned in connection with our role as executive producer of Silo, a series originally produced by AMC Studios for a third party. These increases were offset by the prior year beneficial impact of the sale of our rights and interests to Killing Eve in the first quarter of 2024 and lower licensing sales from The Walking Dead Universe portfolio of shows in 2025. We expect content licensing revenues to vary in 2026 based on the timing and availability of our programming to distributors. Technical and operating expenses (excluding depreciation and amortization) Technical and operating expenses primarily consist of content expenses, which include the amortization of program rights, such as those for original programming, feature films and licensed series, and participation and residual costs. Technical and operating expenses also include other direct programming costs, such as distribution and production related costs and program delivery costs, such as transmission, encryption, hosting, and formatting. There may be significant changes in the level of our technical and operating expenses due to original programming costs and/or content acquisition costs. As competition for programming increases, costs for content acquisition and original programming are expected to increase. Technical and operating expenses (excluding depreciation and amortization) increased 0.4% in our Domestic Operations segment primarily due to higher residuals costs and higher other direct programming costs, partially offset by a decrease in program rights amortization. Technical and operating expenses (excluding depreciation and amortization) decreased 2.1% in our International segment primarily due to lower program rights amortization, partially offset by the unfavorable impact of foreign currency translation. Selling, general and administrative expenses Selling, general and administrative expenses for our operating segments primarily consist of sales, marketing, research and advertising expenses, employee related costs (excluding share-based compensation), costs of non-production facilities, and an allocation of certain corporate overhead costs. Selling, general and administrative expenses on a consolidated basis also include share-based compensation and executive management and administrative support services not allocated to our operating segments, such as executive salaries and benefits costs, costs of maintaining our corporate headquarters, facilities and common support functions. There have been and may continue to be significant changes in the level of our selling, general and administrative expenses due to the timing of promotions and marketing of original programming series. Selling, general and administrative expenses increased 6.6% in our Domestic Operations segment primarily due to higher marketing expenses, mainly driven by increased paid media spend for AMC+, and an increase in legal costs related to the MFN Litigation. Selling, general and administrative expenses increased 3.4% in our International segment primarily due to the unfavorable impact of foreign currency translation, partially offset by lower selling expenses, including commissions, and lower marketing costs. Corporate overhead costs not allocated to our operating segments remained consistent with prior year, increasing 0.8% to $120.6 million. Impairment and other charges Year ended December 31, 2025 Impairment and other charges of $97.8 million for the year ended December 31, 2025 primarily consisted of a $93.4 million goodwill impairment charge for the AMCNI reporting unit and a $4.4 million impairment charge for our indefinite-lived intangible assets related to SundanceTV trademarks. In December 2025, in connection with the preparation of our fourth quarter financial information, we performed our annual goodwill impairment test and concluded that the estimated fair value of the AMCNI reporting unit declined to less than its carrying amount. The decrease in the estimated fair value reflects current and expected trends across the media industry, including continued softness across the international television broadcasting markets resulting in lower expected future cash flows incorporated into the fourth quarter preparation of our budget and long-range plan, as well as a decrease in the valuation multiples used to estimate fair value using the market approach. As a result, we recognized an impairment charge of $93.4 million related to the AMCNI reporting unit. 48 In December 2025, in connection with the preparation of our fourth quarter financial information, we performed our annual indefinite-lived intangible asset impairment test and concluded that the estimated fair value of the SundanceTV trademarks was less than their carrying amount. The decrease in the estimated fair value reflected current and expected trends across the media industry, including continued softness in the domestic linear marketplace. As a result, we recognized an impairment charge of $4.4 million related to the SundanceTV trademarks. Year ended December 31, 2024 Impairment and other charges of $399.5 million for the year ended December 31, 2024 primarily consisted of a $268.7 million goodwill impairment charge for the Domestic Operations reporting unit, $102.0 million of goodwill impairment charges for the AMCNI reporting unit, and $29.2 million of long-lived asset impairment charges at BBCA. In December 2024, in connection with the preparation of our fourth quarter financial information, we performed our annual goodwill impairment test and concluded that the estimated fair values of the Domestic Operations and AMCNI reporting units declined to less than their carrying amounts. The decrease in the estimated fair values reflected current and expected trends across the media industry, including continued softness in the domestic linear marketplace and across the international television broadcasting markets, resulting in lower expected future cash flows, as well as a decrease in the valuation multiples used to estimate fair values using the market approach for the Domestic Operations reporting unit. As a result, we recognized impairment charges of $268.7 million related to the Domestic Operations reporting unit and $34.0 million related to the AMCNI reporting unit. During the second quarter of 2024, we determined that a triggering event had occurred with respect to our decline in stock price, which required an interim goodwill impairment test to be performed. Accordingly, we performed quantitative assessments for all reporting units. Based on the valuations performed, we concluded that the estimated fair value of the AMCNI reporting unit declined to less than its carrying amount. As a result, we recognized an impairment charge of $68.0 million related to the AMCNI reporting unit. Additionally during the second quarter of 2024, given continued market challenges and linear declines, we determined that sufficient indicators of potential impairment of long-lived assets existed at BBCA, and concluded that the carrying amount of the BBCA asset group was not recoverable. The carrying value of the BBCA asset group exceeded its fair value, and accordingly an impairment charge of $15.7 million was recorded for identifiable intangible assets and $13.5 million for other long-lived assets, which is included within the Domestic Operations operating segment. Restructuring and other related charges Year ended December 31, 2025 Restructuring and other related charges were $26.5 million for the year ended December 31, 2025, $17.5 million of which related to our AMCNI Plan designed to achieve cost reductions and streamline operations including channel re-branding and a reduction of workforce in Southern Europe, the wind-down of a U.K. joint venture, and a voluntary buyout program for employees in Argentina. We also recognized $9.0 million of restructuring charges domestically, primarily comprised of $11.9 million of severance charges in connection with our voluntary buyout program for U.S. employees which is expected to result in modifications to the organizational structure and reduced employee costs. These charges were partially offset by a credit to restructuring expense in connection with the portion of office space that we previously vacated in 2023. Year ended December 31, 2024 Restructuring and other related charges were $49.5 million for the year ended December 31, 2024, consisting of $44.2 million of content impairments and $5.3 million of severance and employee-related costs. Following the purchase of the remaining interest in BBCA in November 2024, the Company completed a strategic programming assessment and recorded a restructuring charge of $43.2 million pertaining to certain scripted original programming that no longer aligned with the channel's go-forward strategy. The remaining content impairments were recorded in connection with We TV shifting to a reduced originals strategy. Operating income The increase in operating income was primarily attributable to reduced impairment and restructuring charges of $301.7 million and $22.9 million, respectively, partially offset by a decrease in revenues of $109.5 million and an increase in selling, general and administrative expenses of $37.0 million. 49 Interest expense The increase in interest expense was primarily due to an increase in average interest rates associated with the July 2025 issuance of our 10.50% Senior Secured Notes due 2032 (the "2032 Secured Notes") and the April 2024 issuance of our 10.25% Senior Secured Notes due 2029 (the "2029 Secured Notes") to refinance our 4.25% Senior Notes due 2029 ("Senior Notes") and 4.75% Senior Notes due 2025, respectively, and the impact of a full year of interest expense for our 4.25% Convertible Senior Notes due 2029 (the "Convertible Notes") that were issued in June 2024, partially offset by the impact of lower outstanding balances under our Term Loan A Facility (as defined below) and Senior Notes. Interest income The decrease in interest income was primarily attributable to lower interest rates for our money market fund accounts, lower interest income recognized in correlation with the reduction in long-term content licensing receivables, and interest received in connection with retroactive adjustments reported by a third party during 2024.     Gain (loss) on extinguishment of debt, net Year ended December 31, 2025 In July 2025, we completed a cash tender offer to repurchase $600.0 million of our Senior Notes at a discount of $111.0 million, and retired the tendered Senior Notes. The discount, net of a $5.2 million write-off of unamortized discount and deferred financing costs associated with the Senior Notes along with $1.7 million of additional expenses associated with the tender offer, was recognized as a gain on extinguishment of debt in the consolidated statements of income (loss). During 2025, we also repurchased $108.3 million principal amount of our outstanding Senior Notes through open market repurchases, at discounts totaling $28.2 million, and retired the repurchased Senior Notes. We recorded $27.2 million in gains after reflecting the discounts, net of $1.0 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes. In October 2025, we entered into Amendment No. 5 ("Amendment No. 5") to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended to date and by Amendment No. 5, the "Credit Agreement"). We continue to maintain $175.0 million of commitments under the revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”). Pursuant to Amendment No. 5, the maturity date of $111.8 million of such commitments was extended to the earlier of (i) October 29, 2030 and (ii) the date that is 90 days prior to the maturity date of any capital markets indebtedness of AMC Networks with an aggregate outstanding principal amount exceeding $50.0 million. The remaining $63.2 million of commitments under the Revolving Credit Facility retained their existing maturity date of April 9, 2028. Additionally, we repurchased and permanently retired term loans held by certain lenders that consented to the maturity extension noted above, in an aggregate principal amount equal to $165.7 million, at a price equal to the principal amount thereof plus accrued and unpaid interest. The remaining $85.6 million principal amount, $2.8 million of which was subsequently repaid during the fourth quarter of 2025 in accordance with the revised contractual payment schedule, retained their existing maturity date of April 9, 2028. In connection with the partial prepayment of the Term Loan A Facility, we recorded a charge of $1.3 million to write off a portion of the unamortized discount and deferred financing costs associated with the Credit Agreement, which was recognized as a loss on extinguishment of debt in the consolidated statements of income (loss). Year ended December 31, 2024 In August 2024, we voluntarily prepaid $35.0 million of borrowings under the Term Loan A Facility, resulting in the recognition of a $0.4 million charge to write off a portion of the associated unamortized discount and deferred financing costs. In June 2024, we repurchased $15.0 million of our outstanding Senior Notes through open market repurchases, at a discount of $4.9 million, and retired the repurchased notes. We recorded a $4.7 million gain which reflects the discount, net of $0.2 million to write off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes. In April 2024, we completed a cash tender offer (the "Offer") to purchase any and all outstanding 4.75% Senior Notes due 2025 and redeemed all 4.75% Senior Notes due 2025 that remained outstanding after completion of the Offer at a price of 100.000% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date. In connection with the Offer and redemption, we recorded a charge of $3.1 million to write off the remaining unamortized discount and deferred financing costs associated with the 4.75% Senior Notes due 2025. In April 2024, we entered into Amendment No. 3 to the Credit Agreement. In connection with Amendment No. 3, we made a $165.6 million partial prepayment of the Term Loan A Facility, bringing the total principal amount outstanding under the Term Loan A Facility to $425 million, and reduced the Revolving Credit Facility to $175 million. In connection with the partial prepayment of the Term Loan A Facility and reduction of the revolving loan commitments, we recorded a charge of 50 $1.3 million to write off a portion of the unamortized discount and deferred financing costs associated with the Credit Agreement, which was recognized as a loss on extinguishment of debt in the consolidated statements of income (loss). Miscellaneous, net The increase in miscellaneous, net was primarily related to the impact of foreign currency fluctuations, increased earnings from equity-method investments, and the impact in the prior year of costs incurred in connection with the second quarter 2024 refinancing transactions. Income tax expense Income tax expense was $46.2 million for 2025 on income from operations before income taxes of $148.0 million, representing an effective tax rate of 31%. The effective tax rate differs from the federal statutory rate of 21% due primarily to (i) a tax benefit of $17.8 million with respect to a reversal of a deferred tax liability resulting from an ownership interest change of RLJ Entertainment, (ii) a tax benefit related to foreign operations of $15.1 million, (iii) tax expense of $20.4 million resulting from a net increase in valuation allowances primarily related to foreign deferred tax assets and (iv) tax expense of $11.0 million primarily related to a write-down of a state investment tax credit receivable. Other items resulting in variances from the federal statutory rate of 21% primarily consist of (i) state and local income tax expense of $7.1 million, (ii) tax expense of $6.8 million resulting from non-deductible goodwill impairment charges and (iii) tax expense of $5.1 million related to non-deductible compensation expense. Income tax expense was $43.5 million for 2024 on income (loss) from operations before income taxes of $(174.5) million, representing a negative effective tax rate. The effective tax rate differs from the federal statutory rate of 21% due primarily to (i) tax expense of $33.7 million related to a write-down of a state investment tax credit receivable, (ii) tax expense related to foreign operations of $18.9 million and (iii) tax expense of $16.0 million resulting from non-deductible goodwill impairment charges. Other items resulting in variances from the federal statutory rate of 21% primarily consist of (i) tax expense of $8.1 million related to the expiration of foreign tax credits, (ii) tax expense of $4.5 million related to non-deductible compensation expense, (iii) state and local income tax expense of $1.2 million and (iv) a tax benefit of $2.2 million resulting from a net decrease in valuation allowances primarily related to foreign deferred tax assets. 51 Segment Results of Operations Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use segment adjusted operating income as the measure of profit or loss for our operating segments. See the "Non-GAAP Financial Measures" section below for our definition of Adjusted Operating Income and a reconciliation from Operating Income to Adjusted Operating Income on a consolidated basis. The segment financial information set forth below, including the discussion related to the individual line items, does not reflect inter-segment eliminations unless specifically indicated. Domestic Operations The following table sets forth our Domestic Operations segment results for the periods indicated. Years Ended December 31, Change (In thousands) 2025 2024 2025 vs. 2024 Revenues, net: Subscription $ 1,264,823  $ 1,275,127  (0.8) % Advertising 476,745  561,301  (15.1) % Content licensing and other 272,402  276,561  (1.5) % Total revenues, net 2,013,970  2,112,989  (4.7) % Technical and operating expenses (excluding depreciation and amortization)(a) 994,707  990,434  0.4  % Selling, general and administrative expenses(b) 552,844  518,654  6.6  % Majority-owned equity investees AOI 23,744  15,678  51.4  %       Segment adjusted operating income $ 490,163  $ 619,579  (20.9) %     (a) Technical and operating expenses excludes cloud computing amortization     (b) Selling, general and administrative expenses excludes share-based compensation expenses and cloud computing amortization Revenues Subscription revenues decreased due to a 12.5% decline in affiliate revenues, partially offset by a 12.3% increase in streaming revenues. Affiliate revenues decreased primarily due to basic subscriber declines, while streaming revenues increased primarily due to the impact of price increases across our services. Subscription revenues include revenues related to the Company's streaming services of $677.0 million and $603.0 million for 2025 and 2024, respectively. Streaming subscribers were 10.4 million at December 31, 2025 and December 31, 2024. The following table presents subscriber information for our domestic programming networks at December 31, 2025 and 2024: Estimated U.S. Subscribers as measured by Nielsen (In thousands) December 31, 2025 December 31, 2024 Domestic Programming Networks: AMC 54,600  59,800  We TV 53,900  58,800  BBCA 50,900  55,600  IFC 47,200  51,700  SundanceTV 44,700  49,500  Advertising revenues decreased primarily due to linear ratings declines and lower marketplace pricing. Content licensing and other revenues decreased primarily due to the timing and availability of deliveries in the period, including the prior year beneficial impact of the sale of our rights and interests to Killing Eve in the first quarter of 2024 and lower licensing sales of shows from The Walking Dead Universe in the current year, partially offset by the sale of our music catalog during the second quarter of 2025 and additional revenues earned in connection with our role as executive producer of Silo, a series originally produced by AMC Studios for a third party. 52 Technical and operating expenses (excluding depreciation and amortization) Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher residuals costs and higher other direct programming costs, partially offset by a decrease in program rights amortization, including decreases for The Walking Dead and Fear the Walking Dead. There were no material write-offs included in program rights amortization expense in 2025. Program rights amortization expense included write-offs of $20.0 million for the year ended December 31, 2024 for programming that was substantively abandoned. Programming write-offs are based on management's periodic assessment of programming usefulness. Selling, general and administrative expenses Selling, general and administrative expenses increased primarily due to higher marketing expenses, mainly driven by increased paid media spend for AMC+, and an increase in legal costs related to the MFN Litigation. Segment adjusted operating income The decrease in segment adjusted operating income was primarily attributable to the continued revenue declines in our linear businesses and higher marketing expenses. International The following table sets forth our International segment results for the periods indicated. Years Ended December 31, Change (In thousands) 2025 2024 2025 vs. 2024 Revenues, net: Subscription $ 188,417  $ 196,924  (4.3) % Advertising 104,050  115,333  (9.8) % Content licensing and other 11,498  12,771  (10.0) % Total revenues, net 303,965  325,028  (6.5) % Technical and operating expenses (excluding depreciation and amortization) 145,359  148,539  (2.1) % Selling, general and administrative expenses(a) 115,426  111,584  3.4  % Segment adjusted operating income $ 43,180  $ 64,905  (33.5) %  (a) Selling, general and administrative expenses excludes share-based compensation expenses Revenues Subscription revenues decreased primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the favorable impact of foreign currency translation. Advertising revenues decreased primarily due to the recognition of retroactive adjustments reported by a third party for $20.8 million in 2024 and the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the impact of higher pricing and higher digital and advanced advertising revenue in the U.K. and Ireland linear advertising markets and the favorable impact of foreign currency translation. Technical and operating expenses (excluding depreciation and amortization) Technical and operating expenses (excluding depreciation and amortization) decreased primarily due to lower program rights amortization, partially offset by the unfavorable impact of foreign currency translation. Selling, general and administrative expenses Selling, general and administrative expenses increased primarily due to the unfavorable impact of foreign currency translation, partially offset by lower selling expenses, including commissions, and lower marketing costs. Segment adjusted operating income The decrease in segment adjusted operating income was primarily due to the recognition of retroactive adjustments reported by a third party for $20.8 million in 2024 and the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024, partially offset by the impact of higher pricing in the U.K. and Ireland linear advertising markets. 53 Liquidity and Capital Resources Overview Our operations typically generate positive net cash flow from operating activities. However, each of our programming businesses has substantial programming acquisition and production expenditure requirements. Our primary source of cash typically includes cash flow from operations. Sources of cash also include amounts available under our Revolving Credit Facility and, subject to market conditions, access to capital and credit markets. The Revolving Credit Facility was not drawn upon at December 31, 2025. The total undrawn revolver commitment is available to be drawn for our general corporate purposes. Although we currently believe that amounts available under our Revolving Credit Facility will be available when and if needed, we can provide no assurance that access to such funds will not be impacted by adverse conditions in the financial markets. The obligations of the financial institutions under our Revolving Credit Facility are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others. As a public company, we may have access to capital and credit markets, although adverse conditions in the financial markets have in the past impacted, and are expected in the future to impact, access to those markets. See the "Debt Financing Agreements" section below for details of our debt transactions in 2025. In October 2023, we entered into an agreement enabling us to sell certain customer receivables to a financial institution on a recurring basis for cash. The transferred receivables will be fully guaranteed by a bankruptcy-remote entity and the financial institution that purchases the receivables will have no recourse to our other assets in the event of non-payment by the customers. We can sell an indefinite amount of customer receivables under the agreement on a revolving basis, but the outstanding balance of unpaid customer receivables to the financial institution cannot exceed the initial program limit of $125.0 million at any given time. We have not yet sold any customer receivables under this agreement. Our principal uses of cash include the production, acquisition and promotion of programming, technology investments, debt service and payments for income taxes. We continue to invest in original programming, the funding of which generally occurs at least nine months in advance of a program's airing. On November 26, 2025, we acquired the remaining 17% of RLJ Entertainment that we had not previously owned for $75.0 million in cash. As a result, the carrying amount of the noncontrolling interest was reduced to zero, reflecting our 100% ownership of RLJ Entertainment. During 2025, $18.0 million of cash and cash equivalents, previously held by foreign subsidiaries, was repatriated to the United States. As of December 31, 2025, our cash and cash equivalents balance of $502.4 million, included $132.5 million held by foreign subsidiaries. Of this amount, $7.3 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the repatriated amount, as well as the expected remaining amount to be repatriated, has been accrued for. The Company does not expect to incur any significant, additional taxes related to the remaining balance. On July 4, 2025, the OBBBA was signed into law, which resulted in cash tax savings for the year ended December 31, 2025. We believe that a combination of cash-on-hand, cash generated from operating activities, availability under our Revolving Credit Facility and our accounts receivable monetization program, and proceeds from the issuance of new debt will provide sufficient liquidity to service the principal and interest payments on our indebtedness, along with our other funding and investment requirements over the next twelve months and over the longer term. However, we do not expect to generate sufficient cash from operations to, combined with cash-on-hand, repay the entirety of the outstanding balances of our debt at the applicable maturity dates. As a result, we will be dependent upon our ability to access the capital and credit markets in order to repay, refinance, repurchase through privately negotiated transactions, open market repurchases, tender offers or otherwise, or redeem the outstanding balances of our indebtedness. We are currently evaluating our liquidity profile in connection with our consideration of our funding and investment needs. Depending on market conditions, we may purchase, redeem, prepay, refinance, amend, exchange, extend or otherwise retire any amount of our outstanding indebtedness at any time and from time to time, in open market or privately negotiated transactions with the holders of such indebtedness or otherwise. We may decide not to proceed with any such transactions in light of market conditions or other relevant factors and, if we do proceed, the terms of any such transaction would be subject to market and other conditions. Our Board of Directors has authorized a program to repurchase up to $1.5 billion of its outstanding shares of common stock. The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. For the year ended December 31, 2025, we repurchased 2.4 million shares of our Class A Common Stock at an average purchase price of $7.29 per share for aggregate consideration of $18.0 million. As of December 31, 2025, we had $117.4 million of authorization remaining for repurchase under the Stock Repurchase Program. 54 Failure to raise significant amounts of funding to repay our outstanding debt obligations at their respective maturity dates would adversely affect our business. In such a circumstance, we would need to take other actions including selling assets, seeking strategic investments from third parties or reducing other discretionary uses of cash. See Item 1A, "Risk Factors – Risks Relating to Our Debt" in this Annual Report. In addition, economic or market disruptions could lead to lower demand for our services, such as loss of subscribers and lower levels of advertising. These events would adversely impact our results of operations, cash flows and financial position. Cash Flow Discussion The following table is a summary of cash flows provided by (used in) operating, investing and financing activities for the periods indicated: Years Ended December 31, (In thousands) 2025 2024 Cash provided by operating activities $ 305,670  $ 375,615  Cash used in investing activities (34,211) (40,376) Cash used in financing activities (570,288) (110,223) Net (decrease) increase in cash and cash equivalents $ (298,829) $ 225,016  Operating Activities Net cash provided by operating activities for 2025 and 2024 amounted to $305.7 million and $375.6 million, respectively. In 2025, net cash provided by operating activities primarily resulted from $1,030.2 million of net income before amortization of program rights, net gain on extinguishment of debt, impairment charges, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $815.2 million. Changes in all other assets and liabilities during the year resulted in a net cash inflow of $90.7 million. In 2024, net cash provided by operating activities primarily resulted from $1,211.2 million of net income before amortization of program rights, impairment charges, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $932.3 million. Changes in all other assets and liabilities during the year resulted in a net cash inflow of $96.7 million. Investing Activities Net cash used in investing activities for 2025 and 2024 was $34.2 million and $40.4 million, respectively. In 2025 and 2024, net cash used in investing activities primarily consisted of capital expenditures of $33.3 million and $44.8 million, respectively. Financing Activities Net cash used in financing activities for 2025 and 2024 was $570.3 million and $110.2 million, respectively. In 2025, net cash used in financing activities primarily related to the tender offer for and repurchases of our Senior Notes of $569.1 million, principal payments on the Term Loan A Facility of $282.8 million, the purchase of the remaining 17% interest of RLJ Entertainment that we had not previously owned for $75.0 million, and the purchase of treasury stock for $18.0 million, partially offset by $394.5 million of proceeds from the issuance of our 2032 Secured Notes. In 2024, net cash used in financing activities primarily related to long-term debt refinancing transactions, the Convertible Notes issuance, principal payments on the Term Loan A Facility, the purchase of the remaining 50.1% interest of the BBCA joint-venture that we had not previously owned for $42.0 million, and distributions to noncontrolling interests of $24.0 million. 55 Debt Financing Agreements The Company's principal amount of long-term debt consists of: (In thousands) December 31, 2025 December 31, 2024 Senior Secured Credit Facility:(a) Term Loan A Facility $ 82,795  $ 365,625  Senior Notes: 10.25% Senior Secured Notes due January 2029 875,000  875,000  4.25% Senior Notes due February 2029 276,706  985,010  4.25% Convertible Senior Notes due February 2029 143,750  143,750  10.50% Senior Secured Notes due July 2032 400,000  —  Principal amount of debt $ 1,778,251  $ 2,369,385  (a)    Represents the aggregate principal amount of the debt, with maturities of the Term Loan A Facility of $82.8 million due April 2028. We also have commitments available under our undrawn $175.0 million Revolving Credit Facility. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. On July 3, 2025, we issued $400.0 million aggregate principal amount of 2032 Secured Notes. We received net proceeds of $394.5 million, after deducting initial purchasers discounts. The 2032 Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement. The proceeds from the issuance, together with cash-on-hand, were used to facilitate the completion of a cash tender offer on July 17, 2025 to purchase $600.0 million of our Senior Notes, at a discount of $111.0 million, and to voluntary prepay the remaining $70.0 million of borrowings under the Term Loan A consisting of the non-extended portion originally due in February 2026 on July 3, 2025. During 2025, we also repurchased $108.3 million principal amount of our Senior Notes through open market repurchases, at discounts of $28.2 million and retired the repurchased Senior Notes. Additionally, in May 2025 we voluntarily prepaid $20.0 million of borrowings under the Term Loan A Facility consisting of the non-extended portion originally due in February 2026. On October 29, 2025, the Company entered into Amendment No. 5 to the Credit Agreement. We continue to maintain $175.0 million of commitments under the Revolving Credit Facility. Pursuant to Amendment No. 5, the maturity date of $111.8 million of such commitments was extended to the earlier of (i) October 29, 2030 and (ii) the date that is 90 days prior to the maturity date of any capital markets indebtedness of AMC Networks with an aggregate outstanding principal amount exceeding $50.0 million. The remaining $63.2 million of commitments under the Revolving Credit Facility retained their existing maturity date of April 9, 2028. Additionally, during 2025, the Company repurchased and permanently retired term loans held by certain lenders that consented to the maturity extension noted above, in an aggregate principal amount equal to $165.7 million, at a price equal to the principal amount thereof plus accrued and unpaid interest. The remaining $85.6 million principal amount, $2.8 million of which was subsequently repaid during the fourth quarter of 2025 in accordance with the revised contractual payment schedule, retained their existing maturity date of April 9, 2028. Amendment No. 5 also includes certain other modifications to covenants and other provisions of the Credit Agreement. Our Credit Agreement generally requires us and our restricted subsidiaries on a consolidated basis to comply with a maximum total net leverage ratio of 5.75:1.00 from April 9, 2024 through March 31, 2026, after which the maximum total net leverage ratio changes to 5.50:1.00. As of December 31, 2025, the total net leverage ratio was approximately 4.41:1.00. In addition, the Credit Agreement requires a minimum interest coverage ratio for us and our restricted subsidiaries on a consolidated basis, which prior to Amendment No. 5 was 2.00:1.00. Amendment No. 5 included a reduction in the minimum interest coverage ratio to 1.50:1.00, with a step-up to 1.75:1.00 for fiscal quarters ending on or after December 31, 2028. As of December 31, 2025, the minimum interest coverage ratio was approximately 2.01:1.00. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including the absence of a default and accuracy of representations and warranties. AMC Networks was in compliance with all of its debt covenants as of December 31, 2025. Additional information regarding our outstanding indebtedness, including its significant terms and provisions, is discussed in Note 9 to the accompanying consolidated financial statements included in this Annual Report on Form 10-K and is incorporated herein by reference. 56 Supplemental Guarantor Financial Information The following is a description of the terms and conditions of the guarantees with respect to the outstanding notes for which AMC Networks is the issuer. Note Guarantees Debt of AMC Networks as of December 31, 2025 included $875.0 million of 2029 Secured Notes, $276.7 million of Senior Notes, $143.8 million of Convertible Notes and $400.0 million of 2032 Secured Notes (collectively, the “notes”). The notes were issued by AMC Networks and are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of AMC Networks’ existing and future domestic restricted subsidiaries, subject to certain exceptions (each, a “Guarantor Subsidiary,” and collectively, the “Guarantor Subsidiaries”). The obligations of each Guarantor Subsidiary under its note guarantee are limited as necessary to prevent such note guarantee from constituting a fraudulent conveyance under applicable law. A guarantee of the notes by a Guarantor Subsidiary is subject to release in the following circumstances: (i) any sale or other disposition of all of the capital stock of a Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) a restricted subsidiary, in compliance with the terms of the applicable indenture; (ii) the designation of a restricted subsidiary as an “Unrestricted Subsidiary” under the applicable indenture; or (iii) the release or discharge of the guarantee (including the guarantee under the AMC Networks’ credit agreement) which resulted in the creation of the note guarantee (provided that such Guarantor Subsidiary does not have any preferred stock outstanding at such time that is not held by AMC Networks or another Guarantor Subsidiary). Foreign subsidiaries of AMC Networks do not and will not guarantee the notes. The following tables present the summarized financial information specified in Rule 1-02(bb)(1) of Regulation S-X for AMC Networks and each Guarantor Subsidiary. The summarized financial information has been prepared in accordance with Rule 13-01 of Regulation S-X. Summarized Financial Information Income Statement (In thousands) Year Ended December 31, 2025 Year Ended December 31, 2024 Parent Company Guarantor Subsidiaries Parent Company Guarantor Subsidiaries Revenues $ —  $ 1,759,868  $ —  $ 1,764,795  Operating expenses —  1,543,291  —  1,693,206  Operating income $ —  $ 216,577  $ —  $ 71,589  Income (loss) before income taxes $ 127,610  $ 176,938  $ (199,080) $ (21,569) Net income (loss) 89,400  169,631  (226,546) (32,249) Balance Sheet December 31, 2025 December 31, 2024 (In thousands) Parent Company Guarantor Subsidiaries Parent Company Guarantor Subsidiaries Assets Amounts due from subsidiaries $ —  $ 90,643  $ 4,483  $ 82,342  Current assets 19,639  1,001,691  31,727  1,386,554  Non-current assets 2,987,716  2,690,262  3,467,276  2,718,427  Liabilities and equity: Amounts due to subsidiaries $ 39,155  $ 3,880  $ 80,983  $ 733  Current liabilities 123,550  548,661  168,903  473,418  Non-current liabilities 1,901,934  230,969  2,474,505  228,778  57 Critical Accounting Policies and Estimates In preparing our consolidated financial statements, we are required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions can be subjective and complex and, consequently, actual results could differ materially from our estimates and assumptions. We base our estimates on historical experience, known or expected trends and other assumptions that we believe are reasonable under the circumstances. We believe the following critical accounting policies comprise the more significant judgments and estimates used in the preparation of our consolidated financial statements: Program Rights We amortize capitalized film and television costs based on whether the content is predominantly monetized individually or as a group. Substantially all of our program rights are expected to be predominantly monetized on our networks and streaming services with other programming and are therefore considered monetized as a group. Licensed and owned original programming, including feature films and television series are amortized to technical and operating expense on a straight-line or accelerated basis based on viewership patterns on our streaming services and the projected program usage of the rights on our networks, over a period not to exceed the respective license periods. The projected program usage is based on the Company's current expectation of future exhibitions taking into account historical usage and viewership patterns of similar content. The Company periodically reviews estimates of its projected program usage and viewership patterns and revises its assumptions if necessary, which could impact the timing of amortization expense. Any adjustments to the assumptions are applied prospectively in the period of the change. For content that is predominantly monetized as a group, unamortized costs are tested for impairment whenever events or changes in circumstances indicate that the fair value of the group may be less than its unamortized costs. Groups are tested for impairment by comparing the present value of the discounted cash flows of the group to the aggregate unamortized costs of the group. If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess and allocated to individual titles within the group on a pro rata basis using the relative carrying value of the titles. Program rights with no future programming usefulness are substantially abandoned, resulting in the write-off of remaining unamortized cost. To a lesser extent, certain program rights are expected to be predominantly monetized individually. These program rights are amortized to technical and operating expense over their estimated useful lives, commencing upon the first usage, based on attributable revenue to date as a percentage of total projected attributable revenue ("ultimate revenue") under the individual-film-forecast-computation method. Ultimate revenues are estimated based on the levels of revenue generated from similar content in comparable markets, projected program usage, and the levels of historical and expected programming market acceptance. The Company periodically reviews its ultimate revenue estimates and revises its assumptions if necessary, which could impact the timing of amortization expense. Any adjustments are applied prospectively as of the beginning of the fiscal year of the change. For content that is predominantly monetized on an individual basis, a television program or feature film is tested for impairment when events or circumstances indicate that its fair value may be less than its unamortized cost. Individual titles are tested for impairment by comparing the present value of the discounted cash flows of the title to the unamortized costs of the title. If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess. Program rights with no future programming usefulness are substantially abandoned, resulting in the write-off of remaining unamortized cost. There were no material write-offs included in technical and operating expense for the year ended December 31, 2025. Program rights write-offs of $20.7 million were included in technical and operating expense for the year ended December 31, 2024 for programming that was substantively abandoned. Refer to Note 4 for details on program write-offs recorded to restructuring expense for the years ended December 31, 2025 and 2024. Useful Lives of Affiliate Intangible Assets The carrying amount of our affiliate relationships acquired in business combinations as of December 31, 2025 was $130.6 million. Useful lives of affiliate relationships (ranging from 6 to 25 years) are initially determined based upon weighted average remaining terms of agreements in place with major distributors when purchase accounting is applied, plus an assumption for expected renewals. We periodically review our assumption for expected renewals based on recent experience and known or expected trends. 58 Goodwill Goodwill is not amortized, but instead is tested for impairment at the reporting unit level annually as of December 1, or more frequently upon the occurrence of certain events or substantive changes in circumstances. The annual goodwill impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of qualitative factors, that the fair value of a reporting unit is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test calculates any goodwill impairment as the difference between the carrying amount of a reporting unit and its fair value, but not to exceed the carrying amount of goodwill. For our annual impairment test, we performed quantitative impairment tests for all reporting units. The impairment test for goodwill requires judgment related to the identification of reporting units, the assignment of assets and liabilities to reporting units including goodwill, and the determination of fair value of the reporting units. The quantitative impairment test evaluates whether the carrying value of a reporting unit exceeds its estimated fair value. We estimate the fair value of our reporting units based on the present value of future cash flows (“Discounted Cash Flow Method”) and the total enterprise value multiples of publicly traded comparable companies (“Market Comparables Method”). The Discounted Cash Flow Method requires us to make various assumptions regarding the timing and amount of future cash flows, including revenue growth rates, operating margins, and programming and working capital investments for a projection period, plus the terminal value of the business at the end of the projection period. The assumptions about future cash flows are based on internal forecasts, which incorporates our long-term business plans and historical trends and are subject to a greater degree of uncertainty in times of adverse economic conditions. The terminal value is estimated based on a perpetual growth rate, which is based on historical and projected inflation and economic indicators, as well as industry growth projections. A discount rate is determined for the reporting unit based on the risks of achieving the future cash flows, including risks applicable to the industry and market as a whole, as well as the capital structure of comparable entities. The Market Comparables Method incorporates revenue and earnings multiples from publicly traded companies with operations and other characteristics similar to each reporting unit. The selected multiples consider each reporting unit’s relative growth, profitability, size, and risk relative to the selected publicly traded companies. The carrying amount of goodwill, by operating segment is as follows: (In thousands) December 31, 2025 Domestic Operations $ 80,038  International 86,771  $ 166,809  Based on our annual impairment test in 2025, we recorded an impairment charge of $93.4 million for our AMCNI reporting unit. For our Domestic Operations reporting unit, we concluded that the estimated fair value of the reporting unit exceeded its respective carrying value by 6%, and therefore no impairment charge was required. The fair value estimates for both reporting units are sensitive to assumptions regarding future growth rates and the weighted-average cost of capital ("WACC"). A decrease in the expected annual growth rate or an increase in the WACC would make it reasonably possible that the Company could record an impairment charge in future periods. See Note 7 to the accompanying consolidated financial statements included in this Annual Report on Form 10-K for additional details. Recently Issued Accounting Pronouncements The information regarding recently issued accounting pronouncements is discussed in Note 2 to the accompanying consolidated financial statements included in this Annual Report on Form 10-K and is incorporated herein by reference. 59 Non-GAAP Financial Measures Internally, we use AOI and Free Cash Flow as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. We evaluate segment performance based on operating segment AOI. We define AOI, which is a financial measure that is not calculated in accordance with generally accepted accounting principles ("GAAP"), as operating income (loss) before share-based compensation expenses or benefit, depreciation and amortization, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges, cloud computing amortization and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. From time to time, we may exclude the impact of certain events, gains, losses or other charges (such as significant legal settlements) from AOI that affect our operating performance. We believe that AOI is an appropriate measure for evaluating the operating performance on both an operating segment and consolidated basis. AOI and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in the industry. AOI should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities and other measures of performance and/or liquidity presented in accordance with GAAP. Since AOI is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The following is a reconciliation of operating income to AOI for the periods indicated: Years Ended December 31, (In thousands) 2025 2024 Operating income (loss) $ 133,322  $ (39,600) Share-based compensation expenses 25,330  26,051  Depreciation and amortization 94,425  98,015  Impairment and other charges 97,784  399,513  Restructuring and other related charges 26,536  49,464  Cloud computing amortization 10,733  13,452  Majority owned equity investees AOI 23,744  15,678  Adjusted operating income $ 411,874  $ 562,573  We define Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, all of which are reported in our Consolidated Statement of Cash Flows. We believe the most comparable GAAP financial measure of our liquidity is net cash provided by operating activities. We believe that Free Cash Flow is useful as an indicator of our overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment, investment, and other discretionary and non-discretionary cash uses. We also believe that Free Cash Flow is one of several benchmarks used by analysts and investors who follow the industry for comparison of our liquidity with other companies in our industry, although our measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies. The following is a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods indicated: Years Ended December 31, (In thousands) 2025 2024 Net cash provided by operating activities $ 305,670  $ 375,615  Less: capital expenditures (33,303) (44,775) Free cash flow $ 272,367  $ 330,840  Supplemental Cash Flow Information Years Ended December 31, 2025 2024 Restructuring initiatives $ (13,039) $ (13,295) Distributions to noncontrolling interests (7,271) (23,992) 60