Hello, everyone, and welcome to Angel's first quarter 2026 earnings call. Joining me are Angel's Co-Founder and CEO, Neal Harmon, and Angel's CFO, Scott Klossner.

Before we begin, I would like to remind everyone that certain statements made on today's call, including statements regarding future financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Information regarding these risks and uncertainties is included in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. These forward-looking statements represent our outlook only as of the date of this call, and we undertake no obligation to update any forward-looking statements, except as required by applicable law.

During this call, we may refer to certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are available in our earnings press release.

These cautionary statements apply to all forward-looking statements wherever they appear in this call, including in the question-and-answer session. Our earnings press release is available on our Investor Relations website at angx.com, where we also encourage you to sign up to our email alerts.

Neal and Scott will take approximately 20 minutes for their opening remarks before we turn the call over to questions. Thank you all for joining us.

Now I'll pass the call over to Neal.

Thank you, Luke, and good morning, everyone. It's great to be with you for Angel's first quarter 2026 earnings call.

As you may have seen from our earnings release, we achieved a milestone in Q1 with positive adjusted EBITDA of $4 million on revenues of $115 million, both significant improvements over Q4 results. This shows the strength of Angel's recurring revenue model.

We'll get into these strong results in more detail later on the call, especially when Scott discusses our financial performance. Now I want to focus on what sets Angel apart today and what has set us apart from the very beginning.

That is our commitment to having the audience decide, to give them the power, and to align our filmmaker partners with the audience by sharing the upside. We intentionally set out to redefine the relationship between filmmakers and the audience by inviting Guild members to watch, screen, and vote on which films and television series are produced and distributed, both on the Angel platform and in theaters.

Our community is living on the other side of the screen. They're part of the production process.

We have built a global community of over 2.2 million paying members in just over 2 years. Annualized, that membership base represents approximately $365 million in annual recurring revenue.

The Angel Guild now accounts for more than 72% of our total revenue, and filmmaker royalties have continued to grow right alongside of this. In fact, filmmakers have earned $255 million in cumulative royalties as of March 31st, 2026, over a quarter billion dollars.

Our growth is driven by aligning artists and the audience. We believe the untapped total addressable market ahead of us is more than 35 times where we stand today in the US alone.

Now, how do we continue to achieve this kind of growth and success in the TV and streaming market when there are big multi-billion-dollar players with huge checkbooks competing with us? I'll tell you: we remain laser focused on our audience-centric model, which happens to be attracting world-class talent in some of the most watched genres to Angel.

I'll give you a few examples. First, during the quarter, Angel's release of Solo Mio starring Kevin James crossed $25 million at the domestic box office with a right-sized marketing spend.

A large streamer offered up a check to buy the film before the release, but the Solo Mio team came to Angel because they believe the film would be best served by being experienced in theaters, that the Angel Guild would champion the release, and that they would share in the upside. Boy, they were right.

Now Angel, without offering a big upfront check, we get to be the ones to attract new Guild members with one of the highest rated rom-coms in cinema history. Theatrical is strategic.

Investors have asked, why are we in the theatrical business if we intend to simply break even on our theatrical activities? That's an incredibly important question.

The theatrical business is all about growing the Guild, and the Guild is the economic engine of Angel. Solo Mio is just one example.

We've signed 10 filmmakers for theatrical releases in 2026 who made a similar bet on themselves, their projects, and on the Angel community. Most received competing upfront offers.

Without committing upfront capital, our theatrical business helps Angel to compete effectively for premium titles in genres that likely would have been sold to competitors, some with multi-billion-dollar checkbooks. Additionally, each theatrical release is a community-building event designed to do three things simultaneously: first, to retain existing Guild members, help them be happy with their memberships; second, increase the caliber of filmmakers who want to build with us; and third, attract new audience segments to the Guild as theatrical titles are released exclusively on our streaming platform after their theatrical run.

As Angel films like Sound of Freedom, The King of Kings, and most recently David are released, premium Guild members redeem complimentary tickets and have higher retention. Our Guild members say that they want to impact the film industry, and theatrical releases are visible cultural events that remind them of their broader impact on the culture.

In addition, theatrical titles are consistently ranked as the most popular on Angel's streaming platform. Theatrical improves Guild retention both in theaters and on streaming.

Our 2026 theatrical slate also reflects another important trend: that world-class talent is now increasingly turning to Angel. Animal Farm, which opens tonight on roughly 2,500 screens, features one of the most unexpected voice casts of well-known stars, including Seth Rogen, Woody Harrelson, Glenn Close, Kieran Culkin, Jim Parsons, Kathleen Turner, and Gaten Matarazzo.

Angel's summer slate begins with Young Washington, an event which opens July 3rd, the day before America celebrates the 250th anniversary of the Declaration of Independence. It stars Golden Globe winners Kelsey Grammer and Mary-Louise Parker, along with Academy Award winner Ben Kingsley.

If it hadn't been for the advent of the United States of America, Angel and many other companies wouldn't even exist, and this is a fitting tribute to our country. Additionally in the slate, The Brink of War starring Jeff Daniels; Runner with Owen Wilson and Alan Ritchson; Angel and the Badman starring Academy Award winner Tommy Lee Jones and Zachary Levi; Drummer Boy; Hershey; 0D with Vincent Cassel, Sam Worthington, Jim Caviezel, and Ben Mendelsohn—these films will finish off the year.

Because of the scale and momentum of the Angel Guild, we are creating a powerful flywheel by attracting top talent and new genres. The more premium the filmmaker or popular the genre, the stronger the library becomes.

The stronger the library, the higher the growth of the Guild. The larger the Guild royalty pool, the more attractive Angel becomes to the next filmmaker.

That is a durable, competitive moat. Our third objective in theatrical is audience expansion.

Each new title allows Angel to target new and wider audiences. In addition to fans of award-winning talent previously announced, new genres spanning action, satirical allegory, historical war epic, Cold War thriller, and Western each unlock dedicated audiences to these genres who represent entirely new segments of Angel's addressable market.

These titles actually lower the customer acquisition costs as we bring people to the Guild. The Guild model is producing real expansion in our TAM with this approach.

An Angel theatrical release is a brand awareness and Guild retention event, a filmmaker magnet, and a new member acquisition vehicle. That's why we do it, and it's that powerful.

Before I highlight the Angel TV series and a few thoughts about our AI improvements, I want to share one final thought about financial discipline when it comes to the theatrical business. We built our own ticketing technology in-house, and we right-sized marketing budgets using our proprietary data.

This year's slate of 10 films will put Angel in the same release category as it comes to wide releases as studios that have operated for decades and employ thousands of people. We are executing with just 300 employees, powered by technology and an audience that has already told us what they want to see.

That discipline has delivered higher performance. From 2023 to 2025, Angel's US theatrical releases have generated the highest domestic box office for independent films in the industry, surpassing well-known distributors such as A24, Neon, Fox Searchlight, and Focus Features.

On the Angel streaming platform, our library recently surpassed 1,000 titles, and we are on track to almost double the library from 2025 by adding 500 episodes, 200 films, and 30 comedy specials handpicked by the Guild by the end of 2026. That's like a new title coming out every day.

As AI collapses the cost of VFX and production, we could even see an acceleration of quality independent titles coming to the market. Angel's scalable curation model driven by the Guild is poised to discover and capitalize on the best titles from this tsunami of storytelling.

We think it's going to be a renaissance, and we're excited about it. Also last year, we set a goal to achieve a 10x productivity increase in key functions using artificial intelligence in our operations.

In Q1 of 2026, we haven't slowed down. Our marketing team has built AI tools that are acting as 10x multiplier across the entire organization and across the growing library, improving performance and speed simultaneously.

Our customer support team has had breakthroughs using AI to handle basic inquiries, freeing our people to focus on complex issues and dramatically improving our customer satisfaction. Our media operations team actually reduced content scrub time from 1 hour to 1 minute.

Those are great operational examples. As we work to complete the acquisitions of Tuttle Twins and The Wingfeather Saga franchises, we've given their production teams access to Angel's internal AI tools.

Last week, Tuttle Twins producers showcased an AI production breakthrough to our internal filmmaker community. The producers asked everyone to try to identify which scenes in an animated video were generated by AI versus animators.

The results were so impressive—the showrunners couldn't even identify it. We decided to leverage the knowledge to accelerate the series production and reduce animation costs for future episodes of multiple shows.

As one of the producers put it, in the last 2 weeks alone, we've gone from major barriers to unlocking so many opportunities to tell stories, the stories we've been too constrained to tell. We believe that this AI experimentation and knowledge sharing are enabled by our decision to acquire our most watched series and will strengthen Angel's competitive position long into the future.

Our ability to provide a diverse range of unforgettable, values-driven stories across both television and film is one of the reasons why we believe that our total addressable market in the US is over 35 times where we are today. Meanwhile, the global market is expanding and growing over 20% each year through 2034, and we plan to accelerate Guild membership growth in international markets after we achieve sustainable profitability in the US.

The quarter results have validated the growing strength of Angel's recurring revenue model. Angel is not a theatrical studio.

Angel is not even a streamer. Angel has used both the theatrical business and its streaming platform to build the most engaged, values-driven entertainment community in the whole world.

With our expanding library of top talent, over 10% growth of the Guild members in just the first quarter, $115 million in revenue, and $4 million in positive adjusted EBITDA, this is working. Scott, will you please take us through the financials?

Thanks, Neal. Good morning, everyone.

I'm excited to share with you our financial performance in more detail. As Neal stated, total revenue for Q1 of 2026 was $115 million, up 143% from $47 million in revenue in Q1 of 2025.

Similarly, our year-over-year improvement in adjusted EBITDA was substantial. Adjusted EBITDA for Q1 of 2026 was positive $4 million, up $32 million from a loss of $28 million in adjusted EBITDA in Q1 of 2025.

Both figures were also above the ranges provided by the company in the 8-K filed on 10 of April, 2026. Within that total, our revenue mix continues to shift towards the Guild, as designed.

Guild revenue was 63% of total revenue in Q4 and 72% for Q1 of '26. As we've stated before, that trajectory will continue.

Now, if we were to have a blockbuster theatrical release, that may skew the percentage in a future quarter. As of the quarter end, we had 2,220,000 paying Guild members, adding over 220,000 members in Q1.

If you do the math, 2.22 million members times an average monthly revenue of approximately $13.69 annualized, that represents roughly $365 million in annually recurring revenue. As we continue to add members as planned, our operational leverage continues to improve.

As you can see from the significant change in Guild marketing spend as a percent of total Guild revenues, 43% in Q1 of 2026 versus 79% in Q4 of 2025, we are attracting members more efficiently. That's a key data point for the health of our business.

While average revenue per member is holding up well at $13.69, CAC is lower, which means it is cheaper for us to acquire new members. As a result of the growing library, retention continues to get better, customer lifetime values, and the results continue to improve.

Now on the theatrical side, Solo Mio drove strong results through the quarter, along with the continued run of I Was a Stranger and, of course, David. We provide theatrical revenue detail in the 10-Q.

The theatrical contribution, though, was a meaningful driver of the $115 million of revenue in Q1. The contribution of these films to Guild growth and retention moving forward is the strategic reason for being involved in the theatrical business in the first place.

Gross margin for the quarter was 61.8%, consistent with the 60% we reported in Q4 of '25. G&A expenses were $11 million, up 53% year-over-year in comparison to our revenue growth of 143% year-over-year.

Our GAAP net loss attributable to controlling interest was $13.8 million or a loss of 8 cents per share compared to a net loss of $37 million, 26 cents in Q1 of 2025, an improvement of over $23 million year-over-year. We ended Q1 with $38.9 million in cash and cash equivalents, and I want to highlight one number from the cash flow statement that I think deserves attention.

We generated $1.9 million in positive operating cash flow in Q1 of 2026. That compares to $9.8 million of operating cash outflow in Q1 of '25.

That's an $11.7 million swing in operating cash generation in a single year. Keep in mind, it happened in the same quarter we ran a significant theatrical slate and added 220,000-plus Guild members.

That is the flywheel translating into real cash economics. Now, on April 13th, we successfully closed a $34.5 million underwritten registered offering of Class A common stock, inclusive of the full exercise of the overallotment option.

This raise meaningfully strengthens our balance sheet for the biggest, boldest slate we have ever brought to the Angel streaming platform for Guild members. Investors told us that the need to raise capital to satisfy the Atalaya agreement, our debt lender, was an overhang on our stock and was potentially pressuring the share price.

Having now successfully raised approximately $32 million in net proceeds in this equity offering satisfies the requirement, and we can now unlock an additional $40 million in debt capital if needed. This capital will primarily be used to strengthen our Guild growth initiatives.

We're pleased with how the team is executing across every dimension of the business. The results for Q1 speak for themselves, and we believe this improvement will continue.

We're hyper-focused on growing the Guild, the engine that drives the economics of Angel. We believe we're only just scratching the surface of that total addressable market of potential Guild members.

Theatrical releases will still create some lumpiness in our results. For example, seven of our 10 slated theatrical releases will be in the second half of the year.

By lumpiness, what I mean is the timing of costs and revenues. We told you in Q4 that the spend on David occurred in Q4, but most of that benefit comes in 2026 and beyond.

Similarly, in Q2 of this year, we'll initiate the ad spend for Young Washington with a planned release date, though, in July, the revenues are anticipated to come in Q3 and beyond. The bottom line is that adjusted EBITDA on a quarterly basis is likely to remain somewhat volatile, but we believe we're on track to deliver our fiscal year '26 guidance of an EBITDA loss of $25 million or less.

Now I'll turn it to the operator for questions.

Great. Thanks.

Neal and Scott, congratula—

Uh-oh. Can't hear him.

Tom Forte, it was great to hear your voice briefly, but we are having a technical difficulty. We can't hear the remainder of your question.

Can you hear me now?

now we can hear you.

Then I'll talk faster. All right, just one question for me.

As you broaden your theatrical releases, how do you think about how they advance the mission? For example, I would appreciate how you believe Solo Mio and Animal Farm amplify light.

Great question, Tom. If we just back out for 1 second, Angel and everything we do is about the Guild community, strengthening that community and growing the community.

We had a great recording last night of our event. It's called Amplify, that will be broadcast shortly.

We had lots of Guild members there and it was really invigorating for me to see people's faces and their gratitude and this really is a movement. That's what this is about.

Right now in the 21st century, one of the hottest things out there is called IRL, in real life, and that's the way that people are thinking about building brands and standing out in the AI era. Social media is becoming so noisy.

The internet is becoming so noisy. How does one stand out?

The filmmakers who are coming to Angel get to stand out by being on the silver screen. The Angel Guild members get to celebrate the work that they are doing, the funds that they are contributing to Angel's mission through their Guild memberships.

They get to celebrate their work alongside the filmmakers in person, in real life. That's very powerful for the Angel brand.

It's an experience that is going to happen 10 times this year with all different kinds of genres, new genres that we've never done before, that allow us to also grow our audience into new audiences. We get to help retain our existing Guild members, have them be happy with what Angel is accomplishing with their membership fees.

We get to attract new filmmakers who want to be on the silver screen and want to stand out and want to have an in-person, real-life community experience. Then we get to reach new audiences with new genres, new talent.

This is really important for us. Solo Mio and Animal Farm both were opportunities to tap into new markets.

Solo Mio being a rom-com, we've never done that before. It is the highest, if not tied for the highest rated romantic comedy of all time on Rotten Tomatoes, and just a beautiful movie.

Kevin James says it's his best work. We were proud to take that to the world, and it did extremely well.

Animal Farm also is not, Orwell's masterpiece allows us to—well, you asked how do these titles amplify light? We fired ourselves from making that decision.

I have the same vote as everybody else does in the Guild. The community voted for Solo Mio.

The community voted for Animal Farm. They felt that they both amplified light.

In the case of Solo Mio, it was a joyful rom-com. They had an amazing time.

In the case of Animal Farm, it's a conversation that we believe from the comments that the Guild felt like needed to be had. Both of these are allowing us to expand the audience size for Angel, keep the Guild happy, and then help filmmakers understand that Angel is a home.

It's a very broad tent and a home for all different types of genres and talent. Thank you very much, Tom, for that question.

Thank you, Neal.

Hey, guys. How's everybody doing?

I'll ask you two questions. One, I guess, Neal, has the IPO given you more visibility with talent and just maybe talk about how, both that and then just kind of the success of your box office releases since the IPO, how that's impacted talent relations and the ability to kind of attract talent?

Then second, Scott, how are you thinking I guess generally about the cadence of net adds and marketing spend for the rest of the year? I guess is Young Washington the biggest swing factor as we're kind of thinking about kind of modeling the rest of the year, depending on how that does and kind of what you choose to put behind that?

Thanks.

Thanks for the questions, Jason. In terms of the box offices this year, our theatrical strategy is about creating a marketing event around and an in-person experience around every single film.

We did I Was a Stranger. I Was a Stranger brought us brand new interest in the community.

Solo Mio also has, for example, we just announced a new title called Runner. That title was a direct result of Solo Mio coming to Angel and the success of that.

Runner decided also to come to Angel, and that's very exciting because that's a new genre for us as well, new actors that we've never worked with before: Owen Wilson, Alan Ritchson. It's action comedy.

That's very exciting. We had a screening premiere in New York for Animal Farm and that has a really deep, experienced cast.

The relationships that came out of that, we can't announce yet, but there's been lots of relationships come out of that opportunity. Jason, definitely the films themselves have been a real draw.

As far as the IPO process itself, I think we've seen an increase in conversation. We've had comedians and other talent come to Angel and say that they have invested in Angel.

We know that people are tracking Angel and its mission throughout the community. I think that ANGX gives people a symbol, something that they can rally behind.

Quite frankly, we're performing really, really well as a company. We're growing very, very fast.

It is a galvanizing effect on Angel's mission and on our partners, something for them to track as far as Angel's success. Thanks for that question, Jason.

It also got Jason to sign up for the Guild,

so

that would be impact one. Oh, good.

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Annual member. It's my discount.

As far as the cadence of the marketing, we talked after the Q4 release about how we'd spent the majority of the spend on the marketing for David occurred in Q4. The majority of that benefit ultimately will be in Q1 2026 and beyond.

Young—you pointed it out well—Young Washington's going to be a little bit of a difficult release to project. Luckily, because we're running our data in a very specific way, we won't overspend in terms of the marketing spend.

Because the marketing spend will occur in Q2 and then the results and the benefit coming in Q3, we'll see that same sort of cadence that we did from Q4 to Q1 with David. David gave us a nice bump in Q1.

We should see a nice bump in Q3. It will create mixed results somewhat in Q2 that way in terms of marketing spend for the theatrical.

On the Guild side, we're moving efficiently. If you step back for a second and you think about marketing spend and what we're doing overall, as the Guild grows bigger, last year, if you step back, we lost $132 million in adjusted EBITDA and this year we're targeting $25 million or less.

That's in large part because the scale of the size of the business is growing. An individual movie like Young Washington will have less of an effect in future quarters, but it still will have a cadence impact on the sort of a little bit of the lumpiness on the earnings side.

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Appreciate the color. Thanks.

Take care.

Good morning. Thanks for the question.

Two questions. First, you guys have talked last quarter I believe you introduced the Gift the Guild, a $6 sort of add-on for families.

Curious how that strategy is progressing.

Thanks for asking about that. That's an excellent strategy that the team has been testing where a Guild member can essentially add another Guild member to their billing information.

Grandma could add grandkids if she wanted to. It's an interesting feature.

It's been used. We don't have anything to report on the feature in terms of changing models based on the feature.

We're watching it carefully and it's an important feature for those Guild members who use it. It's all margin for us because we don't have to spend marketing to acquire that new Guild member.

It's a great opportunity. Just to clarify on how the feature works, a premium Guild member or a basic Guild member can both add someone to their account for $6 a month, and they become a basic member with ads.

That's the function of the feature. Thanks for the question.

Yep. Thanks.

Then as a follow-up, I really liked your CinemaCon presentation and the movies that you've added to the schedule. These are great ways to sort of raise the profile of Angel among consumers.

Historically, what we've seen from other streaming services is movies are great branding opportunities, but if you want to sort of sustain or increase the lifetime value of a member, a lot of that is aided by the TV series. I'm curious what your TV series pipeline looks like at the moment.

Oh, great question. As we guided previously, we're planning 500 episodes for this year.

You call your average TV show 10, season 10 episodes, be roughly, yeah, 50 seasons to be released by Angel in 2026. That's our expectation.

There is a not unknown, and that is some of the breakthroughs that are happening around AI could accelerate the quantity of independent content coming to the market, and that could change the trajectory for us. That's the sense of the scale.

On our specific most watched series, we have a new season of Homestead, new season of Tuttle Twins, new season of Wingfeather Saga, a new season of Wayfinders. We just announced at our event last night, and this will come out on the live stream that we're going to be broadcasting shortly, Seeking Persephone.

There's a number of a great shows that are coming to Angel, previous shows and then and brand new shows as well. That's an important part of our strategy for retention and for Guild member acquisition, and we will continue to lean into that strategy.

Thanks, Neal.

Thank you.

Thanks, Eric.

Thanks. Hey, guys.

Good morning. Neal, you addressed broadening your audience reach with the expanding 2026 theatrical lineup earlier.

Maybe attacking this topic from a different angle, how do you see your mix of content evolving going forward? Are there genres or gaps in content that you'd like to add?

Oh, that's a great question, Drew. Our strategy is to listen to the Guild and the audience and what the Guild would like for us to deliver for them.

It's also a combination of scale as well. Some genres need scale to support them, right?

Superhero blockbuster movie have $100 million budgets, and we're not doing superhero movies. We're doing an action comedy movie that's got pretty big scale called Runner this year.

We're also doing a large-scale historical thriller, 0D. We anticipate the genres will evolve as Angel increases in scale, that any genre that amplifies light will eventually be able to tap into those.

One of the big things that happened and was a breakout year for us in 2025 was animation. Traditionally, this is a genre that only large-scale companies can actually execute on.

Angel proved with two of the top 10 animated releases that we can execute on that level with animation. That's very exciting for us to open up a broader family animation genre for Angel moving forward.

That's going to be important for Angel and our focus on serving families and serving Guild members' households is serving that part of the market, which is traditionally underserved. Thanks for that question.

Hope that's helpful.

Super helpful. Thanks, Neal.

Then, Scott, maybe one for you. You have two remaining tranches of debt under your term loan with availability subject to achieving certain conditions.

Can you address your need or appetite for accessing these and ability to do so given the accompanying requirements embedded in the agreement? I think one is hitting a minimum recurring revenue figure.

Thanks.

Right. We've already crossed the threshold for the the next tranche along the way in terms of the requirement to draw on it should we choose to do so.

Then we're not far from the fourth. I would suggest that the way to look at it would be what you're asking us is what's our sort of cash flow runway look like as we go forward.

Q1 we had a positive net operating cash flow. Again, there's going to be a little ebbs and tides from quarter to quarter, but again, if you look back and and sort of take a peek at where the company's going, where we're moving forward, it's all about growing the Guild.

As long as we are continuing to execute in the in the way that we are, we perceive that the cash we have on hand will will take us, continue to take us through to profitability. I think that's the the way to look at it in that sense.

Opportunities may come along that may, require cash in some way. For the most part, as we operate and go forward and grow the Guild, the faster we grow the Guild, it actually utilizes cash.

If as the Guild starts to grow, if we see some acceleration opportunities, we may lean into them obviously for the for the benefit of the company long-term. At this point in time, as we look at our business and our current trajectory, we think we have we had $40 million on the $38 million on the balance sheet as of the end of the quarter.

We, subsequent to the quarter, we raised the well, the net $32 million, and then we do have those tranches going forward. I think we're looking we're in a really solid position in terms of where we are in terms of liquidity.

Okay. Thanks, guys.

You bet.

Thank you.

Thanks. Good morning, guys.

A couple questions kind of on strategy. I guess with the new genres that you're bringing to theaters this year, how should we think about the marketing strategy around those genres that are new to Angel in terms of new channels, new methodologies, if any, to kind of attract the kinds of potential Angel Guild members that would be attracted to those genres that maybe haven't been gone after before?

That's a really great question, Eric. When we pick up a new genre like Kevin James, Jonathan Roumie, which we've had Jonathan before, and some other actors inside of Solo Mio, each of those actors has a following, and they open up a marketing opportunity for us around their fan bases.

Then additionally, rom-com in general allows us, in combination with our demographics data of our Guild members, allows us to approach the market in a new way, and that expands an audience size for Angel around Solo Mio. That same phenomenon is happening on every title, and we're anticipate, for example, when we release Runner in September, Owen Wilson has a following, or excuse me, Owen yeah, Owen Wilson and Alan Ritchson both have their own followings, and the action genre has a large following that does extremely well both in theatrical and in streaming.

These are basically just think of them as a door. The door that you open is, "Oh, I get a brand new genre that gives me an audience, and then I get a brand new set of faces that are recognizable faces for a large audience, and that opens up a new marketing door," which for a time drops our CAC for new Guild members around those markets as we take advantage of that opportunity.

Does that make sense, Eric?

Yes. Yes, it does.

Then as a follow-up, and I guess on the planned doubling of the library this year, how should we think about the cadence of kind of library additions this year? Then are there any expectations for kind of the annual growth in the library that may be necessary in the years ahead to sustain retention?

Oh,

it's a good question. Now, as far as this year, we're on pace with our episodes and specials.

I don't have the numbers right in front of me. I think if we released the same number of films we did in Q1 through the rest of the year, we'd be behind pace for the 200 titles, but we're not at all concerned about that.

We have some deals that are coming together and titles that are going to come in swaths that we're completely confident in our goal. Think an acceleration of films throughout the year and that we're on track with our TV shows.

Then as far as the subsequent years, there's really a big wild card, and right now there's 1,000 independent films produced every year without distribution, and about 17% of those are good enough to actually get distribution. It's only a small percentage of those that are good enough to be on Angel.

Angel's positioning is well-positioned to be the first choice for independent filmmakers. When the tsunami of AI content begins coming to the market, all the rules are going to change, and this is really exciting.

Now, Rick Rubin Jeffrey, my co-founder and our chief content officer, was on a podcast with Rick Rubin recently, and Rick Rubin told Jeffrey, he said, "You know what? Slop existed before AI, and slop will exist in higher quantity after AI.

Yelling at AI is like yelling at a paintbrush or a drumstick." They're just tools to make art.

We very much see this that way. What Angel is positioned to do is we're better positioned to curate those titles.

If we go from 1,000 independent titles to 10,000, then we're going to be dealing with a lot more quantity, but we're going to be positioned to best curate a beloved library of titles that are values-driven for the audience, and the audience will have trust in Angel's brand. They'll have a physical association with Angel's brand because of the in-real-life experiences, and so we feel like we're positioned.

I wouldn't venture to say at this stage in the world that we need to grow because we doubled the library last year, and we're almost doubling the library this year. Is that the right cadence moving forward?

I doubt it. I think that the world is changing at a rate that content will become more niche and higher quality, and there'll be more options available.

Those options will be trying to stand out, and Angel will, we believe, be their first choice to stand out. It's going to be an exciting next few years.

If you just stand back and look where Angel has come year-on-year and how Angel is positioned in the marketplace for this opportunity, it's really exciting.

Perfect. Thank you.

Thank you.

Thanks, Eric.

Hey, guys. Thanks for taking my questions.

First one for me, I'm just curious. You guys guided to Q1 after the quarter had already closed, reported results well ahead of expectations.

Just wondering what those puts and takes were of that, what the source of the upside on the first quarter was versus what you guys previously guided in April.

Sure. Ryan, let me speak to that real quick.

You're you're absolutely correct. When we actually began the guidance, we hadn't closed the month entirely.

As we're going through the offering, the biggest sort of differences that came in is we had an unexpected TVOD contract that came to fruition right at the end that we hadn't we hadn't booked yet, and the Guild growth was a little higher than expected. The Q1 right at the end there, we had a couple of things that came in that that made a bigger difference in terms of our revenue, which, ultimately fell mostly to the bottom line and changed the the the guidance—I mean the result in terms of the adjusted EBITDA numbers as well.

Those were sort of the two main factors that came in right at the end that were we didn't have built into our guidance that we gave before we finalized the close. You keep in mind the way the timing of these things work, there's a little of that.

We gave that guidance we started beginning that guidance the beginning of April, and it just by the time it got closed the month got closed, it it had changed slightly.

Okay. That's helpful.

Then, just— In a good way. Right.

Then just thinking about the Guild membership base, now over 2 million members, versus a million or so last year. We have roughly 12 months of data here.

Can you just give us any sort of metrics on what you've seen so far in terms of customer retention or what you're seeing churn currently look like?

We haven't specifically given guidance on that, the CAC number or the retention number. If we step back for a second and just sort of look at the way the company is evolving, I think it gives you some perspective on those two numbers at least at a minimum.

A year ago we spent $30 million in Q1 in Guild marketing and we had $36 million revenue. In this Q1, we spent $36 million in marketing, and we have revenues of about $83 million.

You can see that the dynamic is changing, at least in terms of the way the company is moving forward. Again, remember everything's about Guild growth and about growing the Guild going forward, and so obviously CAC and retention become very big numbers.

I think we're still at a point yet where we're not going to give specific guidance on that. There's probably still some fluctuation that's occurring in regard to that.

As we just talked about, we're actually doubling our library, which will have an impact on retention and it'll have an impact on CAC. It's hard to give specific guidance around that where we're at this point in time.

It won't be too much longer, I'm sure we can talk a little bit more about that. I think the important thing to remember is that from an overall picture, our marketing is getting more efficient, especially as a percent of revenue, and that's what's happening.

The library continues to grow, and our Guild growth numbers, we gave the 200,000 number at the call, and we added another 20,000 in the next 17 days. We believe that that'll continue to go forward.

Neal, do you have something to add?

Yeah. Ryan, just put yourself in the shoes of a Guild member today versus a Guild member at the beginning of 2025.

Beginning of 2025, we had nine theatrical releases. We had Sound of Freedom in our library.

We had a few other titles. Now at the beginning of 2026, we have two major animated releases.

We're up to 17 titles and will be adding an additional 10 titles, plus this large streaming library from new genres, new actors, and traditionally more marketable genres like action. As a new Guild member joining us in 2026, it's a completely different picture than it was before.

It's a completely different value proposition. That is the flywheel that is happening here at Angel and is continuing to accelerate.

We're very optimistic. We have seen improvements in our retention numbers year-on-year, and we expect, based on how we're executing, that those are going to continue to improve.

That is the focus of our business because we get, with a 1% change in retention, we get huge leverage on that as a business moving forward. That's our focus.

I'm glad that we're closing with that question because it's so important.

Got it. Thanks for taking my questions, guys.

Thanks, Ryan.

Thank you. Everything at Angel is about building a community.

The theatrical business and the streaming business are to support a community and what this community would like to achieve. It's also about aligning filmmakers with the audience by sharing the upside and amplifying all of their impact.

If I were to summarize our two completed quarters as a publicly traded company, in Q4 our acquisitions positioned our most watched series—David, Homestead, Tuttle Twins, and The Wingfeather Saga—for future Guild growth. In Q1, our scale and deeper use of AI helped transition Angel to sustainable Guild growth.

We are now a community of over 2,220,000 households strong with estimated $365 million of economic power. This is exciting.

The scale and momentum of the Angel Guild is creating a powerful flywheel. Thank you for your trust in Angel, and we'll see you next quarter.