AMCX

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 wars 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. 27 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 and six months ended June 30, 2026 compared to the three and six months ended June 30, 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 June 30, 2026, as well as an analysis of our cash flows for the six months ended June 30, 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 June 30, 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues, net $ 547,495 $ 600,024 $ 1,089,622 $ 1,155,257 Operating Income $ 15,854 $ 64,469 $ 47,115 $ 128,666 Adjusted Operating Income $ 46,068 $ 109,386 $ 115,042 $ 213,871 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. 28 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 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. The Walking Dead Universe Licensing Agreement On July 30, 2026, we announced that we had entered into a license agreement with Netflix granting Netflix co-exclusive global streaming rights to all shows in The Walking Dead Universe, including all seasons of The Walking Dead and Fear the Walking Dead. We retain the global rights to exhibit the shows in The Walking Dead Universe on our own streaming services. Other shows in The Walking Dead Universe include: The Walking Dead: Daryl Dixon; The Walking Dead: Dead City; The Walking Dead: World Beyond; The Walking Dead: The Ones Who Live; and Tales of the Walking Dead. The license agreement generally provides for a five-year term for each licensed show, with licenses for individual shows commencing on different dates in different geographic territories based on the expiration of streaming rights under our existing licenses. The co-exclusive license for the U.S. streaming rights to The Walking Dead begins on January 6, 2027 and the co-exclusive license for U.S. streaming rights to other series in the Walking Dead Universe begin at various times in 2026. Under the license agreement, Netflix will pay an aggregate content license fee of $500 million payable in quarterly cash installments over the five-year term, with approximately $25 million of such payments expected to be received in 2026. As a result of the extended payment terms, the aggregate revenue that we expect to recognize will be based on the present value of future payments which is estimated to be approximately $445 million. 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 29 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 condensed 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 three and six months ended June 30, 2026 and 2025. 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 international 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 international 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 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 condensed 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 three and six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2025, $1.2 million and $4.7 million, respectively, of program write-offs were recorded to restructuring and other related charges, primarily related to the wind-down of a joint venture held by our U.K. business with operations in EMEA. 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 the 2025 Form 10-K. 30 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, the direct and indirect impacts of international wars or conflicts, including the ongoing conflict involving Iran, 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. 31 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 condensed consolidated statements of income (loss) notwithstanding that a third-party owns an interest, which may be significant, in such entity. The noncontrolling owner's interest in the operating results of consolidated subsidiaries are reflected in net income attributable to noncontrolling interests in our condensed consolidated statements of income (loss). Three and Six Months Ended June 30, 2026 and 2025 The following table sets forth our consolidated results of operations for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 Change 2026 2025 Change Revenues, net: Subscription $ 352,514 $ 367,428 (4.1) % $ 704,158 $ 725,503 (2.9) % Advertising 138,212 148,609 (7.0) % 274,431 290,465 (5.5) % Content licensing and other 56,769 83,987 (32.4) % 111,033 139,289 (20.3) % Total revenues, net 547,495 600,024 (8.8) % 1,089,622 1,155,257 (5.7) % Operating expenses: Technical and operating (excluding depreciation and amortization) 288,781 283,876 1.7 % 571,961 551,222 3.8 % Selling, general and administrative 224,698 221,704 1.4 % 426,623 419,679 1.7 % Depreciation and amortization 16,820 26,446 (36.4) % 38,243 47,372 (19.3) % Restructuring and other related charges 1,342 3,529 (62.0) % 5,680 8,318 (31.7) % Total operating expenses 531,641 535,555 (0.7) % 1,042,507 1,026,591 1.6 % Operating income 15,854 64,469 (75.4) % 47,115 128,666 (63.4) % Other income (expense): Interest expense (42,667) (42,460) 0.5 % (84,012) (85,852) (2.1) % Interest income 3,186 8,205 (61.2) % 6,310 16,620 (62.0) % Gain (loss) on extinguishment of debt, net (3,784) 25,745 n/m (3,784) 25,745 n/m Miscellaneous, net 2,971 12,819 (76.8) % (13,971) 20,707 n/m Total other income (expense) (40,294) 4,309 n/m (95,457) (22,780) n/m Income (loss) from operations before income taxes (24,440) 68,778 n/m (48,342) 105,886 n/m Income tax (expense) benefit 4,675 (16,072) n/m 11,413 (31,027) n/m Net income (loss) including noncontrolling interests (19,765) 52,706 n/m (36,929) 74,859 n/m Less: Net income attributable to noncontrolling interests (2,178) (2,417) (9.9) % (3,884) (6,521) (40.4) % Net income (loss) attributable to AMC Global Media's stockholders $ (21,943) $ 50,289 n/m $ (40,813) $ 68,338 n/m n/m - Absolute percentages greater than 100% and comparisons between positive and negative values or zero values are considered not meaningful. Revenues, net Three months ended June 30, 2026 vs. 2025 Subscription revenues decreased 4.5% 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 1.0% in our International segment primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa, 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. 32 Advertising revenues decreased 11.2% in our Domestic Operations segment primarily due to lower ratings and marketplace pricing as well as a now resolved system integration issue, partially offset by digital advertising growth. Advertising revenues increased 13.0% in our International segment primarily due to the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the favorable impact of foreign currency translation. We generally expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms. Content licensing and other revenues decreased 33.7% in our Domestic Operations segment primarily due to the timing and availability of deliveries in the period and the sale of our music catalog and additional revenues earned in connection with the production of Silo, a series originally produced by AMC Studios for a third party, that occurred in the second quarter of 2025. We expect content licensing revenues to vary in 2026 based on the timing and availability of our programming to distributors. Six months ended June 30, 2026 vs. 2025 Subscription revenues decreased 3.6% 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 increased 1.3% in our International segment primarily due to the favorable impact of foreign currency translation, partially offset by lower revenues primarily from the wind-down of a joint venture that operated primarily in Poland and Africa. Advertising revenues decreased 8.3% in our Domestic Operations segment primarily due to lower ratings and marketplace pricing as well as a now resolved system integration issue in the second quarter of 2026, partially offset by digital advertising growth. Advertising revenues increased 8.5% in our International segment primarily due to the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the favorable impact of foreign currency translation Content licensing and other revenues decreased 21.3% in our Domestic Operations segment primarily due to the timing and availability of deliveries in the period and the sale of our music catalog and additional revenues earned in connection with the production of Silo, a series originally produced by AMC Studios for a third party, that occurred in the second quarter of 2025. 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. Three months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased 1.9% in our Domestic Operations segment primarily due to higher other direct programming costs, partially offset by lower program rights amortization. Technical and operating expenses (excluding depreciation and amortization) increased 3.4% in our International segment due to higher program rights amortization driven by the unfavorable impact of foreign currency translation. Six months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased 3.9% in our Domestic Operations segment primarily due to higher other direct programming costs and higher program rights amortization. Technical and operating expenses (excluding depreciation and amortization) increased 5.7% in our International segment due to higher program rights amortization driven 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. 33 Three months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased 2.1% in our Domestic Operations segment primarily due to higher marketing expenses associated with increased media spend for the premiere season of The Audacity and an increase in corporate allocated employee related costs partially offset by lower committed advertising spend with customers from contract renewals. Selling, general and administrative expenses increased 8.3% in our International segment primarily due to an increase in revenue share fees and commissions in the U.K. driven by the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the unfavorable impact of foreign currency translation. Unallocated corporate overhead costs decreased 3.0% to $29.7 million primarily due to lower employee related costs. Six months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased 1.0% in our Domestic Operations segment primarily due to higher marketing expenses associated with increased media spend for the premiere season of The Audacity, an increase in corporate allocated employee related costs and an increase in legal fees, partially offset by lower committed advertising spend with customers from contract renewals. Selling, general and administrative expenses increased 11.9% in our International segment primarily due to the unfavorable impact of foreign currency translation, a decrease in costs allocable to the Domestic Operations segment and an increase in revenue share fees and commissions in the U.K. driven by the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels. Unallocated corporate overhead costs remained flat at $59.9 million. Depreciation and amortization expenses Depreciation and amortization expenses include depreciation of fixed assets and amortization of finite-lived intangible assets. Three and six months ended June 30, 2026 vs 2025 Depreciation and amortization decreased primarily due to the retirement of broadcasting and technology assets in the second quarter of 2025 related to the outsourcing of back-end content distribution in our Domestic Operations segment as well as reduced depreciation on leasehold improvements at our corporate headquarters associated with the extension of our lease in December 2025. Restructuring and other related charges Three months ended June 30, 2026 Restructuring and other related charges were $1.3 million for the three months ended June 30, 2026, with $0.8 million associated with the Company's ongoing restructuring plan in our International segment (the "International Plan"), which for the quarter consisted primarily of workforce reductions in Latin America, and $0.5 million related to the Company's voluntary buyout program for U.S. employees, which was announced in October 2025. Six months ended June 30, 2026 Restructuring and other related charges were $5.7 million for the six months ended June 30, 2026, with $3.2 million related to the Company's voluntary buyout program for U.S. employees and $2.5 million associated with the International Plan, which consisted primarily of workforce reductions in Latin America. Three and six months ended June 30, 2025 Restructuring and other related charges were $3.5 million and $8.3 million for the three and six months ended June 30, 2025, respectively, primarily related to the wind-down of a joint venture that operated primarily in Poland and Africa as part of our International segment, as well as the commencement of the International Plan in Southern Europe. Operating income Three months ended June 30, 2026 vs. 2025 The decrease in operating income was primarily attributable to a $52.5 million decrease in revenues, net. Six months ended June 30, 2026 vs. 2025 The decrease in operating income was primarily attributable to a $65.6 million decrease in revenues, net, and a $20.7 million increase in technical and operating expenses. 34 Interest expense Three months ended June 30, 2026 vs 2025 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 Notes”) and the March 2026 issuance of additional 2032 Notes in the private exchange offer (the “Exchange Offer”) with respect to our outstanding 10.25% Senior Secured Notes due 2029 (the “2029 Notes”), partially offset by lower outstanding balances under our Term Loan A facility (the "Term Loan A Facility") under our credit agreement (the “Credit Agreement”) and our 4.25% Senior Notes due 2029 (the “Senior Notes”). Six months ended June 30, 2026 vs 2025 The decrease in interest expense was primarily due to the impact of lower outstanding balances under our Term Loan A Facility and the Senior Notes, partially offset by an increase in average interest rates associated with the 2032 Notes and the Exchange Offer with respect to our outstanding 2029 Notes. Interest income Three and six months ended June 30, 2026 vs 2025 The decrease in interest income was primarily attributable to lower average cash balances and lower interest rates for our money market fund accounts. Gain (loss) on extinguishment of debt, net Three and six months ended June 30, 2026 During the second quarter of 2026, we repaid the $80.0 million remaining balance under the Term Loan A Facility and terminated our revolving credit facility (the "Revolving Credit Facility"). In connection with the repayment, we recorded a charge of $3.1 million, comprised of the write-off of the remaining unamortized discount and deferred financing costs and additional expenses associated with the repayment and the termination of the Credit Agreement. Additionally, we redeemed all of our remaining outstanding 2029 Notes, totaling approximately $13.7 million in aggregate principal amount during the second quarter of 2026. The 2029 Notes were redeemed at a redemption price equal to 105.125% of the principal amount, resulting in a $0.7 million charge. Three and six months ended June 30, 2025 During the second quarter of 2025, we repurchased $99.1 million principal amount of our outstanding Senior Notes through open market repurchases, at a discount of $26.7 million, and retired the repurchased notes. We recorded a $25.8 million gain which reflects the discount, net of $0.9 million to write off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes. Miscellaneous, net Three months ended June 30, 2026 vs. 2025 The decrease in miscellaneous, net was primarily related to the impact of foreign currency fluctuations. Six months ended June 30, 2026 vs. 2025 The decrease in miscellaneous, net was primarily related to third-party fees of $16.7 million specifically attributable to the Exchange Offer and the impact of foreign currency fluctuations. Income tax expense (benefit) In general, we are required to use an estimated annual effective rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective rate is revised on a quarterly basis. Three months ended June 30, 2026 vs. 2025 For the three months ended June 30, 2026, income tax benefit was $4.7 million on a loss from operations before income taxes of $24.4 million, representing an effective rate of 19%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of state and local income tax expense, tax expense related to non-deductible compensation, and tax expense, including interest, related to an increase in uncertain tax positions, partially offset by a tax benefit from foreign operations and a tax benefit related to foreign-derived deduction eligible income. For the three months ended June 30, 2025, income tax expense was $16.1 million on income from operations before income taxes of $68.8 million, representing an effective tax rate of 23%. The variance from the federal statutory rate of 21% primarily consisted of state and local income tax expense. 35 Six months ended June 30, 2026 vs. 2025 For the six months ended June 30, 2026, income tax benefit was $11.4 million on a loss from operations before income taxes of $48.3 million, representing an effective rate of 24%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of state and local income tax expense, tax expense related to non-deductible compensation, and tax expense, including interest, related to an increase in uncertain tax positions, partially offset by a tax benefit from foreign operations and a tax benefit related to foreign-derived deduction eligible income. For the six months ended June 30, 2025, income tax expense was $31.0 million on income from operations before income taxes of $105.9 million, representing an effective tax rate of 29%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of state and local income tax expense, tax expense related to share-based compensation, tax expense for an increase in the valuation allowance for foreign taxes and tax expense related to non-deductible compensation. 36 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. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 Change 2026 2025 Change Revenues, net: Subscription $ 305,902 $ 320,359 (4.5) % $ 611,184 $ 633,732 (3.6) % Advertising 108,829 122,606 (11.2) 221,676 241,854 (8.3) Content licensing and other 55,659 83,888 (33.7) 108,217 137,574 (21.3) Total revenues, net 470,390 526,853 (10.7) 941,077 1,013,160 (7.1) Technical and operating expenses (excluding depreciation and amortization)(a) 255,266 250,579 1.9 501,344 482,302 3.9 Selling, general and administrative expenses(b) 157,347 154,109 2.1 293,262 290,372 1.0 Majority-owned equity investees AOI 3,195 4,174 (23.5) 6,762 9,777 (30.8) Segment adjusted operating income $ 60,972 $ 126,339 (51.7) % $ 153,233 $ 250,263 (38.8) % (a) Technical and operating expenses exclude cloud computing amortization (b) Selling, general and administrative expenses exclude equity-classified share-based compensation expenses, liability-classified share-based compensation expenses for non-employee directors and cloud computing amortization Revenues, net Three months ended June 30, 2026 vs. 2025 Subscription revenues decreased primarily due to a 16.6% decline in affiliate revenues, partially offset by a 6.3% 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. Revenues related to the Company's streaming services were $179.7 million and $169.0 million for the three months ended June 30, 2026 and 2025, respectively. Advertising revenues decreased primarily due to lower ratings and marketplace pricing as well as a now resolved system integration issue, partially offset by digital advertising growth. Content licensing and other revenues decreased primarily due to the timing and availability of deliveries in the period and the sale of our music catalog and additional revenues earned in connection with the production of Silo, a series originally produced by AMC Studios for a third party, that occurred in the second quarter of 2025. Six months ended June 30, 2026 vs. 2025 Subscription revenues decreased primarily due to a 16.3% decline in affiliate revenues, partially offset by a 8.4% 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. Revenues related to the Company's streaming services were $353.6 million and $326.1 million for the six months ended June 30, 2026 and 2025, respectively. Advertising revenues decreased primarily due to lower ratings and marketplace pricing as well as a now resolved system integration issue in the second quarter of 2026, partially offset by digital advertising growth. Content licensing and other revenues decreased primarily due to the timing and availability of deliveries in the period and the sale of our music catalog and additional revenues in connection with the production of Silo, a series originally produced by AMC Studios for a third party, that occurred in the second quarter of 2025. 37 Technical and operating expenses (excluding depreciation and amortization) Three months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher other direct programming costs, partially offset by lower program rights amortization. Six months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher other direct programming costs and higher program rights amortization. Selling, general and administrative expenses Three months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased primarily due to higher marketing expenses associated with increased media spend for the premiere season of The Audacity and an increase in corporate allocated employee related costs, partially offset by lower committed advertising spend with customers from contract renewals. Six months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased primarily due to higher marketing expenses associated with increased media spend for the premiere season of The Audacity, an increase in corporate allocated employee related costs and an increase in legal fees, partially offset by lower committed advertising spend with customers from contract renewals. Segment adjusted operating income Three and six months ended June 30, 2026 vs. 2025 The decrease in segment adjusted operating income was primarily attributable to lower content licensing and other sales, the continued revenue declines in our linear businesses, an increase in technical and operating expenses (excluding depreciation and amortization), and an increase in media spend. International The following table sets forth our International segment results for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 Change 2026 2025 Change Revenues, net: Subscription $ 46,612 $ 47,069 (1.0) % $ 92,974 $ 91,771 1.3 % Advertising 29,383 26,003 13.0 52,755 48,611 8.5 Content licensing and other 2,605 2,463 5.8 5,134 5,099 0.7 Total revenues, net 78,600 75,535 4.1 150,863 145,481 3.7 Technical and operating expenses (excluding depreciation and amortization) 33,894 32,777 3.4 71,755 67,902 5.7 Selling, general and administrative expenses(a) 30,347 28,021 8.3 59,312 52,991 11.9 Segment adjusted operating income $ 14,359 $ 14,737 (2.6) % $ 19,796 $ 24,588 (19.5) % (a) Selling, general and administrative expenses exclude equity-classified share-based compensation expenses and liability-classified share-based compensation expenses for non-employee directors. Revenues, net Three months ended June 30, 2026 vs. 2025 Subscription revenues decreased 1.0% primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa, partially offset by the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, subscription revenues decreased 3.3%. Advertising revenues increased 13.0% primarily due to the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, advertising revenues increased 11.1%. 38 Six months ended June 30, 2026 vs. 2025 Subscription revenues increased 1.3% primarily due to the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, subscription revenues decreased 4.3% primarily from the wind-down of a joint venture that operated primarily in Poland and Africa. Advertising revenues increased 8.5% primarily due to the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, advertising revenues increased 3.5%. Technical and operating expenses (excluding depreciation and amortization) Three months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased 3.4% due to higher program rights amortization driven by the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, technical and operating expenses (excluding depreciation and amortization) increased 0.4%. Six months ended June 30, 2026 vs. 2025 Technical and operating expenses (excluding depreciation and amortization) increased 5.7% due to higher program rights amortization driven by the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, technical and operating expenses (excluding depreciation and amortization) decreased 0.9%. Selling, general and administrative expenses Three months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased 8.3% primarily due to an increase in revenue share fees and commissions in the U.K. driven by the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels and the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, selling, general and administrative expenses increased 4.6%. Six months ended June 30, 2026 vs. 2025 Selling, general and administrative expenses increased 11.9% primarily due to the unfavorable impact of foreign currency translation, a decrease in costs allocable to the Domestic Operations segment and an increase in revenue share fees and commissions in the U.K. driven by the outperformance of advertising in the fourth quarter of 2025 that has since returned to normal levels. Excluding the impact of foreign currency translation, selling, general and administrative expenses increased 4.9%. Segment adjusted operating income Three and six months ended June 30, 2026 vs. 2025 Segment adjusted operating income decreased primarily due to lower subscription revenues and higher selling, general and administrative expenses, excluding the impact of foreign currency translation. Liquidity and Capital Resources 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. As of June 30, 2026, our cash and cash equivalents balance of $464.0 million included approximately $136.5 million held by foreign subsidiaries. Of this amount, approximately $22.5 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 expected repatriation amount has been accrued and we do not expect to incur any significant, additional taxes related to the remaining balance. Our primary source of cash is cash flow from operations. Sources of cash also may include, subject to market conditions, access to capital and credit markets. 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. We believe that a combination of cash-on-hand, cash generated from operating activities, availability under 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 39 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. Debt Transactions On February 23, 2026, we commenced the Exchange Offer and related consent solicitation (the “Consent Solicitation”) with respect to our outstanding 2029 Notes. Pursuant to the Exchange Offer, we offered to issue additional 2032 Notes in exchange for any and all of the $875 million aggregate principal amount of 2029 Notes held by eligible holders. In addition, pursuant to the Consent Solicitation, we solicited consents from eligible holders to amend certain of the covenants in the indenture governing the 2029 Notes. For 2029 Notes tendered and not validly withdrawn before 5:00 p.m., New York City time, on March 6, 2026 (the "Early Tender Time"), eligible holders received the “Total Consideration” of $1,065 in aggregate principal amount of 2032 Notes (including an early tender premium of $50 in principal amount of 2032 Notes) for each $1,000 principal amount of 2029 Notes validly tendered and accepted for exchange by the Company. For 2029 Notes tendered after the Early Tender Time and on or before 5:00 p.m., New York City time, on March 23, 2026 (the “Expiration Time”), eligible holders received the “Exchange Consideration” of $1,015 in aggregate principal amount of 2032 Notes for each $1,000 principal amount of 2029 Notes validly tendered and accepted for exchange by the Company. The Total Consideration and Exchange Consideration, as applicable, were reduced by an amount equal to the result of (x) the aggregate amount of accrued and unpaid interest due on the 2032 Notes issued to eligible holders from and including the last interest payment date for the original 2032 Notes to but not including the applicable settlement date less (y) the aggregate amount of accrued and unpaid interest due on the 2029 Notes validly tendered and accepted by the Company from and including the last interest payment date for such 2029 Notes to but not including the applicable settlement date. On March 13, 2026, we completed the early settlement of the Exchange Offer. As of the Early Tender Time, approximately $830.6 million in aggregate principal amount of outstanding 2029 Notes had been validly tendered and not validly withdrawn. In connection with early settlement of the Exchange Offer, we issued approximately $884 million in aggregate principal amount of the 2032 Notes. On March 25, 2026, we completed the final settlement of the Exchange Offer. As of the Expiration Time, an additional approximately $30.7 million in aggregate principal amount of 2029 Notes was validly tendered in the Exchange Offer. In connection with the final settlement of the Exchange Offer, we issued approximately $31.1 million in aggregate principal amount of 2032 Notes. All 2029 Notes exchanged were cancelled. On April 6, 2026, we redeemed all of our remaining outstanding 2029 Notes, totaling approximately $13.7 million in aggregate principal amount. The 2029 Notes were redeemed at a redemption price equal to 105.125% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the redemption date. On May 12, 2026, pursuant to the Credit Agreement, we repaid the $80.0 million remaining balance under the Term Loan A Facility and terminated the Revolving Credit Facility. We continue to evaluate 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. We were in compliance with all of our debt covenants as of June 30, 2026. 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. For information relating to our outstanding debt obligations, refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Debt Financing Agreements" of our 2025 Form 10-K. 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. Customer Chapter 11 Bankruptcy On June 30, 2026 one customer filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The proposed plan contemplates a significant deleveraging of the customer's balance sheet while generally providing for the payment of trade and other general unsecured claims. Concurrently with the Chapter 11 filing, the customer filed a motion requesting authority to pay prepetition ordinary-course claims with respect to which the we are named as a vendor. The 40 bankruptcy court granted the motion on July 23, 2026. Based on the relief granted and our historical collection experience with the customer, we expect to fully recover our outstanding receivables due from the customer and continue business with the customer in the ordinary course. We do not currently expect the customer's Chapter 11 proceedings to have a material adverse effect on our liquidity. Stock Repurchase Program Our Board of Directors has authorized a program to repurchase up to $1.5 billion of our outstanding Class A Common Stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. On May 8, 2026, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Citibank, N.A. (“Citibank”) to repurchase $30.0 million of our outstanding Class A Common Stock. We are conducting the accelerated share repurchase as part of our Stock Repurchase Program. Under the terms of the ASR Agreement, on May 11, 2026, we made an initial payment to Citibank of $30.0 million, and received an initial delivery of 2,727,272 shares of Class A Common Stock representing 80% of the total shares expected to be repurchased under the ASR Agreement (determined based on the closing price of the Class A Common Stock of $8.80 on May 8, 2026). The final number of shares to be repurchased will be based on the volume-weighted average price of the Class A Common Stock on specified dates during the term of the transaction, less a discount, and subject to customary adjustments pursuant to the terms and conditions of the ASR Agreement. At settlement, if the final number of shares to be repurchased is greater than the initial share delivery, Citibank will deliver additional shares of Class A Common Stock to us, or, if the final number of shares to be repurchased is less than the initial share delivery, we will be required to make a payment to Citibank, which at our option may be in the form of cash or shares of Class A Common Stock. The final settlement of the transaction is expected to occur in the fourth quarter of 2026, but may be completed earlier at Citibank’s election. As of June 30, 2026, we had $87.4 million of authorization remaining for repurchase under the Stock Repurchase Program. 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: (In thousands) Six Months Ended June 30, 2026 2025 Net cash provided by operating activities $ 124,659 $ 211,596 Net cash used in investing activities (17,311) (22,360) Net cash used in financing activities (138,245) (126,230) Net increase (decrease) in cash and cash equivalents from operations $ (30,897) $ 63,006 Operating Activities Net cash provided by operating activities for the six months ended June 30, 2026 and 2025 amounted to $124.7 million and $211.6 million, respectively. For the six months ended June 30, 2026, net cash provided by operating activities primarily resulted from $469.8 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $343.1 million. Changes in all other assets and liabilities resulted in a net cash outflow of $2.0 million. For the six months ended June 30, 2025, net cash provided by operating activities primarily resulted from $510.7 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $331.5 million. Changes in all other assets and liabilities resulted in a net cash inflow of $32.4 million. Investing Activities Net cash used in investing activities for the six months ended June 30, 2026 and 2025 amounted to $17.3 million and $22.4 million, respectively, and primarily consisted of capital expenditures. Financing Activities Net cash used in financing activities for the six months ended June 30, 2026 and 2025 amounted to $138.2 million and $126.2 million, respectively. 41 For the six months ended June 30, 2026, net cash used in financing activities primarily related to payments on the Term Loan A Facility of $82.9 million, the purchase of treasury stock for $30.0 million, the redemption of our remaining 2029 Notes for $14.4 million, taxes paid in lieu of shares issued for equity-based compensation of $7.1 million and payments for financing costs associated with the consent solicitation to amend the indenture governing our 2032 Notes of $2.0 million. For the six months ended June 30, 2025, net cash used in financing activities primarily related to open-market repurchases of our Senior Notes of $72.4 million, principal payments on the Term Loan A Facility of $36.3 million and the purchase of treasury stock for $10.3 million. Contractual Obligations As of June 30, 2026, our contractual obligations not reflected on the condensed consolidated balance sheets increased $91.3 million, as compared to December 31, 2025, to $590.3 million. The increase was primarily related to commitments for marketing and third-party service contracts. Supplemental Guarantor Financial Information The following is a description of the terms and conditions of the guarantees with respect to the notes outstanding as of June 30, 2026 for which AMC Global Media is the issuer. Note Guarantees Debt of AMC Global Media as of June 30, 2026 included $276.7 million of 4.25% Senior Notes due 2029, $143.8 million of 4.25% Convertible Senior Notes due 2029, and $1,315.1 million of 10.50% Senior Secured Notes due 2032 (collectively, the “notes”). The notes were issued by AMC Global Media and are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of AMC Global Media's 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, 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 Global Media or another Guarantor Subsidiary). Foreign subsidiaries of AMC Global Media do not and will not guarantee the notes. 42 The following tables present the summarized financial information specified in Rule 1-02(bb)(1) of Regulation S-X for AMC Global Media 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) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Parent Company Guarantor Subsidiaries Parent Company Guarantor Subsidiaries Revenues $ — $ 819,469 $ — $ 890,226 Operating expenses — 781,580 — 764,865 Operating income $ — $ 37,889 $ — $ 125,361 Income (loss) before income taxes $ (56,398) $ 33,683 $ 92,949 $ 156,500 Net income (loss) (40,813) 30,874 68,338 152,838 Balance Sheet June 30, 2026 December 31, 2025 (In thousands) Parent Company Guarantor Subsidiaries Parent Company Guarantor Subsidiaries Assets Amounts due from subsidiaries $ — $ 43,993 $ — $ 90,643 Current assets 62,049 883,521 19,639 1,001,691 Non-current assets 2,803,976 2,577,019 2,987,716 2,690,262 Liabilities and equity: Amounts due to subsidiaries $ 39,900 $ 9,540 $ 39,155 $ 3,880 Current liabilities 113,663 520,020 123,550 548,661 Non-current liabilities 1,841,138 209,789 1,901,934 230,969 Critical Accounting Policies and Estimates We describe our significant accounting policies in Note 2 to the Company's Consolidated Financial Statements included in our 2025 Form 10-K. There have been no significant changes in our significant accounting policies since December 31, 2025. We discuss our critical accounting estimates in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our 2025 Form 10-K. There have been no significant changes in our critical accounting estimates since December 31, 2025. 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 (including equity-classified share-based compensation expenses or benefit and liability-classified share-based compensation expenses or benefit for non-employee director stock units), 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. Because it is based upon operating income (loss), AOI also excludes interest expense (including cash interest expense) and other non-operating income and expense items. The Company believes that the exclusion of share-based compensation expenses or 43 benefit allows management and investors to better track the performance of the various operating units of the business without regard to the period-to-period effects of share-based compensation awards, including the changes in fair value of liability-classified share-based compensation awards that will be cash settled. Beginning in June 2026, non-employee directors receive a portion of their compensation in director stock units that will be settled in cash. These liability classified share-based compensation awards are included in the share-based compensation adjustment to operating income (loss) to allow for comparability between periods without regard to the period-to-period effects of share-based compensation awards (including the changes in fair value of those awards from period to period). 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: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Operating income $ 15,854 $ 64,469 $ 47,115 $ 128,666 Share-based compensation expenses (1) 6,729 8,043 12,826 13,800 Depreciation and amortization 16,820 26,446 38,243 47,372 Restructuring and other related charges 1,342 3,529 5,680 8,318 Cloud computing amortization 2,128 2,725 4,416 5,938 Majority owned equity investees AOI 3,195 4,174 6,762 9,777 Adjusted operating income $ 46,068 $ 109,386 $ 115,042 $ 213,871 (1) Includes $1.0 million for the three and six months ended June 30, 2026, associated with cash-settled director stock units granted to non-employee directors. 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: Six Months Ended June 30, (In thousands) 2026 2025 Net cash provided by operating activities $ 124,659 $ 211,596 Less: capital expenditures (16,577) (21,670) Free cash flow $ 108,082 $ 189,926 Supplemental Cash Flow Information Six Months Ended June 30, (In thousands) 2026 2025 Restructuring initiatives $ (19,729) $ (7,920) Distributions to noncontrolling interests — — 44