Angel Studios, Inc. Class A

Good afternoon. At this time, I'd like to welcome everyone to ANGEL's Q3 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. If anyone should require operator assistance, please press star 0. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Jeanette Masters, Investor Relations. You may begin your conference.

Hello, everyone, and welcome to Angel's third quarter 2025 earnings call. Joining me are Angel's co-founder and CEO, Neil Harmon, and Angel's chief financial officer, Scott Klossner. Our third quarter earnings press release is available on our investor relations website at angx.com, where we also encourage you to sign up for our email alerts. Neil and Scott will make about 30 minutes of opening remarks before we turn over the call to questions from our sales site analysts, as well as questions pre-submitted by our guild members. Thank you all for joining us. Let me pass the call over to Neil.

Thank you, Jeanette, and good morning, everyone. It's an honor to speak with you today on our first Journeys Call as a publicly traded company. Scott and I are delighted to that we're getting started with a great set of third quarter results where our most important major success, our guild membership, is 1.6 million, up more than 500% year over year and up 19% sequentially. Also, today we're announcing acquisitions of the highest performing franchises on the Angel platform and a successful AI-driven discovery technology in the Angel app, which has positively impacted watch times by 12%. These watch times are the most significant driver of Angel Guild retention. But more on all of this shortly. This moment marks the culmination of a journey years in the making. The successful completion of our listing resulting in Angel's debut on the New York Stock Exchange. It reflects the strength of this community. Our mission to tell values-driven stories and the power of our unique audience-first model. As Jeanette mentioned, I'm joined today by Scott Klausner, who brings a wealth of experience in his 35-year career as an executive across capital markets, M&A, and financial leadership at multiple public companies. And he's been instrumental in preparing Angel for life as a public company. I'm grateful for his partnership and steady hand. On behalf of our leadership team, I also wanted to express sincere gratitude to everyone who helped us get here, our guild members, our early supporters, our investors, and our entire team. Your hard work, faith, and dedication have made today and every milestone possible. And this is just the beginning. About two months ago, the Angel team was welcomed by the New York Stock Exchange, marking the milestone of our public debut. It feels like the starting line. Don't underestimate the importance of this milestone in our journey. It elevates the Angel brand, increasing our reach. It allows us to grow the Angel Guild more rapidly, our recurring revenue business. It supports engagement of the Angel Guild, which is our differentiating edge in the over $100 billion per year global TV and streaming market that is growing in excess of 20% annually. Angel was founded on a fundamental belief that that telling values-driven stories will inspire families and communities around the world. Our company is a response to an increasingly out-of-touch Hollywood studio model. At Angel, 1.6 million members of the Angel Guild, not remote Hollywood gatekeepers, decide what films and television series get produced and distributed in theaters and on the Angel platform, which inspires mainstream audiences. Our guild members put their money where their eyes, heart, and values are. The Angel Guild details the kind of programming they crave and acts as virtual co-producers on every project. This fast-growing community is at the heart of everything we do. As of the end of third quarter, our guild is 1.6 million paying members and continues to grow at an exciting pace. But for those new to the Angel story, it's worth highlighting just how significant this growth has been. because paid marketing for the guild launched in the second quarter of 2023. And by the end of 2024, membership had reached just shy of 550,000 and accounted for just over one third of total revenue. Today, just 11 months later, members now contribute to 77% of our revenue, underscoring the power and the scalability of this community driven model. The Angel Guild does three things that define our business model. Votes to select films and TV series. Second, rallies and theaters to support theatrical releases and spark cultural movements. And third, funds, in part, future films and TV shows through their monthly memberships. Together, they are helping us reorient the Hollywood studio model to one that is audience-centric and mainstream. In our model, we don't guess what audience want to pay to see. They tell Angel and filmmakers what they want to see and back it up with their dollars. Evan Shapiro from the Media Odyssey podcast believes that this is the future of Hollywood and also that Angel is pioneering it. In less than two years, we've found 1.6 million people who agree with us, and we believe that this represents only a fraction of the total audience that can become part of our Angel Guild. I'll tell you what, we cannot wait to welcome all of you. Our approach is confirmed by independent data. The average Rotten Tomatoes audience score for Angel theatrical releases is 93%, significantly above those of any major distributor or streaming platform globally. Allowing audiences to decide which films and television series can come onto our platform is going to be massively disruptive. Every Guild member... also makes a pledge, what we call the pledge to amplify light, which says, when I vote, I pledge to help choose excellent entertainment that is true, honest, noble, just, authentic, lovely, or admirable. That pledge is more than words. It's our reason for being. It's how a fast-growing global community aligns around a shared mission. It's what unites us. It's why we started this company. For shareholders, the Guild isn't just a curation machine. It's a recurring revenue engine. Membership fees provide consistent, recurring income that helps fund new projects, support filmmakers, and build long-term shareholder value. There is power behind a story that resonates. I've met countless billionaires who, after decades of building businesses, decide it's now time to make a movie. But they understand that film is more than entertainment. It's culture. It's legacy. And this desire to leave a mark isn't unique to billionaires. It's universal. The Angel Guild makes that possible for regular people. We partner with those who share the same passion to create stories that inspire and endure. And Guild members get to interact with filmmakers and they get to see films be produced and and come to the silver screen. And one of the most rewarding things for me to see is how fast the angel brand has grown. I can wear an angel T-shirt in an airport anywhere in the world, and someone will stop and thank us for what we are doing. That recognition isn't the result of traditional marketing spend. It's the result of a movement that aligns around values-driven, family-friendly storytelling that's making our world a little bit better place. This quarter was a foundational one. While it followed a naturally lower theatrical release period as the back to school season concluded, there was a strong demonstration of the stability and scalability of our recurring guild revenue and the resilience of our community model. Revenue reflected the smaller slate of new releases, but the underlying metrics that matter most, engagement, retention, and guild membership continue to grow. That's the key story for investors. Our business isn't solely defined by the timing of film releases or the seasonality of entertainment, but by the enduring relationships we've facilitated by building this technology to connect audiences and filmmakers. Every new Guild member contributes to a growing base of high-margin recurring revenue that compounds over time, and as the Guild grows, their joint decisions become smarter, smarter at picking the winners from mainstream audiences. We call it audience intelligence. While Sound of Freedom showcased the potential of the model for scale, the Guild itself has now grown to more than twice the size of the revenue of our previously biggest hits. The Guild is an engaged, vibrant community that continues to expand and strengthen our long-term foundation. Looking ahead, we have a strong theatrical lineup that we expect will meaningfully contribute to both top-line growth and Guild expansion in the fourth quarter. Last month, we announced our first significant strategic development that reflects our commitment to long-term intellectual property ownership and brand defining storytelling. This was the acquisition of the David franchise in partnership with 2521 Entertainment. David is an epic animated film and TV series based on the timeless story of David's journey from humble shepherd to king. It tests the limits of faith, courage and love culminating in a battle for the soul of a kingdom it's angel's most highly anticipated theatrical release and it's the largest crowdfunded film in history it's the kind of film that makes our work at angel totally worth doing this animated epic features original music by acclaimed musicians phil wickham mary masika and lauren daigle and is set to premiere in theaters on december 19th 2025 just in time for Christmas for all our families. I'm thrilled to share that David has already earned nearly three million in theatrical pre-sales in just three weeks, the highest in Angels history, outpacing even King of Kings and Sound of Freedom. Also, this is actually the highest ever reported for an animated theatrical musical in such a timeframe this far out from the movie's release. And perhaps our greatest achievement at least in our home, is getting my children to sing something other than K-pop Demon Hunters. They've got David now, the David soundtrack playing on repeat, and it's been part of our strategic release to release all the songs for David, which are available for streaming right now. As previously mentioned, this morning we announced the definitive agreements to acquire our three highest performing series on the Angel platform, Tuttle Twins, Homestead, and the Winged Feather Saga. Homestead is a premium post apocalyptic thriller film and television series. The film starring no McDonough and season one of the series draw audiences into a fractured America struggling to survive after a nuclear blast. Delivering suspense with a deeply human story of faith, family and resilience. We are releasing additional episodes of season one shortly and will soon begin production on season two. Homestead differentiates itself with strong production value, high rewatchability, and measurable pull to the Angel Guild for both acquisition and retention. It stands as the strongest member acquisition title in the Angel Library. In fact, Homestead is growing faster than Season 1 of our previously highest performing series based on the New Testament. Earlier this month, Season 4 of the hit animated television series, Tuttle Twins, premiered, and My Little Boys premiered. It made me very aware of it. The series takes families on an adventure that teaches liberty and virtue through laughter and imagination. Tuttle Twins is the most watched TV series on Angel. And we're very excited. Season 3 of The Winged Feather Saga, based on Andrew Peterson's best-selling fantasy series, is also now streaming exclusively on Angel. And my boys have asked me to watch it tonight with them. It remains one of the most successful crowdfunded family animated series ever produced. The important takeaway from the acquisitions I just touched on comes back to the Guild. Strategically, these three acquisitions give Angel intellectual property and highly successful franchises, compounding the long-term value of our library and increasing the retention numbers of the Guild. Whichever the genre, whether fiction or nonfiction, film or television series, Angel delivers the values-driven entertainment that our guild tells us they're looking for in theaters and on the Angel platform. And in addition to David and these three other series, we have a diverse lineup of coming releases. I Was a Stranger is a powerful story of resilience and hope set against the backdrop of the Syrian civil war. It has been featured in more than 50 film festivals worldwide and received the Amnesty International Film Award. It's a beautiful film and it's set to debut in theaters on January 9th, 2026. Then, on February 6th, we plan to release Solo Meal, our first romantic comedy starring the incredibly talented Kevin James. We're also preparing to launch season 18 of Dry Bar Comedy, our flagship Funny for Everyone franchise, with more than six billion views. Praised by Jay Leno and featuring specials such as Adam Carolla Comes Cleaner, Drive Our Comedy has a library of 400 hours of family-friendly entertainment, much of which is available exclusively on Angel. Wayfinder's highly successful pilot episode sparked tremendous excitement within the Angel Guild, and we're eagerly anticipating its Season 1 debut on the Angel app on December 16, 2025. The series exemplifies exceptional storytelling that found its home at Angel after creative differences with a major streamer, proof that great stories thrive where filmmakers are free to stay true to their original vision. This momentum segues perfectly into how the Guild serves as the key driver of our recurring revenue stream, while taking a moment to expand on additional revenue lines. We currently have four primary revenue streams, each one reinforcing the other. Angel Guild memberships, theatrical releases, licensing and other revenue. Angel Guild memberships are monthly and annual membership fees that provide a growing base of recurring revenue. Both basic and premium tiers include voting rights and early access to releases. With premium offering, complimentary theatrical tickets and merchandise discount. We have recently introduced basic plus without ads. Theatrical releases bring revenue from releasing our original films through direct relationships with exhibitor partners. Every ticket sold generates a share of box office receipts with international distribution typically routed through local partners. Theatrical's purpose at Angel is to give the Guild a moment to celebrate and to attract new filmmaker partners. As theatrical releases help retention. Third, licensing our films and TV shows to major platforms like Amazon, Apple, and Netflix. Longer term, we intend to extend those rights into – we intend to extend our rights into derivative experiences such as video games, live productions, and themed attractions. And fourth, other revenue is a small catch-all for merchandise and physical media sales in our direct-to-consumer online store as well as wholesale partnerships with retailers. This diversified model reflects how the Angel Guild powers not only our creative pipeline, but also our economic engine. As our membership base grows, each of these categories benefits from higher engagement, cross-promotion, and cross-pollination, ultimately creating a reinforcing cycle of growth, loyalty, and recurring revenue. While the timing of theatrical releases and other factors may create quarter to quarter variability, as I noted earlier, our long-term focus and strength is clear. Base hits and blockbusters both help Angel expand and strengthen the Angel Guild. Every investment we make in our technology is designed to deepen the relationship between artist and community. We're innovating ways for members to interact directly with filmmakers, vote on projects, and participate in the success of stories they crave. That connection will allow Angel to scale both sustainably and profitably in the years ahead. During third quarter, Angel expanded our library across key platforms, including Samsung, Amazon, and Apple, which, by the way, reduced in-app purchase fees from 30% to 15%, saving over $3.5 million annually. Angel also strengthened partnered relationships with Roku, LG, and others with improved revenue terms and record TV performance. Approximately 30% of Guild membership sign-ups come from these channels. On web and mobile, key optimizations boosted engagement and revenue. Redesigns to onboarding, sign-up flow, and pricing increased Guild sign-ups by 9% and revenue by 6%. Mobile enhancements included over-the-air updates and flexible checkout options, and they continue to improve the overall experience. Our simplified submission process and automated upflows enabled a record 150 concurrent film submissions by filmmakers. New membership plans and parental controls expand options and personalized experiences for our audience. These initiatives reinforce Angel's commitment to innovation and delivering exceptional experiences to viewers and filmmakers alike. Finally, and this is huge, our teams are already seeing breakthroughs from adopting AI. We ran a sophisticated A-B test. Traditional discovery is the control. AI-driven discovery is the experiment. The result? The AI version boosted average watch time for guild members by a full 12%. And remember, watch time is the most significant factor to increase retention. To summarize, Angel's value isn't just measured by quarterly box office results, but by the strength, growth, and recurring nature of the guild that powers them. To our early supporters, team, filmmakers, and the entire guild, thank you for your courage, creativity, engagement, and faith. You've proven that when people unite around a mission to tell values-driven stories, we can transform an industry. And maybe, just maybe, we can make the world a better place for our children. With that, I'll turn over the time to Scott to walk through our financial results in more detail. Thanks, Neil.