AMC Global Media Inc.

Previous wording

•the highly competitive nature of the cable, telecommunications, streaming and programming industries;

Current wording

•the highly competitive nature of the cable, telecommunications, streaming and programming industries, including continued consolidation among competitors and distributors;

Previous wording

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.

Current wording

Consolidated Results of Operations. This section provides an analysis of our results of operations for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International.

Previous wording

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.

Current wording

Liquidity and Capital Resources. This section provides a discussion of our financial condition as of September 30, 2026, as well as an analysis of our cash flows for the nine months ended September 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 September 30, 2026 as compared to December 31, 2025.

Previous wording

•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.

Current wording

•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, 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 Global Media Broadcasting & Technology, our technical services business, which primarily services the programming networks. On August 26, 2026, we divested our ALLBLK streaming business (see Note 4 for additional information relating to the sale of our ALLBLK streaming business).

Previous wording

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.

Current wording

On July 30, 2026, we announced that we had entered into a license agreement with Netflix ("The Walking Dead Universe Licensing Agreement") 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 licenses for U.S. streaming rights to other series in The Walking Dead Universe begin at various times in 2026.

Previous wording

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.

Current wording

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 $450 million.

Previous wording

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.

Current wording

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 nine months ended September 30, 2026 and 2025.

Previous wording

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.

Current wording

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 nine months ended September 30, 2026 and 2025. For the nine months ended September 30, 2025, $4.7 million, of program write-offs were recorded to restructuring and other related charges, primarily related to the wind-down of a joint venture that operated primarily in Poland and Africa.

Previous wording

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.

Current wording

Subscription revenues decreased 2.5% 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 4.2% in our International segment primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa, and the unfavorable 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.

Previous wording

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.

Current wording

Advertising revenues decreased 6.9% in our Domestic Operations segment primarily due to lower marketplace pricing, partially offset by digital advertising growth. Advertising revenues decreased 6.3% in our International segment primarily due to a decline in the U.K. advertising market, partially offset by digital advertising growth. We generally expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms.

Previous wording

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.

Current wording

Subscription revenues decreased 3.2% 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 0.6% in our International segment primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa, mostly offset by the favorable impact of foreign currency translation.

Previous wording

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

Current wording

Advertising revenues decreased 7.9% 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 3.4% in our International segment primarily due to the favorable impact of foreign currency translation.

Previous wording

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.

Current wording

Technical and operating expenses (excluding depreciation and amortization) increased 9.8% in our Domestic Operations segment primarily due to higher participation and residual costs associated with new licensing deals, including The Walking Dead Universe Licensing Agreement, as well as higher other direct programming costs. Technical and operating expenses (excluding depreciation and amortization) decreased 0.3% in our International segment due to the favorable impact of foreign currency translation.

Previous wording

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.

Current wording

Technical and operating expenses (excluding depreciation and amortization) increased 6.0% in our Domestic Operations segment primarily due to higher participation and residual costs associated with new licensing deals, including The Walking Dead Universe Licensing Agreement, as well as higher other direct programming costs and higher program rights amortization. Technical and operating expenses (excluding depreciation and amortization) increased 3.7% in our International segment due to the unfavorable impact of foreign currency translation.

Previous wording

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 Audacityand 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.

Current wording

Selling, general and administrative expenses increased 1.7% in our Domestic Operations segment primarily due to higher media spend associated with The Audacity, The Vampire Lestatand The Walking Dead: Dead Cityand an increase in corporate allocated costs, partially offset by lower committed advertising spend with customers from contract renewals. Selling, general and administrative expenses increased 4.7% in our International segment primarily due to the unfavorable impact of foreign currency translation.

Previous wording

Restructuring and other related charges were$5.7 millionfor 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.

Current wording

Restructuring and other related charges were$7.9 millionfor the nine months ended September 30, 2026, with $3.2 million related to the Company's voluntary buyout program for U.S. employees, which was announced in October 2025, $2.6 million associated with the International Plan, which consisted primarily of workforce reductions in Latin America, and $2.1 million related to the sale of our ALLBLK streaming business.

Previous wording

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 thewind-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.

Current wording

Restructuring and other related charges were $4.5 million and $12.8 million for the three and nine months ended September 30, 2025, respectively, primarily related to thewind-down of a joint venture that operated primarily in Poland and Africa as part of our International segment, as well as the expansion of the International Plan in Southern Europe and Argentina. Additionally, in the third quarter of 2025, we implemented organizational changes in our Domestic Operations segment designed to create an enhanced offering that was intended to maximize the potential of our We TV and ALLBLK brands.

Previous wording

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.

Current wording

The decrease in operating income was primarily attributable to the $81.3 million of impairment and other charges in the third quarter of 2026, a decrease in revenues, net of $61.3 million, and an increase in technical and operating expenses of $43.4 million.

Previous wording

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”).

Current wording

The decrease in interest expense was primarily due to the impact of 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"), partially offset by 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”).

Previous wording

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.

Current wording

During the third quarter of 2025, we completed a cash tender offer to repurchase $600.0 million of our Senior Notes at a discount of $111.0 million and retired the tendered notes. The discount, net of a $5.2 million write-off of unamortized discount and deferred financing costs associated with the Senior Notes, and $1.7 million in additional expenses associated with the tender offer, was recognized as a gain on extinguishment of debt. Subsequent to the cash tender offer, we repurchased $9.2 million principal amount of our Senior Notes through open market repurchases, at a discount of $1.5 million, and retired the repurchased notes. We recorded a $1.4 million gain which reflects the discount, net of $0.1 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes. During the second quarter of 2025, we repurchased $99.1 million principal amount of our 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.

Previous wording

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.

Current wording

For the three months ended September 30, 2026, income tax benefit was $36.7 million on a loss from operations before income taxes of $82.7 million, representing an effective rate of 44%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense and (ii) tax expense related to non-deductible compensation, partially offset by (iii) a tax benefit related to foreign-derived deduction eligible income.

Previous wording

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.

Current wording

For the nine months ended September 30, 2026, income tax benefit was $48.1 million on a loss from operations before income taxes of $131.0 million, representing an effective rate of 37%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense and (ii) tax expense related to non-deductible compensation, partially offset by (iii) a tax benefit related to foreign-derived deduction eligible income.

Previous wording

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.

Current wording

For the nine months ended September 30, 2025, income tax expense was $73.8 million on income from operations before income taxes of $228.7 million, representing an effective tax rate of 32%. Items resulting in variances from the federal statutory rate of 21% primarily consisted of (i) state and local income tax expense, (ii) tax expense for an increase in the valuation allowance for foreign taxes, (iii) tax expense related to non-deductible compensation, (iv) tax expense, including interest, related to an increase in uncertain tax positions, and (v) tax expense related to the OBBBA discrete impacts to deferred tax assets and liabilities, partially offset by (vi) a tax benefit from foreign operations.

Previous wording

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.

Current wording

Subscription revenues decreased primarily due to a 10.8% decline in affiliate revenues, partially offset by a 4.3% increase in streaming revenues. Excluding revenues, net from the ALLBLK streaming business in the three months ended September 30, 2026 and 2025, streaming revenues increased 6.7%. 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 $181.4 million and $173.9 million for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

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.

Current wording

Subscription revenues decreased primarily due to a 14.5% decline in affiliate revenues, partially offset by a 7.0% increase in streaming revenues. Excluding revenues, net from the ALLBLK streaming business in the nine months ended September 30, 2026 and 2025, streaming revenues increased 8.4%. 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 $535.0 million and $500.0 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher other direct programming costs and higher program rights amortization.

Current wording

Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher participation and residual costs associated with new licensing deals, including The Walking Dead Universe Licensing Agreement, as well as higher other direct programming costs and higher program rights amortization.

Previous wording

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.

Current wording

Selling, general and administrative expenses increased primarily due to higher media spend associated with The Vampire Lestat and The Walking Dead: Dead City and an increase in corporate allocated costs, partially offset by a decrease in legal fees.

Previous wording

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.

Current wording

The decrease in segment adjusted operating income was primarily attributable to 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.

Previous wording

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.

Current wording

Subscription revenues decreased 4.2% primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa and by the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, subscription revenues decreased 3.1%.

Previous wording

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%.

Current wording

Subscription revenues decreased 0.6% primarily due to the wind-down of a joint venture that operated primarily in Poland and Africa, mostly offset by the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, subscription revenues decreased 3.9%.

Previous wording

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%.

Current wording

Advertising revenues increased 3.4% primarily due to the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, advertising revenues increased 0.4%.

Previous wording

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%.

Current wording

Technical and operating expenses (excluding depreciation and amortization) decreased 0.3% due to the favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, technical and operating expenses (excluding depreciation and amortization) remained constant.

Previous wording

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%.

Current wording

Technical and operating expenses (excluding depreciation and amortization) increased 3.7% due the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, technical and operating expenses (excluding depreciation and amortization) decreased 0.6%.

Previous wording

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%.

Current wording

Selling, general and administrative expenses increased 4.7% primarily due to the unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, selling, general and administrative expenses increased 0.4%.

Previous wording

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.

Current wording

Segment adjusted operating income decreased primarily due to lower subscription revenues, excluding the impact of foreign currency translation.

Previous wording

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.

Current wording

During the three months ended September 30, 2026, $13.9 million of cash and cash equivalents, previously held by foreign subsidiaries, was repatriated to the United States. As of September 30, 2026, our cash and cash equivalents balance of $440.2 million included approximately $117.7 million held by foreign subsidiaries. Of this amount, approximately $8.6 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the repatriated amount, as well as the expected remaining amount to be repatriated, has been accrued for. We do not expect to incur any significant, additional taxes related to the remaining balance.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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 conducted 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 repurchased was 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. In October 2026, the Company finalized the transaction and received an additional 90,616 shares of Class A Common Stock. The average price per share for all 2,817,888 shares of Class A Common Stock repurchased as part of the ASR Agreement was $10.65 per share.

Previous wording

As of June 30, 2026, we had$87.4 million of authorization remaining for repurchase under the Stock Repurchase Program.

Current wording

As of September 30, 2026, we had $87.4 million of authorization remaining for repurchase under the Stock Repurchase Program.

Previous wording

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.

Current wording

For the nine months ended September 30, 2025, net cash provided by operating activities primarily resulted from $768.9 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 $569.2 million. Changes in all other assets and liabilities resulted in a net cash inflow of $56.7 million.