Angel Studios stock is a buy, this analyst says

Roth Capital Markets analyst Eric Handler initiated coverage of Angel Studios (Angel Studios Stock Quote, Chart, News, Analysts, Financials NYSE:ANGX) with a “Buy” rating and a $9.00 price target, citing what he sees as an attractive emerging growth media platform focused on values-driven content for a large and underserved audience.

“We view Angel Studios as an attractive, emerging growth media platform,” Handler said. “The company’s focus on values-driven content taps into a sizable and underserved market. A unique business model has also been created that empowers members with the ability to approve all content while maintaining an asset-light approach to content acquisition through shared profit participation.”

Angel Studios is a U.S.-based film and television studio headquartered in Provo, Utah, that produces and distributes family-friendly and values-oriented content using a crowdfunding-driven model. Rather than owning content outright, Angel relies on shared profit participation and community approval through its Angel Guild membership, which Handler believes limits capital intensity while aligning audience demand with content creation.

He projects Angel Guild membership and total company revenue to scale at a compound annual growth rate above 30% over the next three years, reaching approximately 4.3 million members and more than $700-million in revenue by the end of 2028. He estimates membership will increase at a 32% CAGR, supported by what he describes as a largely recurring revenue stream that grows in tandem.

“Although heavy (but high ROI) marketing spending to drive membership growth will likely result in ongoing adjusted EBITDA losses, a greater critical mass and a steadily expanding number of theatrical movie releases should help raise awareness of the Angel brand and steadily reduce the adjusted EBITDA losses,” Handler said. He expects the company to reach adjusted EBITDA breakeven in late 2028 or 2029.

Handler argues that Angel’s positioning extends well beyond traditional faith-based programming. He defines the company’s focus as “values-driven content,” encompassing genres such as drama, family, fantasy, comedy, sports, documentaries and historical storytelling. Citing a HarrisX survey showing that 77% of U.S. respondents identify as spiritual, religious or a person of faith, Handler estimates Angel’s total addressable market at 63 million to 89 million U.S. households, based on connected-TV penetration and Netflix’s estimated U.S. subscriber base.

The Angel streaming service has surpassed 1.6 million Guild members within two years of launch, and the app has been installed on more than 100 million devices, including approximately 30 million new device installations in the third quarter of fiscal 2025, following expanded distribution partnerships with Samsung, Amazon, Apple, Roku and LG. The company currently offers three membership tiers, including a recently launched ad-supported option, with international expansion viewed as a longer-term opportunity once U.S. profitability is achieved.

Handler also highlights Angel’s use of theatrical releases as a customer acquisition and brand-building tool. He expects the company to distribute seven to eight wide theatrical releases in 2026, progressing toward roughly 12 releases annually over the longer term.

Financially, Handler forecasts revenue growth from $309.3-million in fiscal 2025 to $430.2-million in fiscal 2026, with Adjusted EBITDA losses of $94.8-million in 2025 expected to narrow materially in subsequent years. He notes that Angel exited the third quarter of fiscal 2025 with $63-million in cash, $55-million in debt, access to a revolving credit facility with $60-million remaining, and a $150-million equity ATM, which he believes should provide sufficient liquidity until free cash flow turns positive.

Handler’s $9.00 price target is based on 3.5x his 2026 revenue estimate, which he views as reasonable given Angel’s growth profile.

“We believe Angel’s accelerating membership growth, expanding content slate and differentiated, asset-light business model position the company well to compound revenue while steadily reducing losses,” Handler said.

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