5&2 Studios, Inc.

CIK:0001733443|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2025	Sep. 30, 2024
Revenues
Total revenues	$ 106,127	$ 35,257	$ 256,498	$ 146,734
Distribution and marketing	1,730	2,572	6,253	25,202
Amortization of film costs	0	0	1,901	14,553
Impairment of film costs		0	10,496	0
Depreciation and amortization	1,465	3,552	6,438	9,955
General and administrative	10,428	7,399	29,487	28,751
Operating expenses	79,593	38,052	220,176	160,671
Gain on sale of assets		192		13,214
Other operating income, net	2,995		2,995
Net operating income (loss)	29,529	(2,603)	39,317	(723)
Interest income	166	155	454	525
Interest expense		(2)		(5,434)
Other income (expense), net	69	(227)	110	216
Net income (loss) before income taxes	29,764	(2,677)	39,881	(5,416)
Benefit (provision) for income taxes	(7,892)	359	(10,848)	(1,725)
Net income (loss)	21,872	(2,318)	29,033	(7,141)
Net loss attributable to noncontrolling interests	979	1,642	3,213	4,681
Net income (loss) attributable to 5&2 Studios, Inc.	$ 22,851	$ (676)	$ 32,246	$ (2,460)
Earnings (loss) per Common Stock, basic (in dollars per share)	$ 1.82	$ (0.05)	$ 2.57	$ (0.2)
Earnings (loss) per Common Stock, diluted (in dollars per share)	$ 1.82	$ (0.05)	$ 2.57	$ (0.2)
Weighted average Common Stock outstanding, basic (in shares)	12,535	12,544	12,535	12,544
Weighted average Common Stock outstanding, diluted (in shares)	12,535	12,544	12,535	12,544
Licensed content and merchandise revenues
Revenues
Total revenues	$ 8,324	$ 10,514	$ 82,573	$ 53,119
Cost of revenues	6,256	10,982	69,240	28,580
Production services revenues
Revenues
Total revenues	97,803	24,743	173,925	93,615
Cost of revenues	$ 59,714	$ 13,547	$ 96,361	$ 53,630

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2025	Sep. 30, 2024
Cash flows from operating activities
Net income (loss)	$ 21,872	$ (2,318)	$ 29,033	$ (7,141)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization expense	1,465	3,552	6,438	9,955
Amortization of film costs	0	0	1,901	14,553
Impairment of film costs		0	10,496	0
Deferred income tax benefit	8,702	(15,697)	5,508	(17,244)
Accretion of debt discount and issuance costs				473
Non-cash lease expense			10	28
Gain on sale of assets				(13,214)
Allowance (recovery) for credit losses			(1)	92
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable			(42,692)	(8,264)
(Increase) decrease in inventory			(377)	38
(Increase) decrease in prepaids and other current assets			2,358	(3,499)
(Increase) decrease in film costs			(3,490)	(11,120)
Increase (decrease) in accounts payable			1,649	(2,135)
Increase (decrease) in accrued expenses and other current liabilities			32,278	18,004
Increase (decrease) in deferred revenue			(33,641)	(29,774)
Increase (decrease) in other noncurrent liabilities			(2,341)	2,041
Net cash flows (used in) operating activities			7,129	(47,207)
Cash flows from investing activities
Acquisition of property & equipment			(3,089)	(7,463)
Proceeds from sale of property & equipment				1
Net cash flows (used in) investing activities			(3,089)	(7,462)
Cash flows from financing activities
Proceeds from issuance of debt				11,684
Net cash flows (used in) financing activities				11,684
Net increase (decrease) in cash and cash equivalents			4,040	(42,985)
Cash and cash equivalents, beginning of period			6,466	65,179
Cash and cash equivalents, end of period	$ 10,506	$ 22,194	10,506	22,194
Supplemental disclosure of cash flow information:
Cash paid for income taxes			4,930	12,032
Cash paid for interest				2,697
Cash received for interest			$ 454	525
Supplemental disclosure of non-cash investing and financing information:
Purchase of property and equipment with accounts payable				1,361
Forgiveness of debt in CAS Transaction				157,184
Contribution of non-cash assets from noncontrolling interest member				$ 531

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2025	Dec. 31, 2024
Assets
Cash and cash equivalents	$ 10,506	$ 6,466
Accounts receivable, net of allowances of $0 and $22 as of September 30, 2025 and December 31, 2024, respectively	56,188	13,474
Inventory, net	5,286	5,858
Prepaid assets	1,441	3,299
Other current assets	2,987	2,613
Total current assets	76,408	31,710
Property and equipment, net	25,070	28,431
Film costs, net	7,811	16,733
Other assets	5,276	2,696
Deferred tax asset, net	9,762	15,270
Total assets	124,327	94,840
Liabilities and Equity
Accounts payable	4,390	2,753
Accrued expenses and other current liabilities	42,087	10,773
Deferred revenue	28,471	62,112
Current portion of lease liabilities	546	659
Total current liabilities	75,494	76,297
Other noncurrent liabilities	3,809	2,552
Total liabilities	79,303	78,849
Commitments and contingencies (Note 9)
Additional paid-in capital	10,237	10,237
Retained earnings	33,804	1,558
Noncontrolling interests	970	4,183
Total equity	45,024	15,991
Total liabilities and equity	124,327	94,840
Series A Common Stock
Liabilities and Equity
Common Stock	7	7
Series B Common Stock
Liabilities and Equity
Common Stock	$ 6	$ 6