Angel Studios, Inc. — financial distress indicators
Financial-health summary
Angel Studios, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 41/100). The main indicators are liabilities exceed assets (negative equity), operations consume cash and losses in 2 of the last 3 years. In its favour: revenue still growing (+233% yoy).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 1.12× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from 6% to -51% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Revenue still growing (+233% YoY).
📰 Recent news scan
- How to find and exploit the "glitch" that can make any business take offYahoo Finance · 2026-10-07
- Angel Studios, Inc. (ANGX) Moves 7.6% Higher: Will This Strength Last?Yahoo Finance · 2026-09-21
- Angel Studios (ANGX) Stock Looks Near Fair Value Following Guild Growth NewsYahoo Finance · 2026-09-17
- Angel Guild Surpasses 3 Million Paying Members, Doubling in Just Over One YearYahoo Finance · 2026-09-15
- Angel Announces Upcoming Investor Conference ParticipationYahoo Finance · 2026-09-03
- Angel Studios Inc (ANGX) (Q2 2026) Earnings Call Highlights: Guild Membership Surges 99% as ...Yahoo Finance · 2026-08-13
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Angel Studios, Inc.'s financial-health indicators show?
As of 2026-10-08, Angel Studios, Inc.'s public financial data places it in the 'Watch' band with a distress score of 41/100, driven by liabilities exceed assets (negative equity), operations consume cash and losses in 2 of the last 3 years. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Angel Studios, Inc.'s financial distress score?
41/100 ('Watch').
What works in Angel Studios, Inc.'s favour?
Revenue still growing (+233% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Telecom & Media companies with distress indicators
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- K Wave Media Ltd. (KWM)Very weak 100/100
- Reading International, Inc. (RDIB)Very weak 100/100
- SurgePays, Inc. (SURG)Very weak 100/100
- Upexi, Inc. (UPXI)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.