Analyst Ratings February 25, 2026

B. Riley Starts Coverage on Angel Studios, Issues Buy Rating and $7 Target

Analyst projects rapid membership growth and significant revenue upside while company remains unprofitable with a weak financial health score

By Priya Menon ANGX
B. Riley Starts Coverage on Angel Studios, Issues Buy Rating and $7 Target
ANGX

B. Riley has opened coverage on Angel Studios Inc. (NYSE: ANGX) with a Buy rating and a $7.00 price target. The broker identified the company's Angel Guild membership model as the primary growth engine, noting strong recent expansion in paying members and theatrical box-office performance. Projections hinge on sustained marketing investment, a steady content pipeline and favorable filmmaker economics, while the company continues to register losses and a weak financial health assessment.

Key Points

  • B. Riley initiated coverage on Angel Studios (NYSE: ANGX) with a Buy rating and a $7.00 price target; analyst targets range from $8 to $14 with a consensus Buy.
  • The Angel Guild membership program drives the business - it contributed 64% of trailing twelve-month revenue, grew 555% over that period, and exceeds 2 million paying subscribers.
  • B. Riley forecasts membership climbing to 3.4 million by fiscal 2027, generating a revenue run-rate above $480 million, based on aggressive marketing, a content pipeline and filmmaker economics; other brokerages have also started coverage with Buy ratings.

B. Riley Securities has initiated formal coverage of Angel Studios Inc. (NYSE: ANGX) with a Buy recommendation and set an initial price target of $7.00. At the time of the firm's note the stock was trading at $3.26, implying sizable upside relative to the assigned target. Analysts covering the name carry price targets that range from $8 to $14, and the consensus recommendation across those analysts is Buy.

The research note highlights Angel Studios' strategy of producing and distributing visual content aimed at a faith-based segment within the broader streaming market. Central to that approach is the Angel Guild - a membership program through which subscribers vote on projects, support theatrical releases and contribute to funding new films and television series.

According to the firm, the Angel Guild accounted for 64% of trailing twelve-month total revenue and expanded 555% over that same period. The membership program now exceeds 2 million subscribers. Angel Studios reported revenue of $242.66 million over the last twelve months, reflecting 110% revenue growth year-over-year. Despite the revenue trajectory, company-level results remain unprofitable and its Financial Health score is characterized as "WEAK."

B. Riley's forecasts anticipate that paying Angel Guild members will reach 3.4 million by fiscal year 2027, a trajectory that corresponds to a compound annual growth rate approaching 80%. Under that scenario the firm projects an annual revenue run-rate that would surpass $480 million, with the Angel Guild representing roughly 87% of the total.

The brokerage attributes these projections to assumptions around elevated marketing expenditure, a continued content pipeline and the economics of working with filmmakers. The note explicitly frames the outlook as dependent on those levers, which form the basis of the firm's revenue and membership roll-forward. For investors seeking more granular analysis, the firm points to a comprehensive Pro Research Report that is available for this and more than 1,400 other U.S. equities.

Recent company milestones underline the membership momentum highlighted by B. Riley. Angel Studios announced it surpassed two million paying Guild members, a figure that the company said represents a doubling of its paid membership base in nine months and a 25% increase since the end of the third quarter. On the theatrical front, the studio's animated musical "David" generated $22 million in domestic ticket sales in its opening weekend, a performance the company described as its strongest theatrical opening to date. The film set a new benchmark for faith-based animated releases, surpassing the prior opening by "The King of Kings."

Other brokerage activity mirrors B. Riley's interest. Texas Capital Securities and Roth/MKM each initiated coverage on Angel Studios with Buy ratings, assigning price targets of $6.50 and $9.00, respectively. Those firms emphasized the company's growth prospects and its focus on values-driven content as central to their positive outlooks.

On governance and compensation, Angel Studios' board approved the CEO's 2026 pay package. The approved package for Neal Harmon includes a base salary of $550,000 and equity awards granted under the company's Long-Term Incentive Plan. The board's decision, along with the recent analyst coverage and box-office results, underscores the company's strategic initiatives and its push to expand market presence.

In sum, the new analyst coverage places a premium on subscription-led monetization and theatrical success as the paths to scale for Angel Studios, while current financials point to continued unprofitability and a weak health metric. The investment case presented by B. Riley and other brokers is contingent on execution of marketing, content and creator-focused economics that the firms identify as essential to delivering the projected membership and revenue outcomes.

Risks

  • Financial performance remains unprofitable and the company has a Financial Health score rated as "WEAK," presenting balance-sheet and cash-flow risks for the media and entertainment sector.
  • B. Riley's upside projections depend on continued aggressive marketing spend and a steady stream of content; the pacing and effectiveness of marketing and content delivery are material uncertainties for streaming and theatrical distribution.
  • The revenue outlook is heavily reliant on sustained membership growth and successful theatrical releases; underperformance in subscriber retention, acquisition or box-office results would affect revenue and investor expectations.

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