Amagi Media Labs (AMAGI) Q3 25/26 earnings summary

Executive summary

• Achieved strong double-digit revenue growth and margin expansion in Q3 and the first nine months of FY 2026, with broad-based performance across all business segments and increased content creation, distribution, and monetization activities.

• Continued leadership in cloud modernization, streaming unification, and monetization for global media clients, leveraging AI to optimize media operations and expand market reach.

• Customer base expanded by 40+ in the last year, driven by industry-wide cloud adoption and streaming trends, with high net revenue retention (NRR) of 127%.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Completed IPO of 49,546,221 equity shares, with listing on BSE and NSE effective January 21, 2026.

Financial highlights

• Consolidated revenue for the quarter was Rs 4,038.12 million (INR 404 crores); nine months: Rs 11,086.35 million (INR 1,109 crores), up 22% and 30% year-over-year respectively.

• Adjusted EBITDA in Q3 doubled year-over-year to INR 58 crores, with margins at 14.3%; nine-month EBITDA at INR 116 crores, margin 10.5%.

• Q3 PAT reached INR 31 crores (7.7% margin); nine-month PAT at INR 37 crores.

• Q3 free cash flow was INR 118 crores, supported by improved collections and working capital normalization; nine-month free cash flow negative INR 96 crores due to IPO and ESOP buyback expenses.

• Ended Q3 with INR 803 crores in cash and investments, not including January IPO proceeds.

Outlook and guidance

• Management aims to sustain recent growth rates and margin trajectory over the next two to three years, but refrains from providing specific forward guidance.

• Expects continued operating leverage as revenue scales, with long-term EBITDA margins targeted in the 25% range as seen in mature vertical SaaS businesses.

• Positioned to benefit from ongoing industry shift from cable to OTT and increasing cloud adoption in media operations.

• AI investments expected to drive future productivity and cost efficiencies for clients.

• No deferred tax assets recognized due to lack of reasonable certainty of future taxable profits.