Adjusted EPS of 14 cents surpassed the analyst expectations for a loss of six cents per share.
The largest cinema chain operator’s revenue rose 14.2% year over year (Y/Y) to $1.60 billion, exceeding estimates of $1.47 billion. This is supported by higher attendance, box office growth, and increased per-guest spending.
Adjusted EBITDA rose 70% to a record $321.4 million, surpassing $300 million for the first time and improving $131.9 million from the prior-year quarter.
Free cash flow reached $190.1 million, while adjusted EBITDA margin expanded 650 basis points to 20.1% from 13.6% a year ago, driven by revenue growth and cost discipline.
Record EBITDA Growth
Adjusted net income improved significantly to $104.3 million from a loss of $0.5 million in the year-ago quarter.
Adjusted EBITDA increased 69.6% to a record $321.4 million, surpassing $300 million for the first time.
The company said it continues investing in premium formats, loyalty programs, and cost efficiencies, driving an adjusted EBITDA margin of 20.1%.
Operating cash flow rose 70.1% Y/Y to $235.4 million and free cash flow reached $190.1 million in the quarter.
AMC reduced debt by $1.7 billion since 2020 and ended the quarter with $778 million in cash, excluding restricted cash.
Strong Attendance Across Regions
Global attendance reached 71 million guests, with market share gains in the U.S. and Europe.
Sean Goodman, Chief Financial Officer, says AMC outpaced industry growth, with the domestic box office rising 10.7% year over year while AMC’s domestic ticket revenue increased 11.4%, gaining approximately 70 basis points of market share.
European attendance grew 17.9%, outperforming regional industry growth by about 170 basis points, while European adjusted EBITDA increased more than fourfold year-over-year.
Strongest Q2 For Domestic Box Office
The domestic box office reached $2.99 billion, marking the strongest second quarter in seven years and the fifth-highest quarterly performance in 50 years.
AMC benefited from strong film releases, with six titles from Universal, Lionsgate, A24, and Disney generating domestic opening weekends above $75 million.
The company also gained market share through improved operations, premium formats, and customer engagement initiatives.
Theater Business Optimization
AMC continued optimizing its theater footprint, closing 7 locations and adding 6 premium large format (PLF) and 25 XL auditoriums during the second quarter.
Since 2020, AMC has reduced its global theater count by 159 locations (16%), closing 225 theaters while opening 66 new venues.
Although premium formats account for only about 8% of AMC’s screens, the company expanded premium offerings with 77 additional PLF auditoriums and 193 more XL auditoriums, increasing premium seating options by over 50%.
Premium formats contributed more than 50% of ticket revenue for “The Odyssey” during its opening weekend.
Notably, AMC and Odeon operate around 750 premium and enhanced auditoriums globally, including 226 IMAX, 182 Dolby Cinema, 83 iSense, 47 PRIME, 14 ScreenX/4DX, and 193 XL screens.
Outlook
AMC plans to expand its premium large format (PLF) and extra-large format (XLF) footprint by adding 100–250 auditoriums over the next 2–4 years, primarily funded through third-party capital.
AMC expects continued growth from a strong 2026 film lineup, including Universal and Christopher Nolan’s “The Odyssey,” which delivered approximately $124 million in domestic opening weekend revenue, along with Sony’s “Spider-Man: Brand New Day,” Warner Bros.’ “Dune Part 3,” and Disney’s “Doomsday.”
Management expects 2026 to be the strongest post-pandemic year for both domestic and global box office performance.
AMC Price Action: AMC Entertainment Hldgs shares were up 12.42% at $2.18 at the time of publication on Monday, according to Benzinga Pro data.
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