AMC Entertainment Q3 Earnings Call Highlights

Key Points

• AMC returned to profitability in Q3, with revenue up 31.6% to $1.711 billion, net earnings of $109.3 million, and adjusted EBITDA nearly tripling to $347.5 million. Higher attendance and premium-screen demand helped drive record revenue and adjusted EBITDA.
• The company refinanced 97% of its debt, lowering its average interest rate and pushing nearly all maturities to 2031 or 2033. AMC ended September with $751.9 million in cash and said it expects positive free cash flow for full-year 2026.
• Management cited a stronger box office outlook and plans to invest in theater upgrades, while pursuing cost savings—including more than $10 million in potential European overhead reductions.

AMC Entertainment NYSE: AMC reported record third-quarter revenue and adjusted EBITDA as a stronger box office, higher attendance and demand for premium screens helped the theater operator return to a quarterly profit.

Revenue rose 31.6% from a year earlier to $1.711 billion, while net earnings were $109.3 million, compared with a loss of $298.2 million in the third quarter of 2025. Adjusted EBITDA nearly tripled to $347.5 million from $122.5 million, the company said on its earnings call.

Chairman and CEO Adam Aron said the results marked the second consecutive quarter in which AMC set company records for revenue and adjusted EBITDA. Management also said it expects to generate positive free cash flow for full-year 2026.

Attendance and premium screens drive growth

Nearly 75 million guests visited AMC theaters worldwide during the quarter, Chief Financial Officer Sean Goodman said. U.S. admissions revenue grew 29.9%, outpacing the 27% increase in the industry box office. European attendance rose 41.5%, approximately 10 percentage points above industry attendance growth in the company’s European markets.

AMC recorded third-quarter highs for consolidated admissions revenue per patron, food and beverage revenue per patron, and total revenue per patron, Goodman said. The company’s adjusted EBITDA margin increased by more than 10 percentage points to 20.3%.

Premium large-format and extra-large screens accounted for 8% of AMC’s U.S. screens but generated 31% of U.S. admissions revenue in the quarter, Aron said. Revenue from those screens grew 62% from a year earlier.

For the first nine months of 2026, revenue rose 22.3% to $4.353 billion, and adjusted EBITDA increased 178.1% to $707.2 million. AMC narrowed its net loss for the period to $19.2 million from $505 million a year earlier. Nine-month free cash flow was $124.7 million.

Goodman said AMC generated 51.6% more adjusted EBITDA in the first nine months of 2026 than in the same period of 2019, despite global attendance being 26.5% lower and the North American box office being approximately 7.5% lower.

Debt refinancing extends maturities

AMC ended September with $751.9 million in cash, excluding $40 million of restricted cash, after repaying $125.5 million of senior secured notes during the quarter.

On Oct. 5, the company completed a refinancing covering 97% of its debt, Aron said. Goodman said the transaction lowered AMC’s average interest rate and extended nearly all debt maturities to late 2031 or 2033.

The new debt includes $2 billion of first-lien senior secured notes bearing interest at 8.875%, an $850 million first-lien term facility priced at SOFR plus 4.5 percentage points, and a $1.12 billion senior secured loan bearing interest at 11.25%.

Aron said AMC would continue working to pay down debt and reduce leverage, while also using equity financing when management considers it appropriate.

Outlook and investment plans

Aron said the domestic industry box office rose approximately 35% in October and that he expects it to easily surpass $10 billion for 2026. He pointed to upcoming releases including “Dune: Part Three,” “Avengers: Doomsday,” “The Hunger Games: Sunrise on the Reaping” and “Jumanji: Open World.”

Asked whether the box office could grow again in 2027, Aron said forecasting the full slate was difficult. He said most forecasters expect a domestic box office around $10 billion and described 2027 as likely to be a solid year, while expressing greater optimism about 2028.

AMC expects its positive free cash flow for 2026 to follow net capital expenditures of $200 million to $235 million. Goodman said the company is still planning its 2027 budget but would likely spend in the middle to high end of that range if box office performance remains at current levels.

Management outlined plans to invest in theater improvements, including new seating at high-profile locations and a renovation of the Orpheum 7 theater in Manhattan. Aron also said AMC is testing artificial intelligence in Europe to help assign films to auditoriums, an effort he said could improve efficiency and revenue if successful.

Goodman said approximately 10% of AMC’s theater leases come up for renewal each year, giving the company opportunities to renegotiate terms or close locations. Aron added that an effort to reduce overhead in Europe has the potential to save more than $10 million in operating costs.

About AMC Entertainment (NYSE:AMC)

AMC Entertainment Holdings, Inc is one of the world's largest theatrical exhibition companies. Through its AMC Theatres and ODEON Cinemas Group brands, the company operates movie theaters that showcase new film releases and provide audiences with premium viewing experiences.

AMC's theater offerings include standard and large-format screens, IMAX and Dolby Cinema experiences, reserved seating, mobile and online ticketing, and food and beverage services. The company also operates loyalty programs, including AMC Stubs, and offers subscription and membership products in select markets.

Founded in 1920, AMC serves moviegoers primarily in the United States and Europe.

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