0001193125-26-199037
SEC filingRevenue up 18.9% YoY driven by strong film slate; operating income turned positive to $23.5M.
Total revenue for Q1 2026 reached $643.1 million, an 18.9% increase from $540.7 million in Q1 2025. Admissions revenue grew 17.9% to $311.4 million, concession revenue rose 21.3% to $255.2 million, and other revenue increased 15.6% to $76.5 million. The growth was driven by a stronger film slate, including new releases Project Hail Mary, Hoppers, Scream 7, and carryover of Avatar: Fire and Ash, alongside strategic pricing actions. Operating income swung from a loss of $19.2 million to a profit of $23.5 million, reflecting operating margin expansion to 3.7% from (3.6)%. The improvement was fueled by revenue growth outpacing cost increases, though film rentals as a percentage of admissions revenue rose to 54.5% from 53.5% due to a higher concentration of blockbusters. Salaries and wages increased 4.5% to $94.4 million, but as a percentage of revenue declined to 14.7% from 16.7%, aided by labor productivity initiatives. Utilities and other costs grew 8.5% to $114.7 million, largely variable with attendance.
In the U.S. segment, revenue surged 23.4% to $514.7 million, supported by a 17.0% attendance increase to 24.1 million patrons. Average ticket price rose 4.5% to $10.53, driven by premium format mix and pricing actions. Concession revenue per patron increased 7.5% to $8.58, benefiting from pricing and product mix. Film rentals as a percentage of admissions revenue increased to 55.5% from 54.5%, while concession supplies expense as a percentage of concession revenue declined to 18.3% from 20.6% due to sourcing efficiencies. The International segment reported revenue growth of 3.9% as reported (3.3% constant currency) to $128.4 million, despite a 6.9% decline in attendance to 14.9 million patrons. Constant currency average ticket price increased 9.1% to $3.85 and concession per patron rose 11.1% to $3.20, driven by inflationary pricing. Film rental costs remained stable at 50.0% of admissions revenue. The U.S. segment remains the primary growth engine, while international results were mixed due to weaker film content.
Management highlighted that the industry's success is tied to film content quality and quantity. They expect ongoing inflationary pressures and tariffs to impact product costs but are mitigating through global sourcing. Labor market pressures may continue to drive wage increases. Capital expenditures were $37.7 million in Q1 2026, focused on theater enhancements, with $69.9 million in committed projects through 2028. The company believes existing cash and operating cash flows will meet working capital, capex, and contractual obligations for the next twelve months. No specific financial guidance was provided, but the improved operating leverage and positive attendance trends suggest momentum if film slate remains strong. The payoff of the 4.50% Convertible Notes in August 2025 reduced interest expense to $34.7 million from $38.5 million. Compliance with debt covenants is maintained, with significant capacity for restricted payments under credit agreements.
As of March 31, 2026, Cinemark held $261.7M in cash and cash equivalents, down from $344.3M at December 31, 2025. Total debt stood at $1,895.7M, consisting of a $630.7M term loan due May 2030, $765.0M of 5.25% senior notes due July 2028, and $500.0M of 7.00% senior notes due August 2032. The fair value of total debt was $1,909.6M. Shareholders' equity was $389.7M, including $381.1M attributable to Cinemark Holdings. The company had $304.3M in NCM screen advertising advances (a deferred revenue liability) and $272.6M in other deferred revenue, totaling $576.9M in performance obligations.
The Notes disclose $47.1M in signed but not yet commenced lease agreements for theater and facility leases. These are off-balance-sheet commitments as of March 31, 2026. Additionally, the NCM screen advertising advances of $304.3M are recognized on a straight-line basis through February 2041, with $234.2M due after 2031. The company also has $272.6M in other deferred revenue (gift cards, loyalty programs, subscription fees), with $240.8M expected to be recognized within the next twelve months.
During Q1 2026, Cinemark paid $10.8M in dividends ($0.09 per share), up from $10.1M ($0.08 per share) in Q1 2025. No share repurchases occurred in Q1 2026, compared to $200.0M in Q1 2025. The company repaid $1.6M of long-term debt. Capital expenditures totaled $37.7M ($28.9M U.S., $8.8M International), up from $22.1M in Q1 2025. The company also withheld $20.4M in shares for payroll taxes related to vesting of equity awards.
Cinemark reports two segments: U.S. and International. For Q1 2026, U.S. revenue was $514.7M (up 23.4% YoY) with Adjusted EBITDA of $74.7M (up from $20.0M). International revenue was $128.4M (up 3.9% YoY) with Adjusted EBITDA of $13.8M (down from $16.4M). Consolidated Adjusted EBITDA was $88.5M. The U.S. segment generated 80% of total revenue. Geographically, U.S. revenue was $517.0M (including intersegment), Brazil $49.1M, and other international countries $79.3M. Net theater properties and equipment were $989.0M in the U.S., $57.7M in Brazil, and $126.6M in other international countries.
The provided excerpt does not include the full cash flow statement, so operating cash flow (CFO), investing cash flow, and financing cash flow are not directly stated. However, supplemental disclosures reveal key cash flow components. Cash paid for interest decreased from $60.9M to $48.1M, reflecting lower debt costs or repayments. Cash paid for income taxes rose from $3.0M to $4.5M, indicating higher taxable income. Noncash investing activities show a $12.9M increase in accounts payable for theater property and equipment acquisitions, suggesting capital expenditure commitments. No share repurchases or dividends paid are reported. The absence of CFO and free cash flow figures limits a full assessment of cash generation quality versus net income. The net loss improved from $(38.6)M to $(5.8)M, but without CFO, the sustainability of cash flows cannot be evaluated. The increase in capex-related payables may signal expansion, but cash flow coverage of capital returns remains undisclosed.