0001411579-26-000051
SEC filingAdjusted EBITDA improved to $38.3M from ($57.7M) YoY, driven by attendance and revenue growth.
For the three months ended March 31, 2026, total revenues increased 21.2% to $1.045 billion compared to $862.5 million in the prior year period. Admissions revenue rose 22.2% to $578.4 million, driven by a 13.6% increase in attendance (47.6 million vs. 41.9 million) and a 7.5% increase in average ticket price. Food and beverage revenue grew 22.5% to $347.3 million, supported by higher attendance and a 7.8% increase in per-patron spending to $7.29. Operating costs and expenses increased 8.2% to $1.091 billion, but operating loss narrowed 68.7% to ($45.7 million) from ($145.9 million). Net loss improved to ($117.1 million) from ($202.1 million), a 42.1% reduction. Adjusted EBITDA swung to positive $38.3 million from ($57.7 million), reflecting operating leverage as attendance increased.
U.S. Markets revenue increased 20.1% to $740.8 million. Attendance rose 14.2% and average ticket price increased 4.8%. Food and beverage per patron increased 4.5% to $8.43. Operating loss improved to ($41.5 million) from ($125.7 million), aided by lower depreciation expense and a 530 bps improvement in operating expense as a percentage of revenue (39.4% vs. 46.7%). Adjusted EBITDA for U.S. Markets was $21.9 million, up from ($57.1 million).
International Markets revenue increased 24.1% to $304.6 million. Attendance rose 12.6% and average ticket price increased 13.3%, partly due to favorable foreign currency translation. Food and beverage per patron rose 18.6% to $5.23. Operating loss improved to ($4.2 million) from ($20.2 million), with operating expense as a percentage of revenue improving 490 bps to 37.8%. Adjusted EBITDA for International Markets was $16.4 million, up from ($0.6 million).
Management states that existing cash ($339.2 million) plus cash from operations is sufficient to fund operations through the next twelve months, but that current cash burn rates are not sustainable long-term. To achieve sustainable net positive cash flows, revenues need to increase to at least pre-COVID-19 levels. The company estimates capital expenditures of $175 million to $225 million for FY 2026, net of lease incentives, to maintain and enhance operations. Key risks include studio release schedules, changes in movie-going behavior, and debt refinancing needs. The company continues to pursue capital market transactions to manage its capital structure, including an April 2026 Odeon Credit Agreement for $425 million term loans due 2031. No specific quantitative guidance for future revenue or earnings was provided.
As of March 31, 2026, AMC held $339.2M in unrestricted cash, with additional restricted cash of $41.7M. Total debt (carrying value) was $4,013.9M, comprising $3,963.9M in corporate borrowings and $50.0M in finance lease liabilities. Stockholders' deficit stood at ($1,926.5M), reflecting accumulated deficits. The company's liquidity position remains tight, with cash burn from operations of ($128.5M) in Q1 2026.
AMC has substantial lease commitments: undiscounted operating lease payments of $5,691.8M and finance lease payments of $73.9M, totaling $5,765.7M. The weighted average remaining lease term is 7.5 years for operating leases and 12.3 years for finance leases. Additionally, the company has a signed but not yet commenced operating lease for one theatre with $6.9M in total payments. The exhibitor services agreement liability of $457.5M represents a contract liability for NCM common units.
No share repurchases occurred in Q1 2026. Debt repayments totaled $6.2M, including $5.0M in scheduled term loan payments and $1.2M in finance lease principal payments. The company raised $63.4M net from at-the-market equity offerings (55.2M shares). Capital expenditures were $46.2M (4.4% of revenue), with U.S. markets accounting for $34.7M and International $11.5M. No dividends were paid.
AMC operates two reportable segments: U.S. Markets and International Markets. For Q1 2026, U.S. Markets revenue was $740.8M (70.9% of total), with Adjusted EBITDA of $21.9M. International Markets revenue was $304.6M (29.1%), with Adjusted EBITDA of $16.4M. Segment profitability improved year-over-year, with U.S. Adjusted EBITDA swinging from ($57.1M) to positive $21.9M, and International from ($0.6M) to $16.4M. The company's definition of Adjusted EBITDA was updated to exclude net periodic pension cost. Segment depreciation and amortization was $57.1M (U.S.) and $18.6M (International).
Net loss improved from -$202.1M to -$117.1M year-over-year, while net cash used in operating activities improved from -$370.0M to -$128.5M. The primary driver of the operating cash flow improvement was a significant reduction in cash outflows from working capital: accounts payable decreased by only $92.0M versus $134.4M in the prior year, and accrued expenses swung from -$109.5M to +$1.4M. Non-cash adjustments included a $59.5M gain on derivatives and $18.0M gains on Hycroft investments, which reduced the net loss but did not affect cash. Depreciation and amortization remained stable at $75.7M. Capital expenditures were nearly flat at $46.2M, indicating sustained investment in theatre assets. Free cash flow is not explicitly stated but would be negative given CFO of -$128.5M and capex of $46.2M. Financing activities provided $49.3M, primarily from $63.4M in net equity proceeds, partially offset by $5.0M in scheduled term loan payments and $4.2M in deferred financing costs. No share repurchases or dividends were reported. The company ended the period with $380.9M in cash and restricted cash, down from $477.3M at the start of the quarter.