AMC Posts Strong Q4 Results Amid Optimism for 2026 Box Office Surge

Date of Call: Feb 24, 2026

Financials Results

• Revenue: Q4 2025: $1.29B. Full year 2025: $4.8B, up 4.6% YOY.

Guidance:

• Expect 2026 North American box office to grow by approximately $500M to as much as $1B+ over 2025.
• Expect material improvement in adjusted EBITDA and free cash flow in 2026 with rising revenues.
• 2026 CapEx net of lease incentives expected to be $175M to $225M.
• Aim for continued theater portfolio optimization, closing more theaters than opening, with focus on high-quality acquisitions.
• Optimistic about strong film slate and operating leverage driving positive financial results.

Business Commentary:

Revenue and EBITDA Growth:

• AMC Entertainment Holdings reported total revenue of $1.29 billion for Q4 2025, with adjusted EBITDA of $134 million, and generated $127 million of cash from operating activities.
• The company's U.S. domestic theaters demonstrated a 140 basis points outperformance compared to the industry, with a 12.7% increase in adjusted EBITDA for the full year 2025.
• This growth was driven by strong marketing and loyalty platforms, increased consumer preference for premium large-format and extra large-format offerings, and operational efficiency improvements.

Balance Sheet and Financial Strategy:

• Since the end of 2020, AMC has reduced total debt by approximately $1.8 billion, including $1.4 billion in principal balance reduction and $420 million in COVID-related lease deferrals.
• In July 2025, AMC completed transactions that included receiving $240 million in cash from debt issuance and equitizing $183 million in debt, addressing all 2026 debt maturities.
• The strategic focus on strengthening the balance sheet and preparing for box office recovery was emphasized, indicating a commitment to financial stability and flexibility.

Operational Efficiency and Market Position:

• AMC's per patron revenue and profit metrics reached record levels, with total revenue per patron growing 6.8% to $22.10, and contribution margin per patron increasing by 7.2%.
• The company's market share in the U.S. is over 1 out of 4 of all box office dollars, and it is approximately 50% larger than the second and third largest players.
• The efficiency improvements and market leadership were attributed to AMC's focus on optimizing its theater footprint and enhancing operational productivity.

Content and Industry Outlook:

• AMC anticipates a significant increase in the North American box office in 2026, expecting it to grow by $500 million to over $1 billion compared to 2025.
• The optimism is based on a rich film slate for 2026, with major studios planning more theatrical releases, which is expected to drive industry growth.
• The operating leverage inherent in AMC's business model suggests that increased revenues will lead to substantial improvements in adjusted EBITDA.

Sentiment Analysis:

Overall Tone: Positive

• Adam Aron stated: 'This was a year of meaningful progress with AMC, both operationally and financially.' He described 2026 as 'the strongest slate of moviegoing that this industry has seen since 2019' and expressed confidence that 'the signposts for 2026 are indicating a significantly strengthened year ahead.' Sean Goodman noted 'exceptionally strong film slate' and that they are 'very well positioned to meaningfully increase adjusted EBITDA.'

Q&A:

• Question from Chad Beynon (Macquarie Research): How are we thinking about your fleet or portfolio given the strong outlook for content in '26? Are there expected to be any new builds in that CapEx number?
  Response: Will continue to close underperforming theaters and renegotiate leases; new builds are capital-intensive, but spot acquisitions are more common and profitable; a small number of new theaters are included in the $175-225M CapEx range.

• Question from Chad Beynon (Macquarie Research): Do you have a gut feel if international admission revenues could be higher or lower than what we're seeing in North America this year?
  Response: Believes Europe is recovering faster and could have its best year in the last 6, especially when considering strong constant currency performance.

• Question from retail shareholder (via Sean Goodman): What future innovations can people expect on the food and beverage side?
  Response: Focusing on menu experimentation (e.g., fresh cookies, better pizza) and growing movie-themed merchandise, which could grow by 20%+ in 2026 with attractive margins.

• Question from retail shareholder (via Sean Goodman): Update on studio relations, windows, and union negotiations/potential strike?
  Response: Studio relations are strong; positive developments with streamers like Apple, Amazon, and Netflix. Not a party to union negotiations but hopes talks avoid strikes to prevent industry disruption.

• Question from retail shareholder (via Sean Goodman): How are you allocating the $175-225M CapEx spend?
  Response: Approx. $150M for maintenance; remaining funds for upgrading theater experience (e.g., adding IMAX, Dolby Cinema, XL screens) and capital-light renovations like new seating (AMC Club Rocker) to enhance comfort and profitability.

Contradiction Point 1

Capital Allocation for Theaters and Portfolio Strategy

Conflicting statements on capital intensity for new theater development.

What are your key takeaways from the latest earnings report? - Chad Beynon (Macquarie Research)

2025Q4: A small number of new theater locations (including both new builds and spot acquisitions) are included in the 2026 CapEx guidance of $175-$225 million. - [Sean Goodman](CFO) and [Adam Aron](CEO)

How is the strong 2026 content outlook influencing your theater fleet/portfolio strategy, including potential new builds in CapEx? - Eric Wold (Texas Capital Securities)

20251106-2025 Q3: Portfolio improvements have been capital-light, focusing on spot acquisitions (existing theaters) which are less expensive than new builds. - [Adam Aron](CEO)

Contradiction Point 2

M&A Strategy and Readiness

Inconsistency regarding the company's current appetite and ability for acquisitions.

How do you expect current market conditions to affect your revenue growth in the next quarter? - Chad Beynon (Macquarie Research)

2025Q4: The pace will remain closing more theaters than opening. - [Sean Goodman](CFO)

With the strong 2026 content outlook, how are you planning your theater fleet/portfolio and potential new builds in CapEx? - Shareholder Question (via Operator)

20251106-2025 Q3: Current focus is on strengthening balance sheet and running the company; cash is earmarked and equity is depleted, so not a M&A-friendly time currently. - [Adam Aron](CEO)

Contradiction Point 3

Strategy for Theatrical Releases and Studio Consolidation

Contradiction on the impact and preparedness regarding potential studio consolidation.

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2025Q4: Given the strong content outlook for 2026... The pace will remain closing more theaters than opening. - [Sean Goodman](CFO) and [Adam Aron](CEO)

With the 2026 content outlook, how is your theater fleet/portfolio strategy evolving, and are there plans for new builds in the CapEx allocation? - Shareholder Question (via Operator)

2025Q3: It is premature to speculate on the future of Warner Bros. However, AMC is pleased with the new Paramount ownership and expects an increase in Paramount's film release slate. - [Adam Aron](CEO)

Contradiction Point 4

Allocation of Capital Expenditure

Contradiction on the proportion of CapEx dedicated to maintenance versus growth/guest experience upgrades.

What is the question from Retail Investor (via Sean Goodman)? - Retail Investor (via Sean Goodman)

2025Q4: How are you allocating the $175-$225 million annual CapEx spend? ~$150 million is for maintenance capital (roofs, HVAC, IT, AI adoption). The remainder focuses on upgrading the guest experience... - [Adam Aron](CEO)

How is the $175–$225 million annual capital expenditure budget being allocated? - Eric Wold (Texas Capital Securities)

2025Q3: The increase in food and beverage revenue per patron is driven by a combination of higher participation, units sold, and price. Price improvements are analytical, based on data per theater and market. - [Adam Aron](CEO)

Contradiction Point 5

Strategy for Theater Portfolio Expansion

Contradiction on the pace and scale of new theater openings versus closures.

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2025Q4: The pace will remain closing more theaters than opening. A small number of new theater locations... are included in the 2026 CapEx guidance. - [Sean Goodman](CFO) and [Adam Aron](CEO)

How is the strong 2026 content outlook influencing your theater fleet strategy and CapEx plans for new builds? - Shareholder Question

2023Q3: Approximately 150 marginal or unprofitable theaters have been closed and replaced with 50 new, highly successful locations. - [Adam Aron](CEO)