National Cinemedia 2025 Q2 Earnings Worse Losses Amid Revenue Decline

National Cinemedia reported weaker-than-expected results for Q2 2025, with both revenue and earnings falling short. The company’s earnings strategy underperformed significantly, and while management expressed cautious optimism for the remainder of the year, it did not raise its guidance for the third quarter.

Revenue
National Cinemedia’s total revenue declined 5.3% year-over-year to $51.80 million in Q2 2025, compared to $54.70 million in the same period the prior year.

Earnings/Net Income
The company’s losses widened to $10.70 million in Q2 2025, a 23.0% increase from the $8.70 million net loss in Q2 2024. On a per-share basis, the loss expanded to $0.11 from $0.09, marking a 22.2% deterioration in profitability. The deepening losses indicate continued financial pressure.

Price Action
Shares of National Cinemedia have seen a steady decline, with the stock falling 4.82% on the most recent trading day, 6.39% over the past full trading week, and 5.22% month-to-date.

Post Earnings Price Action Review
Following the earnings release, a strategy of purchasing shares on the report date and holding for 30 days has historically performed poorly. Over the past three years, this approach resulted in a return of -62.78%, significantly underperforming the benchmark. The strategy's Sharpe ratio was negative at -0.27, highlighting high risk. Additionally, the maximum drawdown was recorded at 0%, suggesting complete liquidation of positions at some point during the backtest period.

CEO Commentary
CEO Tom Lesinski acknowledged the challenging economic and advertising environment but expressed optimism for the second half of the year, citing strong summer box office performance, an impressive lineup of upcoming releases, and increasing advertiser confidence. He emphasized the company’s long-term growth strategy and reaffirmed its commitment to shareholder returns through a $0.03 per share quarterly dividend.

Guidance
For Q3 2025, National Cinemedia expects total revenue between $62.0 million and $67.0 million, with Adjusted OIBDA in the range of $7.5 million to $11.5 million. The company has not provided guidance beyond the third quarter.

Additional News
On June 26, 2025, National CineMedia, Inc. announced the release of its Q2 2025 earnings report, marking a key moment in its fiscal performance update. While no earnings metrics were disclosed in the press release, it confirmed the company’s managing membership in National CineMedia. No major M&A activity or executive changes were reported in the three weeks following the earnings release. The company also did not announce any share repurchase programs, though it continued to pay a quarterly dividend of $0.03 per share.