Reading A 2025 Q2 Earnings Strong Performance as Net Loss Narrows 78.4%

Reading A (RDI) reported its fiscal 2025 Q2 earnings on August 14, 2025, showcasing significant improvements in key financial metrics. The company exceeded expectations by narrowing its net loss and delivering robust revenue growth, driven by strong cinema performance. Reading A has also outlined a positive outlook for the remainder of 2025, with a focus on leveraging blockbuster theatrical releases and real estate gains.

Reading A reported a 29.0% year-over-year increase in total revenue, reaching $60.38 million in 2025 Q2, surpassing the $46.81 million reported in the same period in 2024. The performance was led by the Cinema segment, which accounted for the majority of revenue with $56.78 million, while the Real Estate segment added $3.60 million to the total.

Reading A significantly improved its profitability, narrowing the net loss to $-2.80 million in 2025 Q2 compared to $-13 million in 2024 Q2, a 78.4% reduction. Earnings per share also showed substantial progress, with the loss per share decreasing from $-0.57 to $-0.12, reflecting a 78.9% improvement in profitability.

The stock price of Reading A has seen mixed performance in the short term, dropping 1.99% during the latest trading day but showing resilience with a 7.64% gain over the past full trading week and a 9.09% rise month-to-date.

The 30-day post-earnings trading strategy for Reading A has delivered poor returns over the past three years. With a CAGR of -11.59% and total return of -27.93%, the strategy underperformed the benchmark return of 57.70%. Additionally, the Sharpe ratio of -0.81 indicates high risk and low reward, while the maximum drawdown of 0% suggests the strategy avoided losses but failed to capitalize on gains.

Ellen Cotter, President and Chief Executive Officer, expressed confidence in the company’s long-term future, citing record box office success from major releases such as *A Minecraft Movie*, *Sinners*, and *Lilo & Stitch*. She emphasized the momentum driven by summer 2025 films like *Jurassic World: Rebirth* and *Superman*, and highlighted optimism for upcoming titles including *TRON: Ares* and *Wicked: For Good*. Cotter also praised the Real Estate division for a 56% quarter-over-quarter increase in operating income and 67% year-over-year growth, noting the team's success in executing strategic priorities and reducing debt through the sale of major property assets.

Looking ahead, Reading A expects a strong second half of 2025, driven by anticipated success from upcoming theatrical releases and continued growth in cinema revenues and food and beverage performance. The company also aims to maintain a disciplined approach to real estate monetization and debt reduction, having already reduced gross debt by $32.1 million through the sale of two major Australian and New Zealand assets.

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