Reading International's Q3 2025: Contradictions Emerge on Refinancing Strategies, Investor Relations Events, and Australian Cinema Project Timelines

Date of Call: November 17, 2025

Financials Results

• Revenue: $52.2M, decreased 13% vs Q3 2024
• EPS: $0.18 basic loss per share, improved $0.13 from $0.31 loss in Q3 2024
• Operating Margin: Global operating loss of $329,000, improved 4% vs Q3 2024

Guidance:

• Company expects a much stronger 2026 film slate and states it is well positioned for stronger growth and a return to profitability in Q4 2026 and beyond.
• Plans to refinance major loans (Bank of America, Emerald, Valley National) in 2026; outcome tied in part to 44 Union Square lease resolution.
• Launching new free and premium membership programs (Dec 2025 in Hawaii/select U.S.; premium Angelika early 2026) and executing 2026–27 CapEx (recliners, TITAN LUXE, Dolby Atmos).
• Noosa cinema still planned (expected ~2028) targeting high‑teen double‑digit returns.

Business Commentary:

* Global Revenue Decline and Impact of Movie Slate: - Reading International, Inc. reported a 13% decrease in global total revenue to $52.2 million in Q3 2025 compared to Q3 2024. - This decline was driven by a weaker than expected movie slate in the third quarter, with notable titles like Deadpool & Wolverine, Despicable Me 4, and It Ends with Us performing better in the previous year.

• Operational Efficiency and Expense Management:
• Despite the revenue decline, Reading's global operating loss improved by 4%, and positive EBITDA increased by 26% to $3.6 million in Q3 2025.
• Effective management of expenses and strategic closures of underperforming cinemas, such as the San Diego cinema, contributed to this improved operational efficiency.

• U.S. Cinema Performance and Strategic Initiatives:
• The U.S. cinema revenue decreased by 10% to $25.1 million in Q3 2025, while the operating loss improved by 92% to a loss of $100,000.

• Record performance in F&B SPP, alternative content programming, and loyalty programs supported by improvements in online sales and movie-themed menus contributed to these results.

• Real Estate and Financial Health:

• Global real estate revenues decreased by 7% to $4.6 million, primarily due to the elimination of property-level cash flow from asset sales in Australia and New Zealand.
• Despite this, Reading reduced its global debt balance by 15% from December 31, 2024, to September 30, 2025, enhancing its financial health.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management emphasized improved profitability (5 straight quarters of positive adjusted EBITDA), a 41% improvement in quarterly net loss, $112.3M debt reduction since 2020 and optimism about a robust 2026 slate that should drive a return to profitability in Q4 2026 and beyond.

Q&A:

• Question from Stockholder (submitted via Investor Relations): Is the Noosa Australian cinema development still planned for 2027 or deferred indefinitely? What is the current budget and expected ROI for this project?
  Response: Noosa remains planned as an 8‑screen TITAN LUXE; opening now expected around 2028; terms undisclosed but target returns are high‑teen double‑digit, consistent with past third‑party cinema deals.

• Question from Stockholder (submitted via Investor Relations): Please elaborate on plans to refinance the Bank of America, Emerald and Valley National loans.
  Response: Company plans to refinance in 2026, evaluating structures and encouraged by improving financing and box office outlook; Emerald refinancing depends on 44 Union Square lease resolution, which they expect to progress by year‑end but cannot assure.

• Question from Stockholder (submitted via Investor Relations): If the Napier transaction closes, how will proceeds be used?
  Response: Proceeds would likely fund the Courtenay Central renovation in Wellington and/or be used for general corporate purposes in New Zealand.

• Question from Stockholder (submitted via Investor Relations): For the Sutton Hill Associates transaction assuming $13.65M in third‑party notes at 4.75% maturing 9/30/2035, who holds the notes and what secures them?
  Response: Notes are payable to a third party (not disclosed), will be guaranteed by Reading International but otherwise unsecured; transaction effectively winds up the prior master lease arrangement; rationale for the favorable rate is not specified.

Contradiction Point 1

Refinancing Strategy and Timing

It involves differing statements about the timing and specifics of refinancing strategies, which are important for understanding the company's financial outlook and cash management.

Can you clarify your refinancing plans for Bank of America, Emerald, and Valley National loans? - Andrzej Matyczynski (Reading International)

2025Q3: We are in the late stages of negotiating the terms for the refinancing of the 2026 maturities and are encouraged by the improving real estate financing environment and industry box office projections for 2026. - Gilbert Avanes(CFO)

What is NAB's appetite for longer-dated facilities given reduced leverage and increased cash flow from the rebound in the cinema segment? - Andrzej J. Matyczynski

2025Q2: We are working with NAB on a longer-term extension. We've had a good working relationship since 2011. While we can't assure completion, we're aiming to secure an extension within the next few months. - Gilbert Avanes(CFO)

Contradiction Point 2

Investor Relations Events

It highlights a change in the company's commitment and timeline for hosting investor relations events, which can impact communication with stakeholders and investor confidence.

Will the previously announced Investor Relations Day take place? - Andrzej J. Matyczynski (Reading International)

2025Q3: We don't currently have an Investor Relations Day scheduled. However, we're evaluating future IR events like non-deal roadshows, conferences, and potential IR meetings. As the company's recovery progresses, these events will provide opportunities to share growth prospects with stakeholders. - Andrzej J. Matyczynski(EVP of Global Operations)

Will the previously announced Investor Relations Day take place? - Andrzej J. Matyczynski

2025Q2: Will there be an Investor Relations Day as promised earlier in the year? - Andrzej J. Matyczynski(EVP of Global Operations)

Contradiction Point 3

Debt Refinancing Strategy

It involves differing approaches to managing and refinancing the company's debt, which impacts financial stability and investor confidence.

Can you elaborate on the plans for refinancing the Bank of America, Emerald, and Valley National loans? - Andrzej Matyczynski (Reading International)

2025Q3: We're encouraged by the improving real estate financing environment and industry box office projections for 2026. - Gilbert Avanes(CFO)

Regarding the Santander, Minneta, and Orpheum Theater term loan that was only rolled forward for a short duration, do you expect to refinance it with Santander or another source, and what interest rate increase is expected from refinancing term sheets you’ve reviewed? - Gilbert Avanes (Reading International Inc.)

2025Q1: We are planning on refinancing our debt in 2026. - Gilbert Avanes(CFO)

Contradiction Point 4

Australian Cinema Development Project Timing

It involves inconsistencies in the expected timeline for the cinema development project in Noosa, Australia, which could impact strategic planning and investor expectations.

Is the Noosa Australian cinema development project still on track for 2027 or has it been indefinitely delayed? What is the current budget and expected ROI for this project? - Andrzej Matyczynski (Reading International)

2025Q3: The Noosa cinema project in Queensland is still planned, but the completion is expected around 2028 due to the landlord's town planning phase. - Ellen Cotter(CEO)

Is the Australian cinema development project in Noosa still on track for 2026, and are there any other projected developments? What are the screen count, timing, and milestones for projects moving forward? - Andrzej Matyczynski (Reading International)

2024Q4: Yes. We're still working with the Stockwell development team on the Reading Cinema in Noosa, which is in Queensland, Australia. The project, which includes the cinema are in the town planning phases right now. And so today, we would expect the opening date to be pushed out a year or so, so likely a 2027 opening. - Ellen Cotter(CEO)