Record Adjusted EBITDA
Adjusted EBITDA reached a post-pandemic Q1 record of $38.3M, an improvement of $96M year-over-year, driven by operating leverage as revenues rose.
AMC Entertainment
· AMC
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- +25.79%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call emphasized strong operational and financial progress: a substantial YoY adjusted EBITDA improvement ($96M), robust box office recovery (NA box office +22% YoY), attendance growth (+13.6% YoY), record per‑patron metrics, meaningful balance-sheet actions (refinancing, debt-to-equity conversion, ~$101M capital raise) and new revenue initiatives (Arena 1, merchandising and stronger studio window discipline). Headwinds include seasonal Q1 cash usage, remaining sizable debt and interest costs, ongoing CapEx, footprint pruning, and execution risks tied to new products and continued slate performance. Overall, the positives (record profitability, revenue and per-patron gains, liquidity and strategic initiatives) materially outweigh the listed challenges.
Company Guidance
Management guided to a stronger 2026 driven by rising revenues and operating leverage, reiterating expectations for a record post‑pandemic full‑year box office (management said industry box office could be $500 million to $1.2 billion higher than 2025) and continued revenue growth; they pointed to Q1 proof points—47.6 million global guests (+13.6% YoY), North American box office +22% YoY, consolidated Q1 revenue >$1 billion, adjusted EBITDA up $96 million YoY to a Q1 post‑pandemic record of $38.3 million, contribution margin per patron $15.19 (+6% YoY, +57% vs Q1 2019), domestic total revenue per patron +53% vs Q1 2019 and domestic contribution margin per patron +67% vs Q1 2019 (international revenue per patron +34.5% vs Q1 2019; +31.4% constant currency); they reiterated 2026 CapEx guidance of $175–$225 million (net of lease incentives), reported cash of $339 million (excl. $42 million restricted), ~$101 million raised in Q1 (ATM + Hycroft sales, including ~$30 million realized from Hycroft in Q1 and ~$54 million total realized vs $27.9 million invested), refinanced $400 million maturing 2027 debt into a $425 million first‑lien term loan at 10.5% due 2031, announced conversion of ≈$155.8 million exchangeable notes to equity (reducing long‑term debt to ~ $3.9 billion), and plans to expand premium offerings (e.g., 225 IMAX at AMC, 181 Dolby Cinema, ~3,543 laser‑at‑AMC screens, 168 XL screens, 83 iSense Odeon auditoriums) plus launch Arena 1 live concerts in >300 U.S. locations (and ~260 Odeon sites in 9 European countries) to drive incremental attendance and revenue.
Strong Box Office Recovery (North America)
North American box office surged ~22% year-over-year in Q1 2026; management expects full-year 2026 box office could be $500M–$1.2B higher than 2025.
Attendance and Revenue Milestones
Global attendance was 47.6M guests in Q1 (up 13.6% YoY). Consolidated Q1 revenue exceeded $1.0B for the first time since 2019.
Per-Patron Profitability Improvements
Consolidated contribution margin per patron rose 6% YoY to $15.19 and is 57% higher than Q1 2019. Domestic total revenue per patron up 53% vs Q1 2019 and domestic contribution margin per patron up 67% vs Q1 2019.
International Revenue and Margin Gains (Ex- and In-CC)
International revenue per patron up 34.5% vs Q1 2019 (31.4% in constant currency); international contribution margin per patron up 38.6% vs Q1 2019 (35.4% in constant currency). Foreign exchange added ~10.8% to international results year-over-year.
Balance Sheet Liquidity Actions
Raised approximately $101M in Q1 via ATM offering plus Hycroft sales (including ~$30M realized in Q1); sold Hycroft holdings for total proceeds of ~$54M (above the $27.9M invested). Ended Q1 with $339M cash (excl. $42M restricted).
Debt Refinancing and Deleveraging Steps
Refinanced $400M of 2027 debt into a $425M first-lien term loan at 10.5% due 2031 (lowered cash interest). Announced conversion of ~$155.8M senior secured exchangeable notes into equity and noted long-term debt reduced to about $3.9B from much higher earlier levels.
Product & Revenue Diversification – Arena 1 Launch
Announced 'Arena 1 at AMC' live interactive concert product launching June across ~300+ U.S. locations and later in ~260 Odeon theaters in Europe; rev-share model with expected ticket price range ~$40–$75 and minimal upfront AMC capex.
Studio Window Recoveries & Netflix Collaboration
Renewed industry momentum on longer theatrical windows (studios committing to ~45-day windows); Netflix committed to a global theatrical release of Greta Gerwig's Narnia with a 49-day window (Feb 2027), expanding studio-theater collaboration.
Labor Peace & Content Slate Visibility
Multiyear labor agreements with SAG-AFTRA and WGA achieved, removing strike risk; management highly optimistic on a strong 2026 slate with multiple expected blockbusters and sustained momentum into H2.
Premium Formats and Loyalty Strength
Premium formats continue to drive outsized revenues (example: ~48% of revenues in a recent opening weekend from PLF despite <10% of screens). Loyalty growth: A-List surpassed 1M members; Stubs loyalty program has ~39M member households.
Merchandising Upside
Merchandising scaled from near-zero to roughly $100M in 2025; management sees potential for ~20% annual growth, with additional upside from Arena 1 and concert merchandising.
Operator
Hello, and welcome, everyone, joining today's AMC Entertainment Holdings First Quarter 2026 Results Call. [Operator Instructions] Please note this call is being recorded. It is now my pleasure to turn the meeting over to John Merriwether, Vice President, Capital Markets. Please go ahead.
John Merriwether
Thank you, Leo. Good afternoon. I'd like to welcome everyone to AMC's First Quarter 2026 Earnings Webcast. With me this afternoon is Adam Aron, our Chairman and CEO; and Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, I'd like to remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on management's current expectations. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-K and 10-Q. Several of those factors that will determine the company's future results are beyond the ability of the company to control or predict.
In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned against relying on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. On this webcast, we may reference non-GAAP financial measures such as adjusted EBITDA and constant currency, among others. For a full reconciliation of our non-GAAP measures to GAAP res...
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