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    AMC
    Earnings call· Jun 2026(Q2 FY26)

    AMC ENTERTAINMENT HOLDINGS Q2 FY26 earnings call AMC

    Jul 20, 2026 Source

    Executive summary

    AMC Entertainment Q2 FY26 — Record Revenue and Adjusted EBITDA

    AMC Entertainment delivered a record-breaking second quarter in FY26, achieving all-time high revenue and adjusted EBITDA, significantly exceeding expectations. The company demonstrated strong operating leverage and market share gains, driven by a robust film slate and strategic initiatives. Management highlighted substantial progress in balance sheet strengthening and cost control, positioning AMC for continued profitability and free cash flow generation.

    Highlights

    5

    • Achieved all-time record total revenues of approximately $1.6 billion, up 14.2% year-over-year.

    • Reported all-time record adjusted EBITDA of $321.4 million, surging 70% year-over-year.

    • Generated $190.1 million in free cash flow during the quarter.

    • Increased domestic ticket revenues by 11.4%, outperforming the industry box office growth of 10.7%.

    • Adjusted EBITDA margin expanded by 650 basis points to 20.1%.

    Guidance & targets

    4
    CategoryTargetConfidence
    Net Capital Expenditure
    $200 million and $235 million
    medium materiality
    High
    PLF and XLF Auditorium Expansion
    250 more auditoriums
    medium materiality
    High
    Breakeven Box Office for Annual FCF Positive
    around $10.4 billion
    high materiality
    High
    Target Leverage Level
    around a 3x leverage level
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    United States
    Admissions revenue increased by 11.4%, outperforming the industry box office growth of 10.7%. Adjusted EBITDA increased by 57.5% year-over-year.
    Admissions revenue growth: 11.4% YoYAdjusted EBITDA: $285.6 million
    		—11.4%—$285.6 million
    Europe
    Attendance increased by 17.9% year-over-year, approximately 170 basis points ahead of the relevant industry growth. Adjusted EBITDA increased by 337% to $35.8 million, benefiting from approximately 2% European currency appreciation.
    Attendance growth: 17.9% YoYAdjusted EBITDA: $35.8 millionAdjusted EBITDA growth: 337% YoY
    		—17.9%—$35.8 million

    Operational metrics

    37
    Adjusted EBITDA
    $321.4 millionup 70% YoY
    Q2 FY26

    All-time record adjusted EBITDA for the period April to June 2026, exceeding $300 million for the first time ever.

    Adjusted EBITDA
    $359.7 millionmore than 2.5x the $131.8 million reported in the first half of last year
    H1 FY26

    Adjusted EBITDA for the first 6 months of 2026.

    Incremental revenue to Adjusted EBITDA flow-through
    66%
    Q2 FY26

    Approximately $200 million of incremental revenue generated $131.9 million of additional adjusted EBITDA.

    Adjusted EBITDA vs Q2 2019
    39.5% more
    Q2 FY26 vs Q2 2019

    Generated significantly more adjusted EBITDA in a lower attendance environment compared to pre-pandemic Q2 2019.

    Revenue vs Q2 2019
    6% more
    Q2 FY26 vs Q2 2019

    Generated more revenue compared to pre-pandemic Q2 2019, despite lower attendance.

    Attendance vs Q2 2019
    26.5% less
    Q2 FY26 vs Q2 2019

    Attendance at theaters was approximately 26 million people or 26.5% less than in 2019.

    Debt reduction
    $1.7 billion
    since end of 2020

    Reduced debt by $1.7 billion since the end of 2020.

    Cash on hand (excluding restricted cash)
    $778 million
    end of Q2 FY26

    Cash on hand at the end of Q2 2026.

    Restricted cash
    $42 million
    end of Q2 FY26

    Restricted cash balance at the end of Q2 2026.

    Annual cash interest expense reduction (refinancing)
    $16 million
    annual

    Go-forward annual cash interest expense reduced due to debt refinancing.

    Annual interest expenses reduction (leverage ratio)
    $51 million
    annual

    Lowering of annual interest expenses triggered by improved financial leverage ratios.

    Current leverage level
    less than 6.5xfrom a double-digit leverage level
    Q2 FY26

    Significant improvement in leverage level from double-digits to less than 6.5x in the last 6 months.

    Loyalty program participants (AMC Stubs)
    40 million
    current

    More than 40 million U.S. households have participated in the AMC Stubs loyalty program.

    AMC Stubs members as % of U.S. guest count
    50%
    Q2 FY26

    AMC Stubs members represented just more than 50% of total U.S. guest count.

    A-List members
    1.1 millionmore than double the membership that AMC's A-List had just 5 years ago
    end of Q2 FY26

    Membership in the A-List subscription program.

    A-List members as % of U.S. patrons
    20%
    Q2 FY26

    A-listers were responsible for right around 20% of all AMC theater patrons in the U.S.

    Theaters closed
    225
    since 2020

    Number of non-performing theaters closed since 2020.

    New theaters opened
    66
    since 2020

    Number of new theaters opened since 2020.

    Net reduction in theaters
    159approximately 16% of our global circuit
    since 2020

    Net reduction in global theater count since 2020.

    Premium/enhanced auditoriums added
    270increases the number of premium or enhanced auditorium options available to our guests by more than 50%
    since 2020

    Added 77 premium large format and 193 XL or extra large auditoriums.

    Total PLF/XLF auditoriums globally
    750
    current

    Total number of premium large format and extra large format screens deployed and operating.

    PLF/XLF auditoriums as % of total screen count
    8%
    current

    These auditoriums represent only about 8% of the total screen count but generate significant revenue.

    Movie-themed merchandise revenue target
    $100 million
    FY26

    Expected revenue from movie-themed merchandise for the full year 2026.

    Domestic box office
    $2.99 billionhighest second quarter in 7 years
    Q2 FY26

    Overall industry-wide domestic box office for the second quarter.

    European currency appreciation benefit
    2%
    Q2 FY26

    International revenue and EBITDA benefited from European currency appreciation versus the U.S. dollar.

    G&A expenses benefit from insurance recoveries
    $5.5 millioncredit
    2026

    General and administrative expenses benefited from a credit associated with insurance recoveries.

    ROI on recliner/XL screen upgrades
    30% or more
    current

    Not uncommon to see ROIs achieved of 30% or more, 40% or more, 50% or more on these projects.

    Cost to put an XL Screen in place
    under $20,000
    per screen

    The total cost to create an XL Screen, for which a 10% price premium is achieved.

    Equity offering proceeds (ATM)
    $85 million
    Q2 FY26

    Gross proceeds from a $150 million at-the-market equity offering.

    Equity offering proceeds (Registered Direct)
    $200 million
    recent

    Proceeds from a recently completed registered direct equity offering with institutional investors.

    Total guests
    71 million13.5% more than last year
    Q2 FY26

    Total guests visited theaters worldwide in the second quarter.

    Food, beverage and merchandise sales growth
    15.3%YoY
    Q2 FY26

    Growth in food, beverage and merchandise sales.

    Other revenues growth
    16.1%YoY
    Q2 FY26

    Growth in other revenues.

    Total revenues growth
    16.9%YoY
    H1 FY26

    Total revenues growth combining the first and second quarters of 2026.

    Domestic box office growth
    10.7%YoY
    Q2 FY26

    Overall industry-wide domestic box office growth.

    Guests for The Odyssey weekend
    4.3 million
    The Odyssey weekend

    Number of guests in AMC theaters and ODEON Cinemas from Thursday to Sunday for The Odyssey.

    Admissions revenue per screen growth
    34%YoY
    Q2 FY25

    Admissions revenue per screen growth in the prior year's second quarter.

    Industry KPIs

    2
    MetricValueDetails
    Paid members subscribers1.1 millionmoviegoers
    Content spend title performance$124 millionUSD

    Deals & partnerships

    3
    Various lendersRefinancing of debt due in 2027$400 millionextended by 4 years

    Successfully refinanced $400 million of debt that was due in 2027, extending its maturity by 4 years.

    Various holdersElimination of exchangeable debt through conversion to equity$100 million

    Eliminated approximately $100 million of exchangeable debt that was due in 2030 through its conversion into equity.

    Holders of 6.125% senior subordinated notesRedemption of senior subordinated notes$125.5 million

    Exercised the right to redeem the remaining $125.5 million of 6.125% senior subordinated notes due in 2027, with redemption expected on July 24, 2026.

    What to watch in Q3 FY26

    4

    PLF/XLF Auditorium Expansion Progress

    next 2 to 4 years
    Current750 auditoriums globally
    TargetProgress towards 250 more auditoriums

    Why it matters

    Expansion of high-revenue-generating premium formats is key to continued outperformance and margin expansion.

    I think that we can affordably increase that total count of our PLFs and XLFs by 250 more auditoriums over the next 2 to 4 years.

    Q&A highlights

    7

    How sustainable is the Q2 cost discipline in the second half, and would continued revenue growth drive similar operating leverage?

    Adam Aron acknowledged that some Q2 cost containment might have been one-time, but emphasized a continued "maniacal" focus on cost control and maximizing revenue growth. He noted that while a 700 basis point EBITDA margin improvement might not recur every quarter, the company aims to drive revenue growth faster than expense growth.

    “We're going to be maniacal and continuing to try to keep our cost down.”

    asked by Michael Hickey · answered by Adam Aron

    2 min read7 chapters

    Detailed Narrative

    01

    Record-Breaking Q2 Performance

    AMC achieved its highest quarterly revenue and adjusted EBITDA in its 106-year history, with revenue reaching approximately $1.6 billion and adjusted EBITDA surging to $321.4 million. This performance was driven by a strong film slate, increased attendance, and effective cost management, leading to a 650 basis point improvement in adjusted EBITDA margin to 20.1%.

    02

    Strategic Outperformance and Market Share Gains

    Despite an industry-wide domestic box office bump of 10.7%, AMC's domestic ticket revenues grew by 11.4%, indicating market share expansion. European attendance also increased by 17.9% year-over-year, with adjusted EBITDA more than quadrupling in the region, showcasing broad-based global strength.

    03

    Balance Sheet Strengthening and Debt Reduction

    The company significantly improved its balance sheet, reducing debt by $1.7 billion since the end of 2020. Recent actions include refinancing $400 million of 2027 debt, eliminating $100 million of exchangeable debt, and redeeming $125.5 million of 2027 notes, resulting in no material debt principal payments before 2029 and an expected $67 million reduction in annual interest expenses.

    04

    Loyalty Programs and A-List Success

    AMC's loyalty programs, including AMC Stubs (over 40 million U.S. households) and A-List (over 1.1 million members), are critical for guest engagement and consistent patronage. A-List members, particularly Gen Z, represented approximately 20% of U.S. patrons in Q2, driving predictable attendance and food & beverage sales.

    05

    Premium Offerings and Auditorium Strategy

    AMC continues to expand its premium large format (PLF) and extra-large format (XLF) screens, which currently number around 750 globally. These auditoriums, representing only 8% of total screens, generated over 50% of THE ODYSSEY's ticket gross, demonstrating their significant revenue-generating power and commanding higher price premiums. The company plans to add 250 more PLF/XLF auditoriums over the next 2-4 years.

    06

    Cost Discipline and Operating Leverage

    Management emphasized rigorous cost control, which, combined with rising revenues, led to substantial operating leverage. The company's ability to maintain costs while growing revenue at a faster pace was a key factor in achieving record adjusted EBITDA, with a flow-through of approximately 66% from incremental revenue to adjusted EBITDA.

    07

    Optimized Portfolio and High-Return Investments

    AMC has strategically closed 225 non-performing theaters and opened 66 new ones since 2020, resulting in a net reduction of 159 locations. Concurrently, it added 77 PLF and 193 XL auditoriums, increasing premium options by over 50%. These portfolio optimizations and high-return investments, often co-funded by partners, yield ROIs of 30-50% or more.

    AI-generated summary of the company’s earnings call. Not investment advice.