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AMC ENTERTAINMENT HOLDINGS, INC. (AMC)·Q2 2025 Earnings Summary

Executive Summary

  • AMC delivered a significantly stronger quarter: revenue rose 35.6% year over year to $1.40B and Adjusted EBITDA surged to $189.2M, nearly 5x Q2 2024; diluted loss per share improved to $(0.01) .
  • Results were above Wall Street consensus: revenue beat by ~$56M, EPS beat by ~$0.05, and EBITDA beat by ~$36M; strength was driven by box office recovery, premium formats, and pricing/yield actions. Bold operational records in per-patron metrics validated strategy .
  • Management highlighted near-term dynamics: “so‑so” Q3 due to seasonality, but expects the “strongest quarterly box office in six years” in Q4; CFO anticipates nine months free cash flow positive for 2025 assuming box office tracks expectations .
  • Strategic catalysts: July refinancing added ~$244M new cash, equitized at least $143M debt and pushed 2026 maturities to 2029, materially strengthening liquidity and runway into a robust 2025/2026 slate .

What Went Well and What Went Wrong

  • What Went Well

    • Box office and operations: Attendance up 25.6% YoY to 62.8M; total revenue +35.6% to $1,397.9M; Adjusted EBITDA +$150.7M YoY to $189.2M; operating cash flow swung to +$138.4M from $(34.6)M .
    • Record per‑patron metrics: admissions per patron $12.14; F&B per patron $7.95; contribution margin per patron $14.48 . CEO: “as AMC’s revenues grow, our EBITDA can soar” .
    • Premium strategy traction: premium auditoriums running at ~3x occupancy of regular and earn price premiums; accelerated rollout of IMAX Laser, Dolby Cinema, Prime, iSense, XL, and laser projection .

  • What Went Wrong

    • Interest burden persists: corporate borrowing interest expense rose to $109.6M in Q2; total other expense turned to $96.1M (vs. prior year benefit) weighing on net income .
    • Q3 caution: management flagged seasonal softness and tough comps, tempering near-term expectations before a strong Q4 rebound .
    • First half cash burn context: six months operating cash flow was $(231.6)M despite Q2 improvement; free cash flow for six months was $(328.1)M, underscoring uneven intra-year cash generation .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$1,306.4 $862.5 $1,397.9
Diluted EPS ($USD)$(0.35) $(0.47) $(0.01)
Adjusted EBITDA ($USD Millions)$164.8 $(58.0) $189.2
EBITDA Margin %11.86%*-7.78%*12.18%*
Net Income Margin %-10.38%*-23.43%*-0.34%*
EBIT Margin %5.87%*-16.60%*6.61%*
Gross Profit Margin %19.17%*0.01% 18.88%*

Items marked with * are Values retrieved from S&P Global.

Actual vs. Consensus – Q2 2025

MetricConsensus EstimateActual ReportedSurprise
Revenue ($USD Millions)$1,341.8*$1,397.9 +$56.1M; Beat
Primary EPS ($USD)$(0.061)*$(0.01) +$0.051; Beat
EBITDA ($USD Millions)$153.4*$189.2 (Adj. EBITDA) +$35.8M; Beat
Revenue – # of Estimates7*——
EPS – # of Estimates6*——

Items marked with * are Values retrieved from S&P Global.

Segment Breakdown

SegmentQ2 2024Q2 2025
U.S. Revenues ($M)$815.9 $1,114.2
International Revenues ($M)$214.7 $283.7
U.S. Adjusted EBITDA ($M)$55.4 $181.0
International Adjusted EBITDA ($M)$(16.9) $8.2
U.S. Attendance (000s)36,493 46,889
International Attendance (000s)13,520 15,918

Key KPIs

KPIQ2 2024Q1 2025Q2 2025
Average Ticket Price (Consolidated, $)$11.29 $11.30 $12.14
F&B Revenue per Patron (Consolidated, $)$7.34 $6.76 $7.95
Contribution Margin per Patron (Consolidated, $)$13.76 $14.33 $14.48
Attendance (000s)50,013 41,903 62,807

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
CapEx (less landlord contributions)FY 2025Not provided$175M–$225M Introduced
Free Cash Flow outlook9 months ending Dec 2025Not providedExpect positive FCF, contingent on box office performing in line with expectations Introduced
Box Office outlookQ3 2025Not provided“Some seasonal… softness” Introduced
Box Office outlookQ4 2025Not provided“May see the strongest quarterly box office in six years” Introduced
Capital structure2026 maturities2026 maturities outstanding“Addressed… pushing them out to 2029”; ~$244M new cash; equitized ≥$143M debt Improved / De-risked

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
Pricing & yield managementFocus on value programs; premium formats expansion 50% Off Tuesdays & Wednesdays for Stubs; higher pricing Thu–Mon; weekend avg ticket >$14; premium formats drive willingness to pay Strengthening price realization, targeted discounts
Premium formats & laserGo Plan to expand PLF/XL; IMAX/Dolby partnerships; XL rollouts Premium screens ~3x occupancy; adding IMAX Laser, +23 Dolby Cinema screens in 2025–2026; XL expanding to ~150 by YE 2025 and ~350 by YE 2026; >55% of U.S. screens with laser by YE 2025 Accelerating premium footprint
Food & beverageStrong per-patron F&B growth; menu expansion All-time high F&B per patron ($7.95); increased incident rate and units per transaction; themed drinks and wide flavor selection Mix & units per visit rising
Capital structure / liquidityDebt reduction in 2024; cash reserves strengthened Refinancing closed: ~$244M new cash; 2026 maturities addressed; equitization ≥$143M; litigation resolved; ~90% term loan support Liquidity runway improved
AI / technologyTech upgrades (projection, formats) AI deployed across dev/testing, marketing images, AP automation, demand planning; exploring small investments in AI firms tied to entertainment Emerging internal use & investment optionality
Macro / regulatoryRisks noted: tariffs, shrinking windows, competition Continued risk disclosures including tariffs and AI impacts on filmmaking Risk set unchanged

Management Commentary

  • Adam Aron (CEO): “Impressive operating leverage… as AMC’s revenues grow, our EBITDA can soar.”
  • “Premium auditoriums are operating at close to three times the occupancy of a regular auditorium and command a healthy price premium.”
  • On future slate: expects a “sustained and powerful resurgence,” with Q4 2025 exceptionally strong and 2026 “considerably larger than 2025” .
  • Sean Goodman (CFO): “Adjusted EBITDA margin in Q2 2025 was almost 1,000 basis points above last year’s second quarter… we don’t need pre‑pandemic attendance to achieve pre‑pandemic adjusted EBITDA” .
  • On CapEx and FCF: FY25 CapEx $175–$225M; anticipate nine months FCF positive, subject to box office .

Q&A Highlights

  • Pricing strategy and F&B: Expanded 50% Off Tue/Wed for Stubs; price increases on other days; strong PLF demand supports price premiums; F&B focus on variety and incident rate increases .
  • Pre‑show advertising (NCM): Added five minutes to align with ScreenVision and a one‑minute platinum spot; plan to streamline AMC marketing/trailer lengths to balance experience while preserving ad revenue .
  • Circuit optimization: Continued closure of underperformers and opening of high‑grossing A‑locations; potential M&A adds at attractive multiples over next 36 months .
  • Tax shields: Benefit from depreciation and interest deductions (based on EBITDA) more impactful in future years after NOLs (post‑2026) .

Estimates Context

  • Q2 2025 revenue beat consensus by ~$56M, EPS beat by ~$0.05, and EBITDA (company Adjusted EBITDA) exceeded consensus by ~$36M, driven by box office recovery, premium format occupancy and strategic pricing/yield actions .
  • FY 2025 estimates imply revenue of ~$4.98B* and EBITDA of ~$474M*, which may need upward revision if Q4 delivers the “strongest quarterly box office in six years” and per‑patron metrics remain near record highs .
  • Consensus recommendation text was unavailable*, while the target price consensus was ~$3.21*.

Items marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Q2 confirms AMC’s operating leverage; per‑patron records and premium pricing support margin resilience even without full attendance recovery .
  • Near-term trading: expect Q3 seasonality to moderate momentum, but Q4 slate and premium capacity utilization are catalysts; positioning ahead of Q4 could capture upside .
  • Medium-term thesis: refinancing extends maturities, adds liquidity, and improves debt mix—de‑risking execution into 2026 where management sees larger box office .
  • Pricing strategy and loyalty flywheel: 50% Off Tue/Wed drives Stubs acquisition/engagement, while price realization grows on peak days; monitor average ticket and F&B per‑patron trajectory .
  • Watch estimate revisions: Following beats and bullish Q4 commentary, Street may raise Q4/FY25 revenue and EBITDA; track per‑patron KPIs and premium occupancy as leading indicators .
  • Risk monitor: interest expense and total other expense volatility, macro box office variability, and content pipeline; tariff and AI production risks persist per filings .
  • Strategic optionality: premium expansion (IMAX/Dolby/XL/Laser) and emerging AI use/investments can drive differentiated experience and efficiency gains .