Executive Summary

Q2 FY2025 delivered broad-based improvement: total revenues $206.0M (+17.0% YoY), operating income $13.0M (vs. $2.2M), net earnings $7.3M and diluted EPS $0.23, with Adjusted EBITDA $32.3M (+46.9% YoY) .
Versus S&P Global consensus, MCS posted an EPS beat ($0.23 vs. $0.19), a slight EBITDA beat ($30.33M vs. $30.11M), but missed revenue on the “before cost reimbursements” basis ($195.7M actual vs. $203.3M)*; company-reported total revenues were $206.0M .
Theatres led with revenue +29.8% YoY and segment Adjusted EBITDA +76% YoY; Hotels & Resorts were resilient despite Hilton Milwaukee renovation, with RevPAR -2.9% and ADR +5%, occupancy 67.3% .
Management raised the quarterly dividend to $0.08 (+14%) post-quarter and reiterated FY2025 capex of $70–$85M, liquidity >$214M, and net leverage ~1.6x, supporting capital returns and selective investment .

What Went Well and What Went Wrong

What Went Well

Theatres: revenue $131.7M (+29.8% YoY) and Adjusted EBITDA $26.5M (+76.2% YoY), driven by stronger film quality/quantity and attendance; top films included A Minecraft Movie, Lilo & Stitch, Sinners, How To Train Your Dragon, Thunderbolts* .
Ticket and concessions metrics improved: average ticket price +2.0% (PLF mix), concession per person +3.1%, attendance +26.7% YoY; record Memorial Day weekend cited .
Hotels: ADR +5% and group/catering strength offset room displacement; all 554 Hilton Milwaukee rooms returned to service end of June, positioning portfolio for summer/convention season .
Quote: “It was a strong quarter…significant growth in revenue, operating income, net earnings and Adjusted EBITDA” — Greg Marcus (CEO) .
Quote: “Momentum continued…with strong performances from Jurassic World Rebirth and Superman” — Mark Gramz (President, Marcus Theatres) .

What Went Wrong

Theatres admissions trailed national box office growth by ~7ppts due to value-focused pricing (less blockbuster surcharges) and weaker film performance in Midwest vs. coasts .
Hotels RevPAR -2.9% YoY, occupancy -5.4ppts, with Hilton Milwaukee renovation causing displacement during peak periods; hotels underperformed competitive set by 5.8ppts before adjusting for renovation impact .
Cash from operations was $31.6M vs. $36.0M YoY (-$4.3M) due to timing of payables and annual payments .
Analyst concern: need to implement blockbuster surcharges and normalize matinee pricing to lift ATP; management began surcharges late in Q2 and moved Everyday Matinee from $7 to $7.50/$8.50 .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$188.3	$148.8	$206.0
Revenues (before cost reimbursements) ($USD Millions)	$178.1	$138.9	$195.7
Operating Income ($USD Millions)	$(2.2)	$(20.4)	$13.0
Net Earnings ($USD Millions)	$1.0	$(16.8)	$7.3
Diluted EPS ($)	$0.03	$(0.54)	$0.23
Adjusted EBITDA ($USD Millions)	$25.9	$(0.3)	$32.3
Net Income Margin % (Net/Total Rev)	0.5%	-11.3%	3.6%
EBIT Margin % (Op Inc/Total Rev)	-1.2%	-13.7%	6.3%

Segment breakdown (Q2 YoY):

Segment	Q2 2024 Revenues ($M)	Q2 2025 Revenues ($M)	Δ YoY	Q2 2024 Adj. EBITDA ($M)	Q2 2025 Adj. EBITDA ($M)	Δ YoY
Theatres	$101.5	$131.7	+29.8%	$15.1	$26.5	+76.2%
Hotels & Resorts	$74.5	$74.3	-0.3%	$11.4	$11.2	-1.8%
Corporate Items	$0.08	$0.11	+36.7%	$(4.5)	$(5.5)	-

KPIs:

KPI	Q2 2024	Q2 2025
Same-store attendance (Theatres)	—	+26.7% YoY
Avg ticket price (Theatres)	—	+2.0% YoY
Concession per person (Theatres)	—	+3.1% YoY
Hotels RevPAR	—	-2.9% YoY
Hotels ADR	—	+5.0% YoY
Hotels occupancy	—	67.3%

Cash flow and balance sheet (Q2):

Cash from operations $31.6M; capex $16.9M; ending cash $14.9M .
Long-term debt $170.1M; equity $448.4M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures ($)	FY2025	$70–$85M (reiterated)	$70–$85M	Maintained
Pricing — Everyday Matinee	Q3 onward	$7.00	$7.50; select films $8.50	Raised
Pricing — Blockbuster surcharge	Q3 onward	Limited use	~$1 on select high-demand films	Introduced/Expanded
Dividend per share	From Sep 15, 2025	$0.07	$0.08	Raised
Liquidity	As of Q2	—	>$214M total liquidity	Informational
Net leverage	As of Q2	—	~1.6x	Informational

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Pricing strategy (value vs. surcharges)	Emphasis on attendance, value programs; ATP headwinds	Begin blockbuster surcharges; Everyday Matinee increased	Shifting to balanced price/attendance
Content slate quality/quantity	Stronger H2’24 slate; anticipated 2025 films	Diverse blockbusters driving attendance; strong Q3/Q4 pipeline	Improving slate cadence
Digital/technology for F&B	Early digital ordering focus to reduce lines and lift basket	Added walk-up concessions and self-serve soda; streamline labor	Execution progressing
Hotels renovation impact	Hilton Milwaukee renovation underway	Rooms completed; meeting/lobby spaces to finish by year-end	Headwind easing
Macro/industry outlook	Hotels stable but rising uncertainty; group pace solid	Stability continues; prepared for softness; group pace 2026 +20%	Cautiously stable
Tariffs/policy sensitivity	“Do no harm” commentary on industry fragility	No new policy impacts noted in Q2	Neutral

Management Commentary

“Marcus Theatres led the way…significant improvements in both the quality and quantity of new films drove marked increases in attendance.” — Greg Marcus (CEO) .
“Our pricing strategies…focus on driving attendance and ancillary revenue…we began implementing surcharges on select high-demand blockbusters at the end of the second quarter.” — Chad Paris (CFO) .
“All 554 guest rooms [Hilton Milwaukee] are now fully renovated and available…While leisure travel is seeing some industry-wide softening, group demand…remains strong.” — Michael R. Evans (President, Hotels & Resorts) .
“We continue to expect capital expenditures for Fiscal 2025 of $70–$85 million…We ended the second quarter with…over $214 million in total liquidity…net leverage of 1.6 times.” — Chad Paris (CFO) .

Q&A Highlights

Pricing uplift: Everyday Matinee moving to $7.50/$8.50; blockbuster surcharges around $1, applied selectively, intended to boost admission per cap while still prioritizing attendance .
Hotels group pace and convention tailwinds: 2026 group room pace ~20% ahead YoY; Milwaukee convention center expansion anecdotal positives; renovated meeting spaces support share gains .
Box office outlook: H2 has tough comps but expected strength at year-end with Wicked and Avatar; company benefits from calendar change adding the week between Christmas and New Year’s .
Capex trajectory: Heavy reinvestment cycle in hotels peaking in 2025 (Hilton ~$40M); step-down to more “normal” run rate from 2026 while maintaining selective theatre ROI projects .

Estimates Context

Q2 FY2025 vs. S&P Global consensus: EPS $0.23 vs. $0.19 (beat); EBITDA $30.33M vs. $30.11M (beat); Revenue (before cost reimbursements) $195.7M vs. $203.3M (miss)* .
Prior quarters: Q1 FY2025 revenue $138.9M actual vs. $140.1M est (miss); EPS -$0.54 actual vs. -$0.52 est (miss); EBITDA -$4.40M actual vs. -$1.35M est (miss). Q4 FY2024 revenue $178.1M actual vs. $183.0M est (miss); EPS $0.03 actual vs. $0.11 est (miss); EBITDA $21.61M actual vs. $24.05M est (miss).
Values retrieved from S&P Global.*

Metric	Q4 2024 Estimate	Q4 2024 Actual	Q1 2025 Estimate	Q1 2025 Actual	Q2 2025 Estimate	Q2 2025 Actual
Revenue (before reimbursements) ($)	$183.0M*	$178.1M	$140.05M*	$138.9M	$203.31M*	$195.7M
Primary EPS ($)	$0.11*	$0.03	$(0.52)*	$(0.54)	$0.1933*	$0.23
EBITDA ($)	$24.05M*	$21.61M*	$(1.35)M*	$(4.40)M*	$30.11M*	$30.33M*

Note: S&P’s “Revenue Consensus Mean” aligns to “Revenues before cost reimbursements”; company highlights “Total revenues.” EBITDA from S&P may differ from company’s Adjusted EBITDA (non-GAAP) .

Key Takeaways for Investors

Theatres momentum is real: attendance and per-cap metrics improved; pricing optimization (surcharges, matinee increases) should lift ATP and margins in H2 without sacrificing attendance-driven ancillary revenue .
Hotels renovation headwind is fading: full room inventory back at Hilton Milwaukee; ADR strength and group pace support stable earnings mix despite leisure softening .
Near-term trading: EPS/EBITDA beats vs. consensus may support sentiment; revenue miss on S&P definition could cap upside—watch investor focus on total revenues vs. “before reimbursements” .
Medium-term thesis: capex rolls down in 2026, improving FCF potential; management willing to return excess capital via dividends/buybacks (dividend raised to $0.08) .
Box office cadence and Midwest mix matter: continued diverse slate into Q3/Q4 (Wicked, Avatar) plus pricing changes should aid ATP recovery; monitor Midwest-relative performance vs. coastal-heavy peers .
Balance sheet remains a support: liquidity >$214M, net leverage ~1.6x provides flexibility for selective M&A/ROI projects and shareholder returns .
Watch KPIs: admission per cap, concessions per cap, Hotels RevPAR/ADR/occupancy trajectories, and execution of pricing/digital F&B initiatives for margin expansion .

MARCUS CORP (MCS)·Q2 2025 Earnings Summary