Executive Summary

Q3 2025 headline EPS of $0.52 beat consensus, though the beat was driven by a $0.10 per-share insurance gain; excluding the gain, EPS was ~$0.42, roughly in line. Revenue (pre-reimbursements) missed consensus as a softer film slate weighed on Theatres, while Hotels outperformed local comps despite a tough RNC lap . Revenue vs. consensus and EPS consensus from S&P Global estimates are shown below (values with asterisks) (see Estimates Context).
Theatres: admissions -15.8% and attendance -18.7% YoY on mix lacking family tentpoles; pricing actions lifted average ticket price +3.6% and concessions per patron +2.1%. Hotels: RevPAR -1.5% YoY on ADR normalization vs. RNC, but occupancy +1.7ppt and competitive set outperformance by 5.2ppts .
Capital allocation: repurchased ~0.6M shares for $9.0M; Board added 4.0M shares to authorization (4.7M total available). Liquidity >$214M; net leverage 1.7x; CapEx 2025 guided to $75–$85M (up from $70–$85M), stepping down to ~$50–$55M in 2026. Dividend of $0.08/share declared Nov 5, 2025 .
Setup: holiday slate includes Wicked: For Good and Zootopia 2 with presales strong; 2026 slate notably more franchise- and family-heavy, a favorable mix for MCS’s Midwest footprint. Management sees stronger free cash flow in 2026 as CapEx normalizes, and has incremental buyback capacity as a catalyst .

What Went Well and What Went Wrong

What Went Well
- Hotels outperformed competitive sets by 5.2 ppts as group business and renovated assets drove resilience despite ADR normalization vs. last year’s RNC impact . “We continue to capitalize on the strength in group business…particularly strong at our newly renovated properties” — Michael R. Evans, President, Hotels .
- Pricing initiatives supported per-cap growth: average ticket price +3.6% and concessions per patron +2.1% YoY, helped by blockbuster surcharges and Everyday Matinee adjustments .
- Capital return: $9.0M buybacks in Q3; new authorization for up to 4.0M additional shares, bringing 4.7M shares available; cumulative >$25M returned in last four quarters .
What Went Wrong
- Theatres’ film mix lacked a breakout tentpole and family content, leading to admissions -15.8% and attendance -18.7% YoY; division revenue -16.6% and Adj. EBITDA -33.4% YoY .
- Consolidated revenue (pre-reimbursements) -10.2% YoY and operating income -30.7% YoY; Adj. EBITDA -22.6% YoY as Theatres volume pressure outweighed Hotels’ stability .
- Revenue missed Street (basis consistent with pre-reimbursement “Revenues”) given softer film slate; Q3 Hotels RevPAR -1.5% YoY from ADR normalization vs RNC .

Financial Results

Headline P&L (GAAP/Company metrics)

Metric	Q3 2024	Q2 2025	Q3 2025
Total revenues ($m)	232.668	206.043	210.151
Revenues, pre-reimbursements ($m)	222.276	195.672	199.516
Operating income ($m)	32.782	13.007	22.731
Net earnings ($m)	23.314	7.321	16.230
Diluted EPS ($)	0.73	0.23	0.52
Adjusted EBITDA ($m)	52.275	32.267	40.446
Adj. EBITDA addendum (insurance gain impact)	—	—	Net earnings included ~~$3.0M insurance gain (~~$0.10/share)

Margins (S&P Global data; company-reported basis differs from consensus methodology)

EBITDA Margin %: Q3’24 22.38%; Q2’25 15.50%; Q3’25 19.57%
EBIT Margin %: Q3’24 14.61%; Q2’25 6.51%; Q3’25 11.13% Values retrieved from S&P Global.

Versus Estimates (S&P Global consensus; same basis for revenue as “Revenues” pre-reimbursements)

Metric	Consensus	Actual	Surprise
Revenue (pre-reimbursements, $m)	207.041*	199.516	-3.6% (miss)*
Primary EPS ($)	0.415*	0.52	+$0.10 (beat); ex-$0.10 insurance ≈ $0.42 (~in line)
Values retrieved from S&P Global.

Segment Detail (Q3)

Segment (Q3)	Q3 2024 Revenue ($m)	Q3 2025 Revenue ($m)	Q3 2024 Op Inc ($m)	Q3 2025 Op Inc ($m)	Q3 2024 Adj. EBITDA ($m)	Q3 2025 Adj. EBITDA ($m)
Theatres	143.843	119.941	21.761	12.331	33.187	22.106
Hotels & Resorts	88.738	90.129	17.041	16.356	23.074	23.144
Corporate & Other	0.087	0.081	(6.020)	(5.956)	(3.986)	(4.804)

KPIs

KPI	Q3 2024	Q3 2025
Theatres same-store admissions revenue YoY	—	-15.8%
Theatres same-store attendance YoY	—	-18.7%
Avg ticket price YoY	—	+3.6%
Concession revenue per patron YoY	—	+2.1%
Hotels RevPAR YoY	—	-1.5%
Hotels occupancy (owned hotels)	—	78.4%
Hotels ADR YoY	—	-3.6% (RNC impact prior-year)
Hotels outperformance vs comp set	—	+5.2 ppts

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY 2025	$70–$85M (Q2 call)	$75–$85M (Q3 call)	Raised low end
Capital Expenditures	FY 2026	Qualitative step-down expected (Q2 call)	~$50–$55M preliminary	Introduced quantitative range
Share Repurchase Authorization	Ongoing	~0.7M shares remaining under prior auth. as of 9/30/25	+4.0M added (4.7M total available)	Increased capacity
Leverage Target	Ongoing	Not previously stated	Comfortable to ~2.25x–2.5x; current 1.7x	Clarified tolerance
Dividend	Next pay date	—	$0.08/share declared, payable Dec 15, 2025	Maintained payout

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Film slate quality/mix	Softer Q1 slate; optimism into Q2 with Minecraft/Sinners kickstarting summer	Broad-based strength; 32 wide releases; diversity of content	Lacked breakout tentpole; light family mix hurt Midwest markets	Mixed-to-improving into holiday/2026
Pricing strategy (tickets)	Everyday Matinee, Value Tuesday promos depressed ATP	Began blockbuster surcharges; Everyday Matinee to $7.50/$8.50; tailwind from annualization	Pricing uplift continued; ATP +3.6%; per caps improving; expect continued growth	Positive ATP momentum
Concessions/merch	Concessions per cap +2.9%	Concessions per cap +3.1%; merchandise growth (lower margin)	Concessions per cap +2.1%; no consumer pullback seen	Stable demand
Hotels group/leisure	Group growth; renovations underway	Group stable; five of seven hotels ADR growth; Hilton renovation nearing completion	Group strength drove F&B revenue; occupancy +1.7ppt; outperformed comps	Solid/stable
RevPAR/comp sets	—	Underperformed comps ~5.8ppts due to Hilton renovation	Outperformed comps +5.2ppts; RevPAR -1.5% on ADR normalization vs RNC	Improving vs comps
CapEx	Elevated due to hotel projects	FY25 $70–$85M; 2026 step-down expected	FY25 $75–$85M; 2026 ~$50–$55M	FCF tailwind 2026
Capital returns	$7.1M buybacks in Q1	Ongoing balanced approach	$9.0M in Q3; +4.0M share auth. increase; dividend continued	More capacity
Leverage/M&A	—	Liquidity >$214M; net leverage 1.6x	Net leverage 1.7x; comfortable to 2.25–2.5x; opportunistic M&A vs buybacks	Capacity available

Management Commentary

“Marcus Hotels & Resorts led the way…delivering revenue growth and overcoming a tough comparison to last year’s third quarter, which significantly benefitted from the impact of the Republican National Convention in Milwaukee.” — Gregory S. Marcus, CEO .
“We expect these dynamics to be short-lived, with presales of Wicked: For Good trending over three times ahead of pre-sales for last year’s Wicked…including family-friendly titles that tend to play well in our markets.” — Mark A. Gramz, President, Marcus Theatres .
“We now expect capital expenditures for fiscal 2025 of $75 to $85 million…we see a meaningful step down in capital expenditures in 2026…approximately $50 to $55 million.” — Chad Paris, CFO .
“Our board of directors has approved a 4 million share increase in our current repurchase authorization…In the absence of growth investments with attractive returns, we will continue to use this authorization to opportunistically repurchase shares.” — Gregory S. Marcus .

Q&A Highlights

Leverage and M&A: Comfortable flexing to ~2.25x–2.5x net leverage for actionable M&A; would not issue equity at current valuation; balanced use of debt/buybacks based on opportunity .
Pricing: Blockbuster surcharges and Everyday Matinee changes expected to provide admission per-cap tailwind; no major new pricing changes beyond annualization of Q3 actions .
Concessions demand: No evidence of consumer pushback; stable hit rates and basket sizes; merchandise attach supporting per-cap growth .
Hotels pacing: 2026 group room pace ~14% ahead YoY; banquet and catering also ahead; some markets see leisure softening but portfolio resilient .
Leadership transition: President of Theatres retiring March 2026; search underway; expect fresh ideas but no wholesale strategic change .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue (pre-reimbursements) $199.5M vs $207.0M consensus (miss); Primary EPS $0.52 vs $0.415 consensus (beat), but ex-$0.10 insurance gain ≈ $0.42, roughly in line. Q4 2025 consensus revenue ~$193.9M and EPS ~$0.17 set the near-term bar; 2026 shows expected seasonal dip in Q1 before a stronger Q2 .
Target price consensus stood at ~$23.25 across the periods observed*. Values retrieved from S&P Global.

Key Takeaways for Investors

Hotels resilience and renovated assets are offsetting Theatres softness from an unfavorable Q3 slate; film mix turns more favorable into holidays and especially 2026 (family-heavy franchises), a positive setup for MCS’s Midwest footprint .
Quality-of-earnings nuance: headline EPS beat was insurance aided; underlying profitability tracked closer to consensus, while revenue (pre-reimbursements) underperformed amid attendance pressure .
Structural levers in Theatres—pricing optimization and premium large format mix—are expanding per caps and can help margin recovery as volumes normalize .
Hotels’ competitive outperformance and 2026 group pace imply durable earnings support; ADR should benefit from recent renovations even as RNC comps fade .
Capital return and FCF inflection: FY25 CapEx raised low-end but narrows; FY26 CapEx step-down to ~$50–$55M should lift FCF, alongside a larger buyback authorization and maintained dividend .
Balance sheet capacity: net leverage 1.7x with comfort up to ~2.25–2.5x provides optionality for opportunistic M&A or incremental repurchases, depending on opportunity set/valuation .
Near-term catalysts: holiday box office performance (Wicked: For Good, Zootopia 2, Avatar), continued per-cap gains, and updates on buyback execution/leadership transition at Theatres .

Values retrieved from S&P Global for items marked with an asterisk (*).

Citations:

Q3 2025 press release financials, segment data, KPIs, buybacks/authorization
8-K 2.02 and attached exhibit confirming results and authorization
Q3 2025 call commentary on insurance gain, theatres/film mix, hotels metrics, CapEx, liquidity/leverage, outlook
Q2 2025 press release and call for prior-quarter comps and guide baseline
Q1 2025 press release for sequential/trend context
Dividend press release
Theatres president retirement press release

MARCUS CORP (MCS)·Q3 2025 Earnings Summary