READING INTERNATIONAL INC (RDI)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 was mixed: revenue declined 13% year over year to $52.17M on a softer film slate and FX headwinds, but EBITDA improved 26% YoY to $3.57M, marking a fifth straight positive EBITDA quarter . Management highlighted strong holiday slate presales (Wicked: For Good) and expects a Q4 rebound, while real estate and NYC live theatres performed well .
• Sequentially, revenue fell from $60.38M in Q2 to $52.17M and operating income swung from $2.89M to a $(0.33)M loss, reflecting weaker titles and U.S. screen closures/renovations .
• Balance sheet progress continued: gross debt reduced 14.8% YTD to $172.6M, aided by asset sales; multiple facility maturities were extended (NAB to 2030; Valley National to 2026; BoA/BoH to 2026; NYC live theatre loan to 2026) .
• Estimates context: with only one covering estimate, results missed S&P Global consensus on both revenue ($52.17M vs $58.75M*) and EPS (-$0.18 vs -$0.088*). FX, a softer Q3 slate, and temporary U.S. capacity reductions were the primary drivers . Values retrieved from S&P Global.
• Potential stock catalysts: strong Q4 holiday slate presales and 2026 pipeline visibility, continued debt reduction and maturity extensions, and resilience in high-margin live theatre/real estate income .

What Went Well and What Went Wrong

• What Went Well

  • Fifth consecutive positive EBITDA; Q3 EBITDA rose 26% YoY to $3.57M; “best third quarter result since Q3 2019” for net loss improvement and EPS .
  • Real estate strength: U.S. real estate revenue +35% YoY to $2.0M on NYC live theatre outperformance; portfolio occupancy 98% across 58 third-party tenants .
  • Management execution: debt down 14.8% YTD to $172.6M; multiple debt maturities extended (NAB to 2030; Valley National to 2026; others in July/Nov) . Quote: “We reduced our debt by almost 15% compared to the end of 2024… our real estate assets… performed well… enhanced by a strong quarterly performance from our NYC Live Theatres.” — CEO Ellen Cotter .

• What Went Wrong

  • Cinema softness: cinema revenue fell 14% YoY to $48.6M on weaker slate appeal vs 2024 comps and a 7.3% U.S. screen count reduction; partial closures for renovations also impacted attendance .
  • FX headwinds: average AUD and NZD weakened 2.3% and 3.1% YoY in Q3; ~49% of revenue is generated in AU/NZ, depressing U.S.-reported results .
  • Margin/opex pressures: ongoing inflation and higher labor/operating costs (notably Hawaii) required continued landlord negotiations to align occupancy costs with current conditions .

Financial Results

Headline vs Prior Periods

Notes: Adjusted EBITDA equals EBITDA (no adjustments) in all shown periods .

Q3 2025 Actuals vs S&P Global Consensus

Values retrieved from S&P Global.

Segment Revenue – Q3 2025 vs Q3 2024

Segment Operating Income – Q3 2025 vs Q3 2024

KPIs (Q3 2025)

Guidance Changes

Note: No numeric revenue/margin guidance ranges were issued in Q3 materials; commentary emphasized slate strength, presales, and positioning .

Earnings Call Themes & Trends

Note: RDI uses pre-recorded webcasts; a Q3 2025 transcript was not available as of the release. Q2 call transcript themes are used for trend context -.

Management Commentary

• Strategic posture: “We reduced our debt by almost 15% compared to the end of 2024… our real estate assets… performed well, enhanced by a strong quarterly performance from our NYC Live Theatres.” — Ellen Cotter, CEO .
• Outlook: “We remain confident that the fourth quarter will deliver an exciting rebound… our global sales of Wicked: For Good are among the highest presales we have seen since the pandemic… one of the most promising holiday film lineups… and cinemas poised for an exciting and robust 2026.” — Ellen Cotter .
• Non-GAAP treatment: Adjusted EBITDA equals EBITDA this quarter (no adjustments) .

Q&A Highlights

• Q3 2025: No transcript available; pre-recorded webcast planned (Nov 18) with Q&A submission via email .
• Most recent Q&A context (Q2 2025):
  • NAB facility term: working toward longer-term extension; long standing relationship with NAB .
  • Wellington (Courtenay Central) seismic upgrade and reopening: owner advancing seismic design; Reading plans multi-million-dollar fit-out; target reopening late 2026/early 2027 (timing not assured) .
  • Investor relations day: evaluating alternatives; no date set .

Estimates Context

• Coverage is very limited (one estimate). Q3 2025 revenue of $52.17M missed S&P Global consensus $58.75M* and EPS of $(0.18) missed $(0.0875)*; both likely to drive downward estimate revisions near term given softer Q3 slate and FX . Values retrieved from S&P Global.
• Sequential cadence and management’s commentary suggest potential for upward revisions to Q4 and 2026 cinema forecasts if holiday slate converts from presales to attendance, with live theatre/real estate providing earnings ballast .

Key Takeaways for Investors

• Q3 softness was slate- and FX-driven; EBITDA remained positive for a fifth straight quarter, underscoring operating discipline amidst weaker revenue .
• Real estate and live theatre assets are offsetting volatility in cinema; U.S. real estate revenue rose 35% YoY, and live theatre delivered best 3Q operating income since 2014 .
• Balance sheet de-risking continues: gross debt down 14.8% YTD with multiple extensions (notably NAB to 2030), reducing near-term refinancing risk .
• Q4 set up is favorable with strong presales (Wicked: For Good) and diversified holiday slate; track conversion from presales to admissions and F&B attachment rates .
• Watch FX trends (AUD/NZD) and U.S. operational footprint changes (closures/renovations) as key variables for reported revenue and near-term comps .
• Limited sell-side coverage means prints vs expectations can be lumpy; near-term trading likely tied to Q4 box office momentum and any incremental asset monetization news .
• Non-GAAP integrity: no adjustments to EBITDA this quarter; focus on theater-level efficiency initiatives and ongoing occupancy cost renegotiations .