Q4 2025 Cinemark Holdings Inc Earnings Call

February 18, 2026

Speaker #1: Greetings, and welcome to Cinemark Holdings 4th Quarter and Full Year 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode.

Speaker #1: A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press *0 on your telephone keypad.

Speaker #1: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chanda Brashears, Senior Vice President, Investor Relations. Thank you, you may begin.

Speaker #2: Good morning, everyone, and thank you for joining us today to discuss our fourth quarter and full year 2025 results. Our earnings release, executive commentary, as well as our Form 10-K were issued earlier this morning and are available on our website at ir.cinemark.com.

Chanda Brashears: Good morning, everyone, and thank you for joining us today to discuss our fourth quarter and full year 2025 results. Our earnings release, executive commentary, as well as our Form 10-K, were issued earlier this morning and are available on our website at ir.cinemark.com. Today's call is being webcast with a replay and transcript available on the website after the call. Before I begin, I would like to remind everyone that during this conference call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. Forward-looking statements are subject to risks and uncertainties that could cause the company's actual results to materially differ from those expressed or implied.

Speaker #2: Today's call is being webcast with a replay and transcript available on the website after the call. Before I begin, I would like to remind everyone that during this conference call we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Speaker #2: Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. Forward-looking statements are subject to risks and uncertainties that could cause the company's actual results to materially differ from those expressed or implied.

Speaker #2: The factors that could cause results to differ materially are detailed in our most recent annual report on Form 10-K as filed with the SEC and available on our website.

Chanda Brashears: The factors that could cause results to differ materially are detailed in our most recent annual report on Form 10-K as filed with the SEC and available on our website. Also, today's call will include non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the website's most recently filed earnings release, 10-K, and on the company's website at ir.cinemark.com. Joining me this morning are Sean Gamble, President and CEO, and Melissa Thomas, CFO. Beginning with today's call, we are shifting our earnings format to provide adequate time for your questions. Following brief introductory remarks from Sean, we will open up the lines for Q&A. With that, I'll turn the call over to Sean.

Speaker #2: Also, today's call will include non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the website's most recently filed earnings release 10-K and on the company's website at ir.cinemark.com.

Speaker #2: Joining me this morning are Sean Gamble, President and CEO, and Melissa Thomas, CFO. Beginning with today's call, we are shifting our earnings format to provide adequate time for your questions. Following brief introductory remarks from Sean, we will open up the lines for Q&A.

Speaker #2: With that, I'll turn the call over to Sean.

Speaker #3: Thank you, Chanda, and good morning, everyone. Before we dive into Q&A, I'd like to briefly reflect on our 2025 results as well as the advancements we've made over the past few years.

Sean Gamble: Thank you, Chanda, and good morning, everyone. Before we dive into Q&A, I'd like to briefly reflect on our 2025 results, as well as the advancements we've made over the past few years. Driven by further market share expansion and a series of all-time record achievements in 2025, we delivered a post-pandemic high in worldwide revenue of $3.1 billion. This strong top-line result, combined with effective cost management and incremental productivity gains, resulted in $578 million of adjusted EBITDA, with a healthy 18.6% adjusted EBITDA margin. Through a relentless focus on initiatives that are aimed at expanding our audiences, activating new sources of revenue growth, optimizing our circuit, and continuously improving our processes and capabilities, we have taken the experiences we create for our guests and our operating agility to new levels.

Speaker #3: Driven by further market share expansion and a series of all-time record achievements in 2025, we delivered a post-pandemic high in worldwide revenue of $3.1 billion.

Speaker #3: This strong top-line result, combined with effective cost management and incremental productivity gains, resulted in $578 million of adjusted EBITDA, with a healthy 18.6% adjusted EBITDA margin.

Speaker #3: Through a relentless focus on initiatives that are aimed at expanding our audiences, activating new sources of revenue growth, optimizing our circuit, and continuously improving our processes and capabilities, we have taken the experiences we create for our guests and our operating agility to new levels.

Speaker #3: Furthermore, we have developed a distinctive set of competitive advantages, including a differentiated position of strength. Over the past three years, we generated nearly $1.8 billion of adjusted EBITDA with over $1.3 billion of operating cash flow.

Sean Gamble: Furthermore, we have developed a distinctive set of competitive advantages, including a differentiated position of strength. Over the past three years, we generated nearly $1.8 billion of Adjusted EBITDA, with over $1.3 billion of operating cash flow. We increased customer loyalty to Cinemark, meaningfully expanded our market share, and grew our concession revenues and per caps to all-time highs. We have fortified our balance sheet, extinguishing over $700 million of COVID-related debt, while at the same time, reinvesting over half a billion dollars in capital expenditures to advance our company for the future and returning $315 million to shareholders through dividends and share buybacks.

Speaker #3: We increased customer loyalty to Cinemark, meaningfully expanded our market share, and grew our concession revenues and per caps to all-time highs. We are fortified our balance sheet extinguishing over $700 million of COVID-related debt, while at the same time reinvesting over half a billion dollars in capital expenditures to advance our company for the future and returning $315 million to shareholders through dividends and share buybacks.

Speaker #3: Achieving these results has required extraordinary dedication, ingenuity, and perseverance throughout our entire company, and I'd like to commend our sensational global team for the significant impact they have made setting up Cinemark for ongoing success in the current environment and beyond.

Sean Gamble: Achieving these results has required extraordinary dedication, ingenuity, and perseverance throughout our entire company, and I'd like to commend our sensational global team for the significant impact they have made, setting up Cinemark for ongoing success in the current environment and beyond. As we look ahead, we remain focused on effectively navigating an evolving media and entertainment landscape, continuing to diligently operate our business and delight our guests week after week, and effectuating a multitude of strategic initiatives to further strengthen our company and market position. 2026 appears set to benefit from a robust lineup of compelling films and a volume of wide releases that looks poised to reach pre-pandemic levels.

Speaker #3: As we look ahead, we remain focused on effectively navigating and evolving media and entertainment landscape, continuing to diligently operate our business and delight our guests week after week, and effectuating a multitude of strategic initiatives to further strengthen our company and market position.

Speaker #3: 2026 appears set to benefit from a robust lineup of compelling films and a volume of wide releases that looks poised to reach pre-pandemic levels.

Speaker #3: We are excited about the prospects of this year's slate and we remain highly encouraged by sustained consumer enthusiasm we continue to see for the types of larger-than-life cinematic entertainment we provide at Cinemark, as well as the multitude of opportunities before us that are fully within our control to create incremental value for our customers, partners, and shareholders.

Sean Gamble: We are excited about the prospects of this year's slate, and we remain highly encouraged by sustained consumer enthusiasm we continue to see for the types of larger-than-life cinematic entertainment we provide at Cinemark, as well as the multitude of opportunities before us that are fully within our control to create incremental value for our customers, partners, and shareholders. Operator, we'd now like to open up the line for questions.

Speaker #3: Operator, we would now like to open up the line for questions.

Speaker #1: Thank you. The floor is now open for questions. If you would like to ask a question, please press *1 on your telephone keypad at this time.

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Again, that's star one to register a question at this time. Our first question is coming from Eric Handler of Roth MKM. Please go ahead.

Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Again, that's star one to register a question at this time. Our first question is coming from Eric Handler of Roth MKM. Please go ahead.

Speaker #1: A confirmation tone will indicate that your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the *keys. Again, that's *1 to register a question at this time.

Speaker #1: Our first question is coming from Eric Handler of Roth MKM. Please go ahead.

Speaker #4: Yes. Good morning. Thank you for the question. Sean, given how well premium has been performing for you guys, I'm curious, how many of your theaters have two XD screens?

Eric Handler: Yes, good morning. Thank you for the question. Sean, given how well premium has been performing for you guys, I'm curious, how many of your theaters have two XD screens? Are there plans to add more theaters with multiple XD screens? And what do you think ultimately that could be?

Speaker #4: Are there plans to add more theaters with multiple XD screens? And what do you think ultimately that could be?

Speaker #3: Sure. Thanks for the question, Eric. Definitely premium amenities. We're seeing a growing interest from a section of our audiences who really enjoy the added enhancement that they provide.

Sean Gamble: Sure. Thanks for the question, Eric. Definitely, you know, premium amenities, we're seeing a growing interest from a section of our audiences who really enjoy the added enhancement that they provide. Specific to your question, we've got about 10% of our domestic circuit that has two XDs. There are others that have, you know, a combination of an IMAX and XD, a Screen X and an XD, but that's the overlap. Part of the governor on that is just having enough significant screens to add an extra XD to. You know, we are very particular about making sure that if we're selling an enhanced experience, that it fully delivers on that, and that's beyond just the sound, the environment. It goes to the scale of the screen.

Speaker #3: I'm specific to your question. We've got about 10% of our domestic circuit that has two XDs. There are others that have a combination of an IMAX and XD, a screen X and an XD, but that's the overlap.

Speaker #3: Part of the governor on that is just having enough significant screens to add an extra XD to. We are very particular about making sure that if we're selling an enhanced experience, that it fully delivers on that, and that's beyond just the sound, the environment.

Speaker #3: It goes to the scale of the screen. So if it's an existing theater, there needs to be a second auditorium that can do that.

Sean Gamble: So if it's an existing theater, there needs to be a second auditorium that can do that. We are in the process of rolling out additional screens over the next few years, so we're gonna be continuing to do that. So we've got still a nice runway of opportunity, but I'm just flagging that there are some limits to have it. We also are just focused on how many of those we have in a theater. Premium enhanced formats still only represent about 15% of overall box office. So while there is a group of moviegoers who do like to pay to have that additional enhanced experience, the bulk of moviegoing still is on all the other screens, and our focus is continuing to make sure all of our screens are a premium experience, regardless of whether you choose XD or something else.

Speaker #3: We are in the process of rolling out additional screens. Over the next few years, so we're going to be continuing to do that. So we've got still a nice runway of opportunity.

Speaker #3: But I'm just flagging that there are some limits to how we also are just focused on how many of those we have in a theater.

Speaker #3: Premium enhanced formats still only represent about 15% of overall box office. So, while there is a group of moviegoers who do like to pay that additional enhanced experience, the bulk of moviegoing still is on all the other screens.

Speaker #3: And our focus is continuing to make sure all of our screens are premium experience, regardless of whether you choose XD or something else.

Speaker #4: That's helpful. And then I wonder if you have any type of updates on new build activity, be it in the US or Latin America.

Eric Handler: That's helpful. Then I wonder if you have any type of updates on new build activity, be it in the US or Latin America.

Sean Gamble: Sure. You know, we... Our new build pipeline was slowed during the pandemic, obviously, and then we've reactivated our real estate efforts and exploring opportunities out there. And we've got a number of things that are in motion, but these projects can take two to three years to get off the ground. So we opened a new site in El Paso in 2025. We've got plans to open an additional site in Greenville, Texas, in 2026. We've broken ground in Omaha, Nebraska, on another site for 2027. And then we've got a range of other projects, as I mentioned, that are in motion. So we reactivated that.

Speaker #3: Sure. Our new build pipeline was slow during the pandemic, obviously, and then we've reactivated our real estate efforts and are exploring opportunities out there. And we've got a number of things that are in motion, but these projects can take two to three years to get off the ground.

Speaker #3: So we opened a new site in El Paso in 2025. We've got plans to open an additional site in Greenville, Texas, in 2026. We've broken ground in Omaha, Nebraska, on another site for 2027.

Speaker #3: And then we've got a range of other projects as I mentioned that are in motion. So we've reactivated that. It just takes a little bit of time to fully get up to speed because you've got to make sure you get the right site and when you go through all the exercise of finding the locations, negotiating the deals, working through all the regulatory processes, it can just take a little bit.

Sean Gamble: It just takes a little bit of time to fully get up to speed because, you know, you got to make sure you get the right site. When you go through all the exercise of finding the locations, negotiating the deals, working through all the regulatory processes, it can just take a little bit.

Speaker #1: And Eric, you see that increase in our pipeline coming through as well in the step up in capital expenditures that we're expecting from '25 to 2026.

Melissa Thomas: And Eric, you see that increase in our pipeline coming through as well in the step up in capital expenditures that we're expecting from 2025 to 2026. So that is reflected there as well as to your point on XDs and how many opportunities there are expansion in XD, Screen X, and D-BOX as well.

Speaker #1: So that is reflected there, as well as—to your point—on XDs and how many opportunities there are for expansion in XD, ScreenX, and D-Box as well.

Speaker #4: Thank you very much.

Eric Handler: Thank you very much.

Speaker #3: Thanks, Eric.

Sean Gamble: Thanks, Eric.

Speaker #1: Thank you. Our next question is coming from David Karnofsky of JPMorgan. Please go ahead.

Operator: Thank you. Our next question is coming from David Karnovsky of J.P. Morgan. Please go ahead.

Speaker #5: Hey, thanks. Sean, in your executive commentary, you noted the softer than anticipated slate last year. So I wanted to see just with some hindsight, you could walk through the factors that you think drove this.

David Karnovsky: Hey, thanks. Sean, in your executive commentary, you noted the softer than anticipated slate last year. So wanted to see, just with some hindsight, you could walk through the factors that you think drove this. Is this primarily about quality and film mix, or are there any kind of structural impacts to consider, like windows? Thanks.

Speaker #5: Is this primarily about quality and film mix, or are there any kind of structural impacts to consider, like windows, things?

Speaker #3: Sure. Thanks for the question, David. At a high level, I would say we view it more as just the normal ebb and flow of the industry.

Sean Gamble: Sure. Thanks for the question, David. At a high level, I would say we view it more as just the normal ebb and flow of the industry. You know, I think perhaps some of the expectations for 2025 got a little bit overinflated coming in. We had some pretty lofty targets for select films. When we look at the aggregate of the film, the aggregate of slate, excuse me, there was a bit more of a mixed bag of the ones that overperformed and some of those that didn't fully resonate. The year lacked a mega blockbuster that exceeded half a billion dollars, and there really was no major summer animated film.

Speaker #3: I think perhaps some of the expectations for 2025 got a little bit overinflated coming in. We had some pretty lofty targets for select films.

Speaker #3: When we look at the aggregate of the film, the aggregate of slate, excuse me, there was a bit more of a mixed bag of the ones that overperformed and some of those that didn't fully resonate.

Speaker #3: The year lacked a mega blockbuster. That exceeded half a billion dollars. And there really was no major summer animated film. So I think if we had had one $300 million animated film this summer, which we traditionally do, I think everybody would be viewing 2025 much differently.

Sean Gamble: So I think if we had had one $300 million animated film this summer, which we traditionally do, I think everybody would be viewing 2025 much differently. So I think I don't view that as a real structural issue. I think it's just more the way sometimes the strength and quality of films play out and how well they resonate with audiences. You know, windows is something we do continue to evaluate. It's something that's a big topic for the industry. There are indications that awareness of highly shortened windows is having some effect on smaller movies and more casual moviegoers, which, you know, could be, you know, providing some headwinds to overall recovery in the industry.

Speaker #3: So, I think I don't view that as a real structural issue. I think it's just more the way sometimes the strength and quality of films play out and how well they resonate with audiences.

Speaker #3: Windows is something we do continue to evaluate. It's something that's a big topic for the industry. There are indications that awareness of highly shortened windows is having some effect on smaller movies and more casual moviegoers, which could be providing some headwinds to overall recovery in the industry.

Speaker #3: So there is a factor, but I don't look at, kind of, the softness versus expectations on '25 necessarily because of that. It's just more based on some of the really high expectations we had.

Sean Gamble: So there is a factor, but I don't look at kind of the softness versus expectations on 25 necessarily because of that. It's just more based on some of the really high expectations we had.

Speaker #4: Okay. And then just with margins, when we look at '25, obviously attendance was a headwind, but assuming a recovery, this year how should investors think about room for operating leverage?

David Karnovsky: Okay. And then, just with margins, when we look at 25, obviously attendance was a headwind, but, you know, assuming a recovery, this year, how should investors think about room for operating leverage? And Melissa, any help in thinking about kind of cost of goods, staffing or G&A? Thank you.

Speaker #4: And Melissa, any help in thinking about kind of cost of goods, staffing, or GNA? Thank you.

Speaker #1: Sure. From margin standpoint, we would expect, given we do expect a stronger box office and higher attendance year over year, that would support leverage in our operating model as well as margin expansion.

Melissa Thomas: Sure. From a margin standpoint, we would expect, given we do expect a stronger box office and higher attendance year-over-year, that would support leverage in our operating model as well as margin expansion. As you know, our EBITDA margins are most heavily influenced by those two factors of box office and attendance. That said, there are a number of variables beyond that, that influence our margin, with market share, average ticket prices, and food and beverage per cap. And then in addition to that, incremental value that we expect to capture from our strategic initiatives and our ability to manage cost pressures. And then for international segments, our performance will depend on, we're talking about film slate, so how film slate resonates with their audiences, as well as inflationary and FX dynamics.

Speaker #1: As you know, our EBITDA margins are most heavily influenced by those two factors of box office and attendance. That said, there are a number of variables beyond that that influence our margin.

Speaker #1: We have market share, average ticket prices, and food and beverage per caps. And then, in addition to that, incremental value that we expect to capture from our strategic initiatives and our ability to manage cost pressures.

Speaker #1: And then for international segment, our performance will depend on we're talking about film slate. So how film slate resonates with their audiences as well as inflationary and FX dynamics?

Melissa Thomas: And then into your question on expenses, particularly on a go-forward basis, but from a G&A perspective, we do expect our G&A to continue to reflect merit increases and rising benefits costs. We are making targeted, strategic investments in talent and capabilities, including cloud-based software, to continue to advance our strategic priorities and position the company for long-term success. But we remain disciplined in our approach to expense management, ensuring that our spend is closely aligned with long-term objectives. And then broadly, you know, as you think about our variable costs, those are gonna flex with attendance, albeit not at the same, the same rate.

Speaker #1: And then to your question on expenses particularly, on a go-forward basis, from a GNA perspective, we do expect our GNA to continue to reflect merit increases and rising benefits costs.

Speaker #1: We are making targeted strategic investments in talent and capabilities including cloud-based software to continue to advance our strategic priorities and position the company for long-term success.

Speaker #1: But we remain disciplined in our approach to expense management, ensuring that our spend is closely aligned with long-term objectives. And then, broadly, as you think about our variable costs, those are going to flex with attendance, albeit not at the same rate.

Speaker #4: Thank you.

David Karnovsky: Thank you.

Speaker #3: Thanks, David.

Sean Gamble: Thanks, David.

Speaker #1: Thank you. The next question is coming from Eric Wold of Texas Capital Securities. Please go ahead.

Operator: Thank you. The next question is coming from Eric Wold of Texas Capital Securities. Please go ahead.

Speaker #6: Thanks. Good morning. I guess question on kind of a moviegoer modernization. Can you talk about with the strength you had in concessions Q4 and then broadly throughout last year, what strategies have been driving the most success that you've kind of put into place with the various ones that you've used?

Eric Wold: Thanks. Good morning. I guess question on kind of a moviegoer monetization. Can you talk about, you know, with the strength you had in concessions, you know, Q4 and then, you know, broadly throughout last year, you know, what strategies have been driving the most success that you've kind of put into place, you know, with the various ones that you've used? Any way to parse out how much of the increase was, you know, film mix influence versus, you know, just basket and incidence? And then lastly, kind of, you know, what do you think the opportunity is to kind of push ticket prices and concessions higher this year, given the environment that we're in economically? Thanks.

Speaker #6: Is there any way to parse out how much of the increase was film mix influenced versus just basket and incidents? And then lastly, what do you think the opportunity is to push ticket prices and concessions higher this year, given the environment that we're in economically?

Speaker #6: Thanks.

Speaker #1: So, I'll take that one from a per cap standpoint. Our per cap, domestically, was up about 5% year over year. And there are three primary drivers to that.

Melissa Thomas: So I'll take that one. From a per cap standpoint, our per caps domestically were up 5% year-over-year, and there are three primary drivers to that: first, our strategic pricing actions, second, higher incidence rates, and then third, a shift in product mix, given the growth in merchandise sales as well as enhanced foods. As you think about kind of the breakout that I'd call it, probably about around three points, strategic pricing, a point incidence, and a point driven by shift in product mix.... In terms of the key catalysts, as we've said before, food and beverage, and this is a game of singles and doubles. We have a variety of initiatives that we've been executing upon, and others that we will be executing on to really drive growth on an ongoing basis.

Speaker #1: First, our strategic pricing actions; second, higher incidence rates; and then third, a shift in product mix given the growth in merchandise sales as well as enhanced foods.

Speaker #1: As you think about kind of the breakout that I'd call it probably around three points strategic pricing point incidence and a point driven by shift in product mix.

Speaker #1: In terms of the key catalysts as we've said, food and beverage and this is a game of singles and doubles. We have a variety of initiatives that we've been executing upon and others that we will be executing on to really drive growth on an ongoing basis.

Speaker #1: And that includes increasing the throughput of our concession stands, leveraging planograms to improve the monetization of our space. We continue to introduce new concepts, new flavors, expanding our enhanced food offerings.

Melissa Thomas: And that includes increasing the throughput of our concession stands, leveraging planograms to improve the monetization of our space. We continue to introduce new concepts, new flavors, expanding our enhanced food offerings. We still think there's runway there, as well as growth in movie-themed merchandise, and that's just to name a few. As we think about the go forward, looking ahead to 2026, we do remain optimistic about our ability to deliver another year of moderate year-over-year growth in concession per cap, supported by the broad range of initiatives that I just mentioned. And we do think that growth can come from both incidents as well as further opportunities to optimize our pricing. Bear in mind, from quarter to quarter, our per caps will fluctuate with film mix.

Speaker #1: We still think there's runway there as well as growth in movie-themed merchandise. And that's just to name a few. As we think about the go-forward, looking ahead to 2026, we do remain optimistic about our ability to deliver another year of moderate year-over-year growth in concession per cap, supported by the broad range of initiatives that I just mentioned and we do think that growth can come from both incidence as well as further opportunities to optimize our pricing.

Speaker #1: Bear in mind from quarter to quarter, our per caps will fluctuate with film mix. And then in our international markets, we do expect concession per cap to be impacted by inflationary as well as FX dynamics in the region while shifts in country mix also can play a factor.

Melissa Thomas: And then in our international markets, we do expect concession per cap to be impacted by inflationary as well as FX dynamics in the region, while shifts in country mix also can play a factor. Overarchingly, our focus is on delivering sustainable per cap growth and ensuring that our strategies are supporting both profitability and long-term value creation.

Speaker #1: Overarchingly, our focus is on delivering sustainable per cap growth and ensuring that our strategies are supporting both profitability and long-term value creation.

Speaker #6: Perfect. Thanks, Melissa.

Chad Beynon: Perfect. Thanks, Melissa.

Eric Wold: Perfect. Thanks, Melissa.

Melissa Thomas: Mm-hmm.

Speaker #3: Thanks, Eric.

Sean Gamble: Thanks, Sarah.

Speaker #1: Thank you. Thank you. The next question is coming from Chad Benyon of Macquarie Asset Management. Please go ahead.

Melissa Thomas: Thank you.

Operator: Thank you. The next question is coming from Chad Beynon of Macquarie Asset Management. Please go ahead.

Speaker #5: Hi. Good morning, Sean and Melissa. Thanks for taking my question. Wanted to ask about international attendance. It fell in '25, and I believe a lot of that decline was really just kind of a product of what was out there in terms of the movie slate.

Chad Beynon: Hi, good morning, Sean and Melissa. Thanks for taking my question. Wanted to ask about international attendance. It fell in 25, and I believe a lot of that decline was really just kind of a product of, you know, what was out there in terms of the movie slate. But as you look at 26, Sean, I know you talked about, you know, your optimism, maybe domestically or globally, but what about internationally? Do you think this could be an inflection point, and maybe we could see attendance even exceed what we're expecting in the US in 26? Thanks.

Speaker #5: But as you look at '26, Sean, I know you talked about your optimism, maybe domestically or globally. But what about internationally? Do you think this could be an inflection point and maybe we could see attendance even exceed what we're expecting in the US in '26?

Speaker #5: Thanks.

Speaker #3: Sure. Thanks for the question, Chad. Yeah. I mean, I think you're right. When we look at overall 2025, for Latin America in particular, the profile of the slate in terms of what worked and kind of what didn't work, it skewed a little bit lower for that region relative to the US.

Sean Gamble: Sure. Thanks for the question, Chad. Yeah, I mean, I think you're right. When we look at overall 2025 for Latin America in particular, the profile of the slate in terms of what worked and, you know, kind of what didn't work, it skewed a little bit lower for that region relative to the US. And so that's just nothing more than the product, and we see how that kind of can fluctuate year to year. 2026, specific to that region, we are optimistic about a better balance relative to the US. We think that the overall slate looks set to resonate stronger with Latin audiences than 2025 did.

Speaker #3: When we look at and so that's just nothing more than the product, and we see how that kind of can fluctuate year to year.

Speaker #3: 2026 specific to that region, we are optimistic about a better balance relative to the US, and we think that the overall slate is looks set to resonate stronger with Latin audiences than 2025 did.

Speaker #3: So you got titles like Michael, The Super Mario Galaxy, Spider-Man, Brand New Day, Minions, Avengers, Doomsday. These are all movies that really will resonate.

Sean Gamble: You got titles like Michael, the Super Mario Galaxy, Spider-Man: Brand New Day, Minions, Avengers, Dune. These are all movies that really will resonate. There's another Insidious title, and that particular type of genre of horror, and that franchise in particular, has done really well there. Certain films like The Odyssey, Star Wars, you know, Supergirl, Cat and Hell, like some of those, like sci-fi oriented Dune, those do tend to skew down. On the whole, we definitely are more optimistic about 2026 in Lat Am. In general, attendance throughout that region has recovered, in certain pockets, more so than in the US, with everything. I mean, a great example we always like to point to is Argentina.

Speaker #3: There's another insidious title, and that particular type of genre of horror, and that franchise in particular has done really well there. Certain films like The Odyssey, Star Wars, Supergirl, Cat and Hat, some of those sci-fi-oriented Dune do tend to skew down.

Speaker #3: But on the whole, we definitely are more optimistic about 2026 in Latin Am. And in general, attendance throughout that region has recovered in certain pockets more so than in the US with everything.

Speaker #3: I mean, a great example we always like to point to is Argentina, with all the hyperinflation and the economic and political turmoil that has happened within that country over recent years.

Sean Gamble: With all the hyperinflation and the economic and political turmoil that has happened within that country over recent years, attendance is neck and neck with pre-pandemic levels, so they've recovered exceptionally well. So when the content is there and it connects, that region in particular can really show some upside.

Speaker #3: Attendance is neck and neck with pre-pandemic levels. So they've recovered exceptionally well. So when the content is there and it connects, that region in particular can really show some upside.

Speaker #5: Okay. Great. Thank you. And then as we think more broadly, just in terms of the loyalty product, I think you said 60% domestically, 30% internationally.

Chad Beynon: Okay, great. Thank you. And then as we think more broadly, just in terms of the loyalty product, I think you said 60% domestically, 30% internationally. Are there any changes that we should expect in the near term that could either help that loyalty, you know, increase moviegoing? Yeah, just anything on the product side that could be different in the near term for consumers. Thank you.

Speaker #5: Are there any changes that we should expect in the near term that could either help that loyalty increase movie-going? Yeah. Just anything on the product side that could be different in the near term for consumers.

Speaker #5: Thank you.

Sean Gamble: I would say I don't know if there's anything materially different. I mean, I think that the core value and the core benefits that are inherent to these programs continue to resonate with existing members and continue to attract growth in our overall membership. Like, we've continued to see growth year after year in these programs. Movie Club, in particular in the US, is up over 50% from where we were in 2019. We do expect that that will start to level off a bit more as the program continues to mature, but thus far, we've continued to see terrific growth. So what we're doing is, in addition to those kind of core benefits, we do keep adding additional elements to it just to keep it fresh and enrich it.

Speaker #3: I would say I don't know if there's anything materially different. I mean, I think that the core value and the core benefits that are inherent to these programs continue to resonate with existing members and continue to attract growth in our overall membership.

Speaker #3: We've continued to see growth year after year in these programs, movie club in particular in the US is up over 50% from where we were in 2019.

Speaker #3: We do expect that that will start to level off a bit more as the program continues to mature. But thus far, we've continued to see terrific growth.

Speaker #3: So what we're doing is, in addition to those kind of core benefits, we do keep adding additional elements to it just to keep it fresh and enrich it.

Sean Gamble: You know, there's all kinds of surprise and delight type of events we do for our loyalty members throughout the year, where they get invited to special programming and things of that sort. I mentioned that we just added a new premium tier to Movie Club, which, you know, we're hopeful will attract those audiences who are more inclined to upgrade on a regular basis. We've introduced badges. So there's a whole slew of things like that, that we continue to add to the program to make it attractive from a retention standpoint, as well as attracting new guests. So I think that's really it. We do other kind of promotional events, sometimes tied to films, sometimes tied to just engaging types of incentives, also to stimulate growth.

Speaker #3: There's all kinds of surprise and delight type of events. We do for our loyalty members throughout the year where they get invited to special programming and things of that sort.

Speaker #3: I mentioned that we just added a new premium tier to Movie Club, which we're hopeful will attract those audiences who are more inclined to upgrade on a regular basis.

Speaker #3: We've introduced badges. So there's a whole slew of things like that that we continue to add to the program to make it attractive from a retention standpoint as well as attracting new guests.

Speaker #3: So I think that's really it. We do other kinds of promotional events, sometimes tied to films, sometimes tied to just engaging types of incentives, also to stimulate growth.

Speaker #3: But those are the things that we're continuing to lean into to sustain growth and sustain our existing membership.

Sean Gamble: But those are the things that we're continuing to lean into to sustain growth and sustain our existing membership.

Speaker #5: Okay. Thank you very much.

Patrick Sholl: Okay, thank you very much.

Chad Beynon: Okay, thank you very much.

Speaker #3: Thanks, Chad.

Sean Gamble: Thanks, Jeff.

Speaker #1: Thank you. Our next question is coming from Drew Crumb of B. Riley Securities. Please go ahead.

Operator: Thank you. Our next question is coming from Drew Crum of B. Riley Securities. Please go ahead.

Speaker #6: Okay. Thanks. Hey, guys. Good morning. So Consolid ATP growth has accelerated over the last few years. How do you foresee the rate of change for ATP trending going forward given the ongoing shift towards and success with PLFs across your circuit amongst other factors?

Drew Crum: Okay, thanks. Hey, guys, good morning. So the solid ATP growth have accelerated over the last few years. How do you foresee the rate of change for ATP trending going forward, given the ongoing shift toward and success with PLFs across your circuit, among other factors? Is the mid-single digit increase the business delivered in 2025 a new normal, or was last year more of a one-off and not sustainable?

Speaker #6: Is the mid-single-digit increase the business delivered in 2025 a new normal, or was last year more of a one-off and not sustainable?

Speaker #1: Thanks for the question, Drew. So we have, to your point, we were pleased. We've delivered a 4% CAGR in our domestic average ticket price over the past three years.

Melissa Thomas: Thanks for the question, Drew. So we have, to your point, we were pleased. We've delivered a 4% CAGR in our domestic average ticket price over the past three years. As we look ahead to 2026, we expect average ticket prices will increase modestly year-over-year in the full year, and that's really twofold. One, we do believe that there's further strategic pricing opportunities, as well as opportunities related to our continued expansion of premium offerings. So as we mentioned, XD, D-BOX, IMAX, and Screen X. So we do think it's twofold, but not likely, you know, to the same extent that we saw in 2025, given some of the outsized mixed benefits. But keep in mind, average ticket prices, they will fluctuate quarter-to-quarter, depending upon the film mix.

Speaker #1: As we look ahead to 2026, we expect average ticket prices will increase modestly year over year in the full year, and that's really twofold.

Speaker #1: One, we do believe that there's further strategic pricing opportunities as well as opportunities related to our continued expansion of premium offerings. So as we mentioned, XC, D-Box, IMAX, and ScreenX.

Speaker #1: So we do think it's twofold, but not likely to the same extent that we saw in 2025 given some of the outsized mixed benefits.

Speaker #1: But keep in mind, average ticket prices will fluctuate quarter to quarter, depending upon the film mix. And then, on the international side, inflationary and FX dynamics in the region could play a factor, as well as country mix.

Melissa Thomas: And then on the international side, inflationary and FX dynamics in the region, could play a factor as well as country mix. We do continue to approach our pricing decisions thoughtfully and are level-leveraging data, to identify those optimal price points that maximize attendance as well as box office performance.

Speaker #1: We do continue to approach our pricing decisions thoughtfully and our leveraging data to identify those optimal price points that maximize attendance as well as box office performance.

Speaker #5: Got it. Okay. Thanks. And then maybe one follow-up. Can you address the planned splits between US and international in terms of CapEx spend? And is the $250 million number you're planning for this year a good annual run rate for the business, or is 26 a peak?

Drew Crum: Got it. Okay, thanks. Then maybe one follow-up. Can you address the planned splits between US and international in terms of CapEx spend? And is the $250 million number you're planning for this year a good annual run rate for the business, or is 2026 a peak? Thanks.

Speaker #5: Thanks.

Speaker #1: Yeah. So, in terms of splits between international and the US, I mean, typically, around $50 to $60 million of our CapEx is dedicated on the international side.

Melissa Thomas: Yeah. So in terms of splits between international and the US, I mean, typically around $50 to 60 million of our CapEx is dedicated on the international side. Remainder is towards, towards the US. And then in terms of our, capital expenditures in 2026, those are ramping up to $250 million, and that's based on not only our expectations for, cash flow generation, but also the ROI-generating opportunities in front of us that we're looking to pursue. As we look forward beyond 2026, the extent of our spending and whether we kind of stay at that $250 million level, will again be predicated on the ROI-generating opportunities we see in front of us.

Speaker #1: Remainder is towards the US. And then in terms of our capitals, expenditures, in 2026, those are ramping up to $250 million, and that's based on not only our expectations for cash flow generation, but also the ROI generating opportunities in front of us that we're looking to pursue.

Speaker #1: As we look forward beyond 2026, the extent of our spending, and whether we kind of stay at that $250 million level, will again be predicated on the ROI-generating opportunities we see in front of us.

Speaker #1: And then the other point I would call out is as the new build pipeline ramps, that can cause variability from year to year. With temporary upticks and then coming back down, just depending upon where we're at within that new build pipeline.

Melissa Thomas: Then the other point I would call out is, as the new build pipeline ramps, that can cause variability from year to year, with temporary upticks and then coming back down, just depending upon, you know, where we're at within that new build timeline. So there could be some fluctuations, but we've, you know, by and large, I would say we're too early to tell at this stage.

Speaker #1: So there could be some fluctuations, but by and large, I would say we're too early to tell at this stage.

Drew Crum: Mm-hmm. Okay, thank you.

Speaker #5: Okay. Thank you.

Melissa Thomas: Mm-hmm.

Speaker #3: Thanks, Drew.

Sean Gamble: Thanks, Drew.

Speaker #1: Thank you. The next question is coming from Patrick Scholl of Barrington Research. Please go ahead.

Operator: Thank you. The next question is coming from Patrick Sholl of Barrington Research. Please go ahead.

Speaker #7: Hi. Good morning. I just had a quick follow-up on some of your CapEx comments. Just on the new builds, are these kind of expanding into additional markets, or are they kind of more replacing older theaters within those markets?

Patrick Sholl: Hi, good morning. I just had a quick follow-up on some of your CapEx questions, CapEx comments. Just on the new builds, are these kind of expanding into, like, additional markets, or are they kind of more replacing older theaters within those markets? And I guess similarly, is that sort of the path that you're taking to increase the recliner penetration, or are you still finding opportunities within existing theaters to kind of renovate those and make increase the, I guess, competitiveness and attractiveness of those amenities?

Speaker #7: And I guess similarly, is that sort of the path that you're taking to increase the recliner penetration? Or are you still finding opportunities within existing theaters to kind of renovate those and make increase the, I guess, competitiveness and attractiveness of those amenities?

Speaker #1: So in terms of the new build pipeline, most of the locations that we are looking at are new locations. So that would be in new markets where we see that there's underpenetration, and there's opportunity for us to go in and have a high confidence return.

Melissa Thomas: So in terms of the new build pipeline, most of the locations that we are looking at are new locations. So that would be in new markets, where we see that there's under-penetration, and there's an opportunity for us to go in and have a high confidence return. So that is really the genesis of, of what we're doing on the new build side.

Speaker #1: So, that is really the genesis of what we're doing on the new build side.

Sean Gamble: And I'll add on the recliners, we do still see recliner opportunities. I mean, with 72% of our circuit reclined in the US, those are fewer than they once were, but we are still, you know, we are still finding opportunities beyond our new builds to have attractive returns with some of our theaters that strengthen the overall competitiveness, as well as just provide a good lift in performance.

Speaker #3: And I would add on the recliners, we do still see recliner opportunities. I mean, with 72% of our circuit reclined in the US, those are fewer than they once were, but we are still finding opportunities beyond our new builds to have attractive returns with some of our theaters that strengthen the overall competitiveness, as well as just provide a good lift in performance.

Speaker #5: Okay. And then on just the film slate for 2026 and maybe even 2027 as well, I guess, how are you seeing the cadence of releases and are you seeing it kind of create more stability in box office in the coming years?

Patrick Sholl: Okay. And then on just the film slate for 2026 and maybe even 2027 as well, I guess, how are you seeing, like, the cadence of releases and are you seeing it kind of create more stability in box office in the coming years? Just how, I guess, yeah, just how are you doing that?

Speaker #5: I guess, yeah, just however you're viewing that.

Sean Gamble: It's a great question. I mean, the good news is volume continues to grow. We saw that 2025 got to within 5% or so of pre-pandemic levels. 2026 looks to at least match that, potentially go beyond that. And the benefit of that is obviously, it's our industry tends to be a bit of a momentum type of business, where people come to the theater, they see what's coming up, they get excited, they have a good experience, and they come back because of that. And when you get these kind of lulls in terms of things being released, you're winding up having to reboot the engine over and over and over again. And that's the type of cycle that we've been in.

Speaker #3: It's a great question. I mean, the good news is volume continues to grow. We saw that 2025 got to within 5% or so of pre-pandemic levels.

Speaker #3: 2026 looks to at least match that, and potentially go beyond that. The benefit of that is, obviously, our industry tends to be a bit of a momentum-type business where people come to the theater.

Speaker #3: They see what's coming up. They get excited. They have a good experience, and they come back because of that. And when you get these kind of lulls in terms of things being released, you're winding up having to reboot the engine over and over and over again.

Speaker #3: And that's the type of cycle that we've been in. So I think the good news is with further recovery and volume coming forward, there should be fewer of those instances of having to reboot.

Sean Gamble: So I think the good news is with further recovery and volume coming forward, there should be fewer of those instances of having to reboot. I will say, what we've still yet to see, and these are conversations we continue to have with our studio partners, is, for a long while prior to the pandemic, we would see more of the films getting bunched in the summer and at year-end. And then in time, everybody learned it's a twelve-month calendar, movies can do huge business any time of the year. First quarter, late summer, not just kind of in those peak, when kids are off from school types of months. I'd say the industry's gravitated a little bit back to this old norm, and we see a bit of a more crowded summer in 2026 and a crowded year-end.

Speaker #3: I will say what we've still yet to see, and these are conversations we continue to have with our studio partners, is for a long while prior to the pandemic, we would see more of the films getting bunched in the summer and at year-end.

Speaker #3: And then in time, everybody learned it's a 12-month calendar; movies can do huge business any time of the year—first quarter, late summer, not just in those peak, when kids are off from school, types of months.

Speaker #3: I'd say the industry's gravitated a little bit back to this old norm, and we see a bit of a more crowded summer in 2026 and a crowded year-end.

Speaker #3: So that's one of the things that we're still looking for that to fully resolve itself so we can truly have a fluid cadence of movies every month throughout the year and just sustain that momentum.

Sean Gamble: So that's one of the things that we're still looking for that to fully resolve itself, so we can truly have, you know, a fluid cadence of movies every month throughout the year and just sustain that momentum. So that's something that still is being sorted out, but the good news is, it's moving in the right direction.

Speaker #3: So that's something that still is being sorted out. But the good news is it's moving in the right direction.

Speaker #5: Okay. Thank you.

Patrick Sholl: Okay, thank you.

Speaker #3: Thanks, Patrick.

Sean Gamble: Thanks, Patrick.

Speaker #1: Thank you. The next question is coming from Robert Fishman of Moffett Nathanson. Please go ahead.

Operator: Thank you. The next question is coming from Robert Fishman of MoffettNathanson. Please go ahead.

Robert Fishman: Good morning. Two for you. When you look at 2026, and beyond, how do you balance leaning into your organic growth, led by the sustainability of market share gains, compared to positioning the company for other opportunities like M&A? That hasn't really been an option for a while. And then just, if we could get any update on where things stand with any conversations you've had on the Warner Bros. acquisition, both with either Netflix or Paramount Skydance. Thank you so much.

Speaker #8: Good morning. Two for you. When you look at 2026 and beyond, how do you balance leaning into your organic growth led by the sustainability of market share gains compared to positioning the company for other opportunities like M&A that hasn't really been an option for a while?

Speaker #8: And then just if we could get any update on where things stand with any conversations you've had on the Warner Bros. acquisition, both with either Netflix or Paramount Skydance.

Speaker #8: Thank you so much.

Speaker #1: Thanks, Robert. I'll take the first part of your question. So in terms of our strategy for investing in growth, we have a balanced and disciplined approach to capital allocation.

Melissa Thomas: Thanks, Robert. I'll take the first part of your question. So in terms of our strategy for investing in growth, we have a balanced and disciplined approach to capital allocation, and we intend to invest in growth opportunities, including new builds, existing theater enhancements, and M&A, to the extent attractive opportunities present themselves. As you think about M&A, we evaluate all transactions that come to market, and we target high-quality assets with minimal deferred maintenance needs. And consistent with our disciplined approach, we're looking for accretive M&A opportunities at attractive multiples. I'd prefer to deepen our penetration in markets where we already have a presence to leverage established infrastructure, relationships, and market knowledge to drive growth and create value. Naturally, there's other factors we also look at, so scale, strategic importance, competitive positioning, and margin profile.

Speaker #1: And we intend to invest in growth opportunities, including new builds, existing theater enhancements, and M&A to the extent attractive opportunities present themselves. As you think about M&A, we evaluate all transactions that come to market, and we target high-quality assets with minimal deferred maintenance needs.

Speaker #1: And consistent with our discipline approach, we're looking for accretive M&A opportunities at attractive multiples. Prefer to deepen our penetration in markets where we already have a presence to leverage established infrastructure, relationships, and market knowledge to drive growth and create value.

Speaker #1: Naturally, there's other factors we also look at, so scale, strategic importance, competitive positioning, and margin profile. And then in terms of new builds and theater enhancements, we, again, remain disciplined with our capital expenditures.

Melissa Thomas: And then in terms of new builds and theater enhancements, we again remain disciplined with our capital expenditures. We're looking for ROI-generating opportunities that are high confidence and that position the company well for the long term and enhance the guest experience. But overarchingly, we're looking to balance among the three, but that is something that, you know, we're evaluating on an ongoing basis to try to create value for all shareholders.

Speaker #1: We're looking for ROI-generating opportunities that are high confidence and that position the company well for the long term. And enhance the guest experience. But overarchingly, we're looking to balance among the three, but that is something that we're evaluating on an ongoing basis to try to create value for all shareholders.

Speaker #3: And on that last point for Warner Bros., I'll just add too. They're not mutually exclusive, right? I mean, we've got the good news is with the strength that we've recovered of our balance sheet, we have the opportunity to pursue multiple attractive creative types of deals, whether they be new build or M&A to the extent they're there.

Sean Gamble: On that last point for Warner Bros., I'll just add, too, they're not mutually exclusive, right? I mean, we've got the good news is, with the strength that we've recovered on our balance sheet, we have the opportunity to pursue multiple attractive, you know, creative types of deals, whether they be new build or M&A, to the extent they're there. But as Melissa said, we're going to continue to be disciplined in that approach. Specific to the Warner Bros. deal, I don't know if there's a tremendous amount to update on that. Clearly, the overall transaction remains pretty active and fluid in terms of what direction this may go, going forward.

Speaker #3: But as Melissa said, we're going to continue to be disciplined in that approach. Specific to the Warner Bros. deal, I don't know if there's a tremendous amount to update on that.

Speaker #3: Clearly, the overall transaction remains pretty active and fluid in terms of what direction this may go. Going forward, our focus along with our trade organization, Cinema United, has just been to engage directly with all the respective parties as well as the regulators to pursue ultimately pursue an outcome that is in what we believe is in the best interest of our industry, of the creative community, of consumers, and of the local economies that benefit from healthy theaters in their towns.

Sean Gamble: Our focus, along with our trade organization, Cinema United, has just been to engage directly with all the respective parties, as well as the regulators, to pursue, ultimately pursue an outcome that is in what we believe is in the best interest of our industry, of the creative community, of consumers, and of the local economies that benefit from healthy theaters in their towns. And that's, you know, focused on sustained volume of output, with whichever direction this transaction plays out, sustained exclusive theatrical windows in a meaningful way that support the industry, as well as sustained levels of comprehensive marketing campaigns to get that message out.

Speaker #3: And that's a focus on sustained volume of output with whichever direction this transaction plays out. Sustained exclusive theatrical windows in a meaningful way that support the industry.

Speaker #3: As well as sustained levels of comprehensive marketing campaigns to get that message out. Those are the things that have driven value, have been moving in a positive direction with new entrants coming in and growth from different players in terms of volume.

Sean Gamble: You know, those are the things that have driven value, have been moving in a positive direction with new entrants coming in and growth from different players in terms of volume. We just want to make sure that things continue to progress that way versus any type of risk that might ensue from a consolidation of a significant studio like Warner Bros., that has been a strong partner of theatrical exhibition for many, many years and just had a record-breaking performance in 2025.

Speaker #3: And we just want to make sure that things continue to progress that way, versus any type of risk that might ensue from a consolidation of a significant studio like Warner Bros.

Speaker #3: that has been a strong partner of theatrical exhibition for many, many years and just had a record-breaking performance in 2025.

Speaker #8: Sounds good. Thank you, guys.

Eric Wold: ... Sounds good. Thank you, guys.

Robert Fishman: Sounds good. Thank you, guys.

Speaker #3: Thanks, Robert.

Sean Gamble: Thanks, Robert.

Speaker #1: Thank you. The next question is coming from Omar Mejias of Wells Fargo. Please go ahead.

Operator: Thank you. The next question is coming from Omar Mejias of Wells Fargo. Please go ahead.

Speaker #9: Good morning and thanks for the question. Sean, market share has been a key driver of Cinemark's outperformance and we were encouraged by the 4Q results despite the softer box office.

Omar Mejias: Good morning, and thanks for the question. Sean, market share has been a key driver of Cinemark's outperformance, and we were encouraged by the Q4 results, despite the softer box office. I understand that the box office continues to recover. There might be some capacity constraints, but how have you guys been able to gain share, and how do you plan to manage your footprint with the busier slate in 2026?

Speaker #9: I understand that the box office continues to recover. There might be some capacity constraints, but how have you guys been able to gain share and how do you plan to manage your footprint with the busier slate in '26?

Speaker #3: Sure. Well, thanks for the question, Omar. I mean, it's been a variety of things we pursue. I mean, there's if we kind of unpack 2025, first, we were thrilled with our overall results of 2025.

Sean Gamble: Sure. Well, thanks for the question, Omar. I mean, it's been a variety of things we pursue. I mean, if we kind of unpack 2025, first, we were thrilled with our overall results of 2025. We continue to see the benefits of the varied initiatives that we've been pursuing to build our audiences. Everything from our Showtime, you know, programming, to our marketing actions, to our pricing strategies, to our loyalty programs, which we spoke about earlier. You know, all of those things have helped support increasing our structural market share.

Speaker #3: We continue to see the benefits of the varied initiatives that we've been pursuing to build our audiences. Everything from our showtime programming to our marketing actions to our pricing strategies to our loyalty programs which we spoke about earlier.

Speaker #3: All of those things have helped support increasing our structural market share. 2025, in particular, while we had at the beginning of the year expected our market share might moderate a little bit, it actually continued to benefit from a high concentration of outperforming family and horror films, as well as what played out to be more of a balanced cadence of releases throughout the years, which limited the amount of capacity constraints we hit and enabled us to fully optimize our screens.

Sean Gamble: 2025, in particular, while we had at, at the beginning of the year, expected our market share might moderate a little bit, it actually continued to benefit from a high concentration of outperforming family and horror films, as well as what played out to be more of a balanced cadence of releases throughout the years, which limited the amount of capacity constraints we hit and enabled us to fully optimize our screens. So we benefited from that throughout the year. You know, I'll flag that, you know, obviously, our share year to year will fluctuate based on that content mix, and how well individual films resonate with our audiences, as well as those capacity constraints.

Speaker #3: So we benefited from that throughout the year. I'll flag that obviously, our share year-to-year will fluctuate based on that content mix. And how well individual films resonate with our audiences, as well as those capacity constraints.

Speaker #3: So when we look at 2026, in particular, again, we see a highly compelling diverse profile of films on paper as we look at the composition.

Sean Gamble: So when we look at 2026, in particular, again, we see a highly compelling, diverse profile of films on paper as we look at the composition. There is a little bit more crowding that we do see during the summer and year-end, as I, as I alluded to a moment ago. You've got some pretty substantial films in that pocket, which could lead to more, capacity constraints, where we're just fully utilized and don't have the benefit of kind of expanding further, like we were able to do in 2025, which could create a little bit of a headwind, and cause our, our market share to normalize a bit.

Speaker #3: There is a little bit more crowding that we do see during the summer and year-end. As I alluded to a moment ago, you've got some pretty substantial films in that pocket, which could lead to more capacity constraints where we're just fully utilized and don't have the benefit of kind of expanding further like we were able to do in '25. This could create a little bit of a headwind and cause our market share to normalize a bit.

Sean Gamble: Ultimately, it's just gonna depend on how the actual results, film by film, play out and the extent to which, any of those dating decisions spread a bit more from the way they're organized right now.

Speaker #3: Ultimately, it's just going to depend on how the actual results film by film play out. And the extent to which any of those dating decisions spread a bit more from the way they're organized right now.

Omar Mejias: Great. And on alternative content, you guys have seen some notable success recently. Just curious how Cinemark's leaning into this category and what untapped opportunities do you see within this vertical? Thanks.

Speaker #9: Great. And on an alternative content, you guys have seen some notable success recently, just curious how Cinemark's leaning into this category and what on tap opportunities do you see within this vertical?

Speaker #9: Thanks.

Speaker #3: Absolutely. Look, I think alternative content is definitely one of the real positive signs we're seeing with nice growth, similar to younger moviegoers. We're seeing nice growth in younger moviegoers, but specific to alternative content, we've had multiple consecutive years now where alternative programming has been more than 10% of our box office.

Sean Gamble: Absolutely. Look, I think alternative content is definitely one of the real positive signs we're seeing with nice growth, similar to younger moviegoers. We're seeing nice growth in younger moviegoers, but specific to alternative content, we've had multiple consecutive years now where alternative programming has been more than 10% of our box office, and that's not just because of the overall box office. The pure proceeds from alternative content, as an example, in 2025, are up more than double what they were in 2019. Audiences continue to be attracted by this content, and it's a range of different areas. Everything from faith-based films to anime to other foreign films, you know, content creator, concerts. There's a whole slew of things that are... repertory films.

Speaker #3: And that's not just because of the overall box office. The pure proceeds from alternative content as an example in 2025 are up more than double what they were in 2019.

Speaker #3: So audiences continue to be attracted by this content. And it's a range of different areas, everything from faith-based films, to anime, to other foreign films, content creator, concerts, there's a whole slew of things that are repertory films.

Speaker #3: I mean, they just continue to grow in their scale and magnitude. And you're a specific question on what are we doing? I mean, we have a team that is dedicated to finding these kind of opportunities, pursuing them, and then trying to really understand what the potential is so we can optimize how we're programming that throughout our circuit.

Sean Gamble: I mean, they just continue to grow in their scale and magnitude. Your specific question on what are we doing? I mean, we have a team that is dedicated to finding these kind of opportunities, pursuing them, and then trying to really understand what the potential is, so we can optimize how we're programming that throughout our, our circuit. And it's, it's been really successful, and we expect, or at least we're, we're optimistic about continued growth in this area as we move forward.

Speaker #3: And it's been really successful. And we expect or at least we're optimistic about continued growth in this area as we move forward.

Speaker #9: Great. Thank you, guys.

Omar Mejias: Great. Thank you, guys.

Speaker #3: Thank you.

Sean Gamble: Thank you.

Speaker #1: Thank you. Our next question is coming from Mike Hickey of Stonex. Please go ahead.

Operator: Thank you. Our next question is coming from Mike Hickey of StoneX. Please go ahead.

Mike Hickey: Hey, Sean, Melissa, Chanda. Congrats, guys, on a 25, and I appreciate this new format as well. It's very helpful. First question from us is just, Sean, the impact on AI. We've obviously seen AI sort of, you know, pun intended, rewrite the script here of a lot of companies, and being, I guess, destructive here, but it seems like out-of-home entertainment is in a really sweet spot in terms of, you know, not being negatively impacted. I guess the flip side, the positive impact, although delicate, I'm sure, but on film development, it seems like there's a lot of opportunity to reduce expense and time and ultimately increase volume. So I'm just sort of curious, overall, your view on AI and how helpful it can be to your business. Then I have a follow-up.

Speaker #10: Hey, Sean, Melissa, Shanda. Congrats, guys, on a '25. And I appreciate this new format as well. It's very helpful. First question from us is just Sean, the impact on AI, we've obviously seen AI sort of pun intended, rewrite the script here of a lot of companies.

Speaker #10: And being, I guess, destructive here, but it seems like out-of-home entertainment is in a really sweet spot in terms of not being negatively impacted.

Speaker #10: And I guess the flip side, the positive impact, although delicate, I'm sure on film development, it seems like there's a lot of opportunity to reduce expense and time and ultimately increase volume.

Speaker #10: So I'm just sort of curious overall your view on AI and how helpful it can be to your business and I have a follow-up.

Speaker #3: Sure. Well, you captured some of the points nicely there, Mike. And I'd say, broadly, we're optimistic and enthused about the potential AI has in a number of areas.

Sean Gamble: Sure. Well, you captured some of the points nicely there, Mike. And I'd say broadly, we're optimistic and enthused about the potential AI has in a number of areas. I mean, specific in terms of things we're doing within our company, the ability to both drive efficiencies as well as support our revenue growth objectives, we see lots of opportunity. We're already incorporating it into pricing optimization, some of the showtime optimization efforts I mentioned, our app development work in terms of how we're doing our software development. We've even got it going in our hiring activities within HR and our guest services. So there's a whole range of things that we're looking to utilize this for within our own company.

Speaker #3: I mean, specifically in terms of things we're doing within our company, the ability to both drive efficiencies as well as support our revenue growth objectives—we see lots of opportunity.

Speaker #3: We're already incorporating it into pricing optimization, some of the showtime optimization efforts I mentioned, our app development work in terms of how we're doing our software development.

Speaker #3: We've even got it going in our hiring activities within HR and our guest services. So there's a whole range of things that we're looking to utilize this for within our own company.

Speaker #3: And then on the content creation side of things, as you just mentioned, we see lots of potential for AI to unlock new types of capabilities, whether that's in visual effects, pre-vis and efficiencies, just in terms of movie making with timelines and things of that sort, which could lead to an increased volume of movies being made as well as just new quality enhancements along the way.

Sean Gamble: And then on the content creation side of things, as you just mentioned, we see lots of potential for AI to unlock new types of capabilities, whether that's in visual effects, previs, and efficiencies, just in terms of movie making with timelines and things of that sort, which could lead to an increased volume of movies being made, as well as just new quality enhancements along the way. So we see a lot of potential for that. Just as every filmmaker has his or her own unique way of bringing stories to life, it would appear that AI is another tool that can enable select filmmakers to use it effectively and do new things that we haven't seen before.

Speaker #3: So we see a lot of potential for that. Just as every filmmaker has his or her own unique way of bringing stories to life, it would appear that AI is another tool that can enable select filmmakers to use it effectively and do new things that we haven't seen before.

Speaker #3: Obviously, there's quite a bit of risk regarding IP and copyright infringement. And we very much support filmmakers and creatives in our studio partners in their efforts to protect their IP.

Sean Gamble: Obviously, there's quite a bit of risk regarding IP and copyright infringement, and we very much support filmmakers, creatives, and our studio partners in their efforts to protect their IP with AI, as it evolves. But it seems like if that balance can be struck appropriately and the right measures and safeguards are in place, there's just a tremendous amount of potential that AI provides for our business, specifically, and broadly for the industry.

Speaker #3: With AI as it evolves, it seems like if that balance can be struck appropriately, with the right measures and safeguards in place, there's just a tremendous amount of potential that AI provides for our business specifically, and broadly for the industry.

Speaker #10: Nice. Thanks, Sean. Next question on the Warner Brothers deal. And I guess specifically focusing on Netflix here, definitely not asking you to bless anything, but just sort of holistically just sort of your view on a couple of things.

Mike Hickey: Nice. Thanks, Sean. The next question on the Warner Bros. deal, and I guess, specifically focusing on Netflix here. Definitely not asking you to bless anything, but just sort of holistically, just sort of your view on a couple things. One, you know, Netflix was originally thinking of a 17-day window, and I think they shocked and awed a few of us here and went to 45-day window, and maybe that's in front of the streaming, so that's a consideration. But just thinking about a new partner here with a 45-day window, how you think, you know, whether that's workable or not?

Speaker #10: One, Netflix was originally thinking of a 17-day window. And I think they shocked and awed a few of us here and went to a 45-day window.

Speaker #10: And maybe that's in front of streaming. So that's a consideration. But just thinking about a new partner here, with the 45-day window, how you think whether that's workable or not.

Mike Hickey: And then, I guess, just to maybe your own view, Sean, in terms of Netflix, if they're being sincere, or, or maybe if you, if you believe, obviously, you've had conversations with them, they've been ongoing, just as part of your business. If you believe they can be a, a real theatrical partner for you, not just the Warner Bros. asset, but maybe the core asset as well. Thank you.

Speaker #10: And then I guess just to maybe your own view, Sean, in terms of Netflix, if they're being sincere or maybe if you believe, obviously, you've had a conversation with them, they've been ongoing just as part of your business.

Speaker #10: If you believe they can be a real theatrical partner for you, not just the Warner Brothers asset, but maybe the core asset as well.

Speaker #10: Thank you.

Speaker #3: Sure. Thanks, Mike. Look, I'd say we've said this before, for a long while, we've been optimistic that in time, Netflix would recognize the opportunity that theatrical exhibition provides their platform and their content much like all their other peers are doing, whether it's traditional studios, Amazon, even Apple getting a bit into the space.

Sean Gamble: Sure. Thanks, Mike. Look, I'd say, we've said this before for a long while, we've been optimistic that, in time, Netflix would recognize the opportunity that theatrical exhibition provides their platform and their content, much like all their other peers are doing, whether it's, you know, traditional studios, Amazon, you know, even Apple getting a bit into the space. We've seen through data and we've heard from the conversations that theatrical exhibition provides a real meaningful lift to engagement, retention, and interest in those platforms. So, we thought for a long while, there's just value that was being ignored by not taking advantage of that opportunity. We're obviously, you know, look at the recent comments providing some element of encouragement.

Speaker #3: We've seen through data and we've heard from the conversations that theatrical exhibition provides a real meaningful lift to engagement and retention and interest in those platforms.

Speaker #3: So, we thought for a long while there’s just value that was being ignored by not taking advantage of that opportunity. We’re obviously looking at the recent comments, providing some element of encouragement.

Speaker #3: I would say that we, much like our industry at large, are a bit apprehensive in just placing too much stock into those comments, just given how contradictory they now are to many of the other disparaging remarks that have been made over the recent years—even as recently as the middle of last year, when there were references to the industry being outmoded as an idea.

Sean Gamble: I would say that we, much like our industry at large, is a bit apprehensive in just placing too much stock into those comments, just given how contradictory they now are to many of the other disparaging remarks that have been made over the recent years, even as recently as middle of last year, when there was references to the industry being outmoded as an idea. So I think there's gonna need to be more action versus comments to really... And firmer assurances, to give everybody comfort that what's being said is real.

Speaker #3: So I think there's going to need to be more action versus comments to really and firmer assurances to give everybody comfort that what's being said is real.

Sean Gamble: 45-day window, I think generally speaking, we all view that as a good target point that strikes the right balance of giving studios more flexibility with getting content into the home and capitalizing on the market campaigns that have been spent in the theatrical space, without creating too much adverse risk to theatrical performance. As mentioned earlier, in some cases, things have kind of overshot that a bit, and it's causing some concern about what that, that might mean on select films. So it's a good starting point, but it also begs the question of 45 days to what? Like, 45 days to a transactional type of offering in-home, like a, a premium video on demand is one thing, where there's, you know, a, a price point there.

Speaker #3: 45-day window, I think generally speaking, we all view that as a good target point that is strikes the right balance of giving studios more flexibility with getting content into the home and capitalizing on the market campaigns that have been spent in the theatrical space without creating too much adverse risk to theatrical performance as mentioned earlier.

Speaker #3: In some cases, things have kind of overshot that a bit, and it's causing some concern about what that might mean on select films. So it's a good starting point, but it also begs the question of '45 days to what?'

Speaker #3: Like 45 days to a transactional type of offering in-home, like a premium video on demand is one thing. Where there's a price point there, 45-day window to an S5, which consumers generally view as free, is a different type of construct.

Sean Gamble: 45-day window to an SVOD, which consumers generally view as free, is a different type of construct. So there's a lot still to clarify with what exactly is being referenced. And again, I think we're all looking for much firmer assurances that are long-standing for not only a window, but levels of continued investment and also sustained marketing, which is a critical component of this, too, versus just verbal comments and promises.

Speaker #3: So there's a lot still to clarify with what exactly is being referenced and again, I think we're all looking for much firmer assurances that are longstanding for not only a window, but levels of continued investment and also sustained marketing, which is a critical component of this too, versus just verbal comments and promises.

Mike Hickey: Nice. Thank you, guys.

Speaker #10: Nice. Thank you, guys.

Speaker #3: All right. Thanks, Mike.

Sean Gamble: All right, thanks, Mike.

Speaker #1: Thank you. Our next question is coming from Steven Laschik of Goldman Sachs. Please go ahead.

Operator: Thank you. Our next question is coming from Stephen Laszczyk of Goldman Sachs. Please go ahead.

Speaker #11: Hey, great. Thanks for taking the questions. Sean, just would love to get your latest thoughts on what you're expecting to see on the competitive front.

Stephen Laszczyk: Hey, great. Thanks for taking the questions. Sean, just would love to get your latest thoughts on what you're expecting to see on the competitive front this year. And if you're seeing anything that as you make your way out of 2025 into 2026, that might make you more confident that some of the recent gains in market share are perhaps more structural or could become structural with how you position the brand as you look ahead into this next year.

Speaker #11: This year, and if you're seeing anything that, as you make your way out of 25 into 26, that might make you more confident that some of the recent gains in market share or perhaps more structural or could become structural with how you position the brand as you look ahead into this next year.

Speaker #3: Sure. Well, look, I think from a broad competitive landscape, I think competition just continues to grow. I think we see industry at large improving marketing capabilities, continuing to lean into amenities and upgrades.

Sean Gamble: Sure. Well, look, I think, you know, from a broad competitive landscape, I think, competition just continues to grow. I think we see the industry at large improving marketing capabilities, continuing to lean into amenities and upgrades. I think that's a good thing on the whole, because it creates an overall lift for everybody. We too, obviously, are continuing to ratchet up our competitiveness, pursuing ongoing initiatives in all the different areas we've talked about before, to try to push our share even further. I think, you know, the structural gains we've talked about, we're very pleased about. It's we do our best to kind of tease out how much is content mix and capacity constraints relative to structural things.

Speaker #3: And I think that's a good thing on the whole because it creates a overall lift for everybody. We too, obviously, are continuing to ratchet up our competitiveness pursuing ongoing initiatives in all the different areas we've talked about before.

Speaker #3: To try to push our share even further. I think the structural gains we've talked about were very pleased about. It's we do our best to kind of tease out how much is content mix and capacity constraints relative to structural things.

Speaker #3: But we've said we believe at least 100 basis points, growing beyond that, 100 basis points of our gains since pre-pandemic levels, we believe are sustainable and we continue to push that further.

Sean Gamble: But, we've said, you know, we believe at least 100 basis points, you know, growing beyond that, 100 basis points of our gains since pre-pandemic levels, we believe are sustainable, and we continue to push that further. So, I think, you know, I think, we feel good about the direction we're heading in, and, I think, our ability to continue to compete as overall competition grows.

Speaker #3: So I think I think we feel good about the direction we're heading in and I think our ability to continue to compete as overall competition grows.

Speaker #11: Great. Thanks for that. And then Melissa, maybe just a follow-up on margin. Curious if there's any more help you could perhaps provide investors just on the magnitude of margin expansion you would expect to see in 2026 if box performed in line with expectations and given some of the puts and takes you called out on the expense side, a bit earlier.

Stephen Laszczyk: Great. Thanks for that. Then, Melissa, maybe just a follow-up on margin. Curious if there's any more help you could perhaps provide investors just on the magnitude of margin expansion you would expect to see in 2026 if box performed in line with expectations, and given some of the puts and takes you called out on the expense side a bit earlier. Thank you.

Speaker #11: Thank you.

Speaker #12: Yeah. Super about a margin perspective. Again, as I mentioned earlier, really box office and attendance are going to be the primary drivers and given anticipated growth, we do believe that that supports margin expansion.

Melissa Thomas: Yeah, I think from a margin perspective, again, as I mentioned earlier, really, box office and attendance are gonna be the primary drivers. And given anticipated growth, we do believe that that supports margin expansion, but there are a number of other variables at play. We've talked about on the average ticket price side and per cap side, that we do expect to continue to grow those top-line measures. We've talked about market share a bit. We'll have to see how the film slate, how individual films, shake out to see where market share trends. And then from a big picture expense standpoint, as I was alluding to earlier, so we do expect to gain some leverage over our fixed costs, and that's particularly in the US, where we have a higher fixed cost structure.

Speaker #12: But there are a number of other variables at play. We've talked about, on the average ticket price side and per cap side, that we do expect to continue to grow.

Speaker #12: Those top-line measures, we talked about market share a bit. We'll have to see how the film slate how individuals films shake out to see where market share trends and then from a big picture expense standpoint, as I was alluding to earlier, so we do expect to gain some leverage over our fixed costs.

Speaker #12: And that's particularly in the US, where we have a higher fixed cost structure on the variable expense side—film rental and advertising, salary and wages, concession supplies—and then, in the case of international, facility lease expense.

Melissa Thomas: On the variable expense side, film rental and advertising, salary and wages, concession, supplies, and then in the case of international, facility lease expense, those will fluctuate based on attendance and box office performance, although not necessarily at the same rate. Other factors from a modeling standpoint to consider would be ongoing inflation impacts on wage rates and certain concession categories. Also, from a film rental standpoint, just keep in mind that that's going to vary depending upon the mix of blockbuster content. And then utilities and other expenses, I would just call out there, we expect them to remain elevated as we continue to address deferred maintenance needs across the circuit, albeit from a year-over-year standpoint, I don't expect that to be a meaningful headwind, given that we started those efforts in 2025.

Speaker #12: Those will fluctuate based on attendance and box office performance, although not necessarily at the same rate. Other factors from a modeling standpoint to consider would be ongoing inflation, impacts on wage rates and certain concession categories.

Speaker #12: Also from a film rental standpoint, just keep in mind that that's going to vary depending upon the mix of blockbuster content. And then utilities and other expenses, I would just call out there.

Speaker #12: We expect them to remain elevated as we continue to address deferred maintenance needs across the circuit. Albeit, from a year-over-year standpoint, I don't expect that to be a meaningful headwind, given that we started those efforts in 2025.

Melissa Thomas: Also on utilities and other, just keep in mind electricity costs, which continue to be impacted by rising market rates. Outside of that, we continue, as always, to pursue productivity initiatives and cost mitigation strategies to maximize our profitability and margin potential.

Speaker #12: Also, on utilities and other, just keep in mind electricity costs, which continue to be impacted by rising market rates. Outside of that, we continue as always to pursue productivity initiatives and cost mitigation strategies to maximize our profitability and margin potential.

Speaker #11: Great. Thank you both.

Stephen Laszczyk: Great. Thank you both.

Sean Gamble: Mm-hmm. Thanks, Ian.

Sean Gamble: Mm-hmm. Thank you.

Speaker #3: Thanks, Steven.

Speaker #1: Thank you. At this time, I'd like to turn the floor back over to Mr. Gamble for closing comments.

Operator: Thank you. At this time, I'd like to turn the floor back over to Mr. Gamble for closing comments.

Speaker #3: Okay. Thank you, Donna, for your help and thank you to everyone for joining us this morning. Really appreciate the time and all your questions.

Sean Gamble: Okay. Thank you, Donna, for your help, and thank you to everyone for joining us this morning. Really appreciate the time and all your questions, and we look forward to reconnecting in a few months to share and discuss our Q1 2026 results. Have a great day.

Speaker #3: And we look forward to reconnecting in a few months to share and discuss our first quarter of 2026 results. Have a great day.

Operator: Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the website at this time, and enjoy the rest of your day.

Speaker #1: Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the website at this time. And enjoy the rest of your day.

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