Q4 2025 AMC Entertainment Holdings Inc Earnings Call

February 24, 2026

Everyone. Many todays AMC Entertainment Holdings, Inc, fourth quarter and full year 2025 earnings webcast. At this time all participants are in a listen only mode. Later, you will have the opportunity to ask questions. During the question and answer session.

Speaker #1: Q4, that a few months ago AMC and Netflix made the joint decision to partner together. This was a significant departure from our two companies staying at arm's length from each other over a period of many years.

To register to ask a question at any time. Please press star one on your telephone keypad. Please.

Please note. This call is being recorded when you're standing by should you need any assistance. It is now my pleasure to turn the meeting over to John Merriwether, Vice President capital markets. Please go ahead.

Speaker #1: That effort started in bringing Netflix's popular K-pop Demon Hunters to AMC theaters over the Halloween weekend. That collaboration between AMC and Netflix proved highly successful, with AMC delivering to Netflix approximately 35% of the film's total attendance during that holiday weekend timeframe.

Thank you Stephanie.

Good afternoon, I'd like to welcome everyone to Amc's fourth quarter and full year 2025 earnings webcast.

Speaker #1: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help you.

With me. This afternoon is Adam Aron, our chairman and CEO and Sean Goodman, our Chief Financial Officer.

Before I turn the webcast over to Adam I would like to remind everyone that some of the comments made by management. During this webcast may contain forward looking statements that are based on management's current expectations.

Numerous risks uncertainties and other factors may cause actual results to differ materially from those that might be expressed today.

Speaker #1: Building quickly on that momentum, our dialogue with Netflix continued, resulting in AMC's hosting the series finale of Stranger Things in some 231 AMC theaters across the United States over New Year's Eve and New Year's Day.

Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-K and 10-Q.

Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict.

Speaker #1: The response to that AMC-Netflix offering in theaters wildly exceeded all of our expectations. We initially only put on sale about 105,000 seats or so but went with all done a month later AMC had the privilege to welcome more than 753,000 Stranger Things fans collecting approximately 15 million dollars in cash from Netflix fans watching the Netflix product in an AMC theater.

In light of the uncertainties inherent in any forward looking statements.

Listeners are cautioned against relying on these statements. The company undertakes no obligation to revise or update any forward looking statements, whether as a result of new information or future events.

On this webcast, we may reference non-GAAP financial measures, such as adjusted EBITDA and constant currency among others.

For a full reconciliation of our non-GAAP measures to GAAP results. Please see our earnings release posted in the Investor Relations section of our website.

After our prepared remarks, there will be a question and answer session.

Speaker #1: Please stand by. Your meeting is about to begin. Hello and welcome, everyone, to today's AMC ENTERTAIN HOLDINGS, Inc. Fourth quarter and full year 2025 earnings webcast.

This afternoons webcast as recorded is being recorded and a replay will be available in the Investor Relations section of our website at AMC theaters Dot com later today.

With that I'll turn the call over to Adam.

Speaker #1: In just two days, it was a powerful demonstration of the demand for shared theatrical experiences tied to culturally significant content. The success of our recent collaboration with Netflix highlights the strategic opportunity that lies ahead and I am certain that we'll have more adventures together cooperatively with Netflix.

Thank you John Hello, everybody.

Speaker #1: At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad.

Before I begin today's call I'd.

Blake.

Make a personal comment if I can.

As you undoubtedly know.

In early December.

Speaker #1: Please note this call is being recorded. We are standing by should you need any assistance. It is now my pleasure to turn the meeting over to John Merriwether, Vice President Capital Markets.

My return to Amc's Homebase in Kansas City.

I put out a press release, which advise you all that just before Thanksgiving.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Stephanie. good afternoon. I'd like to welcome everyone to AMC's fourth quarter and full year 2025 earnings webcast. With me this afternoon is Adam Aron, our Chairman and CEO.

During a business trip to London.

Speaker #1: With roughly two-thirds of AMC's stubs loyally members also subscribing to Netflix, the audience overlap between our two companies is both significant and compelling. As a result, our companies are two companies should be the best of friends, and I can confirm to you that AMC is enthusiastic about the prospect of expanding our relationship with Netflix.

I suffered a minor stroke.

Fortunately for me.

I got immediate care.

<unk>, London Hospital run by the United Kingdom's National Health service.

Speaker #2: And Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, I'd like to remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on management's current expectations.

It was envisioned that I would have a speedy and full recovery.

There was no cognitive problem at the time of the stroke, no issue with reasoning or logic or decision, making or memory.

Speaker #2: Numerous risks uncertainties and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks and uncertainties are discussed in our most recent public filings including our most recently filed 10-K and 10-Q.

Other than that for a day or so I completely lost my ability to speak.

Speaker #1: We look forward to working together to create innovative mutually beneficial theatrical events that drive value for both companies. The second thing that I'd like to mention before closing: with the recent meteoric rise in the share price of Highcroft Mining Company, I could not be more pleased to report to you that our investment in Highcroft has met and exceeded attractive financial hurdle returns.

That was 14 weeks ago, you can here for yourselves my voice today.

Speaker #2: Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict. In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned against relying on these statements.

My voice is back.

I am delighted to report to you all that I'm in fighting shape.

And fully ready to do balance.

Speaking of which.

Speaker #2: The company undertakes no obligation to revise or update any forward-looking statements whether as a result of new information or future events. On this webcast, we may reference non-GAAP financial measures such as adjusted EBITDA, in constant currency, among others.

Let's talk about AMC.

As we close the books on 2025.

And one thing is clear.

This was a year of meaningful progress with AMC, both operationally and financially.

Speaker #1: In November of 2025, we monetized just more than $24 million from a partial sale of our Highcroft stake but importantly at the time we said that we would retain a significant number of shares and warrants to continue to experience upside.

Speaker #2: For a full reconciliation of our non-GAAP measures to GAAP results, please see our earnings release posted in the investor relations section of our website.

While it is frustrating for us.

The industry recovery unfolded at a much more measured pace than many including ourselves originally expected or hoped.

Speaker #2: After our prepared remarks, there will be a question-and-answer session. This afternoon's webcast is being recorded, and a replay will be available in the Investor Relations section of our website at amctheaters.com later today.

Even so the trajectory clearly remained positive at AMC once again distinguished itself through consistent outperformance.

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

Speaker #1: Those remaining shares and warrants in Highcroft are worth right about $39 million at today's market closing price. So that $63 million or so in total compares quite favorably to the $29 million that we invested in Highcroft four years ago.

Speaker #3: Thank you, John. Hello, everybody. Before I begin today's call, I'd like to make a personal comment, if I can. As you undoubtedly know, in early December, upon my return to AMC's home base in Kansas City, I put out a press release which advised you all that just before Thanksgiving, during a business trip to London, I suffered a minor stroke.

Feeding the expectations of many who down on us.

Even in a softer industry environment for the fourth quarter.

2025, where the North American box office declined by some four 4% AMC Nonetheless.

Speaker #1: For those of you who scoffed at our Highcroft investment at that time, and there were many of you, you were wrong and we were right.

Administrated strength and resilience for.

For the fourth quarter AMC generated approximately $1 two $9 billion in total revenue.

Speaker #3: Fortunately for me, I got immediate care at a superb London hospital run by the United Kingdom's National Health Service, and it was envisioned that I would have a speedy and full recovery.

$134 million of adjusted EBIT.

Speaker #1: As we conclude, AMC's resilience continues to set us apart. While the industry recovery has progressed more gradually than anyone might have originally anticipated or wished to see occur, even so, AMC has remained agile, disciplined, and firmly focused on long-term value creation.

And notably a $127 million of cash from operating activities.

Speaker #3: There was no cognitive problem at the time of the stroke, no issue with reasoning or logic or decision-making or memory, other than that for a day or so I completely lost my ability to speak.

Along the way, especially our domestic U S theaters once again delivered with a 140 basis points of industry outperformance as we continued to capture increased market share.

Speaker #3: That was 14 weeks ago. You can hear for yourselves my voice today. My voice is back. I am delighted to report to you all that I am in fighting shape and fully ready to do balance.

That's a testament to the strength.

Speaker #1: AMC has demonstrated our ability to navigate a dynamic environment, some would say an extremely difficult and challenging environment, but all the while we did so we also strengthened our competitive position and we emerged poised to capture gain from the opportunities that we believe are ahead.

The marketing and loyalty platforms and AMC the.

Growing consumer preference for our industry, leading premium large format and extra large format offerings.

Speaker #3: Speaking of which, let's talk about AMC. As we close the books on 2025, one thing is clear. This was a year of meaningful progress with AMC, both operationally and financially.

And our commitment to deliver the very best.

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We believe that AMC has a powerful and commanding market lead.

Speaker #1: That opportunity is now at hand. We expect the box office to rise in 2026 and please remember from this call that two most important words that are relevant to AMC: operating leverage.

Our market share confirms that AMC represents more than one out of four of all the box office dollars.

Speaker #3: While it is frustrating for us that the industry recovery unfolded at a much more measured pace than many including ourselves originally expected or hoped, even so, the trajectory clearly remained positive, and AMC once again distinguished itself through consistent outperformance exceeding the expectations of many who doubted us.

Generated in the United States.

AMC is about 50% larger in size than the second or the third largest U S players and everyone else in our highly fragmented industry has only a one or 2% market share or even less than that.

Shawn will discuss our full year financial results.

Speaker #3: Even in a softer industry environment for the fourth quarter, of 2025, where the North American box office declined by some 4.4%, AMC nonetheless demonstrated strength and resilience.

In more detail, but let me point you to this.

Speaker #3: For the fourth quarter, AMC generated approximately $1.29 billion in total revenue, $134 million of adjusted EBITDA, and notably, $127 million of cash from operating activities.

In 2025 <unk>.

Continuing an improvement trend that has been the case for several years now.

We worked so hard at AMC to make our company more efficient.

Globally.

Our attendance in the full year was down two 1%, but our adjusted EBITDA was up 12, 7%.

Speaker #3: Along the way, especially our domestic US theaters once again delivered. With a 140 basis points of industry outperformance, as we continued to capture increased market share.

That's a striking contrast.

There's so much operating leverage in our company.

Speaker #3: That's a testament to the strength of the marketing and loyalty platforms at AMC, the growing consumer preference for our industry-leading premium large-format and extra-large-format offerings, and our commitment to deliver the very best in theatrical entertainment experiences.

I cannot emphasize this point enough.

The operating leverage in our company is meaningful.

<unk> two thirds of the incremental revenue dollar drops down to the adjusted EBITDA line.

So.

If and when our revenues are growing.

Our adjusted EBITDA at AMC can grow and do so meaningfully.

Speaker #3: We believe that AMC has a powerful and commanding market lead. Our market share confirms that AMC represents more than one out of four of all the box office dollars generated in the United States.

That's our expectation for 2026.

No one's crystal ball is perfect.

But most knowledgeable forecasters have the 2026 movie slate being considerably richer.

Speaker #3: AMC is about 50% larger in size than the second or the third largest U.S. players. And everyone else in our highly fragmented industry has only 1 or 2% market share, or even less than that.

And that of the past three years or for that matter the past six years.

And that is so vital.

Because candidly the economic levels.

Speaker #3: Sean will discuss our full year financial results in more detail, but let me point you to this. In 2025, continuing an improvement trend that has been the case for several years now, we've worked so hard at AMC to make our company more efficient.

We experienced in 2025 are simply not sufficient.

To carry the day.

But in looking into 2026.

We are optimistic and we are confident.

Disney and Universal have would look to be Fabulous movie slates.

Warner Brothers says it will be releasing more movies in 2026 Paramount.

Speaker #3: Globally, our attendance in the full year was down 2.1%, but our adjusted EBITDA was up 12.7%. That's a striking contrast. And there's so much operating leverage in our company.

Says that it will be releasing more movies in 2026, Amazon MGM says that it will be releasing more movies in 2026 theatrically.

Theatrically, even Netflix has the capability to be releasing more movies and smaller operations like <unk> 24 in the Haynesville studios among others.

Speaker #3: I cannot emphasize this point enough. The operating leverage in our company is meaningful. Approximately two-thirds of the incremental revenue dollar drops down to the adjusted EBITDA line.

Also seem poised.

To embrace theatrical exhibition with ambition.

Speaker #3: So if and when our revenues are growing, our adjusted EBITDA at AMC can grow and do so meaningfully. That's our expectation for 2026. No one's crystal ball is perfect, but most knowledgeable forecasters have the 2026 movie slate being considerably richer than that of the past three years.

With an increased count a widely released film titles coming out in 2026.

It is our firm expectation in AMC.

The industry box office will grow markedly in 2026.

That amc's market share will remain compelling.

And then the very real operating leverage inherent in our business will kick in in such a way that it can cause dramatic improvement in amcs.

Speaker #3: Or for that matter, the past six years. And that is so vital because candidly, the economic levels that we experienced in 2025 are simply not sufficient to carry the day.

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2026 has only just begun.

But encouragingly January was off to a strong start with our North American box office up approximately 16% compared to last year.

Speaker #3: But in looking to 2026, we are optimistic and we are confident. Disney and Universal have what look to be fabulous movie slates. Warner Bros.

And growth in the European market has been even more significant.

Speaker #3: says that it will be releasing more movies in 2026. Paramount says that it will be releasing more movies in 2026. Amazon MGM says that it will be releasing more movies in 2026.

Across the 12 months a year ahead.

The film slate is shaping up to be one of the most compelling in recent memory anchor.

Anchored by an extraordinary lineup of films.

Only be described as a parade of juggernauts.

Speaker #3: Theatrically, even Netflix has the capability to be releasing more movies. And smaller operations like A24 and Angel Studios, among others, also seem poised to embrace theatrical exhibition with ambition.

That are ideally suited.

The amcs industry, leading network of highly productive high grossing theaters.

Based on the strange.

The upcoming release slate, we believe the North American box office in 2026.

Speaker #3: With an increased count of widely released film titles coming out in 2026, it is our firm expectation at AMC that the industry box office will grow markedly in 2026.

Could increase by approximately $500 million to as much as more than $1 billion greater.

That was the case in 2025.

And as I just articulated.

Speaker #3: That AMC's market share will remain compelling. And that the very real operating leverage inherent in our business will kick in in such a way that it can cause dramatic improvement in AMC's financial results.

As previously reported AMC financial results prove out to be true.

With rising revenues the.

The growth in Amcs or adjusted EBITDA.

Can be substantial.

I'm not going to take you through the list of 2026 movies title by title.

Speaker #3: 2026 has only just begun, but encouragingly, January was off to a strong start with a North American box office up approximately 16% compared to last year.

That impressive cavalcade should play out during the year.

Suffice it to say, though.

That we expect to see a rising industry wide box office in 2026.

Speaker #3: And growth in the European market has been even more significant. Across the 12-month year ahead, the film slate is shaping up to be one of the most compelling in recent memory, anchored by an extraordinary lineup of films that can only be described as a parade of juggernauts that are ideally suited to AMC's industry-leading network of highly productive, high-grossing theaters.

The biggest since 2019.

And with the operating leverage of incremental revenues.

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Rising 2026 revenues bode well to engender.

Material and positive impact.

On AMC.

I do want to be clear, though that we will likely need at least a strong 2027 film slate as well, which we do expect by the way for AMC to be cash flow positive in the outer years.

Speaker #3: Based on the strength of the upcoming release slate we believe that the North American box office in 2026 could increase by approximately 500 million dollars to as much as more than 1 billion dollars greater than was the case in 2025.

But the considerable progress that we expect to make.

This year 2026, shouldnt fill us all with heightened confidence.

As to our future.

Now, let's turn from operating leverage to financial leverage and.

And the improvements taking place within the AMC balance sheet.

Speaker #3: And as I just articulated, and as previously reported, AMC financial results prove out to be true. With rising revenues, the growth in AMC's adjusted EBITDA can be substantial.

Strengthening the AMC balance sheet remains an extremely important strategic priority for this company.

Since the end of 2020.

AMC has reduced total debt by approximately $1.8 billion.

Speaker #3: I'm not going to take you through the list of 2026 movies title by title, that impressive cavalcade should play out during the year. Sufficient to say, though, that we expect to see a rising industry-wide box office in 2026, the biggest since 2019.

Including a $1 4 billion reduction in the principal balance of our outstanding debt.

And an additional $420 million repayment.

Covid related.

Theater.

Rental lease deferrals.

Speaker #3: And with the operating leverage of incremental revenues translating to incremental adjusted EBITDA, rising 2026 revenues bode well to engender a material and positive impact on AMC.

During 2025.

AMC continued to take capital markets actions to strengthen our balance sheet and prepare for the anticipated box office recovery that we think is coming this year.

Speaker #3: I do want to be clear, though, that we will likely need at least a strong 2027 film slate as well, which we do expect, by the way, for AMC to be cash flow positive in outer years.

In July of 2025, we closed a series of transformative transactions.

Including receiving more than $240 million in cash from new debt issuance.

Speaker #3: But the considerable progress that we expect to make in this year 2026 should fill us all with heightened confidence as to our future. Now let's turn from operating leverage to financial leverage and the improvements taking place within the AMC balance sheet.

And the equity position.

Of $183 million in debt.

The potential to <unk>, even more up to a total of approximately $337 million.

These transactions again.

All I repeat all of our 2026 debt maturities pushing them out to <unk>.

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Speaker #3: Strengthening the AMC balance sheet remains an extremely important strategic priority for this company. Since the end of 2020, AMC has reduced total debt by approximately $1.8 billion, including a $1.4 billion reduction in the principal balance of our outstanding debt and an additional $420 million repayment of COVID-related theater rental lease deferrals.

In addition to.

Just last week, we launched yet another transaction to refinance.

Another approximately $2 4 billion of our debt.

Successful.

That refinancing will extend the maturity of that debt from 2027 and 2029, all the way out to 2031.

Simply put.

At AMC, we continue to do exactly what we said we would do.

Take decisive action for AMC entertainment to fortify our financial Foundation.

Speaker #3: During 2025, AMC continued to take capital markets actions to strengthen our balance sheet and prepare for the anticipated box office recovery that we think is coming this year.

To bolster our cash reserves.

Enhance our flexibility.

With that I'll now turn the call over to Sean Goodman, our CFO Shaun.

Thanks, Adam and good afternoon to everyone.

Speaker #3: In July of 2025, we closed a series of transformative transactions including receiving more than 240 million dollars in cash from new debt issuance and the equitization of 183 million dollars in debt with the potential to equitize even more up to a total of approximately 337 million dollars.

As Adam noted 2025 did represent a year of meaningful operational and financial progress.

Although the industry box office did fall short of expectations AMC performed exceedingly well in the areas that are within our direct control.

For the full year 2025, the North American industry box office increased by a modest one 5%.

And the industry attendance in the European markets in which we operate declined by approximately 3% versus 2024.

Speaker #3: These transactions addressed all, I repeat, all of our 2026 debt maturities pushing them out to 2029. In addition, just last week, we launched yet another transaction to refinance another approximately 2.4 billion dollars of our debt.

Nonetheless at AMC, we grew consolidated revenue by four 6% versus 2024 to more than $4 $8 billion as we welcomed more than 219 million guests to our theaters across state lines.

And we grew adjusted EBITDA to approximately $388 million.

Speaker #3: If successful, that refinancing will extend the maturity of that debt from 2027 and 2029 all the way out to 2031. Simply put, at AMC, we continue to do exactly what we said we would do: take decisive action, for AMC Entertainment to fortify our financial foundation, to bolster our tax reserves, and to enhance our flexibility.

And nearly 13% year over year improvement.

All of this in an essentially flat industry box office environment.

We achieved these consolidated financial results with a record setting per patron revenue and per patron profit metrics.

Admissions revenue per patron grew five 9% to a record of $12 in mind.

Food and beverage revenue per patron grew five 1% to a record of $7 62 sites.

Speaker #3: With that, I'll now turn the call over to Sean Goodman, our CFO. Sean?

And total revenue per patron grew six 8% to another record of $22.10.

Speaker #2: Thanks, Adam. And good afternoon to everyone. As Adam noted, 2025 did represent a year of meaningful operational and financial progress. Although the industry box office did fall short of expectations, AMC performed exceedingly well in the areas that are within our direct control.

Importantly, our contribution margin per patron. This is defined as total revenue less film exhibition and food and beverage costs divided by attendance. This metric grew seven 2% to yet another record setting $14 80. This.

Speaker #2: For the full year 2025, the North American industry box office increased by a modest 1.5%. An industry attendance in the European markets in which we operate declined by approximately 3% versus 2024.

Measure of per patron profitability is now 51% higher than in pre pandemic 2019.

Underscoring the meaningful improvements that we've made to the business over the last few years.

Breaking down our results by segment, starting with U S operations, we outperformed the North American box office growing on admissions revenue by three 9% 240 basis points in excess of the overall industry growth.

Speaker #2: Nonetheless, at AMC, we grew consolidated revenue by 4.6% versus 2024 to more than 4.8 billion dollars as we welcomed more than 219 million guests to our theaters across the globe.

This outperformance helped drive total revenue growth of four 6% along with a nearly 15% increase in adjusted EBITDA.

Speaker #2: And we grew adjusted EBITDA to approximately 388 million dollars and nearly 13% year over year improvement, all of this in an essentially flat industry box office environment.

And consistent with the overall consolidated trends I referenced earlier, our U S theaters delivered record breaking per patron metrics for admissions food and beverage and total revenue with total revenue per patron growing five 3% to $23 79.

Speaker #2: We achieved these consolidated financial results with record-setting per-patron revenue and per-patron profit metrics. Admissions revenue per patron grew 5.9% to a record of $12.09.

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In addition, the business generated a record per patron contribution margin of $15 69.

Speaker #2: Food and beverage revenue per patron grew 5.1% to a record of $7.62. And total revenue per patron grew 6.8% to another record of $22.10.

Five 7% improvement over the prior year.

Domestic total revenue per patron is now 48%.

Is now up 48% versus pre pandemic 2019, and domestic contribution margin per patron is now up 36% compared to pre pandemic 2019.

Speaker #2: Importantly, our contribution margin per patron—this is defined as total revenue less form exhibition and food and beverage costs—divided by attendance, this metric grew 7.2% to yet another record-setting $14.80.

Now turning to our international operations.

Note that the results are impacted by an increase in foreign currency exchange rates of approximately four 5% year over year.

Speaker #2: This measure of per patron profitability is now 51% higher than in pre-pandemic 2019. Underscoring the meaningful improvements that we have made to the business over the last few years.

With attendance at our international theaters are down five 5% versus the prior year revenue grew by 4% four 6% was flat in constant currency and adjusted EBITDA declined by two 1% or 10% in constant currency.

Speaker #2: Breaking down our results by segment, starting with US operations, we outperformed the North American box office, growing our admissions revenue by 3.9%, 240 basis points in excess of the overall industry growth.

Our international theaters also delivered record breaking per patron metrics admissions food and beverage and total revenues with total revenue per patron growing 10, 6% or five 8% in constant currency.

Speaker #2: This outperformance helped drive total revenue growth of 4.6% along with a nearly 15% increase in adjusted EBITDA. And consistent with the overall consolidated trends I referenced earlier, our US theaters delivered record-breaking per patron metrics for admissions, food and beverage, and total revenue with total revenue per patron growing 5.3% to 23.79.

Record setting $17.97 and contribution margin per patron growing 11, 3% or six 4% in constant currency to a record setting $12 and 61.

Total international revenue per patron is now up 32% versus 2019 and international contribution margin per patron is up 37% compared to pre pandemic 2019.

Speaker #2: In addition, the business generated a record per patron contribution margin of $15.69, a 5.7% improvement over the prior year. Domestic total revenue per patron is now up 48% versus pre-pandemic 2019, and domestic contribution margin per patron is now up 56% compared to pre-pandemic 2019.

Our results for 2025 reflect the effectiveness of our industry, leading loyalty programs innovative pricing strategies leadership and premium formats, and innovative food and beverage offerings complemented by a relentless focus on the efficiency of our operations and optimal.

<unk> of our theater footprint.

In that regard, we continue to execute and transformation of our theater portfolio.

Speaker #2: Now turning to our international operations, note that the results are impacted by an increase in foreign currency exchange rates of approximately 4.5% year over year.

Negotiating more favorable lease economics.

Sitting underperforming locations and selectively acquiring high quality theaters that enhance our network.

Speaker #2: With attendance at our international theaters down 5.5% versus the prior year, revenue grew by 4.6%, or was flat in constant currency, and adjusted EBITDA declined by 2.1%, or 10% in constant currency.

During 2025, we closed 21 locations and we opened three.

Since 2020, we've now closed 213 locations and opened 65 locations for a net reduction of 148 theaters or roughly 15% of our portfolio.

Speaker #2: Our international theaters also delivered record-breaking per patron metrics for admissions, food and beverage, and total revenue, with total revenue per patron growing 10.6%, or 5.8% in constant currency, to a record-setting $17.97.

This ongoing reshaping of our footprint reflects our commitment to improve asset productivity expand margins and position AMC for sustainable long term growth.

Speaker #2: And contribution margin per patron growing 11.3% or 6.4% in constant currency to a record-setting $12.61. Total international revenue per patron is now up 32% versus 2019, and international contribution margin per patron is up 37% compared to pre-pandemic 2019.

Now, let's move to the balance sheet.

We ended the year with $428 million of cash.

This excludes restricted cash.

Our free cash flow for the year was a use of cash equal to $366 million.

It's very important to note that this negative free cash flow was entirely related to the first quarter of 2025 and.

Speaker #2: Our results for 2025 reflect the effectiveness of our industry-leading royalty programs, innovative pricing strategies, leadership in premium formats, and innovative food and beverage offerings, complemented by a relentless focus on the efficiency of our operations and optimization of our theater footprint.

And that for the nine months ending December 31, 2025, we generated positive free cash flow of $51 million.

As you may recall, our traditional working capital cycle is closely tied to the seasonality of the Baxalta January. This has resulted in a positive cash impact from working capital in the second and fourth quarters with a negative cash impact in the first and third quarters, the first quarter typically.

Speaker #2: In that regard, we continue to execute advanced formation of our theater portfolio. Negotiating more favorable lease economics exiting underperforming locations and selectively acquiring high-quality theaters that enhance our network.

<unk> the largest negative cash impact this.

This patent how true in 2025, and assuming some of the box office seasonality, we would expect this cadence to exist in 2026.

Speaker #2: During 2025, we closed 21 locations, and we opened 3. Since 2020, we've now closed 213 locations and opened 65 locations for a net reduction of 148 theaters or roughly 15% of our portfolio.

As Adam said strengthening our balance sheet has been and will continue to be a top priority. This includes maintaining robust liquidity and continuing to pursue opportunities to extend debt maturities.

<unk> debt servicing costs and decrease the principal balance of our debt.

Speaker #2: This ongoing reshaping of our footprint reflects our commitment to improve asset productivity, expand margins, and position AMC for sustainable long-term growth. Now let's move to the balance sheet.

As Adam noted as well, we recently launched a refinancing transaction targeting our $2 billion term loan during 2029, and a 400 million Odeon notes due in 2027.

Speaker #2: We ended the year with $428 million of cash. This excludes restricted cash. Our free cash flow for the year was a use of cash equal to $366 million.

This new debt offering if successful will address the vast majority of our 2027 debt maturities extend a significant portion of our debt maturities to 2031, simplify our capital structure and reduce our debt servicing costs.

Speaker #2: It's very important to note that this negative free cash flow was entirely related to the first quarter of 2025. And that for the nine months ending December 31, 2025, we generated positive free cash flow of $51 million as you may recall.

In addition, we're also in the market with an at the market equity offering proceeds from the offering will be used to strengthen our balance sheet and also allow us to continue to invest in our core business elevate and differentiate the moviegoing experience for our guests.

Speaker #2: Our traditional working capital cycle is closely tied to the seasonality of the box office. Generally, this has resulted in a positive cash impact from working capital in the second and fourth quarters, with a negative cash impact in the first and third quarters.

As of last Friday, we received $26 $2 million of gross proceeds from this equity offering.

Our capital allocation priorities are clear and consistent.

First and 10, a robust liquidity and strengthen the balance sheet and second invest in our core business to elevate the guest experience.

Speaker #2: The first quarter typically representing the largest negative cash impact. This pattern held true in 2025, and assuming similar box office seasonality, we would expect this cadence to exist in 2026.

Disciplined approach to capital allocation reflects our commitment to building an increasingly strong and resilient company to deliver long term shareholder value.

Speaker #2: As Adam said, strengthening our balance sheet has been and will continue to be a top priority. This includes maintaining robust liquidity, and continuing to pursue opportunities to extend debt maturities reduce debt servicing costs, and decrease the principal balance of our debt.

From a capital expenditure standpoint.

2025, Capex net of lease incentives totaled $200 million.

Exactly at the midpoint of our previously communicated 175 million to $225 million range and.

And we expect 2026 capex.

Speaker #2: As Adam noted as well, we recently launched a refinancing transaction targeting our $2 billion term loan due in 2029, and our $400 million ODIN notes due in 2027.

Net of lease incentives to be between the same range of $175 million to $225 million.

Okay.

Looking ahead, we see an exceptionally strong film slate in 2026 and beyond and the operating leverage inherent in our business coupled with continued success in growing that per patron revenue and per patron profit matrix means that we are very well positioned to meaningfully.

Speaker #2: This new debt offering, if successful, will address the vast majority of our 2027 debt maturities extend a significant portion of our debt maturities to 2031, simplify our capital structure, and reduce our debt servicing costs.

Speaker #2: In addition, we're also in the market with an at-the-market equity offering. Proceeds from the offering will be used to strengthen our balance sheet and also allow us to continue to invest in our core business to elevate and differentiate the movie-going experience for our guests.

Increased adjusted EBITDA improved free cash flow and strengthen our balance sheet with the box office growth that is anticipated in 2026 and beyond.

And with that I'll turn this call back over to Adam.

Speaker #2: As of last Friday, we received $26.2 million of gross proceeds from this equity offering. Our capital allocation priorities are clear and consistent. First, maintain robust liquidity and strengthen the balance sheet.

Thank you Sean.

Our 2025 results.

And our optimism for 2026.

Underscore that.

AMC remains firmly playing on offense focus on bold strategic initiatives that al again, elevate the movie going experience and reinforce amc's position as the clear leader in theatrical exhibition.

Speaker #2: And second, invest in our core business to elevate the guest experience. This disciplined approach to capital allocation reflects our commitment to building an increasingly strong and resilient company to deliver long-term shareholder value.

Speaker #2: From a capital expenditure standpoint, our 2025 CapEx, net of lease incentives, totals $200 million—exactly at the midpoint of our previously communicated $175 million to $225 million range.

One year into our forward looking AMC go plan.

The results are both tangible and encouraging.

AMC continues to delight, our guests and AMC continues to position ourselves for sustained growth.

Speaker #2: And we expect 2026 CapEx, net of lease incentives, to be between the same range—however, $175 to $225 million. Looking ahead, we see an exceptionally strong firm state in 2026 and beyond.

In 2026.

Beyond.

As one example laser projection.

It's brighter sharper screen images now exists.

Fully half of our U S Theater circuit.

Speaker #2: And the operating leverage inherent in our business, coupled with continued success in growing that per patron revenue and per patron profit metrics, means that we are very well positioned to meaningfully increase adjusted EBITDA improve free cash flow, and strengthen our balance sheet with the box office growth that is anticipated in 2026 and beyond.

And how can the can we not rebel.

And the leadership position that AMC enjoys and the availability of premium large format.

An extra large format screens as you know they command sizeable price premiums.

And there are about three times more productive.

Speaker #2: And with that, I'll turn this call back over to Adam.

Is that a standard screen.

Speaker #1: Thank you, Sean. Our 2025 results and our optimism for 2026 underscore that AMC remains firmly playing on offense focused on bold strategic initiatives that elevate the movie-going experience and reinforce AMC's position as the clear leader in theatrical exhibition.

It's no accident that a.

AMC has more premium large format screens and more extra large format screens.

And then any other exhibitor on Earth.

So it's obvious why we are so Glenn.

That our count of IMAX screens.

Our count of upgraded IMAX with laser screens is growing.

Then our count of ever so popular Dolby cinema screens is growing.

I know that with CJS screen X and <unk> offerings as well as for increases to the numbers of our prime and ice house.

Speaker #1: One year into our forward-looking AMC GO plan, the results are both tangible and encouraging as AMC continues to delight our guests, and AMC continues to position ourselves for sustained growth in 2026 and beyond.

House brand appeal of.

Offerings.

I am, especially pleased too.

By the story surrounding Amc's, XL or extra large format screens.

Speaker #1: As one example, laser projection—with its brighter, sharper screen images—now exists in fully half of our U.S. theater circuit. And how can we not revel in the leadership position that AMC enjoys in the availability of premium large format and extra-large format screens?

They were created out of thin air.

Piloted by our Odeon team in Europe.

Less than two years back and given their success. We now are expanding the reach of XL.

Probably across our U S theaters as well.

We now have.

Just right around 170, or so XL screens globally, and I would expect that that number will literally double.

Speaker #1: As you know, they command sizable price premiums and they're about three times more productive than a standard screen. It's no accident that AMC has more premium large format screens and more extra large format screens than any other exhibitor on earth.

By the end of 2026.

Moving beyond the auditorium, our world class AMC marketing and loyalty programs continue to evolve as smartly.

In 2025.

Speaker #1: So it's obvious why we're so glad that our count of IMAX screens, and our count of upgraded IMAX with laser screens, is growing. That our count of ever-so-popular Dolby Cinema screens is growing.

In January of 2025, we introduced a new successful AMC stubs loyalty tier.

Called AMC premiere go.

That allows consumers to trade up to premier status for a modified Ramirez status.

Speaker #1: You know that with CJ's ScreenX and 4DX offerings, as well as for increases to the numbers of our Prime and iSense house brand PLF offerings.

We will increase patronage at our chain without having to pay.

That's taken our member enrollments all the way up to some 39 million households in the United States accounting for an impressive 51% of our total U S attendance during the year playing for points.

Speaker #1: I am especially pleased too by the story surrounding AMC's XL or extra large format screens. They were created out of thin air and piloted by our ODIN team in Europe less than two years back, and given their success, we now are expanding the reach of across our US theaters as well.

Our frequent moviegoer loyalty program.

That level of engagement not only deepens guest loyalty, but also provides valuable insights given our extensive database containing as it is a myriad of purchase transactions guests by I guess, the enable us to smartly and more targeted.

Speaker #1: We now have just right around 170 or so XL screens globally, and I would expect that that number will literally double by the end of 2026.

<unk>.

Marketing efforts.

To our best customers.

An ongoing basis.

Another important pricing action within the scheme of our loyalty program.

Speaker #1: Moving beyond the auditorium, our world-class AMC marketing and loyalty programs continue to evolve smartly in 2025. In January of 2025, we introduced a new successful AMC Stubbs loyalty tier called AMC Premier GO that allows consumers to trade up to Premier status for a modified Premier status through increased patchage at our chain without having to pay an added fee.

Price increases considerable pricing cases.

Our <unk> loyalty program subscription program.

That occurred in the month of May.

And while those are examples of price rises.

With a keen focus on having raised prices during peak demand periods.

The most frequent of our guests.

It is also true that AMC simultaneously has remained committed to appealing to the value conscious consumer as well. So in July of 2025, our marketing team re imagine our long standing discount Tuesdays program.

Speaker #1: That's taken our member enrollments all the way up to some 39 million households in the United States accounting for an impressive 51% of our total US attendance during the year playing for points in our frequent movie-goer loyalty program.

<unk>.

By launching an intriguing and attention getting new 50% off Tuesdays and Wednesdays initiative.

Importantly, our analysis shows that the incremental attendance generated on these two weekdays now has.

Speaker #1: That level of engagement not only deepens guest loyalty, but also provides valuable insights given our extensive database containing as it is a myriad of purchase transactions guest by guest that enable us to smartly and more targeted basis create marketing efforts to our best customers on an ongoing basis.

Non cannibalized, our weekend attendance and to the contrary.

Has the increase the business generated in our theaters mid week.

An outcome that benefits both the AMC.

And our studio partners and of course benefits the movie going public in addition.

Speaker #1: Another important pricing action within the scheme of our loyalty program was price increases considerable price increases in our A-list loyalty programs subscription program that occurred in the month of May.

And we did not stop there at the end of 2025, we have introduced the AMC popcorn pass.

Our loyalty members.

An innovative annual offering that allows the AMC stubs members to enjoy 50% off pricing all year long.

Speaker #1: And while those are examples of price rises—with a keen focus on having raised prices during peak demand periods, and to the most frequent of our guests—it is also true that AMC simultaneously has remained committed to appealing to the value-conscious consumer as well.

Large AMC perfectly popcorn.

For a one time fee of 29 99 plus tax per year.

It's only the first two months after launch.

More than 120000 guests.

We have already paid us this.

$30 fee.

Speaker #1: So, in July of 2025, our marketing team reimagined our longstanding Discount Tuesdays program by launching an intriguing and attention-getting new 50% Off Tuesdays and Wednesdays initiative. In part, our analysis shows that the incremental attendance generated on these two weekdays now has not cannibalized our weekend attendance and, to the contrary, has increased the business generated in our theaters midweek—an outcome that benefits both AMC and our studio partners and, of course, benefits the movie-going public in addition.

We're a popcorn pass.

Beyond delivering exceptional value to the guest.

The popcorn pass also encourages more frequent theater visits.

And deeper guest engagement.

If those were things that we did in 2025.

Would like to tease you today with.

With one of what I think will be one of Amc's.

First new marketing ideas for.

For 2026.

Later this year.

AMC will introduce.

Preferred so branded premier seating.

Where we will block and reserve the best seats in the house.

Our theaters to be access first only.

Speaker #1: And we did not stop there. At the end of 2025, we introduced the AMC Popcorn Pass to our loyalty members—an innovative annual offering that allows AMC Stubs members to enjoy 50% off pricing all year long on a large AMC Perfectly Popcorn for a one-time fee of $29.99 plus tax per year.

By our a list in our stubs premiere members. That's the V. Two VIP tiers within our stubs program and no added charge.

At AMC, we will assure that the best seats in our auditoriums or hold out only at first anyway for our best customers.

We think it will be a considerable consumer benefit that our most frequent guests.

Speaker #1: In only the first two months after launch, more than 120,000 guests have already paid us this $30 fee for a Popcorn Pass. Beyond delivering exceptional value to the guest, the Popcorn Pass also encourages more frequent theater visits and deeper guest engagement.

We'll notice and greatly appreciate further cementing their brand loyalty to <unk>.

AMC.

There are two other things I'd like to highlight.

For turning this call over to your questions.

<unk>.

You may.

Recall that a few months ago.

AMC and Netflix made the joint decision.

Speaker #1: If those were things that we did in 2025, I would like to tease you today with one of what I think will be one of AMC's best new marketing ideas for 2026.

Partner together.

This was a significant departure.

From our two companies staying at arm's length from each other over a period of many years.

That effort started in bringing Netflix is popular K pop demon hunters to AMC theaters over the Halloween weekend.

Speaker #1: Later this year, AMC will introduce preferred so-branded Premier seating where we will block and reserve the best seats in the house in our theaters to be accessed first only.

That collaboration between AMC and Netflix proved highly successful with AMC delivering to Netflix approximately 35% of the.

Total attendance.

During that holiday weekend Timeframes.

Building quickly on that momentum our dialogue with Netflix continue.

Resulting in Amc's hosting the series finale of Stranger things and some 231 AMC theaters across the United States over New year's Eve and New year's day.

The response to that AMC Netflix offering in theaters.

Mildly exceeded.

All of our expectations we.

We initially only put on sale.

105000 seats or so.

But one of them was all done a months later.

AMC had the privilege to welcome more than 753000 stranger things fans collecting approximately $15 million in cash.

From Netflix fans.

Adam: recall that a few months ago, AMC and Netflix made the joint decision to partner together. This was a significant departure from our two companies staying at arm's length from each other over a period of many years. That effort started in bringing Netflix's popular KPop Demon Hunters to AMC Theatres over the Halloween weekend. That collaboration between AMC and Netflix proved highly successful, with AMC delivering to Netflix approximately 35% of the film's total attendance during that holiday weekend timeframe. Building quickly on that momentum, our dialogue with Netflix continued, resulting in AMC's hosting the series finale of Stranger Things in some 231 AMC Theatres across the United States over New Year's Eve and New Year's Day. The response to that AMC-Netflix offering in theatres wildly exceeded all of our expectations.

Adam Aron: recall that a few months ago, AMC and Netflix made the joint decision to partner together. This was a significant departure from our two companies staying at arm's length from each other over a period of many years. That effort started in bringing Netflix's popular KPop Demon Hunters to AMC Theatres over the Halloween weekend. That collaboration between AMC and Netflix proved highly successful, with AMC delivering to Netflix approximately 35% of the film's total attendance during that holiday weekend timeframe. Building quickly on that momentum, our dialogue with Netflix continued, resulting in AMC's hosting the series finale of Stranger Things in some 231 AMC Theatres across the United States over New Year's Eve and New Year's Day. The response to that AMC-Netflix offering in theatres wildly exceeded all of our expectations.

Watching the Netflix product.

An AMC theater.

And just two days.

It was a powerful demonstration of the demand for shared theatrical experiences.

Tied to culturally significant content.

The success of our recent collaboration with Netflix highlights the strategic opportunity that lies ahead and I am certain that we will have more adventures together.

Cooperatively with Netflix with roughly two thirds of AMC stubs loyalty members also subscribing to Netflix the audience overlap between our two companies is both significant and compelling.

As a result, our.

Our companies are two companies should be the best of friends.

I can confirm to you that AMC is enthusiastic about the prospects of expanding our relationship with Netflix.

Forward to working together to create innovative mutually beneficial theatrical events that drive value for both companies.

The second thing.

That I mentioned.

Adam: We initially only put on sale about 105,000 seats or so, but when it was all done, a month later, AMC had the privilege to welcome more than 753,000 Stranger Things fans, collecting approximately $15 million in cash from Netflix fans watching the Netflix product in an AMC theater. In just two days, it was a powerful demonstration of the demand for shared theatrical experiences tied to culturally significant content. The success of our recent collaboration with Netflix highlights the strategic opportunity that lies ahead, and I am certain that we'll have more adventures together cooperatively with Netflix. With roughly two-thirds of AMC Stubs loyalty members also subscribing to Netflix, the audience overlap between our two companies is both significant and compelling.

Adam Aron: We initially only put on sale about 105,000 seats or so, but when it was all done, a month later, AMC had the privilege to welcome more than 753,000 Stranger Things fans, collecting approximately $15 million in cash from Netflix fans watching the Netflix product in an AMC theater. In just two days, it was a powerful demonstration of the demand for shared theatrical experiences tied to culturally significant content. The success of our recent collaboration with Netflix highlights the strategic opportunity that lies ahead, and I am certain that we'll have more adventures together cooperatively with Netflix. With roughly two-thirds of AMC Stubs loyalty members also subscribing to Netflix, the audience overlap between our two companies is both significant and compelling.

As I mentioned before closing.

With the recent meteoric rise in the share price of high Cross mining company.

I could not be more pleased to report to you.

That our investment in high growth.

It has met and exceeded attractive financial hurdle returns.

In November of 2025.

We monetize just more than $24 million promo from a partial sale.

Our high cross stake.

But importantly at this time, we said that we would retain a significant number of shares and warrants.

To continue to experience upside.

Those remaining shares and warrants in hard Kraft.

Our worth right about $39 million.

Today's market closing price.

So that $63 million or so in total.

Compares quite favorably to the $29 million that we invested in high growth.

Four years ago.

For those of you who scoffed at our high crop the investment at that time and there were many of you.

Adam: As a result, our companies, our two companies should be the best of friends. I can confirm to you that AMC is enthusiastic about the prospects of expanding our relationship with Netflix. We would look forward to working together to create innovative, mutually beneficial theatrical events that drive value for both companies. The second thing that I'd like to mention before closing, with the recent meteoric rise in the share price of Hycroft Mining Holding Corporation, I could not be more pleased to report to you that our investment in Hycroft has met and exceeded attractive financial hurdle returns. In November 2025, we monetized just more than $24 million from a partial sale of our Hycroft stake. Importantly, at the time, we said that we would retain a significant number of shares and warrants to continue to experience upside.

Adam Aron: As a result, our companies, our two companies should be the best of friends. I can confirm to you that AMC is enthusiastic about the prospects of expanding our relationship with Netflix. We would look forward to working together to create innovative, mutually beneficial theatrical events that drive value for both companies. The second thing that I'd like to mention before closing, with the recent meteoric rise in the share price of Hycroft Mining Holding Corporation, I could not be more pleased to report to you that our investment in Hycroft has met and exceeded attractive financial hurdle returns. In November 2025, we monetized just more than $24 million from a partial sale of our Hycroft stake. Importantly, at the time, we said that we would retain a significant number of shares and warrants to continue to experience upside.

You were wrong.

And we were right.

As we conclude.

Amc's resilience continues to set us apart.

While the industry recovery has progressed more gradually than anyone might have originally anticipated or wish to see occur.

Even so AMC is remains agile disciplined and firmly focused on long term value creation.

AMC has demonstrated our ability to navigate a dynamic environment. Some would say is extremely difficult and challenging environment.

But all the while we did so we also strengthened our competitive position and.

And we emerged poised to capture gain.

From the opportunities that.

But we believe are ahead.

That opportunity is now at hand.

We expect the box office to rise.

Six.

And please remember from this call. The two most important words that are relevant to AMC.

Adam: Those remaining shares and warrants in Hycroft are worth right about $39 million at today's market closing price. That $63 million or so in total compares quite favorably to the $29 million that we invested in Hycroft 4 years ago. For those of you who scoffed at our Hycroft investment at that time, and there were many of you were wrong, and we were right. As we conclude, AMC's resilience continues to set us apart. While the industry recovery has progressed more gradually than anyone might have originally anticipated or wished to see occur, even so, AMC has remained agile, disciplined, and firmly focused on long-term value creation. AMC has demonstrated our ability to navigate a dynamic environment.

Adam Aron: Those remaining shares and warrants in Hycroft are worth right about $39 million at today's market closing price. That $63 million or so in total compares quite favorably to the $29 million that we invested in Hycroft 4 years ago. For those of you who scoffed at our Hycroft investment at that time, and there were many of you were wrong, and we were right. As we conclude, AMC's resilience continues to set us apart. While the industry recovery has progressed more gradually than anyone might have originally anticipated or wished to see occur, even so, AMC has remained agile, disciplined, and firmly focused on long-term value creation. AMC has demonstrated our ability to navigate a dynamic environment.

Operating leverage.

The increase in our revenues in 2026 has the prospect of leading to many a smile.

As we watch our adjusted EBITDA levels.

As the year unfolds.

As we have had to say far too many times over.

Over the past six years.

We are not out of the woods yet.

There are challenges ahead still.

But the signposts for 2026.

Are indicating a significantly strengthened year ahead.

With that let's turn the call over to our operator.

Pull analysts for their questions from equity research analyst and then Sean I'll give the podium to U S.

You and I will review some questions submitted by our retail investors.

Thank you if you'd like to ask a question press star one on your keypad Kelly the queue at any time press star two.

Again, Thats star one to ask a question and we'll pause for just a moment to allow everyone a chance to join the queue.

Adam: Some would say an extremely difficult and challenging environment, but all the while we did so, we also strengthened our competitive position, and we emerged poised to capture gain from the opportunities that we believe are ahead. That our opportunity is now at hand. We expect the box office to rise in 2026. Please remember from this call, the 2 most important words that are relevant to AMC: operating leverage. An increase in our revenues in 2026 has the prospect of leading to many a smile as we watch our adjusted EBITDA levels as the year unfolds. As we have had to say far too many times over the past 6 years, we are not out of the woods yet, and there are challenges ahead still. The signposts for 2026 are indicating a significantly strengthened year ahead.

Adam Aron: Some would say an extremely difficult and challenging environment, but all the while we did so, we also strengthened our competitive position, and we emerged poised to capture gain from the opportunities that we believe are ahead. That our opportunity is now at hand. We expect the box office to rise in 2026. Please remember from this call, the 2 most important words that are relevant to AMC: operating leverage. An increase in our revenues in 2026 has the prospect of leading to many a smile as we watch our adjusted EBITDA levels as the year unfolds. As we have had to say far too many times over the past 6 years, we are not out of the woods yet, and there are challenges ahead still. The signposts for 2026 are indicating a significantly strengthened year ahead.

Okay.

Thank you. Our first question comes from Chad Beynon with Macquarie. Please go ahead. Your line is open.

Hi, Good afternoon. Thanks for taking my question and Adam Great to hear that.

Youre, feeling and sounding much better here.

Thank you.

Wanted to ask I know Sean in the prepared remarks, you talked about the screen or the theater count reduction in 'twenty five and in the past couple of years.

How are we thinking about your fleet or portfolio at this point.

Given the strong.

Outlook for content in 2006, and then related to that are there expected to be any new builds that are in that capex number. Thanks.

As the year unfolds.

Hey, Chad.

As as I said in my prepared remarks, we've done significant activity closing over 200 theaters over the last six years as an opening around $65.

As we have had to say far too many times.

Over the past 6 years.

We are not out of the woods yet.

And there are challenges ahead, still.

We will continue to take actions to close theaters.

But the signposts for 2026.

To reduce leases.

Adam: With that, let's turn the call over to our operator to poll analysts for their questions from equity research analysts. Then, Sean, I'll give the podium to you, and you and I will re-review some questions submitted by our retail investors.

Adam Aron: With that, let's turn the call over to our operator to poll analysts for their questions from equity research analysts. Then, Sean, I'll give the podium to you, and you and I will re-review some questions submitted by our retail investors.

Are indicating a significantly strengthened year ahead.

As we go forward about 10% of our leases come up for renewal each year. So that's about 85 leases coming up for renewal and each time. These leases come up for renewal, we have that opportunity to.

To improve.

Economics.

The portfolio has improved significantly over the last six years I think one of the reasons that our per patron metrics on a per patron profitability is so much higher than it was before but we believe there continues to be a very significant opportunity, even though like most.

With that, let's turn the call over to our operator, to pull analysts for their questions from equity research analysts. And then, uh, Sean. I'll give the podium to you, and you, and I will review some questions submitted by our retail investors.

Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that's star one to ask a question, and we'll pause for just a moment to allow everyone a chance to join the queue. Thank you. Our first question comes from Chad Beynon with Macquarie. Please go ahead. Your line is open.

Organizations are companies with a retail footprint of theaters.

Thank you. If you like to ask a question, press star 1 on your keypad to leave the Queue at any time press star 2. Once again that's star 1 to ask a question and we'll pause for just a moment to allow everyone a chance to join the queue.

Kind of a normal distribution and there is a tail of underperforming or loss, making theaters.

And we see an opportunity to close those theaters or renegotiate leases and then take on new theaters that are significantly very significantly more profitable. So I think youre going to see similar sort of pace going forward.

Chad Beynon: Hi, good afternoon. Thanks for taking my question. Adam, great to hear that you're feeling and sounding much better here.

Thank you. Our first question comes from Chad Baina with McCrory. Please go ahead. Your line is open.

Adam: Thank you.

Adam Aron: Thank you.

Chad Beynon: wanted to ask, I know, Sean, in the prepared remarks, you talked about the screen or the theater count reduction in 25 and in the past couple of years. How are we thinking about your fleet or portfolio at this point, given the strong, you know, outlook for content in 26? Related to that, are there expected to be any new builds that are in that CapEx number? Thanks.

Hi, good afternoon. Thanks for taking my question, and Adam, great to hear that you're feeling and sounding much better here.

We'll be closing more theaters.

The ones that we opened.

<unk> significantly more profit than the ones that we close.

Thank you, wanted to ask. I know, Sean, in the prepared remarks you talked about the screen or the theater count reduction in '25 and in the past couple of years,

To your question about sort of the capex level.

There'll be a small number of new theater locations in 2026 and going forward and that is included in our.

Capex projections, and the $175 million to $225 million range I might add as well.

Um, how are we thinking about your fleet or portfolio at this point, uh, given the strong, um, you know, outlook for content in '26? And then related to that, are there expected to be any new builds that are in that, uh, CapEx number? Thanks.

Sean Goodman: Hey, Chad. As I said in my prepared remarks, we've done significant activity, closing over 200 theaters over the last 6 years and opening around 65 odd. We will continue to take actions to close theaters, to reduce leases as we go forward. About 10% of our leases come up for renewal each year, so that's about 85 leases coming up for renewal. Each time these leases come up for renewal, we have that opportunity to improve our theater economics. You know, the theater portfolio has improved significantly over the last 6 years. It's one of the reasons that our per patron metrics and our per patron profitability is so much higher than it was before. We believe there continues to be a very significant opportunity.

Everything we've been doing it smartly over the past few years.

Hey, Chad. Um,

<unk> been capital light.

So you used specifically used the phrase new build theaters.

Newbuild bidders are considerably more expensive than what we call spot acquisitions, where we can take it over up theater, where most of the capital has already been spent.

As, as I said, in my prepared remarks, we've done significant activity, closing over 200 theaters over the last 6 years in opening around 65 odd. Um, we will continue to take actions to close theaters.

Uh, to reduce leases.

Maybe put up $500000 to $1 million just.

Upgraded and bring it into the AMC fleet.

And apply our marketing programs and our product.

As we go forward about 10% of our leases come up for renewal each year. So it's about 85 leases coming up for Renewal. And each time, these leases come up for Renewal we we have that opportunity uh, to improve our approval here, economics.

Sure.

Experiences and expertise.

When we've done this in the past we've seen a substantial rises in the revenues of the theater and the efficiencies of the theaters that we've taken over so.

Sean Goodman: You know, like most organizations or companies with a retail footprint, our theaters are a kind of normal distribution, and there is a tail of underperforming or loss-making theaters. We see an opportunity to close those theaters or renegotiate leases and then take on new theaters that are significantly, very significantly more profitable. I think you're gonna see the similar sort of pace going forward. We'll be closing more theaters than we open, but the new ones that we open are generating significantly more profit than the ones that we close. To your question about sort of the CapEx level, there'll be a small number of new theater locations in 2026 and going forward, that is included in our CapEx projections in the $175 to $225 million range.

As Sean said.

Sure, we'll close some underperformers, which makes us money it doesn't cost us money.

I will probably add a handful of spot theaters potash physicians as well and maybe it's worth pointing out. The example of the growth right, which in Los Angeles that we took out of him as a spot acquisition.

You know, the field portfolio has improved significantly over the last 6 years, is 1 of the reasons that our per Patron metrics and our Patron. Profitability is so much higher than it was before, but we believe that continues to be a very significant opportunity. You know, like most, uh, organizations or companies with a retail footprint are theaters, are a kind of normal distribution, and there is a tale of underperforming or loss making theaters and, uh, we see an opportunity to close those theaters, or renegotiate leases, and then take on, uh, new theaters that are significantly vary significantly more profitable.

And that's it used to be number 2018, the country in terms of annual box office receipts now with adding the AMC secret sauce.

It does not have a five in the country intensive receipts and that's just one small example of the benefits that we bring and the attractiveness of AMC as a tenant for landlords in Netherlands.

More theaters in the open, but the new ones that we open are generating significantly more profit than the ones that we close. And

Okay, great. Thank you both for that and then my unrelated follow up.

I think you mentioned most are expecting the U S box office to be up somewhere between $500 million and 1 billion I think that's where most analysts.

Adam: You know, I might add that, like everything we've been doing smartly over the past few years, we've been capital light. You, you specifically used the phrase new build theaters. New build theaters are considerably more expensive than what we call spot acquisitions, where we can take over a theater where most of the capital has already been spent, and we maybe pop $500,000 to $1 million just to upgrade it and bring it into the AMC fleet and apply our marketing programs and our product experiences and expertise. When we've done this in the past, we've seen substantial rises in the revenues of the theater and the efficiencies of the theater that we've taken over. As Sean said, I'm sure we'll close some underperformers, which makes us money. It doesn't cost us money.

Adam Aron: You know, I might add that, like everything we've been doing smartly over the past few years, we've been capital light. You, you specifically used the phrase new build theaters. New build theaters are considerably more expensive than what we call spot acquisitions, where we can take over a theater where most of the capital has already been spent, and we maybe pop $500,000 to $1 million just to upgrade it and bring it into the AMC fleet and apply our marketing programs and our product experiences and expertise. When we've done this in the past, we've seen substantial rises in the revenues of the theater and the efficiencies of the theater that we've taken over. As Sean said, I'm sure we'll close some underperformers, which makes us money. It doesn't cost us money.

To your question about sort of the capex level, um, there'll be a small number of new Federal locations in 2026 and, and going forward. And that is included in our uh, capex, uh, projections and 175 to 225 million range. You know, my add that

Like everything we've been doing is smartly over the past few years.

Are you now in this high single digit low double digit growth rate.

we've been Capital, like

National is a little harder for I think that's some of the industry to pinpoint.

So you you specifically, use the phrase new build theaters.

Do you have a gut feel if international admission revenues could be higher or lower than kind of what we're seeing in North America. This year. Thank you.

New builds are considerably more expensive than what we call spot acquisitions, where we can take over a theater where most of the capital has already been spent.

We've completed seven weeks.

Eight weeks of almost eight weeks of.

<unk> 26, and we know already that Europe is recovering faster than the United States from the 2025 box office.

And we maybe pop 500,000 now to a million dollars just to upgrade it and bring it into the AMC Fleet.

No.

If I had to be a betting man.

I would say Europe is going to be stronger than the U S.

And some of you like to report in constant currency and some of you like to.

And apply our marketing programs and our products, uh, uh, experiences and expertise. And when we've done this, in the past, we've seen, uh, substantial rises in the revenues of the theater and the efficiencies of the theaters that we've taken over. So, um, um, as soon,

Report as the.

Dollars come in.

Sean Goodman: Yes.

Adam: We'll probably add a handful of spot theaters, spot acquisitions as well.

Adam Aron: We'll probably add a handful of spot theaters, spot acquisitions as well.

<unk> been pretty weak, which means that our overseas revenues and overseas EBITDA is coming back in U S dollars and even stronger levels.

Said, I'm sure we'll close some underperformers, which makes us money. It doesn't cost us money.

Sean Goodman: Maybe it's worth pointing out the example of The Grove, right? Which in Los Angeles, that we took over as a spot acquisition, and that theater used to be number 28 in the country in terms of annual box office receipts. Now, with adding the AMC Secret Source, that theater is now number 5 in the country in terms of receipts, and that's just one small example of the benefit that we bring and the attractiveness of AMC as a tenant for landlords in their developments.

So this could be.

Year over year, this could be Europe's best year.

Six.

Okay, great to hear thank you very much I appreciate it.

And we'll probably add a handful of spot theaters, spot expositions as well, and maybe it's worth pointing out the example of The Grove, right? Which, in Los Angeles, that we took over as a spot acquisition. And that theater used to be number 28 in the country in terms of annual box office receipts. Now, with adding the AMC secret sauce,

Thank you I'm showing no additional questions at this time I'd like to now turn it back to Sean Goodman for retail share shareholder question.

Thank you operator.

Chad Beynon: Okay, great. Thank you, both for that. My unrelated follow-up. I think you mentioned, you know, most are expecting the US box office to be up somewhere between $500 million and $1 billion. I think that's where most analysts are, you know, in this high single-digit, low double-digit growth rate. International is a little harder for, I think, elsewhere in the industry to pinpoint. Do you have a gut feel if international admission revenues could be higher or lower than kind of what we're seeing in North America this year? Thank you.

That theater is now number 5 in the country in terms of receipts and that's just 1, small example of the benefits that we bring and the attractiveness of AMC has a tenant for landlords in their development.

Adam we have a couple of questions firstly relating to the food and beverage.

Business as you and I, both know all food and beverage per patron numbers have just been spectacular.

<unk> and I think thats really exciting opportunities for US ahead, there, but the question is sort of what future changes innovations can.

Can people expect on the food and beverage side.

This is really important because.

If you look at why this company has been able to navigate really turbulent waters over the past half decade.

Adam: Well, we've completed 7 weeks or 8 weeks of, almost 8 weeks of 2026, and we know already that Europe is recovering faster than the United States from the 2025 box office. If I had to be a betting man, we'd say Europe is going to be stronger than the US. Some of you like to report in constant currency, and some of you like to report as the dollars come in. The dollar's been pretty weak, which means that our overseas revenues and overseas EBITDA is coming back in US dollars in even stronger levels. This could be year-over-year, this could be Europe's best year of the last 6.

Adam Aron: Well, we've completed 7 weeks or 8 weeks of, almost 8 weeks of 2026, and we know already that Europe is recovering faster than the United States from the 2025 box office. If I had to be a betting man, we'd say Europe is going to be stronger than the US. Some of you like to report in constant currency, and some of you like to report as the dollars come in. The dollar's been pretty weak, which means that our overseas revenues and overseas EBITDA is coming back in US dollars in even stronger levels. This could be year-over-year, this could be Europe's best year of the last 6.

Great. Thank you, uh, both for that. And then my unrelated follow-up. Um, I think you mentioned, you know, most are expecting the US box office to be up somewhere between 500, uh, million and a billion. I think that's where most analysts, um, are, you know, in the high single digit, low, double digit, uh, growth rate. Um, International is a little harder for. I think I'll send the industry to, to pinpoint. Um, do you have a gut feel, if International admission revenues could be higher or lower than kind of what we're seeing in North America this year? Thank you.

Our strengthening boom food and beverage sales.

Well, we've completed 7 weeks.

A big reason.

our 8 weeks of almost 8 weeks of

26.

If you look at our contribution.

Per patron.

It's not.

Not quite 50%, but almost 50%.

Which means that we don't actually need the box office to recover all the way back.

And we know already that Europe is recovering faster than the United States from the 2025 box office. So, um, if I had to be a betting man,

2019 pre COVID-19 levels.

We’d say Europe is going to be stronger than the U.S.

And that said their reserve direct result in part because of our food and beverage success.

and some of you like to report in constant currency and some of you like to report as

I think at this point.

the um, the Dollar's been pretty weak.

There's a lot of financing that's going on within your food and beverage operation where.

We are using.

Our menu experimentation.

Which means that our overseas revenues, and overseas—even though it is coming back in US dollars, and even stronger—uh, levels.

Two please the guests and help our bottom line as one example.

So, this could be year-over-year; this could be Europe's best year of the last six.

Chad Beynon: Okay, great to hear. Thank you very much. Appreciate it.

We just introduced that.

In the fourth quarter of 'twenty five.

Okay, great to hear it. Thank you very much, appreciate it.

Operator: Thank you. I'm showing no additional questions at this time. I'd like to now turn it back to Sean Goodman for retail shareholder questions.

Freshly baked chocolate chip cookies.

Which not only taste, great, but smell and regular theater lobbies and they were placed.

Sean Goodman: Thank you, operator. Adam, we have 2 questions here, firstly, relating to the food and beverage business. As you and I both know, our food and beverage per patron numbers have just been spectacular post-pandemic, and I think there's really exciting opportunities for us ahead there. The question is sort of what future changes, innovations, can people expect on the food and beverage side?

Thank you. I'm showing no additional questions at this time. I'd like to now turn it back to Sean Goodman for retail, share shareholder questions.

Our whole switch.

Not selling as well at our concession stands.

We just introduced at our dine in theatres are much better pizza than we've had.

In modern memory.

It looks like real pizza tastes like Royal Pizza, Israel visa.

Adam: You know, this is really important because, if you look at why this company has been able to navigate really turbulent waters over the past half decade, our strength in food and beverage sales has been a big reason. If you look at our contribution per patron, it's up not quite 50%, but almost 50%, which means that we don't actually need the box office to recover all the way back to 2019 pre-COVID levels, and that's a direct result, in part, because of our food and beverage success. I think at this point, there's a lot of finessing that's going on within our food and beverage operation, where we're using a menu experimentation to please the guests and help our bottom line.

Adam Aron: You know, this is really important because, if you look at why this company has been able to navigate really turbulent waters over the past half decade, our strength in food and beverage sales has been a big reason. If you look at our contribution per patron, it's up not quite 50%, but almost 50%, which means that we don't actually need the box office to recover all the way back to 2019 pre-COVID levels, and that's a direct result, in part, because of our food and beverage success. I think at this point, there's a lot of finessing that's going on within our food and beverage operation, where we're using a menu experimentation to please the guests and help our bottom line.

Really good I've tested it myself in the kitchens and I'm a pizza buffet.

Thank you, operator. Um, Adam, we have a couple of questions here, firstly relating to the food and beverage, uh, business as you and I both know our food and beverage per Patron, namas have just been spectacular. Uh, post pandemic, and I think there's really exciting opportunities for us ahead there, uh, but the question is sort of what future changes Innovations, uh, can people expect on the food and beverage side?

you know, this is really important because

um,

<unk>.

But so those are two examples and another thing thats really important though.

if you look at why this company has

What's happened in our concession stands.

If not what do you eat but why do you buy.

Three years ago.

M seasoned sell essentially any movie themed merchandise.

And our.

If you look at our contribution,

Movie seemed merchandising now.

Per Patron.

Become a sizable business for us.

Um, it's up not quite 50%, but almost 50%.

In 2025.

It was $65 million in the United States, another $10 million to $15 million in Europe. This was a business that didn't drive literally a penny of revenue or EBITDA.

Um, which means that we don't actually need the box office to recover all the way back.

To 2019 preco levels.

Three years ago, and it's now doing 80 ish million dollars of.

Our business today and the profit margins in this thing.

It's about a 50% or so margin business like that is substantial and I think.

And that's a due Reserve direct result in part because of our food and beverage success. Um, I think it at this point, the there's a lot of finessing that's going on within your our food and beverage operation where we're using. Um,

A menu experimentation.

This movie scene merchandize business.

Adam: As one example, we just introduced in Q4 2025 freshly baked chocolate chip cookies, which not only taste great but smell great in the theatre lobbies, and they replaced donut holes, which were not selling as well at our concession stands. We just introduced, at our dine-in theatres, a much better pizza than we've had in modern memory. It looks like real pizza. It tastes like real pizza. It is real pizza, and it's really good. I've tested it myself in the kitchens, and I'm a pizza buff. Those are two examples, and another thing that's really important, though, of what's happened in our concession stands, is not what you eat, but what you buy.

Adam Aron: As one example, we just introduced in Q4 2025 freshly baked chocolate chip cookies, which not only taste great but smell great in the theatre lobbies, and they replaced donut holes, which were not selling as well at our concession stands. We just introduced, at our dine-in theatres, a much better pizza than we've had in modern memory. It looks like real pizza. It tastes like real pizza. It is real pizza, and it's really good. I've tested it myself in the kitchens, and I'm a pizza buff. Those are two examples, and another thing that's really important, though, of what's happened in our concession stands, is not what you eat, but what you buy.

Is poised to grow again dramatically in 2026.

I wouldn't be surprised if it grows by 20% or more.

Uh, to please the guests and help our bottom line, as one example. Um, we just introduced that in the fourth quarter of '25.

Uh, freshly baked chocolate chip cookies.

As we enter our fourth year of successful.

Effort.

In and around our concession stands in our theaters.

Which not only tastes great but smells great in the theater lobbies. And they replaced donut holes, which, uh, were not selling as well at our concession stands.

Yeah.

So there's a lot going on in the industry at the moment.

And there's questions about just for you to comment on our relationship and relations with <unk>, what's going on with Windows update on Union negotiations and the potential for a strike later this year.

We just introduced at our dining theaters a much better pizza than we've had.

Sure I'm wondering when you talk about what is our relationship with studios.

In modern memory, um, uh, it looks like real pizza. It tastes like real pizza. It is real pizza, and it's really good. I've tested it myself in the kitchens, and I'm a pizza buff.

<unk>.

um,

It sure helps.

When you sell more movie theater tickets.

But so, those are two examples. And another thing that's really important, though.

Or every single studio.

Of what's happening in our concession stands.

Adam: Three years ago, AMC didn't sell essentially any movie-themed merchandise. Our movie-themed merchandise now has become a sizable business for us. In 2025, it was $65 million in the United States, another $10 to 15 million in Europe. This was a business that didn't drive literally a penny of revenue or EBITDA three years ago. It's now doing $80-ish million of business today. The profit margins in this thing are, it's about a 50% or so margin business. Like, that's substantial. I think this movie-themed merchandise business is poised to grow again dramatically in 2026. I wouldn't be surprised if it grows by 20% or more, as we enter our fourth year of successful effort in and around our concession stands in our theaters.

Adam Aron: Three years ago, AMC didn't sell essentially any movie-themed merchandise. Our movie-themed merchandise now has become a sizable business for us. In 2025, it was $65 million in the United States, another $10 to 15 million in Europe. This was a business that didn't drive literally a penny of revenue or EBITDA three years ago. It's now doing $80-ish million of business today. The profit margins in this thing are, it's about a 50% or so margin business. Like, that's substantial. I think this movie-themed merchandise business is poised to grow again dramatically in 2026. I wouldn't be surprised if it grows by 20% or more, as we enter our fourth year of successful effort in and around our concession stands in our theaters.

Than anybody else on Earth.

Is not what you eat, but what do you buy? Um, 3 years ago?

Especially if you combine the ticket selling in quantity.

AMC didn't sell it essentially, any movie the merchandise.

With the amount of effort that AMC devotes.

And our, um, movie-themed merchandise now,

Two our studio interactions.

Has become a sizable business for us.

I can say with confidence.

In 2025.

That AMC enjoys.

A very strong spur.

Specially relationship.

With each and every studio every single one.

We think highly of them because our life blood depends on it.

It was $65 million in the United States. Another $10 to $15 million in Europe. This was a business that didn't drive literally a penny of revenue or even...

I believe that they think highly of us because they know at the end of the day, we're going to outperform for them above everybody else. So in terms of student relations. It's all great.

Three years ago, and it's now doing $80 million of, uh, business today, and the profit margins. And this thing are

An interesting development, where do I think of studios is.

It's about 50% or so margin business. Like that's substantial and I think the this movie themed merchandise business,

Not just the traditional studios the majors.

But we've had.

Is poised to grow again dramatically in 2026.

Surprisingly good interactions of late.

With some some of the streamers.

Who historically were not major theme.

Seattle exhibitor.

Exhibitors.

Last year.

Year.

Um, I wouldn't be surprised if it grows by 20% or more. Um, as we enter our fourth year of successful, um, uh, effort, uh, in and around our concession stands in our theaters.

Sean Goodman: There's a lot going on in the industry at the moment, and there's questions about just for you to comment on our relationships and relations with studios, what's going on with windows, update on union negotiations and the potential for a strike later this year?

We had real success with Apple.

Theyre film F. One we lean into it in a big way.

We were very careful with the film they were very successful with the film.

Aye.

Adam: Sure. Well, when you talk about what's our relationship with studios, It sure helps when you sell more movie theater tickets for every single studio than anybody else on earth. Especially if you combine the ticket selling in quantity with the amount of effort that AMC devotes to our studio interactions. I can say with confidence that AMC enjoys a very strong, special relationship with each and every studio, every single one. We think highly of them 'cause our lifeblood depends on it, and I believe that they think highly of us because that they know at the end of the day, we're gonna outperform for them above everybody else. In terms of studio relations, it's all great.

We will appreciate our relationship with them I know they were appreciated.

Adam Aron: Sure. Well, when you talk about what's our relationship with studios, It sure helps when you sell more movie theater tickets for every single studio than anybody else on earth. Especially if you combine the ticket selling in quantity with the amount of effort that AMC devotes to our studio interactions. I can say with confidence that AMC enjoys a very strong, special relationship with each and every studio, every single one. We think highly of them 'cause our lifeblood depends on it, and I believe that they think highly of us because that they know at the end of the day, we're gonna outperform for them above everybody else. In terms of studio relations, it's all great.

So, there's a lot going on in the industry at the moment, and there's questions about—just for you to comment on—our relationship and relations with studios, what's going on with Windows, an update on union negotiations, and the potential for a strike later this year.

This support that we put forward.

Uh, sure. Well, when you talk about what's our relationship with studios—

um,

Looking forward to big things coming from Apple original films going forward.

it sure helps.

when you sell more movie theater tickets,

Amazon is now telling us that their goal is to release 15 theatrical movies in 2027 and that they'll probably get up to <unk>.

For every single Studio.

Than anybody else on Earth.

uh, especially if you combine

the ticket selling in quantity.

10 to 13 theatrical movies on their slate.

With the amount of effort that AMC devotes.

In 2026.

To our studio interactions.

That's news.

I can say with confidence.

Amazon and MGM was only good for a movie or two five years ago.

That AMC enjoys the, a very strong uh, special relationship.

The they've become a real player in Hollywood and then there's Netflix we had this September meeting, where we sorted through how we can work together and that it would be advisable to work together.

With each and every Studio, every single 1.

We think highly of them because our lifeblood depends on it, and I believe that they think highly of us.

And the first two efforts out of the chute.

We're extraordinarily positive I know that we're excited about doing more with them and I know that they were pleased with amc's effort on their behalf.

Adam: An interesting development when I think of studios, is not just the traditional studios, the majors, but we've had surprisingly good interactions of late with some of the streamers, who historically were not major theatrical exhibitors. Last year, we had real success with Apple in their film, F1. We leaned into it in a big way. We were very successful with the film. They were very successful with the film. We appreciated our relationship with them. I know they appreciated this support that we put forward. I'm looking forward to big things coming from Apple Original Films going forward. Amazon is now telling us that their goal is to release 15 theatrical movies in 2027, and that they'll probably get up to 10 to 13 theatrical movies on their slate in 2026.

Because they know at the end of the day, we're going to outperform for them above everybody else. So, in terms of Studio Elations, it's all great.

Adam Aron: An interesting development when I think of studios, is not just the traditional studios, the majors, but we've had surprisingly good interactions of late with some of the streamers, who historically were not major theatrical exhibitors. Last year, we had real success with Apple in their film, F1. We leaned into it in a big way. We were very successful with the film. They were very successful with the film. We appreciated our relationship with them. I know they appreciated this support that we put forward. I'm looking forward to big things coming from Apple Original Films going forward. Amazon is now telling us that their goal is to release 15 theatrical movies in 2027, and that they'll probably get up to 10 to 13 theatrical movies on their slate in 2026.

um,

Towards the end of.

An interesting development. When I think of Studios is not just the traditional Studios the majors.

2025.

but we've had

You mentioned in your question Union negotiations.

surprisingly good interactions of late.

For good or for bad we're not a party to those union negotiations.

With some, some of the streamers.

<unk>.

We're not major theatrical, um, exhibitors.

We have a vested interest.

And their outcome.

um, last year.

um,

We're not at the table.

I I do know that the studios have taken these negotiations seriously.

Uh, we had real success with Apple in their film F1. We leaned into it in a big way.

Started the negotiation process earlier than they did last time around.

Um, uh, we were very successful with the film. They were very successful with the film.

I think the general consensus is.

But the.

Um, I I I we wrote appreciate our relationship with them. I know they were appreciated.

Two strikes a couple of years back.

Or devastating to.

This support that we put forward—I’m looking forward to big things.

To everyone connected to the movie business.

Devastating to the members of the Union devastated devastating to movie makers.

Coming from Apple, original films, going forward.

Um, Amazon.

I would sure hope.

Is now telling us that their goal.

We don't have to repeat anything like that and.

Is to release 15 theatrical movies in 2027.

Okay.

The Union.

and that they'll probably get up to

Studio or negotiations.

Adam: That's news. Amazon and MGM was only good for a movie or 2 5 years ago. They've become a real player in Hollywood. There's Netflix. We had this September meeting where we sorted through how we could work together, and that it would be advisable to work together. The first 2 efforts out of the chute were extraordinarily positive. I know that we're excited about doing more with them, and I know that they were pleased with AMC's effort on their behalf towards the end of 2025. You mentioned in your question, union negotiations. For good or for bad, we're not a party to those union negotiations. We have a vested interest in their outcome, we're not at the table.

Inspire in such a way.

10 to 13 theatrical movies on their slate in 2026.

Adam Aron: That's news. Amazon and MGM was only good for a movie or 2 5 years ago. They've become a real player in Hollywood. There's Netflix. We had this September meeting where we sorted through how we could work together, and that it would be advisable to work together. The first 2 efforts out of the chute were extraordinarily positive. I know that we're excited about doing more with them, and I know that they were pleased with AMC's effort on their behalf towards the end of 2025. You mentioned in your question, union negotiations. For good or for bad, we're not a party to those union negotiations. We have a vested interest in their outcome, we're not at the table.

That deals are met.

um,

The production of movies goes along without interruption.

And then a final question here is on Capex spend we've guided $275 million to $225 million.

Which is the same in 2026 as it was in 2025 just questions on how are we allocating our capex spend and sort of what are the focus areas for capex spend.

that's news. Uh, uh, Amazon MGM was only good for a movie or 2 5 years ago. Um, the the, the the, the, the, the, the the they've become a real player in Hollywood. And then there's Netflix, we had this

September meeting where we

Sorted through how we could work together, and that it would be advisable to work together.

I'm very round numbers right very round numbers.

Um, and the first two efforts out of the chute.

$150 million of that number as well.

What I'll call maintenance capital.

To keep our theaters.

Good shape.

Roof slowly King HVA systems working.

Were extraordinarily positive. I know that we're excited about doing more with them, and I know that they were pleased with AMC's effort on their behalf.

um, towards the end of

It systems being overhauled.

2025. Um you mentioned in your question, you need negotiations.

As needed.

Two.

So we continue to have AMC be a strong.

For good, or for bad, we're not a party to those Union negotiations.

Um,

We have a vested interest.

Layer from an it standpoint.

Adam: I do know that the studios have taken these negotiations seriously. They've started the negotiation process earlier than they did last time around. I think the general consensus is that the two strikes a couple of years back were devastating to everyone connected to the movie business, devastating to the members of the union, devastating to movie makers. I would sure hope that we don't have to repeat anything like that, and that, well, the union, studio renegotiations transpire in such a way that deals are met and that the production of movies goes on without interruption.

AI is capturing some of our money now because there are ways to make our company more efficient.

Adam Aron: I do know that the studios have taken these negotiations seriously. They've started the negotiation process earlier than they did last time around. I think the general consensus is that the two strikes a couple of years back were devastating to everyone connected to the movie business, devastating to the members of the union, devastating to movie makers. I would sure hope that we don't have to repeat anything like that, and that, well, the union, studio renegotiations transpire in such a way that deals are met and that the production of movies goes on without interruption.

In their outcome, but we're not at the table. Um,

Through the adoption of <unk>.

AI techniques.

On that though.

I do know that the studios have taken these negotiations seriously. They've started the negotiation process earlier than they did last time around.

In a capital light way, we continue to be very committed.

I think the general consensus is

that the

To upgrading the theater experience.

Two strikes, a couple of years back.

Or devastating.

Yeah.

We're going to add more imax's, where to add more Dolby cinemas, we're going to add more primes and <unk>, we're going to we're going to double the number of <unk> screens. This is all good at the same time.

To everyone connected to the movie business.

Devastating to the members of the union have devastated—devastating to movie makers.

I would sure hope.

That we don't have to repeat anything like that.

Yeah.

A decade ago.

AMC was quite experienced in practice in renovating whole theaters expensively.

And that, um, they—well, the Union, uh, uh, Studio negotiations transpire in such a way.

Ripping out seats, putting in the so-called recliner seats, which are very popular with guests.

That deals are met, and that the production of movies goes on without interruption.

Sean Goodman: Our final question here is on CapEx spend. We've guided to $175 to 225 million a year, which is the same in 2026 as it was in 2025. Just questions on how we're allocating our CapEx spend, sort of what are the focus areas for our CapEx spend?

But we have a problem and the problem with we have a number of theaters.

That where the volumes are so high.

That we can afford to cede loss.

Pulling a lot of seats out of the auditoriums.

Adam: Well, very round numbers, right? Very round numbers. $150 million of that number is what I'll call maintenance capital, to keep our theaters in good shape, roofs not leaking, HVAC systems working, IT systems being overhauled, as needed, to continue to have AMC be a strong player from an IT standpoint. AI is capturing some of our money now because there are ways to make our company more efficient, through the adoption of AI techniques. Beyond that, though, in a capital-light way, we continue to be very committed to upgrading the theater experience. We're gonna add more IMAXs, we're gonna add more Dolby Cinemas, we're gonna add more PRIMEs and iSenses. We're gonna double the number of XL screens. This is all good.

Adam Aron: Well, very round numbers, right? Very round numbers. $150 million of that number is what I'll call maintenance capital, to keep our theaters in good shape, roofs not leaking, HVAC systems working, IT systems being overhauled, as needed, to continue to have AMC be a strong player from an IT standpoint. AI is capturing some of our money now because there are ways to make our company more efficient, through the adoption of AI techniques. Beyond that, though, in a capital-light way, we continue to be very committed to upgrading the theater experience. We're gonna add more IMAXs, we're gonna add more Dolby Cinemas, we're gonna add more PRIMEs and iSenses. We're gonna double the number of XL screens. This is all good.

It reminds me of the old Yogi Berra quote nobody goes there anymore, because it's so crowded.

And then our final question here is on capex. We've guided to $175 to $225 million a year, which is the same in 2026 as it was in 2025. Just questions on how we're allocating our capex spend—sort of, what are the focus areas for our capex spend? Well, in very round numbers, right? Very round numbers.

Said.

150 million of that. Number is

So there is it was easy to decide how do your renovated theater, if you've got a rip everything down.

what I'll call maintenance capital.

Uh, to keep our theaters in good shape.

Down to the studs and.

Roof is not leaking hva systems working.

Put a recliner seats was six feet of leg room for ROE and.

Um, uh, it systems.

Being overhauled.

But now we're at a point, where that's pretty much behind us.

And.

We're looking at how do we keep the product top flight.

And some of our highest volume theaters.

We're more traditional seating is is going to be the norm.

And we came up with what we think is the answer and interestingly, Sean It's also a capital light.

Our solution.

Uh, as needed, um, to uh, to continue to have AMC be a strong, uh, player from an IT standpoint. Um, AI is capturing some of our money now because there are ways to make our company more efficient, um, through the adoption of, uh, AI techniques, uh, beyond that though.

You had a theater and Burbank.

That was the single highest grossing theater in the United States.

We continue to be very committed.

But it wasn't ready condition.

To upgrading the theater experience.

Two and a half years ago, the seats were tired and old and Spain. We knew we had to replace all the seats. The Burbank theater, but we also knew that the volumes are so high at the theater, where you were going to need a similar seat count to what we had at the time.

Adam: At the same time, a decade ago. AMC was quite experienced in practice in renovating whole theaters expensively, ripping out seats, putting in the so-called recliner seats, which are very popular with guests. We have a problem, and the problem is we have a number of theaters that where the volumes are so high that we can't afford the seat loss of pulling a lot of seats out of the auditoriums. It reminds me of the old Yogi Berra quote, "Nobody goes there anymore because it's so crowded," he once said. It was easy to decide how do you renovate a theater if you got to rip everything down to the studs and put in recliner seats with 6 feet of leg room per row?

Adam Aron: At the same time, a decade ago. AMC was quite experienced in practice in renovating whole theaters expensively, ripping out seats, putting in the so-called recliner seats, which are very popular with guests. We have a problem, and the problem is we have a number of theaters that where the volumes are so high that we can't afford the seat loss of pulling a lot of seats out of the auditoriums. It reminds me of the old Yogi Berra quote, "Nobody goes there anymore because it's so crowded," he once said. It was easy to decide how do you renovate a theater if you got to rip everything down to the studs and put in recliner seats with 6 feet of leg room per row?

And, um, we're going to add more IMAX. We're going to add more Dolby Cinemas. We're going to add more Prime and iSense. We're going to—we're going to double the number of XL screens. Uh, this is all good at the same time.

Um, a decade ago.

So a.

A lot of studying we investigated dozens of dozens of different potential seats and we came up with what is now if you look at our website and app.

Out seats, putting in the so-called recliner seats, which are very popular with guests.

As branded as the AMC club a rocker.

Um, but we have a problem.

It's a very comfortable seat and much superior.

And the problem is, we have a number of theaters.

Anything thats in our traditional.

That's where the volumes are so high.

Seating theatres today.

That we can't afford the seat loss.

It's kind of a <unk>.

<unk> look I'm not sure it's actually leather but.

It looks like leather and feels like leather smells like other.

It's got a lot of pattern and cushioning.

It's wider than the older seats.

And it rocks it moves around a little bit so people can adjust the seat to their own comfort.

Adam: Now we're at a point where that's pretty much behind us, and we're looking at how do we keep the product top flight in some of our highest volume theaters, where more traditional seating is gonna be the norm. We came up with what we think is the answer. Interestingly, Sean, it's also a capital light-

Adam Aron: Now we're at a point where that's pretty much behind us, and we're looking at how do we keep the product top flight in some of our highest volume theaters, where more traditional seating is gonna be the norm. We came up with what we think is the answer. Interestingly, Sean, it's also a capital light-

Of pulling a lot of seats out of the auditoriums. It reminds me of the old Yogi Berra quote, 'Nobody goes there anymore because it's so crowded.' These ones said, um, so there—it was easy to decide. How do you renovate the theater if you've got to rip everything down to the studs and put in recliner seats with 6 feet of leg room per row, and—

And it was a massive headwind when we put it in to Burbank.

<unk> 16, so we took that same exact seat.

but now we're at a point where that's pretty much behind us, and

We're looking at: how do we keep?

We put it into our Empire theater in Manhattan, and our Lincoln Square Theater in Manhattan.

The product Top Flight.

And some of our highest volume theaters.

And we have the week after week I was seeing in our reports.

$550 theaters in the country.

Chad Beynon: Yeah.

Adam: solution. We had a theater in Burbank that was the single highest grossing theater in the United States, but it was in kind of ratty condition two and a half years ago. The seats were tired and old and stained, and we knew we had to replace all the seats at the Burbank Theater, but we also knew that the volumes were so high at the theater, we were gonna need a similar seat count to what we had at the time. A lot of studies, we investigated dozens and dozens of different potential seats, and we came up with what is now, if you look at our website and app, is branded as the AMC Club Rocker. It's a very comfortable seat and much superior than anything that's in our traditional seating theaters today. It's kind of a leathery look.

Adam Aron: solution. We had a theater in Burbank that was the single highest grossing theater in the United States, but it was in kind of ratty condition two and a half years ago. The seats were tired and old and stained, and we knew we had to replace all the seats at the Burbank Theater, but we also knew that the volumes were so high at the theater, we were gonna need a similar seat count to what we had at the time. A lot of studies, we investigated dozens and dozens of different potential seats, and we came up with what is now, if you look at our website and app, is branded as the AMC Club Rocker. It's a very comfortable seat and much superior than anything that's in our traditional seating theaters today. It's kind of a leathery look.

Three highest grossing for AMC or Burbank Empire Lincoln Square week after week after week, what do they have in common the Burbank seat.

Um where more traditional seating is is going to be the norm. And we came up with what we think is the answer and interestingly Sean, it's also a capital light. Yeah uh solution.

Uh, we had a theater in Burbank.

We have since put her in to some of our other theaters.

That was the single highest-grossing theater in the United States.

But it was in kind of ratty condition.

For those of you who are knowledgeable.

The theater on the upper East side in Manhattan called <unk> six.

2 and a half years ago, the seats were tired and old and stained. And

We're going to put that scene.

<unk> six sometime this year.

We're going to greatly expand the leg room.

We knew we had to replace all the seats at the Burbank theater, but we also knew that the volumes were so high. At the theater, we were going to need a similar seat count to what we had at the time.

To 48 inch seat pitch, which is a lot I love to say four feet for your two legs.

so, we

studying, we

Investigated does.

And the combination of a lot of leg room.

And that.

And we came up with what is now, if you look at our website and app,

Very comfortable new club rocker seats is going to turn that theater.

It is branded as the AMC Club Rocker.

Um,

Into what is now a tired sub standard all Loews theater from ages ago.

It's a very comfortable seat and much superior.

Into a real powerhouse in India on the upper East side, and we're also going to look to take that club rocker seats.

Adam: I'm not sure it's actually leather, but looks like leather, it feels like leather, it smells like leather. It's got a lot of padding and cushioning. It's wider than the older seats, and it rocks. It moves around a little bit, so people can adjust the seat to their own comfort. It was a massive hit when we put it into Burbank 16. We took that same exact seat, and we put it into our Empire Theater in Manhattan, in our Lincoln Square Theater in Manhattan. Week after week after week, I was seeing in our reports that out of our 550-ish theaters in the country, the three highest grossing for AMC were Burbank, Empire, and Lincoln Square, week after week after week. What did they have in common? The Burbank seat.

Adam Aron: I'm not sure it's actually leather, but looks like leather, it feels like leather, it smells like leather. It's got a lot of padding and cushioning. It's wider than the older seats, and it rocks. It moves around a little bit, so people can adjust the seat to their own comfort. It was a massive hit when we put it into Burbank 16. We took that same exact seat, and we put it into our Empire Theater in Manhattan, in our Lincoln Square Theater in Manhattan. Week after week after week, I was seeing in our reports that out of our 550-ish theaters in the country, the three highest grossing for AMC were Burbank, Empire, and Lincoln Square, week after week after week. What did they have in common? The Burbank seat.

And to others of our theaters as well.

It's a very inexpensive.

Effort.

To redo a theater and make it nice.

Than anything that's in our traditional uh, seating theaters today. Um, it's kind of a leathery. Look, I'm not sure it's actually leather, but looks like leather. It feels like leather. It smells like other. Um, it's got a lot of padding and cushioning, it's wider than the older seats.

To do so.

Smart capital light way. So those are examples of where the money is going well there was an earlier question about.

And it rocks. It moves around a little bit so people can adjust the seat to their own comfort. Um, and it was a massive headwind when we put it in.

We'll be just good crack theatres are orally add some we will do both.

To Burbank 16, so we took that same exact seat.

So when we take over a theater, we might spend a.

And we put it into our Empire Theater in Manhattan, in our Lincoln Square Theater in Manhattan.

Half a million a million dollars to bring the theater into our system and fits in relatively good shape is it needs a little bit of renovation money.

And week after week after week, I was seeing in our reports that out of our 550 theaters in the country,

Maybe.

Work with the theater of landlord to jointly put up to three $4 million.

Adam: We have since put it into some of our other theaters. For those of you who are knowledgeable about a theater on the Upper East Side in Manhattan called Orpheum 6, we're gonna put that seat into Orpheum 6 sometime this year. We're gonna greatly expand the leg room to 48-inch seat pitch, which is a lot. I love to say 4 feet for your 2 legs. The combination of a lot of leg room and that very comfortable new Club Rocker seat is gonna turn that theater into what is now a tired, substandard, old Loews Theatres from ages ago into a real powerhouse on the Upper East Side. We're also gonna look to take that Club Rocker seat into others of our theaters as well.

Adam Aron: We have since put it into some of our other theaters. For those of you who are knowledgeable about a theater on the Upper East Side in Manhattan called Orpheum 6, we're gonna put that seat into Orpheum 6 sometime this year. We're gonna greatly expand the leg room to 48-inch seat pitch, which is a lot. I love to say 4 feet for your 2 legs. The combination of a lot of leg room and that very comfortable new Club Rocker seat is gonna turn that theater into what is now a tired, substandard, old Loews Theatres from ages ago into a real powerhouse on the Upper East Side. We're also gonna look to take that Club Rocker seat into others of our theaters as well.

So, bringing some theaters into our fleet in very good condition.

The 3 highest grossing for AMC, where Burbank Empire, Lincoln Square week after week after week. What did they have in common? The Burbank seat. Um, we have since put it into some of our other theaters.

The landlord would pay a significant chunk of that cost through tenant allowances and alike. So thats another thing thats going on within the Capex budget.

For those of you who are knowledgeable about a theater on the Upper East Side, in Manhattan, called Orphan 6,

We're going to put that seat.

But as you said.

We've got a fairly tight constraint.

A couple of years ago, we were spending for 450 $500 million of Capex.

Into orphan 6 sometime this year, uh we're going to greatly expand the leg room.

We believe that.

<unk>.

Rounding to the $200 million range is something that we can pull.

Uh, to 48-inch seat pitch, which is a lot. I love to say, four feet for your two legs, um, and the combination of a lot of leg room.

Or minus 25 is something that we can do going forward in the near term.

So thats the update.

And that concludes the <unk>.

And investor questions.

For today's call. So let me just end the call by thank you all for listening to us today and participating with us.

And that, uh, very comfortable new Club Rocker seat is going to turn that theater, uh, into what is now a tired, substandard old Lowe's theater from ages ago, um, into a real powerhouse on the Upper East Side. And we're also going to look to take that Club Rocker seat.

It is going to be the.

Adam: It's a very inexpensive effort to redo a theater and make it nice, but do so in a smart, capital-light way. Those are examples of where the money's going. There was an earlier question about, will we just contract theaters or will we add some? We will do both. When we take over a theater, we might spend a half a million or a million dollars to bring the theater into our system if it's in relatively good shape. If it needs a little bit of renovation money, maybe we'll work with a theater landlord to jointly put up $2, $3, $4 million to bring some theaters into our fleet in very good condition. Hopefully, the landlord would pay a significant chunk of that cost through tenant allowances and the like.

Adam Aron: It's a very inexpensive effort to redo a theater and make it nice, but do so in a smart, capital-light way. Those are examples of where the money's going. There was an earlier question about, will we just contract theaters or will we add some? We will do both. When we take over a theater, we might spend a half a million or a million dollars to bring the theater into our system if it's in relatively good shape. If it needs a little bit of renovation money, maybe we'll work with a theater landlord to jointly put up $2, $3, $4 million to bring some theaters into our fleet in very good condition. Hopefully, the landlord would pay a significant chunk of that cost through tenant allowances and the like.

The strongest slate.

Uh, into others of our theaters as well.

Moviegoing.

This industry has seen since 2019, the year is starting up in double digits, which is a nice way to start.

And as it's a very inexpensive, uh, effort,

uh,

I leave you with this one thought.

That's dominating our thinking and my comments on this call.

<unk> of operating leverage.

As revenues rise EBITDA rises and it does so.

Uh, to re-do a theater and make it nice, uh, but do so in a smart, capital-like way. So, those are examples of where the money's going. There was an earlier question about, uh, will we just contract theaters, or early, add some? We will do both.

As a geometric pace so.

We wont be all the way to where we need to be at the end of 'twenty six but.

A half a million or a million dollars to bring the theater into our system if it's in relatively good shape.

We expect to make a dramatic amount of progress. So this should be a year.

If it needs a little bit of renovation money.

It makes us all smile, thank you for joining us today.

At the movies.

Thank you this brings us to be into today's meeting. We appreciate your time and participation and you may now disconnect.

Adam: That's another thing that's going on within the CapEx budget. As you said, we've got a fairly tight constraint. The couple of years ago, we were spending $450 to $500 million of CapEx. We believe that, rounding to the $200 million range is something that we can, ±25, is something that we can do going forward in the near term. That's the update.

Adam Aron: That's another thing that's going on within the CapEx budget. As you said, we've got a fairly tight constraint. The couple of years ago, we were spending $450 to $500 million of CapEx. We believe that, rounding to the $200 million range is something that we can, ±25, is something that we can do going forward in the near term. That's the update.

[music].

Maybe we work with a theater landlord to jointly put up 2 3, 4 million dollars um, to bring some theaters into our Fleet in very good condition. Hopefully, the landlord would pay a significant chunk of that cost through 10 and allowances and the like. So, that's another thing that's going on within the capex budget.

but as you said,

Oh, Oh Oh.

Uh huh.

Sean Goodman: That concludes the retail investor questions for today's call.

uh, we've got a fairly tight constraint the couple of years ago. We were spending 4 450, 500 million dollars of capex. We believe that, um, rounding to the million dollar range is something that we can plus, or minus. 255 is something that we can do going forward in the near term. Uh, so that's the update.

Adam: Let me just end the call, by thank you all for listening to us today and participating with us. It is gonna be the strongest slate of moviegoing that this industry has seen since 2019. The year is starting up in double digits, which is a nice way to start. I leave you with this one thought that's dominating our thinking and my comments on this call, that notion of operating leverage. As revenues rise, EBITDA rises, and it does so at a geometric pace. We won't be all the way to where we need to be at the end of 2026, but we expect to make a dramatic amount of progress. This should be a year that makes us all smile. Thank you for joining us today. See you at the movies.

And that concludes the, um, retail investor questions. Um,

Adam Aron: Let me just end the call, by thank you all for listening to us today and participating with us. It is gonna be the strongest slate of moviegoing that this industry has seen since 2019. The year is starting up in double digits, which is a nice way to start. I leave you with this one thought that's dominating our thinking and my comments on this call, that notion of operating leverage. As revenues rise, EBITDA rises, and it does so at a geometric pace. We won't be all the way to where we need to be at the end of 2026, but we expect to make a dramatic amount of progress. This should be a year that makes us all smile. Thank you for joining us today. See you at the movies.

For for today school. So let me just end the call uh by thank you all for listening to us today and participating with us.

It is going to be.

The strongest slate.

Of moviegoing that this industry has seen since 2019.

The year is starting up in double digits, which is a nice way to start.

And I, I leave you with this one thought.

That's dominating our thinking and my comments on this call—that notion of operating leverage.

As revenues rise, EBITDA rises, and it does so at a geometric pace. So, we won't be all the way to where we need to be at the end of '26.

But we expect to make a dramatic amount of progress, so this should be a year.

That makes us all smile. Thank you for joining us today.

See you at the movies.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Q4 2025 AMC Entertainment Holdings Inc Earnings Call

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