AMC Entertainment Holdings (AMC) posted first-quarter revenue of $1.05 billion, a 21.2% increase year-over-year that surpassed Wall Street expectations. The Leawood, Kansas-based theater chain reported attendance climbed 13.6% to 47.6 million patrons, driven by a rebound in box office traffic and higher spending on premium formats.
Financial Highlights
For the quarter ended March 31, AMC narrowed its net loss to $117.1 million, or 22 cents per share, compared to a loss of $202.1 million, or 47 cents per share, in the same period last year. Adjusted EBITDA turned positive at $38.3 million, marking the company's best first-quarter result by that metric since 2019. Analysts surveyed by LSEG had expected revenue of $968.5 million.
Attendance and Premium Formats
U.S. attendance rose 14.2%, while international attendance increased 12.6%. The company noted that ticket prices rose across all formats, particularly for 3D, IMAX, and other premium large-format screens, which command higher prices. As of March 31, AMC operated 224 IMAX screens, 181 Dolby Cinema locations, and 154 of its own branded premium large-format theaters. The chain plans to launch Arena One at AMC in June, converting auditoriums in over 300 U.S. theaters into venues for both movies and live concerts.
Debt and Cash Flow Concerns
Despite the revenue beat, AMC continues to grapple with a heavy debt load. The company ended the quarter with $339.2 million in cash, excluding restricted cash, but free cash flow was negative $174.7 million, and net cash used in operating activities totaled $128.5 million. AMC raised approximately $71.7 million through its at-the-market equity program and sold its Hycroft Mining shares for $29.7 million. Additionally, holders of about $155.8 million in exchangeable notes due 2030 opted to convert those into AMC common shares.
CEO Comments and Industry Context
CEO Adam Aron called the period AMC's "best Adjusted EBITDA first quarter result since 2019 pre-pandemic" and declared that "the box office is back." He highlighted upcoming releases such as Amazon MGM's Project Hail Mary, The Super Mario Galaxy Movie, Michael, and The Devil Wears Prada 2 as evidence of a stronger film slate in 2026. Other exhibitors are also seeing improvements; Cinemark reported first-quarter revenue of $643.1 million, up 18.9%, and IMAX generated $260 million in global box office receipts during the quarter.
Outlook and Risks
AMC flagged several risks in its filing, including sluggish box office recovery, substantial debt, shorter theatrical windows, rising competition, and potential disruptions to film production or release calendars. The company's ability to convert a packed summer and stronger film slate into reliable cash flow remains a key question for investors. Shares rose more than 2% in after-hours trading on the news.
