AMC Entertainment Holdings (AMC) saw its shares rally 9.5% on Friday, closing at $1.73, marking the biggest single-day gain in the holiday-shortened week. Trading volume surged to 39.4 million shares, nearly doubling from Thursday's 19.2 million. The stock traded within a range of $1.55 to $1.79, finishing near the session high. Despite the jump, AMC remains far from its 52-week high of $3.60.
The rally came as the summer box office season begins to take shape. Over the U.S. Memorial Day weekend, AMC drew more than 5 million moviegoers across its global network of AMC Theatres and ODEON Cinemas. The company said its U.S. locations saw the best Thursday-through-Monday attendance in 2026. CEO Adam Aron hailed the weekend as evidence of the "power of the big screen experience."
Disney's The Mandalorian and Grogu led the holiday box office, earning an estimated $102 million in the U.S. and Canada over the four-day period, according to Reuters. Worldwide, Disney projected about $165 million. Jeff Bock, senior box-office analyst at Exhibitor Relations, told Reuters the film could help "stabilize" the Star Wars franchise at theaters after a prolonged hiatus. AMC noted that merchandise sales related to the film ranked as the third-best for any movie opening in its history. The company also highlighted upcoming releases including Scary Movie, Masters of the Universe, Toy Story 5, and Supergirl.
Another standout was Obsession, which expanded in its second weekend and saw an increase in ticket sales—a rarity for wide releases. Paul Dergarabedian, Comscore's senior media analyst, told the Associated Press the film's performance was "really unheard of" and underscored that "the moviegoers rule."
AMC's stock outperformed its peers on Friday. Cinemark (CNK) rose approximately 2.3%, while IMAX (IMAX) added 1.8%. The broader market also gained, with the SPY ETF tracking the S&P 500 up 0.3% and the QQQ ETF climbing 0.5%.
Despite the positive sentiment, AMC continues to face significant financial headwinds. The company reported a first-quarter net loss of $117.1 million on revenue of $1.05 billion. Adjusted EBITDA came in at $38.3 million, but the company burned through $174.7 million in free cash during the quarter. It ended the period with $339.2 million in cash and $3.96 billion in total debt. To bolster liquidity, AMC raised approximately $71.7 million through at-the-market share sales, which add cash but dilute existing shareholders.
CEO Adam Aron said earlier this month that "the box office is back." However, the stock's recent gains could reverse if the summer movie slate fails to sustain momentum or if higher attendance does not translate into improved free cash flow. AMC's success now depends less on blockbuster hits and more on a consistent lineup that keeps audiences returning, allowing the company to chip away at its debt load.
