Management attributes 2025 progress to significant operating leverage, where approximately 2/3 of every incremental revenue dollar converts directly to adjusted EBITDA.
Despite a 2.1% decline in global attendance for the full year, adjusted EBITDA grew by 12.7%, reflecting a deliberate shift toward higher-margin per-patron revenue and operational efficiency.
The company achieved record-setting per-patron metrics in admissions, food and beverage, and total revenue, with domestic contribution margins now 56% higher than pre-pandemic 2019 levels.
Strategic outperformance in the U.S. was driven by a 140 basis point lead over industry growth, supported by a dominant 25% market share and a preference for premium large-format (PLF) screens.
Management highlighted a pivot in content strategy, successfully partnering with Netflix for theatrical events like ‘Stranger Things’, which demonstrated high demand for shared experiences of streaming content.
The theater portfolio was optimized by closing 21 underperforming locations and selectively acquiring high-potential ‘spot’ locations, resulting in a net 15% reduction in footprint since 2020 to improve asset productivity.
Management expects the 2026 industry box office to grow by $500 million to over $1 billion compared to 2025, driven by a ‘parade of juggernauts’ from major studios and increased volume from streamers.
The company anticipates 2026 will be the strongest industry box office year since 2019, though management notes a strong 2027 slate will likely be required to reach sustained positive cash flow in ‘outer years’.
Strategic initiatives for 2026 include doubling the count of ‘XL’ extra-large format screens and introducing ‘Premier Seating’ to reserve the best house seats for top-tier loyalty members.
Capital expenditure for 2026 is projected between $175 million and $225 million, focusing on ‘capital-light’ upgrades like laser projection and the new ‘Club Rocker’ seating rather than expensive full renovations.
Guidance assumes continued recovery in the European market, which is currently outperforming the U.S. recovery pace in the early weeks of 2026.
AMC addressed all 2026 debt maturities by pushing them to 2029 and launched a new refinancing transaction to extend approximately $2.4 billion of debt from 2027/2029 out to 2031.
Total debt has been reduced by approximately $1.8 billion since the end of 2020, including principal reductions and repayment of COVID-related lease deferrals.
The investment in Hycroft Mining was defended as a strategic success, with management reporting a total value of approximately $63 million against an initial $29 million investment.
The company is currently utilizing an at-the-market equity offering to bolster liquidity, having raised $26.2 million in gross proceeds as of late February.
