National CineMedia, Inc. (NASDAQ:NCMI) is among the hidden penny stocks to buy now. According to a latest report by Marketbeat, National CineMedia, Inc. (NASDAQ:NCMI) has received an average recommendation of “Moderate Buy” from six analysts, with three analysts advising to hold the stock and the remaining three issuing a buy rating. While praising the management’s resilience during the tough quarter, F. Lesinski, CEO of National CineMedia, Inc. (NASDAQ:NCMI), highlighted the strategic initiatives underta ...

Core Insights - National CineMedia (NCMI) reported revenue of $51.8 million for the quarter ended June 2025, reflecting a year-over-year decline of 5.3% and an EPS of -$0.11 compared to -$0.09 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $55 million, resulting in a surprise of -5.82% [1] - The company did not deliver an EPS surprise, with the consensus EPS estimate being -$0.11 [1] Revenue Breakdown - Local and regional advertising revenue was $6.4 million, significantly below the two-analyst average estimate of $9.4 million, representing a year-over-year decline of 34.7% [4] - National advertising revenue reached $41.2 million, slightly below the two-analyst average estimate of $43.95 million, with a year-over-year change of -1.2% [4] - Total advertising revenue (excluding beverage) was reported at $47.62 million, compared to the estimated $53.35 million, indicating a year-over-year decline of 12.9% [4] - ESA advertising revenue from beverage concessionaire agreements was $4.2 million, exceeding the average estimate of $3.65 million, and showing a year-over-year increase of 31.3% [4] Stock Performance - Shares of National CineMedia have returned +0.9% over the past month, compared to the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Company Performance - National CineMedia (NCMI) reported a quarterly loss of $0.11 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.09 per share a year ago [1] - The company posted revenues of $51.8 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.82%, and down from $54.7 million year-over-year [2] - The stock has lost approximately 28.5% since the beginning of the year, while the S&P 500 has gained 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $63.4 million, and -$0.05 on revenues of $251.67 million for the current fiscal year [7] - The estimate revisions trend for National CineMedia was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock [6] Industry Context - The Advertising and Marketing industry, to which National CineMedia belongs, is currently in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact individual stock performance [5]

Financial Data and Key Metrics Changes - National CineMedia's total revenue for Q2 2025 was $51.8 million, which was below the guidance range of $56 million to $61 million and down 5% compared to the prior year [18][19] - Adjusted OIBDA for the second quarter was $700,000, a significant decrease from $7.6 million in the prior year [22] - Operating income was negative $12 million, compared to negative $9.3 million in the same period last year [21] Business Line Data and Key Metrics Changes - National advertising revenue for Q2 2025 was $41.2 million, slightly down from $41.7 million in Q2 2024, with national ad revenue per attendee dropping to $0.36 from $0.45 year-over-year [19] - Local and regional advertising revenue totaled $6.4 million, down from $9.8 million in the previous year, reflecting cautious advertiser sentiment [19][20] - Programmatic advertiser volume grew by over 50% quarter-over-quarter, with approximately 70% of programmatic advertisers being new to NCM [10] Market Data and Key Metrics Changes - The scatter market represented 40% of NCM's national on-screen revenue in Q2 2025, with inventory utilization up 12% [19] - Attendance increased by 24% year-over-year, reaching over 115 million individuals across the network in Q2 2025 [13] Company Strategy and Development Direction - The company is focusing on scaling programmatic and self-serve offerings to capture growing premium video advertising budgets [8] - NCM is enhancing its sales capabilities by onboarding new talent and engaging high-value advertisers at local and regional levels [10] - The company aims to deepen existing advertiser relationships and strategically expand its client base, leveraging the unique value of cinema as a high-impact advertising channel [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment in Q2 due to advertiser caution in key categories, but expressed optimism for the second half of the year [6][14] - Early indicators for Q3 are encouraging, with booked sales pacing ahead of the same period last year and demand normalizing across key categories [14] - The company expects third-quarter revenue to be between $62 million and $67 million, supported by improved advertiser commitment and sustained theatrical strength [26] Other Important Information - NCM had $40.3 million in cash and equivalents at the end of Q2 2025, with zero outstanding debt [23][24] - The company reinstated a quarterly dividend of $0.03 per share, amounting to $2.8 million, to be paid on August 29, 2025 [25] - Year-to-date total revenue was $86.6 million, down from $92.1 million in the same period last year [22] Q&A Session Summary Question: Insights on Q3 revenue guidance and potential year-end ad budget flushes - Management noted a more relaxed budgeting environment in Q3 compared to Q2, with significant confidence returning among advertisers [30][32] Question: Expectations for strategic investing in sales and marketing - Management indicated that investments in sales and marketing would be more back-half weighted, with ongoing monitoring of operating expenses [34][35] Question: Clarification on Q3 guidance and demand spillover from Q2 - Management confirmed that the Q3 guidance reflects mostly new business rather than a spillover from paused deals in Q2 [39][40] Question: Feedback on programmatic advertising traction - Management reported significant traction in programmatic advertising, with a high percentage of new advertisers engaging with the platform [42][43] Question: Strategies for increasing visibility with media buyers - Management highlighted the establishment of a new business group focused on acquiring new clients and enhancing awareness of their advertising platform [45][46] Question: Impact of CTV on utilization and CPMs - Management acknowledged CTV as a competitive bucket and indicated plans to build a programmatic platform to compete in that space [68]

PART I - FINANCIAL INFORMATION This section presents the unaudited financial statements and management's discussion and analysis for the company [Item 1. Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for National CineMedia, Inc. and its subsidiaries, including the balance sheets, statements of operations, cash flows, and equity, along with detailed notes explaining significant accounting policies, business operations, recent developments, and financial performance for the periods ended June 26, 2025, and December 26, 2024 [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's financial position, including assets, liabilities, and equity, as of specific reporting dates | ASSETS (In millions) | June 26, 2025 | December 26, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $37.2 | $75.1 | | Total current assets | $101.0 | $177.9 | | Intangible assets, net | $322.0 | $350.8 | | TOTAL ASSETS | $462.0 | $568.6 | | LIABILITIES (In millions) | June 26, 2025 | December 26, 2024 | | :-------------------- | :------------ | :---------------- | | Total current liabilities | $57.9 | $73.5 | | Long-term debt | $— | $10.0 | | Total liabilities | $112.0 | $157.4 | | Total equity | $350.0 | $411.2 | | TOTAL LIABILITIES AND EQUITY | $462.0 | $568.6 | - Total assets decreased from **$568.6 million** as of December 26, 2024, to **$462.0 million** as of June 26, 2025, a reduction of **$106.6 million**[11](index=11&type=chunk) - Total liabilities decreased from **$157.4 million** to **$112.0 million**, primarily due to the repayment of long-term debt and a reduction in payable under the TRA[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net loss over specific reporting periods | (In millions, except per share data) | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $51.8 | $54.7 | $86.6 | $92.1 | | OPERATING LOSS | $(12.0) | $(9.3) | $(35.9) | $(32.0) | | CONSOLIDATED NET LOSS | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | NET LOSS ATTRIBUTABLE TO NCM, INC. | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | Basic EPS | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | Diluted EPS | $(0.11) | $(0.09) | $(0.44) | $(0.45) | - Revenue decreased by **5.3%** for the three months ended June 26, 2025, compared to the same period in 2024, and by **6.0%** for the six months ended June 26, 2025[13](index=13&type=chunk) - Operating loss increased to **$(12.0) million** for Q2 2025 from **$(9.3) million** for Q2 2024, and to **$(35.9) million** for YTD 2025 from **$(32.0) million** for YTD 2024[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by the company from operating, investing, and financing activities | (In millions) | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1.1 | $31.8 | | Net cash used in investing activities | $(2.4) | $(2.4) | | Net cash used in financing activities | $(36.5) | $(10.2) | | Change in cash, cash equivalents and restricted cash | $(37.8) | $19.2 | | Cash, cash equivalents and restricted cash at end of period | $40.3 | $56.8 | - Net cash provided by operating activities significantly decreased from **$31.8 million** in H1 2024 to **$1.1 million** in H1 2025[16](index=16&type=chunk) - Net cash used in financing activities increased from **$(10.2) million** in H1 2024 to **$(36.5) million** in H1 2025, primarily due to debt repayment and increased stock repurchases[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Equity) This statement outlines the changes in the company's equity components over specific reporting periods | (In millions) | Balance—December 26, 2024 | Balance—June 26, 2025 | | :-------------------------------- | :------------------------ | :-------------------- | | Total NCM, Inc. stockholders' equity | $411.2 | $350.0 | | Retained earnings | $280.9 | $214.8 | | Purchases of NCM, Inc.'s common stock | $(18.8) | $(18.8) | | Comprehensive loss, net of tax | $(41.4) | $(41.4) | | Cash dividends declared | $(5.9) | $(5.9) | - Total NCM, Inc. stockholders' equity decreased from **$411.2 million** at December 26, 2024, to **$350.0 million** at June 26, 2025[11](index=11&type=chunk)[22](index=22&type=chunk) - Retained earnings decreased by **$66.1 million** from **$280.9 million** to **$214.8 million** during the six months ended June 26, 2025, primarily due to comprehensive loss and stock repurchases[11](index=11&type=chunk)[22](index=22&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [1. THE COMPANY](index=8&type=section&id=1.%20THE%20COMPANY) This note describes the company's business operations, key agreements, and recent corporate developments - National CineMedia, Inc. is the largest cinema advertising platform in the U.S., operating in over **1,350 theaters** with more than **17,500 screens** across **184 DMAs**[26](index=26&type=chunk) - The Company has long-term exhibitor service agreements (ESAs) with Cinemark and AMC, with a weighted average remaining term of approximately **16.2 years** as of June 26, 2025[27](index=27&type=chunk) - NCM LLC emerged from Chapter 11 bankruptcy on **August 7, 2023**, leading to reconsolidation into NCM, Inc.'s financial statements and a gain on bankruptcy of **$916.4 million** for the year ended December 28, 2023[29](index=29&type=chunk)[30](index=30&type=chunk) - On **April 17, 2025**, NCM and AMC entered into a Second Amended and Restated ESA, extending the term by **five years** and adjusting consideration, which resulted in NCM LLC releasing **$21.6 million** of 'Payable under the TRA' and reversing a **$10.6 million** receivable from AMC[34](index=34&type=chunk) - On **January 24, 2025**, NCM LLC entered into a new **$45.0 million** senior secured revolving credit facility (2025 Credit Facility) maturing **January 24, 2028**, and repaid and terminated the previous **$10.0 million** Revolving Credit Facility 2023[35](index=35&type=chunk) [2. REVENUE FROM CONTRACTS WITH CUSTOMERS AND ACCOUNTS RECEIVABLE](index=16&type=section&id=2.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS%20AND%20ACCOUNTS%20RECEIVABLE) This note details the company's revenue recognition policies and disaggregated revenue streams - Revenue is primarily derived from national, regional, and local advertising sales in the Noovie® show, lobby network (LEN), and digital advertising products (NCMx™)[58](index=58&type=chunk) | Revenue Category (in millions) | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | National advertising revenue | $41.2 | $41.7 | $68.6 | $71.2 | | Local and regional advertising revenue | $6.4 | $9.8 | $11.2 | $15.0 | | ESA Party beverage revenue | $4.2 | $3.2 | $6.8 | $5.9 | | Total revenue | $51.8 | $54.7 | $86.6 | $92.1 | - National advertising revenue decreased by **1.2%** for the three months and **3.7%** for the six months ended June 26, 2025, while local and regional advertising revenue saw a more significant decrease of **34.7%** and **25.3%** respectively, attributed to macroeconomic uncertainty[63](index=63&type=chunk) - ESA Party beverage revenue increased by **31.3%** for the three months and **15.3%** for the six months ended June 26, 2025, driven by increased attendance and contractual rate increases[63](index=63&type=chunk) [3. LOSS PER SHARE](index=17&type=section&id=3.%20LOSS%20PER%20SHARE) This note presents the calculation of basic and diluted loss per share for the company | (In millions, except per share data) | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to NCM, Inc. | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | Basic EPS | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | Diluted EPS | $(0.11) | $(0.09) | $(0.44) | $(0.45) | - Basic and diluted loss per share for NCM, Inc. increased to **$(0.11)** for the three months ended June 26, 2025, from **$(0.09)** in the prior year, while for the six months, it slightly improved to **$(0.44)** from **$(0.45)**[66](index=66&type=chunk) - Weighted average shares outstanding decreased to **93,978,031** (basic) for the three months ended June 26, 2025, from **96,409,830** in the prior year, and to **94,681,546** (basic) for the six months from **96,664,241**[66](index=66&type=chunk) [4. INTANGIBLE ASSETS](index=18&type=section&id=4.%20INTANGIBLE%20ASSETS) This note provides details on the company's intangible assets, including their composition and changes - Intangible assets primarily consist of contractual rights under ESAs and network affiliate agreements, customer relationships, trademarks, and datasets[69](index=69&type=chunk) - The 2025 AMC Agreement triggered an impairment review for intangible assets, but no impairment was recorded as estimated future cash flows exceeded net book value[70](index=70&type=chunk) | Intangible Asset Category (in millions) | June 26, 2025 (Net) | December 26, 2024 (Net) | Weighted Average Remaining Life (Years) - June 26, 2025 | | :-------------------------------------- | :------------------ | :---------------------- | :------------------------------------------------------ | | ESA Party agreements | $192.7 | $212.3 | 15.6 | | Network affiliate agreements | $66.1 | $68.5 | 14.1 | | Customer relationships | $51.3 | $57.6 | 4.1 | | Trademark | $11.5 | $12.4 | 6.1 | | Datasets | $0.4 | $0.0 | 2.3 | - The forgiveness of AMC's **$10.6 million** receivable for integration payments, due to the 2025 AMC Agreement, was recorded as an increase to the ESA Party intangible asset, reducing future amortization expense[76](index=76&type=chunk) [5. RELATED PARTY TRANSACTIONS](index=20&type=section&id=5.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions and balances with related parties - The Company holds a **4%** investment in AC JV, LLC, accounted for under the equity method[82](index=82&type=chunk) - Equity in earnings from AC JV, LLC was **$0.2 million** for the three months and **$0.3 million** for the six months ended June 26, 2025[82](index=82&type=chunk) [6. BORROWINGS](index=22&type=section&id=6.%20BORROWINGS) This note details the company's debt instruments, credit facilities, and related terms | Borrowings (in millions) | June 26, 2025 | December 26, 2024 | Maturity Date | | :----------------------- | :------------ | :---------------- | :--------------- | | 2025 Credit Facility | $— | $— | January 24, 2028 | | Revolving Credit Facility 2023 | $— | $10.0 | August 7, 2026 | | Total borrowings | $— | $10.0 | | - NCM LLC entered into a new **$45.0 million** senior secured revolving credit facility on **January 24, 2025**, maturing **January 24, 2028**, with no borrowings outstanding as of June 26, 2025[86](index=86&type=chunk) - The previous Revolving Credit Facility 2023 was repaid in full (**$10.0 million**) and terminated, resulting in a **$1.8 million** loss on debt extinguishment[93](index=93&type=chunk) - The 2025 Credit Facility bears interest at a floating rate of term SOFR (subject to a floor of zero) plus an applicable margin of **2.00%**[87](index=87&type=chunk) [7. INCOME TAXES](index=24&type=section&id=7.%20INCOME%20TAXES) This note explains the company's income tax expense, effective tax rate, and deferred tax assets/liabilities - The Company recorded **$0.0 million** in income tax expense for the three and six months ended June 26, 2025, maintaining a **0.0%** effective tax rate due to a full valuation allowance on net deferred tax assets[94](index=94&type=chunk) - The AMC Termination Agreement resulted in AMC waiving rights to the TRA, reducing the 'Payable under the TRA' by **$21.6 million**, which was recorded against the ESA Parties' intangible asset[95](index=95&type=chunk) [8. COMMITMENTS AND CONTINGENCIES](index=24&type=section&id=8.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's contractual obligations, legal proceedings, and other contingent liabilities - The Company is subject to legal actions in the ordinary course of business but believes they will not have a material adverse effect[96](index=96&type=chunk) - Operating lease agreements for corporate headquarters and regional offices have ROU assets of **$11.4 million** and lease liabilities of **$13.5 million** as of June 26, 2025, with a weighted average remaining lease term of **7.1 years**[97](index=97&type=chunk) - ESAs and network affiliate agreements are considered short-term leases under ASC 842, with amortization of related intangible assets recognized as lease expense[101](index=101&type=chunk) - The maximum potential future payments under minimum revenue guarantees for network affiliate agreements is **$292.6 million** over remaining terms, contingent on attendance thresholds[103](index=103&type=chunk) [9. FAIR VALUE MEASUREMENTS](index=25&type=section&id=9.%20FAIR%20VALUE%20MEASUREMENTS) This note describes the company's fair value measurements for financial and non-financial assets and liabilities - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[104](index=104&type=chunk)[105](index=105&type=chunk) - Non-recurring fair value measurements apply to long-lived assets, intangible assets, and other investments, with no impairments recorded as of June 26, 2025[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) | Recurring Fair Value Measurements (in millions) | Fair Value As of December 26, 2024 | Level 1 | Level 2 | Level 3 | | :---------------------------------------------- | :--------------------------------- | :------ | :------ | :------ | | Cash equivalents | $41.2 | $41.2 | $— | $— | | Short-term marketable securities | $0.1 | $— | $0.1 | $— | | Total assets | $41.3 | $41.2 | $0.1 | $— | [10. SUBSEQUENT EVENT](index=27&type=section&id=10.%20SUBSEQUENT%20EVENT) This note discloses significant events that occurred after the balance sheet date - On **August 5, 2025**, the Company declared a cash dividend of **$0.03 per share** (approximately **$2.8 million**) to be paid on **August 29, 2025**[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of National CineMedia's business, recent developments, and a detailed analysis of its financial performance for the three and six months ended June 26, 2025, compared to the prior year. It covers revenue trends, operating expenses, non-operating income/expense, and liquidity, highlighting the impact of macroeconomic conditions and strategic agreements [Overview](index=28&type=section&id=Overview) This section provides a general description of the company's business model and key operating metrics - National CineMedia is the largest cinema advertising platform in the U.S., connecting brands with young, diverse audiences through its Noovie® Show, lobby network (LEN), and digital advertising (NCMx™)[115](index=115&type=chunk)[117](index=117&type=chunk) - The Company monitors key operating metrics such as revenue, Adjusted OIBDA, Adjusted OIBDA margin, advertising inventory utilization, CPM, and revenue per attendee[118](index=118&type=chunk) - As of June 26, 2025, **96.4%** of the network presents The Noovie Show with Post-Showtime advertising inventory, and the Company has approximately **1.4 billion** data sets from mobile app downloads and third-party data[116](index=116&type=chunk)[117](index=117&type=chunk) [Recent Developments](index=28&type=section&id=Recent%20Developments) This section highlights significant events and strategic initiatives impacting the company's operations and financial position - The 2025 AMC Agreement extended the ESA term by **five years** and adjusted consideration, leading to NCM LLC releasing **$21.6 million** of 'Payable under the TRA' and reversing a **$10.6 million** receivable from AMC[120](index=120&type=chunk)[121](index=121&type=chunk) - NCM LLC secured a new **$45.0 million** senior secured revolving credit facility (2025 Credit Facility) on **January 24, 2025**, maturing in **2028**, and repaid the previous **$10.0 million** Revolving Credit Facility 2023[122](index=122&type=chunk) - The Board approved a stock repurchase program on **March 18, 2024**, authorizing up to **$100.0 million** in share repurchases over **three years**. As of June 26, 2025, **5.8 million** shares have been repurchased[123](index=123&type=chunk) [Bankruptcy Filing, Deconsolidation and Reconsolidation of NCM LLC](index=30&type=section&id=Bankruptcy%20Filing,%20Deconsolidation%20and%20Reconsolidation%20of%20NCM%20LLC) This section details the bankruptcy proceedings of NCM LLC, including its deconsolidation and subsequent reconsolidation into NCM, Inc.'s financial statements - NCM LLC filed for Chapter 11 reorganization on **April 11, 2023**, resulting in deconsolidation from NCM, Inc.'s financial statements and a **$557.7 million** gain on deconsolidation[124](index=124&type=chunk) - NCM LLC emerged from bankruptcy on **August 7, 2023**, leading to reconsolidation, discharge of historical debt, and a **$916.4 million** gain on bankruptcy for the year ended December 26, 2024[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - As of June 26, 2025, **$3.0 million** was held in escrow for the General Unsecured Claim Pool, and the Chapter 11 Case was administratively closed on **March 28, 2025**[128](index=128&type=chunk) [Summary Historical and Operating Data](index=32&type=section&id=Summary%20Historical%20and%20Operating%20Data) This section presents key historical and operating financial data for comparative analysis | (dollars in millions, except share, margin and screen data) | Q2 2025 | Q2 2024 | % Change Q2 2024 to Q2 2025 | YTD 2025 | YTD 2024 | % Change YTD 2024 to YTD 2025 | | :-------------------------------------------------------- | :------ | :------ | :-------------------------- | :------- | :------- | :---------------------------- | | Revenue | $51.8 | $54.7 | (5.3%) | $86.6 | $92.1 | (6.0%) | | Operating loss | $(12.0) | $(9.3) | 29.0% | $(35.9) | $(32.0) | 12.2% | | Net loss attributable to NCM, Inc. | $(10.7) | $(8.7) | 23.0% | $(41.4) | $(43.4) | (4.6%) | | Adjusted OIBDA | $0.7 | $7.6 | (90.8%) | $(8.3) | $1.9 | (536.8%) | | Adjusted OIBDA margin | 1.4% | 13.9% | (90.3%) | (9.6%) | 2.1% | (564.6%) | | Total theater attendance (in millions) | 115.3 | 92.8 | 24.2% | 187.7 | 168.6 | 11.3% | - Total revenue decreased by **5.3%** in Q2 2025 and **6.0%** year-to-date 2025, while operating loss increased by **29.0%** in Q2 2025 and **12.2%** year-to-date 2025[129](index=129&type=chunk) - Adjusted OIBDA significantly declined by **90.8%** in Q2 2025 and **536.8%** year-to-date 2025, with Adjusted OIBDA margin falling to **1.4%** and **(9.6%)** respectively[129](index=129&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures used by management to assess performance - Adjusted OIBDA and Adjusted OIBDA margin are non-GAAP measures used by management to evaluate operating performance, forecast results, and determine compensation[130](index=130&type=chunk) - Adjusted OIBDA excludes depreciation, amortization, non-cash share-based compensation, workforce reorganization, system optimization, satellite transition costs, and advisor fees related to legal proceedings[130](index=130&type=chunk) | (dollars in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Operating loss | $(12.0) | $(9.3) | $(35.9) | $(32.0) | | Depreciation expense | $1.1 | $1.1 | $2.2 | $2.2 | | Amortization expense | $8.2 | $9.5 | $17.6 | $18.9 | | Share-based compensation costs | $2.9 | $3.5 | $5.6 | $6.1 | | Workforce reorganization costs | $0.3 | $1.4 | $0.3 | $2.9 | | System optimization costs | $0.1 | $— | $0.3 | $— | | Satellite transition costs | $— | $0.3 | $— | $0.3 | | Fees and expenses related to legal proceedings | $0.1 | $1.1 | $1.6 | $3.5 | | Adjusted OIBDA | $0.7 | $7.6 | $(8.3) | $1.9 | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue and expense trends, for the reported periods [Second Quarter of 2025 and Second Quarter of 2024](index=34&type=section&id=Second%20Quarter%20of%202025%20and%20Second%20Quarter%20of%202024) This section provides a comparative analysis of the company's financial results for the second quarters of 2025 and 2024 | Revenue Category (in millions) | Q2 2025 | Q2 2024 | $ Change | % Change | | :----------------------------- | :------ | :------ | :------- | :------- | | National advertising revenue | $41.2 | $41.7 | $(0.5) | (1.2)% | | Local and regional advertising revenue | $6.4 | $9.8 | $(3.4) | (34.7)% | | ESA Party beverage revenue | $4.2 | $3.2 | $1.0 | 31.3% | | Total revenue | $51.8 | $54.7 | $(2.9) | (5.3)% | - National advertising revenue decreased by **1.2%** due to a **28.1%** decrease in CPMs, partially offset by a **12.3%** increase in utilization and **24.2%** increase in network attendance[136](index=136&type=chunk) - Local and regional advertising revenue decreased by **34.7%** due to reduced contract activity in technology, retail, apparel, and automotive sectors, despite an increase in the travel category[137](index=137&type=chunk) | Operating Expense (in millions) | Q2 2025 | Q2 2024 | $ Change | % Change | | :------------------------------ | :------ | :------ | :------- | :------- | | Network operating costs | $3.2 | $3.7 | $(0.5) | (13.5)% | | Theater exhibition fees | $30.9 | $26.7 | $4.2 | 15.7% | | Selling and marketing costs | $9.8 | $9.6 | $0.2 | 2.1% | | Administrative and other costs | $10.6 | $13.4 | $(2.8) | (20.9)% | | Amortization expense | $8.2 | $9.5 | $(1.3) | (13.7)% | - Theater exhibition fees increased by **15.7%** primarily due to a **24.2%** increase in network attendance and contractual rate increases[142](index=142&type=chunk) - Administrative and other costs decreased by **20.9%** due to lower severance expense, reduced legal/professional fees related to Chapter 11, and decreased performance-based and stock-based compensation[144](index=144&type=chunk) [Six months ended June 26, 2025 and June 27, 2024](index=36&type=section&id=Six%20months%20ended%20June%2026,%202025%20and%20June%2027,%202024) This section provides a comparative analysis of the company's financial results for the six months ended June 26, 2025, and June 27, 2024 | Revenue Category (in millions) | YTD 2025 | YTD 2024 | $ Change | % Change | | :----------------------------- | :------- | :------- | :------- | :------- | | National advertising revenue | $68.6 | $71.2 | $(2.6) | (3.7)% | | Local and regional advertising revenue | $11.2 | $15.0 | $(3.8) | (25.3)% | | ESA Party beverage revenue | $6.8 | $5.9 | $0.9 | 15.3% | | Total revenue | $86.6 | $92.1 | $(5.5) | (6.0)% | - National advertising revenue decreased by **3.7%** due to a **16.6%** decrease in CPMs, partially offset by a **3.0%** increase in utilization and **11.3%** increase in network attendance[150](index=150&type=chunk) - Local and regional advertising revenue decreased by **25.3%** due to macroeconomic uncertainty impacting contract activity in technology, retail, apparel, automotive, and government categories[151](index=151&type=chunk) | Operating Expense (in millions) | YTD 2025 | YTD 2024 | $ Change | % Change | | :------------------------------ | :------- | :------- | :------- | :------- | | Network operating costs | $6.2 | $7.3 | $(1.1) | (15.1)% | | Theater exhibition fees | $52.6 | $49.2 | $3.4 | 6.9% | | Selling and marketing costs | $20.4 | $19.6 | $0.8 | 4.1% | | Administrative and other costs | $23.5 | $26.9 | $(3.4) | (12.6)% | | Amortization expense | $17.6 | $18.9 | $(1.3) | (6.9)% | - Non-operating expense decreased by **51.8%** primarily due to a **$7.6 million** decrease in the loss on re-measurement of the payable under the tax receivable agreement and a **$0.6 million** decrease in interest expense[160](index=160&type=chunk) [Known Trends and Uncertainties](index=41&type=section&id=Known%20Trends%20and%20Uncertainties) This section discusses significant trends and uncertainties that may impact the company's future financial performance - ESA Party beverage revenue is subject to long-term contracts with beverage suppliers, with prices increasing at a fixed rate of **2.0%** annually for Cinemark (since 2019) and AMC (beginning 2026)[162](index=162&type=chunk) - Theater exhibition fees, paid to ESA Parties and network affiliates, are based on attendance, revenue share, or per screen fees, with many agreements including annual increases of **2% to 8%**[163](index=163&type=chunk) - The recently enacted H.R. 1 (One Big Beautiful Bill Act) makes permanent **100%** bonus depreciation and domestic research cost expensing, which is anticipated to impact the deferred tax liability, though the Company maintains a full valuation allowance[164](index=164&type=chunk) [Financial Condition and Liquidity](index=41&type=section&id=Financial%20Condition%20and%20Liquidity) This section assesses the company's financial health, including its cash position, debt, and ability to meet short-term and long-term obligations | (in millions) | June 26, 2025 | December 26, 2024 | June 27, 2024 | $ Change YE 2024 to Q2 2025 | $ Change Q2 2024 to Q2 2025 | | :------------ | :------------ | :---------------- | :------------ | :-------------------------- | :-------------------------- | | Cash, cash equivalents and marketable securities | $37.2 | $75.2 | $53.8 | $(38.0) | $(16.6) | | 2025 Credit Facility availability | $44.4 | $— | $— | $44.4 | $44.4 | | Revolving Credit Facility 2023 availability | $— | $44.4 | $44.4 | $(44.4) | $(44.4) | | Total liquidity | $81.6 | $119.6 | $98.2 | $(38.0) | $(16.6) | - Total liquidity decreased by **$38.0 million** from December 26, 2024, to **$81.6 million** as of June 26, 2025, primarily due to a decrease in cash and cash equivalents[169](index=169&type=chunk) - Operating cash flow decreased by **$30.7 million** for the six months ended June 26, 2025, primarily due to lower accounts receivable collections and deferred revenue, and increased TRA payments[173](index=173&type=chunk) - Financing cash flow increased by **$26.3 million** in cash used, driven by the **$10.0 million** repayment of the Revolving Credit Facility 2023, increased stock repurchases (**$9.5 million**), and higher dividend payments (**$5.4 million**)[173](index=173&type=chunk) - NCM LLC's available cash distributions to members were approximately negative **$3.7 million** for the three months ended June 26, 2025, with NCM, Inc. having the option to defer payment[174](index=174&type=chunk) [Critical Accounting Policies](index=44&type=section&id=Critical%20Accounting%20Policies) This section describes the accounting policies that require significant judgment and estimation - No significant changes to critical accounting policies were reported as of June 26, 2025, referring to the Annual Report on Form 10-K for detailed discussion[176](index=176&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) This section discusses the impact of recently issued accounting standards on the company's financial statements - The Company did not adopt any new accounting pronouncements during the three and six months ended June 26, 2025[55](index=55&type=chunk)[177](index=177&type=chunk) - ASU 2024-03, 'Expense Disaggregation Disclosures,' issued in November 2024, is effective for issuances on and after **December 15, 2026**, and is not expected to have a material impact on the Company's financial statements[56](index=56&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily interest rate risk, and its potential impact on financial performance - The primary market risk is interest rate risk, as **100.0%** of potential borrowings under the 2025 Credit Facility bear interest at variable rates[178](index=178&type=chunk) - A **100-basis point** fluctuation in market interest rates would increase or decrease annual cash interest expense by approximately **$0.5 million** if the maximum capacity of **$45.0 million** under the 2025 Credit Facility were drawn[178](index=178&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the Company's disclosure controls and procedures, confirming their effectiveness as of June 26, 2025, and reporting no material changes in internal control over financial reporting during the quarter - Management concluded that the Company's disclosure controls and procedures were effective as of **June 26, 2025**[180](index=180&type=chunk) - No changes to internal control over financial reporting occurred during the quarter ended June 26, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[182](index=182&type=chunk) PART II - OTHER INFORMATION This section provides additional information including legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) This section provides an update on legal proceedings, specifically the appeals related to NCM LLC's bankruptcy emergence and agreements with Regal, noting the dismissal of AMC's claims and the affirmation of prior court judgments - AMC dismissed its appeals against NCM LLC related to the Confirmation Order and Regal Order on **April 17, 2025**, in connection with the 2025 AMC Agreement[184](index=184&type=chunk) - The Fifth Circuit Court of Appeals affirmed the Bankruptcy Court's and District Court's judgments on **June 10, 2025**, regarding NCM LLC's Plan and Regal Advertising Agreement[184](index=184&type=chunk) - The Company is not aware of any other pending litigation that would have a material adverse effect on its operating results or financial condition[185](index=185&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - No material changes from risk factors previously disclosed in the Annual Report on Form 10-K filed on **March 6, 2025**, for the fiscal year ended **December 26, 2024**[186](index=186&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's share repurchase activities under its approved program during the quarter ended June 26, 2025 | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs ($ in millions) | | :-------------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :-------------------------------------------------------------------------------------------------------------------------- | | March 28, 2025 through April 24, 2025 | 910,568 | $5.88 | 823,598 | $73.1 | | April 25, 2025 through May 22, 2025 | 668,303 | $4.50 | 668,303 | $69.7 | | May 23, 2025 through June 26, 2025 | 304,825 | $5.07 | 304,825 | $68.1 | | Total for the quarter ended June 26, 2025 | 1,883,696 | $5.48 | 1,796,726 | $68.1 | - The Company repurchased **1,883,696 shares** of common stock at an average price of **$5.48 per share** during the quarter ended June 26, 2025[188](index=188&type=chunk) - As of June 26, 2025, **$68.1 million** remained authorized for repurchases under the **$100.0 million** stock repurchase program approved on **March 18, 2024**[188](index=188&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities were reported[189](index=189&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Mine Safety Disclosures are not applicable to the Company[190](index=190&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by certain officers and directors during the quarter ended June 26, 2025 - Maria V. Woods, EVP - General Counsel and Secretary, adopted a Rule 10b5-1 Plan on **May 15, 2025**, to sell up to **59,865 shares**[193](index=193&type=chunk) - Catherine Sullivan, President - Sales, Marketing & Partnerships, adopted a Rule 10b5-1 Plan on **May 22, 2025**, to sell up to **53,030 shares**[194](index=194&type=chunk) - Thomas F. Lesinski, CEO, adopted a Rule 10b5-1 Plan on **June 25, 2025**, to sell up to **30,971 shares**[195](index=195&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including key agreements and certifications | Exhibit | Description | | :------ | :---------------------------------------------------------------------------------------------------------- | | 10.1 | Second Amended and Restated Exhibitor Services Agreement, dated April 17, 2025, between National CineMedia, LLC, American Multi-Cinema, Inc., Muvico, LLC, and the other parties thereto | | 10.2 | Joint Venture Termination and Settlement Agreement, dated April 17, 2025, between American Multi-Cinema, Inc., National CineMedia, LLC, and National CineMedia, Inc. | | 31.1 | Rule 13a-14(a) Certification of Chief Executive Officer. | | 31.2 | Rule 13a-14(a) Certification of Chief Financial Officer. | | 32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | | 32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | [Signatures](index=48&type=section&id=Signatures) This section contains the signatures of the Company's Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Thomas F. Lesinski, Chief Executive Officer, and Ronnie Y. Ng, Chief Financial Officer, on **August 5, 2025**[200](index=200&type=chunk)

[Company Announcement & Overview](index=1&type=section&id=Company%20Announcement%20%26%20Overview) National CineMedia reported a Q2 2025 revenue and Adjusted OIBDA decline, with CEO optimism for a stronger second half, Q3 outlook, and a declared dividend [Q2 2025 Results Summary](index=1&type=section&id=Q2%202025%20Results%20Summary) National CineMedia reported a decrease in Q2 2025 total revenue by 5.3% to $51.8 million, with operating loss increasing to $12.0 million and net loss per diluted share at $0.11, while Adjusted OIBDA also decreased significantly to $0.7 million from $7.6 million in Q2 2024 Q2 2025 Key Financial Highlights (Unaudited, $ in millions) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Total Revenue | 51.8 | 54.7 | -5.3% | | Operating Loss | (12.0) | (9.3) | +29.0% | | Net Loss per Diluted Share | (0.11) | (0.09) | +22.2% | | Adjusted OIBDA | 0.7 | 7.6 | -90.8% | - Total revenue for the six months ended June 26, 2025, decreased **6.0%** to **$86.6 million** compared to **$92.1 million** for the same period in 2024[4](index=4&type=chunk) - Adjusted OIBDA for the six months ended June 26, 2025, decreased to **negative $8.3 million** from **positive $1.9 million** for the same period in 2024[4](index=4&type=chunk) [CEO Commentary & Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) CEO Tom Lesinski acknowledged a challenging Q2 but expressed optimism for a stronger second half of 2025, driven by renewed industry momentum from a strong summer box office, upcoming tentpole releases, and growing advertiser confidence, with the company remaining focused on its long-term strategy for sustainable, profitable growth - CEO notes challenging economic and advertising environment in Q2 but is encouraged by **third-quarter sales commitments pacing ahead of last year's levels**[2](index=2&type=chunk) - Optimistic about a **stronger second half of the year**, driven by a strong summer box office, compelling slate of upcoming tentpole releases, and growing advertiser confidence[2](index=2&type=chunk) - Company remains focused on executing its **long-term strategy** to drive sustainable, profitable growth[2](index=2&type=chunk) [Q3 2025 Outlook](index=2&type=section&id=Q3%202025%20Outlook) For the third quarter of 2025, NCM LLC anticipates total revenue between $62.0 million and $67.0 million, and Adjusted OIBDA in the range of $7.5 million to $11.5 million Q3 2025 Financial Outlook (Unaudited, $ in millions) | Metric | Q3 2025 Outlook | | :---------------- | :-------------------- | | Total Revenue | $62.0 - $67.0 | | Adjusted OIBDA | $7.5 - $11.5 | [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) On August 5, 2025, the Company declared a quarterly cash dividend of $0.03 per share, payable on August 29, 2025, to stockholders of record on August 15, 2025 - Declared a cash dividend of **$0.03 per share** (approximately **$2.8 million**) on common stock[5](index=5&type=chunk) - Dividend payable on **August 29, 2025**, to stockholders of record on **August 15, 2025**[5](index=5&type=chunk) [Detailed Financial Statements (GAAP)](index=5&type=section&id=Detailed%20Financial%20Statements%20%28GAAP%29) Presents unaudited condensed consolidated statements of income and selected balance sheet data, detailing financial performance and position [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Presents the unaudited consolidated statements of income for the three and six months ended June 26, 2025, and June 27, 2024, showing detailed revenue, operating expenses, and net loss figures Condensed Consolidated Statements of Income (Unaudited, $ in millions, except per share data) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $51.8 | $54.7 | $86.6 | $92.1 | | OPERATING EXPENSES: | | | | | | Network operating costs | 3.2 | 3.7 | 6.2 | 7.3 | | Theater exhibition fees | 30.9 | 26.7 | 52.6 | 49.2 | | Selling and marketing costs | 9.8 | 9.6 | 20.4 | 19.6 | | Administrative and other costs | 10.6 | 13.4 | 23.5 | 26.9 | | Depreciation expense | 1.1 | 1.1 | 2.2 | 2.2 | | Amortization expense | 8.2 | 9.5 | 17.6 | 18.9 | | Total Operating Expenses | 63.8 | 64.0 | 122.5 | 124.1 | | OPERATING LOSS | (12.0) | (9.3) | (35.9) | (32.0) | | CONSOLIDATED NET LOSS | (10.7) | (8.7) | (41.4) | (43.4) | | NET LOSS ATTRIBUTABLE TO NCM, INC. | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | NET LOSS PER NCM, INC. COMMON SHARE Basic | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | NET LOSS PER NCM, INC. COMMON SHARE Diluted | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | WEIGHTED AVERAGE SHARES OUTSTANDING: Basic | 93,978,031 | 96,409,830 | 94,681,546 | 96,664,241 | | WEIGHTED AVERAGE SHARES OUTSTANDING: Diluted | 93,978,031 | 96,409,830 | 94,681,546 | 96,664,241 | [Selected Condensed Balance Sheet Data](index=5&type=section&id=Selected%20Condensed%20Balance%20Sheet%20Data) Presents selected unaudited condensed balance sheet data as of June 26, 2025, and December 26, 2024, highlighting key asset, liability, and equity figures Selected Condensed Balance Sheet Data (Unaudited, $ in millions) | Metric | As of June 26, 2025 | As of December 26, 2024 | | :------------------------------------------ | :------------------ | :---------------------- | | Cash, cash equivalents, marketable securities and restricted cash | $40.3 | $78.2 | | Receivables, net | $57.1 | $85.3 | | Property and equipment, net | $16.7 | $16.4 | | Total assets | $462.0 | $568.6 | | Borrowings, gross | $— | $10.0 | | Total equity | $350.0 | $411.2 | | Total liabilities and equity | $462.0 | $568.6 | [Operating Data](index=6&type=section&id=Operating%20Data) Presents key operational metrics, including network and attendance data, along with detailed revenue breakout and per attendee metrics [Network and Attendance Metrics](index=6&type=section&id=Network%20and%20Attendance%20Metrics) Provides key operational metrics including total screens, ESA Party screens, total attendance, and capital expenditures for the three and six months ended June 26, 2025, and June 27, 2024 Operating Data (Unaudited) | Metric | June 26, 2025 | June 27, 2024 | | :------------------------------------ | :------------ | :------------ | | Total Screens (100% Digital) at Period End | 17,832 | 18,279 | | ESA Party Screens at Period End | 9,413 | 9,552 | | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Attendance for Period (in millions) | 115.3 | 92.8 | 187.7 | 168.6 | | ESA Party Attendance for Period (in millions) | 72.2 | 57.6 | 118.6 | 104.7 | | Capital Expenditures (in millions) | $2.0 | $1.0 | $2.9 | $2.3 | [Revenue Breakout and Per Attendee Data](index=6&type=section&id=Revenue%20Breakout%20and%20Per%20Attendee%20Data) Details revenue segmentation into national, local/regional, and beverage concessionaire agreements, along with corresponding revenue per attendee metrics Revenue Breakout (Unaudited, $ in millions) | Revenue Type | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | National advertising revenue | $41.2 | $41.7 | $68.6 | $71.2 | | Local and regional advertising revenue | $6.4 | $9.8 | $11.2 | $15.0 | | ESA Party advertising revenue from beverage concessionaire agreements | $4.2 | $3.2 | $6.8 | $5.9 | | Total revenue | $51.8 | $54.7 | $86.6 | $92.1 | Per Attendee Data (Unaudited) | Per Attendee Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | National advertising revenue per attendee | $0.357 | $0.449 | $0.365 | $0.422 | | Local and regional advertising revenue per attendee | $0.056 | $0.106 | $0.060 | $0.089 | | Total advertising revenue (excluding beverage) per attendee | $0.413 | $0.555 | $0.425 | $0.511 | | Total revenue per attendee | $0.449 | $0.589 | $0.461 | $0.546 | | Total attendance (in millions) | 115.3 | 92.8 | 187.7 | 168.6 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Defines and reconciles non-GAAP financial measures, including Adjusted OIBDA, Adjusted Net Loss, and Adjusted Loss Per Share, from their GAAP equivalents [Adjusted OIBDA Definition and Reconciliation](index=4&type=section&id=Adjusted%20OIBDA%20Definition%20and%20Reconciliation) Provides the definition of Adjusted OIBDA, its purpose for management and investors, limitations, and a detailed reconciliation from operating loss for the reported periods - Adjusted OIBDA is a non-GAAP measure representing operating income before depreciation and amortization, adjusted to also exclude non-cash share-based payment costs, workforce reorganization costs, system optimization costs, satellite transition costs, and advisor fees related to the Cineworld proceeding and Chapter 11 case[26](index=26&type=chunk) - Management uses Adjusted OIBDA to evaluate operating performance, forecast future results, and as a basis for compensation, believing it highlights trends in core business by eliminating less relevant items[26](index=26&type=chunk)[27](index=27&type=chunk) Reconciliation of Operating Loss to Adjusted OIBDA (Unaudited, $ in millions) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating loss | $(12.0) | $(9.3) | $(35.9) | $(32.0) | | Depreciation expense | 1.1 | 1.1 | 2.2 | 2.2 | | Amortization expense | 8.2 | 9.5 | 17.6 | 18.9 | | Share-based compensation costs | 2.9 | 3.5 | 5.6 | 6.1 | | Workforce reorganization costs | 0.3 | 1.4 | 0.3 | 2.9 | | System optimization costs | 0.1 | — | 0.3 | — | | Satellite transition costs | — | 0.3 | — | 0.3 | | Fees and expenses related to Cineworld proceeding and Chapter 11 case | 0.1 | 1.1 | 1.6 | 3.5 | | Adjusted OIBDA | $0.7 | $7.6 | $(8.3) | $1.9 | | Adjusted OIBDA margin | 1.4% | 13.9% | (9.6)% | 2.1% | [Adjusted Net Loss and Loss Per Share Definition and Reconciliation](index=8&type=section&id=Adjusted%20Net%20Loss%20and%20Loss%20Per%20Share%20Definition%20and%20Reconciliation) Defines Adjusted net loss and loss per share as non-GAAP measures, explaining their exclusion of specific non-recurring costs and their reconciliation from GAAP net loss and loss per share - Adjusted net loss and loss per share are non-GAAP measures that exclude workforce reorganization costs, system optimization costs, satellite transition costs, advisor fees related to the Cineworld proceeding and Chapter 11 case, and loss on re-measurement of the payable under the tax receivable agreement[32](index=32&type=chunk) - Management uses these measures as an additional tool to evaluate operating performance, highlighting trends in the core business by eliminating items with less bearing on performance[32](index=32&type=chunk) Reconciliation of Net Loss and Loss Per Share to Adjusted Net Loss and Loss Per Share (Unaudited, $ in millions, except per share data) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss as reported | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | Workforce reorganization costs | 0.3 | 1.4 | 0.3 | 2.9 | | System optimization costs | 0.1 | — | 0.3 | — | | Satellite transitions costs | — | 0.3 | — | 0.3 | | Fees and expenses related to the Cineworld proceeding and Chapter 11 case | 0.1 | 1.1 | 1.6 | 3.5 | | (Gain) loss on re-measurement of the payable under the tax receivable agreement | (0.8) | — | 4.6 | 12.2 | | Net effect of adjusting items | $(0.3) | $2.8 | $6.8 | $18.9 | | Net loss excluding adjusting items | $(11.0) | $(5.9) | $(34.6) | $(24.5) | | Diluted loss per share as reported | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | Net effect of adjusting items (per share) | 0.00 | 0.03 | 0.07 | 0.20 | | Diluted loss per share excluding adjusting items | $(0.11) | $(0.06) | $(0.37) | $(0.25) | [Additional Information](index=2&type=section&id=Additional%20Information) Provides conference call details, an overview of National CineMedia, cautionary forward-looking statements, and investor and media contact information [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Information regarding the conference call and audio webcast for investors and analysts on August 5, 2025, including access details and replay availability - Company to host a conference call and audio webcast on **August 5, 2025**, at **5:00 P.M. Eastern Time**[7](index=7&type=chunk) - Live call access via dialing **1-844-826-3033 (US)** or **1-412-317-5185 (International)**, with webcast available at **www.ncm.com** under Investor Relations[7](index=7&type=chunk) - Replay of the conference call will be available until **midnight Eastern Time, August 19, 2025**[8](index=8&type=chunk) [About National CineMedia, Inc.](index=2&type=section&id=About%20National%20CineMedia%2C%20Inc.) National CineMedia, Inc. is the largest cinema advertising platform in the U.S., connecting brands with young, diverse audiences across over 17,500 screens in 1,350+ theaters, including major national chains - National CineMedia, Inc. (NCM) is the **largest cinema advertising platform in the U.S.**[9](index=9&type=chunk) - Connects brands to sought-after young, diverse audiences through movies and pop culture, offering a **premium video, full-funnel marketing solution**[9](index=9&type=chunk) - NCM's Noovie® Show is presented exclusively in **42 leading national and regional theater circuits**, including AMC, Cinemark, and Regal, across more than **17,500 screens** in over **1,350 theaters** in **184 Designated Market Areas®**[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, highlighting various risks and uncertainties that could cause actual results to differ materially from expectations, such as theater attendance, film availability, competition, economic conditions, and regulatory changes - This press release contains **forward-looking statements** reflecting management's current expectations or beliefs regarding future events, including anticipated future financial performance[10](index=10&type=chunk) - Investors are cautioned that reliance on these statements involves **risks and uncertainties**, and actual results could differ materially due to factors like theater attendance, film availability, competition, economic conditions, and regulatory changes[10](index=10&type=chunk) - The Company undertakes **no obligation to update** any forward-looking statement, except as required by law[11](index=11&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) Provides contact information for investor relations and media inquiries Investor and Media Contacts | Role | Contact Person | Email | | :---------- | :------------- | :------------ | | INVESTOR | Chan Park | investors@ncm.com | | MEDIA | Doug Serton | press@ncm.com |

Core Viewpoint - National CineMedia (NCMI) is expected to report a year-over-year decline in earnings despite higher revenues for the quarter ended June 2025, with a consensus outlook indicating a loss of $0.10 per share, reflecting an 11.1% decrease from the previous year, while revenues are projected to be $56.37 million, up 3.1% year-over-year [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on August 5, and the stock price may increase if the actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 13.33% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [8][10]. - For National CineMedia, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.00%, combined with a Zacks Rank of 5, making it difficult to predict an earnings beat [12]. Historical Performance - In the last reported quarter, National CineMedia was expected to post a loss of $0.20 per share but actually reported a loss of $0.24, resulting in a surprise of -20.00% [13]. - Over the last four quarters, the company has only beaten consensus EPS estimates once [14]. Industry Comparison - Stagwell (STGW), another player in the advertising and marketing industry, is expected to report earnings per share of $0.18 for the same quarter, reflecting a year-over-year increase of 28.6%, with revenues projected at $697.25 million, up 3.9% [18][19]. - Stagwell's consensus EPS estimate has remained unchanged over the last 30 days, but it has an Earnings ESP of -14.29%, indicating challenges in predicting an earnings beat [20].

NCM's Advertising Platform & Reach - NCM is positioned as an effective brand and performance marketing platform in the media landscape[9] - NCM delivers a world-class advertising experience for moviegoers, reaching young, diverse audiences[10] - NCM is the largest cinema advertising platform in the US, offering unmatched scale and reach[13] - NCM's share of US cinema attendance viewing ads includes 73% in the top 25 DMAs and 71% in the top 10 DMAs[14] - NCM reaches an incremental 4.7 million A18-49 moviegoers in 2024 YTD[18] Advertising Solutions & Innovation - NCM offers a 360° advertising ecosystem, delivering premium video and digital marketing opportunities, including on-screen, lobby, and retargeting advertising[27, 30, 31] - NCM's top 25 market presence drives national brand success, with 4X the local sales coverage of peers[32, 35] - NCM's Platinum offering experiences sequential year-over-year growth each quarter, with 87% ad recall and 78% ad held my attention[39, 40] - NCM's self-serve and programmatic offerings unlock new demand channels, making cinema more accessible to advertisers[41] Financial Performance & Outlook - NCM launched a $100 million share repurchase program in March 2024[67] - Since launch of the repurchase program, NCM has repurchased 2.1 million shares, representing 2.2% of shares outstanding, for $9.8 million[68]

Company Transformation & Financial Restructuring - NCM eliminated $1.1 billion of debt and secured approximately $55 million of new capital through financial restructuring[31, 210] - The company reduced SG&A annual cost savings by 25% through streamlined business units and increased productivity[209] - NCM optimized its leverage ratio to zero funded debt and reduced annual interest expense by $1 million[69, 211] Financial Performance & Outlook - Total revenue for 2024 was $241 million, with Adjusted OIBDA of $46 million and Unlevered FCF of $58 million[66, 67] - The company is targeting a return to a pre-pandemic Adjusted OIBDA to Free Cash Flow conversion rate of +70-80%[231] - NCM plans to utilize $11.5 million of Unlevered Free Cash Flow in 2025 for a dividend of $0.12 per share annually[239] - Q1 2025 revenue guidance is $34.0 million - $36.0 million, with Adjusted OIBDA of $(9.5) million - $(7.5) million[245] Market Position & Growth Strategy - NCM has long-term contracts with the largest U S exhibitors, holding a 26% affiliate exhibitor market share[43, 44] - The company reaches over 400 million audience members, capturing over 70% of the opening weekend box office share[50] - NCM moviegoers spend $45 billion annually on travel[153]

Financial Performance - 1Q'25 revenue reached $34.9 million, falling within the guidance range of $34.0 million to $36.0 million[16, 18] - Total revenue decreased by 7% primarily due to lower attendance[16] - Adjusted OIBDA for 1Q'25 was $(9.0) million, within the guidance range of $(9.5) million to $(7.5) million[16, 18] - Adjusted OIBDA decreased by $3.3 million year-over-year due to lower revenue and slightly higher adjusted operating expenses[16] - Adjusted operating expenses increased by 2%, reaching $43.9 million in 1Q'25 compared to $43.1 million in 1Q'24[16] Strategic Initiatives - NCM entered into a revised agreement with AMC, extending the term by five years through 2042[16] - The revised agreement with AMC includes an improved advertising show structure and modernized lobby advertising[16] - NCM and AMC agreed to terminate the joint venture agreements and dismiss ongoing litigation[16] Capital Allocation - NCM repurchased 2.3 million shares YTD through April 2025 at an average price of $6.06 per share, totaling approximately $14 million[16] - Since the launch of the share repurchase program, NCM has repurchased 4.8 million shares at an average price of $5.60 per share, totaling approximately $27 million[16] - A quarterly dividend of $0.03 per share was announced on May 6, 2025, amounting to $2.8 million[16]