Like sitting through 25 minutes of ads and movie trailers before getting to the featured attraction, investors had to wait to see if AMC Entertainment (NYSE: AMC) could earn rave reviews this earnings season. The country's leading multiplex operator kicked off this week by announcing its fourth-quarter results. As the owner of one of the ugliest stock charts in recent years, you might think the expectations would be low. Shares of AMC have declined sharply for four consecutive years, tumbling 85%, 85%, 3 ...

Core Viewpoint - Exhibitors are cautious about Netflix's recent commitments to traditional theatrical release windows, expressing a need for more concrete actions rather than just verbal assurances [1][2]. Group 1: Netflix's Position on Theatrical Releases - Netflix has shifted its stance towards embracing theatrical releases, particularly in light of its acquisition of Warner Bros. Discovery's studios and streaming division [4]. - The company's Co-CEO previously described theaters as "outmoded," leading to skepticism among exhibitors regarding its current commitments [2]. - Cinemark's CEO highlighted the need for clarity on Netflix's 45-day window for Warner Bros. releases, questioning what this timeframe entails in terms of distribution [5][6]. Group 2: Cinemark's Financial Performance - Cinemark reported earnings of 16 cents per share for the October-to-December quarter, a decline from 33 cents in the same period the previous year, and below Wall Street's expectation of 24 cents [3]. - Revenue for Cinemark fell by 5% year-over-year, totaling $776.3 million, which was still above analysts' estimates [3]. Group 3: Industry Dynamics and Future Outlook - Cinemark's CEO expressed optimism that Netflix would eventually recognize the value of theatrical exhibition, similar to other companies like Amazon and Apple [8]. - The ongoing negotiations between Paramount and Warner Bros. Discovery are described as "active and fluid," with Cinemark aiming for sustained exclusive theatrical windows [8]. - The CEO emphasized the importance of continued investment and marketing support from studios to ensure the viability of theatrical releases [7].

Financial Data and Key Metrics Changes - The company achieved a post-pandemic high in worldwide revenue of $3.1 billion in 2025, with adjusted EBITDA of $578 million and an adjusted EBITDA margin of 18.6% [5][7] - Over the past three years, the company generated nearly $1.8 billion of adjusted EBITDA and over $1.3 billion of operating cash flow [6][7] Business Line Data and Key Metrics Changes - The company reported an increase in customer loyalty and expanded market share, with concession revenues and per caps reaching all-time highs [7] - Domestic per caps increased by 5% year-over-year, driven by strategic pricing actions, higher incidence rates, and a shift in product mix [31][32] Market Data and Key Metrics Changes - International attendance fell in 2025, but the company is optimistic about a better balance in 2026, with a stronger film slate expected to resonate with Latin audiences [41][42] - The company noted that attendance in certain regions, such as Argentina, has recovered to pre-pandemic levels despite economic challenges [43] Company Strategy and Development Direction - The company is focused on expanding its audience, activating new revenue sources, optimizing operations, and improving processes [5][8] - Plans for new builds are underway, with projects in El Paso, Greenville, and Omaha, indicating a reactivation of real estate efforts [14][15][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the softer film slate in 2025 but attributed it to normal industry fluctuations rather than structural issues [20][22] - The company remains optimistic about 2026, expecting a robust lineup of films and sustained consumer enthusiasm for cinematic experiences [8][9] Other Important Information - The company extinguished over $700 million of COVID-related debt and reinvested over $500 million in capital expenditures while returning $315 million to shareholders through dividends and share buybacks [7] - Management emphasized the importance of maintaining a disciplined approach to capital allocation, balancing organic growth with potential M&A opportunities [72][73] Q&A Session Summary Question: How many theaters have two XD screens and plans for more? - Approximately 10% of the domestic circuit has two XD screens, with plans to roll out additional screens over the next few years [11][12] Question: Updates on new build activity in the U.S. or Latin America? - New build efforts were reactivated, with projects in El Paso, Greenville, and Omaha planned for 2026 and 2027 [14][15] Question: Factors driving the softer film slate in 2025? - The softness was attributed to a mixed bag of film performance rather than structural issues, with no major blockbusters exceeding $500 million [20][22] Question: Expectations for operating leverage and margin expansion? - A stronger box office and higher attendance are expected to support margin expansion, with various factors influencing margins [24][25] Question: Strategies driving success in concessions? - Domestic per caps increased due to strategic pricing, higher incidence rates, and a shift in product mix, with ongoing initiatives to drive growth [31][32] Question: International attendance outlook for 2026? - Optimism for a better film slate in Latin America, with expectations for attendance to exceed U.S. levels [41][42] Question: Updates on loyalty programs and membership growth? - Continued growth in loyalty programs, with enhancements to keep the offerings attractive for retention and new members [44][45] Question: Impact of AI on the business? - AI is seen as a tool for driving efficiencies and supporting revenue growth, with potential applications in pricing optimization and content creation [90][92] Question: Thoughts on the Warner Bros. acquisition and Netflix's role? - The company remains optimistic about Netflix recognizing the value of theatrical exhibition, with a 45-day window seen as a good target [96][98]

Financial Data and Key Metrics Changes - The company achieved a post-pandemic high in worldwide revenue of $3.1 billion in 2025, with adjusted EBITDA of $578 million and an adjusted EBITDA margin of 18.6% [5][7] - Over the past three years, the company generated nearly $1.8 billion of adjusted EBITDA and over $1.3 billion of operating cash flow [6][7] - The company extinguished over $700 million of COVID-related debt and reinvested over $500 million in capital expenditures [7] Business Line Data and Key Metrics Changes - The company reported a 5% year-over-year increase in domestic per caps, driven by strategic pricing actions, higher incidence rates, and a shift in product mix [31] - Premium formats, including XD, represent about 15% of overall box office, with 10% of the domestic circuit having two XD screens [11][12] Market Data and Key Metrics Changes - International attendance fell in 2025, but the company is optimistic about a better balance in 2026, with a stronger film slate expected to resonate with Latin audiences [40][42] - The company noted that attendance in regions like Argentina has recovered exceptionally well, nearing pre-pandemic levels despite economic challenges [43] Company Strategy and Development Direction - The company is focused on expanding market share, optimizing operations, and enhancing guest experiences through strategic initiatives [8][9] - Plans for 2026 include a robust lineup of films and a focus on navigating the evolving media and entertainment landscape [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the softer film slate in 2025 but attributed it to normal industry fluctuations rather than structural issues [20][22] - The company expects stronger box office performance and higher attendance in 2026, supporting margin expansion [25][26] Other Important Information - The company is actively exploring new build opportunities, with plans for new sites in El Paso, Greenville, and Omaha [14][15] - Management emphasized the importance of alternative content, which has grown to represent over 10% of box office revenue [87] Q&A Session Summary Question: How many theaters have two XD screens and plans for more? - Approximately 10% of the domestic circuit has two XD screens, with plans to roll out additional screens in the coming years [11][12] Question: Update on new build activity? - New build efforts were reactivated post-pandemic, with several projects in motion, including new sites in El Paso and Greenville [14][15] Question: Factors driving softer box office in 2025? - The year lacked a mega blockbuster and had a mixed film slate, which affected overall performance [20][22] Question: Expectations for operating leverage and margins? - Anticipated stronger box office and attendance are expected to support margin expansion [25][26] Question: Strategies driving success in concessions? - Domestic per caps increased by 5%, driven by strategic pricing, higher incidence rates, and a shift in product mix [31] Question: International attendance outlook for 2026? - Optimism for a better film slate in Latin America, with attendance expected to recover [40][42] Question: Thoughts on AI's impact on the business? - AI presents opportunities for efficiencies and revenue growth, with potential applications in pricing optimization and content creation [92][94] Question: Update on Warner Bros. acquisition discussions? - Ongoing conversations with Warner Bros. remain fluid, with a focus on ensuring outcomes beneficial to the industry [76][78]

Financial Data and Key Metrics Changes - Cinemark achieved a post-pandemic high in worldwide revenue of $3.1 billion in 2025, with adjusted EBITDA of $578 million and an adjusted EBITDA margin of 18.6% [4][5] - The company generated nearly $1.8 billion of adjusted EBITDA over the past three years, with over $1.3 billion in operating cash flow [5] Business Line Data and Key Metrics Changes - Concession revenues and per caps reached all-time highs, with domestic per caps up 5% year-over-year, driven by strategic pricing actions, higher incidence rates, and a shift in product mix [29][30] - Premium formats, including XD screens, represent about 15% of overall box office, with plans to expand the number of theaters featuring multiple XD screens [9][10] Market Data and Key Metrics Changes - International attendance fell in 2025, but there is optimism for 2026 with a stronger film slate expected to resonate better with Latin audiences [39][40] - The company noted that attendance in regions like Argentina has recovered exceptionally well, nearing pre-pandemic levels despite economic challenges [41] Company Strategy and Development Direction - Cinemark is focused on expanding market share, optimizing operations, and enhancing guest experiences through strategic initiatives [6] - The company plans to continue investing in capital expenditures, with over $500 million reinvested for future growth and $315 million returned to shareholders through dividends and share buybacks [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming film slate for 2026, anticipating a robust lineup that could reach pre-pandemic levels [6][7] - The company is optimistic about sustaining consumer enthusiasm for cinematic experiences and creating incremental value for stakeholders [6][7] Other Important Information - The company has extinguished over $700 million of COVID-related debt and is focused on maintaining a strong balance sheet [5] - Management highlighted the importance of alternative content, which has grown to represent over 10% of box office revenue, indicating a successful strategy in diversifying offerings [83] Q&A Session Summary Question: How many theaters have two XD screens and plans for expansion? - Approximately 10% of the domestic circuit has two XD screens, with plans to roll out additional screens in the coming years [9][10] Question: What factors contributed to the softer film slate in 2025? - The softness was attributed to a mixed bag of film performances and the absence of a major blockbuster, rather than structural issues [17][19] Question: What is the outlook for operating leverage and margins in 2026? - A stronger box office and higher attendance are expected to support margin expansion, with various factors influencing overall margins [21][22] Question: What strategies drove success in concession revenue growth? - Key drivers included strategic pricing, higher incidence rates, and a shift in product mix, with expectations for continued growth in 2026 [29][30] Question: What is the company's approach to new builds and market expansion? - New builds are primarily focused on under-penetrated markets, with ongoing opportunities for enhancing existing theaters [58][59] Question: How does the company view the competitive landscape moving into 2026? - Competition is expected to grow, but the company is confident in its ability to maintain and potentially increase market share through various initiatives [101][102]

Core Viewpoint - Cinemark Holdings reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.24 per share, and showing a decline from $0.33 per share a year ago, indicating an earnings surprise of -33.33% [1] Group 1: Earnings Performance - The company has not surpassed consensus EPS estimates over the last four quarters [2] - Cinemark's revenues for the quarter ended December 2025 were $776.3 million, exceeding the Zacks Consensus Estimate by 0.83%, but down from $814.3 million year-over-year [2] - The company has topped consensus revenue estimates three times in the last four quarters [2] Group 2: Stock Performance and Outlook - Cinemark shares have increased by approximately 9.1% since the beginning of the year, contrasting with the S&P 500's zero return [3] - The future stock price movement will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $589.91 million, and for the current fiscal year, it is $2.07 on revenues of $3.38 billion [7] Group 3: Industry Context - The Film and Television Production and Distribution industry, to which Cinemark belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and earnings estimate revisions, which could impact Cinemark's stock performance [5]

Investor Presentation February 18, 2026 Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS PURSUANT TO THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains, and our officers and representatives may from time to time make, "forward–looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The "forward looking statements" can be identified by words such as "may," "should," "co ...

Theater Operations - As of December 31, 2025, the company operated 496 theaters and 5,637 screens across the U.S. and Latin America, with 303 theaters and 4,241 screens in the U.S. and 193 theaters and 1,396 screens in Latin America[22]. - The company maintains a leading market share in 21 of its top 25 U.S. markets, including major cities like Dallas and San Francisco[43]. - The company is the largest exhibitor in Brazil and Argentina, with a significant presence in 15 of the 20 largest metropolitan areas in Latin America[44]. - Total venues across the U.S. and Latin America amount to 496, with 5,637 total screens[60]. - The company operated 193 theaters with 1,396 screens in 13 countries in Latin America as of December 31, 2025, with Brazil representing approximately 6.8% of consolidated revenue[110]. Financial Performance - Total revenue for 2023 was $3,066.7 million, with a projected increase to $3,115.0 million in 2025, reflecting a growth of 1.6%[199]. - Admissions revenue for 2023 was $1,555.6 million, with a slight decrease to $1,544.7 million projected for 2025, indicating a decline of 0.8%[199]. - Concession revenue increased from $1,192.0 million in 2023 to $1,227.2 million in 2025, representing a growth of 3.0%[199]. - Operating income for 2023 was $362.9 million, with a forecasted decrease to $333.2 million in 2025, a decline of 8.2%[199]. - Other revenue increased by 4.2% to $343.1 million in 2025 compared to $329.2 million in 2024, primarily due to higher gaming revenue and promotional income[206]. Market Trends - North American industry box office revenues were approximately $8.9 billion for 2025, with leading films including A Minecraft Movie and Jurassic World: Rebirth[25]. - Latin American industry box office revenues were approximately $1.2 billion for 2025, influenced by the quality and timing of Hollywood films[27]. - The company anticipates that the volume of new theatrical content has improved but has not returned to historical levels, which could materially impact business operations[102]. - The company faces intense competition for patrons and films, with competition from local, regional, national, and international exhibitors[108]. Customer Engagement - Over 27 million members participate in the company's global loyalty programs, contributing approximately 30% of domestic box office revenue from nearly 1.5 million paid Movie Club subscription members[49]. - The domestic subscription membership program, Movie Club, offers various benefits including ticket credits and concession discounts, enhancing customer loyalty[77]. - The company has introduced a free loyalty program in domestic theaters and select international locations, offering food and beverage promotions[63]. Operational Strategies - The company focuses on maximizing attendance and box office results through pricing strategies and omni-channel marketing platforms[33]. - Concession sales represent the second largest revenue source, with ongoing strategies to enhance product offerings and adapt to customer preferences[61]. - The proprietary mobile concession ordering capability is available at all U.S. theaters, allowing guests to pre-order snacks for pickup or delivery[64]. Employee and Labor Considerations - The company has approximately 18,300 employees in the U.S., with 21% being full-time and 79% part-time[89]. - The company is subject to risks related to labor market conditions, which may affect its ability to hire and retain employees[111]. - Increased labor and benefits costs due to rising minimum wage rates and labor market conditions may lead to higher operational costs[127]. Financial Obligations and Risks - As of December 31, 2025, the company had $1,897.3 million in long-term debt obligations, $110.2 million in finance lease obligations, and $1,006.0 million in operating lease obligations[116]. - The company currently has primarily non-investment grade ratings, which could lead to increased borrowing costs and difficulties in obtaining additional debt financing[121]. - A credit market crisis may adversely affect the company's ability to raise capital and could materially impact operations, limiting acquisitions and investments in technology innovations[122]. - The company’s ability to generate positive cash flows is subject to various economic, financial, and regulatory factors, which may restrict its ability to fund operations[117]. Regulatory and Compliance Issues - The company is subject to various government regulations that could result in substantial costs and impact business operations[125]. - The company faces risks related to data protection and privacy regulations, which could impose compliance burdens and legal risks[126]. - Legislative initiatives related to climate change may lead to increased operating costs and compliance requirements for the company[134]. Asset Management - Long-lived assets are evaluated for impairment quarterly, with a full quantitative evaluation performed annually, considering factors such as actual cash flows and competitive changes in the marketplace[185]. - Goodwill is evaluated for impairment annually, with a quantitative assessment comparing fair value to carrying value, using both market and income approaches[188]. - Tradename intangible assets are tested for impairment at least annually, with a quantitative assessment comparing carrying values to estimated fair values based on market royalty rates[189]. Investment and Shareholder Returns - During the year ended December 31, 2025, the company paid cash dividends totaling approximately $653.2 million to fund various financial obligations, including shareholder dividends and share repurchases[155]. - The company declared a quarterly cash dividend of $0.09 per share on February 17, 2026, payable on March 17, 2026[175]. - The company repurchased a total of 3,152.20 thousand shares of common stock in the fourth quarter of 2025, with an approximate dollar value of shares that may yet be purchased under publicly announced plans totaling $225.0 million[158][159].

Core Viewpoint - Cinemark Holdings, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2025, highlighting its position as a leading theatrical exhibition company [1] Financial Performance - The company released its earnings results, which can be accessed on its Investor Relations website [1] - The report includes both quarterly and full-year results, indicating a comprehensive overview of the company's financial health [1]

Wall Street analysts forecast that Cinemark Holdings (CNK) will report quarterly earnings of $0.27 per share in its upcoming release, pointing to a year-over-year decline of 18.2%. It is anticipated that revenues will amount to $777.75 million, exhibiting a decrease of 4.5% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 27.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reas ...