Core Insights - Cinemark is expected to benefit from a strong lineup of films in 2026, with wide releases anticipated to reach pre-pandemic levels [1] Financial Performance - Over the past three years, Cinemark generated nearly $1.8 billion in adjusted EBITDA and over $1.3 billion in operating cash flow, extinguishing more than $700 million of COVID-related debt and returning $315 million to shareholders [2] - In 2025, Cinemark reported worldwide revenue of $3.1 billion, with adjusted EBITDA of $578 million and an 18.6% adjusted EBITDA margin, attributed to market share expansion and cost management [3][4] Market Position and Strategy - Cinemark continues to gain market share, with its U.S. Movie Club membership up over 50% compared to 2019, and is expanding alternative programming, which accounts for over 10% of box office revenue [5][15] - The company is ramping capital expenditures to approximately $250 million in 2026 to fund new builds and premium formats, with premium screens already representing about 15% of box office [6][10] Operational Developments - Cinemark has reactivated its real estate efforts post-pandemic, with new sites opened and planned in various locations, including El Paso and Greenville [9] - The company expects stronger box office and attendance in 2026, which will support operating leverage and margin expansion [12] Pricing and Concessions - Domestic average ticket prices have seen a 4% compound annual growth rate over the past three years, with expectations for modest increases in 2026 [14] - Domestic per capita spending on concessions increased by 5% year-over-year in 2025, driven by pricing, incidence, and product mix [13] Alternative Content and AI Utilization - Alternative programming has exceeded 10% of Cinemark's box office for multiple years, with proceeds from such content in 2025 more than double those of 2019 [17] - The company is leveraging AI for various operational efficiencies, including pricing optimization and guest services [19] Industry Engagement - Cinemark is actively engaged in discussions regarding theatrical windows and a potential acquisition of Warner Bros., focusing on maintaining film output and exclusive theatrical windows [20]

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]

Cinemark (NYSE:CNK) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker9As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chanda Brashears, Senior Vice President, Investor Relations. Thank you. You may begin.Speaker1Good morning, everyone, and thank you for joining us today to discuss our fourth quarter and full year 2025 results. Our earnings release, executive commentary, as well as our Form 10-K, were issued earlier this morning and are available on o ...

Financial Performance - Cinemark reported total revenue of $858 million for 3Q25 [33] - Adjusted EBITDA for 3Q25 was $178 million, with a margin of 207% [33] - Free Cash Flow for 3Q25 was $38 million [33] - Year-to-date 3Q25 revenue reached $2339 billion, a ~5% increase year-over-year [35, 36] - Year-to-date 3Q25 Adjusted EBITDA was $446 million, a 3% increase year-over-year, with a margin of 191% [35, 36] Market Position and Expansion - Cinemark achieved record-high third-quarter domestic market share with sustained structural gains versus pre-pandemic levels of more than 100 basis points in both the U S and Latin America [33] - The company has ~70% of U S footprint reclined with luxury seats [13] - Movie Club accounted for nearly 30% of Cinemark's domestic 3Q25 box office [33] Balance Sheet and Capital Allocation - Cinemark ended 3Q25 with a cash balance of $461 million and gross debt of less than $19 billion [39] - The company eliminated $460 million in pandemic-related debt in 3Q25 [39, 46] - The Board of Directors increased the annual dividend by 125% to $009 per quarter in 3Q25 and authorized a $300 million share repurchase program [46]

Financial Performance & Market Position - Cinemark reported second quarter total revenue of $941 million, a 28% increase year-over-year[35] - The company generated the highest quarterly Adjusted EBITDA and Adjusted EBITDA margin post-pandemic with $232 million and 24.7%, respectively[35] - Cinemark's domestic box office recovery surpassed the North American industry by over 1,000 basis points[35] - The company maintained core structural market share growth vs FY19 in excess of 100 bps in the U S and Latin America[35] - For the first half of 2025, Cinemark reported ~$1 5 billion of total revenue, an increase of 13% year-over-year[37] - Adjusted EBITDA for 1H25 was $269 million, representing an increase of 26% year-over-year, with an Adjusted EBITDA margin expansion of 190 bps to 18 1%[37] Assets & Customer Loyalty - Cinemark has consistently allocated $80-$100 million for global maintenance capex to maintain a high-quality circuit[15] - Approximately 70% of the U S footprint features reclined luxury seats[15] - Movie Club members increased to 1 45 million, growing 12% year-over-year and over 50% vs 2019, representing nearly 30% of domestic 2Q25 box office[35] Capital Allocation & Debt Management - The company is committed to repaying the $460 million principal amount of convertible notes maturing August 15, 2025, using cash on hand[48] - Cinemark repurchased $200 million of stock in March 2025 to proactively mitigate potential dilution from warrants, reducing share count by 7 93 million[48]