# AMC ENTERTAINMENT HOLDINGS, INC. (AMC) FY 2025 MD&A

Verbatim Item 7 Management's Discussion and Analysis from AMC ENTERTAINMENT HOLDINGS, INC.'s 10-K for fiscal year 2025.

SEC filing source: https://www.sec.gov/Archives/edgar/data/1411579/000141157926000016/amc-20251231x10k.htm
Accession: 0001411579-26-000016
Filing date: 2026-02-23
Report date: 2025-12-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

Company profile: /company/AMC/
All MD&A years: /company/AMC/mda/
Previous year: /company/AMC/mda/fy2024/ (FY 2024)

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

​

The following discussion relates to the consolidated audited financial statements of AMC included elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements. Please see “Forward-Looking Statements” and “Risk Factors” in Part I on this Annual Report on Form 10-K for a discussion of the risks, uncertainties and assumptions relating to these statements. See Note 1—The Company and Significant Accounting Policies in Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for information regarding the Company’s significant accounting policies.

Overview

AMC is the world’s largest theatrical exhibition company and an industry leader in innovation and operational excellence. As of December 31, 2025 we operated in 11 countries including the United States and throughout Europe.

Our theatrical exhibition revenues are generated primarily from box office admissions and food and beverage sales. The balance of our revenues is generated from ancillary sources, including online ticketing fees, on-screen advertising, income from gift card and exchange ticket sales, rental of theatre auditoriums, retail popcorn and merchandise sales, fees earned from our customer loyalty programs, and theatrical distribution. As of December 31, 2025, we owned, operated or had interests in 855 theatres and 9,640 screens.

Significant Events—For the Year Ended December 31, 2025

2025 Debt Refinancing and Additional Share Authorization. During the year ended December 31, 2025, we completed a series of refinancing transactions with certain holders of our Existing 7.5% Notes, certain holders of the Existing Exchangeable Notes, and certain lenders of our term loans outstanding under our credit agreement. Additionally, at the 2025 Annual Meeting of Stockholders held on December 10, 2025, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to increase the total number of authorized shares of the Company’s Common Stock from 550,000,000 to 1,100,000,000 shares of Common Stock. The increase in authorized shares allows for, among other things, the potential conversion of the Company’s New Exchangeable Notes that were issued as part of the refinancing transactions. See Note 7—Corporate Borrowings and Finance Lease Liabilities in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information regarding these transactions.

NCM ESA Amendment. On April 17, 2025, NCM (as defined herein) entered into the Amended ESA (as defined herein) with the Company. The term of the Amended ESA has been extended by five years through February 13, 2042. We treated the Amended ESA as a contract modification pursuant to ASC 606 – Revenue from Contracts with Customers. Accordingly, we have allocated the additional consideration received from the contract modification to the exhibitor services agreement contract liability and updated the discount rate used to account for the significant financing component to 16.12%. Prior to the contract modification, the weighted average discount rate used to account for the significant financing component was approximately 7.5%. The contract liability will be reclassified to other theatre revenue over the new term of the Amended ESA as the remaining performance obligations are satisfied. Concurrently with entering into the Amended ESA, NCM and the Company reached an agreement to, among other things, dismiss with prejudice the ongoing litigation between the parties.

​

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Shares Issuances. During the year ended December 31, 2025, we were paid $108.7 million as initial gross cash proceeds associated with the establishment of forward positions for 30.0 million shares of Common Stock.

Additionally, during the year ended December 31, 2025, we issued shares of Common Stock through an “at-the-market” offering. The below table summarizes the activity of the “at-the-market offering”:

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

​

See Note 8—Stockholders’ Deficit in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information on the share issuances.

Significant Events—For the Year Ended December 31, 2024

Debt Repurchases and Exchanges. The table below summarizes the various cash debt repurchase transactions, debt for equity exchange transactions, and cash and debt for equity exchange transactions that occurred during the year ended December 31, 2024. The debt for equity transactions were treated as early extinguishments of debt. In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged. See Note 7—Corporate Borrowings and Finance Lease Liabilities in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information on these transactions.

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","Shares of","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Aggregate Principal","\u200b","Common Stock","\u200b","Reacquisition","\u200b","(Gain)/Loss on","\u200b","Accrued Interest"],["(In millions)","\u200b","Repurchased/Exchanged","\u200b","Exchanged","\u200b","Cost","\u200b","Extinguishment","\u200b","Paid/Exchanged"],["Cash debt repurchase transactions:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["5.75% Senior Subordinated Notes due 2025","\u200b","$","8.9","\u200b","\u200b","\u2014","\u200b","$","8.6","\u200b","$","(0.3)","\u200b","$","0.1"],["Second Lien Notes due 2026","\u200b","\u200b","50.0","\u200b","\u200b","\u2014","\u200b","\u200b","50.5","\u200b","\u200b","(4.4)","\u200b","\u200b","1.4"],["Total cash debt repurchase transactions","\u200b","\u200b","58.9","\u200b","\u200b","\u2014","\u200b","\u200b","59.1","\u200b","\u200b","(4.7)","\u200b","\u200b","1.5"],["Debt for equity exchange transactions:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["5.75% Senior Subordinated Notes due 2025","\u200b","\u200b","36.7","\u200b","\u200b","9,017,297","\u200b","\u200b","39.8","\u200b","\u200b","3.2","\u200b","\u200b","0.8"],["Second Lien Notes due 2026","\u200b","\u200b","224.1","\u200b","\u200b","35,062,835","\u200b","\u200b","157.2","\u200b","\u200b","(93.1)","\u200b","\u200b","8.3"],["Total debt for equity exchange transactions","\u200b","\u200b","260.8","\u200b","\u200b","44,080,132","\u200b","\u200b","197.0","\u200b","\u200b","(89.9)","\u200b","\u200b","9.1"],["Cash and debt for equity exchange transactions:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["5.75% Senior Subordinated Notes due 2025","\u200b","\u200b","8.6","\u200b","\u200b","447,829","\u200b","\u200b","8.4","\u200b","\u200b","(0.2)","\u200b","\u200b","0.1"],["5.875% Senior Subordinated Notes due 2026","\u200b","\u200b","9.6","\u200b","\u200b","432,777","\u200b","\u200b","8.1","\u200b","\u200b","(1.3)","\u200b","\u200b","0.2"],["Second Lien Notes due 2026","\u200b","\u200b","45.0","\u200b","\u200b","2,693,717","\u200b","\u200b","45.5","\u200b","\u200b","(4.0)","\u200b","\u200b","1.2"],["Total cash and debt for equity exchange transactions","\u200b","\u200b","63.2","\u200b","\u200b","3,574,323","\u200b","\u200b","62.0","\u200b","\u200b","(5.5)","\u200b","\u200b","1.5"],["Total debt repurchases and exchanges","\u200b","$","382.9","\u200b","\u200b","47,654,455","\u200b","$","318.1","\u200b","$","(100.1)","\u200b","$","12.1"]]
[[/GREPCENT_TABLE]]

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Vendor Dispute. On January 26, 2024, we executed an agreement to collect $37.5 million as resolution of a dispute with a vendor. The proceeds, net of legal costs, were recorded to other income during the year ended December 31, 2024. The relationship with the vendor has been restored and remains in good standing.

Share Issuances. During the year ended December 31, 2024, we raised gross proceeds of $261.8 million and paid fees to sales agents and incurred other third-party issuance costs of approximately $6.4 million and $1.9 million, respectively, through our at-the-market offerings of approximately 75.5 million shares of our Common Stock. We paid $0.8 million of other third-party issuance costs during the year ended December 31, 2024.

Additionally, we entered into forward transactions to sell 30.0 million shares of our Common Stock. During December 2024, we were paid $0.01 per share for the par value of the forward shares totaling $0.3 million. See Note 8—Stockholder’s Deficit in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information.

2024 Refinancing Transactions. During the year ended December 31, 2024, we completed a series of transactions to refinance $1,895.0 million aggregate principal amount of our senior secured term loans maturing in 2026 (“Term Loans due 2026”) and $518.6 million of our Second Lien Notes. As part of the transactions, we issued $2,024.3 million aggregate principal amount of the New Term Loans (as defined herein) and $414.4 million aggregate principal of Existing Exchangeable Notes. The repurchases of the Second Lien Notes were accounted for as extinguishments and resulted in a loss on extinguishment of $61.2 million. See the Liquidity and Capital Resources section below and Note 7—Corporate Borrowings and Finance Lease Liabilities in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information on these transactions.

Special Awards. On February 22, 2024, the compensation committee of AMC’s Board approved modification of the performance goals applicable to all 2023 Tranche Year PSU awards. This was accounted for as a modification to the 2023 Tranche Year PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200% vesting was achieved for both targets. This modification resulted in the immediate additional vesting of 478,055 2023 Tranche Year PSUs (21,829 cash settled units and 456,226 equity settled units). This was treated as a Type 3 modification (improbable-to-probable) which required the Company to recognize additional stock compensation expense based on the modification date fair values of the incremental PSUs. During the year ended December 31, 2024, the Company recognized $2.1 million of stock compensation expense related to these awards.

Significant Events—For the Year Ended December 31, 2023

For a discussion of significant events for the year ended December 31, 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 28, 2024, which is incorporated herein by reference.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our assumptions, estimates, and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared. On a regular basis, we review the accounting policies, assumptions, estimates, and judgments to ensure that our financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. We have identified several policies as being critical because they require management to make particularly difficult, subjective and complex judgments about matters that are inherently uncertain, and there is a likelihood that materially different amounts would be reported under different conditions or using different assumptions.

All of our significant accounting policies are discussed in Note 1—The Company and Significant Accounting Policies in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K.

Long-lived Assets Impairments. We review long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.

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Critical estimates. There are many estimates and significant judgments that are made by management in performing impairment evaluations of long-lived assets, including but not limited to, estimates of future attendance, revenues, operating costs and expenses, capital expenditures, and the cost of capital. These estimates determine whether impairments have been incurred and quantify the amount of any related impairment charge.

Assumptions and judgment. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience. These assumptions and judgments can significantly affect the cash flow estimates and appropriate discount rates to be used in determining the fair value of long-lived assets.

Impact if actual results differ from assumptions. Although we believe that our estimates and judgments are reasonable, actual results may differ from these estimates, many of which fall under Level 3 within the fair value measurement hierarchy. Factors that could lead to impairment of long-lived assets include adverse industry or economic trends that would result in declines in the operating performance of our Domestic and International Theatres. Examples of adverse events or circumstances that could change include (i) limited availability of new theatrical releases; (ii) an adverse change in macroeconomic conditions; (iii) increased cost factors that have a negative effect on our earnings and cash flows and higher interest rates; and (iv) negative or overall declining financial performance compared with our actual and projected results of relevant prior periods.

If we are required to record an impairment charge it may substantially reduce the carrying value of our assets and reduce our income in the year in which it is recorded. Given the nature of our business and our recent history, business conditions that are constantly changing, and the competitive business environment in which we operate future impairments are possible and they may be material.

Our Current Long-lived Asset Impairment Related Estimates and Changes in those Estimates. During the year ended December 31, 2025, we recorded non-cash impairment charges related to our long-lived assets of $28.0 million on 47 theatres in the U.S. markets with 560 screens which were related to property, net and operating lease right-of-use assets, net and $15.5 million on 20 theatres in the International markets with 159 screens which were related to property, net and operating lease right-of-use assets, net. A hypothetical 10% decline in the fair value of the asset groups would have resulted in approximately $5.4 million of additional impairment charges.

During the year ended December 31, 2024, we recorded non-cash impairment charges related to our long-lived assets of $51.9 million on 39 theatres in the U.S. markets with 469 screens which were related to property, net and operating lease right-of-use assets, net and $20.4 million on 23 theatres in the International markets with 188 screens which were related to property, net and operating lease right-of-use assets, net.

During the year ended December 31, 2023, we recorded non-cash impairment charges related to our long-lived assets of $49.2 million on 68 theatres in the U.S. markets with 738 screens which were related to property, net and operating lease right-of-use assets, net and $57.7 million on 57 theatres in the International markets with 488 screens which were related to property, net and operating lease right-of-use assets, net.

At December 31, 2025, estimated cash flows were discounted at 9.5% for the Domestic Theatres and 10.5% for the International Theatres. At December 31, 2024, estimated cash flows were discounted at 9.0% for the Domestic Theatres and 10.5% for the International Theatres. At December 31, 2023, estimated cash flows were discounted at 9.0% for the Domestic Theatres and 11.0% for the International Theatres.

Goodwill. We evaluate the goodwill recorded at our two reporting units (Domestic Theatres and International Theatres) for impairment annually as of the beginning of the fourth fiscal quarter or more frequently as specific events or circumstances dictate. Under ASC Topic 350, Goodwill, Intangibles and Other, we can elect to perform a qualitative or quantitative impairment assessment of our goodwill. Under the quantitative goodwill impairment analysis, if the estimated fair value of a reporting unit is less than its carrying value, the difference is recorded as a goodwill impairment charge, not to exceed the total amount of goodwill allocated to that reporting unit. Under the qualitative assessment, entities consider a variety of factors to qualitatively assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill.

We have elected to perform the optional qualitative assessment during the years ended December 31, 2025, 2024, and 2023. Inherent in the qualitative assessment is an estimated impact on each reporting unit’s fair value that events and circumstances might have had and whether or not that impact would have likely reduced the fair value below the reporting units carrying value. Such events and circumstances include, but are not limited to, industry and market conditions, expected cost pressures, expected financial performance, and general macroeconomic conditions.

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Additionally, the estimated fair value of our debt and equity at the consolidated level may be a relevant factor in determining whether it is more likely than not that goodwill is impaired.

Estimating the impact of the general macroeconomic conditions, potential cost pressures, and future industry and market conditions requires significant judgment. We must make assumptions around how much weight should be given to each event and circumstance in order to make an overall qualitative assessment on whether it is more likely than not that goodwill is impaired. The estimated fair value of our debt at the consolidated level is based on observable market based inputs and the estimated fair value of our equity is based on quoted prices in active markets.

Based on our qualitative assessments for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we do not believe it is more likely than not that the goodwill of our reporting units is impaired.

Derivative Fair Values. We remeasure the bifurcated embedded derivatives related to our Existing Exchangeable Notes and New Exchangeable Notes at fair value each reporting period with changes in fair value recorded in the consolidated statements of operations. We have obtained independent third-party valuation studies to assist us in determining fair value.

Critical estimates. The critical estimates used in determining the fair value of the bifurcated embedded derivatives are discussed by host instrument below:

Existing Exchangeable Notes. Our valuation studies use binomial lattice models and are based on significant inputs not observable in the market and thus represent level 3 measurements within the fair value measurement hierarchy. The binomial lattice models consist of simulated Common Stock prices from the valuation date to the maturity of the Existing Exchangeable Notes. The significant inputs used to value the derivative include the share price of our Common Stock, the volatility of the share price, time to maturity, risk-free interest rate, credit spread, and the discount yield. The volatility of our Common Stock, the Common Stock price at the end of each reporting period, and the remaining amount of time until maturity of the Existing Exchangeable Notes are key inputs for the estimation of fair value that are expected to change each reporting period.

New Exchangeable Notes. Our valuation studies use a combination of Monte Carlo simulations, binomial lattice models, and discounted cash flow models. The models are based on significant inputs not observable in the market and thus represent level 3 measurements within the fair value measurement hierarchy. The Monte Carlo simulations use repeated random sampling to simulate a wide range of possible outcomes. The binomial lattice approach consists of simulated Common Stock prices from the valuation date to the maturity of the New Exchangeable Notes. The significant inputs used to value the derivative include the share price of our Common Stock, the volatility of the share price, time to maturity, risk-free interest rate, discount yield, and the probability of the required shareholder approval. The volatility of our Common Stock, the Common Stock price at the end of each reporting period, and the remaining amount of time until maturity of the New Exchangeable Notes are key inputs for the estimation of fair value that are expected to change each reporting period.

Assumptions and judgment. Selecting the appropriate method and model to use in the valuation of the bifurcated embedded derivatives associated with the Existing Exchangeable Notes and New Exchangeable Notes requires judgment and careful consideration of the common valuation practice for similar instruments. Selection of significant assumptions such as volatility and the discount yield also requires judgment and both inputs exhibit a greater degree of subjectivity than more observable inputs such as the risk-free rate.

Impact if actual results differ from assumptions. If actual results differ from assumptions, the value of the bifurcated embedded derivatives could be overstated or understated which could increase or decrease net earnings by a material amount.

Our Current Estimates and Changes in those Estimates. During the years ended December 31, 2025 and December 31, 2024, we recorded other (income) related to changes in the estimated fair value of the bifurcated embedded derivatives of our Existing Exchangeable Notes of $(56.7) million and $(75.8) million, respectively. During the year ended December 31, 2025, we recorded other expense related to changes in the estimated fair value of the bifurcated embedded derivatives of our New Exchangeable Notes of $19.3 million. A hypothetical 10% increase in the fair value of the derivatives would have resulted in an increase of other expense of approximately $14.5 million for the year ended December 31, 2025. Similarly, a hypothetical 10% decrease in the fair value of the derivatives would have resulted in a decrease to other expense of approximately $14.5 million for the year ended December 31, 2025. We expect there will be future changes in the fair value of our derivatives and that the related amounts recorded as income or

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expense may be material. See Note 7—Corporate Borrowings and Finance Lease Liabilities and Note 10—Fair Value Measurements in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for further information.

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Operating Results

The following table sets forth our consolidated revenues, operating costs and expenses attributable to our theatrical exhibition operations and segment operating results. Reference is made to Note 11—Segment Reporting in the Notes to the Consolidated Financial Statements under Part II, Item 8 of this Form 10-K for additional information therein:

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revenues","\u200b","\u200b","3,706.1","\u200b","\u200b","3,544.2","\u200b","4.6","%","\u200b","\u200b","1,142.8","\u200b","\u200b","1,093.0","\u200b","4.6","%","\u200b","\u200b","4,848.9","\u200b","\u200b","4,637.2","\u200b","4.6","%"],["Operating Costs and Expenses","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Film exhibition costs","\u200b","\u200b","1,020.5","\u200b","\u200b","988.8","\u200b","3.2","%","\u200b","\u200b","254.7","\u200b","\u200b","250.4","\u200b","1.7","%","\u200b","\u200b","1,275.2","\u200b","\u200b","1,239.2","\u200b","2.9","%"],["Food and beverage costs","\u200b","","241.2","\u200b","","225.7","\u200b","6.9","%","\u200b","","85.8","\u200b","","79.9","\u200b","7.4","%","\u200b","","327.0","\u200b","","305.6","\u200b","7.0","%"],["Operating expense, excluding depreciation and amortization below","\u200b","","1,327.1","\u200b","","1,252.1","\u200b","6.0","%","\u200b","","458.9","\u200b","","427.3","\u200b","7.4","%","\u200b","","1,786.0","\u200b","","1,679.4","\u200b","6.3","%"],["Rent","\u200b","","650.1","\u200b","","649.9","\u200b","0.0","%","\u200b","","237.2","\u200b","","223.7","\u200b","6.0","%","\u200b","","887.3","\u200b","","873.6","\u200b","1.6","%"],["General and administrative expense:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Merger, acquisition and other costs","\u200b","","3.6","\u200b","","0.1","\u200b","*","%","\u200b","","\u2014","\u200b","","\u2014","\u200b","NA","%","\u200b","","3.6","\u200b","","0.1","\u200b","*","%"],["Other, excluding depreciation and amortization below","\u200b","","144.1","\u200b","","150.6","\u200b","(4.3)","%","\u200b","","86.2","\u200b","","76.2","\u200b","13.1","%","\u200b","","230.3","\u200b","","226.8","\u200b","1.5","%"],["Depreciation and amortization","\u200b","","239.1","\u200b","","247.5","\u200b","(3.4)","%","\u200b","","74.3","\u200b","","72.0","\u200b","3.2","%","\u200b","","313.4","\u200b","","319.5","\u200b","(1.9)","%"],["Impairment of long-lived assets","\u200b","","28.0","\u200b","","51.9","\u200b","(46.1)","%","\u200b","","15.5","\u200b","","20.4","\u200b","(24.0)","%","\u200b","","43.5","\u200b","","72.3","\u200b","(39.8)","%"],["Operating costs and expenses","\u200b","","3,653.7","\u200b","","3,566.6","\u200b","2.4","%","\u200b","","1,212.6","\u200b","","1,149.9","\u200b","5.5","%","\u200b","","4,866.3","\u200b","","4,716.5","\u200b","3.2","%"],["Operating income (loss)","\u200b","","52.4","\u200b","","(22.4)","\u200b","*","%","\u200b","","(69.8)","\u200b","","(56.9)","\u200b","22.7","%","\u200b","","(17.4)","\u200b","","(79.3)","\u200b","(78.1)","%"],["Other expense, net:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Other expense (income)","\u200b","","153.5","\u200b","","(124.4)","\u200b","*","%","\u200b","","(41.1)","\u200b","","(31.8)","\u200b","29.2","%","\u200b","","112.4","\u200b","","(156.2)","\u200b","*","%"],["Interest expense:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Corporate borrowings","\u200b","","398.6","\u200b","","341.9","\u200b","16.6","%","\u200b","","60.9","\u200b","","59.9","\u200b","1.7","%","\u200b","","459.5","\u200b","","401.8","\u200b","14.4","%"],["Finance lease obligations","\u200b","","\u2014","\u200b","","0.1","\u200b","(100.0)","%","\u200b","","6.0","\u200b","","5.3","\u200b","13.2","%","\u200b","","6.0","\u200b","","5.4","\u200b","11.1","%"],["Non-cash NCM exhibitor service agreement","\u200b","\u200b","64.7","\u200b","\u200b","36.5","\u200b","77.3","%","\u200b","\u200b","\u2014","\u200b","\u200b","\u2014","\u200b","NA","%","\u200b","\u200b","64.7","\u200b","\u200b","36.5","\u200b","77.3","%"],["Investment income","\u200b","","(31.0)","\u200b","","(14.0)","\u200b","*","%","\u200b","","(1.1)","\u200b","","(2.3)","\u200b","(52.2)","%","\u200b","","(32.1)","\u200b","","(16.3)","\u200b","96.9","%"],["Total other expense, net","\u200b","","585.8","\u200b","","240.1","\u200b","*","%","\u200b","","24.7","\u200b","","31.1","\u200b","(20.6)","%","\u200b","","610.5","\u200b","","271.2","\u200b","*","%"],["Loss before income taxes","\u200b","","(533.4)","\u200b","","(262.5)","\u200b","*","%","\u200b","","(94.5)","\u200b","","(88.0)","\u200b","7.4","%","\u200b","","(627.9)","\u200b","","(350.5)","\u200b","79.1","%"],["Income tax provision","\u200b","","2.7","\u200b","","\u2014","\u200b","NA","%","\u200b","","1.8","\u200b","","2.1","\u200b","(14.3)","%","\u200b","","4.5","\u200b","","2.1","\u200b","*","%"],["Net loss","\u200b","$","(536.1)","\u200b","$","(262.5)","\u200b","*","%","\u200b","$","(96.3)","\u200b","$","(90.1)","\u200b","6.9","%","\u200b","$","(632.4)","\u200b","$","(352.6)","\u200b","79.4","%"]]
[[/GREPCENT_TABLE]]

​

*Percentage change in excess of 100%.

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","U.S. Markets","\u200b","International Markets","\u200b","Consolidated"],["\u200b","\u200b","Year Ended","\u200b","Year Ended","\u200b","Year Ended"],["\u200b","\u200b","December 31,","\u200b","December 31,","\u200b","December 31,"],["\u200b","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024"],["Operating Data:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Screen additions","\u200b","\u2014","\u200b","\u2014","\u200b","\u2014","\u200b","13","\u200b","\u2014","\u200b","13"],["Screen acquisitions","\u200b","16","\u200b","\u2014","\u200b","20","\u200b","9","\u200b","36","\u200b","9"],["Screen dispositions","\u200b","128","\u200b","185","\u200b","71","\u200b","78","\u200b","199","\u200b","263"],["Screen construction openings (closures), net","\u200b","(1)","\u200b","1","\u200b","6","\u200b","(21)","\u200b","5","\u200b","(20)"],["Average screens (1)","\u200b","7,057","\u200b","7,206","\u200b","2,318","\u200b","2,376","\u200b","9,375","\u200b","9,582"],["Number of screens operated","\u200b","7,072","\u200b","7,185","\u200b","2,568","\u200b","2,613","\u200b","9,640","\u200b","9,798"],["Number of theatres operated","\u200b","533","\u200b","544","\u200b","322","\u200b","327","\u200b","855","\u200b","871"],["Screens per theatre","\u200b","13.3","\u200b","13.2","\u200b","8.0","\u200b","8.0","\u200b","11.3","\u200b","11.2"],["Attendance (in thousands) (1)","\u200b","155,810","\u200b","156,866","\u200b","63,602","\u200b","67,289","\u200b","219,412","\u200b","224,155"]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
[["","(1)","Includes consolidated theatres only and excludes screens offline due to construction."]]
[[/GREPCENT_TABLE]]

​

​

49

Table of Contents

Adjusted EBITDA

​

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets. These further adjustments are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our definition of Adjusted EBITDA and adjustments made to net earnings (loss) to calculate it are broadly consistent with how Adjusted EBITDA is defined and calculated in the Company’s debt indentures.

The following tables set forth our Adjusted EBITDA by reportable segment and our reconciliation of Adjusted EBITDA:

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year Ended"],["Adjusted EBITDA (In millions)","\u200b \u200b \u200b","December 31, 2025","\u200b \u200b \u200b","December 31, 2024"],["U.S. markets","\u200b","$","346.0","\u200b","$","301.5"],["International markets","\u200b","\u200b","41.5","\u200b","\u200b","42.4"],["Total Adjusted EBITDA","\u200b","$","387.5","\u200b","$","343.9"]]
[[/GREPCENT_TABLE]]

​

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year Ended"],["(In millions)","\u200b","December 31, 2025","\u200b \u200b \u200b","December 31, 2024"],["Net loss","\u200b","$","(632.4)","\u200b","$","(352.6)"],["Plus:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Income tax provision (1)","\u200b","","4.5","\u200b","","2.1"],["Interest expense","\u200b","","530.2","\u200b","","443.7"],["Depreciation and amortization","\u200b","","313.4","\u200b","","319.5"],["Impairment of long-lived assets (2)","\u200b","","43.5","\u200b","","72.3"],["Certain operating expense (3)","\u200b","","14.6","\u200b","","5.4"],["Equity in earnings of non-consolidated entities (4)","\u200b","","(6.8)","\u200b","","(12.4)"],["Attributable EBITDA (5)","\u200b","\u200b","2.3","\u200b","\u200b","1.9"],["Investment income (6)","\u200b","","(32.1)","\u200b","","(16.3)"],["Other expense (income) (7)","\u200b","","129.8","\u200b","","(141.8)"],["Merger, acquisition and other costs (8)","\u200b","","3.6","\u200b","","0.1"],["Stock-based compensation expense (9)","\u200b","","16.9","\u200b","","22.0"],["Adjusted EBITDA","\u200b","$","387.5","\u200b","$","343.9"]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]