Article
EARNINGS ANALYSIS: AMC CEO Believes 2025 Domestic Box Office Will Grow by $500M to $900M YoY, Highlights ‘Impressive’ Operating Leverage as EBITDA Soars to $189M in Q2
On a call to discuss its second-quarter 2025 results, AMC CEO Adam Aron said that he believes the domestic box office for 2025 will end the year $500 million to $900 million higher than 2024. This anticipated improvement is similar to his estimate in February of a $500 million to $1 billion year-over-year improvement but may imply a slight decline to his estimate in May for a year-over-year increase in full-year 2025 box office at the high end of the aforementioned $500 million to $1 billion range.
Aron said that the third-quarter box office will be “so-so” due to a seasonal lull in the film slate but indicated that he expects the fourth quarter “will be strong” led by the scheduled release of “Avatar: Fire and Ash” in December. Aron noted that he expects the 2026 box office to be strong “all year long” and is “highly encouraged” by the film slate. He added that the 2026 first quarter should be stronger than the “weak” first-quarter performance in 2025 due to spillover attendance from “Avatar: Fire and Ash.”
On the earnings call, management highlighted AMC’s “impressive operating leverage,” as 36% year-over-year revenue growth led to a 391% increase in adjusted EBITDA to $189 million. The EBITDA improvement reflects an 8% year-over-year increase in both ticket prices and food and beverage spend per patron in the second quarter, along with better “operating efficiency,” according to management.
AMC generated $89 million of free cash flow in the second quarter, comprising $138 million of operating cash flow and roughly $50 million in capital expenditures. The improved cash flow generation versus both the prior-year period and the first quarter was driven by the adjusted EBITDA improvement and a seasonal working capital benefit.
AMC ended June with $424 million in unrestricted cash, up from $379 million at the end of March. In July, AMC closed a comprehensive refinancing transaction including $244 million of new money and resolving the litigation related to last year’s liability management exercise. The company used net proceeds from the refinancing to fully redeem both the 10% notes due 2026 and 5.875% notes due 2026.
Summary quarterly financial results by segment are shown below:
AMC reported the following operating metrics for the second quarter:
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