AMC Entertainment Holdings (NYSE:AMC) reported strong second quarter 2025 results, with revenues surging 35% year-over-year, driven by a rebound in movie attendance and increases in per-guest spending.
Revenue was $1.4 billion, exceeding analyst estimates by $50 to $60 million.
The company narrowed its net loss to $4.7 million from $32.8 million a year earlier and delivered adjusted EBITDA of $189.2 million, a 391% increase from the prior year.
Adjusted earnings per share came in at break-even, significantly better than the anticipated loss of $0.06 to $0.09 per share.
Operational cash flow turned positive at $138.4 million compared to a negative $34.6 million last year, and free cash flow improved to $88.9 million from a negative $79.2 million.
Attendance was up 25.6% year-over-year, with US markets attendance up 28.5% and international markets attendance up 17.7%.
AMC ended the quarter with $423.7 million in cash and equivalents.
“The combination of a resurgent box office, our unparalleled theatre footprint with premium experiences galore, our compelling marketing programs and our increasing financial strength have a flywheel impact when they all are happening simultaneously,” AMC CEO Adam Aron said in a statement.
Wedbush analysts remain positive on AMC’s outlook following the report, seeing the company poised to benefit from a more consistent release slate over the next several quarters.
They added that AMC is positioned to gain market share in 2025 and 2026 with the most premium screens in North America and expansion plans in the United Kingdom and the European Union.
The analysts also highlighted the company’s improved financial footing, noting, “AMC has repaid or postponed all debt that was due in 2026, relieving near-term uncertainty,” they wrote.
“AMC is completing what we expect to be the last major share issuance for a while, putting a significant headwind behind it.”
Looking ahead, Wedbush believes that AMC will continue to close unproductive doors as it shores up its balance sheet in 2025, while investing in its most productive theaters to drive more revenue per screen, which is trending 3% higher than 2019 before incremental investments.
“With box office expected to be more consistent in the coming quarters, we expect AMC’s EBITDA to cover interest expense, relieving its need to issue more shares,” they wrote.
“Over the next few years, we anticipate mid-to-high single-digit growth rates in box office revenue, followed by low-to-mid single-digit growth rates thereafter.”
The analysts concluded: “Additionally, AMC and its peers can continue to expand merchandise sales and improve concession attach rates and basket size, all while gaining meaningful leverage as revenue improves in this high-fixed-cost business.”
Shares of AMC added 3% at $3 on Monday morning.