What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-11 compared with 2025-05-07 · 510 added, 193 removed, 437 unchanged (62% of the section changed)

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If we are unable to achieve increased levels of attendance and revenues, we will be required to obtain additional liquidity.

common stock (“Common Stock”) and other securities would likely suffer a total loss of their investment;

● the risks and uncertainties relating to the Refinancing Transactions (as defined below), including, but not limited to, (i) the potential for additional future dilution of our Common Stock as a result of issuance of shares underlying our 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes (the “Exchangeable Notes”), (ii) the possibility that the extension of certain debt maturities will not provide enough time for attendance and revenues to increase to sufficient levels and generate net positive cash flows from operating activities to overcome liquidity concerns or may be insufficient to do so if the Company does not achieve revenue levels at least in line with pre-COVID-19 revenues and (iii) the impact on the market price of our Common Stock and our capital structure of litigation resulting from the Refinancing Transactions or the claims of default or any additional litigation that has arisen or may arise in connection with the Refinancing Transactions, including the Noteholder Action (as defined herein).

See Note 11—Commitments and Contingencies in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for a description of the litigation;

If such additional liquidity is not obtained or is insufficient, we likely would seek an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our Class A common stock (“Common Stock”) and other securities would likely suffer a total loss of their investment;

● the risks and uncertainties relating to the 2025 Refinancing Transactions and 2024 Refinancing Transactions, including, but not limited to, (i) the potential for additional future dilution of our Common Stock as a result of issuance of shares underlying our Existing Exchangeable Notes or our New Exchangeable Notes, (ii) the possibility that the extension of certain debt maturities will not provide enough time for attendance and revenues to increase to sufficient levels and generate net positive cash flows from operating activities to overcome liquidity concerns or may be insufficient to do so if the Company does not achieve revenue levels at least in line with pre-COVID-19 revenues and (iii) the impact

on the market price of our Common Stock and our capital structure of any litigation or claims of default that might arise in connection with the 2025 Refinancing Transactions or 2024 Refinancing Transactions;

● changing practices of distributors, which accelerated during the COVID-19 pandemic, including increased use of alternative film delivery methods including premium video on demand, streaming platforms, shrinking exclusive theatrical release windows or release of movies to theatrical exhibition and streaming platforms on the same date, the theatrical release of fewer movies, or transitioning to other forms of entertainment;

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● an issuance of preferred stock could dilute the voting power of the common stockholders and adversely affect the market value of our outstanding Common Stock;

● limitations on the authorized number of Common Stock shares could in the future prevent us from raising additional capital through Common Stock;

● limitations on the authorized number of Common Stock shares could in the future prevent us from raising additional capital through Common Stock and could result in increased interest costs from our debt instruments;

● our ability to achieve expected synergies, benefits and performance from our strategic initiatives;

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● failures, unavailability or security breaches of our information systems, including due to cybersecurity incidents;

● our ability to utilize interest expense deductions will be limited annually due to Section 163(j) of the Internal Revenue Code of 1986, as amended (the “Code”), as amended by the Tax Cuts and Jobs Act of 2017;

● our ability to recognize interest deduction carryforwards, net operating loss carryforwards and other tax attributes to reduce our future tax liability;

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AMC is the world’s largest theatrical exhibition company and an industry leader in innovation and operational excellence.

As of March 31, 2025, we operated theatres in 11 countries throughout the U.S.

As of June 30, 2025, we operated theatres in 11 countries throughout the U.S.

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 March 31, 2025, we owned, operated or had interests in 865 theatres and 9,725 screens.

As of June 30, 2025, we owned, operated or had interests in 864 theatres and 9,717 screens.

Box Office Admissions and Film Content

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Movie Screens

The following table provides detail with respect to Premium Large Format (“PLF”) screens (IMAX®, Dolby Cinema TM , in-house), XL screens, SCREENX, premium seating, and our enhanced food and beverage offerings as deployed throughout our circuit as of March 31, 2025 and March 31, 2024:

International Markets

As of March 31,

As of June 30,

Number of theatres:

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Premium seating

In March 2025, we entered into an agreement with CJ 4DPLEX to open 40 4DX and an additional 25 SCREENX locations worldwide.

In March 2025, we signed a letter of intent with CJ 4DPLEX to open 40 4DX and an additional 25 SCREENX locations worldwide.

The majority of the premium screens will be deployed in U.S.

The first auditoriums with SCREENX and 4DX screens are expected to open in 2025 with the full roll out expected to be completed by 2027.

We also entered into agreements with Dolby Laboratories, Inc and IMAX Corporation to expand and upgrade our offerings in those premium formats.

We expect to open an additional 40 Dolby Cinema at AMC locations in the U.S.

by the end of 2027 and twelve new IMAX locations by the end of 2033.

We also announced expanded partnerships with Dolby Laboratories, Inc and IMAX Corporation to expand and upgrade our offerings in those premium formats.

We expect to open an additional 40 Dolby Cinema at AMC locations over the next several years and fourteen new IMAX locations by the end of 2033.

Additionally, we plan to upgrade an additional 68 IMAX locations to IMAX with Laser .

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allows members to earn additional points and other exclusive benefits.

As of March 31, 2025, we had a combined total of approximately 36 million member households enrolled in AMC Stubs® A-List (“A-List”), AMC Stubs Premiere™ (“Premiere”), Premiere GO!

As of June 30, 2025, we had a combined total of approximately 36.5 million member households enrolled in AMC Stubs® A-List (“A-List”), AMC Stubs Premiere™ (“Premiere”), Premiere GO!

, and AMC Stubs Insider™ (“Insider”) programs, combined.

During the three months ended March 31, 2025, our AMC Stubs® members represented approximately 50.5% of AMC U.S.

During the six months ended June 30, 2025, our AMC Stubs® members represented approximately 49% of AMC U.S.

markets attendance.

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Holders of Shares

As of March 31, 2025, approximately 1.8 million shares of our Common Stock were directly registered with our transfer agent by 14,693 stockholders.

As of June 30, 2025, approximately 1.8 million shares of our Common Stock were directly registered with our transfer agent by 14,554 stockholders.

The balance of our outstanding Common Stock was held in “street name” through bank or brokerage accounts.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Significant Events—For the Three Months Ended March 31, 2025

Significant Events—For the Six Months Ended June 30, 2025

NCM ESA Amendment.

On April 17, 2025, NCM entered into the Amended ESA with the Company.

The term of the Amended ESA has been extended by five years through February 13, 2042.

The Company treated the Amended ESA as a contract modification pursuant to ASC 606 – Revenue from Contracts with Customers.

Accordingly, the Company has 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.

Share Issuances.

During the three months ended March 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.

The Valuation Period ended on March 17, 2025 with no True-Up Payment owed to the Company.

Additionally, during the three months ended March 31, 2025, we issued shares through an “at-the-market offering”.

The below table summarizes the activity of the “at-the-market” offering during the three months ended March 31, 2025:

During the six months ended June 30, 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 six months ended June 30, 2025, we issued shares through an “at-the-market offering”.

The below table summarizes the activity of the “at-the-market” offering:

(In millions)

March 31, 2025

June 30, 2025

Shares issued through at-the-market offering

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Other third-party issuance costs paid

As of January 15, 2025, all 50.0 million shares subject to the Sales and Registration Agreement have been sold.

Significant Events—For the Three Months Ended March 31, 2024

See Note 7—Stockholders’ Deficit in the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for further information on the share issuances.

Significant Events—For the Six Months Ended June 30, 2024

Debt for Equity Exchange.

During January 2024, we executed a debt for equity exchange transaction.

This transaction was treated as an early extinguishment of the debt.

The below table summarizes the various debt for equity transactions that occurred during the six months ended June 30, 2024.

The transactions were treated as early extinguishments of the 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.

The below table summarizes the debt for equity exchange.

The below table summarizes the debt for equity exchanges.

Aggregate Principal

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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 three months ended March 31, 2024.

The proceeds, net of legal costs, were recorded to other income during the six months ended June 30, 2024.

The relationship with the vendor has been restored and remains in good standing.

Share Issuances.

During the six months ending June 30, 2024, we raised gross proceeds of $250.0 million and paid fees to sales agents and incurred other third-party issuance costs of approximately $6.3 million and $0.6 million, respectively, through our at-the-market offering of approximately 72.5 million shares of Common Stock.

We paid $0.7 million of other third-party issuance costs during the six months ended June 30, 2024.

Operating Results

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Three Months Ended

Six Months Ended

(In millions)

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Food and beverage

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Operating costs and expenses

Operating loss

Other expense, net:

Operating income (loss)

Other expense (income), net:

Interest expense:

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Investment income

Total other expense, net

Total other expense (income), net

Loss before income taxes

2 unchanged sentences

Three Months Ended

Six Months Ended

Operating Data:

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Screen acquisitions

Screen dispositions

Construction openings (closures), net

Screen construction (closures), net

Average screens (1)

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Operating costs and expenses

Operating loss

Operating income (loss)

Other expense (income), net:

Other expense (income)

Interest expense:

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Total other expense (income), net

Loss before income taxes

Earnings (loss) before income taxes

Income tax provision

Net earnings (loss)

International Markets

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Screen dispositions

Construction openings (closures), net

Screen construction (closures), net

Average screens (1)

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(1) Includes consolidated theatres only and excludes screens offline due to construction.

International Markets

Six Months Ended

(In millions)

Food and beverage

Other theatre

Total revenues

Operating Costs and Expenses

Film exhibition costs

Food and beverage costs

Operating expense, excluding depreciation and amortization below

General and administrative expense:

Merger, acquisition and other costs

Other, excluding depreciation and amortization below

Depreciation and amortization

Operating costs and expenses

Operating loss

Other expense (income), net:

Interest expense:

Corporate borrowings

Finance lease obligations

Non-cash NCM exhibitor service agreement

Investment income

Total other expense (income), net

Loss before income taxes

Income tax provision

International Markets

Six Months Ended

Segment Operating Data:

Screen acquisitions

Screen dispositions

Screen construction openings (closures), net

Average screens (1)

Number of screens operated

Number of theatres operated

Screens per theatre

Attendance (in thousands) (1)

(1) Includes consolidated theatres only and excludes screens offline due to construction.

Segment Information

Our historical results of operations for the three months ended March 31, 2025 and March 31, 2024, reflect the results of operations for our two theatrical exhibition reportable segments, U.S.

Our historical results of operations for the three and six months ended June 30, 2025 and June 30, 2024, reflect the results of operations for our two theatrical exhibition reportable segments, U.S.

markets and International markets.

Results of Operations—For the Three Months ended March 31, 2025, Compared to the Three Months ended March 31, 2024

Consolidated Results of Operations

Total revenues decreased $88.9 million, or 9.3%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Admissions revenues decreased $57.0 million, or 10.7%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a decrease in attendance of 10.1% from 46.6 million patrons to 41.9 million patrons and a 0.7% decrease in average ticket price.

Attendance decreased due to the popularity of film product compared to the prior year.

The decrease in average ticket price was primarily due to decreases in foreign currency translation rates.

Food and beverage revenues decreased $37.8 million, or 11.8%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in attendance and a decrease in food and beverage per patron of 1.9% from $6.89 to $6.76 due primarily to decreases in foreign currency translation rates.

Total other theatre revenues increased $5.9 million, or 5.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to increases in income from expirations of package tickets and income from gift cards in our International markets, partially offset by decreases in ticket fees due to the decrease in attendance, decreases in gift card and package ticket income in U.S.

markets and decreases in foreign currency translation rates.

Results of Operations—For the Three Months ended June 30, 2025, Compared to the Three Months ended June 30, 2024

Condensed Consolidated Results of Operations

Total revenues increased $367.3 million, or 35.6%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Admissions revenues increased $198.2 million, or 35.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to an increase in attendance of 25.6% from 50.0 million patrons to 62.8 million patrons and a 7.5% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The availability and popularity of film product released during the three months ended June 30, 2024, was negatively impacted by the Writers Guild of America and the Screen Actors Guild – American Federation of Television and Radio Artists strikes during 2023.

The increase in average ticket price was primarily due to increased ticket prices for all formats, increases in attendance for 3D and IMAX screen volumes and increases in foreign currency translation rates.

Food and beverage revenues increased $132.5 million, or 36.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 8.3% from $7.34 to $7.95 primarily due to an increase in average prices and the percentage of guests making transactions and increases in foreign currency translation rates, partially offset by lower units per transaction by guests and more frequent attendance from our AMC Stubs members.

Total other theatre revenues increased $36.6 million, or 36.9%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance, advertising income and increases in foreign currency translation rates.

As a result of our Amended ESA, advertising income increased from the prior year by $5.2 million due to an increase in discount rates related to the significant financing component, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Operating costs and expenses.

Operating costs and expenses decreased $51.4 million, or 4.8%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Film exhibition costs decreased $34.5 million, or 14.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in admissions revenues and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 43.3% for the three months ended March 31, 2025, compared to 45.1% for the three months ended March 31, 2024.

The decrease in film exhibition cost percentage is primarily due to the concentration of box office revenues in lower grossing films in the current year, which typically results in lower film exhibition costs.

Food and beverage costs decreased $5.8 million, or 9.2%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The decrease in food and beverage costs was primarily due to the decrease in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 20.2% for the three months ended March 31, 2025, compared to 19.6% for the three months ended March 31, 2024.

Operating expense decreased by $0.6 million, or 0.2%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The decrease in operating expense was primarily due to decreases in foreign currency translation rates.

As a percentage of revenues, operating expense was 45.6% for the three months ended March 31, 2025, compared to 41.4% for the three months ended March 31, 2024.

Rent expense decreased $6.4 million, or 2.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to a decrease in average screens of 2.8% and decreases in foreign currency translation rates.

Operating costs and expenses increased $227.3 million, or 21.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Film exhibition costs increased $119.8 million, or 44.0%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 51.4% for the three months ended June 30, 2025, compared to 48.2% for the three months ended June 30, 2024.

The increase in film exhibition cost percentage is primarily due to the concentration of box office revenues in higher grossing films in the current year, which typically results in higher film exhibition costs.

Food and beverage costs increased $26.2 million, or 37.5%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 19.2% for the three months ended June 30, 2025, compared to 19.0% for the three months ended June 30, 2024.

Operating expense increased by $68.9 million, or 17.7%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The increase in operating expense was primarily due to increases in attendance and the increase in foreign currency translation rates.

As a percentage of revenues, operating expense was 32.8% for the three months ended June 30, 2025, compared to 37.8% for the three months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense increased $4.2 million, or 1.9%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in foreign currency translation rates.

Merger, acquisition, and other costs.

Merger, acquisition, and other costs were $3.0 million during the three months ended March 31, 2025, compared to $(0.1) million during the three months ended March 31, 2024.

Merger, acquisition, and other costs were $0.1 million during the three months ended June 30, 2025, compared to $0.1 million during the three months ended June 30, 2024.

Other general and administrative expense increased $9.2 million, or 18.8%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year and increases in foreign currency translation rates, partially offset by lower insurance costs and legal fees.

Depreciation and amortization.

Depreciation and amortization decreased $1.0 million, or 1.3%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024, partially offset by the increase in foreign currency translation rates.

Other income.

Other income of $(32.1) million during the three months ended June 30, 2025 was primarily due to $(23.9) million in foreign currency transaction gains, $(10.3) million of governmental assistance, and $(2.1) million of equity in earnings of non-consolidated entities, partially offset by $3.9 million of expense related to the increase in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes.

Other income of $(108.2) million during the three months ended June 30, 2024 was primarily due to a gain on the extinguishment of debt of $(85.3) million related to the redemption of $173.9 million aggregate principal amount of the Second Lien Notes due 2026, $(19.1) million of recoveries related to the Shareholder Litigation, and $(2.6) million of other settlement proceeds.

See Note 1—Basis of Presentation in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the components of other income.

Interest expense.

Interest expense increased $30.6 million to $129.6 million for the three months ended June 30, 2025, compared to $99.0 million during the three months ended June 30, 2024, primarily due to increased interest expense of $19.0 million on the New Term Loans (as defined herein) compared to the Existing Term Loans (as defined herein), interest expense of $10.9 million on the Existing Exchangeable Notes issued on July 22, 2024 and an increase in interest expense of $9.4 million related to higher discount rates on the significant financing component of the Amended ESA, partially offset by declines in interest expense of $8.5 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $0.1 million and declines in interest expense on the Senior Subordinated Notes due 2025 of $0.9 million due to redemptions of principal balances.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

See Note 6—Corporate Borrowings and Finance Lease Liabilities in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about our indebtedness.

Investment income.

Investment income was $(1.4) million for the three months ended June 30, 2025, compared to income of $(6.1) million for the three months ended June 30, 2024.

Investment income in the current year includes interest income of $(1.7) million, partially offset by $0.1 million of decrease in estimated fair value of our investment in common shares of Hycroft and $0.2 million of decrease in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes interest income of $(5.4) million, $(0.4) million of increase in estimated fair value of our investment in common shares of Hycroft and $(0.3) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Income tax provision.

The income tax provision was $1.2 million, compared to a provision of $0.7 million, for the three months ended June 30, 2025, and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net loss was $4.7 million and $32.8 million during the three months ended June 30, 2025, and June 30, 2024, respectively.

Net loss during the three months ended June 30, 2025 compared to net loss for the three months ended June 30, 2024 was positively impacted by the increase in attendance as a result of the popularity of new film releases compared to the prior year and decreases in depreciation and amortization, partially offset by increases in rent expense, general and administrative expenses, decreases in other income, increases in interest expense, decreases in investment income and increases in income tax provision.

Theatrical Exhibition — U.S.

Total revenues increased $298.3 million, or 36.6%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Admissions revenues increased $160.3 million, or 36.6%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to an increase in attendance of 28.5% from 36.5 million patrons to 46.9 million patrons and a 6.3% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The increase in average ticket price was primarily due to increases in ticket prices for all formats and increases in attendance for 3D and IMAX screen volumes.

Food and beverage revenues increased $107.2 million, or 35.2%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 5.2% from $8.34 to $8.77 primarily due to an increase in average prices and the percentage of guests making transactions, partially offset by lower units per transaction by guests and more frequent attendance from our AMC Stubs members.

Total other theatre revenues increased $30.8 million, or 42.0%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance and advertising income.

As a result of our Amended ESA, advertising income increased from the prior year by $5.2 million due to an increase in discount rates related to the significant financing component of the Amended ESA, partially offset by lower amortization of deferred revenue due to an increase in the term of the Amended ESA.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Operating costs and expenses.

Operating costs and expenses increased $169.9 million, or 20.5%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Film exhibition costs increased $101.0 million, or 45.0%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 54.4% for the three months ended June 30, 2025, compared to 51.2% for the three months ended June 30, 2024.

Food and beverage costs increased $19.0 million, or 35.3%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 17.7% for the three months ended June 30, 2025, compared to 17.7% for the three months ended June 30, 2024.

Operating expense increased by $49.6 million, or 16.9%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

As a percentage of revenues, operating expense was 30.8% for the three months ended June 30, 2025, compared to 36.0% for the three months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense increased $0.1 million, or 0.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Merger, acquisition, and other costs.

Merger, acquisition, and other costs were $0.1 million during the three months ended June 30, 2025, compared to $0.1 million during the three months ended June 30, 2024.

Other general and administrative expense increased $2.5 million, or 7.7%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year, partially offset by lower insurance costs and legal fees.

Depreciation and amortization.

Depreciation and amortization decreased $2.3 million, or 3.7%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024.

Other expense (income).

Other expense of $2.3 million during the three months ended June 30, 2025 was primarily due to $3.9 million of expense related to the increase in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, partially offset by $(2.1) million of equity in earnings of non-consolidated entities.

Other income of $(108.8) million during the three months ended June 30, 2024 was primarily due to a gain on extinguishment of debt of $(85.3) million related to the redemption of $173.9 million aggregate principal amount of the Second Lien Notes due 2026, $(19.1) million of recoveries related to the Shareholder Litigation and $(2.6) million of other settlement proceeds.

Interest expense.

Interest expense increased $29.5 million to $113.0 million for the three months ended June 30, 2025, compared to $83.5 million during the three months ended June 30, 2024, primarily due to increased interest expense of $19.0 million on the New Term Loans compared to the Existing Term Loans, interest expense of $10.9 million on the Existing Exchangeable Notes issued on July 22, 2024 and an increase in interest expense of $9.4 million related to higher discount rates on the significant financing component of the Amended ESA, partially offset by declines in interest expense of $8.5 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $0.1 million, and declines in interest expense on the Senior Subordinated Notes due 2025 of $0.9 million due to redemptions of principal balances.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Investment income.

Investment income was $(1.4) million for the three months ended June 30, 2025, compared to income of $(5.5) million for the three months ended June 30, 2024.

Investment income in the current year includes interest income of $(1.7) million offset by $0.1 million of decrease in estimated fair value of our investment in common shares of Hycroft and $0.2 million of decrease in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes $(4.8) million of interest income, $(0.4) million of increase in estimated fair value of our investment in common shares of Hycroft, and $(0.3) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Income tax provision.

The income tax provision was $0.5 million, compared to a provision of $0.6 million, for the three months ended June 30, 2025, and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net earnings.

Net earnings was $1.5 million and $17.7 million during the three months ended June 30, 2025, and June 30, 2024, respectively.

Net earnings during the three months ended June 30, 2025 compared to net earnings for the three months ended June 30, 2024 was negatively impacted by increases in rent expense, general and administrative expenses, decreases in other income, increases in interest expense, and decreases in investment income, partially offset by the increase in attendance as a result of the popularity of new film releases compared to the prior year, decreases in depreciation and amortization and decreases in income tax provision.

Theatrical Exhibition—International Markets

Total revenues increased $69.0 million, or 32.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Admissions revenues increased $37.9 million, or 30.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to an increase in attendance of 17.7% from 13.5 million patrons to 15.9 million patrons and a 10.5% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The increase in average ticket price was primarily due to increases in foreign currency translation rates and increases in ticket prices.

Food and beverage revenues increased $25.3 million, or 40.2%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 19.1% from $4.65 to $5.54 primarily due to an increase in average prices, the percentage of guests making transactions and increases in foreign currency translation rates.

Total other theatre revenues increased $5.8 million, or 22.5%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance, advertising income, and increases in foreign currency translation rates.

Operating costs and expenses.

Operating costs and expenses increased $57.4 million, or 23.0%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Film exhibition costs increased $18.8 million, or 39.4%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 40.6% for the three months ended June 30, 2025, compared to 37.9% for the three months ended June 30, 2024.

Food and beverage costs increased $7.2 million, or 44.7%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 26.4% for the three months ended June 30, 2025, compared to 25.6% for the three months ended June 30, 2024.

Operating expense increased by $19.3 million, or 20.1%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

The increase in operating expense was primarily due to increases in attendance and the increase in foreign currency translation rates.

As a percentage of revenues, operating expense was 40.6% for the three months ended June 30, 2025, compared to 44.7% for the three months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense increased $4.1 million, or 7.3%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in foreign currency translation rates.

Other general and administrative expense increased $6.7 million, or 40.4%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year and increases in foreign currency translation rates.

Depreciation and amortization.

Depreciation and amortization increased $1.3 million, or 7.5%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to the increase in foreign currency translation rates.

Other expense (income).

Other income of $(34.4) million during the three months ended June 30, 2025 was primarily due to $(23.9) million in foreign currency transaction gains and $(10.3) million of governmental assistance.

Other expense of $0.6 million during the three months ended June 30, 2024 was primarily due to equity in losses of non-consolidated entities of $1.1 million, partially offset by foreign currency transaction gains of $(0.5) million.

Interest expense.

Interest expense increased $1.1 million to $16.6 million for the three months ended June 30, 2025, compared to $15.5 million during the three months ended June 30, 2024, primarily due to increased interest expense of $0.9 million on finance lease obligations.

Investment income.

Investment income was $0.0 million for the three months ended June 30, 2025, compared to investment income of $0.6 million for the three months ended June 30, 2024.

Investment income in the current and prior year is comprised of interest income.

Income tax provision.

The income tax provision was $0.7 million and $0.1 million for the three months ended June 30, 2025, and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net loss was $6.2 million and $50.5 million during the three months ended June 30, 2025, and June 30, 2024, respectively.

and administrative expenses, depreciation and amortization expense, increases in interest expense, decreases in investment income and increases in income tax provision.

Results of Operations—For the Six Months ended June 30, 2025 Compared to the Six Months ended June 30, 2024

Condensed Consolidated Results of Operations

Total revenues increased $278.4 million, or 14.0%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Admissions revenues increased $141.2 million, or 12.9%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to an increase in attendance of 8.3% from 96.6 million patrons to 104.7 million patrons and a 4.1% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The availability and popularity of film product released during the six months ended June 30, 2024, was negatively impacted by the Writers Guild of America and the Screen Actors Guild – American Federation of Television and Radio Artists strikes during 2023.

The increase in average ticket price was primarily due to increased ticket prices for all formats, increases in attendance for 3D screen volumes and increases in foreign currency translation rates.

Food and beverage revenues increased $94.7 million, or 13.8%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 5.1% from $7.12 to $7.48 primarily due to an increase in average prices and the percentage of guests making transactions and increases in foreign currency translation rates, partially offset by lower units per transaction by guests and more frequent attendance from our AMC Stubs members.

Total other theatre revenues increased $42.5 million, or 21.4%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance, advertising income, increases in income from expirations of package tickets in our International markets, and increases in foreign currency translation rates.

As a result of our Amended ESA, advertising income increased from the prior year by $5.2 million due to an increase in discount rates related to the significant financing component of the Amended ESA, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Operating costs and expenses.

Operating costs and expenses increased $175.9 million, or 8.2%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Film exhibition costs increased $85.3 million, or 16.7%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 48.3% for the six months ended June 30, 2025, compared to 46.7% for the six months ended June 30, 2024.

Food and beverage costs increased $20.4 million, or 15.3%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 19.6% for the six months ended June 30, 2025, compared to 19.3% for the six months ended June 30, 2024.

Operating expense increased by $68.3 million, or 8.7%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in operating expense was primarily due to increases in attendance and the increase in foreign currency translation rates.

As a percentage of revenues, operating expense was 37.7% for the six months ended June 30, 2025, compared to 39.5% for the six months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense decreased $2.2 million, or 0.5%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to a decrease in average screens of 2.5%, partially offset by increases in foreign currency translation rates.

Merger, acquisition, and other costs.

Merger, acquisition, and other costs $3.1 million during the six months ended June 30, 2024, compared to $0.0 million during the six months ended June 30, 2024.

The current year expense relates to severance costs in U.S.

Other general and administrative expense decreased $1.7 million, or 2.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to lower insurance costs and decreases in foreign currency translation rates.

Other general and administrative expense increased $7.5 million, or 7.0%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year and increases in foreign currency translation rates, partially offset by lower insurance costs and legal fees.

Depreciation and amortization.

Depreciation and amortization decreased $5.5 million, or 6.7%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024, and the decrease in foreign currency translation rates.

Depreciation and amortization decreased $6.5 million, or 4.1%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024, partially offset by increases in foreign currency translation rates.

Other income.

Other income of $(58.8) million during the three months ended March 31, 2025 was primarily due to $(45.1) million of income related to the decrease in fair value of the Conversion Option derivative liability, $(13.0) million in foreign currency transaction gains and $(0.8) million in equity in earnings related to non-consolidated entities.

Other income of $(42.8) million during the three months ended March 31, 2024 was primarily due to the favorable settlement of a vendor dispute of $(36.2) million, a gain on extinguishment of debt of $(5.8) million related to the redemption of $17.5 million aggregate principal amount of the Second Lien Notes due 2026 and equity in earnings of non-consolidated entities of $(3.7) million, partially offset by foreign currency transaction losses of $3.2 million.

Other income of $(90.9) million during the six months ended June 30, 2025 was primarily due to $(41.2) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, $(36.9) million in foreign currency transaction gains, $(10.5) million of governmental assistance, and $(2.9) million of equity in earnings of non-consolidated entities.

Other income of $(151.0) million during the six months ended June 30, 2024 was primarily due to a gain on extinguishment of debt of $(91.1) million related to the redemption of $191.4 million aggregate principal amount of the Second Lien Notes due 2026, the favorable settlement of a vendor dispute of $(36.2) million, $(19.1) million of recoveries related to the Shareholder Litigation and $(3.6) million of other settlement proceeds.

Interest expense.

Interest expense increased $17.9 million to $119.1 million for the three months ended March 31, 2025, compared to $101.2 million during the three months ended March 31, 2024, primarily due to increased interest expense of $18.3 million on the New Term Loans (as defined herein) compared to the Existing Term Loans (as defined herein), and interest expense of $10.8 million on the Exchangeable Notes issued on July 22, 2024, partially offset by declines in interest expense of $9.5 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $1.0 million and declines in interest expense on the Senior Subordinated Notes due 2025 of $0.8 million due to redemptions of principal balances.

Interest expense increased $48.5 million to $248.7 million for the six months ended June 30, 2025, compared to $200.2 million during the six months ended June 30, 2024, primarily due to increased interest expense of $37.2 million on the New Term Loans compared to the Existing Term Loans, interest expense of $21.6 million on the Existing Exchangeable Notes issued on July 22, 2024, and an increase in interest expense of $9.0 million related to higher discount rates on the significant financing component of the Amended ESA, partially offset by declines in interest expense of $18.0 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $1.1 million, and declines in interest expense on the Senior Subordinated Notes due 2025 of $1.8 million due to redemptions of principal balances.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Investment income.

Investment income was $(5.7) million for the three months ended March 31, 2025, compared to income of $(5.1) million for the three months ended March 31, 2024.

Investment income was $(7.1) million for the six months ended June 30, 2025, compared to $(11.2) million for the six months ended June 30, 2024.

Investment income in the current year includes interest income of $(4.6) million, $(2.3) million of increase in estimated fair value of our investment in common shares of Hycroft, and $(0.2) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes interest income of $(6.1) million, partially offset by $0.5 million of decrease of our investment in common shares of Hycroft and a decline in estimated fair value of $0.5 million in our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes interest income of $(11.5) million, partially offset by $0.1 million of decline in the estimated fair value of our investment in common shares of Hycroft and $0.2 million of decline in the estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Income tax provision.

The income tax provision was $1.6 million, compared to a provision of $1.8 million, for the three months ended March 31, 2025, and March 31, 2024, respectively.

The income tax provision was $2.8 million and $2.5 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net loss was $202.1 million and $163.5 million during the three months ended March 31, 2025, and March 31, 2024, respectively.

Net loss during the three months ended March 31, 2025 compared to net loss for the three months ended March 31, 2024 was negatively impacted by the decrease in attendance as a result of the popularity of new film releases compared to the prior year, an increase in interest expense, and an increase in general and administrative expense, partially offset by increases in other income, decreases in rent expense, decreases in depreciation and amortization, increases in investment income, and decreases in income tax provision.

Net loss was $206.8 million and $196.3 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

Net loss during the six months ended June 30, 2025 compared to net loss for the six months ended June 30, 2024 was negatively impacted by increases in general and administrative expenses, decreases in other income, increases in interest expense, decreases in investment income and increases in income tax provision, partially offset by the increase in attendance as a result of the popularity of new film releases compared to the prior year, decreases in rent expense and decreases in depreciation and amortization.

Theatrical Exhibition—U.S.

Total revenues decreased $72.1 million, or 10.5%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Admissions revenues decreased $40.5 million, or 10.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a decrease in attendance of 11.8% from 30.5 million patrons to 26.9 million patrons, partially offset by a 1.0% increase in average ticket price.

Attendance decreased due to the popularity of film product compared to the prior year.

Food and beverage revenues decreased $29.1 million, or 11.8%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in attendance and a decrease in food and beverage per patron of 0.1% from $8.08 to $8.07.

Total other theatre revenues decreased $2.5 million, or 3.5%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to decreases in income from gift cards and package tickets and decreases in ticket fees due to the decrease in attendance.

Total revenues increased $226.2 million, or 15.0%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Admissions revenues increased $119.8 million, or 14.8%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to an increase in

attendance of 10.2% from 67.0 million patrons to 73.8 million patrons and a 4.2% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The increase in average ticket price was primarily due to increased ticket prices for all formats and increases in attendance for 3D screen volumes.

Food and beverage revenues increased $78.1 million, or 14.2%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 3.6% from $8.22 to $8.52 primarily due to an increase in average prices and the percentage of guests making transactions, partially offset by lower units per transaction by guests and more frequent attendance from our AMC Stubs members.

Total other theatre revenues increased $28.3 million, or 19.6%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance and advertising income.

As a result of our Amended ESA, advertising income increased from the prior year by $5.2 million due to an increase in discount rates related to the significant financing component of the Amended ESA, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Operating costs and expenses.

Operating costs and expenses decreased $33.9 million, or 4.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Film exhibition costs decreased $25.9 million, or 14.6%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in admissions revenues and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 45.7% for the three months ended March 31, 2025, compared to 47.7% for the three months ended March 31, 2024.

Food and beverage costs decreased $4.0 million, or 8.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The decrease in food and beverage costs was primarily due to the decrease in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 18.9% for the three months ended March 31, 2025, compared to 18.3% for the three months ended March 31, 2024.

Operating expense increased by $1.6 million, or 0.6%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

As a percentage of revenues, operating expense was 46.7% for the three months ended March 31, 2025, compared to 41.6% for the three months ended March 31, 2024.

Rent expense decreased $3.1 million, or 1.9%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to a decrease in average screens of 2.5%.

Operating costs and expenses increased $136.0 million, or 8.5%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Film exhibition costs increased $75.1 million, or 18.7%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 51.3% for the six months ended June 30, 2025, compared to 49.6% for the six months ended June 30, 2024.

Food and beverage costs increased $15.0 million, or 15.2%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 18.1% for the six months ended June 30, 2025, compared to 17.9% for the six months ended June 30, 2024

Operating expense increased by $51.2 million, or 8.8%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in operating expense was primarily due to increases in attendance.

As a percentage of revenues, operating expense was 36.5% for the six months ended June 30, 2025, compared to 38.6% for the six months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense decreased $3.0 million, or 0.9%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to a decrease in average screens of 2.3%.

Merger, acquisition, and other costs.

Merger, acquisition, and other costs were $3.0 million during the three months ended March 31, 2025, compared to $(0.1) million during the three months ended March 31, 2024.

Merger, acquisition, and other costs were $3.1 million during the six months ended June 30, 2025, compared to $0.0 million during the six months ended June 30, 2024.

The current year expense relates to severance costs in U.S.

Other general and administrative expense decreased $0.9 million, or 2.3%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to lower insurance costs.

Other general and administrative expense increased $1.6 million, or 2.3%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year, partially offset by lower insurance costs and legal fees.

Depreciation and amortization.

Depreciation and amortization decreased $4.7 million, or 7.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024.

Depreciation and amortization decreased $7.0 million, or 5.6%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024.

Other income.

Other income of $45.4 million during the three months ended March 31, 2025 was primarily due to $45.1 million of income related to the decrease in fair value of the Conversion Option derivative liability and $0.7 million in equity in earnings related to non-consolidated entities.

Other income of $8.9 million during the three months ended March 31, 2024 was primarily due to a gain on extinguishment of debt of $5.8 million related to the redemption of $17.5 million aggregate principal amount of the Second Lien Notes due 2026 and equity in earnings of non-consolidated entities of $3.5 million.

Other income of $(43.1) million during the six months ended June 30, 2025 was primarily due to $(41.2) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, and $(2.7) million equity in earnings of non-consolidated entities.

Other income of $(117.7) million during the six months ended June 30, 2024 was primarily due to a gain on extinguishment

of debt of $(91.1) million related to the redemption of $191.4 million aggregate principal amount of the Second Lien Notes due 2026, $(19.1) million of recoveries related to the Shareholder Litigation and $(3.6) million of other settlement proceeds.

Interest expense.

Interest expense increased $17.2 million to $102.7 million for the three months ended March 31, 2025, compared to $85.5 million during the three months ended March 31, 2024, primarily due to increased interest expense of $18.3 million on the New Term Loans compared to the Existing Term Loans, and interest expense of $10.8 million on the Exchangeable Notes issued on July 22, 2024, partially offset by declines in interest expense of $9.5 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $1.0 million and declines in interest expense on the Senior Subordinated Notes due 2025 of $0.8 million due to redemptions of principal balances.

Interest expense increased $46.7 million to $215.7 million for the six months ended June 30, 2025, compared to $169.0 million during the six months ended June 30, 2024, primarily due to increased interest expense of $37.2 million on the New Term Loans compared to the Existing Term Loans, interest expense of $21.6 million on the Existing Exchangeable Notes issued on July 22, 2024, and an increase in interest expense of $9.0 million related to higher discount rates on the significant financing component of the Amended ESA, partially offset by declines in interest expense of $18.0 million on the Second Lien Notes due to redemptions of principal balances, declines in interest expense related to the revolving credit facility of $1.1 million, and declines in interest expense on the Senior Subordinated Notes due 2025 of $1.8 million due to redemptions of principal balances.

See Note 3—Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Investment income.

Investment income was $(5.5) million for the three months ended March 31, 2025, compared to investment income of $(4.5) million for the three months ended March 31, 2024.

Investment income was $(6.9) million for the six months ended June 30, 2025, compared to income of $(10.0) million for the six months ended June 30, 2024.

Investment income in the current year includes interest income of $(4.4) million, $(2.3) million of increase in estimated fair value of our investment in common shares of Hycroft and $(0.2) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes $(5.5) million of interest income, partially offset by $0.5 million of decrease in the estimated fair value of our investment in common shares of Hycroft and a decline in the estimated fair value of $0.5 million of our investment in warrants to purchase common shares of Hycroft.

Investment income in the prior year includes interest income of $(10.3) million, partially offset by $0.1 million of decline in estimated fair value of our investment in common shares of Hycroft and $0.2 million of decline in estimated fair value of our investment in warrants to purchase common shares of Hycroft .

Income tax provision.

The income tax provision was $0.9 million, compared to a provision of $0.6 million, for the three months ended March 31, 2025, and March 31, 2024, respectively.

The income tax provision was $1.4 million and $1.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net loss was $178.4 million and $160.2 million during the three months ended March 31, 2025, and March 31, 2024, respectively.

Net loss during the three months ended March 31, 2025 compared to net loss for the three months ended March 31, 2024 was negatively impacted by the decrease in attendance as a result of the popularity of new film releases compared to the prior year, an increase in interest expense, an increase in general and administrative expense, and an increase in income tax provision, partially offset by increases in other income, decreases in depreciation and amortization, decreases in rent expense, and increases in investment income.

Net loss was $176.9 million and $142.5 million during the six months ended June 30, 2025, and June 30, 2024, respectively.

Net loss during the six months ended June 30, 2025 compared to net loss for the six months ended June 30, 2024 was negatively impacted by increases in general and administrative expenses, decreases in other income, increases in interest expense, decreases in investment income, and increases in income tax provision, partially offset by the increase in attendance as a result of the popularity of new film releases compared to the prior year, decreases in rent expense, and decreases in depreciation and amortization.

Theatrical Exhibition—International Markets

Total revenues decreased $16.8 million, or 6.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Admissions revenues decreased $16.5 million, or 10.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a decrease in attendance of 7.1% from 16.1 million patrons to 15.0 million patrons and a 3.5% decrease in average ticket price.

Attendance decreased due to the popularity of film product compared to the prior year.

The decrease in average ticket price was primarily due to decreases in foreign currency translation rates.

Food and beverage revenues decreased $8.7 million, or 11.6%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in attendance and a decrease in food and beverage per patron of 5.0% from $4.64 to $4.41 due primarily to decreases in foreign currency translation rates.

Total other theatre revenues increased $8.4 million, or 29.5%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to increases in income from expirations of package tickets, income from gift cards and advertising income, partially offset by decreases in ticket fees due to the decrease in attendance and decreases in foreign currency translation rates.

Total revenues increased $52.2 million, or 10.9%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Admissions revenues increased $21.4 million, or 7.5%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to an increase in attendance of 4.2% from 29.7 million patrons to 30.9 million patrons and a 3.1% increase in average ticket price.

Attendance increased due to the popularity of film product compared to the prior year.

The increase in average ticket price was primarily due to increased ticket prices and increases in foreign currency translation rates.

Food and beverage revenues increased $16.6 million, or 12.0%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to the increase in attendance and an increase in food and beverage per patron.

Food and beverage per patron increased 7.3% from $4.65 to $4.99 primarily due to an increase in average prices and the percentage of guests making transactions and increases in foreign currency translation rates, partially offset by lower units per transaction by guests.

Total other theatre revenues increased $14.2 million, or 26.2%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance, advertising income, increases in income from expirations of package tickets, and increases in foreign currency translation rates.

Operating costs and expenses.

Operating costs and expenses decreased $17.5 million, or 6.2%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Film exhibition costs decreased $8.6 million, or 13.8%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the decrease in admissions revenues and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 37.6% for the three months ended March 31, 2025, compared to 39.1% for the three months ended March 31, 2024.

Food and beverage costs decreased $1.8 million, or 10.0%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The decrease in food and beverage costs was primarily due to the decrease in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 24.5% for the three months ended March 31, 2025, compared to 24.0% for the three months ended March 31, 2024.

Operating expense decreased by $2.2 million, or 2.1%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

The decrease in operating expense was primarily due to decreases in foreign currency translation rates.

As a percentage of revenues, operating expense was 42.7% for the three months ended March 31, 2025, compared to 40.8% for the three months ended March 31, 2024.

Rent expense decreased $3.3 million, or 5.6%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to a decrease in average screens of 3.7% and decreases in foreign currency translation rates.

Other general and administrative expense decreased $0.8 million, or 4.2%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to decreases in foreign currency translation rates.

Operating costs and expenses increased $39.9 million, or 7.5%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Film exhibition costs increased $10.2

million, or 9.3%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to the increase in admissions revenues and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 39.2% for the six months ended June 30, 2025, compared to 38.6% for the six months ended June 30, 2024.

Food and beverage costs increased $5.4 million, or 15.8%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage revenues.

As a percentage of food and beverage revenues, food and beverage costs were 25.6% for the six months ended June 30, 2025, compared to 24.7% for the six months ended June 30, 2024.

Operating expense increased by $17.1 million, or 8.4%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

The increase in operating expense was primarily due to increases in attendance and the increase in foreign currency translation rates.

As a percentage of revenues, operating expense was 41.6% for the six months ended June 30, 2025, compared to 42.6% for the six months ended June 30, 2024.

The improvement in operating expense as a percentage of revenues is primarily due to the operating leverage gained as attendance increases.

Rent expense increased $0.8 million, or 0.7%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in foreign currency translation rates, partially offset by a decrease in average screens of 3.2%.

Other general and administrative expense increased $5.9 million, or 16.5%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in bonus expense as a result of higher than expected annual performance compared to annual targets in the current year compared to the prior year and increases in foreign currency translation rates.

Depreciation and amortization.

Depreciation and amortization decreased $0.8 million, or 4.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024, and the decrease in foreign currency translation rates.

Depreciation and amortization increased $0.5 million, or 1.4%, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to increases in foreign currency translation rates, partially offset by theatre closures and lower depreciation expense on theatres impaired during the year ended December 31, 2024.

Other income.

Other income of $(13.4) million during the three months ended March 31, 2025 was primarily due to $(13.0) million in foreign currency transaction gains.

Other income of $(33.9) million during the three months ended March 31, 2024 was primarily due to the favorable settlement of a vendor dispute of $(36.2) million and insurance recoveries of $(1.1) million, partially offset by foreign currency transaction losses of $3.2 million.

Other income of $(47.8) million during the six months ended June 30, 2025, was primarily due to $(36.9) million in foreign currency transaction gains and $(10.5) million of governmental assistance.

Other income of $(33.3) million during the six months ended June 30, 2024 was primarily due to the favorable settlement of a vendor dispute of $(36.2) million, partially offset by foreign currency translation losses of $2.6 million.

Interest expense.

Interest expense increased $0.7 million to $16.4 million for the three months ended March 31, 2025, compared to $15.7 million for the three months ended March 31, 2024.

Interest expense increased $1.8 million to $33.0 million for the six months ended June 30, 2025, compared to $31.2 million during the six months ended June 30, 2024, primarily due to increased interest expense of $1.2 million on finance lease obligations.

Investment income.

Investment income was $0.2 million for the three months ended March 31, 2025, compared to investment income of $0.6 million for the three months ended March 31, 2024.

Investment income in the current and prior year is comprised of interest income.

Investment income was $(0.2) million for the six months ended June 30, 2025, compared to income of $(1.2) million for the six months ended June 30, 2024.

Investment income in the current year includes interest income of $(0.2) million.

Investment income in the prior year includes interest income of $(1.2) million.

Income tax provision.

The income tax provision was $0.7 million and $1.2 million for the three months ended March 31, 2025, and March 31, 2024, respectively.

The income tax provision was $1.4 million and $1.3 million for the six months ended June 30, 2025, and June 30, 2024, respectively.

See Note 8—Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Net loss was $23.7 million and $3.3 million during the three months ended March 31, 2025, and March 31, 2024, respectively.

Net loss during the three months ended March 31, 2025 compared to net loss for the three months ended March 31, 2024 was negatively impacted by the decrease in attendance as a result of the popularity of new film releases compared to the prior year, decreases in other income, increases in interest expense, and decreases in investment income, partially offset by decreases in rent expense, decreases in depreciation and amortization, decreases in general and administrative expense, and decreases in income tax provision.

Net loss was $29.9 million and $53.8 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

Net loss during the six months ended June 30, 2025 compared to net loss for the six months ended June 30, 2024 was positively impacted by the increase in attendance as a result of the popularity of new film releases compared to the prior year and increases in other income, partially offset by increases in rent, general and administrative expenses, depreciation and amortization, increases in interest expense, decreases in investment income, and increases in income tax provision.

Adjusted EBITDA

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Three Months Ended

Six Months Ended

Adjusted EBITDA (In millions)

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

International markets

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Three Months Ended

Six Months Ended

(In millions)

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Income tax provision (1)

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We have excluded these items as they are non-cash in nature or related to theatres that are not open.

(3) Equity in earnings of non-consolidated entities during the three months ended March 31, 2025 primarily consisted of equity in earnings from AC JV of $(0.8) million.

Equity in earnings of non-consolidated entities during the three months ended March 31, 2024 primarily consisted of equity in earnings from AC JV of $(3.3) million.

(4) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets.

(3) Equity in earnings of non-consolidated entities during the three months ended June 30, 2025 primarily consisted of equity in earnings from AC JV of $(1.8) million.

Equity in earnings of non-consolidated entities during the three months ended June 30, 2024 primarily consisted of equity in earnings from AC JV of $(1.9) million.

Equity in earnings non-consolidated entities during the six months ended June 30, 2025 primarily consisted of equity in earnings from AC JV of $(2.6) million.

Equity in earnings of non-consolidated entities during the six months ended June 30, 2024 primarily consisted of equity in earnings from AC JV of $(5.2) million.

(4) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain

International markets.

See below for a reconciliation of our equity in (earnings) of non-consolidated entities to attributable EBITDA.

Because these equity investments are in theatre operators in regions where we hold a significant market share, we believe attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments.

We also provide services to these theatre operators including information technology systems, certain on-screen advertising services and our gift card and package ticket program.

Three Months Ended

Six Months Ended

(In millions)

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Equity in (earnings) of non-consolidated entities

Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures

Equity in earnings of International theatre joint ventures

Equity in (loss) of International theatre joint ventures

Income tax benefit

Investment expense

Interest expense

Depreciation and amortization

Attributable EBITDA

(5) Investment income during the three months ended March 31, 2025 includes interest income of $(2.9) million, increases in the estimated fair value of our investment in common shares of Hycroft of $(2.4) million, and increases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $(0.4) million.

Investment income during the three months ended March 31, 2024 included interest income of $(6.1) million, partially offset by a decline in the estimated fair value of our investment in common shares of Hycroft of $0.5 million, and a decline in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $0.5 million.

(6) Other income during the three months ended March 31, 2025 includes a decrease in fair value of the derivative liability for the embedded conversion feature in the Exchangeable Notes of $(45.1) million and

foreign currency transaction gains of $(13.0) million.

Other income during the three months ended March 31, 2024 included a vendor dispute settlement of $(36.2) million and gains on debt extinguishment of $(5.8) million, partially offset by foreign currency transaction losses of $3.2 million.

(5) Investment income during the three months ended June 30, 2025 includes interest income of $(1.7) million, partially offset by decreases in the estimated fair value of our investment in common shares of Hycroft of $0.1 million, and decreases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $0.2 million.

Investment income during the three months ended June 30, 2024 included interest income of $(5.4) million, an increase in the estimated fair value of our investment in common shares of Hycroft of $(0.4) million, and an increase in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $(0.3) million.

Investment income during the six months ended June 30, 2025 includes interest income of $(4.6) million, increases in the estimated fair value of our investment in common shares of Hycroft of $(2.3) million, and increases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $(0.2) million.

Investment income during the six months ended June 30, 2024 included interest income of $(11.5) million, partially offset by decreases in the estimated fair value of our investment in common shares of Hycroft of $0.1 million and decreases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $0.2 million.

(6) Other income during the three months ended June 30, 2025 includes an increase in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes of $3.9 million and foreign currency transaction gains of $(23.9) million.

Other income during the three months ended June 30, 2024 included shareholder litigation recoveries of $(19.1) million, foreign currency transaction gains of $(0.6) million and gains on debt extinguishment of $(85.3) million.

Other income during the six months ended June 30, 2025 includes a decrease in fair value of the derivative liability of the embedded conversion feature in the Existing Exchangeable Notes of $(41.2) million and foreign currency transaction gains of $(36.9) million.

Other income during the six months ended June 30, 2024 included shareholder litigation recoveries of $(19.1) million, gains on debt extinguishment of $(91.1) million, a vendor dispute settlement of $(36.2) million and foreign currency transaction losses of $2.6 million.

(7) Merger, acquisition and other costs are excluded as they are non-operating in nature.

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● does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future.

During the three months ended March 31, 2025, Adjusted EBITDA in the U.S.

markets was $(57.4) million compared to $(20.2) million during the three months ended March 31, 2024.

The year-over-year decline was primarily driven by a decrease in attendance due to the popularity of new film releases compared to the prior year.

These declines were partially offset by decreases in rent expense and decreases in general and administrative:

other expenses.

During the three months ended March 31, 2025, Adjusted EBITDA in the International markets was $(0.6) million compared to $(1.0) million during the three months ended March 31, 2024.

The year-over-year decline was primarily driven by a decrease in attendance due to the popularity of new film releases compared to the prior year.

These declines were partially offset by increases in other revenues related to package ticket expirations and gift card income, decreases in rent expense and decreases in general and administrative:

During the three months ended June 30, 2025, Adjusted EBITDA in the U.S.

markets was $181.0 million compared to $55.4 million during the three months ended June 30, 2024.

The year-over-year increase was primarily driven by an increase in attendance due to the popularity of new film releases compared to the prior year and higher amounts of advertising income in other revenues related to an increase in discount rates for the significant financing component of the Amended ESA, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA.

These increases were partially offset by decreases in business interruption insurance recoveries, increases in general and administrative:

other expenses and increases in rent expense.

During the three months ended June 30, 2025, Adjusted EBITDA in the International markets was $8.2 million compared to $(16.9) million during the three months ended June 30, 2024.

The year-over-year increase was primarily driven by an increase in attendance due to the popularity of new film releases compared to the prior year and governmental assistance.

These increases were partially offset by increases in general and administrative:

other expenses and increases in rent expense.

During the three months ended June 30, 2025, Adjusted EBITDA in the U.S.

markets and International markets was $189.2 million compared to $38.5 million during the three months ended June 30, 2024, driven by the aforementioned factors impacting Adjusted EBITDA.

During the six months ended June 30, 2025, Adjusted EBITDA in the U.S.

markets was $123.6 million compared to $35.2 million during the six months ended June 30, 2024.

The year-over-year increase was primarily driven by an increase in attendance due to the popularity of new film releases compared to the prior year, higher amounts of advertising income in other revenues related to an increase in discount rates for the significant financing component of the Amended ESA, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA and decreases in rent expense and general and administrative:

other expenses.

During the three months ended March 31, 2025, Adjusted EBITDA in the U.S.

markets and International markets was $(58.0) million compared to $(21.2) million during the three months ended March 31, 2024, driven by the aforementioned factors impacting Adjusted EBITDA.

These increases were partially offset by decreases in business interruption insurance recoveries.

During the six months ended June 30, 2025, Adjusted EBITDA in the International markets was $7.6 million compared to $(17.9) million during the six months ended June 30, 2024.

The year-over-year increase was primarily driven by an increase in attendance due to the popularity of new film releases compared to the prior year, governmental assistance and increases in other revenues related to package ticket expirations.

These increases were partially offset by increases in general and administrative:

other expenses and increases in rent expense.

During the six months ended June 30, 2025, Adjusted EBITDA in the U.S.

markets and International markets was $131.2 million compared to $17.3 million during the six months ended June 30, 2024, driven by the aforementioned factors impacting Adjusted EBITDA.

LIQUIDITY AND CAPITAL RESOURCES

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Consequently, we typically generate higher revenues during such periods and experience higher working capital requirements following such periods.

We had working capital deficit (excluding restricted cash) as of March 31, 2025, and December 31, 2024 of $(925.5) million and $(846.1) million, respectively.

As of March 31, 2025 and December 31, 2024, working capital included operating lease liabilities of $532.4 million and $524.9 million, respectively, and deferred revenues of $412.0 million and $432.4 million, respectively.

As of March 31, 2025, we had cash and cash equivalents of $378.7 million.

We took action to lower our future interest expense of our fixed-rate debt through debt buybacks and enhanced

liquidity through equity issuances.

We had working capital deficit (excluding restricted cash) as of June 30, 2025, and December 31, 2024 of $(963.5) million and $(846.1) million, respectively.

As of June 30, 2025 and December 31, 2024, working capital included operating lease liabilities of $548.6 million and $524.9 million, respectively, and deferred revenues of $423.1 million and $432.4 million, respectively.

As of June 30, 2025, we had cash and cash equivalents of $423.7 million.

During the six months ended June 30, 2025, we took action to lower our future interest expense of our fixed-rate debt through debt buybacks and enhanced liquidity through equity issuances.

See Note 6 — Corporate Borrowings and Finance Lease Liabilities and Note 7—Stockholders’ Deficit in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

On July 24 2025, Muvico issued $857.0 million aggregate principal amount of New 2029 Notes in exchange for $590.0 million aggregate principal amount of Existing 7.5% Notes and $244.4 million of incremental, new money financing.

On the same day, Muvico also issued $194.4 million aggregate principal amount of New Exchangeable Notes in exchange for $194.4 million aggregate principal amount of Existing Exchangeable Notes.

The New Exchangeable Notes are not initially exchangeable into Common Stock but may become exchangeable subject to the conditions and on the terms described in the New Exchangeable Notes Indenture.

The principal amount of New Exchangeable Notes is subject to potential downward adjustment, depending on the trading price of the Company’s Common Stock for a period following the initial exchange.

We used the new money financing from the issuance of the New 2029 Notes to fully redeem our Senior Subordinated Notes due 2026 and our Second Lien Notes, and also to pay consent fees to the Consenting Term Loan Lenders.

See Note 13 — Subsequent Events in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information regarding these transactions.

We expect, from time to time, to continue to seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise.

Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

The amounts involved may be material and, to the extent equity is used, dilutive.

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In order to achieve sustainable net positive cash flows from operating activities and long-term profitability, we believe that revenues will need to increase to levels at least in line with pre-COVID-19 revenues.

North American box office grosses were down approximately 40% for the three months ended March 31, 2025, compared to the three months ended March 31, 2019.

North American box office grosses were down approximately 26% for the six months ended June 30, 2025, compared to the six months ended June 30, 2019.

Until such time as we are able to achieve sustainable net positive cash flows from operating activities, it is difficult to estimate our future cash burn rates and liquidity requirements.

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Cash Flows from Operating Activities

Net cash used in operating activities, as reflected in the condensed consolidated statements of cash flows, were $370.0 million and $188.3 million during the three months ended March 31, 2025 and March 31, 2024, respectively.

The increase in net cash used in operating activities was primarily due to an increase in cash used for working capital items due to a 20.2% increase in attendance in the fourth quarter of 2024 compared to the fourth quarter of 2023, which drove accounts payable higher at December 31, 2024 than December 31, 2023, a 10.1% decline in attendance in the first quarter of 2025 compared to the first quarter of 2024, increases in cash paid for interest, and decreases in cash received from vendor disputes, partially offset by declines in operating lease payments made in the first quarter of 2025 compared to the first quarter of 2024.

Net cash used in operating activities, as reflected in the condensed consolidated statements of cash flows, were $231.6 million and $222.9 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

The increase in net cash used in operating activities was primarily due to an increase in cash used for working capital items due to a 20.2% increase in attendance in the fourth quarter of 2024 compared to the fourth quarter of 2023, which drove accounts payable higher at December 31, 2024 than December 31, 2023, decreases in cash received from vendor disputes, decreases in lease incentives received, partially offset by a 8.3% increase in attendance in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 and increases in government assistance received.

Cash Flows from Investing Activities

Net cash used in investing activities, as reflected in the condensed consolidated statements of cash flows, were $46.9 million and $50.0 million during the three months ended March 31, 2025 and March 31, 2024, respectively.

Cash outflows from investing activities include capital expenditures of $47.0 million and $50.5 million during the three months ended March 31, 2025, and March 31, 2024, respectively.

Net cash used in investing activities, as reflected in the condensed consolidated statements of cash flows, were $95.6 million and $93.5 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

outflows from investing activities include capital expenditures of $96.5 million and $95.1 million during the six months ended June 30, 2025, and June 30, 2024, respectively.

We fund the costs of constructing, maintaining, and remodeling our theatres through existing cash balances, cash generated from operations, lease incentives, or capital raised, as necessary.

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Cash Flows from Financing Activities

Net cash provided by (used in) financing activities, as reflected in the condensed consolidated statements of cash flows, were $158.0 million and $(9.0) million during the three months ended March 31, 2025 and March 31, 2024, respectively.

Cash flows provided by financing activities during the three months ended March 31, 2025, were primarily due to net proceeds from equity issuances of $169.6 million, partially offset by the repurchase of Senior Subordinated Notes due 2025 of $1.3 million, principal payments under term loan borrowings of $5.0 million, and taxes paid for restricted unit withholdings of $4.4 million.

See Note 6—Corporate Borrowings and Finance Lease Liabilities and Note 7—Stockholders’ Deficit in the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for further information, including a summary of principal payments required and maturities of corporate borrowings as of March 31, 2025.

Cash flows provided by financing activities during the three months ended March 31, 2024, were primarily due to $5.0 million of scheduled term loan principal payments and taxes paid for restricted unit withholdings of $2.2 million.

Net cash provided by financing activities, as reflected in the condensed consolidated statements of cash flows, were $109.1 million and $227.3 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

Cash flows provided by financing activities during the six months ended June 30, 2025, were primarily due to net proceeds from equity issuances of $169.6 million, partially offset by maturity principal payments of our Senior Subordinated Notes due 2025 of $42.8 million, the repurchase of Senior Subordinated Notes due 2025 of $1.3 million, principal payments under term loan borrowings of $10.0 million, and taxes paid for restricted unit withholdings of $4.4 million.

Cash flows provided by financing activities during the six months ended June 30, 2024, were primarily due to net proceeds from equity issuances of $243.0 million, partially offset by scheduled principal payments under term loan borrowings of $10.0 million and taxes paid for restricted unit withholdings of $2.2 million.

Covenant Compliance

As of March 31, 2025, we believe that we were in full compliance with all agreements, including related covenants, governing our outstanding debt.

As of June 30, 2025, we believe that we were in full compliance with all agreements, including related covenants, governing our outstanding debt.

Formation of Unrestricted Subsidiaries

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At the same time, Muvico licensed the intellectual property back to Multi-Cinema for its continued use in the operation of its retained theatres and entered into a management agreement for Multi-Cinema to operate the theatres transferred to Muvico.

Muvico and Centertainment (collectively, the “Muvico Group”) are unrestricted subsidiaries under the indenture governing Holdings’ Existing First Lien Notes.

Muvico and Centertainment (collectively, the “Muvico Group”) are unrestricted subsidiaries under the indenture governing Holdings’ Existing 7.5% Notes.

Unrestricted Subsidiaries’ Financial Information and Operating Metrics

Pursuant to the indenture governing Holdings’ Existing First Lien Notes, the indenture governing Muvico’s Exchangeable Notes, and the New Term Loan Credit Agreement governing Holdings’ and Muvico’s New Term Loans, we are presenting the following financial information and operating metrics for the Muvico Group separately from Holdings and its restricted subsidiaries (the “Restricted Subsidiaries” and collectively with Holdings, the “AMC Group”).

AMC Theatres of UK Limited, which is an unrestricted subsidiary under the indenture governing Holdings’ Existing First Lien Notes has been included with the Restricted Subsidiaries for the purposes of the following presentation of financial information and operating metrics (this subsidiary is individually immaterial).

Pursuant to the indenture governing Holdings’ Existing 7.5% Notes, the indenture governing Muvico’s Existing Exchangeable Notes, and the credit agreement governing Holdings’ and Muvico’s term loans due 2029 (“Credit Agreement”), we are presenting the following financial information and operating metrics for the Muvico Group separately from Holdings and its restricted subsidiaries (the “Restricted Subsidiaries” and collectively with Holdings, the “AMC Group”).

AMC Theatres of UK Limited, which is an unrestricted subsidiary under the indenture governing Holdings’ Existing 7.5% Notes has been included with the Restricted Subsidiaries for the purposes of the following presentation of financial information and operating metrics (this subsidiary is individually immaterial).

The financial information presented for AMC Group and Muvico Group is presented on a standalone basis with discrete identification of the assets, liabilities, revenues and expenses associated with the Theatre Net Assets that were transferred to Muvico.

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The basis of this allocation is the amount we expect each party to pay.

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Subsidiaries/AMC

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Operating costs and expenses

Operating loss

Other expense (income), net:

Operating income

Other expense, net:

Other expense (income)

Interest expense:

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Investment income

Total other expense (income), net

Total other expense, net

Earnings (loss) before income taxes

Income tax provision (2)

Net earnings (loss)

Three Months Ended June 30, 2025

Subsidiaries/AMC

Net earnings (loss)

Other comprehensive income:

Unrealized foreign currency translation adjustments

Pension adjustments:

Net gain arising during the period

Other comprehensive income

Total comprehensive income

(1) This column provides the information required to be presented for (i) Holdings and its Restricted Subsidiaries under the indentures governing the Existing Exchangeable Notes and Existing 7.5% Notes and (ii) AMC Group under the Credit Agreement.

Transactions between Holdings and its restricted subsidiaries have been eliminated.

(2) Muvico is a disregarded entity for federal and state income tax purposes with all tax expense and deferred taxes recorded at the AMC Group level.

(3) Includes intercompany management fee revenues of $5.0 million recorded by AMCEH & Restricted Subsidiaries/AMC Group and intercompany license fee revenues of $3.7 million recorded by Muvico Group Unrestricted Subsidiaries.

Corresponding amounts of expense are included in general and administrative:

other for Muvico Group Unrestricted Subsidiaries and AMCEH & Restricted Subsidiaries/AMC Group.

Three Months Ended June 30, 2025

Subsidiaries/AMC

Key operating metrics:

Average ticket price

Attendance (in thousands) (1)

Number of screens operated (2)

Number of theatres operated (2)

Adjusted EBITDA (4)

(1) Includes consolidated theatres only and excludes screens offline due to construction.

(2) The screens and theatres of the Muvico Group are operated by Multi-Cinema pursuant to the management agreement.

(3) This column provides the information required to be presented for (i) Holdings and its Restricted Subsidiaries under the indentures governing the Existing Exchangeable Notes and Existing 7.5% Notes and (ii) AMC Group under the Credit Agreement.

(4) Below is a reconciliation of net earnings (loss) to Adjusted EBITDA for AMCEH & Restricted Subsidiaries/AMC Group and Muvico Group.

The reconciling items below have the same definitions and are of the same nature as of the reconciling items presented previously in Management’s Discussion and Analysis section of this Form 10-Q.

Three Months Ended June 30, 2025

Subsidiaries/AMC

Net earnings (loss)

Income tax provision

Interest expense

Depreciation and amortization

Certain operating expense

Equity in earnings of non-consolidated entities

Attributable EBITDA

Investment income

Other expense (income)

Merger, acquisition and other costs

Stock-based compensation expense

Adjusted EBITDA

Six Months Ended June 30, 2025

Subsidiaries/AMC

(In millions)

Food and beverage

Other theatre (3)

Total revenues

Operating costs and expenses

Film exhibition costs

Food and beverage costs

Operating expense, excluding depreciation and amortization below

General and administrative:

Merger, acquisition and other costs

Other, excluding depreciation and amortization below (3)

Depreciation and amortization

Operating costs and expenses

Operating income (loss)

Other expense, net:

Interest expense:

Corporate borrowings

Finance lease obligations

Intercompany interest expense

Non-cash NCM exhibitor services agreement

Intercompany interest income

Investment income

Total other expense, net

Loss before income taxes

Income tax provision (2)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Subsidiaries/AMC

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Unrealized foreign currency translation adjustments

Pension adjustments:

Net gain arising during the period

Other comprehensive income

Total comprehensive loss

(1) This column provides the information required to be presented for (i) Holdings and its Restricted Subsidiaries under the indentures governing the Exchangeable Notes and Existing First Lien Notes and (ii) AMC Group under the New Term Loan Credit Agreement.

Transactions between Holdings and its restricted subsidiaries have been eliminated.

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other for Muvico Group Unrestricted Subsidiaries and AMCEH & Restricted Subsidiaries/AMC Group.

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Subsidiaries/AMC

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(2) The screens and theatres of the Muvico Group are operated by Multi-Cinema pursuant to the management agreement.

(3) This column provides the information required to be presented for (i) Holdings and its Restricted Subsidiaries under the indentures governing the Exchangeable Notes and Existing First Lien Notes and (ii) AMC Group under the New Term Loan Credit Agreement.

(4) Below is a reconciliation of net earnings (loss) to Adjusted EBITDA for AMCEH & Restricted Subsidiaries/AMC Group and Muvico Group.

(4) Below is a reconciliation of net loss to Adjusted EBITDA for AMCEH & Restricted Subsidiaries/AMC Group and Muvico Group.

The reconciling items below have the same definitions and are of the same nature as of the reconciling items presented previously in Management’s Discussion and Analysis section of this Form 10-Q.

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Subsidiaries/AMC

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Adjusted EBITDA

As of March 31, 2025

As of June 30, 2025

Subsidiaries/AMC

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Commitments and contingencies

Stockholders’ deficit:

AMC Entertainment Holdings, Inc.'s stockholders' deficit:

Stockholders’ or member's equity (deficit):

Preferred stock

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Accumulated other comprehensive loss

Accumulated deficit

Total stockholders' deficit

Total liabilities and stockholders’ deficit

Accumulated earnings (deficit)

Total stockholders' or member's equity (deficit)

Total liabilities and stockholders’ or members equity (deficit)

(1) The cash held in bank accounts differs from the book balance due to deposits in transit, payments in transit, and certain cash equivalents.

(2) Intercompany receivables (payables) includes intercompany loans, fees receivable/payable pursuant to the management agreement and intellectual property license agreement, the intercompany receivable/payable created by allocating the New Term Loans borrowings between Holdings and Muvico, and other intercompany balances created due to the 2024 Refinancing Transactions.

(4) Muvico is a disregarded entity for federal and state income tax purposes with all tax expense and deferred taxes recorded at the AMC Group level.

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Subsidiaries/AMC

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Non-cash portion of stock-based compensation

Equity in earnings from non-consolidated entities, net of distributions

Equity in earnings of non-consolidated entities, net of distributions

Lease incentives

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Capital expenditures

Proceeds from disposition of long-term assets

Net cash used in investing activities

1 unchanged sentence

Net proceeds from equity issuances

Principal payments under Senior Subordinated Notes due 2025

Scheduled principal payments under Term Loan borrowings

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Cash and cash equivalents and restricted cash at end of period

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis