What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-05 compared with 2025-08-11 · 433 added, 356 removed, 591 unchanged (57% of the section changed)

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● the risks and uncertainties relating to the sufficiency of our existing cash and cash equivalents and available borrowing capacity to fund operations and satisfy obligations including cash outflows for planned capital expenditures currently and through the next twelve months.

In order to achieve net positive cash flows from operating activities, revenues will need to increase from current levels to levels at least in line with pre-COVID-19 revenues.

In order to achieve net

positive cash flows from operating activities, revenues will need to increase from current levels to levels at least in line with pre-COVID-19 revenues.

However, there remain significant risks that may negatively impact revenues and attendance levels, including changes to movie studios release schedules (including as a result of production delays and delays to the release of movies caused by labor stoppages) and direct to streaming or other changing movie studio practices.

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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;

● the impact of changing movie-going behavior of consumers;

● the risk that the North American and international box office in the near term will not recover sufficiently, resulting in higher cash burn and the need to seek additional financing, which may not be available at favorable terms, or at all;

● the risk that the North American and international box office in the near term will not recover sufficiently, resulting in continued cash burn and the need to seek additional financing, which may not be available at favorable terms, or at all;

● risks and uncertainties relating to our significant indebtedness, including our borrowings and our ability to meet our debt covenants;

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● review by antitrust authorities in connection with acquisition opportunities;

● risks relating to the incurrence of legal liability, including costs associated with the ongoing securities class action lawsuits;

● risks relating to the incurrence of legal liability;

● dependence on key personnel for current and future performance and our ability to attract and retain senior executives and other key personnel, including in connection with any future acquisitions;

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

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

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

As of September 30, 2025, we owned, operated or had interests in 856 theatres and 9,636 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 June 30, 2025 and June 30, 2024:

International Markets

As of June 30,

As of September 30,

Number of theatres:

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Premium seating

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 have signed a letter of intent with CJ 4DPLEX to open new 4DX and SCREENX locations in our U.S.

The first deployment is expected to open by early 2026.

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

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allows members to earn additional points and other exclusive benefits.

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!

As of September 30, 2025, we had a combined total of approximately 37.7 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 six months ended June 30, 2025, our AMC Stubs® members represented approximately 49% of AMC U.S.

During the nine months ended September 30, 2025, our AMC Stubs® members represented approximately 51% of AMC U.S.

markets attendance.

We currently have approximately 19 million members in our various International loyalty programs.

We currently have approximately 19 million total members in our various International loyalty & subscription programs.

Business” in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional discussion and information of our screens, seating concepts, amenities, loyalty programs and other marketing initiatives.

Holders of Shares

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.

As of September 30, 2025, there were 512,943,561 shares of our Common Stock outstanding.

Of those outstanding shares, approximately 1.8 million shares (or 0.4%) were held by 14,296 registered holders with our transfer agent and approximately 511.1 million (or 99.6%) were held by Cede & Co on behalf of the Depository Trust & Clearing Corporation, commonly referred to as held in “street name” for beneficial holders owning shares through bank or brokerage accounts.

Critical Accounting Estimates

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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 Six Months Ended June 30, 2025

Material changes to our critical accounting estimates from what is described in our Form 10-K are described below:

Derivative Fair Values.

We remeasure the bifurcated embedded derivatives related to our Existing Exchangeable Notes and New Exchangeable Notes at fair value each reporting period with changes in fair value recorded in the condensed consolidated statements of operations.

We have obtained independent third-party valuation studies to assist us in determining fair value.

Critical estimates .

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

Existing Exchangeable Notes .

Our valuation studies use binomial lattice models and are based on significant inputs not observable in the market and thus represent level 3 measurements within the fair value measurement hierarchy.

The binomial lattice models consist of simulated Common Stock prices from the valuation date to the maturity of the Existing Exchangeable Notes.

The significant inputs used to value the derivative include the initial share price of our Common Stock, the volatility of the share price, time to maturity, risk-free interest rate, credit spread, and the discount yield.

The volatility of our Common Stock, the Common Stock price at the end of each reporting period, and the remaining amount of time until maturity of the Existing Exchangeable Notes are key inputs for the estimation of fair value that are expected to change each reporting period.

New Exchangeable Notes .

Our valuation studies use a combination of Monte Carlo simulations, binomial lattice models, and discounted cash flow models.

The models are based on significant inputs not observable in the market and thus represent level 3 measurements within the fair value measurement hierarchy.

The Monte Carlo simulations use repeated random sampling to simulate a wide range of possible outcomes.

The binomial lattice approach consists of simulated Common Stock prices from the valuation date to the maturity of the New Exchangeable Notes.

The volatility of our Common Stock, the Common Stock price at the end of each reporting period, and the remaining amount of time until maturity of the New Exchangeable Notes are key inputs for the estimation of fair value that are expected to change each reporting period.

Assumptions and judgment.

Selecting the appropriate method and model to use in the valuation of the bifurcated embedded derivatives associated with the Existing Exchangeable Notes and New Exchangeable Notes requires judgment and careful consideration of common valuation practice for similar instruments.

Selection of significant assumptions such as volatility and the discount yield also requires judgment and both inputs exhibit a greater degree of subjectivity than less observable inputs such as the risk-free rate.

Impact if actual results differ from assumptions.

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

Our Current Estimates and Changes in those Estimates .

During the three and nine months ended September 30, 2025, we recorded other income related to decreases in our bifurcated embedded derivatives’ estimated fair value of $10.9 million and $52.1 million, respectively.

A hypothetical 10% increase in the fair value of the derivatives would have resulted in an increase of other expense of approximately $9.2 million.

Similarly, a hypothetical 10% decrease in

the fair value of the derivatives would have resulted in a decrease to other expense of approximately $9.2 million.

We expect there will be future changes in the fair value for our derivatives and that the related amounts recorded as income or expense may be material.

See Note 6—Corporate Borrowings and Finance Lease Liabilities and Note 9—Fair Value Measurements in the Notes to the Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for further information.

Significant Events—For the Nine Months Ended September 30, 2025

2025 Debt Refinancing.

During the three and nine months ended September 30, 2025, we completed a series of refinancing transactions with certain holders of our Existing 7.5% Notes, certain holders of the Existing Exchangeable Notes, and certain lenders of our term loans outstanding under our credit agreement.

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 further information regarding these transactions.

NCM ESA Amendment.

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Share Issuances.

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”.

During the nine months ended September 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 nine months ended September 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)

June 30, 2025

September 30, 2025

Shares issued through at-the-market offering

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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.

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.

Significant Events—For the Nine Months Ended September 30, 2024

Debt Repurchases and Exchanges.

The table below summarizes the various cash debt repurchase transactions, debt for equity exchange transactions, and cash and debt for equity exchange transactions that occurred during the nine months ended September 30, 2024.

The debt for equity transactions were treated as early extinguishments of debt.

In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged.

The below table summarizes the debt for equity exchanges.

Aggregate Principal

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Extinguishment

Cash debt repurchase transactions:

5.75% Senior Subordinated Notes due 2025

Second Lien Notes due 2026

Total cash debt repurchase transactions

Debt for equity exchange transactions:

Second Lien Notes due 2026

Total debt for equity exchange transactions

Cash and debt for equity exchange transactions:

5.75% Senior Subordinated Notes due 2025

5.875% Senior Subordinated Notes due 2026

Second Lien Notes due 2026

Total cash and debt for equity exchange transactions

Total debt repurchases and exchanges

Vendor Dispute.

On January 26, 2024, we executed an agreement to collect $37.5 million as resolution of a dispute with a vendor.

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

The proceeds, net of legal costs, were recorded to other income during the nine months ended September 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.

During the nine months ending September 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 nine months ended September 30, 2024.

2024 Debt Refinancing.

During the three and nine months ended September 30, 2024, we completed a series of refinancing transactions with two creditor groups.

Operating Results

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Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In millions)

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Food and beverage

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Operating income (loss)

Other expense (income), net:

Other expense, net:

Other expense (income)

Interest expense:

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Investment income

Total other expense (income), net

Total other expense, net

Loss before income taxes

Income tax provision

Income tax provision (benefit)

* Percentage change in excess of 100%

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Operating Data:

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Screen additions

Screen acquisitions

Screen dispositions

Screen construction (closures), net

Screen construction openings (closures), net

Average screens (1)

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Three Months Ended

September 30,

(In millions)

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Earnings (loss) before income taxes

Income tax provision

Income tax provision (benefit)

Net earnings (loss)

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Three Months Ended

September 30,

Segment Operating Data:

Screen additions

Screen acquisitions

Screen dispositions

Screen construction (closures), net

Screen construction openings (closures), net

Average screens (1)

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International Markets

Six Months Ended

Nine Months Ended

September 30,

(In millions)

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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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Loss before income taxes

Income tax provision

Income tax provision (benefit)

International Markets

Six Months Ended

Nine Months Ended

September 30,

Segment Operating Data:

Screen additions

Screen acquisitions

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Segment Information

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.

Our historical results of operations for the three and nine months ended September 30, 2025 and September 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 June 30, 2025, Compared to the Three Months ended June 30, 2024

Results of Operations—For the Three Months ended September 30, 2025, Compared to the Three Months ended September 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.

Total revenues decreased $48.6 million, or 3.6%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Admissions revenues decreased $29.1 million, or 3.9%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to a decrease in attendance of 10.3% from 65.1 million patrons to 58.4 million patrons, partially offset by a 7.2% increase in average ticket price and increase in our market share in our U.S.

Attendance decreased 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, increases in attendance for IMAX and other PLF screen volumes, increases in foreign currency translation rates and partially offset by decreases in 3D attendance.

markets the market share increase was driven by our loyalty program initiatives, discount days, and the interplay between the film slate and our geographic theatre mix.

Food and beverage revenues decreased $38.6 million, or 7.9%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in attendance, partially offset by the increase in food and beverage per patron.

Food and beverage per patron increased 2.8% from $7.53 to $7.74 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.

Total other theatre revenues increased $19.1 million, or 16.7%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to increases in advertising income, co-brand credit card revenue, retail food and beverage income, retail merchandise 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.

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Operating costs and expenses.

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.

Operating costs and expenses decreased $12.6 million, or 1.0%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Film exhibition costs decreased $29.0 million, or 7.6%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in admissions revenues and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 49.3% for the three months ended September 30, 2025, compared to 51.2% for the three months ended September 30, 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 $1.1 million, or 1.2%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The decrease in food and beverage costs was primarily due to the decrease in food and beverage revenues, partially offset by the increase in food and beverage cost percentage.

As a percentage of food and beverage revenues, food and beverage costs were 19.6% for the three months ended September 30, 2025, compared to 18.3% for the three months ended September 30, 2024.

Operating expense increased by $10.1 million, or 2.2%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in operating expense was primarily due to increases in retail merchandise costs, premium format expense, salaries expense, insurance expense and the increase in foreign currency translation rates.

As a percentage of revenues, operating expense was 35.7% for the three months ended September 30, 2025, compared to 33.7% for the three months ended September 30, 2024.

The deterioration in operating expense as a percentage of revenues is primarily due to the operating leverage lost as attendance decreases.

Rent expense increased $7.7 million, or 3.6%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to increases in foreign currency translation rates.

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 $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.

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

Other general and administrative expense increased $1.1 million, or 2.0%, during the three months ended September 30, 2025, compared to the three months ended September 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, higher legal costs and increases in foreign currency translation rates, partially offset by lower insurance costs and professional and consulting expense.

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.

Depreciation and amortization decreased $1.4 million, or 1.7%, during the three months ended September 30, 2025, compared to the three months ended September 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 expense (income).

Other expense of $194.8 million during the three months ended September 30, 2025 was primarily due to a $103.3 million loss on extinguishment of $337.4 million aggregate principal amount of our Existing Exchangeable Notes, a $99.0 million loss on extinguishment of $590.0 million aggregate principal amount of our Existing 7.5% Notes, $9.0 million in foreign currency transaction losses and $2.1 million in term loan modification third party fees, partially offset by $(9.5) million of income related to the decrease in fair value of the derivative liability for the embedded derivative features in the New Exchangeable Notes, $(6.6) million of gain on the extinguishment of our Second Lien Notes due 2026 and $(1.4) million of income related to the decrease in the fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes.

Other income of $(22.8) million during the three months ended September 30, 2024 was primarily due to $(73.5) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, $(21.5) million in foreign currency transaction gains, $(14.9) million of recoveries related to the Shareholder Litigation, $(5.2) million in equity in earnings related to non-consolidated entities, gain on extinguishment of debt of $(1.3) million related to the redemption of $9.57 million aggregate principal amount of the Senior Subordinated Notes due 2026, and gain on extinguishment of debt of $(0.5) million related to the redemption of $(15.6) million aggregate principal amount of Senior Subordinated Notes due 2025, partially offset by a loss on extinguishment of debt of $52.6 million related to the redemption of $613.65 million aggregate principal amount of the Second Lien Notes and $41.0 million of third party costs related to the modification of the Existing Term Loans.

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.

Interest expense increased $19.7 million to $139.3 million for the three months ended September 30, 2025, compared to $119.6 million during the three months ended September 30, 2024, primarily due to increased interest expense of $21.8 million on the New First Lien Notes issued on July 24, 2025, $9.6 million related to higher discount rates on the significant financing component of the Amended ESA, $4.3 million on the New Exchangeable Notes issued on July 1, 2025 and $2.2 million on the New Term Loans compared to the Existing Term Loans partially offset by declines in interest expense of $8.5 million on the Existing First Lien Notes due 2029 due to redemptions of $590.0 million aggregate principal amount on July 24, 2025, $5.0 million on the Existing Exchangeable Notes issued on July 22, 2024 due to $337.4 million aggregate principal amount redemptions on July 1, 2025, $3.8 million on the Second Lien Notes due to redemptions of the remaining principal balances, $1.4 million on the Senior Subordinated Notes due 2025 due to redemptions of the remaining principal balances and $0.5 million on the Senior Subordinated Notes due 2026 due to redemptions of the remaining 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.

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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.

Investment income was $(1.3) million for the three months ended September 30, 2025, compared to income of $(3.2) million for the three months ended September 30, 2024.

Investment income in the current year includes $(7.3) million of increase in estimated fair value of our investment in common shares of Hycroft and $(2.0) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft and interest income of $(2.3) million, partially offset by an impairment charge of $10.3 million related to our

investment in an equity security without a readily determinable fair value measured at cost less any impairments.

Investment income in the prior year includes interest income of $(4.6) million, $(0.3) million of increase in estimated fair value of our investment in common shares of Hycroft, partially offset by $1.7 million of decrease in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Income tax provision (benefit).

The income tax provision was $1.2 million, compared to a benefit of $(1.1) million, for the three months ended September 30, 2025, and September 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.

Net loss was $298.2 million and $20.7 million during the three months ended September 30, 2025, and September 30, 2024, respectively.

Net loss during the three months ended September 30, 2025 compared to net loss for the three months ended September 30, 2024 was negatively impacted by decreases in other income due primarily to losses on extinguishment of corporate borrowings during the current period, increases in interest expense, the decrease in attendance as a result of the popularity of new film releases compared to the prior year, increases in rent expense, increases in general and administrative expenses, decreases in investment income and increases in income tax provision, partially offset by decreases in depreciation and amortization expense.

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.

Total revenues decreased $49.4 million, or 4.7%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Admissions revenues decreased $28.4 million, or 5.0%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to a decrease in attendance of 9.9% from 46.9 million patrons to 42.3 million patrons, partially offset by a 5.5% increase in average ticket price and increase in our market share.

Attendance decreased 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, increases in attendance for IMAX and other PLF screen volumes, partially offset by decreases in 3D attendance.

markets the market share increase was driven by our loyalty program initiatives, discount days, and the interplay between the film slate and our geographic theatre mix

Food and beverage revenues decreased $36.9 million, or 9.3%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in attendance, partially offset by the increase in food and beverage per patron.

Food and beverage per patron increased 0.7% from $8.49 to $8.55 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.

Total other theatre revenues increased $15.9 million, or 18.8%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to increases in advertising income, co-brand credit card revenue, retail food and beverage income and retail merchandise income.

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.

Operating costs and expenses decreased $20.6 million, or 2.1%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Film exhibition costs decreased $26.5 million, or 8.5%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in admissions revenues and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 52.3% for the three months ended September 30, 2025, compared to 54.4% for the three months ended September 30, 2024.

Food and beverage costs decreased $1.6 million, or 2.4%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The decrease in food and beverage costs was primarily due to the decrease in food and beverage revenues, partially offset by the increase in food and beverage cost percentage.

As a percentage of food and beverage revenues, food and beverage costs were 18.1% for the three months ended September 30, 2025, compared to 16.8% for the three months ended September 30, 2024.

Operating expense increased by $7.8 million, or 2.3%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in operating expense was primarily due to increases in retail merchandise costs, premium format expense, salaries expense and insurance expense.

As a percentage of revenues, operating expense was 35.1% for the three months ended September 30, 2025, compared to 32.8% for the three months ended September 30, 2024.

The deterioration in operating expense as a percentage of revenues is primarily due to the operating leverage lost as attendance decreases.

Rent expense increased $2.7 million, or 1.7%, during the three months ended September 30, 2025, compared to the three months ended September 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.

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

Other general and administrative expense decreased $1.0 million, or 2.9%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to lower insurance costs and professional and consulting expense and, partially offset by 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 higher legal costs.

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.

Depreciation and amortization decreased $2.0 million, or 3.2%, during the three months ended September 30, 2025, compared to the three months ended September 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.

Other expense of $186.2 million during the three months ended September 30, 2025 was primarily due to a $103.3 million loss on extinguishment of $337.4 million aggregate principal amount of our Existing Exchangeable Notes, a $99.0 million loss on extinguishment of $590.0 million aggregate principal amount of our Existing 7.5% Notes, and $2.1 million in term loan modification third party fees, partially offset by $(9.5) million of income related to the decrease in fair value of the derivative liability for the embedded derivative features in the New Exchangeable Notes, $(6.6) million of gain on the extinguishment of our Second Lien Notes due 2026 and $(1.4) million of income related to the decrease in the fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes.

Other income of $(0.2) million during the three months ended September 30, 2024 was primarily due to $(73.5) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, $(14.9) million of recoveries related to the Shareholder Litigation, $(4.5) million in equity in earnings related to non-consolidated entities, gain on extinguishment of debt of $(1.3) million related to the redemption of $9.57 million aggregate principal amount of the Senior Subordinated Notes due 2026, and gain on extinguishment of debt of $(0.5) million related to the redemption of $15.6 million aggregate principal amount of Senior Subordinated Notes due 2025, partially offset by a loss on extinguishment of debt of $52.6 million related to the redemption of $613.65 million aggregate principal amount of the Second Lien Notes and $41.0 million of third party costs related to the modification of the Existing Term Loans .

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.

Interest expense increased $19.0 million to $122.5 million for the three months ended September 30, 2025, compared to $103.5 million during the three months ended September 30, 2024, primarily due to increased interest expense of $21.8 million on the New First Lien Notes issued on July 24, 2025, $9.6 million related to higher discount rates on the significant financing component of the Amended ESA, $4.3 million on the New Exchangeable Notes issued on July 1, 2025 and $2.2 million on the New Term Loans compared to the Existing Term Loans, partially offset by declines in interest expense of $8.5 million on the Existing First Lien Notes due 2029 due to redemptions of $590.0 million aggregate principal amount on July 24, 2025, $5.0 million on the Existing Exchangeable Notes issued on July 22, 2024 due to $337.4 million aggregate principal amount redemptions on July 1, 2025, $3.8 million on the Second Lien Notes due to redemptions of the remaining principal balances, $1.4 million on the Senior Subordinated Notes due 2025 due to redemptions of the remaining principal balances and $0.5 million on the Senior Subordinated Notes due 2026 due to redemptions of the remaining principal balances.

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 $(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.

Investment income was $(1.0) million for the three months ended September 30, 2025, compared to income of $(3.0) million for the three months ended September 30, 2024.

and interest income of $(2.0) million, partially offset by an impairment charge of $10.3 million related to our investment in an equity security without a readily determinable fair value measured at cost less impairments.

Investment income in the prior year includes $(4.4) million of interest income, $(0.3) million of increase in estimated fair value of our investment in common shares of Hycroft, partially offset by $1.7 million of decrease in estimated fair value of our investment in warrants to purchase common shares of Hycroft.

Income tax provision (benefit).

The income tax provision was $0.9 million, compared to a benefit of $(1.9) million, for the three months ended September 30, 2025, and September 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.

Net loss was $262.9 million and $23.9 million during the three months ended September 30, 2025, and September 30, 2024, respectively.

Net loss during the three months ended September 30, 2025 compared to net loss for the three months ended September 30, 2024 was negatively impacted by decreases in other income due primarily to losses on extinguishment of corporate borrowings during the current period, increases in interest expense, the decrease in attendance as a result of the popularity of new film releases compared to the prior year, increases in rent expense, decreases in investment income and increases in income tax provision, partially offset by decreases in general and administrative expense and depreciation and amortization expense.

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.

Total revenues increased $0.8 million, or 0.3%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Admissions revenues decreased $0.7 million, or 0.4%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to a decrease in attendance of 11.4% from 18.2 million patrons to 16.1 million patrons, partially offset by a 12.4% increase in average ticket price.

Attendance decreased 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 and increases in foreign currency translation rates.

Food and beverage revenues decreased $1.7 million, or 1.8%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in attendance, partially offset by the increase in food and beverage per patron.

Food and beverage per patron increased 10.7% from $5.07 to $5.61 primarily due to increases in foreign currency translation rates, increases in average prices, and the percentage of guests making transactions.

Total other theatre revenues increased $3.2 million, or 10.9%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to increases in 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.

Operating costs and expenses increased $8.0 million, or 2.7%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Film exhibition costs decreased $2.5 million, or 3.6%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to the decrease in admissions revenues due to the factors discussed above and lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 39.6% for the three months ended September 30, 2025, compared to 40.9% for the three months ended September 30, 2024.

The decrease in the percentage of film exhibition cost 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 increased $0.5 million, or 2.2%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in food and beverage costs was primarily due to the increase in food and beverage cost percentage, partially offset by the decrease in food and beverage revenues due to the factors discussed above.

As a percentage of food and beverage revenues, food and beverage costs were 25.7% for the three months ended September 30, 2025, compared to 24.6% for the three months ended September 30, 2024.

Operating expense increased by $2.3 million, or 2.1%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

The increase in operating expense was primarily due to increases in foreign currency translation rates, partially offset by declines in property tax expense.

As a percentage of revenues, operating expense was 37.8% for the three months ended September 30, 2025, compared to 37.1% for the three months ended September 30, 2024.

The deterioration in operating expense as a percentage of revenues is

primarily due to the operating leverage lost as attendance decreases.

Rent expense increased $5.0 million, or 9.0%, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to increases in foreign currency translation rates.

Other general and administrative expense increased $2.1 million, or 10.6%, during the three months ended September 30, 2025, compared to the three months ended September 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.

Depreciation and amortization increased $0.6 million, or 3.2%, during the three months ended September 30, 2025, compared to the three months ended September 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 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.

Other expense of $8.6 million during the three months ended September 30, 2025 was primarily due to $9.0 million in foreign currency transaction losses.

Other income of $(22.6) million during the three months ended September 30, 2024 was primarily due to foreign currency transaction gains of $(21.9) million and equity in earnings of non-consolidated entities of $(0.7) 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.

Interest expense increased $0.7 million to $16.8 million for the three months ended September 30, 2025, compared to $16.1 million during the three months ended September 30, 2024, primarily due to increased interest expense 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 was $(0.3) million for the three months ended September 30, 2025, compared to investment income of $(0.2) million for the three months ended September 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.

The income tax provision was $0.3 million and $0.8 million for the three months ended September 30, 2025, and September 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

Net earnings (loss).

Net earnings (loss) was $(35.3) million and $3.2 million during the three months ended September 30, 2025, and September 30, 2024, respectively.

Net loss during the three months ended September 30, 2025 compared to net earnings for the three months ended September 30, 2024 was negatively impacted by decreases in other income due primarily to foreign currency transaction losses, increases in finance lease interest expense, the decrease in attendance as a result of the popularity of new film releases compared to the prior year, increases in rent expense, increases in general and administrative expenses, and increases in depreciation and amortization expense, partially offset by increases in investment income and decreases in income tax provision.

Results of Operations—For the Nine Months ended September 30, 2025 Compared to the Nine Months ended September 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.

Total revenues increased $229.8 million, or 6.9%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Admissions revenues increased $112.1 million, or 6.1%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to an increase in average ticket price of 5.2%, an increase in attendance of 0.8% from 161.7 million patrons to 163.1 million patrons, and increase in our market share in our U.S.

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

Attendance increased in U.S.

markets due to the popularity of film product compared to the prior year.

markets the market share increase was driven by our loyalty program initiatives, discount days, and the interplay between the film slate and our geographic theatre mix.

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

Food and beverage revenues increased $56.1 million, or 4.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to the increase in food and beverage per patron and increase in attendance.

Food and beverage per patron increased 3.8% from $7.29 to $7.57 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.

Total other theatre revenues increased $61.6 million, or 19.7%, during the nine months ended September 30, 2025, compared to the nine months ended September 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, co-brand credit card revenue, retail food and beverage income, retail merchandise income and increases in foreign currency translation rates.

As a result of our Amended ESA, advertising income increased from the prior year by $10.4 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.

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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.

Operating costs and expenses increased $163.3 million, or 4.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Film exhibition costs increased $56.3 million, or 6.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to the increase in admissions revenues due to the factors discussed above and higher film rental terms.

As a percentage of admissions revenues, film exhibition costs were 48.7% for the nine months ended September 30, 2025, compared to 48.6% for the nine months ended September 30, 2024.

The increase in film exhibition cost percentage is primarily due to the concentration of box office revenues in U.S.

markets in higher grossing films in the current year, which typically results in higher film exhibition costs.

Food and beverage costs increased $19.3 million, or 8.7%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

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

As a percentage of food and beverage revenues, food and beverage costs were 19.6% for the nine months ended September 30, 2025, compared to 18.9% for the nine months ended September 30, 2024.

Operating expense increased by $78.4 million, or 6.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

As a percentage of revenues, operating expense was 37.0% for the nine months ended September 30, 2025, compared to 37.2% for the nine months ended September 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.

Rent expense increased $5.5 million, or 0.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to increases in foreign currency translation rates, partially offset by a decrease in average screens of 2.3%.

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.

Merger, acquisition, and other costs $3.2 million during the nine months ended September 30, 2025, compared to $0.1 million during the nine months ended September 30, 2024.

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

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.

Other general and administrative expense increased $8.6 million, or 5.4%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

Depreciation and amortization.

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 $(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.

Depreciation and amortization decreased $7.9 million, or 3.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 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 expense (income).

Other expense of $103.9 million during the nine months ended September 30, 2025 was primarily due to a $103.3 million loss on extinguishment of $337.4 million aggregate principal amount of our Existing Exchangeable Notes, a $99.0 million loss on extinguishment of $590.0 million aggregate principal amount of our Existing 7.5% Notes and $2.1 million in term loan modification third party fees, partially offset by $(42.6) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, $(27.9) million in foreign currency transaction gains, $(10.5) million of governmental assistance, $(9.5) million of income related to the decrease in fair value of the derivative liability for the embedded derivative features in the New Exchangeable Notes, $(6.6) million of gain on the extinguishment of our Second Lien Notes due 2026 and $(4.5) million of equity in earnings of non-consolidated entities.

Other income of $(173.8) million during the nine months ended September 30, 2024 was primarily due to $(73.5) million of income related to the decrease in fair value of the embedded conversion feature in the Existing Exchangeable Notes, a gain on extinguishment of debt of $(38.5) million related to the redemption of $805.0 million aggregate principal amount of the Second Lien Notes, the favorable settlement of a vendor dispute of $(36.2) million, $(34.0) million of recoveries related to the Shareholder Litigation, $(18.9) million of foreign currency transaction gains, $(9.9) million of equity in earnings of non-consolidated entities and $(3.6) million of other settlement proceeds, partially offset by $41.0 million of third party costs related to the modification of the Existing Term Loans.

Interest expense.

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.

Interest expense increased $68.2 million to $388.0 million for the nine months ended September 30, 2025, compared to $319.8 million during the nine months ended September 30, 2024, primarily due to increased interest expense of $39.4 million on the New Term Loans compared to the Existing Term Loans, $21.8 million on the New First Lien Notes issued on July 24, 2025, $18.6 million related to higher discount rates on the significant financing component of the Amended ESA, $16.6 million on the Existing Exchangeable Notes issued on July 22, 2024, $4.3 million on the New Exchangeable Notes issued on July 1, 2025, partially offset by declines in interest expense of $21.7 million on the Second Lien Notes due to redemptions of the remaining principal balances, $8.4 million on the Existing First Lien Notes due 2029 due to redemptions of $590.0 million aggregate principal amount on July 24, 2025, $3.2 million on the Senior Subordinated Notes due 2025 due to redemptions of the remaining principal balances and $0.8 million on the Senior Subordinated Notes due 2026 due to redemptions of the remaining 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.

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Investment income.

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 $(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.

Investment income was $(8.4) million for the nine months ended September 30, 2025, compared to $(14.4) million for the nine months ended September 30, 2024.

Investment income in the current year includes interest income of $(6.9) million, $(9.6) million of increase in estimated fair value of our investment in common shares of Hycroft, and $(2.2) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft, partially offset by an impairment charge of $10.3 million related to our investment in an equity security without a readily determinable fair value measured at cost less any impairments.

Investment income in the prior year includes interest income of $(16.1) million and $(0.2) million of increase in the estimated fair value of our investment in common shares of Hycroft, partially offset by $1.9 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 $2.8 million and $2.5 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

The income tax provision was $4.0 million and $1.4 million for the nine months ended September 30, 2025 and September 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 $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.

Net loss was $505.0 million and $217.0 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.

Net loss during the nine months ended September 30, 2025 compared to net loss for the nine months ended September 30, 2024 was negatively impacted by decreases in other income due to losses on extinguishment of corporate borrowings during the current period and gains on extinguishment of corporate borrowings and legal settlements and recoveries during the prior period, increases in rent, increases in general and administrative expenses, 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 and decreases in depreciation and amortization.

Theatrical Exhibition—U.S.

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.

Total revenues increased $176.8 million, or 6.9%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Admissions revenues increased $91.4 million, or 6.6%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to a 4.7% increase in average ticket price, an increase in attendance of 1.9% from 113.9 million patrons to 116.1 million patrons, and an increase in our market share in our U.S.

The increase in average ticket price was primarily due to increased ticket prices for all formats and increases in attendance for 3D, IMAX and other PLF screens.

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.

markets the market share increase was driven by our loyalty program initiatives, discount days, and the interplay between the film slate and our geographic theatre mix.

Food and beverage revenues increased $41.2 million, or 4.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to the increase in food and beverage per patron and the increase in attendance.

Food and beverage per patron increased 2.4% from $8.33 to $8.53 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.

Total other theatre revenues increased $44.2 million, or 19.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to increases in income from ticket fees due to the increase in attendance, advertising income, co-brand credit card revenue, retail food and beverage income and retail merchandise income.

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Operating costs and expenses.

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.

Operating costs and expenses increased $115.4 million, or 4.5%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Film exhibition costs increased $48.6 million, or 6.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 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 51.7% for the nine months ended September 30, 2025, compared to 51.6% for the nine months ended September 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.

Food and beverage costs increased $13.4 million, or 8.1%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

As a percentage of food and beverage revenues, food and beverage costs were 18.1% for the nine months ended September 30, 2025, compared to 17.5% for the nine months ended September 30, 2024.

Operating expense increased by $59.0 million, or 6.4%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

As a percentage of revenues, operating expense was 36.0% for the nine months ended September 30, 2025, compared to 36.2% for the nine months ended September 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%.

Rent expense decreased $0.3 million, or 0.1%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to a decrease in average screens of 2.2 %.

Merger, acquisition, and other costs.

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.

Merger, acquisition, and other costs were $3.2 million during the nine months ended September 30, 2025, compared to $0.1 million during the nine months ended September 30, 2024.

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

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.

Other general and administrative expense increased $0.6 million, or 0.6%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

Depreciation and amortization.

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 $(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.

Depreciation and amortization decreased $9.0 million, or 4.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 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 $143.1 million during the nine months ended September 30, 2025 was primarily due to a $103.3 million loss on extinguishment of $337.4 million aggregate principal amount of our Existing Exchangeable Notes, a $99.0 million loss on extinguishment of $590.0 million aggregate principal amount of our Existing 7.5% Notes and $2.1 million in term loan modification third party fees, partially offset by $(42.6) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, $(9.5) million of income related to the decrease in fair value of the derivative liability for the embedded derivative features in the New Exchangeable Notes, $(6.6) million of gain on the extinguishment of our Second Lien Notes due 2026 and $(4.0) million of equity in earnings of non-consolidated entities.

Other income of $(117.9) million during the nine months ended September 30, 2024 was primarily due to $(73.5) million of income related to the decrease in fair value of the derivative liability for the embedded conversion feature in the Existing Exchangeable Notes, a gain on extinguishment of debt of $(38.5) million related to the redemption of $805.0 million aggregate principal amount of the Second Lien Notes, $(34.0) million of recoveries related to the Shareholder Litigation, $(10.1) million of equity in earnings of non-consolidated entities and $(3.6) million of other settlement proceeds, partially offset by $41.0 million of third party costs related to the modification of the Existing Term Loans.

Interest expense.

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.

Interest expense increased $ 65.7 million to $338.2 million for the nine months ended September 30, 2025, compared to $272.5 million during the nine months ended September 30, 2024, primarily due to increased interest expense of $39.4 million on the New Term Loans compared to the Existing Term Loans, $21.8 million on the New First Lien Notes issued on July 24, 2025, $18.6 million related to higher discount rates on the significant financing component of the Amended ESA, $16.6 million on the Existing Exchangeable Notes issued on July 22, 2024, $4.3 million on the New Exchangeable Notes issued on July 1, 2025, partially offset by declines in interest expense of $21.7 million on the Second Lien Notes due to redemptions of the remaining principal balances, $8.4 million on the Existing First Lien Notes due 2029 due to redemptions of $590.0 million aggregate principal amount on July 24, 2025, $3.2 million on the Senior Subordinated Notes due 2025 due to redemptions of the remaining principal balances and $0.8 million on the Senior Subordinated Notes due 2026 due to redemptions of the remaining 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.

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Investment income.

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 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 $1.4 million and $1.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

Investment income was $(7.9) million for the nine months ended September 30, 2025, compared to income of $(13.0) million for the nine months ended September 30, 2024.

Investment income in the current year includes interest income of $(6.4) million, $(9.6) million of increase in estimated fair value of our investment in common shares of Hycroft and $(2.2) million of increase in estimated fair value of our investment in warrants to purchase common shares of Hycroft, partially offset by an impairment charge of $10.3 million related to our investment in an equity security without a readily determinable fair value measured at cost less any impairments.

Investment income in the prior year includes interest income of $(14.7) million and $(0.2) million of increase in estimated fair value of our investment in common shares of Hycroft, partially offset by $1.9 million of decrease in estimated fair value of our investment in warrants to purchase common shares of Hycroft .

Income tax provision (benefit).

The income tax provision was $2.3 million and benefit $(0.7) million for the nine months ended September 30, 2025 and September 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 $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.

Net loss was $439.8 million and $166.4 million during the nine months ended September 30, 2025, and September 30, 2024, respectively.

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 and decreases in rent expense and depreciation and amortization.

Theatrical Exhibition—International Markets

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.

Total revenues increased $53.0 million, or 6.9%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Admissions revenues increased $20.7 million, or 4.5%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to a 6.4% increase in average ticket price, partially offset by a decrease in attendance of 1.7% from 47.8 million patrons to 47.0 million patrons.

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.

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

Food and beverage revenues increased $14.9 million, or 6.5%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to the increase in food and beverage per patron, partially offset by the decline in attendance.

Food and beverage per patron increased 8.3% from $4.81 to $5.21 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.

Total other theatre revenues increased $17.4 million, or 20.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to increases in income from ticket fees, 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 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.

Operating costs and expenses increased $47.9 million, or 5.8%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Film exhibition costs increased $7.7 million, or 4.3%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to the increase in admissions revenues, partially offset by lower film rental terms.

As a percentage of admissions revenues, film exhibition costs were 39.3% for the nine months ended September 30, 2025, compared to 39.4% for the nine months ended September 30, 2024.

Food and beverage costs increased $5.9 million, or 10.4%, during the nine months ended September 30, 2025, compared to the nine months ended September 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.

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

Operating expense increased by $19.4 million, or 6.2%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

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

As a percentage of revenues, operating expense was 40.2% for the nine months ended September 30, 2025, compared to 40.5% for the nine months ended September 30, 2024.

Rent expense increased $5.8 million, or 3.4%, during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to increases in foreign currency translation rates, partially offset by a decrease in average screens of 2.7%.

Other general and administrative expense increased $8.0 million, or 14.4%, during the nine months ended September 30, 2025, compared to the nine months ended September 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 $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.

Depreciation and amortization increased $1.1 million, or 2.0%, during the nine months ended September 30, 2025, compared to the nine months ended September 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 $(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.

Other income of $(39.2) million during the nine months ended September 30, 2025, was primarily due to $(27.9) million in foreign currency transaction gains and $(10.5) million of governmental assistance.

Other income of $(55.9) million during the nine months ended September 30, 2024 was primarily due to the favorable settlement of a vendor dispute of $(36.2) million and foreign currency transaction gains of $(19.0) million.

Interest expense.

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.

Interest expense increased $2.5 million to $49.8 million for the nine months ended September 30, 2025, compared to $47.3 million during the nine months ended September 30, 2024, primarily due to increased interest expense of $1.9 million on finance lease obligations.

Investment 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.

Investment income was $(0.5) million for the nine months ended September 30, 2025, compared to income of $(1.4) million for the nine months ended September 30, 2024.

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

Income tax provision.

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.

The income tax provision was $1.7 million and $2.1 million for the nine months ended September 30, 2025, and September 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 $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.

Net loss was $65.2 million and $50.6 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.

Net loss during the nine months ended September 30, 2025 compared to net loss for the nine months ended September 30, 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 rent, increases in general and administrative expenses, increases in depreciation and amortization, increases in interest expense, decreases in investment income, partially offset by decreases in income tax provision.

Adjusted EBITDA

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The preceding definition of and adjustments made to GAAP measures to determine Adjusted EBITDA are broadly consistent with Adjusted EBITDA as defined in our debt indentures.

During 2024, we changed the definition of Adjusted EBITDA to no longer further adjust for “cash distributions from non-consolidated entities” and “other non-cash rent benefit.” All comparative period information for Adjusted EBITDA has been re-cast to conform with the current definition.

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

Three Months Ended

Six Months Ended

Nine Months Ended

Adjusted EBITDA (In millions)

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

International markets

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Three Months Ended

Six Months Ended

Nine Months Ended

(In millions)

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Income tax provision (1)

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Income tax provision (benefit) (1)

Interest expense

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Investment income (5)

Other income (6)

Other expense (income) (6)

Merger, acquisition and other costs (7)

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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 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.

(3) Equity in earnings of non-consolidated entities during the three months ended September 30, 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 September 30, 2024 primarily consisted of equity in earnings from AC JV of $(4.3) million.

Equity in earnings non-consolidated entities during the nine months ended September 30, 2025 primarily consisted of equity in earnings from AC JV of $(3.4) million.

Equity in earnings of non-consolidated entities during the nine months ended September 30, 2024 primarily consisted of equity in earnings from AC JV of $(9.5) 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.

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Three Months Ended

Six Months Ended

Nine Months Ended

(In millions)

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Equity in (earnings) of non-consolidated entities

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

Equity in (loss) of International theatre joint ventures

Equity in earnings (loss) of International theatre joint ventures

Income tax benefit

Investment expense

Investment income

Interest expense

Depreciation and amortization

Other expense

Attributable EBITDA

(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.

(5) Investment income during the three months ended September 30, 2025 includes interest income of $(2.3)

million, increases in the estimated fair value of our investment in common shares of Hycroft of $(7.3) million, and increases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $(2.0) million, partially offset by an impairment of an equity security without a readily determinable fair value of $10.3 million.

Investment income during the three months ended September 30, 2024 included interest income of $(4.6) million, an increase in the estimated fair value of our investment in common shares of Hycroft of $(0.3) million, partially offset by a decrease in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $1.7 million.

Investment income during the nine months ended September 30, 2025 includes interest income of $(6.9) million, increases in the estimated fair value of our investment in common shares of Hycroft of $(9.6) million, and increases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $(2.2) million, partially offset by an impairment of an equity security without a readily determinable fair value of $10.3 million.

Investment income during the nine months ended September 30, 2024 included interest income of $(16.1) million, increases in the estimated fair value of our investment in common shares of Hycroft of $(0.2) million, partially offset by decreases in the estimated fair value of our investment in warrants to purchase common shares of Hycroft of $1.9 million.

(6) Other expense during the three months ended September 30, 2025 includes net losses on debt extinguishment of $196.0 million, foreign currency transaction losses of $9.0 million, and term loan modification third party fees of $2.1 million, partially offset by a decrease in fair value of the bifurcated embedded derivative in the Existing Exchangeable Notes of $(1.4) million and a decrease in fair value of the bifurcated embedded derivative in the New Exchangeable Notes of $(9.5) million.

Other income during the three months ended September 30, 2024 included shareholder litigation recoveries of $(14.9) million, foreign currency transaction gains of $(21.5) million and a decrease in fair value of the bifurcated embedded derivative in the Existing Exchangeable Notes of $(73.5) million, partially offset by losses on debt extinguishment of $50.8 million and term loan modification third party fees of $41.0 million.

Other expense during the nine months ended September 30, 2025 includes net losses on debt extinguishment of $196.0 million and term loan modification third party fees of $2.1 million, partially offset by a decrease in fair value of the bifurcated embedded derivative in the Existing Exchangeable Notes of $(42.6) million, a decrease in fair value of the bifurcated embedded derivative in the New Exchangeable Notes of $(9.5) million and foreign currency transaction gains of $(27.9) million.

Other income during the nine months ended September 30, 2024 included shareholder litigation recoveries of $(34.0) million, gains on debt extinguishment of $(40.3) million, a vendor dispute settlement of $(36.2) million, foreign currency transaction gains of $(18.9) million and a decrease in fair value of the bifurcated embedded derivative in the Existing Exchangeable Notes of $(73.5) million, partially offset by term loan modification third party fees of $41.0 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 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.

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

markets was $110.9 million compared to $143.3 million during the three months ended September 30, 2024.

The year-over-year decrease was primarily driven by a decrease in attendance due to the popularity of new film releases compared to the prior year, increases in operating expenses due to higher retail merchandise costs, premium format expense, salaries expense, and insurance expense, partially offset by higher amounts of advertising income in other revenues due to the Amended ESA, co-brand credit card revenue, retail food and beverage income, and retail merchandise income.

During the three months ended September 30, 2025, Adjusted EBITDA in the International markets was $11.3 million compared to $18.5 million during the three months ended September 30, 2024.

The year-over-year decrease was primarily driven by increases in rent expense, a decrease in attendance due to the popularity of new film releases compared to the prior year, and increases in general and administrative:

other expenses, partially offset by increases in other revenue related to advertising and increases in foreign currency translation rates.

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

markets and International markets was $122.2 million compared to $161.8 million during the three months ended September 30, 2024, driven by the aforementioned factors impacting Adjusted EBITDA.

During the nine months ended September 30, 2025, Adjusted EBITDA in the U.S.

markets was $234.5 million compared to $178.5 million during the nine months ended September 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 due to the Amended ESA, co-brand credit card revenue, retail food and beverage income, and retail merchandise income.

These increases were partially offset by decreases in settlement proceeds.

During the nine months ended September 30, 2025, Adjusted EBITDA in the International markets was $18.9 million compared to $0.6 million during the nine months ended September 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, increases in other revenues related to package ticket expirations, and increases in foreign currency translation rates.

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.

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.

During the nine months ended September 30, 2025, Adjusted EBITDA in the U.S.

markets and International markets was $253.4 million compared to $179.1 million during the nine months ended September 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 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.

We had working capital deficit (excluding restricted cash) as of September 30, 2025, and December 31, 2024 of $(1,035.5) million and $(846.1) million, respectively.

As of September 30, 2025 and December 31, 2024, working capital included operating lease liabilities of $552.5 million and $524.9 million, respectively, and deferred revenues of $411.5 million and $432.4 million, respectively.

As of September 30, 2025, we had cash and cash equivalents of $365.8 million.

During the nine months ended September 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.

2025 Refinancing Transactions

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.

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 was subject to the Principal Adjustment Feature.

On September 30, 2025, $39.9 million aggregate principal of New Exchangeable Notes was cancelled pursuant to the Principal Adjustment Feature, representing the maximum possible downward adjustment.

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.

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 further information regarding these transactions.

2024 Refinancing Transactions

In the third quarter of 2024, we completed the 2024 Refinancing Transactions with two creditor groups to refinance and extend to 2029 and 2030 the maturities of our debt previously maturing in 2026.

In connection with the refinancing:

● We entered into the New Term Loans.

● The New Term Loans were (i) used as consideration for open market purchases of $1,895.0 million our existing senior secured term loans maturing in 2026 (the “Existing Term Loans”) and (ii) exchanged for $104.2 million of our Second Lien Notes.

● Muvico also completed a private offering for cash of $414.4 million aggregate principal of Existing Exchangeable Notes and used the proceeds from the offering to repurchase $414.4 million aggregate principal amount of Second Lien Notes.

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

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.

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Our current cash burn rates are not sustainable long-term.

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 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.

In order to achieve net positive cash flows from operating activities 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 22% for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2019.

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

Depending on our assumptions regarding the timing and ability to achieve levels of revenue, the estimates of amounts of required liquidity vary significantly.

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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 $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.

Net cash used in operating activities, as reflected in the condensed consolidated statements of cash flows, were $246.5 million and $254.4 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.

The decrease in net cash used in operating activities was primarily due to an increase in attendance, a decrease in cash paid for interest, a decrease in third-party fees paid in connection with the modifications of the term loans, increases in government assistance received, and decreases in cash paid for operating leases, partially offset by an increase in cash used for working capital items and a decrease in cash received from vendor disputes.

Cash Flows from Investing Activities

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.

Net cash used in investing activities, as reflected in the condensed consolidated statements of cash flows, were $163.9 million and $154.0 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.

Cash outflows from investing activities include capital expenditures of $162.7 million and $155.8 million during the nine months ended September 30, 2025, and September 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 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.

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 June 30, 2025.

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.

Net cash provided by financing activities, as reflected in the condensed consolidated statements of cash flows, were $134.3 million and $72.1 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.

Cash flows provided by financing activities during the nine months ended September 30, 2025, were primarily due to proceeds from the issuance of our New 2029 Notes of $244.4 million and net proceeds from equity issuances of $169.6 million, partially offset by principal payments under our Second Lien Notes of $131.2 million, principal payments at maturity for our Senior Subordinated Notes due 2025 of $42.8 million, principal payments under our Senior Subordinated Notes due 2026 of $41.9 million, cash paid for deferred financing costs of $37.6 million, principal payments under term loan borrowings of $15.1 million, taxes paid for restricted unit withholdings of $4.4 million, finance lease principal payments of $3.0 million, cash paid for debt extinguishment costs of $2.4 million for our 7.5% First Lien Notes due 2029, and the repurchase of Senior Subordinated Notes due 2025 of $1.3 million.

Cash flows provided by financing activities during the nine months ended September 30, 2024, were primarily due to net proceeds from equity issuances of $243.0 million and proceeds from the issuance of New Term Loans of $27.0 million, partially offset by the repurchase of Second Lien Notes of $83.2 million, deferred debt issuance costs of $45.7 million, principal payments under Existing Term Loans of $27.0 million, the repurchase of Senior Subordinated Notes due 2025 of $12.9 million, the repurchase of Senior Subordinated Notes due 2026 of $6.0 million, principal payments under term loan borrowings of $15.1 million, and taxes paid for restricted unit withholdings of $2.2 million.

Covenant Compliance

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

As of September 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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Theatre Net Assets include lease contracts and theatre property, including furniture, fixtures, plant and equipment, and other working capital items associated directly with the theatre locations.

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.

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 7.5% Notes.

Unrestricted Subsidiaries’ Financial Information and Operating Metrics

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”).

Pursuant to the indenture governing Holdings’ Existing 7.5% Notes, the indenture governing Muvico’s New 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).

7 unchanged sentences

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

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Subsidiaries/AMC

14 unchanged sentences

Other expense, net:

Other expense (income)

Other expense

Interest expense:

4 unchanged sentences

Intercompany interest income

Investment income

Investment expense (income)

Total other expense, net

Earnings (loss) before income taxes

Loss before income taxes

Income tax provision (2)

Net earnings (loss)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Subsidiaries/AMC

Net earnings (loss)

(In millions)

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.

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 New 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.

(3) Includes intercompany management fee revenues of $4.9 million recorded by AMCEH & Restricted Subsidiaries/AMC Group and intercompany license fee revenues of $3.2 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

Three Months Ended September 30, 2025

Subsidiaries/AMC

7 unchanged sentences

(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.

(3) This column provides the information required to be presented for (i) Holdings and its Restricted Subsidiaries under the indentures governing the New 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

Three Months Ended September 30, 2025

Subsidiaries/AMC

Net earnings (loss)

(In millions)

Income tax provision

5 unchanged sentences

Investment income

Other expense (income)

Other expense

Merger, acquisition and other costs

1 unchanged sentence

Adjusted EBITDA

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Subsidiaries/AMC

14 unchanged sentences

Other expense, net:

Other expense

Interest expense:

8 unchanged sentences

Income tax provision (2)

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Subsidiaries/AMC

(In millions)

Other comprehensive income:

4 unchanged sentences

Total comprehensive loss

Transactions between Holdings and its restricted subsidiaries have been eliminated.

3 unchanged sentences

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

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Subsidiaries/AMC

7 unchanged sentences

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

(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.

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Subsidiaries/AMC

(In millions)

Income tax provision

1 unchanged sentence

Depreciation and amortization

Certain operating expense (income)

Certain operating expense

Equity in earnings of non-consolidated entities

1 unchanged sentence

Investment income

Other expense

Merger, acquisition and other costs

1 unchanged sentence

Adjusted EBITDA

As of June 30, 2025

As of September 30, 2025

Subsidiaries/AMC

35 unchanged sentences

Accumulated other comprehensive loss

Accumulated earnings (deficit)

Accumulated deficit

Total stockholders' or member's equity (deficit)

1 unchanged sentence

(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.

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Subsidiaries/AMC

(In millions)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

Gain on derivative liability

Loss on extinguishment of debt

Gain on derivatives

Deferred income taxes

Unrealized gains on investments in Hycroft

Impairment of equity security

Amortization of net discount on corporate borrowings to interest expense

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Proceeds from disposition of long-term assets

Investments in non-consolidated entities

Net cash used in investing activities

1 unchanged sentence

Net proceeds from equity issuances

Proceeds from issuance of Senior Secured Notes due 2029

Principal payments under Second Lien Notes due 2026

Principal payments under Senior Subordinated Notes due 2025

Principal payments under Senior Subordinated Notes due 2026

Scheduled principal payments under Term Loan borrowings

2 unchanged sentences

Cash used to pay deferred financing costs

Debt extinguishment costs

Taxes paid for restricted unit withholdings

5 unchanged sentences

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