AMC Entertainment (AMC 3.41%), a leading movie theater operator, released its second quarter 2025 earnings on August 11, 2025. The company delivered a strong recovery, reporting GAAP revenue of $1,397.9 million, surpassing analyst estimates of $1,338.6 million. Earnings per share (EPS) on a non-GAAP basis were $(0.00). AMC showed significant year-over-year gains in attendance, margins, and cash flow, boosted by rising per-patron spending and effective cost control. The period marked a visible turnaround for AMC, as it moved into positive free cash flow (non-GAAP) and took major steps to extend its debt maturity profile.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $(0.00) | $(0.07) | $(0.43) | 0.43 |
| Revenue | $1,397.9 million | $1,338.6 million | $1,030.6 million | 35.6 % |
| Adjusted EBITDA | $189.2 million | $38.5 million | 391.4 % | |
| Free Cash Flow | $88.9 million | $(79.2) million | N/A | |
| Attendance (in thousands) | 62,807 | 50,013 | 25.6 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About AMC Entertainment and Its Business Focus
AMC operates one of the world’s largest theater networks, with approximately 860 locations and 9,700 screens. Its core business is providing in-person moviegoing experiences, which remains a popular out-of-home entertainment choice despite competition from digital streaming platforms.
The company has focused on several critical areas to drive its performance: upgrading to premium viewing formats (such as IMAX, Dolby Cinema, and in-house extra-large formats), innovating food and beverage offerings, and enhancing loyalty and subscription programs. Managing its large theater portfolio and addressing long-term debt also remain key areas for AMC’s long-term health and operational success.
Q2 2025 in Detail: Rising Revenue, Attendance, and Better Margins
The period saw a sharp rebound in theater attendance, with consolidated visits rising 25.6% year over year to 62.8 million. This growth was supported by a strong box office calendar and high demand for blockbuster releases. AMC reached new heights in per-patron performance: consolidated admissions revenue per patron exceeded $12 for the first time, reaching $12.14, while consolidated food and beverage revenue per guest hit a record $7.95. Total consolidated revenue per patron reached $22.26, illustrating an upswing in both ticket and concession spending.
Premium formats outperformed standard auditoriums, with management reporting that occupancy in these screens was almost three times higher than traditional halls. The U.S. market led the way, with average ticket prices reaching $12.77, and Food and beverage revenue per patron was $8.77. International markets also posted a notable increase, with food and beverage revenue per patron rising to $5.54. These numbers were supported by upgrades such as expanded IMAX and Dolby Cinema screens and new seating options marketed under the Club Rocker name.
Adjusted EBITDA, a key profit measure showing earnings before interest, taxes, depreciation, and amortization, jumped to $189.2 million from $38.5 million a year ago, an increase of 391.4%. Free cash flow (non-GAAP) came in positive at $88.9 million compared to a negative $79.2 million for Q2 2024. Net cash from operating activities (GAAP) also dramatically improved to $138.4 million, showing that the business was able to generate cash after covering operational expenses.
AMC also took steps to improve its balance sheet. In July 2025, AMC raised approximately $244 million in new cash by issuing debt, and It equitized at least $143 million of existing debt (converted it into equity) in July 2025. These initiatives pushed out the maturity of debt that was due in 2026 to 2029, lowering short-term refinancing risk. Corporate borrowings at the end of June 2025 stood at $4,009 million, with a cash balance of $423.7 million as of June 30, 2025. Despite this progress, total leverage remains high for the business.
Strategic Progress: Premium Innovation and Footprint Optimization
AMC’s management has set differentiation as a top goal, aiming to attract more customers by elevating the cinema experience beyond what home streaming can offer. Key moves this quarter included expanding premium auditoriums—formats such as IMAX, Dolby Cinema, Prime, iSense, and XL at AMC—and rolling out more state-of-the-art laser projection. The company’s premium screens now operate with occupancy rates close to three times that of standard auditoriums and earn higher average ticket prices, as stated by management in the second quarter 2025 earnings release.
Food and beverage innovation is another pillar of AMC’s strategy. Offerings have grown to include expanded bar service, themed drinks, Dippin’ Dots ice cream, and delivery partnerships with services like Uber Eats and DoorDash. The company also began testing new automated drink equipment, and Merchandise sales in theaters are projected to reach $75 million for CY2025—half potentially contributing directly to EBITDA, an important profitability measure for investors.
The company continued its theater network optimization, closing underperforming theaters and focusing investments on premium locations. Average screens in operation declined 2.2% year-over-year to 9,402, aligning with AMC’s stated intention to boost profitability and efficiency.
The company’s focus on innovative seating options was reflected in the success of Club Rocker seats in flagship locations, lifting both customer satisfaction and site revenues.
Looking Ahead: Guidance and Investor Watch Points
Management expressed optimism for the rest of fiscal 2025 and into 2026 but did not provide explicit numerical forward guidance. The company’s leadership highlighted industry momentum, a robust upcoming film release slate, and continued operational improvements. Management reiterated its expectation of positive free cash flow (non-GAAP) for the nine-month period ending December 31, 2025.
Investors will want to monitor the sustainability of higher per-patron metrics and premium format performance as box office trends evolve. Potential risks remain, including the ongoing threat posed by streaming services and volatility in theatrical attendance if content pipelines falter. High debt levels, while now less urgent due to improved maturity profiles, still require careful management given the capital-intensive nature of theater operations.
AMC does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
