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AMC Entertainment Holdings Inc.

11/05/2025 | Press release | Distributed by Public on 11/05/2025 15:30

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

In addition to historical information, this Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "may," "will," "forecast," "estimate," "project," "intend," "plan," "expect," "should," "believe" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and speak only as of the date on which it is made. Examples of forward-looking statements include statements we make regarding future attendance levels, revenues and our liquidity. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including those discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

●

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

●

the dilution caused by recent and potential future sales of our Common Stock and future potential share issuances to repay, refinance, redeem or repurchase indebtedness (including expenses, accrued interest and premium, if any);

●

risks relating to motion picture production, promotion, marketing, and performance, including labor stoppages affecting the production, supply and release schedule of theatrical motion picture content and the financial burden imposed by tariffs on motion picture production;

●

the seasonality of our revenue and working capital, which are dependent upon the timing of motion picture releases by distributors, such releases being seasonal and resulting in higher attendance and revenues generally during the summer months and holiday seasons, and higher working capital requirements during the other periods such as the first quarter;

●

intense competition in the geographic areas in which we operate among exhibitors, streaming platforms, or from other forms of entertainment;

●

certain covenants in the agreements that govern our indebtedness that limit or restrict our ability to take advantage of certain business opportunities, pay dividends, incur additional debt, pre-pay debt, and also to refinance debt and to do so at favorable terms, and such covenants that impose additional administrative and operational burdens on our business;

●

risks relating to impairment losses, including with respect to goodwill and other intangibles, and theatre and other closure charges;

●

general and international economic, political, regulatory, social and financial market conditions, including potential economic recession, inflation, rising interest rates, the financial stability of the banking industry, and other risks that may negatively impact discretionary income and our revenues and attendance levels;

●

our lack of control over distributors of films;

●

limitations on the availability of capital or poor financial results may prevent us from deploying strategic initiatives;

●

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

●

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

●

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

●

our ability to refinance our indebtedness on terms favorable to us or at all;

●

our ability to optimize our theatre circuit through new construction, the transformation of our existing theatres, and strategically closing underperforming theatres may be subject to delay and unanticipated costs;

●

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

●

our ability to utilize interest expense deductions will be limited annually due to Section 163(j) of the Internal Revenue Code of 1986, as amended (the "Code"), as amended by the One Big Beautiful Bill Act of 2025;

●

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

●

our ability to recognize certain international deferred tax assets which currently do not have a valuation allowance recorded;

●

review by antitrust authorities in connection with acquisition opportunities;

●

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;

●

increased costs in order to comply or resulting from a failure to comply with governmental regulation, including the General Data Protection Regulation ("GDPR") and all other current and pending privacy and data regulations in the jurisdictions where we have operations;

●

supply chain disruptions may negatively impact our operating results;

●

the availability and/or cost of energy, particularly in Europe;

●

the market price and trading volume of our shares of Common Stock has been and may continue to be volatile, and purchasers of our securities could incur substantial losses;

●

future offerings of debt, which would be senior to our Common Stock for purposes of distributions or upon liquidation, could adversely affect the market price of our Common Stock;

●

the potential for political, social, or economic unrest, terrorism, hostilities, cyber-attacks or war, including the conflict between Russia and Ukraine and other international conflicts;

●

the potential impact of financial and economic sanctions on the regional and global economy, or widespread health emergencies, such as pandemics or epidemics, causing people to avoid our theatres or other public places where large crowds are in attendance;

●

anti-takeover protections in our Third Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation") and our amended and restated bylaws (the "Bylaws") may discourage or prevent a takeover of our Company, even if an acquisition would be beneficial to our stockholders; and

●

other risks and uncertainties referenced from time to time in filings with the SEC.

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative but not exhaustive. In addition, new risks and uncertainties may arise from time to time. Accordingly, all forward-looking statements should be evaluated with an understanding of their inherent uncertainty and we caution accordingly against relying on forward-looking statements.

Except as required by law, we assume no obligation to publicly update or revise these forward-looking statements for any reason. Actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Readers are urged to consider these factors carefully in evaluating the forward-looking statements. For further information about these and other risks and uncertainties as well as strategic initiatives, see "Item 1A. Risk Factors" of this Form 10-Q, "Item 1. Business" in our Annual Report on Form 10-K for the year ended December 31, 2024, and our other public filings.

All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included herein are made only as of the date of this Quarterly Report on Form 10-Q, and we do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Overview

AMC is the world's largest theatrical exhibition company and an industry leader in innovation and operational excellence. As of September 30, 2025, we operated theatres in 11 countries throughout the U.S. and Europe.

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 September 30, 2025, we owned, operated or had interests in 856 theatres and 9,636 screens.

Box Office Admissions and Film Content

Box office admissions are our largest source of revenue. We predominantly license theatrical films from distributors owned by major film production companies and from independent distributors on a film-by-film and theatre-by-theatre basis. Film exhibition costs are based on a share of admissions revenues and are accrued based on estimates of the final settlement pursuant to our film licenses. These licenses typically state that rental fees are based on the box office performance of each film, though in certain circumstances and less frequently, our rental fees are based on a mutually agreed settlement rate that is fixed. In some European territories, film rental fees are established on a weekly basis and some licenses use a per capita agreement instead of a revenue share, paying a flat amount per ticket.

Our revenues attributable to individual distributors may vary significantly from year to year depending upon the commercial success of each distributor's films in any given year. Our results of operations may vary significantly from quarter to quarter and from year to year based on the timing and popularity of film releases.

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 September 30, 2025 and September 30, 2024:


	U.S. Markets		International Markets		Consolidated
	As of September 30,		As of September 30,		As of September 30,
Format	2025	2024	2025	2024	2025	2024
Number of theatres:
IMAX®	184	184	37	35	221	219
Dolby Cinema™ theatres	168	164	7	7	175	171
In-house PLF	61	60	78	79	139	139
Dine-in	48	49	3	3	51	52
Premium seating	367	365	88	85	455	450
XL screens	34	-	70	-	104	-
SCREENX	-	-	6	6	6	6
Number of screens:
IMAX®	185	185	37	35	222	220
Dolby Cinema™ theatres	168	164	7	7	175	171
In-house PLF	65	60	81	82	146	142
Dine-in	666	675	13	13	679	688
Premium seating	3,648	3,607	634	588	4,282	4,195
XL screens	54	-	84	-	138	-
SCREENX	-	-	6	6	6	6

We have signed a letter of intent with CJ 4DPLEX to open new 4DX and SCREENX locations in our U.S. markets. 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. We expect to open an additional 40 Dolby Cinema at AMC locations over the next several years and fourteen new IMAX locations by the end of 2033. Additionally, we plan to upgrade an additional 68 IMAX locations to IMAX with Laser.

Loyalty Programs and Other Marketing

On January 1, 2025, we introduced a new AMC Stubs tier-AMC Stubs® Premiere GO! ("Premiere GO!"). Premiere GO! membership is earned by existing Insider (as defined below) members by visiting a certain number of times or earning a certain number of points within a calendar year. Premiere GO! allows members to earn additional points and other exclusive benefits.

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 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 total members in our various International loyalty & subscription programs.

See "Item 1. 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 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

For a discussion of our critical accounting policies and the means by which we develop estimates therefore, see "Item 7. 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. 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 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, discount yield, and the probability of the required shareholder approval. 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. On April 17, 2025, NCM entered into the Amended ESA with the Company. The term of the Amended ESA has been extended by five years through February 13, 2042. The Company treated the Amended ESA as a contract modification pursuant to ASC 606 - Revenue from Contracts with Customers. Accordingly, the Company has allocated the additional consideration received from the contract modification to the exhibitor services agreement contract liability and updated the discount rate used to account for the significant financing component to 16.12%. Prior to the contract modification, the weighted average discount rate used to account for the significant financing component was approximately 7.5%. The contract liability will be reclassified to other theatre revenue over the new term of the Amended ESA as the remaining performance obligations are satisfied. Concurrently with entering into the Amended ESA, NCM and the Company reached an agreement to, among other things, dismiss with prejudice the ongoing litigation between the parties.

Share Issuances. During the 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)	September 30, 2025
Shares issued through at-the-market offering		17.1
At-the-market offering gross proceeds	$	63.0
Sales agent fees paid	$	0.6
Other third-party issuance costs incurred	$	0.3
Other third-party issuance costs paid	$	1.5

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 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.


			Shares of
	Aggregate Principal		Common Stock		Reacquisition		Gain on		Accrued Interest
(In millions, except for share data)	Exchanged		Exchanged		Cost		Extinguishment		Exchanged
Cash debt repurchase transactions:
5.75% Senior Subordinated Notes due 2025	$	7.0		-	$	6.7	$	0.3	$	0.1
Second Lien Notes due 2026		50.0		-		50.5		4.4		1.4
Total cash debt repurchase transactions		57.0		-		57.2		4.7		1.5
Debt for equity exchange transactions:
Second Lien Notes due 2026		191.4		27,545,325		123.1		91.1		7.4
Total debt for equity exchange transactions		191.4		27,545,325		123.1		91.1		7.4
Cash and debt for equity exchange transactions:
5.75% Senior Subordinated Notes due 2025		8.6		447,829		8.4		0.2		0.1
5.875% Senior Subordinated Notes due 2026		9.6		432,777		8.1		1.3		0.2
Second Lien Notes due 2026		45.0		2,693,717		45.5		4.2		1.2
Total cash and debt for equity exchange transactions		63.2		3,574,323		62.0		5.7		1.5
Total debt repurchases and exchanges	$	311.6		31,119,648	$	242.3	$	101.5	$	10.4

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 nine months ended September 30, 2024. The relationship with the vendor has been restored and remains in good standing.

Share Issuances. 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. 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.

Operating Results

The following table sets forth our consolidated revenues, operating costs and expenses:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2025		2024		% Change		2025		2024		% Change
Revenues
Admissions	$	715.1	$	744.2	(3.9)	%	$	1,951.2	$	1,839.1	6.1	%
Food and beverage		451.8		490.4	(7.9)	%		1,234.8		1,178.7	4.8	%
Other theatre		133.3		114.2	16.7	%		374.6		313.0	19.7	%
Total revenues		1,300.2		1,348.8	(3.6)	%		3,560.6		3,330.8	6.9	%
Operating Costs and Expenses
Film exhibition costs		352.4		381.4	(7.6)	%		949.3		893.0	6.3	%
Food and beverage costs		88.6		89.7	(1.2)	%		241.9		222.6	8.7	%
Operating expense, excluding depreciation and amortization below		464.7		454.6	2.2	%		1,316.3		1,237.9	6.3	%
Rent		224.1		216.4	3.6	%		664.8		659.3	0.8	%
General and administrative:
Merger, acquisition and other costs		0.1		0.1	0.0	%		3.2		0.1	*	%
Other, excluding depreciation and amortization below		55.1		54.0	2.0	%		169.3		160.7	5.4	%
Depreciation and amortization		79.4		80.8	(1.7)	%		233.3		241.2	(3.3)	%
Operating costs and expenses		1,264.4		1,277.0	(1.0)	%		3,578.1		3,414.8	4.8	%
Operating income (loss)		35.8		71.8	(50.1)	%		(17.5)		(84.0)	(79.2)	%
Other expense, net:
Other expense (income)		194.8		(22.8)	*	%		103.9		(173.8)	*	%
Interest expense:
Corporate borrowings		119.0		109.6	8.6	%		337.6		289.8	16.5	%
Finance lease obligations		1.7		1.0	70.0	%		4.3		2.5	72.0	%
Non-cash NCM exhibitor service agreement		18.6		9.0	*	%		46.1		27.5	67.6	%
Investment income		(1.3)		(3.2)	(59.4)	%		(8.4)		(14.4)	(41.7)	%
Total other expense, net		332.8		93.6	*	%		483.5		131.6	*	%
Loss before income taxes		(297.0)		(21.8)	*	%		(501.0)		(215.6)	*	%
Income tax provision (benefit)		1.2		(1.1)	*	%		4.0		1.4	*	%
Net loss	$	(298.2)	$	(20.7)	*	%	$	(505.0)	$	(217.0)	*	%

* Percentage change in excess of 100%


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Operating Data:	2025	2024	2025	2024
Screen additions	-	13	-	13
Screen acquisitions	11	-	36	1
Screen dispositions	88	105	189	235
Screen construction openings (closures), net	(4)	3	(9)	(38)
Average screens (1)	9,354	9,534	9,395	9,618
Number of screens operated	9,636	9,800	9,636	9,800
Number of theatres operated	856	874	856	874
Screens per theatre	11.3	11.2	11.3	11.2
Attendance (in thousands) (1)	58,377	65,087	163,087	161,731

(1)

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

Segment Operating Results

The following table sets forth our revenues, operating costs and expenses by reportable segment:


	U.S. Markets				International Markets				Consolidated
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
(In millions)	2025		2024		2025		2024		2025		2024
Revenues
Admissions	$	543.8	$	572.2	$	171.3	$	172.0	$	715.1	$	744.2
Food and beverage		361.4		398.3		90.4		92.1		451.8		490.4
Other theatre		100.7		84.8		32.6		29.4		133.3		114.2
Total revenues		1,005.9		1,055.3		294.3		293.5		1,300.2		1,348.8
Operating Costs and Expenses
Film exhibition costs		284.6		311.1		67.8		70.3		352.4		381.4
Food and beverage costs		65.4		67.0		23.2		22.7		88.6		89.7
Operating expense, excluding depreciation and amortization below		353.5		345.7		111.2		108.9		464.7		454.6
Rent		163.4		160.7		60.7		55.7		224.1		216.4
General and administrative expense:
Merger, acquisition and other costs		0.1		0.1		-		-		0.1		0.1
Other, excluding depreciation and amortization below		33.1		34.1		22.0		19.9		55.1		54.0
Depreciation and amortization		60.1		62.1		19.3		18.7		79.4		80.8
Operating costs and expenses		960.2		980.8		304.2		296.2		1,264.4		1,277.0
Operating income (loss)		45.7		74.5		(9.9)		(2.7)		35.8		71.8
Other expense (income), net:
Other expense (income)		186.2		(0.2)		8.6		(22.6)		194.8		(22.8)
Interest expense:
Corporate borrowings		103.9		94.5		15.1		15.1		119.0		109.6
Finance lease obligations		-		-		1.7		1.0		1.7		1.0
Non-cash NCM exhibitor service agreement		18.6		9.0		-		-		18.6		9.0
Investment income		(1.0)		(3.0)		(0.3)		(0.2)		(1.3)		(3.2)
Total other expense (income), net		307.7		100.3		25.1		(6.7)		332.8		93.6
Earnings (loss) before income taxes		(262.0)		(25.8)		(35.0)		4.0		(297.0)		(21.8)
Income tax provision (benefit)		0.9		(1.9)		0.3		0.8		1.2		(1.1)
Net earnings (loss)	$	(262.9)	$	(23.9)	$	(35.3)	$	3.2	$	(298.2)	$	(20.7)


	U.S. Markets		International Markets		Consolidated
	Three Months Ended		Three Months Ended		Three Months Ended
	September 30,		September 30,		September 30,
Segment Operating Data:	2025	2024	2025	2024	2025	2024
Screen additions	-	-	-	13	-	13
Screen acquisitions	-	-	11	-	11	-
Screen dispositions	65	69	23	36	88	105
Screen construction openings (closures), net	(4)	2	-	1	(4)	3
Average screens (1)	7,040	7,179	2,314	2,355	9,354	9,534
Number of screens operated	7,062	7,195	2,574	2,605	9,636	9,800
Number of theatres operated	534	547	322	327	856	874
Screens per theatre	13.2	13.2	8.0	8.0	11.3	11.2
Attendance (in thousands) (1)	42,276	46,924	16,101	18,163	58,377	65,087

(1)

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


	U.S. Markets				International Markets				Consolidated
	Nine Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,
(In millions)	2025		2024		2025		2024		2025		2024
Revenues
Admissions	$	1,473.6	$	1,382.2	$	477.6	$	456.9	$	1,951.2	$	1,839.1
Food and beverage		990.0		948.8		244.8		229.9		1,234.8		1,178.7
Other theatre		273.5		229.3		101.1		83.7		374.6		313.0
Total revenues		2,737.1		2,560.3		823.5		770.5		3,560.6		3,330.8
Operating Costs and Expenses
Film exhibition costs		761.4		712.8		187.9		180.2		949.3		893.0
Food and beverage costs		179.2		165.8		62.7		56.8		241.9		222.6
Operating expense, excluding depreciation and amortization below		985.0		926.0		331.3		311.9		1,316.3		1,237.9
Rent		488.7		489.0		176.1		170.3		664.8		659.3
General and administrative expense:
Merger, acquisition and other costs		3.2		0.1		-		-		3.2		0.1
Other, excluding depreciation and amortization below		105.7		105.1		63.6		55.6		169.3		160.7
Depreciation and amortization		178.0		187.0		55.3		54.2		233.3		241.2
Operating costs and expenses		2,701.2		2,585.8		876.9		829.0		3,578.1		3,414.8
Operating income (loss)		35.9		(25.5)		(53.4)		(58.5)		(17.5)		(84.0)
Other expense (income), net:
Other expense (income)		143.1		(117.9)		(39.2)		(55.9)		103.9		(173.8)
Interest expense:
Corporate borrowings		292.1		244.9		45.5		44.9		337.6		289.8
Finance lease obligations		-		0.1		4.3		2.4		4.3		2.5
Non-cash NCM exhibitor service agreement		46.1		27.5		-		-		46.1		27.5
Investment income		(7.9)		(13.0)		(0.5)		(1.4)		(8.4)		(14.4)
Total other expense (income), net		473.4		141.6		10.1		(10.0)		483.5		131.6
Loss before income taxes		(437.5)		(167.1)		(63.5)		(48.5)		(501.0)		(215.6)
Income tax provision (benefit)		2.3		(0.7)		1.7		2.1		4.0		1.4
Net loss	$	(439.8)	$	(166.4)	$	(65.2)	$	(50.6)	$	(505.0)	$	(217.0)


	U.S. Markets		International Markets		Consolidated
	Nine Months Ended		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,
Segment Operating Data:	2025	2024	2025	2024	2025	2024
Screen additions	-	-	-	13	-	13
Screen acquisitions	16	-	20	1	36	1
Screen dispositions	118	157	71	78	189	235
Screen construction openings (closures), net	(21)	(17)	12	(21)	(9)	(38)
Average screens (1)	7,073	7,231	2,322	2,387	9,395	9,618
Number of screens operated	7,062	7,195	2,574	2,605	9,636	9,800
Number of theatres operated	534	547	322	327	856	874
Screens per theatre	13.2	13.2	8.0	8.0	11.3	11.2
Attendance (in thousands) (1)	116,072	113,907	47,015	47,824	163,087	161,731

(1)

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

Segment Information

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 September 30, 2025, Compared to the Three Months ended September 30, 2024

Condensed Consolidated Results of Operations

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

Operating costs and expenses. Operating costs and expenses decreased $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 September 30, 2025, compared to $0.1 million during the three months ended September 30, 2024.

Other. 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 $1.4 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.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 expense (income).

Interest expense. 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. 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 $(1.3) 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. 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. Markets

Revenues. 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. In our U.S. 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 $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. As a result of our Amended ESA, advertising income increased from the prior year by $5.2 million due to an increase in discount rates related to the significant financing component, partially offset by lower amortization of deferred revenues due to an increase in the term of the Amended ESA. See Note 3-Revenue Recognition in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information about the Amended ESA.

Operating costs and expenses. Operating costs and expenses decreased $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. 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 $1.6 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.

Other. 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 $2.0 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 $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. 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 expense (income).

Interest expense. 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 $(1.0) million for the three months ended September 30, 2025, compared to income of $(3.0) million for the three months ended September 30, 2024. 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 $(2.0) 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 loss. 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

Revenues. 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 $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. 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 $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 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. 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 expense (income).

Interest expense. 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. 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 $(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 $0.3 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 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

Revenues. 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. markets. 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. In our U.S. 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

during 2023.

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 $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. 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 $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 37.0% 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 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 $3.2 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. markets.

Other. 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 $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. 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 expense (income).

Interest expense. 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. 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 $(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 $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. 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. Markets

Revenues. 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. markets. 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. In our U.S. 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 during 2023.

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 $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. 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. 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 $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. 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 $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 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 36.0% 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 $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 $3.2 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. markets.

Other. 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 $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. 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 expense (income).

Interest expense. 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. 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 $(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. Net loss was $439.8 million and $166.4 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 recoveries during the prior period, 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 rent expense and depreciation and amortization.

Theatrical Exhibition-International Markets

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

Interest expense. Interest expense increased $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. 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 $(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 $1.7 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. 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

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets. These further adjustments are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. 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.

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


	Three Months Ended				Nine Months Ended
Adjusted EBITDA (In millions)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
U.S. markets	$	110.9	$	143.3	$	234.5	$	178.5
International markets		11.3		18.5		18.9		0.6
Total Adjusted EBITDA	$	122.2	$	161.8	$	253.4	$	179.1


	Three Months Ended				Nine Months Ended
(In millions)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net loss	$	(298.2)	$	(20.7)	$	(505.0)	$	(217.0)
Plus:
Income tax provision (benefit)(1)		1.2		(1.1)		4.0		1.4
Interest expense		139.3		119.6		388.0		319.8
Depreciation and amortization		79.4		80.8		233.3		241.2
Certain operating expense(2)		0.7		2.0		6.1		3.5
Equity in earnings of non-consolidated entities (3)		(1.6)		(5.2)		(4.5)		(9.9)
Attributable EBITDA (4)		0.4		1.3		0.9		1.2
Investment income (5)		(1.3)		(3.2)		(8.4)		(14.4)
Other expense (income) (6)		196.2		(18.1)		118.1		(161.9)
Merger, acquisition and other costs(7)		0.1		0.1		3.2		0.1
Stock-based compensation expense(8)		6.0		6.3		17.7		15.1
Adjusted EBITDA	$	122.2	$	161.8	$	253.4	$	179.1

(1)

For information regarding the income tax provision, see Note 8-Income Taxes in the Notes to the Condensed Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q.

(2)

Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens, including the related accretion of interest, disposition of assets and other non-operating gains or losses included in operating expenses. 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 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. Because these equity investments are in theatre operators in regions where we hold a significant market share, we believe attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments.


	Three Months Ended				Nine Months Ended
(In millions)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Equity in (earnings) of non-consolidated entities	$	(1.6)	$	(5.2)	$	(4.5)	$	(9.9)
Less:
Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures		(1.6)		(4.7)		(4.6)		(10.3)
Equity in earnings (loss) of International theatre joint ventures		-		0.5		(0.1)		(0.4)
Income tax benefit		-		-		(0.1)		(0.1)
Investment income		-		(0.1)		-		-
Interest expense		-		-		0.1		0.1
Depreciation and amortization		0.4		0.7		1.0		1.4
Other expense		-		0.2		-		0.2
Attributable EBITDA	$	0.4	$	1.3	$	0.9	$	1.2

(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.

(8)

Non-cash expense included in general and administrative: other.

Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net earnings (loss) as an indicator of operating performance (as determined in accordance with U.S. GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and estimate our value.

Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. For example, Adjusted EBITDA:

●

does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;

●

does not reflect changes in, or cash requirements for, our working capital needs;

●

does not reflect the significant interest expenses, or the cash requirements necessary to service interest or principal payments on our debt;

●

excludes income tax payments that represent a reduction in cash available to us; and

●

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 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. 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

Our consolidated revenues are primarily collected in cash, principally through admissions and food and beverage sales. We have an operating "float" which partially finances our operations and which generally permits us to maintain a smaller amount of working capital capacity. This float exists because admissions revenues are received in cash, while exhibition costs (primarily film rentals) are ordinarily paid to distributors 20 to 45 days following receipt of admissions revenues. Film distributors generally release the films which they anticipate will be the most successful during the summer and year-end holiday seasons. 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 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 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 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. Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, the availability of authorized share capital, contractual restrictions and other factors. The amounts involved may be material and, to the extent equity is used, dilutive.

Liquidity Requirements

We believe our existing cash and cash equivalents, together with cash generated from operations, will be sufficient to fund our operations and satisfy our obligations currently and through the next twelve months. Our current cash burn rates are not sustainable long-term. 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.

There can be no assurance that the revenues, attendance levels and other assumptions used to estimate our liquidity requirements and future cash burn rates will be correct, and our ability to be predictive is uncertain due to limited ability to predict studio film release dates, the overall production and theatrical release levels and success of individual titles. Further, there can be no assurances that we will be successful in generating the additional liquidity necessary to meet our obligations beyond twelve months from the issuance of this Quarterly Report on terms acceptable to us or at all.

Cash Flows from Operating Activities

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 $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. We generally lease our theatres pursuant to long-term non-cancelable operating leases, which may require the developer who owns the property, to reimburse us for the construction costs. We estimate that our capital expenditures, net of lease incentives, will be approximately $175 million to $225 million for year ended December 31, 2025, to maintain and enhance operations.

Cash Flows from Financing Activities

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. 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 September 30, 2025.

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 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

On July 22, 2024, American-Multi Cinema Inc. ("Multi-Cinema"), a direct subsidiary of AMC Entertainment Holdings, Inc. ("Holdings"), assigned or transferred the net assets ("Theatre Net Assets") of 175 theatres and transferred a 100% interest in certain intellectual property assets to its direct subsidiary Centertainment Development, LLC ("Centertainment"), and the Theatre Net Assets were in turn transferred to Centertainment's direct wholly-owned subsidiary Muvico, LLC ("Muvico"). 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. 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 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). The financial information presented for AMC Group and Muvico Group is presented on a standalone basis with discrete identification of the assets, liabilities, revenues and expenses associated with the Theatre Net Assets that were transferred to Muvico. Intercompany transactions between entities within the AMC Group or within the Muvico Group have been eliminated. Certain entities within the AMC Group and within the Muvico Group are parties to intercompany management, licensing, and debt agreements with each other. These transactions are reflected discretely within the columnar presentation below and are properly eliminated upon consolidation. The financial information is also prepared using the historical cost carrying values of Holdings, the top parent entity.

Holdings and Muvico are co-borrowers and joint and severally liable for the New Term Loan borrowings. Pursuant to ASC 405-40 we have allocated fifty percent (50%) of the liabilities, interest expense and cash flows each to Muvico and Holdings, respectively. The basis of this allocation is the amount we expect each party to pay.


	Three Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Eliminations		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues
Admissions	$	497.3	$	217.8	$	-	$	715.1
Food and beverage		339.4		112.4		-		451.8
Other theatre (3)		115.6		25.8		(8.1)		133.3
Total revenues		952.3		356.0		(8.1)		1,300.2
Operating costs and expenses
Film exhibition costs		239.3		113.1		-		352.4
Food and beverage costs		68.8		19.8		-		88.6
Operating expense, excluding depreciation and amortization below		348.1		116.6		-		464.7
Rent		167.7		56.4		-		224.1
General and administrative:
Merger, acquisition and other costs		0.1		-		-		0.1
Other, excluding depreciation and amortization below (3)		58.3		4.9		(8.1)		55.1
Depreciation and amortization		59.5		19.9		-		79.4
Operating costs and expenses		941.8		330.7		(8.1)		1,264.4
Operating income		10.5		25.3		-		35.8
Other expense, net:
Other expense		101.3		93.5		-		194.8
Interest expense:
Corporate borrowings		58.9		60.1		-		119.0
Finance lease obligations		1.7		-		-		1.7
Intercompany interest expense		0.7		0.6		(1.3)		-
Non-cash NCM exhibitor services agreement		18.6		-		-		18.6
Intercompany interest income		(0.6)		(0.7)		1.3		-
Investment expense (income)		0.4		(1.7)		-		(1.3)
Total other expense, net		181.0		151.8		-		332.8
Loss before income taxes		(170.5)		(126.5)		-		(297.0)
Income tax provision (2)		1.2		-		-		1.2
Net loss	$	(171.7)	$	(126.5)	$	-	$	(298.2)


	Three Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)
Net loss	$	(171.7)	$	(126.5)	$	(298.2)
Other comprehensive income:
Unrealized foreign currency translation adjustments		15.1		-		15.1
Total comprehensive loss	$	(156.6)	$	(126.5)	$	(283.1)

(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 $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 September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (3)		Subsidiaries		Consolidated
Key operating metrics:	(unaudited)		(unaudited)		(unaudited)
Average ticket price	$	11.81	$	13.39	$	12.25
Attendance (in thousands) (1)		42,109		16,268		58,377
Number of screens operated (2)		7,415		2,221		9,636
Number of theatres operated (2)		684		172		856
Adjusted EBITDA (4)	$	76.9	$	45.3	$	122.2

(1)

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

(2)

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

(3)

(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 September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Eliminations		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Net loss	$	(171.7)	$	(126.5)	$	-	$	(298.2)
Plus:
Income tax provision		1.2		-		-		1.2
Interest expense		79.9		60.7		(1.3)		139.3
Depreciation and amortization		59.5		19.9		-		79.4
Certain operating expense		0.6		0.1		-		0.7
Equity in earnings of non-consolidated entities		(1.6)		-		-		(1.6)
Attributable EBITDA		0.4		-		-		0.4
Investment income		(0.2)		(2.4)		1.3		(1.3)
Other expense		102.7		93.5		-		196.2
Merger, acquisition and other costs		0.1		-		-		0.1
Stock-based compensation expense		6.0		-		-		6.0
Adjusted EBITDA	$	76.9	$	45.3	$	-	$	122.2

(1)


	Nine Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Eliminations		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues
Admissions	$	1,367.1	$	584.1	$	-	$	1,951.2
Food and beverage		931.0		303.8		-		1,234.8
Other theatre (3)		326.1		69.5		(21.0)		374.6
Total revenues		2,624.2		957.4		(21.0)		3,560.6
Operating costs and expenses
Film exhibition costs		651.2		298.1		-		949.3
Food and beverage costs		188.0		53.9		-		241.9
Operating expense, excluding depreciation and amortization below		998.0		318.3		-		1,316.3
Rent		497.1		167.7		-		664.8
General and administrative:
Merger, acquisition and other costs		3.2		-		-		3.2
Other, excluding depreciation and amortization below (3)		178.2		12.1		(21.0)		169.3
Depreciation and amortization		175.8		57.5		-		233.3
Operating costs and expenses		2,691.5		907.6		(21.0)		3,578.1
Operating income (loss)		(67.3)		49.8		-		(17.5)
Other expense, net:
Other expense		51.5		52.4		-		103.9
Interest expense:
Corporate borrowings		195.7		141.9		-		337.6
Finance lease obligations		4.3		-		-		4.3
Intercompany interest expense		0.7		5.4		(6.1)		-
Non-cash NCM exhibitor services agreement		46.1		-		-		46.1
Intercompany interest income		(5.4)		(0.7)		6.1		-
Investment income		(3.4)		(5.0)		-		(8.4)
Total other expense, net		289.5		194.0		-		483.5
Loss before income taxes		(356.8)		(144.2)		-		(501.0)
Income tax provision (2)		4.0		-		-		4.0
Net loss	$	(360.8)	$	(144.2)	$	-	$	(505.0)


	Nine Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)
Net loss	$	(360.8)	$	(144.2)	$	(505.0)
Other comprehensive income:
Unrealized foreign currency translation adjustments		78.8		-		78.8
Pension adjustments:
Net gain arising during the period		0.1		-		0.1
Other comprehensive income		78.9		-		78.9
Total comprehensive loss	$	(281.9)	$	(144.2)	$	(426.1)

(1)

(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 $12.1 million recorded by AMCEH & Restricted Subsidiaries/AMC Group and intercompany license fee revenues of $8.9 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.


	Nine Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (3)		Subsidiaries		Consolidated
Key operating metrics:	(unaudited)		(unaudited)		(unaudited)
Average ticket price	$	11.48	$	13.26	$	11.96
Attendance (in thousands) (1)		119,044		44,043		163,087
Number of screens operated (2)		7,415		2,221		9,636
Number of theatres operated (2)		684		172		856
Adjusted EBITDA (4)	$	146.1	$	107.3	$	253.4

(1)

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

(2)

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

(3)

(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.


	Nine Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Eliminations		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Net loss	$	(360.8)	$	(144.2)	$	-	$	(505.0)
Plus:
Income tax provision		4.0		-		-		4.0
Interest expense		246.8		147.3		(6.1)		388.0
Depreciation and amortization		175.8		57.5		-		233.3
Certain operating expense		6.1		-		-		6.1
Equity in earnings of non-consolidated entities		(4.5)		-		-		(4.5)
Attributable EBITDA		0.9		-		-		0.9
Investment income		(8.8)		(5.7)		6.1		(8.4)
Other expense		65.7		52.4		-		118.1
Merger, acquisition and other costs		3.2		-		-		3.2
Stock-based compensation expense		17.7		-		-		17.7
Adjusted EBITDA	$	146.1	$	107.3	$	-	$	253.4

(1)


	As of September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (3)		Subsidiaries		Eliminations		Consolidated
(In millions, except share data)	(unaudited)		(unaudited)		(unaudited)		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents (1)	$	179.8	$	186.0	$	-	$	365.8
Restricted cash		51.1		-		-		51.1
Receivables, net		99.4		2.9		-		102.3
Other current assets		80.5		19.3		-		99.8
Total current assets		410.8		208.2		-		619.0
Property, net		1,064.4		346.4		-		1,410.8
Operating lease right-of-use assets, net		2,448.1		782.8		-		3,230.9
Intangible assets, net		43.2		104.4		-		147.6
Goodwill		2,400.0		-		-		2,400.0
Other long-term assets		211.7		0.7		-		212.4
Intercompany receivables (2)		-		2,182.7		(2,182.7)		-
Investment in subsidiary		475.5		-		(475.5)		-
Total assets	$	7,053.7	$	3,625.2	$	(2,658.2)	$	8,020.7
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	250.1	$	29.0	$	-	$	279.1
Accrued expenses and other liabilities		284.9		50.0		-		334.9
Deferred revenues and income		405.4		6.1		-		411.5
Current maturities of corporate borrowings		9.9		10.0		-		19.9
Current maturities of finance lease liabilities		5.5		-		-		5.5
Current maturities of operating lease liabilities		405.5		147.0		-		552.5
Total current liabilities		1,361.3		242.1		-		1,603.4
Corporate borrowings		1,818.4		2,171.7		-		3,990.1
Finance lease liabilities		47.4		-		-		47.4
Operating lease liabilities		2,848.1		733.4		-		3,581.5
Exhibitor services agreement		460.5		-		-		460.5
Deferred tax liability, net (4)		35.5		-		-		35.5
Intercompany payables (2)		2,182.7		-		(2,182.7)		-
Other long-term liabilities		77.3		2.5		-		79.8
Total liabilities		8,831.2		3,149.7		(2,182.7)		9,798.2
Commitments and contingencies
Stockholders' or member's equity (deficit):
Preferred stock		-		-		-		-
Class A common stock		5.1		-		-		5.1
Additional paid-in capital		7,122.3		558.3		(558.3)		7,122.3
Accumulated other comprehensive loss		(53.1)		-		-		(53.1)
Accumulated deficit		(8,851.8)		(82.8)		82.8		(8,851.8)
Total stockholders' or member's equity (deficit)		(1,777.5)		475.5		(475.5)		(1,777.5)
Total liabilities and stockholders' or members equity (deficit)	$	7,053.7	$	3,625.2	$	(2,658.2)	$	8,020.7

(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 as a result of the 2025 and 2024 Refinancing Transactions.

(3)

(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.


	Nine Months Ended September 30, 2025
	AMCEH &
	Restricted		Muvico Group
	Subsidiaries/AMC		Unrestricted
	Group (1)		Subsidiaries		Consolidated
(In millions)	(unaudited)		(unaudited)		(unaudited)
Net loss	$	(360.8)	$	(144.2)	$	(505.0)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		175.8		57.5		233.3
Loss on extinguishment of debt		92.7		103.3		196.0
Gain on derivatives		-		(52.1)		(52.1)
Deferred income taxes		1.3		-		1.3
Unrealized gains on investments in Hycroft		(11.8)		-		(11.8)
Impairment of equity security		10.3		-		10.3
Amortization of net discount on corporate borrowings to interest expense		4.5		6.9		11.4
Amortization of deferred financing costs to interest expense		4.8		2.5		7.3
PIK interest expense		-		28.7		28.7
Non-cash portion of stock-based compensation		17.7		-		17.7
Equity in earnings of non-consolidated entities, net of distributions		0.5		-		0.5
Lease incentives		27.5		-		27.5
Deferred rent		(72.1)		(10.5)		(82.6)
Net periodic benefit cost		0.9		-		0.9
Change in assets and liabilities:
Receivables		66.2		2.6		68.8
Other assets		(21.8)		20.9		(0.9)
Accounts payable		(108.0)		(11.9)		(119.9)
Accrued expenses and other liabilities		(72.3)		23.7		(48.6)
Intercompany receivables and payables		(107.2)		107.2		-
Other, net		(29.4)		0.1		(29.3)
Net cash provided by (used in) operating activities		(381.2)		134.7		(246.5)
Cash flows from investing activities:
Capital expenditures		(131.5)		(31.2)		(162.7)
Proceeds from disposition of long-term assets		1.6		-		1.6
Investments in non-consolidated entities		(4.0)		-		(4.0)
Other, net		1.2		-		1.2
Net cash used in investing activities		(132.7)		(31.2)		(163.9)
Cash flows from financing activities:
Net proceeds from equity issuances		169.6		-		169.6
Proceeds from issuance of Senior Secured Notes due 2029		-		244.4		244.4
Principal payments under Second Lien Notes due 2026		(131.2)		-		(131.2)
Principal payments under Senior Subordinated Notes due 2025		(42.8)		-		(42.8)
Principal payments under Senior Subordinated Notes due 2026		(41.9)		-		(41.9)
Scheduled principal payments under Term Loan borrowings		(7.6)		(7.5)		(15.1)
Principal payments under finance lease obligations		(3.0)		-		(3.0)
Repurchase of Senior Subordinated Notes due 2025		(1.3)		-		(1.3)
Cash used to pay deferred financing costs		(11.3)		(26.3)		(37.6)
Debt extinguishment costs		(2.4)		-		(2.4)
Taxes paid for restricted unit withholdings		(4.4)		-		(4.4)
Proceeds (payments) of intercompany loans		420.7		(420.7)		-
Net cash provided by (used in) financing activities		344.4		(210.1)		134.3
Effect of exchange rate changes on cash and cash equivalents and restricted cash		12.2		-		12.2
Net decrease in cash and cash equivalents and restricted cash		(157.3)		(106.6)		(263.9)
Cash and cash equivalents and restricted cash at beginning of period		388.2		292.6		680.8

Cash and cash equivalents and restricted cash at end of period

230.9

186.0

416.9

(1)

AMC Entertainment Holdings Inc. published this content on November 05, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 05, 2025 at 21:31 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]

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