AMC Entertainment Reports 4.6% Revenue Increase to $4.85 Billion, Faces $632.4 Million Net Loss

AMC Entertainment Holdings Inc. reported a revenue increase of 4.6% to $4.85 billion for the fiscal year ended December 31, 2025, compared to $4.64 billion in 2024. Admissions revenue rose by 3.6% to $2.65 billion, driven by a 5.9% increase in average ticket price, while food and beverage revenue increased by 2.9% to $1.67 billion, attributed to a 5.1% increase in per-patron spending. Other theatre revenues saw a significant increase of 16.2%, reaching $524.8 million, primarily due to higher advertising income and fees from customer loyalty programs. Despite the revenue growth, the company experienced a net loss of $632.4 million, a substantial increase from the $352.6 million loss in the previous year.

The increased net loss was attributed to several factors, including a $196 million loss on debt extinguishments, a $19.3 million increase in the fair value of bifurcated embedded derivatives in the New Exchangeable Notes, and a $86.5 million increase in interest expense. These were partially offset by a $56.7 million decrease in the fair value of bifurcated embedded derivatives in the Existing Exchangeable Notes and a $28.1 million gain from foreign currency transactions. Operating costs and expenses also increased by 3.2% to $4.87 billion, with film exhibition costs rising by 2.9% to $1.28 billion and food and beverage costs increasing by 7.0% to $327 million. The company's attendance decreased slightly from 224.2 million in 2024 to 219.4 million in 2025.

Strategic developments during the year included debt refinancing transactions aimed at lowering future interest expenses and enhancing liquidity. Muvico, LLC, a subsidiary of AMC, issued $857 million in new Senior Secured Notes due 2029 and $194.4 million in new Exchangeable Notes in exchange for existing notes and new financing. The company also secured stockholder approval for an amendment to its certificate of incorporation, increasing the authorized shares of Common Stock to facilitate the exchange of the New Exchangeable Notes. These actions were intended to address liquidity concerns and extend debt maturities.

Key operational developments included the continued expansion of AMC's customer engagement initiatives, such as the AMC Stubs loyalty program, which had approximately 39 million member households as of December 31, 2025, representing about 51% of U.S. market attendance. The company also focused on enhancing the in-theater experience through recliner seating, premium large format (PLF) screens, and expanded food and beverage offerings. As of December 31, 2025, AMC operated 855 theaters with 9,640 screens across 11 countries, including 533 theaters with 7,072 screens in the United States and 322 theaters with 2,568 screens in European markets. The company also continued to explore adjacent opportunities, such as theatrical distribution and retail popcorn sales, to extend the AMC brand.

Looking ahead, AMC expects to continue seeking to retire or purchase outstanding debt through cash purchases and/or exchanges for equity or debt. The company also plans to continue investing in its theaters to enhance the customer experience and explore attractive acquisitions. However, the company acknowledges significant risks and uncertainties, including the need to increase revenues and attendance to pre-COVID-19 levels to achieve net positive cash flows, potential dilution from future sales of Common Stock, and the impact of changing movie-going behavior and distributor practices. The company's ability to meet its obligations and remain viable depends on its ability to generate additional liquidity and increase revenues, and there is a risk of potential restructuring or bankruptcy proceedings if these efforts are unsuccessful.