National CineMedia Reports Revenue Decline and Increased Operating Loss in Q2 2025

National CineMedia, Inc. (NCM) reported a decline in financial performance for the second quarter of 2025, with total revenue of $51.8 million, down 5.3% from $54.7 million in the same period last year. For the first half of the fiscal year, revenue also decreased by 6.0%, totaling $86.6 million compared to $92.1 million in the prior year. The company attributed this decline to macroeconomic uncertainties affecting advertising spending, which led to a reduction in both national and local advertising revenues. National advertising revenue fell to $41.2 million, a decrease of 1.2%, while local and regional advertising revenue dropped significantly by 34.7% to $6.4 million.

Operating expenses for the second quarter remained relatively stable, decreasing slightly to $63.8 million from $64.0 million year-over-year. Notably, theater exhibition fees increased by 15.7% to $30.9 million, reflecting a rise in network attendance, which was up 24.2% to 115.3 million moviegoers. Despite the increase in attendance, the overall operating loss widened to $12.0 million from $9.3 million in the previous year, with a net loss attributable to NCM, Inc. of $10.7 million, compared to $8.7 million in the second quarter of 2024.

In terms of strategic developments, NCM has made significant changes to its agreements with AMC, extending the term of its Exhibitor Services Agreement (ESA) by five years and waiving certain rights under previous agreements. This move is expected to enhance NCM's advertising capabilities in AMC theaters. Additionally, the company entered into a new $45 million senior secured revolving credit facility in January 2025, which is anticipated to reduce overall interest expenses and provide liquidity for operational needs.

As of June 26, 2025, NCM's total assets were reported at $462.0 million, down from $568.6 million at the end of the previous fiscal year. The company’s cash and cash equivalents decreased to $37.2 million from $75.1 million, reflecting the impact of operational cash flows and financing activities, including stock repurchases totaling $18.7 million in the first half of 2025. The company’s employee headcount and customer engagement metrics, including 7.4 million mobile app downloads, indicate ongoing efforts to enhance its advertising platform.

Looking ahead, NCM anticipates continued challenges in the advertising market due to economic conditions but remains focused on leveraging its strategic partnerships and expanding its advertising reach. The company plans to utilize its available cash and credit facilities to support operations and potential future dividends, contingent on financial performance and market conditions.