AMC shares climb 8% as Q2 results beat expectations and losses narrow

AMC Entertainment stock rose 8% in early trading Monday after the movie theater chain reported stronger-than-expected second-quarter 2025 results, buoyed by higher attendance and a sharp narrowing of losses. The performance signals progress in the company’s ongoing recovery from pandemic-era declines and industry disruptions.Revenue growth outpaces forecastsAMC posted revenue of nearly $1.4 billion for the quarter, a 35% year-over-year increase that exceeded Wall Street’s estimate of $1.35 billion, according to LSEG data. The company’s top-line growth was supported by a 26% increase in moviegoers compared to the same period last year, reflecting a rebound in audience turnout.The quarter’s results also highlight a significant improvement in profitability. AMC reported a net loss of $4.7 million, or 1 cent per share, compared to a $32.8 million loss, or 10 cents per share, in the second quarter of 2024. On an adjusted basis, the company broke even for the quarter—beating analyst expectations of an 8-cent adjusted loss per share.CEO Adam Aron credited the results to a “recovering industry-wide box office,” noting that the chain has been navigating a challenging environment marked by last year’s dual writers’ and actors’ strikes, along with lingering impacts from reduced post-pandemic attendance.Debt maturities extended to 2029In addition to stronger operating performance, AMC made progress in shoring up its balance sheet. The company said it has addressed all of its 2026 debt maturities, extending them to 2029. Aron described the move as establishing “a solid foundation” for AMC to capitalize on expected growth in the theatrical market.Looking ahead, the CEO said the company anticipates continued box office momentum in the fourth quarter of 2025 and well into 2026, underpinned by a stronger film release slate and improving consumer demand.Despite the positive developments, AMC continues to face a sizable debt burden. Aron emphasized that improving the company’s financial position remains a priority as it works to convert recent attendance gains into sustained profitability.Premium offerings drive higher spending per patronAMC also reported record revenue per patron during the quarter, with consolidated admissions revenue per moviegoer surpassing $12 for the first time. Total consolidated revenue per patron reached an unprecedented $22.26.The company pointed to strong growth in its premium offerings, such as the AMC Go Plan and premium-format auditoriums, as key drivers of this increase. Premium auditoriums operated at nearly three times the occupancy rate of standard auditoriums during the quarter.Aron said the combination of a resurgent box office, AMC’s “unparalleled theatre footprint with premium experiences galore,” targeted marketing programs, and strengthening financial position creates a “flywheel impact” that boosts the company’s overall performance when these factors align.With its improved results, expanded premium services, and extended debt maturities, AMC is positioning itself to take advantage of what management sees as a sustained recovery in the movie theater industry. The company’s next challenge will be maintaining this momentum as competition for consumer entertainment spending remains intense.The post AMC shares climb 8% as Q2 results beat expectations and losses narrow appeared first on Invezz