Cinemark Holdings, Inc. Q4 FY2025 earnings call

• Delivered post-pandemic high in worldwide revenue in 2025, with adjusted EBITDA of $578,000,000 and 18.6% margin.
• Over the past three years, generated nearly $1,800,000,000 of adjusted EBITDA and over $1,300,000,000 of operating cash flow.
• Fortified balance sheet, extinguished over $700,000,000 of COVID-related debt, reinvested over $5,000,000,000 in capital expenditures, and returned $315,000,000 to shareholders.
• 2026 appears set to benefit from a robust lineup of films, with excitement about the year's slate.
• Focus on navigating evolving media and entertainment landscape, operating business, and executing strategic initiatives.
• New build pipeline reactivated, with new sites opened in El Paso in 2025, plans for Greenville, Texas in 2026, and ground broken in Omaha, Nebraska for 2027.
• Concession per cap growth driven by strategic pricing, incidence rates, and product mix shifts, with ongoing initiatives to drive growth.
• Alternative content has seen notable success, with more than 10% of box office from alternative programming in 2025, up more than double from 2019.

Worldwide revenue in 2025 was $3,100,000,000. Adjusted EBITDA was $578,000,000 with an adjusted EBITDA margin of 18.6%. Premium enhanced formats still represent about 15% of overall box office. Domestic Movie Club is up over 50% from 2019. Concession per caps domestically were up 5% year over year with strategic pricing, higher incidence rates, and shift in product mix as key drivers. International attendance fell in 2025 but 2026 is expected to be better for Latin America with a stronger film slate.

• 2026 appears set to benefit from a robust lineup of compelling films with volume of wide releases poised to reach pre-pandemic levels.
• Expect average ticket prices to increase modestly year over year in 2026, with strategic pricing and expansion of premium offerings as drivers.
• Capital expenditures in 2026 ramping up to $250,000,000 based on cash flow generation and ROI-generating opportunities.
• Optimistic about 2026 in Latin America with a stronger film slate resonating with audiences.

• Forward-looking statements subject to risks and uncertainties that could cause actual results to differ from those expressed.
• Factors causing material differences detailed in most recent annual report on Form 10-Ks.
• Windows of films being a topic for the industry, with indications that highly shortened windows may have an effect on smaller movies and casual moviegoers.
• Inflationary and FX dynamics in international markets can impact performance.
• Uncertainties regarding the outcome of the Warner Brothers deal and its impact on the industry, including theatrical windows and marketing campaigns.

Q: How many of your theaters have two XD screens? Are there plans to add more?

A: About 10% of domestic circuit have two XDs. In process of rolling out additional screens, with runway of opportunity but limits due to needing significant screens to add extra XD.

Q: Updates on new build activity?

A: New build pipeline reactivated, opened site in El Paso 2025, plans for Greenville, Texas 2026, broke ground in Omaha, Nebraska for 2027, with projects in motion taking 2-3 years to get off ground.

Q: Factors driving softer-than-anticipated slate in 2025?

A: Viewed as normal ebb and flow of industry, some overinflated expectations, lack of mega blockbuster and major summer animated film. Windows a factor but not main reason for softness.

Q: Room for operating leverage in 2026?

A: Expect stronger box office and higher attendance to support operating leverage and margin expansion, with variables like market share, average ticket prices, food and beverage per cap, and cost management.

Q: Strategies driving concession success?

A: Per caps up 5% year over year with strategic pricing, higher incidence rates, and product mix shifts. Initiatives include increasing concession stand throughput, planograms, new concepts, enhanced foods, and merchandise sales.

Q: International attendance in 2026?

A: Optimistic about 2026 in Latin America with stronger film slate, and Argentina has recovered well despite economic challenges.

Q: ATP trending and CapEx splits?

A: Expect average ticket prices to increase modestly in 2026, with $50 to $60,000,000 of CapEx on international side, and 2026 CapEx ramping to $250,000,000.

Q: New builds and recliners?

A: Most new builds in new markets, still finding recliner opportunities in existing theaters to enhance competitiveness.

Q: Film slate cadence in 2026?

A: 2026 looks to match or exceed pre-pandemic volume, with more crowded summer and year end, moving towards fluid cadence of movies throughout the year.

Q: Balancing organic growth and M&A?

A: Balanced and disciplined approach to capital allocation, evaluating M&A opportunities for accretive, high-quality assets, and focusing on deepening presence in existing markets.

Q: AI impact on business?

A: Optimistic about AI potential in driving efficiencies, revenue growth, pricing optimization, showtime optimization, app development, and content creation.

Q: Warner Brothers deal and Netflix?

A: Optimistic about Netflix recognizing theatrical exhibition value, 45-day window a good starting point but need for firmer assurances on windows, investment, and marketing.

Q: Competitive front and market share?

A: Competition grows, with efforts to ratchet up competitiveness, and believing at least 100 basis points of share gains since pre-pandemic are sustainable.