Cinemark Holdings, Inc. Q1 FY2026 earnings call

The first quarter of 2026 marked the strongest first quarter since the onset of the pandemic across all revenue categories and adjusted EBITDA, with meaningful year-over-year top-line growth and margin expansion. From an execution standpoint, achieved significant year over year box office growth and sustained market share gains through programming actions and marketing strategies. Actions to increase engagement and stimulate food and beverage consumption drove record high concession sales. Diligent labor and overall cost management, combined with improved operating leverage, contributed to margin expansion. Initiatives to drive incremental growth and productivity include investments in enhanced screen formats, premium amenities, and new technologies. The industry's core fundamentals are positive with sustained consumer enthusiasm for larger-than-life cinematic experiences, strength of upcoming film content, and robust studio support of theatrical exhibition.

Worldwide revenue increased 19% versus 2025 to $643 million. Adjusted EBITDA grew 143% to $88 million, and our adjusted EBITDA margin expanded 710 basis points.

Maintain confidence in Cinemark's long-term growth prospects on account of solid financial position, distinct competitive advantages, and growth opportunities. Encouraged by continued positive momentum in industry's core fundamentals, including sustained consumer enthusiasm, strength of film content, studio support, and constructive progress in expanding the theatrical window.

Uncertainty in impact of film window changes on consumer behavior, labor cost inflation (e.g., government mandated wage increases exceeding inflation in Latin America), potential underperformance of international market film slates, and uncertainties in cost management and expense pressures.

Q: Robert Fishman of Moffett Nathanson asked about updated thoughts on film windows after CinemaCon and impact on film rental costs.

A: Sean Gamble said there's recognition shortened windows created headwinds for full attendance recovery, view recent announcements as positive step, and don't expect material impact on film rental.

Q: Robert Fishman asked about demographic breakdown of Movie Club and bringing back older moviegoers.

A: Melissa Thomas said Movie Club members' profile is consistent with general moviegoers, movie club helps all age ranges, and marketing efforts target different consumer categories.

Q: David Karnofsky of J.P. Morgan asked about traction in getting studios to space out releases and impact on market share gains.

A: Sean Gamble said seen volume recovery, recent window changes are positive, and marketing efforts contribute to market share gains.

Q: Eric Handler of Roth MKM asked about price sensitivity and concessions per cap.

A: Sean Gamble said pricing approached cautiously, per cap growth driven by strategic pricing, product mix shift.

Q: Mike Hickey of Stonex asked about CinemaCon deals and Netflix partnership.

A: Sean Gamble said Paramount is a good partner, seeking firm commitments, and Netflix discussions are productive.

Q: Drew Crum of B. Riley Securities asked about optimal mix of PLF and standard screens and cost efficiencies.

A: Sean Gamble said there's runway for PLF screens, Melissa Thomas said focusing on labor and COGS efficiencies.

Q: Omar Mahias of Wells Fargo asked about M&A appetite and Latin America performance.

A: Sean Gamble said M&A on table, Melissa Thomas said Latin America underperformance due to film slate not resonating.

Q: Chad Bynum of Macquarie asked about impact of Middle East conflict on costs and attracting Gen Z.

A: Melissa Thomas said cost impact not material, Sean Gamble said launched brand campaign and used influencers to attract Gen Z.

Q: Patrick Scholl of Barrington Research asked about audience impact of shortened windows and concession merchandise.

A: Sean Gamble said difficult to pierce out audience impact, merchandise growth tied to new releases.

Q: Steven Lazachick of Goldman Sachs asked about competitive environment and expense modeling.

A: Sean Gamble said competitive environment strengthening, Melissa Thomas said modeling expenses considering attendance and growth.

Q: Eric Wold of Texas Capital asked about margin leverage.

A: Melissa Thomas said expecting leverage from fixed expenses and top-line growth