Reading International Q2 2026 Earnings Report

Reading International EPS Results

• Actual EPS: $0.10
• Consensus EPS: $0.06
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

Reading International Revenue Results

• Actual Revenue: $66.90 million
• Expected Revenue: $63.47 million
• Beat/Miss: Beat by +$3.43 million
• YoY Revenue Growth: N/A

Reading International Announcement Details

• Quarter: Q2 2026
• Date: 8/14/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 18, 2026
• Conference Call Time: 8:00AM ET

Reading International (NASDAQ:RDI), Inc. is an entertainment and real estate company that operates cinemas and owns, develops and manages real estate assets. Its cinema business focuses on exhibiting motion pictures through theater brands serving local and regional markets.

The company operates cinemas under the Reading Cinemas, Angelika Film Center and Consolidated Theatres brands. These venues generally offer feature-film screenings along with amenities such as premium seating, food and beverage service, and specialty or independent-film programming.

Reading International has cinema operations in the United States, Australia and New Zealand. Through its real estate activities, the company owns and manages properties associated with its entertainment venues as well as other commercial and development projects. The company’s operations reflect its historical focus on combining cinema exhibition with real estate ownership and development.

Reading International Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Reading International reported a strong second quarter, with revenue rising 11% to $66.9 million, operating income increasing 159% to $7.5 million, and adjusted EBITDA up 79% to $11.3 million. Net income attributable to the company improved to $2.3 million from a $2.7 million loss a year earlier.
• Positive Sentiment: The Australian cinema business delivered record quarterly revenue and a 91% increase in operating income in local currency, supported by a stronger film slate, higher attendance, record ticket prices, and improved food-and-beverage spending. Management also cited continued growth in loyalty memberships and strategic initiatives across its cinema markets.
• Positive Sentiment: Management expects a strong second half of 2026, highlighting upcoming releases including Spider-Man: Brand New Day, The Odyssey, Avengers: Doomsday, Dune: Part Three, and Jumanji 4. U.S. cinema revenue declined slightly, but operating income improved 40%, while the renovated Bakersfield theater generated a 43% revenue increase.
• Negative Sentiment: Liquidity and refinancing remain important risks: cash was $5.7 million at quarter-end, total borrowings were $183.1 million, and the company has relied on maturity extensions and covenant changes. The Santander loan was extended only to October 1, 2026, although management expects a replacement financing arrangement within the next few months.
• Neutral Sentiment: Reading is pursuing asset sales to reduce debt, including the Cinema 1, 2, and 3 property, where it has narrowed the process to a preferred residential developer and expects a potential early-fourth-quarter closing. Net proceeds would primarily repay approximately $25.1 million of debt, with remaining funds potentially allocated to further debt reduction, cinema renovations, and operating accruals.

Presentation

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Thanks for joining the 2026 second-quarter earnings call for Reading International, Inc. My name is Gilbert Avanes. I am the company's Chief Financial Officer and Treasurer. Joining me today is Ellen Cotter, our President and CEO. After I run through the normal caveats, I will start by presenting the results from our 2026 second quarter. I will also talk about our balance sheet liquidity and provide a summary of our debt position. Then I will turn the call over to Ellen, who will discuss our business strategy. After that, we will address some specific questions that came in from our stockholders, understanding that we have tried to weave answers to many stockholders' questions into our prepared remarks. Let me start with running through the usual caveats. Some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Such statements are based on our current expectations and assumptions that are subject to a number of risks and uncertainties. We undertake no obligation to update any forward-looking statements. Actual results could differ materially. Please refer to our Form 10-K and 10-Q, including the risk factors. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our earnings release issued August 14, 2026, which has been released publicly and is available to the public through the investor relations tab on our website at readingrdi.com. With that behind us, I will go over the results from Q2 2026 and the first six months of 2026, which we are pleased to announce were both stronger than the prior-year period. We set multiple records this quarter, which we will discuss in more depth later in our call.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

We believe it is significant that our second-quarter cinema segment operation earnings were the best quarter since Q2 2019, and on a total company level, we had the best quarter of operations since Q2 2018. Our Q2 2026 consolidated revenue increased by $6.5 million to $66.9 million quarter-over-quarter. A few factors drove these improvements. The film slate for the quarter in Australia proved to be a stronger lineup compared to Q2 2025, leading to increased attendance and F&B revenues. Increased real estate revenues in U.S. led by improvements in live theater revenues, primarily as a result of improved programming at our Minetta Lane Theatre. The strengthening of the Australian foreign exchange rate against the U.S. dollar.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Historically, around 50% of our revenue has been generated in Australia and New Zealand, and during the second quarter of 2026, that rose slightly, with 53% of our revenue being generated internationally. Due to the Australian dollar strengthening against the U.S. dollar by 11% in the second quarter of 2026, this positively impacted our results. Consolidated revenue for the six months ended June 30, 2026, increased by $11.5 million to $112 million when compared to the same period of 2025. These increases are due to increased attendance in Australia as a result of overall stronger movie slate, including titles such as "Michael," "The Super Mario Galaxy Movie," "The Devil Wears Prada 2," "Project Hail Mary," and "Toy Story 5." Increased revenue in our U.S. and Australia real estate division, and the strengthening of our Australian and New Zealand currencies by 11% and 1%, respectively.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

At $2.3 million, our Q2 net income attributable to Reading International, Inc increased by 185% from a loss of $2.7 million in Q2 2025. This was primarily due to improved segment results as a result of strengthened performance of our Australia cinema and our U.S. real estate, offset by a Q2 2025 gain on sale of assets which did not repeat in Q2 2026. Net loss attributable to Reading International, Inc for the six months ended June 30, 2026, decreased by $1.5 million from a loss of $7.4 million to a loss of $5.9 million when compared to the same period in the prior year. These results were primarily due to strengthened cinema and property segment results, a $1.5 million savings in G&A, a $0.5 million savings in interest expense, and a $2.4 million increase in other income.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

These improvements for both quarter-to-date and year-to-date were assisted by the strengthening of our Australian dollar but are partially offset by increased tax expenses. Our basic earnings per share for Q2 2026 increased by $0.22 to a basic earnings per share of $0.10, compared to a basic loss per share of $0.12 for Q2 2026. The increase is due to the same factors as our increase in our net income. Basic loss per share decreased by $0.07, to a loss of $0.26, compared to a loss of $0.33 for the first six months of 2025. Again, these improved results were due to the same factors as our improvements in our six months ended June 30, 2026 net income.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Our Q2 2026 global operating income of $7.5 million improved by $4.6 million compared to an operating income of $2.9 million in Q2 2025. At $11.3 million, our Q2 2026 adjusted EBITDA income increased by $5 million, or 79%, compared to an EBITDA income of $6.3 million for the same time period last year. For the six months ended June 30, 2026, our adjusted EBITDA increased by $1.2 million to $10.4 million compared to the same prior-year period. These results were primarily the result of improved operating performance as opposed to asset sales. Turning now to our financial position. As of June 30, 2026, our total assets were $429.4 million, compared to $434.9 million on December 31st, 2025. This decrease was primarily driven by a $4.9 million decrease in cash and cash equivalents, from which we funded our ongoing business operations.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Our total asset base remained largely consistent, within which, in February 2026, we classified our Cinemas 123 property as held for sale. As of June 30, 2026, our total outstanding borrowings, gross of deferred financing costs, were $183.1 million, compared to $185.1 million on December 31st, 2025. Our cash and cash equivalents as of June 30, 2026, were $5.7 million, which was slightly increased over the prior quarter. So far in 2026, and over the past year, we have worked with our key real estate lenders to extend maturity dates, modify principal repayment dates, and adjust existing covenants. On February 6, 2026, we executed an amendment to defer principal payment relating to our 44 Union Square loan, which was since paid on March 13, 2026. On February 27, 2026, we executed an amendment to modify the principal repayment schedule of our Bank of America, Bank of Hawaii facility.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

On March 31st, 2026, we executed an amendment to reduce our NAB loan minimum liquidity requirements for a limited defined period in 2026. On June 12, 2026, we extended the maturity date of our Bank of America facility to December 21st, 2026. On August 11, 2026, we extended the maturity date of our Santander loan to October 1st, 2026. Now, let me turn it over to Ellen, who will give us an overview of the business in the second quarter of 2026.

[Ellen Cotter, President and CEO at Reading International, Inc]

Thanks, Gilbert, and welcome everyone to today's call. We were so pleased with our results for the second quarter of 2026. A much stronger movie slate, coupled with a laser focus by our team on strategic priorities, led the company to achieving several post-pandemic milestones. At $66.9 million, Reading's Q2 2026 total revenue was the highest second quarter in the last six years, or since Q1 2019. Our global cinema division delivered an 11% increase over last year and the highest quarterly global cinema revenue since the fourth quarter of 2019. Our Australian cinema circuit generated a 31% increase over the same quarter of the prior year and a 52% increase from the first quarter of 2026. Also, our Australian cinema circuit delivered their highest quarter total revenue ever in both local currency and U.S. dollars, and their highest quarter segment revenue ever.

[Ellen Cotter, President and CEO at Reading International, Inc]

At $7.5 million, Reading's second quarter operating income improved 159% over the same quarter last year and was the best quarter result since Q2 2018. On a total segment operating income basis, we reported $10.7 million, which increased 55% over the same quarter last year and was the best result in the last eight years or since Q2 2018. If you exclude the sizable asset sales or large gains on sale that occurred in the second quarter of 2021, at $11.3 million, our Q2 2026 EBITDA was the best second-quarter result in the last seven years. At $4.9 million, our Q2 2026 global real estate revenues increased by 4%, primarily due to the improved performance of our U.S. live theaters. Note, our global portfolio now reflects the 2025 sale of our assets in Townsville, Australia, and Wellington, New Zealand.

[Ellen Cotter, President and CEO at Reading International, Inc]

While the sale of Cannon Park eliminated future revenues and costs, the sale of Wellington, primarily for this period, removed holding costs. Our U.S. real estate division delivered its highest second-quarter revenues ever due to a strong quarter from our live theater division. During the second quarter, our commercial theaters retreated to a diverse and powerful film lineup. Audiences from around the world embraced original movies like Michael, Backrooms, and Obsession. Audiences returned to support some of the industry's strongest film franchises like The Super Mario Galaxy Movie, The Devil Wears Prada 2, and Toy Story 5. Not only do we enjoy a superior film lineup, our execution on key strategic initiatives across the company's cinema divisions generated improved operations. We continued expanding our F&B programs across our cinema divisions with a focus on our movie theme menus and merchandise.

[Ellen Cotter, President and CEO at Reading International, Inc]

We believe our attendance was supported by improvements to our global loyalty programs, which I'll touch on shortly. Across our global cinema circuit, we're continuing to work with our landlords to reduce our overall occupancy costs to reflect the fact that attendance has not returned to pre-pandemic levels. At the same time, our labor and operating expenses, for the most part, have increased across the board. In certain markets like Hawaii, increases in labor have been significant. Looking forward, we're excited about the momentum for the third and fourth quarters of this year.

[Ellen Cotter, President and CEO at Reading International, Inc]

During the third quarter, our global theaters are still enjoying the spectacular box office from "Spider-Man: Brand New Day" and "The Odyssey." The December lineup looks equally fantastic with three highly anticipated franchise films, "Avengers: Doomsday," "Dune 3, and "Jumanji 3." Along with industry analysts and press, we continue to believe that 2026 is poised to be the best post-pandemic box-office year-to-date. With respect to our balance sheet, I'll reiterate, our board has directed the team to reduce Reading's overall debt position. Executing on this priority, we're actively working on the sale of our Cinema 123 property, which I'll touch on in a few minutes. Despite the anticipated sale of the Cinemas 123, we remain fully committed to our two-business, three-country strategy, which we believe will continue to serve us well into the future.

[Ellen Cotter, President and CEO at Reading International, Inc]

The founder of our company put into place structures that would assist us in surviving market downturns, such as those triggered by the pandemic and the 2023 Hollywood strikes. We've been able to use that structure to monetize properties which were in good markets and commanded good prices, but which were unlikely to appreciate in value without material capital investment. This has supported our overall operations and helped us reduce our debt load. Given what we believe to be the current trajectory of the cinema industry, we believe our founder's strategy has worked. We've been able to continue our operations, to continue to support our workforce, continue to service our customers, and working with our lenders, landlords, and vendors on a cooperative basis to meet our obligations to third parties and retain our key assets.

[Ellen Cotter, President and CEO at Reading International, Inc]

Our anticipated sale of our Cinema 123 and Newberry Yard assets will assist us in further paying down debt and provide seed money for the upgrading of our cinemas. In summary, while we've monetized certain real estate assets over the last five years, these decisions were made strategically to address liquidity needs resulting from the pandemic, the unprecedented 2023 Hollywood strikes, and historic increases in interest rates and inflation. As I said, we focused on assets that were either generating negative cash flow or, after debt service, did not materially contribute to cash flow, and that we believed had reached their highest reasonably achievable value without significant additional capital investment. We believe we maintain a strong portfolio of cinema and real estate assets, most of which currently generate positive cash flow or are expected to do so in the future.

[Ellen Cotter, President and CEO at Reading International, Inc]

We've also successfully navigated the significant challenges of the past six years without receiving one penny of U.S. government pandemic assistance, pursuing debtors' rights remedies, or diluting our stockholders. Now, let's turn to our global cinema business. As we just mentioned, at $63 million, our global cinema revenue increased 11%. At $9.2 million, our global cinema operating income improved by 68% and represented the best second-quarter result for this metric for the last seven years, or since Q2 2019. As we've said, the stronger second-quarter cinema performance was fueled primarily by our Australian cinema division, the execution of our key strategic initiatives, and the strengthening of the Australian dollar. These revenue results were achieved despite the elimination of revenue from the closure of two San Diego cinemas, one that closed on June 1st, 2026, and another in April of 2025.

[Ellen Cotter, President and CEO at Reading International, Inc]

The Q2 2026 global movie slate delivered for Australian cinema operations. Four titles grossed over AUD 2 million in that circuit for the second quarter of 2026: Michael, The Super Mario Galaxy Movie, The Devil Wears Prada 2, and Toy Story 5. Compared to only two films in the second quarter of 2025: A Minecraft Movie and Lilo & Stitch. Additionally, the quarter was further supported by strong holdover grosses from Project Hail Mary, Backrooms, and Obsession. Let me highlight a few of those key 2026 strategic initiatives that I referred to. Our F&B program continues to be an area of focus.

[Ellen Cotter, President and CEO at Reading International, Inc]

When you include only periods when each of our circuits were fully operational, i.e., excluding pandemic closure periods, at AUD 8.37 and NZD 7.22, our Australian and New Zealand cinema divisions established F&B spend per person records, with New Zealand achieving their highest quarter ever, and Australia achieving their highest second quarter ever, which was also the second highest quarter level ever. These strong F&B results were supported by the continued sale of movie merchandise and the development of movie-themed menus. I'll note in the last few months, Reading Cinemas in Australia has launched a new webpage dedicated to movie merch. At $8.97, our U.S. team outperformed the industry and delivered a higher second quarter F&B SPP than our publicly traded competitors. The Q2 2026 F&B SPP represented our third-highest quarter ever for that metric.

[Ellen Cotter, President and CEO at Reading International, Inc]

We believe we did not achieve a quarterly record because of the continued growth in our popular Discount Tuesday program, which features discounted concession offers, and the expansion of our membership program, which provides 5% cash back on F&B purchases and an additional 10% discount for premium members. Due to the very strong six-month movie lineup and the focus of our global teams, all three countries achieved their highest June year-to-date ever for F&B SPP. We're also continuing to engage our guests and attract new guests through our new and improved loyalty programs, both free-to-join rewards and paid membership programs. Our loyalty programs are an important tool for encouraging guest engagement and improving guest experience in our theaters, and we continue to look for creative ways to attract more members and enhance the quality of their visits.

[Ellen Cotter, President and CEO at Reading International, Inc]

In the fourth quarter of 2024, we revamped and relaunched our free-to-join Reading Rewards program in Australia and New Zealand to provide better perks and savings. As of the end of the second quarter of 2026, we have over 625,000 members, a 27% increase over the first quarter of this year. With respect to our paid memberships in Australia and New Zealand for both our Reading and Angelika brands, we signed up over 41,000 paid memberships in Q2 2026, a 72% increase over last quarter. In the U.S., through December 2025 and January 2026, we launched a new free-to-join rewards and premium membership program in our six consolidated theaters in Hawaii and three Reading Cinemas. Since that launch, we've signed up 41,000 rewards members and 2,500 paid members. In the U.S., our free-to-join Angelika membership program has approximately 190,000 members for our eight Angelika-branded theaters.

[Ellen Cotter, President and CEO at Reading International, Inc]

We expect to launch our premium Angelika monthly membership before the end of 2026. A key initiative for our global executive teams has been working with our cinema landlords to realign occupancy costs with the economic realities of recent years. Operating costs in almost every category have materially increased while attendance continues to remain below pre-pandemic levels. We have limited headroom to raise ticket and F&B prices. The lion's share of any increase in our ticket prices generally goes to the film companies. In this regard, we're in the same boat as the rest of the industry. Along these same lines, since the pandemic started in early 2020, we've reduced our global cinema count by nine theaters to eliminate loss-making locations.

[Ellen Cotter, President and CEO at Reading International, Inc]

None of these cinemas were profit-making, none led to early termination or early exit fees, and upon review, we've concluded that it was unlikely they could return to profitability without material CapEx, if at all. In all but one case, these locations have either been converted to other uses or remain dark. While closing these loss-making cinemas reduced gross revenue in the short term, it improves net income by eliminating locations that were reducing our profitability, benefiting our bottom line both now and over time. Before we look at each of our Australian, New Zealand, and U.S. cinema divisions, let me mention another milestone achieved by each global cinema division. During Q2 2026, each cinema division delivered the highest cash flow pre-occupancy per capita ever achieved for any quarter, which we believe reflects the team's focus on revenue maximization and expense minimization.

[Ellen Cotter, President and CEO at Reading International, Inc]

This disciplined approach will serve us well into the future as our box office continues to improve. Now, let's take a closer look at the 2026 second quarter results for our U.S. cinemas. While our second-quarter cinema revenue decreased slightly by 3% compared to last year, our operating income improved by 40% compared to the same period last year. The slight decrease in revenue is attributable to the strength of the prior year's second-quarter titles, "Lilo & Stitch" and "A Minecraft Movie," each of which overperformed in our cinemas in Hawaii, which over the last two years has averaged about 35% of our U.S. cinema revenue. The closing of our two theaters in San Diego, which impacted these revenue results as well. The June 2026 closure of the Reading Cinema at Grossmont and the April 2025 closure of the Reading Cinema at the Town Square Mall.

[Ellen Cotter, President and CEO at Reading International, Inc]

The second quarter 2026 underperformance of our dedicated art houses, like the Angelika New York, due to a weaker slate of key art titles also impacted the U.S. cinema total cinema revenues. Regarding the U.S. cinema CapEx spend in 2026, during the first quarter, we completed a major renovation of our Reading Cinemas at the Valley Plaza Mall in Bakersfield, which included the addition of a Titan Luxe screen with Dolby Atmos and luxury recliner seats, adding recliners to our IMAX screen, and converting eight other screens to recliners. Following the completion of this renovation and also assisted by better film availability, our Q2 2026 total revenues at this cinema have increased by 43%, which is well in excess of our total U.S. cinema second-quarter average. We are working on a seat refurbishment plan to improve our theater seats that were damaged by mandated disinfectant during the pandemic.

[Ellen Cotter, President and CEO at Reading International, Inc]

We have commenced seat improvements at two of our lead theaters in Hawaii and expect all of the seats in those theaters to be completed in the third quarter of 2026. This renovation project was funded through cash flow as opposed to outside sources. Through 2026 and into 2027, we expect to complete the seat improvements across our U.S. circuit, in some cases, assisted by landlord contributions. Understanding that our audiences are looking for premium experiences, we are also exploring the opportunity with leading vendors to add premium concepts to our theaters, including improved projection, sound, and experiential seating concepts. Turning to our cinemas in Australia and New Zealand. Our Australian circuit had a phenomenal quarter. In the second quarter of 2026, our Australian cinema revenue increased 31% to AUD 30 million, which set a record for our Australian circuit for the highest quarter ever.

[Ellen Cotter, President and CEO at Reading International, Inc]

Our operating income increased 91% to AUD 5.6 million from an operating income of AUD 2.9 million. Our Q1 2026 New Zealand cinema revenue decreased by 2% to NZD 3.5 million. Our operating income improved by 61% to NZD 387,000 from an operating income of NZD 241,000. During the second quarter of 2026, our international cinemas delivered average ticket prices that established record highs. Our Australian cinema circuit second-quarter ATP of AUD 16.89 was the highest quarter ever. Our New Zealand cinema circuit second-quarter ATP of NZD 15.58 also set a record for its highest quarter ever. With respect to our 2026 international CapEx spend, our most important investment over the next couple of years will be the complete renovation of our Reading Cinema in Wellington, New Zealand.

[Ellen Cotter, President and CEO at Reading International, Inc]

We believe strongly in the Wellington market as a strong movie-going town, which is also now home to some of the most creative visual effects communities in the world, also with being the home of best-in-class filmmakers James Cameron and Peter Jackson. Our renovation plans include luxury recliners in all auditoriums, the creation of at least two premium large-screen concepts such as Titan Luxe, the creation of at least three elegant Gold Lounge auditoriums to feature waiter service, an overall upgraded food and beverage offer, and the creation of an elevated hotel-like lobby lounge. We anticipate that our landlord will be completing their seismic upgrade of the building in the next six to nine months, which would then allow us to complete our fit-out in time for a projected launch in late 2027.

[Ellen Cotter, President and CEO at Reading International, Inc]

Our optimism for the cinema is supported by the fact that prior to its closure for seismic issues in January of 2019, this theater was historically always one of our top five global cinemas, as well as being among the top grossing cinemas in New Zealand. Next, let's turn to our global real estate business, which on a segment reporting basis includes not only our third-party rental income but also our live theater business in New York City and our intercompany cinema rents. Starting with the second quarter of 2026 global real estate results and compared to the same period in 2025, at $4.9 million, our second quarter 2026 global real estate total revenue increased 4%. At $1.6 million, our second quarter total operating income increased by 7%.

[Ellen Cotter, President and CEO at Reading International, Inc]

Breaking it down by division for the second quarter of 2026 and compared to the same period last year, with respect to Australia, our real estate revenue increased by 1% to AUD 2.8 million, and our operating income of AUD 1.3 million remained relatively flat. At NZD 212,000, our New Zealand real estate revenue remained flat. Our Q2 2026 New Zealand real estate operating income of NZD 53,000 also remained flat. Our second quarter 2026 U.S. real estate revenue of $1.9 million increased by 11%, and our operating income of $183,000 increased by 106%.

[Ellen Cotter, President and CEO at Reading International, Inc]

With respect to our Australian-New Zealand portfolio, as of June 30, 2026, due primarily to our asset monetizations in Wellington and Townsville, the number of third-party tenants in our combined Australian and New Zealand real estate portfolio reduced to 58 and is now primarily made up of tenants at Newmarket Village in Brisbane and the Belmont Common in Perth.

[Ellen Cotter, President and CEO at Reading International, Inc]

The quality of our remaining tenants is strong, with a portfolio occupancy rate of 98%. Our Newmarket Village property continues to thrive. Quarterly percentage rent received from third-party tenants has increased quarter-over-quarter, with major tenants achieving percentage rent. In addition, we're aware that a major tenant in our Australian portfolio may be considering a full refurbishment investment in their space in the near future. Now, turning to our U.S. real estate business. Regarding our live theater segment, our second quarter 2026 was stronger than last year, driven by continued demand for the Orpheum Theatre following the departure of Stomp. The theater hosted performances of 11 to Midnight, a theatrical dance experience starring TikTok viral sensations Cost and Mayor, which was extended into the second quarter of 2026.

[Ellen Cotter, President and CEO at Reading International, Inc]

During the second quarter of 2026, the Minetta Lane Theatre also hosted several critically acclaimed productions that were well-received by audiences, including two shows starring Hugh Jackman, Sexual Misconduct of the Middle Classes and Newborn. Additionally, audiences at the Minetta Lane enjoyed What Happened Was. Turning to our 44 Union Square property. While Petco continues to delight pet parents across New York City with its award-winning retail store, we still have four floors left to lease at 44 Union Square. As previously reported, we re-engaged Newmark, the same leasing team that brought the Petco deal to us and was completed by the team in January of 2022. While the summer months historically are not the strongest months for New York City commercial leasing activity, the paced leasing tours conducted by Newmark, even during the dead summer months, compared to earlier brokers, is a marked improvement.

[Ellen Cotter, President and CEO at Reading International, Inc]

As previously reported, Newmark has toured a range of potential tenants whose uses focus on wellness, education, entertainment, and co-working. Newmark's enthusiasm for our space coincides with positive industry reporting from community and brokerage houses who focus on the Union Square area. For instance, the Union Square Partnership, a community-based organization, reported in July of 2026 that the Union Square office market remains stronger than other areas of Manhattan, with a 12.9% availability rate versus a 14.3% Manhattan average. Many prime office buildings have reached 100% occupancy this year. The report further noted that storefront occupancy improving over last year is at 90.1% with the Union Square Partnership bid boundary as of July 2026. We received questions about a potential refinance upon the successful leasing of the remaining floors at 44 Union Square. Other potential lenders have toured the space.

[Ellen Cotter, President and CEO at Reading International, Inc]

However, we need to wait to see the final makeup and credit status of the tenant or tenants to occupy the remaining floors to take a position on the refinance. We also received a number of stockholder questions about the sales process for the Cinema 123 building in New York City, across the street from Bloomingdale's on the Upper East Side. Through Newmark, again, we generated significant buyer interest in the property. We have narrowed the field to a preferred buyer, a residential developer well experienced in local redevelopment, and are currently working with that buyer on definitive documentation. While no assurances can be given, we expect that a contract of sale should be executed shortly with a closing in the early fourth quarter. If this particular deal is not consummated, we would expect Newmark to pivot relatively easily to another buyer.

[Ellen Cotter, President and CEO at Reading International, Inc]

We believe that the Upper Manhattan market for redevelopment assets like the Cinema 123 continues to improve. Our Newberry Yard property in Williamsport, Pennsylvania, remains classified as held for sale. We have been in recent communications with a few parties interested in our property. Each of these groups is a strategic buyer who wants to use our 23-acre parcel for industrial and/or rail-tied uses. We continue to believe that a strategic buyer is the best resolution for this property, given its access to established rail infrastructure. However, this means that the process is taking longer than a process looking for a sale to a buyer who will not add value for the benefits of this infrastructure. The property is unleveraged and has a relatively low carrying cost, so we continue to believe that our approach is the best approach to maximize the value of this asset.

[Ellen Cotter, President and CEO at Reading International, Inc]

In summary, our real estate segment is stable and has room for growth as we lease up the remaining space at 44 Union Square. We are bullish on our cinema segment for a variety of reasons, including the quality of the remaining 2026 movie slate. Moviegoers and studios are rediscovering the joy and economic benefits of a cinema release. Studios, including Universal and Paramount, have recently publicly confirmed their commitments to a 45-day theatrical window. We have been successful in culling our cinema portfolio to remove unprofitable cinemas without the payment of fees or penalties.

[Ellen Cotter, President and CEO at Reading International, Inc]

We have continued to actively manage occupancy and operating costs across our cinema portfolio, supporting the long-term sustainability and performance of our cinemas. As our liquidity improves, we are dedicated to upgrading our key cinemas in our portfolio, and we have been successful in the execution of strategic priorities like F&B and loyalty expansion to drive higher cinema attendance.

[Ellen Cotter, President and CEO at Reading International, Inc]

With that, I'm going to wrap up my business report. We thank you all again for listening, and thank you to our stockholders for sending in questions to the investor relations email. But as usual, in addition to addressing many of your questions in the prepared remarks, we've selected a few additional questions to offer further insights. I'll start the Q&A. We've got a few questions for Gilbert. The first question: Why was the Santander, Minetta, and Orpheum refinancing not completed before the June 1 maturity? What remains unresolved, and is Reading seeking a normal multi-year refinance, or should shareholders expect another short extension? Gilbert?

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

We have a good long-term relationship with Santander, but the bank's focus is now on other real estate classes. While this loan has been on their books for a long time, they would like to move on. We believe that we have a deal with a replacement lender and are in a due diligence and administrative process with that lender. As we go through these steps and have needed additional time, Santander has provided an extension. These assets have a strong cash flow, and though we can provide no assurance that we'll consummate a refinance, we do expect a new arrangement to be in place in the next few months.

[Ellen Cotter, President and CEO at Reading International, Inc]

Great. Thanks, Gilbert. Let me give you another question. What is Reading International's current NOL? Will such NOLs protect from capital gains taxes on real estate assets to be sold?

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Tax issues are complex. Accordingly, the following is highly generalized and summary in nature. Basically, Reading currently has a potential NOL of approximately $40 million tax-affected. However, for GAAP accounting purposes, we have established a reserve against this deferred tax benefit of $40 million, reflecting our annual loss recorded in recent years. To the extent we have capital gains in the U.S., we can reduce up to 80% of our taxable gain through the use of NOLs, except for in California. Of course, any current operating losses would be first 100% applied against any such gains. California has enacted certain limitations on the use of NOLs, and since reported income on a combined basis with our U.S. subsidiaries, we will not get the full benefit of such NOLs with respect to our California state income tax. Let me address some questions to Ellen. Cinemas 123 proceeds.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Assuming the sale is completed, how does management expect to prioritize the net proceeds remaining after repayment of property mortgage and transaction expenses? Ellen?

[Ellen Cotter, President and CEO at Reading International, Inc]

Okay. As our stockholder noted, we'll first pay down the Valley National debt of about $19.7 million. Currently, that loan carries an interest expense of about $2 million per year. We'll also pay down the remainder of the Bank of America, Bank of Hawaii debt of approximately $5.4 million that carries an annualized interest expense of about $650,000. After that, among the items that we may deploy our funds to, they include, without limitation, a further reduction of our global debt to further reduce our overall interest expense, renovation of certain key cinemas, and the paydown of other operating accruals.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Okay. At the Q1, Newberry Yard was under contract for sale with an expected cinema leaseback. The Q2 10-Q now says the sale is on hold because of unforeseen issues involving the owner of the car park that the cinema leases. What specifically is the car park owner issue? What must happen for the sale to proceed? Does the existing buyer remain committed? Have timing, economics, or leaseback terms changed? Ellen.

[Ellen Cotter, President and CEO at Reading International, Inc]

Okay. At the present time, we don't have a deal on the table for the sale of this asset that's acceptable to us. Our potential buyer has requested changes to the draft purchase and sale agreement and the leaseback arrangement, which have caused us to press pause for the moment. A change of ownership of the car park that the cinema leases also occurred, which caused the buyer to request further changes in our documentation. Those changes, from our perspective, contributed to the overall transaction not being as attractive. In terms of U.S. dollars, the contemplated deal is not material to the company's overall liquidity strategy.

[Ellen Cotter, President and CEO at Reading International, Inc]

In light of stronger asset sales and a marked improvement in our cinema and live theater businesses, we are evaluating whether the cash flow expected to be generated from the cinema at Napier and the third-party tenant or a potential new third-party tenant are strong enough to outweigh the cash infusion from the potential sale of the underlying Napier property.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Our last question on Philadelphia. The Q2 10-Q says the code violation litigation was settled for a nominal amount. What is the current procedural status of the STB appeal? Has the City of Philadelphia Center City District, or any related party, made any formal offer, settlement proposal, or condemnation filings since the STB decision? Are any adjoining parcels capable of separate monetization while the broader viaduct dispute remains unresolved? Ellen?

[Ellen Cotter, President and CEO at Reading International, Inc]

All right. Let me take each of the parts of this question. First off, yes, confirming again the code violation case was settled for a nominal sum. Today, the STB case continues procedurally on appeal with the D.C. Circuit Court. Other independent parties with rail interests have filed intervening briefs in our favor, so we expect the STB case to be afoot through at least 2026. No, the City of Philadelphia or any related party has not made any offers or reached out to Reading. Yes, there are adjoining viaduct parcels that could be separately monetized, but it is, in our view, premature to review these properties for monetization until we have a more defined path with the city or another real estate developer.

[Ellen Cotter, President and CEO at Reading International, Inc]

As we have mentioned in earlier calls, we want to reiterate that the company believes that the Reading Viaduct is a valuable company asset, and any transportation in the future tied to the Reading Viaduct should represent a fair value for stockholders of Reading.

[Gilbert Avanes, CFO and Treasurer at Reading International, Inc]

Thanks, Ellen. That marks the conclusion of our second quarter 2026 conference call. We appreciate you listening to the call today.

Participants

Executives

• Gilbert Avanes, CFO and Treasurer

Analysts

• Ellen Cotter, President and CEO at Reading International, Inc