Cinemark NYSE: CNK reported what President and CEO Sean Gamble described as a historic second quarter, with worldwide quarterly revenue exceeding $1 billion for the first time and adjusted EBITDA reaching a record $294 million.
The company said its adjusted EBITDA margin was 27.1%, its second-highest quarterly margin on record and 10 basis points below its all-time high. Cinemark also generated nearly $300 million of free cash flow, spent more than $60 million on capital expenditures and returned capital to shareholders through share repurchases and its dividend.
Gamble said results reflected a favorable film slate, investments in consumer offerings, revenue initiatives and operating leverage. The company set quarterly records in admissions revenue, concession sales and per-capita spending, premium-amenity performance and loyalty transactions worldwide, according to Gamble.
Box Office Strength and Market Share
During the question-and-answer session, Gamble said film performance helped ease some anticipated capacity constraints during the quarter. While releases were sometimes clustered, films including Backrooms and Obsession faced less competition earlier in the quarter than expected.
He said future market-share performance will depend partly on how the content mix resonates with Cinemark audiences and whether major releases become more concentrated on the calendar. Gamble noted that the company may encounter more periods with several large films opening close together during the second half of the year.
Cinemark also cited the expansion of theatrical exclusivity windows as a positive industry development. Gamble said studios began honoring commitments to 45-day windows during the second quarter, though he said it was too early to determine the long-term consumer impact.
“We certainly expect that the 45-day window—we’re optimistic about the positive benefits that will yield,” Gamble said, adding that more time will be needed for the changes to become fully established with moviegoers.
The company is looking for continued momentum in the near term from Spider-Man: Brand New Day and The Odyssey, Gamble said.
Premium Formats and New Content Sources
Cinemark said it continues to see room to expand premium formats and motion-seat offerings, although Gamble noted that enhanced amenities account for only about 15% of overall box office. During the first half of 2026, the company added seven XD auditoriums, 12 ScreenX locations, two IMAX locations, three 70 mm projectors and 112 D-BOX auditoriums.
Globally, Cinemark has about 350 premium large-format screens, including XD, IMAX and ScreenX, and roughly 660 auditoriums with D-BOX installed, Gamble said. He noted that D-BOX has fewer installation limitations because it can be deployed across a few rows in an auditorium.
Management also highlighted creator-led, anime, faith-based and foreign-language content as potential sources of incremental theatrical supply. Gamble said these releases can help fill gaps in the calendar and attract audiences that may not otherwise attend theaters.
He pointed to titles including Iron Lung, Obsession, Backrooms, Sam and Colby and Critical Role as examples of nontraditional content that has found success. Such projects can benefit from established connections between creators and their audiences, as well as word-of-mouth that can broaden their appeal, he said.
Younger Audiences, Direct Marketing and Consumer Spending
Gamble said the company is seeing healthy growth in younger moviegoers, with attendance frequency among audiences under age 25 up about 20% year over year, based on his estimate. He said younger consumers are finding the theatrical experience differentiated and communal despite having grown up with personal devices.
Cinemark is seeking to reach these audiences through studio marketing partnerships, social and digital channels and influencer networks. Gamble said the company’s “It’s Show Time” brand campaign, launched late last year, was designed in part to connect with younger consumers.
The company has reached 40 million addressable customers globally, Gamble said. Management views those customer relationships as a way to communicate with new guests after their initial visit and encourage repeat attendance through personalized and customized offers.
Chief Financial Officer Melissa Thomas said Cinemark has not observed indications that macroeconomic pressures have materially affected moviegoing. She said consumer behavior continues to be driven more by the strength of the film slate than by economic cycles, including decisions involving premium-format upgrades, concessions and merchandise.
Merchandise sales reached a record $25 million in the quarter, Thomas said. She attributed the result to film demand, consumer interest and initiatives involving product assortments, targeted allocations and inventory optimization. Management believes merchandise remains an opportunity for longer-term concession per-capita growth.
Margins, International Operations and Capital Allocation
Thomas said attendance and box office remain the largest drivers of operating leverage, while pricing, premium-format penetration, concessions and merchandise are additional areas where the company sees runway. About 40% of Cinemark’s cost structure is fixed, she said, providing leverage as attendance rises.
In Latin America, the company recorded all-time-high adjusted EBITDA and margin, according to management. Thomas said international performance is influenced by attendance, market share, ticket prices, concession spending, inflation, foreign-exchange movements and labor dynamics. Unlike the U.S. business, lease expenses in international markets are more variable, she said.
Management said the year-over-year difference in attendance growth between domestic and international markets during the second quarter was primarily a comparison effect, with recovery rates relative to 2019 remaining close between the two regions. Gamble added that the World Cup may have had some impact in the third quarter as knockout rounds progressed, particularly when Latin American teams advanced, but said the effect did not appear material.
On capital allocation, Thomas said Cinemark’s priorities remain maintaining a strong balance sheet, investing in accretive opportunities—including potential mergers and acquisitions—and returning excess capital to shareholders. Gamble said the company will remain disciplined in evaluating new builds and acquisitions, focusing on assets and projects that it believes can generate solid long-term returns.
About Cinemark (NYSE:CNK)
Cinemark Holdings, Inc NYSE: CNK is a leading theatrical exhibitor that acquires, develops and operates motion picture theatres under the Cinemark® brand in the United States and Latin America. The company's core business involves the presentation of first-run feature films coupled with an array of in‐theatre services, including concessions, premium auditoriums and loyalty programs. Cinemark's exhibition portfolio encompasses both corporate‐owned and franchised complexes, offering moviegoers a range of experiences from standard screens to large‐format halls.
The company's product offerings extend beyond ticket sales to include an assortment of concession items, such as popcorn, fountain beverages, candy and specialty snacks, as well as bar and lounge concepts in select locations.
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