AMC Entertainment Holdings Inc AMC shares are climbing on Tuesday. The rally comes hours before the theater giant reports first-quarter financial results.

Investors are weighing a debt-to-equity exchange alongside a partnership with Netflix Inc Netflix.

• AMC Entertainment stock is showing exceptional strength. Why are AMC shares rallying?

Debt Exchange Strengthens Balance Sheet

AMC disclosed in a Monday U.S. Securities and Exchange Commission filing that it will settle a significant exchange of its senior secured exchangeable notes due 2030. Holders of approximately $155.8 million in notes from subsidiary Muvico, LLC, delivered voluntary exchange notices.

The company expects to issue roughly 129.7 million shares of Class A common stock on Tuesday to settle the bulk of this exchange.

Netflix Partnership Hits High Gear

The stock momentum also follows a Saturday announcement from CEO Adam Aron. He revealed a landmark deal for a wide global release of Greta Gerwig's “Narnia” on Feb. 12.

The film will carry a traditional 49-day exclusive theatrical window. Aron noted on X, “It should not be lost on anyone the significance of Netflix trying a real global release of a major film title.”

Earnings Expectations and Box Office Momentum

Analysts expect AMC to report first-quarter revenue of $974.61 million, according to market data. This marks an increase from $862.50 million in the prior-year period.

The domestic box office rose 24.8% year-over-year in the first quarter, reaching $1.78 billion. This growth, paired with record-breaking merchandise sales for “The Super Mario Galaxy Movie,” is fueling optimism.

AMC Stock Price Activity: AMC Entertainment shares were up 3.10% at $1.50 on Tuesday, according to market data.

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