AMC Entertainment Holdings, Inc. (AMC (AMC)) shares are trading higher after the company reported better-than-expected second-quarter results. The numbers tell a story of a cinema chain that's not just surviving but thriving in a post-pandemic world where people still want to leave their living rooms for a big screen experience.

Adjusted EPS of 14 cents surpassed the analyst expectations for a loss of six cents per share. That's a swing of 20 cents per share — not too shabby for a company that was fighting for its life just a few years ago.

The largest cinema chain operator's revenue rose 14.2% year over year to $1.60 billion, exceeding estimates of $1.47 billion. This growth was supported by higher attendance, box office growth, and increased per-guest spending. People aren't just coming back to theaters; they're spending more when they get there.

Adjusted EBITDA rose 70% to a record $321.4 million, surpassing $300 million for the first time and improving $131.9 million from the prior-year quarter. Free cash flow reached $190.1 million, while adjusted EBITDA margin expanded 650 basis points to 20.1% from 13.6% a year ago, driven by revenue growth and cost discipline.

Record EBITDA Growth

Adjusted net income improved significantly to $104.3 million from a loss of $0.5 million in the year-ago quarter. That's a turnaround from near-breakeven to a healthy profit.

Adjusted EBITDA increased 69.6% to a record $321.4 million, surpassing $300 million for the first time. The company said it continues investing in premium formats, loyalty programs, and cost efficiencies, driving an adjusted EBITDA margin of 20.1%.

Operating cash flow rose 70.1% year over year to $235.4 million, and free cash flow reached $190.1 million in the quarter. AMC reduced debt by $1.7 billion since 2020 and ended the quarter with $778 million in cash, excluding restricted cash. That's a lot of financial breathing room for a company that once seemed on the brink.

Strong Attendance Across Regions

Global attendance reached 71 million guests, with market share gains in the U.S. and Europe. Sean Goodman, Chief Financial Officer, says AMC outpaced industry growth, with the domestic box office rising 10.7% year over year while AMC's domestic ticket revenue increased 11.4%, gaining approximately 70 basis points of market share.

European attendance grew 17.9%, outperforming regional industry growth by about 170 basis points, while European adjusted EBITDA increased more than fourfold year-over-year. That's a remarkable performance from a region that was hit hard by pandemic restrictions.

Strongest Q2 For Domestic Box Office

The domestic box office reached $2.99 billion, marking the strongest second quarter in seven years and the fifth-highest quarterly performance in 50 years. AMC benefited from strong film releases, with six titles from Universal, Lionsgate, A24, and Disney generating domestic opening weekends above $75 million.

The company also gained market share through improved operations, premium formats, and customer engagement initiatives. It's not just about showing movies anymore; it's about making the experience worth leaving the couch for.

Theater Business Optimization

AMC continued optimizing its theater footprint, closing 7 locations and adding 6 premium large format (PLF) and 25 XL auditoriums during the second quarter. Since 2020, AMC has reduced its global theater count by 159 locations (16%), closing 225 theaters while opening 66 new venues.

Although premium formats account for only about 8% of AMC's screens, the company expanded premium offerings with 77 additional PLF auditoriums and 193 more XL auditoriums, increasing premium seating options by over 50%. Premium formats contributed more than 50% of ticket revenue for "The Odyssey" during its opening weekend.

Notably, AMC and Odeon operate around 750 premium and enhanced auditoriums globally, including 226 IMAX, 182 Dolby Cinema, 83 iSense, 47 PRIME, 14 ScreenX/4DX, and 193 XL screens. That's a lot of ways to watch a movie, and apparently, people are willing to pay for them.

Outlook

AMC plans to expand its premium large format (PLF) and extra-large format (XLF) footprint by adding 100–250 auditoriums over the next 2–4 years, primarily funded through third-party capital.

AMC expects continued growth from a strong 2026 film lineup, including Universal and Christopher Nolan's "The Odyssey," which delivered approximately $124 million in domestic opening weekend revenue, along with Sony's "Spider-Man: Brand New Day," Warner Bros.' "Dune Part 3," and Disney's "Doomsday." Management expects 2026 to be the strongest post-pandemic year for both domestic and global box office performance.

AMC Price Action: AMC Entertainment Hldgs shares were up 12.42% at $2.18 at the time of publication on Monday.