National CineMedia, Inc. Reports Results for Fiscal Third Quarter 2026
National CineMedia, Inc. (NCMI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 National CineMedia, Inc. Reports Results for Fiscal Third Quarter 2026 Completed acquisition of Captivate, creating a combined network of approximately 48,000 digital screens across movie theaters, office buildings and residential properties Raised 2026 operational t
How this was made
The 30-second read
Why it matters
The earnings miss and modest guidance may trigger a sell‑off, but the expanded screen network could offer long‑term upside.
Market read
First‑report 8‑K filing with fresh earnings, guidance and leadership change; material for traders evaluating media‑sector exposure.
What to watch
Potential upside from new office and residential inventory and holiday theater demand.
NCM reports fiscal Q3 2026 revenue of $61.4 million, down 3.2%, with a GAAP operating loss of $21.6 million; Captivate acquisition closed September 18, 2026; Q4 revenue outlook $117.0 million to $124.0 million
Quarterly revenue declined 3.2% year over year to $61.4 million, GAAP operating loss widened to $21.6 million from $1.8 million, and Adjusted OIBDA fell to $3.3 million from $10.2 million. The positive adjusted EPS of $0.33 is a non-GAAP figure that excludes a $36.4 million loss on re-measurement of the tax receivable agreement payable. Cinema advertising revenue fell to $55.3 million from $59.5 million, and the nine-month GAAP loss widened.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenue, Q3 2026 (three months ended October 1, 2026)GAAP | $61.4M | – | decreased 3.2% |
| Total net revenue, nine months ended October 1, 2026GAAP | $153.8M | – | increased 2.5% |
| Operating loss, Q3 2026GAAP | −$21.6M | – | – |
| Operating loss, nine months ended October 1, 2026GAAP | −$61.3M | – | – |
| Operating margin, Q3 2026GAAP | (35.2)% | – | – |
| Operating margin, nine months ended October 1, 2026GAAP | (39.9)% | – | – |
| Consolidated net loss, Q3 2026 (net loss attributable to NCM, Inc.)GAAP | −$17.2M | – | – |
| Net loss attributable to NCM, Inc., nine months ended October 1, 2026GAAP | −$55.8M | – | – |
| Diluted net loss per share, Q3 2026GAAP | $(0.18) | – | – |
| Diluted net loss per share, nine months ended October 1, 2026GAAP | $(0.60) | – | – |
| Adjusted diluted income (loss) per share, Q3 2026 (excluding adjusting items)non-GAAP | $0.33 | – | – |
| Adjusted diluted income (loss) per share, nine months ended October 1, 2026 (excluding adjusting items)non-GAAP | $0.00 | – | – |
| Adjusted OIBDA, Q3 2026non-GAAP | $3.3M | – | – |
| Adjusted OIBDA, nine months ended October 1, 2026non-GAAP | negative $5.2 million | – | – |
| Adjusted OIBDA margin, Q3 2026non-GAAP | 5.4% | – | – |
| Adjusted OIBDA margin, nine months ended October 1, 2026non-GAAP | (3.4)% | – | – |
| Theater exhibition fees, Q3 2026GAAP | $40.2M | – | – |
| Theater exhibition fees, nine months ended October 1, 2026GAAP | $102.3M | – | – |
| Administrative and other costs, Q3 2026GAAP | $19.5M | – | – |
| Administrative and other costs, nine months ended October 1, 2026GAAP | $43.6M | – | – |
| Selling and marketing costs, Q3 2026GAAP | $9M | – | – |
| Selling and marketing costs, nine months ended October 1, 2026GAAP | $28.3M | – | – |
| Network operating costs, Q3 2026GAAP | $3.2M | – | – |
| Network operating costs, nine months ended October 1, 2026GAAP | $10.9M | – | – |
| Amortization expense, Q3 2026GAAP | $8.9M | – | – |
| Amortization expense, nine months ended October 1, 2026GAAP | $24.9M | – | – |
| Goodwill impairment, Q3 2026GAAP | $600K | – | – |
| Total operating expenses, Q3 2026GAAP | $83M | – | – |
| Total operating expenses, nine months ended October 1, 2026GAAP | $215.1M | – | – |
| Loss (gain) on re-measurement of the payable under the tax receivable agreement, Q3 2026GAAP | $36.4M | – | – |
| Loss (gain) on re-measurement of the payable under the tax receivable agreement, nine months ended October 1, 2026GAAP | $36.1M | – | – |
| Interest on borrowings, Q3 2026GAAP | $1.5M | – | – |
| Interest on borrowings, nine months ended October 1, 2026GAAP | $2M | – | – |
| Loss before income taxes, Q3 2026GAAP | −$59.5M | – | – |
| Loss before income taxes, nine months ended October 1, 2026GAAP | −$98.1M | – | – |
| Income tax benefit, Q3 2026GAAP | −$42.3M | – | – |
| Income tax benefit, nine months ended October 1, 2026GAAP | −$42.3M | – | – |
| Cinema advertising revenue, Q3 2026other | $55.3M | – | – |
| Cinema advertising revenue, nine months ended October 1, 2026other | $141.5M | – | – |
| Office/residential advertising revenue, net, Q3 2026other | $2.2M | – | – |
| Office/residential advertising revenue, net, nine months ended October 1, 2026other | $2.2M | – | – |
| Other revenue, Q3 2026other | $3.9M | – | – |
| Other revenue, nine months ended October 1, 2026other | $10.1M | – | – |
| Total cinema advertising revenue per attendee, Q3 2026other | $0.409 | – | – |
| Total cinema advertising revenue per attendee, nine months ended October 1, 2026other | $0.398 | – | – |
| Total theater attendance, Q3 2026 (millions, as printed)other | 135.2M | – | – |
| Total theater attendance, nine months ended October 1, 2026 (millions, as printed)other | 355.5M | – | – |
| Capital expenditures, Q3 2026other | $1M | – | – |
| Capital expenditures, nine months ended October 1, 2026other | $2.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cinema advertising (Q3 2026)Filing prints total cinema advertising revenue per attendee of $0.409 versus $0.547 in the prior-year quarter, while total theater attendance was 135.2 million versus 108.7 million. | $55.3M | – | – |
| Cinema advertising (nine months ended October 1, 2026)Filing prints total cinema advertising revenue per attendee of $0.398 versus $0.470 for the nine months ended September 25, 2025, while total theater attendance was 355.5 million versus 296.4 million. | $141.5M | – | – |
| Office/residential advertising, net (Q3 2026)Filing prints total office buildings in Captivate's network of 1,517 as of October 1, 2026, subsequent to the acquisition on September 18, 2026. No prior-year revenue is printed for this line. | $2.2M | – | – |
| Other revenue (Q3 2026)Filing prints $3.9 million in the prior-year quarter as well. No explanation given. | $3.9M | – | – |
| Other revenue (nine months ended October 1, 2026)Filing prints $10.7 million for the nine months ended September 25, 2025. No explanation given. | $10.1M | – | – |
Fourth quarter 2026 outlook
- Revenue$117.0 million to $124.0 million
- NoteAdjusted OIBDA in the range of $42.0 million to $48.0 million (non-GAAP)
Capital returns
- No share repurchases or dividends are reported in the filing.
What drove it
- Captivate results were consolidated into the Company's financial statements as of September 18, 2026, the date of the acquisition. Combined network of approximately 48,000 digital screens across theaters, office buildings and residential properties.
- Administrative and other costs rose to $19.5 million in Q3 2026 from $10.6 million. The reconciliation shows acquisition and integration costs of $10.3 million in Q3 2026, which the filing describes as advisor and legal fees for the Spotlight and Captivate acquisitions and temporary transition costs.
- Theater exhibition fees rose to $40.2 million from $32.3 million in Q3 2026, while cinema advertising revenue fell to $55.3 million from $59.5 million.
- Loss on re-measurement of the payable under the tax receivable agreement was $36.4 million in Q3 2026. The filing states this relates to a change in projected taxable income before TRA deductions.
- Income tax benefit of $(42.3) million in Q3 2026 with no explanation given in the filing.
- The 2026 Transformation Initiative produced workforce and system transformation costs of $0.8 million in Q3 2026 and $8.4 million for the nine months. The Company raised its 2026 operational transformation savings target to more than $7.5 million.
Concerns
- Total net revenue fell 3.2% year over year in Q3 2026 to $61.4 million, while total operating expenses rose to $83.0 million from $65.2 million.
- Adjusted OIBDA declined to $3.3 million from $10.2 million in Q3 2026 and was negative $5.2 million for the nine months ended October 1, 2026.
- GAAP net loss widened to $(17.2) million in Q3 2026 from net income of $1.6 million. Nine-month GAAP net loss was $(55.8) million versus $(39.9) million.
- Gross borrowings increased to $285.0 million from $12.0 million at January 1, 2026. Interest on borrowings rose to $1.5 million in Q3 2026 from $0.1 million.
- Cinema advertising revenue per attendee fell to $0.409 from $0.547 in Q3 2026, even though attendance rose to 135.2 million from 108.7 million.
- Total equity fell to $319.6 million from $375.4 million at January 1, 2026.
What to watch
- Fourth quarter 2026 total revenue of $117.0 million to $124.0 million and Adjusted OIBDA of $42.0 million to $48.0 million, compared with the Q3 2026 actuals of $61.4 million and $3.3 million.
- Integration of Captivate and realization of acquisition synergies, as referenced in the CEO quote and the forward-looking statements.
- Leverage reduction, as stated in the CEO quote, given gross borrowings of $285.0 million at October 1, 2026.
- CEO succession: Tom Lesinski's anticipated departure date is December 31, 2026, and the Board has retained Korn Ferry for the search.
- Growth in Captivate office and residential inventory, which the CEO describes as having growing demand.
- Delivery of the 2026 operational transformation savings target of more than $7.5 million.
Balance sheet and cash flow
- Cash, cash equivalents, marketable securities and restricted cash: $35.8 million as of October 1, 2026 versus $37.6 million as of January 1, 2026.
- Borrowings, gross: $285.0 million as of October 1, 2026 versus $12.0 million as of January 1, 2026.
- Total assets: $758.8 million as of October 1, 2026 versus $490.6 million as of January 1, 2026.
- Total equity: $319.6 million as of October 1, 2026 versus $375.4 million as of January 1, 2026.
- Receivables, net: $80.4 million as of October 1, 2026 versus $96.5 million as of January 1, 2026.
- Property and equipment, net: $30.4 million as of October 1, 2026 versus $19.4 million as of January 1, 2026.
- The filing does not report operating cash flow or free cash flow.
Analysis
National CineMedia reported fiscal third quarter 2026 total net revenue of $61.4 million, a 3.2% decline from $63.4 million in the prior-year quarter. Cinema advertising revenue was $55.3 million versus $59.5 million, while the new office and residential line contributed $2.2 million and other revenue was $3.9 million, flat year over year. The filing prints total cinema advertising revenue per attendee of $0.409 versus $0.547 alongside theater attendance of 135.2 million versus 108.7 million, so attendance rose while revenue per attendee fell. For the nine months, revenue was $153.8 million, up 2.5%, and cinema advertising revenue was $141.5 million versus $139.3 million.
Profitability weakened. GAAP operating loss was $(21.6) million in Q3 2026 against $(1.8) million a year earlier, and the GAAP operating margin was (35.2)%. Theater exhibition fees rose to $40.2 million from $32.3 million, and administrative and other costs rose to $19.5 million from $10.6 million. Adjusted OIBDA was $3.3 million versus $10.2 million, with the adjusted OIBDA margin at 5.4% versus 16.1%. The reconciliation adds back $10.3 million of acquisition and integration costs in the quarter, which the filing attributes to advisor and legal fees for the Spotlight and Captivate acquisitions and transition costs. GAAP net loss attributable to NCM, Inc. was $(17.2) million, or $(0.18) per diluted share, compared with net income of $1.6 million, or $0.02, a year earlier.
The $0.33 adjusted diluted EPS is a non-GAAP figure that excludes the $36.4 million loss on re-measurement of the tax receivable agreement payable, the $10.3 million acquisition and integration costs, and other adjusting items. The filing also reports a $(42.3) million income tax benefit in the quarter, which it does not explain. The reader should weigh the GAAP loss before income taxes of $(59.5) million alongside the adjusted figure.
The balance sheet changed materially with the Captivate acquisition, which the filing says was consolidated as of September 18, 2026. Gross borrowings rose to $285.0 million from $12.0 million at January 1, 2026, total assets rose to $758.8 million from $490.6 million, and total equity fell to $319.6 million from $375.4 million. Cash, cash equivalents, marketable securities and restricted cash were $35.8 million, down from $37.6 million. Capital expenditures were $1.0 million in Q3 2026 against $1.6 million. The filing does not report operating or free cash flow, and it reports no share repurchases or dividends.
For the fourth quarter, management guides total revenue of $117.0 million to $124.0 million and Adjusted OIBDA of $42.0 million to $48.0 million. Because the guidance covers a full quarter that includes Captivate, the figures are not directly comparable with the Q3 2026 results, which include Captivate only from September 18. The CEO also announced his planned retirement with a departure date of December 31, 2026, and the Board has retained Korn Ferry to search for a successor. The priorities named by the CEO are integration of Captivate, realization of acquisition synergies and reduction of leverage.
Management, verbatim
We are encouraged by early fourth-quarter trends across both networks, supported by a strong holiday theatrical slate and growing demand for Captivate's office and residential inventory.
Tom Lesinski, Chief Executive Officer, National CineMedia, Inc.
Looking ahead, we remain focused on successfully integrating Captivate, realizing acquisition synergies and reducing leverage to drive sustainable growth and long-term value for our shareholders.
Tom Lesinski, Chief Executive Officer, National CineMedia, Inc.
Not in the filing
stated, not guessed- Prior-year and prior-quarter percentage changes for operating loss, net loss, GAAP EPS and most expense lines (not printed as percentages).
- Prior-quarter (second quarter 2026) comparisons for every metric; the filing does not print second-quarter 2026 figures.
- Year-over-year percentage change for Q3 2026 cinema advertising revenue, office/residential revenue, and other revenue.
- Operating cash flow and free cash flow for Q3 2026 and the nine months.
- Share repurchase or dividend activity.
- Gross margin or cost of sales line, which the filing does not present.
- Prior-year Adjusted OIBDA margin changes and GAAP tax rate.
- Consensus or analyst expectations for revenue and EPS, and any share price reaction (not in the filing).
- Prior-year comparison for income tax benefit (printed as a dash for the prior-year periods).
- Explanation for the $(42.3) million income tax benefit.
- Prior-period outlook for comparison with actual results (no previous release provided).
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
National CineMedia reported its Q3 2026 financials after completing the Captivate acquisition and announced CEO retirement.
Ticker impact
NCMI disclosed Q3 2026 results with a revenue decline, widened operating loss and provided Q4 guidance of $117‑$124 million.
likely pressure as the market prices in weaker earnings and issued outlook
Revenue fell 3.2% YoY, operating loss expanded sharply, and guidance signals limited near‑term growth, prompting investors to reassess valuation.
Market effects
Highlights challenges in the digital out‑of‑home advertising sector, potentially pressuring peers.
U.S. advertising‑media stocks may see modest weakness.
Limited to U.S. media and advertising markets.
Counterpoint
If the acquisition of Captivate drives synergies faster than expected, the stock could rebound.
Key entities
- companyNational CineMedia, Inc.
Operator of a digital out‑of‑home advertising platform.
- executiveTom Lesinski
CEO retiring at year‑end.
