Fiscal Second Quarter 2026
Filed Aug 11, 2026Second quarter revenue increased 12.7% year-over-year to $58.4 million driven by strong execution and continued box office momentum
Revenue and Adjusted OIBDA increased year-over-year, but the Company remained loss-making, operating loss increased, NCM paused its quarterly dividend program, and it is not providing a forward outlook while pursuing the Captivate acquisition financed with new term debt.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $58.4 million | – | 12.7% |
| Operating lossGAAP | $12.8 million | – | – |
| Net lossGAAP | $9.9 million | – | – |
| Net loss per diluted shareGAAP | $0.11 net loss per diluted share | – | – |
| Adjusted OIBDAnon-GAAP | $2.1 million | – | – |
| Adjusted net loss per diluted sharenon-GAAP | $0.10 | – | – |
| Total revenue for the six months ended July 2, 2026GAAP | $92.4 million | – | 6.7% |
| Operating loss for the six months ended July 2, 2026GAAP | $39.7 million | – | – |
| Net loss for the six months ended July 2, 2026GAAP | $38.6 million | – | – |
| Net loss per diluted share for the six months ended July 2, 2026GAAP | $0.41 net loss per diluted share | – | – |
| Adjusted OIBDA for the six months ended July 2, 2026non-GAAP | negative $8.5 million | – | – |
| Adjusted net loss per diluted share for the six months ended July 2, 2026non-GAAP | $0.33 | – | – |
Capital returns
- NCM has paused its quarterly dividend program.
What drove it
- Second quarter revenue was driven by strong execution and continued box office momentum.
- The Company cited strong domestic box office.
- Operational transformation delivered $2.7 million in cost savings year-to-date and remains on track for approximately $11.0 million in annualized cost savings.
- NCM is continuing to strengthen its local business and drive efficiencies through its operational transformation initiative.
Concerns
- Operating loss increased to $12.8 million from $12.0 million.
- NCM said it navigated a competitive advertising environment.
- NCM has paused its quarterly dividend program in connection with the proposed acquisition of Captivate and expected leverage at closing.
- The proposed acquisition is subject to customary closing conditions and regulatory approvals.
- The Company identified risks relating to realization and timing of cost savings and other acquisition benefits, financing, integration costs, increased debt load, theater attendance, film availability and competition for advertising expenditures.
What to watch
- Closing of the Captivate acquisition, which NCM expects during the second half of 2026.
- Funding of the acquisition with $275.0 million of new committed term debt and the use of available cash to refinance the existing revolving credit facility and fund transaction expenses.
- More than $3.5 million of annual run-rate cost synergies expected within the first year following close of the acquisition.
- Progress toward approximately $11.0 million in annualized cost savings from the operational transformation initiative.
- Whether and when NCM resumes providing a forward outlook and its quarterly dividend program.
Balance sheet and cash flow
- The transaction will be funded with $275.0 million of new committed term debt.
- Available cash used to refinance the Company’s existing revolving credit facility and fund transaction expenses.
Analysis
NCM reported second-quarter revenue of $58.4 million, up 12.7% from $51.8 million in the second quarter of 2025. Management attributed the growth to strong execution, continued box office momentum and the strong domestic box office. Adjusted OIBDA increased to $2.1 million from $0.7 million, while adjusted net loss per diluted share improved to $0.10 from $0.11.
GAAP profitability remained negative. Operating loss increased to $12.8 million from $12.0 million, although net loss declined to $9.9 million from $10.7 million. GAAP net loss per diluted share was unchanged at $0.11. For the six-month period, revenue increased 6.7% to $92.4 million, but operating loss increased to $39.7 million from $35.9 million and Adjusted OIBDA was negative $8.5 million.
Cost actions are a central component of the operating narrative. The operational transformation initiative delivered $2.7 million in cost savings year-to-date and remains on track for approximately $11.0 million in annualized cost savings. The filing does not provide prior-quarter operating metrics, segment revenue, gross margin, operating-expense detail, or cash-flow figures, so sequential performance and revenue mix cannot be assessed from this release.
The principal strategic development is the agreement to acquire Captivate at an enterprise value of $275.0 million. NCM plans to fund the transaction with $275.0 million of new committed term debt, use available cash to refinance its existing revolving credit facility and fund transaction expenses, and expects more than $3.5 million of annual run-rate cost synergies within the first year following close. The transaction is expected to close during the second half of 2026, subject to customary closing conditions and regulatory approvals.
Capital allocation and visibility changed alongside the proposed transaction. NCM paused its quarterly dividend program because of the expected leverage at closing, and it is not providing a forward outlook at this time due to the expected timing of the pending transaction. Management stated that the absence of outlook does not reflect a change in its view of the underlying business, but investors lack updated financial guidance while acquisition financing, integration and leverage become key variables.
Management, verbatim
NCM delivered another quarter of meaningful growth alongside the strong domestic box office.
Tom Lesinski, Chief Executive Officer of National CineMedia, Inc.
We navigated a competitive advertising environment while executing against our strategic priorities, including continuing to strengthen our local business and driving efficiencies across the business through our operational transformation initiative.
Tom Lesinski, Chief Executive Officer of National CineMedia, Inc.
Not in the filing
stated, not guessed- Segment revenue, segment year-over-year comparisons, segment quarter-over-quarter comparisons and segment drivers by reported operating segment.
- Gross profit and gross margin.
- Operating expenses.
- Cash balance.
- Debt balance.
- Operating cash flow.
- Free cash flow.
- Share repurchases.
- Dividend amount and dividend payment date.
- Prior-quarter revenue, operating loss, net loss, earnings per share and Adjusted OIBDA comparisons.
- Forward revenue, gross-margin, operating-expense and tax-rate guidance.
- Prior-quarter outlook for comparison with actual results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.