AMC beats estimates with debt deal, bullish 2026 outlook
Theater chain extends $2.45 billion in debt maturities as CEO Adam Aron anticipates industry recovery
AMC Entertainment delivered better-than-expected fourth-quarter results and announced a major debt restructuring agreement, positioning the theater chain for a potential recovery in 2026 after years of financial distress.
The company reached an agreement with holders of its 2029 Senior Secured Notes that will allow it to refinance existing term loans and 12.75% Odeon Senior Secured Notes due 2027. The transaction extends up to $2.45 billion of debt maturities from 2026 to 2029 and beyond while reducing interest expenses, addressing what had been a looming overhang for the largest cinema operator in North America.
"This agreement enhances AMC's flexibility to streamline and simplify our capital structure, reduce our cost of capital, improve liquidity, and efficiently address upcoming debt maturities," said Chief Executive Officer Adam Aron in the official announcement.
Fourth-quarter revenue of $1.288 billion exceeded analyst estimates of $1.231 billion, a 4.6% beat, according to the company's preliminary results. While revenue declined modestly from $1.306 billion in the year-ago quarter, the net loss narrowed to $127.4 million from $135.6 million. Adjusted EBITDA decreased 18.6% year-over-year to $134.1 million.
For the full year 2025, AMC reported revenue of $4.849 billion, up 4.6% from $4.637 billion in 2024. Adjusted EBITDA increased 12.7% to $387.5 million from $343.9 million in the prior year. The full-year net loss widened to $632.4 million from $352.6 million in 2024, reflecting the company's ongoing challenges in achieving sustained profitability.
The company ended 2025 with $428.5 million in cash and cash equivalents, plus an additional $48.8 million in restricted cash, providing a liquidity cushion as it executes the debt restructuring process.
Aron expressed growing confidence about 2026, noting that first-quarter box office results are already approximately 9% ahead of the same period last year. He pointed to a robust film slate including highly anticipated titles such as Spider-Man: Brand New Day, Avengers: Doomsday, Moana, Dune: Part Three, and The Odyssey as catalysts that should drive "very significant industry growth" in the coming months.
"We are increasingly optimistic about 2026," Aron stated, emphasizing AMC's theater footprint, premium formats, loyalty programs, and concessions and merchandise offerings as key competitive advantages to capture the expected rebound.
The debt refinancing comes as AMC continues to trade well below its 52-week high of $4.08, with shares hovering near the lower end of their annual range. Analysts maintain a cautious stance on the stock, with Citi carrying a "Sell" rating and Roth Capital at "Neutral" with a $3 price target. The consensus analyst target price stands at $2.31, according to market data.
Investor concerns remain focused on negative free cash flow and the potential for further equity issuances. The refinancing agreement includes provisions for note holders to receive up to 17.8 million AMC shares as a consent fee, representing potential dilution for existing shareholders, according to regulatory filings.
The theatrical exhibition industry has been gradually recovering from the pandemic-driven collapse in moviegoing attendance, but audience levels remain below pre-pandemic norms. A successful 2026 film slate could provide the momentum AMC needs to demonstrate sustainable profitability while managing its substantial debt load, which the new refinancing arrangement seeks to address through extended maturities and reduced interest costs.