Earnings call transcript: Cinemark Q1 2026 beats expectations, stock rises

Cinemark Holdings Inc. (CNK) reported its first-quarter 2026 earnings, showcasing a significant recovery with an EPS of -$0.06, beating the forecasted -$0.13. This resulted in a positive EPS surprise of 53.85%. Revenue also surpassed expectations, reaching $643.1 million against a forecast of $619.19 million. In response, Cinemark’s stock rose by 1.46% in pre-market trading.

Cinemark demonstrated a robust recovery in Q1 2026, achieving its strongest performance since the pandemic began. The company reported a 19% year-over-year increase in worldwide revenue and a substantial expansion in adjusted EBITDA margins. This performance aligns with a broader industry recovery trend and Cinemark’s strategic focus on premium formats and operational efficiency.

Cinemark’s actual EPS of -$0.06 exceeded the forecasted -$0.13, resulting in a 53.85% surprise. The company’s revenue also surpassed expectations, coming in at $643.1 million against a forecast of $619.19 million. This marks a significant improvement from previous quarters, highlighting Cinemark’s effective strategic initiatives and operational execution.

Following the earnings announcement, Cinemark’s stock price increased by 1.46% in pre-market trading, reaching $29.95. This positive reaction reflects investor confidence in the company’s strong performance and future prospects. The stock remains below its 52-week high of $34.01 but shows resilience in the current market environment.

Cinemark provided an optimistic outlook for the remainder of 2026, with continued investments in premium large-format screens and enhanced amenities. The company’s strategic initiatives are expected to drive incremental growth and improve the theatrical experience. Forward guidance includes EPS forecasts of $0.88 for Q2 2026 and $2.22 for the full year.

Cinemark’s CEO highlighted the company’s robust recovery and strategic focus on premium formats. "Our investments in premium large-format screens and enhanced amenities are paying off, driving significant growth and improving guest experiences," the CEO stated. The company remains committed to capitalizing on industry recovery trends and expanding its market share.

During the earnings call, analysts inquired about Cinemark’s strategies to manage wage inflation and utility costs. The company emphasized its focus on cost management initiatives and strategic sourcing to mitigate these pressures. Analysts also questioned the potential impact of streaming services on theatrical attendance, to which Cinemark responded with confidence in its premium offerings and market positioning.

Donna, Conference Call Operator: Greetings, and welcome to Cinemark Holdings first quarter two thousand twenty-six earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chanda Bashirs, Senior Vice President, Investor Relations. Thank you. You may begin.

Chanda Bashirs, Senior Vice President, Investor Relations, Cinemark Holdings: Good morning, everyone, and thank you for joining us today to discuss our first quarter 2026 results. Our earnings release, executive commentary, and 10-Q were issued earlier this morning and are available on our website at ir.cinemark.com. Today’s call is being webcast with a replay and transcript available on our website after the call. Before we begin, I’d like to remind everyone that during this conference call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company’s plans, objectives, expectations, or intentions. Forward-looking statements are subject to risks and uncertainties that could cause the company’s actual results to materially differ from those expressed or implied.

The factors that could cause results to differ materially are detailed in our most recent annual form report on 10-K, as well as with the SEC and available on our website. Today’s call will include non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the website’s most recently filed earnings release, 10-Q, and on the company’s website at ir.cinemark.com. Joining me this morning are Sean Gamble, President and CEO, and Melissa Thomas, CFO. Consistent with last quarter, Sean will provide some brief introductory remarks, and then we’ll turn it over to Q&A. Sean?

Chanda Bashirs, Senior Vice President, Investor Relations, Cinemark Holdings2: Thank you, Chanda, and good morning, everyone. The first quarter of 2026 marked our strongest first quarter since the onset of the pandemic across all revenue categories and adjusted EBITDA, with meaningful year-over-year top-line growth and margin expansion. Worldwide revenue increased 19% versus 2025 to $643 million. Adjusted EBITDA grew 143% to $88 million, and our adjusted EBITDA margin expanded 710 basis points. Our results are indicative of our team’s ability to effectively capitalize on a strengthening box office environment while continuing to derive benefits from our sustained efforts to deliver unmatched entertainment for our guests, build audiences, grow new sources of revenue, strengthen our operating capabilities, and optimize our circuit.

As described in greater detail in our executive commentary that we published this morning, we believe our standout first quarter performance is the byproduct of strong operational execution and our advantaged market position, which continues to be reinforced by our ongoing investments and strategic initiatives. From an execution standpoint, we achieved significant year-over-year box office growth and sustained the sizable market share gains we’ve achieved over the past several years through impactful programming actions and far-reaching marketing strategies that boosted attendance. As a more compelling slate of films was released into our theaters, we were able to leverage our extensive consumer marketing network and sophisticated scheduling tools to help amplify film awareness and optimize screen utilization to drive ticket sales.

Furthermore, actions we pursued to increase engagement and stimulate food and beverage consumption drove record-high concession sales, and diligent labor and overall cost management, combined with improved operating leverage, contributed to our significant margin expansion in the quarter. Complementing our execution, the initiatives we are pursuing to drive incremental growth and productivity continue to position Cinemark for long-term success. These initiatives include a wide range of actions focused on sustaining our high-quality theaters, expanding premium amenities, and leveraging new technologies to further advance our operating capabilities. Examples include sustained investments we’re making in enhanced screen formats, laser projectors, and motion seats, as well as the overall upkeep of our theaters to ensure our guests enjoy a premium experience at Cinemark regardless of which auditorium they choose.

Additionally, we continue to actively expand data-rich tools and automation throughout our operating practices to strengthen our decision-making, enhance our customer journey, and improve process efficiencies. As we look ahead, we maintain our confidence in Cinemark’s long-term growth prospects on account of our solid financial position, distinct competitive advantages, and the multitude of opportunities we have to drive incremental value. Furthermore, we are highly encouraged by continued positive momentum in our industry’s core fundamentals, namely sustained consumer enthusiasm for larger-than-life cinematic experiences, strength of upcoming film content, and robust studio support of theatrical exhibition. These fundamentals were recently reinforced by moviegoing results in the first quarter and at CinemaCon last month, as filmmakers and studio executives reaffirmed their steadfast commitment to theatrical experiences and showcased a diverse and plentiful volume of compelling films that will be released over the coming years.

Moreover, there’s been constructive progress over the past several weeks in expanding the theatrical window, which is an important factor in the long-term health of the film ecosystem. We remain bullish on our future, and we are thrilled with the strong kickoff to 2026 as well as the promising lineup of films on the horizon, particularly in light of last week’s successful opening of Michael and this weekend’s highly anticipated release of The Devil Wears Prada 2. Operator, we’d now like to open up the line for questions.

Donna, Conference Call Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that’s star one to register a question at this time. Our first question today is coming from Robert Fishman of MoffettNathanson. Please go ahead.

Chanda Bashirs, Senior Vice President, Investor Relations, Cinemark Holdings1: Good morning. A couple for you guys. Sean, we’ve been debating windows for many years now, so just would appreciate your updated thoughts after talking to all the studios at CinemaCon about the value that they see in 45-day windows. Do you expect a return of consistent minimum windows to help improve the overall moviegoing habits and