National CineMedia (NCMI) investor relations material

Executive summary

• Q1 2026 revenue was $34.0 million, down 2.6% year-over-year, with profitability within expectations and results in line with guidance, reflecting seasonality, Winter Olympics competition, and a fiscal calendar shift.

• Attendance reached 83.2 million, up 15% year-over-year, driven by the Spotlight acquisition and increased box office hits.

• Operational transformation and AI adoption are underway, targeting $11 million in annualized cost savings, with $3 million realized to date.

• Net loss for Q1 2026 was $28.6 million ($0.31 per diluted share), an improvement from $30.7 million in Q1 2025.

• Unlevered free cash flow increased to $18.1 million from $5.5 million, driven by working capital normalization.

Financial highlights

• Q1 total revenue: $34.0 million; adjusted OIBDA: -$10.5 million, both within guidance.

• Operating loss: $26.9 million, up from $23.9 million year-over-year.

• National advertising revenue: $27.5 million; local/regional: $4.4 million; ESA Party revenue: $2.1 million.

• Operating expenses: $60.9 million (up from $58.8 million), including $3.6 million in one-time transformation costs.

• Cash and equivalents at quarter-end were $51.6 million; total debt: $12.0 million.

Outlook and guidance

• Q2 2026 revenue guidance: $57–$63 million; adjusted OIBDA: $1–$5 million.

• Guidance reflects strong film slate, expected year-over-year attendance growth, and higher exhibitor fees.

• World Cup, macro factors, and geopolitical risks are not expected to materially impact results; any effects are included in guidance.

• Local and national advertising pacing ahead of last year for Q2.

• Transformation initiative expected to complete in Q3 2026, with further severance and transition costs anticipated.