The Marcus (MCS) investor relations material

Executive summary

• Achieved year-over-year revenue and adjusted EBITDA growth in both theater and hotel divisions, outperforming industry benchmarks despite five fewer operating days due to a fiscal year change.

• Theaters led growth with a strong film slate, improved attendance, and higher per capita sales; hotels benefited from renovated assets, new openings, and increased occupancy.

• Operating loss improved to $19.3 million from $20.4 million, with net loss narrowing to $15.4 million from $16.8 million.

• Adjusted EBITDA turned positive at $2.6 million, up from a loss of $0.3 million in the prior year quarter.

• Momentum is expected to continue into spring and summer with anticipated film releases and travel season.

Financial highlights

• Consolidated revenues reached $154.4 million, up 3.8% year-over-year; on a comparable calendar basis, revenues rose 15.6%.

• Operating loss improved by $1.2 million to $19.3 million; adjusted EBITDA increased by $2.9 million to $2.6 million.

• Free cash flow improved by $36.5 million year-over-year, aided by lower capital expenditures.

• Net cash used in operating activities improved to $15.2 million from $35.3 million, mainly due to favorable working capital changes.

• Capital expenditures decreased to $6.6 million from $23.0 million year-over-year.

Outlook and guidance

• Expect continued growth in both divisions, supported by a robust upcoming film slate and strong group bookings in hotels.

• Capital expenditures for 2026 projected at $50–$55 million, with anticipated significant free cash flow increase.

• Effective income tax rate for fiscal 2026 is expected to be in the 32%-34% range.

• Group room revenue bookings for hotels are running about 5% ahead of last year, with banquet and catering revenue pace stable or ahead for 2026 and 2027.

• Management remains optimistic about long-term industry prospects and is prepared to adjust to economic uncertainties.