National CineMedia (NCMI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $34.9 million, down 6.7%–7% year-over-year, driven by lower attendance and box office underperformance, but within guidance.

• Adjusted OIBDA was negative $9.0 million, with margin declining to -25.8% from -15.2% year-over-year.

• Net loss improved to $30.7 million from $34.7 million year-over-year.

• Entered a new long-term AMC agreement extending partnership through 2042, modernizing advertising inventory, and eliminating prior litigation.

• Continued share repurchases, with 2.3 million shares bought YTD and 4.8 million total since inception; $0.03/share quarterly dividend declared.

Financial highlights

• Q1 2025 revenue: $34.9 million (Q1 2024: $37.4 million); national ad revenue: $27.4 million; local/regional ad revenue: $4.9 million.

• Adjusted OIBDA: negative $9.0 million (Q1 2024: negative $5.7 million); operating loss: $23.9 million (Q1 2024: $22.7 million).

• Operating expenses: $58.8 million, down 2% year-over-year; adjusted operating expenses: $43.9 million, up 2%.

• Unlevered free cash flow: $5.5 million; cash and equivalents at quarter end: $63.1 million.

• No borrowings under the new $45 million credit facility as of quarter-end.

Outlook and guidance

• Q2 2025 revenue expected between $56–$61 million; adjusted OIBDA guidance: $2.5–$7.5 million.

• Anticipates year-over-year growth in Q2, supported by a strong film slate and improving attendance.

• Expects meaningful revenue from programmatic and self-serve offerings starting in 2026.

• Revised AMC agreement expected to generate incremental revenue and align show structure and payment terms with the broader network.

• Management expects the new credit facility to reduce interest expense and provide greater financial flexibility.