Reading International (RDI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 12% year-over-year to $45.1 million, driven by a strong film slate and improved cinema attendance, especially in the U.S. and Australia, marking the strongest Q1 since 2019.

• Cinema segment operating earnings before depreciation and amortization turned positive for the first time since 2019, with segment operating income improving from a $2.9 million loss to a $48,000 gain.

• Net loss attributable to shareholders increased 71% year-over-year to $8.1 million, mainly due to a $6.6 million prior-year gain on asset sales not repeated in 2026.

• Strategic asset sales, cost reductions, and real estate monetizations improved liquidity and operational efficiency.

• Operating loss improved 47% to $3.6 million, the best since Q1 2019.

Financial highlights

• Cinema revenue rose $5.1 million year-over-year to $41.5 million, offsetting a $0.2 million decline in real estate revenue.

• Adjusted EBITDA loss was $0.8 million, down from $2.9 million EBITDA income last year, which included a $6.6 million gain on asset sales.

• Basic loss per share rose to $0.36 from $0.21 year-over-year.

• Cash used in operating activities decreased by $5.2 million to $2.5 million.

• Unrestricted cash at quarter-end was $5.5 million; total debt stood at $184.6 million.

Outlook and guidance

• Management expects continued momentum in cinema operations through 2026, supported by a robust film slate and enhanced food & beverage offerings.

• Proceeds from asset sales (Cinemas 1,2,3 and Napier) are expected to provide liquidity for upcoming debt maturities and further reduce debt.

• Capital expenditures will remain focused on cinema upgrades; new real estate development is largely deferred.

• Industry analysts expect 2026 to be the strongest post-pandemic box office year.

• No assurances are given, but the company believes it is well-positioned for a strong year.