The Marcus (MCS) Q2 2026 earnings summary

Executive summary

• Achieved the best second quarter since 2019, with both divisions outperforming their industries and setting post-pandemic records for consolidated revenue and adjusted EBITDA.

• Revenues for Q2 2026 rose 12.5% year-over-year to $231.7 million; first half revenues up 8.8% to $386.1 million despite five fewer operating days.

• Operating income for Q2 2026 more than doubled to $27.1 million; net earnings for Q2 2026 were $15.8 million, up 116.4% year-over-year; diluted EPS was $0.51, up from $0.23 in Q2 2025.

• Theater division led industry admission revenue growth, driven by a strong film slate and increased attendance; hotel division set record revenue and adjusted EBITDA, fueled by robust leisure demand and group bookings.

Financial highlights

• Consolidated revenues reached $232 million, up 12.5% year-over-year.

• Adjusted EBITDA for Q2 2026 was $46.2 million, up 43% year-over-year.

• Operating income increased to $27.1 million; net earnings grew 116.4% to $15.8 million; diluted EPS up 121.7% to $0.51.

• First half 2026 revenue up 8.8% to $386.1 million; net earnings at $0.5 million versus a $9.5 million loss in 2025.

• Net cash provided by operating activities in the first half was $38.7 million, a $42.4 million improvement year-over-year.

Outlook and guidance

• Capital expenditures for 2026 expected to be $45–$50 million, with lower CapEx projected to drive significant free cash flow growth.

• No change in full-year RevPAR outlook; still expecting low single-digit industry growth with potential for outperformance due to asset quality.

• Group room revenue bookings for 2026 running 3% ahead of last year; 2027 group pace up 9%.

• Effective income tax rate for 2026 is expected to be in the 32%-34% range, excluding one-time items.

• Banquet and catering revenue pace for 2026 and 2027 is running 4% and 9% ahead, respectively.