Cineplex Inc.

Cineplex reported total revenue of $383.7 million in Q2 2026, up 9.8% year over year, and consolidated adjusted EBITDA of $40.8 million, up 20.4% from $33.9 million. Attendance increased 9.3% to 12.7 million guests. In film entertainment and content, box office revenue rose 11.2% to $176.2 million, box office revenue per patron reached an all-time quarterly record of $13.91, theater food service revenue increased 11.8% to a record $130 million, and concession revenue per patron hit a record $10.26. Media revenue rose 4.4% to $20.2 million, while location-based entertainment revenue declined 3.7% to $32 million. G&A was $24.2 million versus $21.9 million a year ago. Cash ended at $116.8 million with no drawings on the $100 million revolver, net capex was $7 million, and full-year capex guidance remains about $50 million; for 2027, management said capex guidance is roughly $60 million. Management reiterated that leverage has declined 1.5 turns over the past year and a half and said the 2.5x to 3x target leverage ratio looks achievable in the near term, with Q4 potential to land in that range if the industry delivers about $10 billion of domestic box office.

Ellis Jacob framed the quarter as a defining moment, emphasizing that Cineplex just came off the highest-grossing week in company history and that the current film slate is broad, durable, and not dependent on a single blockbuster. He highlighted strength across family, original, horror, and premium-format titles, plus record food, merchandise, and distribution results, and said the company is translating improving industry conditions into sustainable long-term growth. His tone was confident and upbeat, but grounded in the message that Cineplex’s value comes from multiple earnings streams and its market-leading position.

Gord Nelson focused on the operating leverage in the quarter: revenue up 9.8%, adjusted EBITDA up 20.4%, and attendance up 9.3%, with film entertainment segment adjusted EBITDA up 32.8% to $48.2 million. He pointed to record box office per patron of $13.91, record concession per patron of $10.26, and record theater food service revenue of $130 million, while also noting media revenue growth and softer LBE results due to macro pressure and mix shifts. On capital allocation, he highlighted $116.8 million of cash, no revolver borrowings, approximately $92.5 million available under the facility after letters of credit, net capex of $7 million, and unchanged priorities of asset maintenance, deleveraging, shareholder returns, and selective growth investments.

Analysts pressed management on why EBITDA looked lighter than expected despite strong top-line trends. Gord said the key drags were LBE mix pressure, one-time SCENE Shell launch costs, timing in G&A, and about a $6 million 2026 LTIP expense tied to retirement-eligible employees, with roughly half already seen in H1; he said the SCENE costs are not recurring and G&A timing should normalize. Questions also focused on film rent, where Ellis said there has been no structural change and that higher film rent mainly reflects better box office. On capital returns and leverage, Gord said both buybacks and dividends are on the table once leverage reaches the 2.5x to 3x range, which he thinks is achievable near term if the market reaches about $10 billion of domestic box office.