RDI — Reading International, Inc.

Summary of Reading International, Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: Increased by $5 million to $45.1 million compared to Q1 2025.
• Net Loss: Increased by 71% to $8.1 million, largely due to a $6.6 million gain from property sales in Q1 2025.
• Basic Loss per Share: Increased to $0.36 from $0.21 in Q1 2025.
• Adjusted EBITDA: Loss of $0.8 million compared to an EBITDA income of $2.9 million in the prior year.
• Operating Loss: Improved to $3.6 million, a 47% reduction from Q1 2025.
• Cash Flow: Net cash used in operating activities decreased to $2.5 million from $7.7 million in Q1 2025.
• Debt Position: Total outstanding borrowings were $184.6 million, relatively stable compared to $185.1 million at the end of 2025.

2. Strategic Updates and Business Highlights

• Cinema Segment: Positive operating earnings for the first time since 2019, driven by a stronger film slate and increased attendance.
• Real Estate Segment: U.S. real estate revenues reached record highs due to strong performances at the Minetta Lane Theater, despite a 5% decline in global real estate revenues.
• Loyalty Programs: Significant growth in membership for new and revamped loyalty programs, contributing to increased attendance.
• Cost Management: Continued efforts to negotiate lower occupancy costs and reduce operating expenses.
• Asset Monetization: Properties such as Cinema 1, 2, 3 and the Napier property are being sold to improve liquidity and reduce debt.

3. Forward Guidance and Outlook

• Positive Box Office Expectations: Anticipation of a strong film slate for the remainder of 2026, with several major releases expected to drive attendance.
• Debt Reduction Strategy: Management is focused on reducing overall debt and improving liquidity through asset sales and refinancing efforts.
• Continued Improvement: Management expects ongoing improvements in cinema operations and financial performance throughout 2026.

4. Bad News, Challenges, or Points of Concern

• Increased Net Loss: The significant increase in net loss raises concerns about profitability despite operational improvements.
• Cash and Liquidity Pressure: Cash and cash equivalents decreased to $0.5 million, indicating potential liquidity challenges.
• International Performance: New Zealand operations continue to struggle with profitability, impacted by competition and economic conditions.
• Competitive Pressures: The cinema segment faces ongoing competition and the challenge of returning to pre-pandemic attendance levels.

5. Notable Q&A Insights

• Refinancing Status: Management is actively working on refinancing options for the Santander loan, with expectations to close before maturity in June 2026.
• Differences in Market Performance: Australia showed a significant recovery in cinema operations compared to New Zealand, which is facing economic challenges and competition.
• U.S. Cinema Losses: Despite improvements, U.S. cinemas still report operating losses, with management attributing this to the need for further operational changes and improved film quality.
• Strategic Focus: Management emphasized the importance of enhancing food and beverage offerings and loyalty programs to drive profitability.

Overall, Reading International, Inc. demonstrated operational improvements in Q1 2026, particularly in its cinema segment, but continued to face challenges with net losses and liquidity pressures. The outlook remains cautiously optimistic with a strong film slate and strategic initiatives aimed at enhancing profitability.