Summary of Reading International, Inc. Q2 2026 Earnings Call

1Key Financial Results and Metrics

Q2 2026 Revenue: $66.9 million, up $6.5 million (10.8%) year-over-year.

Net Income: $2.3 million, a significant turnaround from a net loss of $2.7 million in Q2 2025.

Adjusted EBITDA: $11.3 million, an increase of 79% compared to $6.3 million in Q2 2025.

Basic Earnings Per Share: $0.10, compared to a loss of $0.12 in Q2 2025.

Total Assets: $429.4 million, down from $434.9 million at year-end 2025.

Outstanding Borrowings: $183.1 million, slightly reduced from $185.1 million at year-end 2025.

2Strategic Updates and Business Highlights

Cinema Performance: The cinema segment had its best quarter since Q2 2019, driven by a strong film slate in Australia, which saw a 31% revenue increase.

Real Estate Revenue: Increased by 4%, primarily from improved U.S. live theater revenues.

F&B Initiatives: Continued expansion of food and beverage programs, achieving record spending per person in Australia and New Zealand.

Loyalty Programs: Memberships increased significantly, with over 625,000 members globally, enhancing customer engagement.

Debt Management: Ongoing efforts to reduce debt through asset sales, including the anticipated sale of Cinema 1, 2, and 3, which is expected to close in early Q4 2026.

3Forward Guidance and Outlook

Q3 and Q4 Expectations: Anticipation of continued strong box office performance with upcoming major releases, positioning 2026 as a potential record year post-pandemic.

Debt Reduction Strategy: Plans to prioritize debt repayment from proceeds of asset sales, with a focus on reducing overall interest expenses and funding cinema renovations.

4Bad News, Challenges, or Points of Concern

Asset Sales: The sale of the Napier property is on hold due to complications with the buyer and changes in ownership of the associated car park, which may delay liquidity improvements.

Operational Costs: Increased labor and operating expenses in certain markets, particularly Hawaii, pose challenges as attendance has not fully returned to pre-pandemic levels.

Cinema Closures: The closure of two San Diego cinemas impacted revenue, and the company has reduced its cinema count by nine theaters since the pandemic began.

5Notable Q&A Insights

Refinancing Challenges: The refinancing of certain loans has been delayed, with management working on securing a replacement lender.

Tax Implications: The company has a potential net operating loss (NOL) of approximately $40 million, which could mitigate capital gains taxes from asset sales.

Asset Sale Priorities: Proceeds from the Cinema 1, 2, and 3 sale will first address existing debt before considering renovations or other investments.

Philadelphia Viaduct Status: Ongoing litigation and potential monetization of adjoining parcels remain uncertain, with no current offers from the city or related parties. In summary, Reading International reported strong financial results for Q2 2026, driven by improved cinema performance and strategic initiatives. However, challenges remain in asset sales and operational costs, with management focused on debt reduction and enhancing customer engagement through loyalty programs. The outlook for the remainder of the year appears optimistic, contingent on continued box office success.