NCMI Filings — National Cinemedia, Inc. - FilingSpy
NCMI
National Cinemedia, Inc.
The company behind the movie-theater preshow, National CineMedia runs on-screen ads and lobby displays across major US chains like AMC, Cinemark, and Regal, plus a lineup for art-house theaters. It was formed in 2005 when Regal's and AMC's ad businesses merged into one national network. Its preshow brand "Noovie" is a made-up mashup of "new" and "movie," invented because the old name couldn't be trademarked.
National CineMedia returned to revenue growth in Q2 2026, but a revolver draw and transformation costs widened the operating loss.
National CineMedia's returned to growth after a year of decline. Revenue rose 12.7% to $58.4 million as network attendance climbed 19.3% and national advertising CPMs increased 11.2%, though an operating loss of $12.8 million widened from $12.0 million a year ago as theater exhibition fees and transformation costs rose. The company drew $12.0 million on its for the first time, leaving $32.4 million available against a cash balance of $43.1 million.
Key takeaways
rose 12.7% to $58.4 million, driven by a 19.3% increase in network attendance and an 11.2% rise in national advertising CPMs, which together more than offset a 7.2% decline in national advertising .
Local and regional advertising grew 48.4% to $9.5 million, reversing a multi-quarter decline, on higher premium sales at higher CPMs and stronger activity in retail, apparel, gaming, and entertainment categories.
Operating loss widened to $12.8 million from $12.0 million a year ago, as a 21.7% increase in theater exhibition fees to $37.6 million and $2.7 million in workforce and system transformation costs outweighed the gain.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 12.7% to $58.4M on higher attendance and CPMs, but operating loss widened to $12.8M.
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Total increased 12.7% to $58.4M in Q2 2026, driven by a 19.3% rise in network attendance and an 11.2% increase in national advertising CPMs, partially offset by a 7.2% decline in national advertising utilization.
Local and regional advertising grew 48.4% to $9.5M on higher premium sales at higher CPMs and stronger retail, apparel, gaming, and entertainment activity.
improved to $2.1 million from $0.7 million, with margin rising to 3.6% from 1.4%, as the increase flowed through the fixed-cost network model.
The company drew $12.0 million on its $45.0 million , the first draw since the facility was put in place, while cash and equivalents fell 11.3% sequentially to $43.1 million.
The 2026 Transformation Initiative incurred $2.7 million in costs during the quarter, including severance, vendor termination fees, and consultant charges, with additional costs expected in Q3 2026.
What changed
The 28.1% cut in Q2 2025 was flagged as a potential start of a sustained pricing war; one year later, national advertising CPMs rose 11.2%, marking the first CPM increase after at least four consecutive quarters of double-digit declines and suggesting the pricing reset has stabilized.
Local and regional advertising , which fell 34.7% in Q2 2025 and was flagged for persistent weakness in technology, retail/apparel, and automotive categories, grew 48.4% in Q2 2026, with management now citing strength in retail, apparel, gaming, and entertainment.
The $12.0 million draw first taken in Q1 2026 was not repaid in Q2; the outstanding balance remained at $12.0 million, and cash and equivalents declined to $43.1 million from $48.6 million, indicating the draw was not a one-quarter bridge.
The AMC Exhibitor Services Agreement extension, effective July 2025, was expected to improve and pricing once AMC's pre-show format aligned with the network; in Q2 2026, utilization fell 7.2% but CPMs rose 11.2%, suggesting the format alignment may be shifting the trade-off from volume toward pricing.
What to watch
Whether the 11.2% increase in Q2 2026 is sustained or built upon in Q3, now that the AMC pre-show format is aligned and has declined, to gauge whether pricing power is returning after the multi-quarter reset.
Whether the $12.0 million balance is reduced or increased in Q3, as a signal of whether , which was negative $1.5 million in Q2, can fund and the remaining transformation costs without further borrowing.
The trajectory of local and regional advertising in Q3, to see whether the 48.4% growth in Q2 represents a sustainable recovery or a one-quarter rebound from the prior year's 34.7% decline.
The magnitude of additional transformation costs in Q3 2026, which management has said are expected, and whether they continue to widen the operating loss or begin to taper as the initiative progresses.
Theater exhibition fees rose 21.7% to $37.6M, reflecting higher attendance partly from the Spotlight acquisition, contractual rate increases, and higher platinum .
The 2026 Transformation Initiative drove $2.7M in Q2 workforce and system transformation costs, including severance, vendor termination fees, and consultant charges, with additional costs expected in Q3 2026.
improved to $2.1M from $0.7M, with rising to 3.6% from 1.4%, while operating loss widened to $12.8M from $12.0M.
Total liquidity was $75.5M as of July 2, 2026, including $43.1M in cash and marketable securities and $32.4M of availability under the 2025 , with a $12.0M outstanding balance.
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk The primary market risk to which we are exposed is interest rate risk. On January 24, 2025, NCM LLC entered into the 2025 Credit Facility. The maximum capacity that NCM LLC has access to under the 2025 Credit Facility is $45.0 million. The interest rate under…
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Interest Rate Risk
The primary market risk to which we are exposed is interest rate risk. On January 24, 2025, NCM LLC entered into the 2025 Credit Facility. The maximum capacity that NCM LLC has access to under the 2025 Credit Facility is $45.0 million. The interest rate under the 2025 Credit Facility is a floating rate equal to term SOFR (subject to a floor of zero) plus an applicable margin of 2.00%, which is subject to increase by an additional 2.00% upon the occurrence of an event of default. As of July 2, 2026, the Company has an outstanding balance of $12.0 million under the 2025 Credit Facility. If the Company had drawn down on the maximum capacity of the 2025 Credit Facility of $45.0 million, a 100-basis point fluctuation in market interest rates would have the effect of increasing or decreasing our cash interest expense by approximately $0.5 million for an annual period.
We are sometimes involved in legal proceedings arising in the ordinary course of business. We are not aware of any litigation currently pending that would have a material adverse effect on our operating results or financial condition.
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We are sometimes involved in legal proceedings arising in the ordinary course of business. We are not aware of any litigation currently pending that would have a material adverse effect on our operating results or financial condition.
There have been no material changes from risk factors as previously disclosed in our Quarterly Report on Form 10-Q filed with the SEC on May 12, 2026 for the fiscal quarter ended April 2, 2026 and in our Annual Report on Form 10-K filed with the SEC on February 26, 2026 for the…
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There have been no material changes from risk factors as previously disclosed in our Quarterly Report on Form 10-Q filed with the SEC on May 12, 2026 for the fiscal quarter ended April 2, 2026 and in our Annual Report on Form 10-K filed with the SEC on February 26, 2026 for the fiscal year ended January 1, 2026.