NCMI

Image source: The Motley Fool. Tuesday, Aug. 11, 2026, at 5 p.m. ET Senior Vice President of Finance-Chan Park Chief Executive Officer-Tom Lesinski Chief Financial Officer-Ronnie Ng Operator: Good day, and welcome to the National CineMedia, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chan Park, Senior Vice President of Finance. Please go ahead. Park Chan: Thank you, operator, and good afternoon. I'm joined today by our Chief Executive Officer, Tom Lesinski; and our Chief Financial Officer, Ronnie Ng. I would like to remind our listeners that this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts communicated during this conference call may constitute forward-looking statements. These forward-looking statements involve risks and uncertainties. Important factors that can cause actual results to differ materially from the company's expectations are disclosed in the risk factors contained in the company's filings with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors. Further, our discussion today includes some non-GAAP measures. In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP basis measurement. These reconciliations can be found at the end of today's earnings release or on the Investor Relations page of our website at ncm.com. Now I'll turn the call over to Tom. Thomas Lesinski: Thank you, Chan, and good afternoon, everyone. We appreciate you joining us for today's call. Alongside our second quarter results, which we will get to shortly, I'm excited to discuss NCM's announcement that the company has entered into a definitive agreement to acquire Captivate, the leading operator of digital video elevator and lobby advertising in North America. Captivate operates over 26,000 digital video screens in more than 11,000 buildings across more than 170 designated market areas in the United States and Canada. Its core business is concentrated in over 1,600 Class A and B office buildings, where more than 12,000 screens reach a sought-after affluent professional audience. In 2023, Captivate expanded to residential, and today operates a residential network across more than 9,700 locations. Together, NCM and Captivate will create the leading premium video and digital out-of-home advertising platform with more than 48,000 digital screens across theaters, office buildings, and residential properties in 185 designated market areas, including all of the top 100 markets. The combination brings together 3 complementary premium audiences that are highly sought after by advertisers: NCM's young diverse moviegoing audience and Captivate's affluent professional audience in both office buildings and residential properties. The combined platform will provide a powerful force-multiplying solution for high-attention advertising delivery, allowing marketers to reach consumers and business decision-makers where they work, live, and play throughout the entire week, all through a single premium media partner. Captivate's workplace network also brings incremental access to business-to-business marketing budgets, enhancing our appeal to enterprise technology and financial and professional services advertisers. At the same time, NCM's network gives Captivate's advertisers greater access to consumer reach on a national scale. This acquisition marks an important milestone in NCM's evolution and represents the next step in our strategy to build a market-defining specialty advertising platform. Captivate complements and expands NCM's core expertise in providing hard-to-reach video-enabled audiences, and this acquisition builds on the capabilities, customer relationships, and expertise we've developed over more than 2 decades. Captivate also accelerates NCM's existing lobby advertising business, operating a substantially larger in-lobby network on a purpose-built digital out-of-home technology platform. We will bring those capabilities in-house, allowing us to scale NCM's lobby network more efficiently. Like NCM, Captivate connects advertisers with highly sought-after premium audiences in high-attention environments, making it an exceptionally strong strategic fit. This transaction builds directly on the strategy we've been executing over the past several years. Once closed, it will expand our national, local, and programmatic inventory and audience reach, deepen advertiser relationships, strengthen our technology platform, and create new avenues for long-term growth in complementary premium video and digital out-of-home advertising environments. The ability to reach target audiences from buildings to theaters and key DMAs will create a dynamic advertising solution that does not exist today. Captivate is also a very strong financial asset. Over the past 2 years, it has grown revenue 40% and adjusted EBITDA more than 50%, reflecting low capital intensity, high incremental margins, and strong cash generation. Captivate also brings a recurring subscription revenue component through its multiyear building agreements and 96% building retention. The business requires minimal ongoing capital investment, enabling profitable network growth. The addition of Captivate is expected to strengthen NCM's financial profile, accelerating revenue growth and margin expansion, and support deleveraging following close, which Ronnie will walk through in a moment. Now turning to NCM's second quarter results and the progress we're making across our business. The industry delivered its strongest second quarter box office performance since the pandemic, and attendance across our network increased approximately 19% year-over-year, reflecting sustained consumer demand across a broad and diverse slate of films. That strength, combined with our continued focus on execution, drove another quarter of strong financial performance. NCM delivered total revenue of $58.4 million, up 12.7% year-over-year, and adjusted OIBDA of $2.1 million, up 3x year-over-year, with results coming in within our guidance range. Those results reflect healthy advertising demand, which continued to improve year-over-year as we lapped last year's performance and successfully navigated a competitive advertising environment as domestic advertising budgets shifted toward the FIFA World Cup. This demand was driven by key advertising categories, including insurance, retail, automotive, and pharmaceutical, and underlying advertising demand reflecting a return toward more normalized spending patterns. The mix of films released during the quarter was also an important driver of advertising performance. April and May performed largely in line with expectations, supported by a strong lineup of franchise and family releases, including the Super Mario Galaxy movie, Michael, The Devil Wears Prada 2, and Toy Story 5. Later in the quarter, breakout successes, including Horror Hits, Obsession and Backrooms, generated exceptional moviegoer demand. While those 2 films generated strong attendance and secured the #2 and #3 spots in the June box office, respectively, R-rated and horror films are typically more challenging to monetize than broad 4-quadrant franchise releases. At the same time, several mainstream studio releases, including Supergirl and Star Wars: The Mandalorian and Grogu, underperformed compared to expectations, shifting the overall composition of the quarter's box office. As a result, the strength in moviegoing did not translate into the advertising yield typically associated with this level of audience. Even against that backdrop, our strategic investments continued to deliver meaningful results. Local revenue increased 48% versus the prior period, reflecting the continued investment we've made in rebuilding our local sales organization, expanding premium inventory, and improving pricing. In addition to continuing to drive revenue for NCM, the investment in our local sales organization will drive meaningful opportunity for Captivate, which does not currently have a dedicated local sales team. NCM's local organization sells in each of Captivate's largest markets, and following close, we will leverage our local playbook to expand the combined local business and create new cross-selling and bundling offers across both platforms. Beyond local, we continue to invest in strengthening our programmatic offering and making it easier for advertisers to buy cinema alongside other premium digital media. During the past quarter, we added Magnite to our supply side platform relationships, which now cover 90% of the programmatic digital out-of-home market. Programmatic revenue grew 45% year-over-year in the second quarter, driven by new buyers and a more diversified advertiser base, though it remains a modest share of NCM's total advertising revenue. Captivate is expected to create an opportunity to accelerate NCM's programmatic initiatives by bringing Captivate's technology platform and established supply side partner relationships in-house. Together, we will have a larger pool of premium digital out-of-home inventory and enable buyers to transact across cinema, office and residential environments through a single platform. Alongside these growth initiatives, we completed the execution of the operational transformation plan announced earlier this year, which Ronnie will cover in additional detail. Those efforts have strengthened our operating foundation and created additional flexibility to invest in our highest return growth initiatives. Looking ahead, we remain encouraged by the broader theatrical environment and the strength of the release schedule throughout the balance of the year. July has already delivered an encouraging start to the quarter, highlighted by the strong performance of Christopher Nolan's The Odyssey, which debuted to nearly $125 million domestically, the biggest live-action opening weekend of 2026. The Odyssey also demonstrates growing consumer demand for premium moviegoing experiences. With nearly 1,000 premium large-format screens in the NCM network, representing approximately 70% of the industry's premium large-format inventory, we are well positioned as this format continues to gain popularity. While the third quarter has seen softer-than-expected performances from titles including Minions & Monsters and Moana, Spider-Man: Brand New Day delivered the highest domestic opening weekend in box office history and became the fastest film ever to surpass $400 million domestically. That performance, along with highly anticipated fourth quarter releases, including Cat in the Hat, The Hunger Games, Avengers: Doomsday and Dune: Part 3, gives us confidence in the trajectory of the quarter and the balance of the year. The second quarter reinforced what we had been building: a stronger local business, a growing programmatic offering, and a more efficient operating base. The proposed acquisition of Captivate extends all 3 into a second premium network, and we look forward to closing the transaction in the second half of the year. Now I'll turn the call over to Ronnie to provide you with more details on our operating results and outlook. Ronnie Ng: Thank you, Tom, and good afternoon, everyone. I'll cover our second quarter results first, then walk through the financial details of the Captivate transaction. As Tom discussed, our second quarter results were broadly in line with our expectations. Attendance increased 19.3% year-over-year, driven primarily by the strong performance of breakout R-rated horror films Backrooms and Obsession late in the quarter. While the June film slate and FIFA World Cup created near-term monetization headwinds and reduced advertising yield, we continued to drive healthy advertiser demand throughout the period. Combined with continued momentum in our local advertising business and disciplined expense management, we delivered second quarter results within our guidance range. Total revenue for the second quarter was $58.4 million, up 12.7% year-over-year. Total advertising revenue was $54.4 million, up 14.3% from $47.6 million in the prior year period. Advertising performance was strongest during April and May, as healthy advertiser demand and favorable attendance trends drove higher utilization. As we've discussed, June followed a different pattern as attendance shifted toward breakout R-rated films, which historically generate lower advertising yield than broad mainstream studio releases with broader audience appeal. As a result, utilization moderated during the month despite continued healthy consumer attendance. Despite this trend, we drove a year-over-year increase in CPMs in each of the 3 months of the quarter. Turning to our national business. National advertising revenue totaled approximately $45 million during the quarter, up 9% from the prior year period. While the composition of the June release slate and a temporary budget shift toward the FIFA World Cup affected some advertising campaigns during the quarter, underlying advertiser demand remained healthy across our core categories, including insurance, retail, automotive, and pharmaceutical. At the same time, our continued investments in local advertising drove standout performance in that business. Local revenue increased 48.4% year-over-year to $9.5 million, reflecting our continued investment in rebuilding the local business, expanding premium inventory, improving pricing, and increasing participation from advertisers across our markets. Average local advertising revenue per attendee increased 24% to $0.07, demonstrating our ability to generate greater value from growing attendance while continuing to broaden our local advertiser base. As Tom noted, the progress we've made in local advertising reinforces our enthusiasm for the acquisition of Captivate and the opportunity to leverage our local experience and advertiser relationships across its network. Alongside local, the transaction also meaningfully strengthens our long-term programmatic growth opportunities, as Tom shared. Turning to expenses. Operating expenses for the second quarter totaled approximately $71.2 million, reflecting higher attendance-driven exhibitor fees and $2.7 million in one-time costs related to our operational transformation. On an adjusted basis, operating expenses were $56.3 million, primarily driven by a 22% year-over-year increase in exhibitor fees related to the increase in attendance and offset by a 7% year-over-year reduction in SG&A, reflecting initial savings achieved under the operational transformation. As Tom highlighted, we completed execution of the operational transformation initiatives announced earlier this year. Year-to-date, we implemented additional cost reduction actions across the organization and realized $2.7 million of savings. We remain on track to achieve approximately $11 million in annualized run-rate cost savings, with up to $6 million by the end of 2026. These actions helped offset the lower utilization we experienced during June while creating additional capacity to invest in our highest return growth initiatives. Turning to profitability. Operating loss for the quarter was approximately $12.8 million, while adjusted OIBDA totaled approximately $2.1 million. The 200% year-over-year improvement in adjusted OIBDA primarily reflects higher attendance, continued improvement in advertising revenue, disciplined expense management, and the early benefits of our operational transformation initiatives. These factors were partially offset by lower advertising yield resulting from the composition of the June film slate. Turning to cash flow. Unlevered free cash flow was negative $2.1 million during the quarter, a 70% improvement compared with the prior year period, reflecting better working capital management and a slight improvement in profitability, partially offset by one-time costs related to the operational transformation. Year-to-date, NCM has generated total revenue of $92.4 million compared to $86.6 million in the same period last year. National and local advertising revenues increased 5% and 24%, respectively, primarily reflecting a stronger advertising environment, increased attendance across NCM's network, and a higher mix of premium inventory. Total adjusted OIBDA for the period was negative $8.5 million compared to negative $8.3 million in the prior year, driven by higher attendance-related exhibitor fees. Looking at our current balance sheet, NCM ended the quarter with approximately $46.1 million of cash, cash equivalents, restricted cash, and marketable securities, while total debt remained approximately $12 million. During the quarter, we repurchased approximately 63,000 shares for a total of approximately $200,000 at an average price of $3.10 per share. Now I'd like to discuss our announced transaction in more detail. We believe Captivate is a compelling strategic fit and an attractive financial asset. In 2025, Captivate generated approximately $64 million of revenue and $19.3 million of adjusted EBITDA, compared with approximately $45 million and $12.5 million, respectively, in 2023. Captivate operates at an adjusted EBITDA margin of 30%, with only approximately $3 million of annual capital expenditures, producing strong free cash flow with meaningful operating leverage. These characteristics complement NCM's existing business while enhancing the combined company's margin profile and long-term financial flexibility. The transaction values Captivate at an enterprise value of $275 million, representing approximately 10x Captivate's pro forma EBITDA. We expect to realize at least $3.5 million of annual run-rate cost synergies within year 1 post close. Importantly, those identified cost synergies do not include the additional commercial upside we expect to realize through cross-selling opportunities across the combined platform, leveraging NCM's local go-to-market strategy and sales organization to improve inventory utilization across Captivate's network and expanding our programmatic capabilities. The transaction will be financed through $275 million of new committed term debt, with available cash used to refinance the company's existing revolver and fund transaction expenses. Including the transaction incurrence of the new term debt, expected synergies and savings from NCM's operational transformation initiative, we expect net leverage at close to be approximately 3.9x. The combined company's high gross margins and asset-light business model are expected to support meaningful free cash flow for debt repayment, which will be our primary use of free cash flow following the close. Accordingly, we are pausing our dividend and share repurchase programs. The acquisition received unanimous Board approval but remains subject to customary closing conditions, including applicable regulatory approvals and is expected to close during the second half of 2026. Until close, NCM and Captivate will continue operating as independent companies in the ordinary course. Following closing, our primary focus will be maintaining service continuity, preserving Captivate's operating strengths and realizing the strategic and financial benefits of the combination. In connection with the pending transaction, we are not providing a forward outlook at this time. This reflects the expected timing of the transaction, not any change in our view of the underlying business. We continue to view premium video and digital out-of-home advertising as a compelling long-term growth opportunity, and we believe the combined company's scale, data, and sales infrastructure will position us well within the market while creating substantial long-term value for advertisers, partners, and shareholders. Operator, please open the line for questions. Operator: [Operator Instructions] The first question today comes from Mike Hickey with StoneX. Please go ahead. Michael Hickey: I guess, Tom, first question on the deal here. Obviously, congratulations. But curious, why are you thinking diversifying now? Cinema attendance and gross box office are probably the strongest we've seen since prepandemic. Why is now the right time to deploy, I guess, capital outside of your core cinema business rather than leaning harder into the recovery that you're seeing today? Thomas Lesinski: So let me answer that in a couple of different ways, and I appreciate the question. First of all, this acquisition represents really the next step in our strategy to build a market-defining premium video and digital out-of-home platform. And it's actually a very highly complementary extension of our core business in that it delivers really a sought-after audience in the same premium type of high-attention environment. So we expect Captivate to add a second layer of growth to NCM's national and local sales organization and grow our advertising relationships and our programmatic capabilities. So we see the combination creating a much more scaled platform that really better serves advertisers and while really positioning NCM for longer-term growth. So we're taking this as a step from a position of strength in cinema. This quarter, obviously, was a good quarter domestically at the box office. And cinema certainly remains our core business, and we continue to invest in it through initiatives, including just recently the AMC lobby initiative. But Captivate is an extension of what we already do best, and reaching hard-to-reach, video-enabled audiences in a premium environment is very much our business model. So we really see this combination making our cinema inventory more valuable as Captivate's footprint overlaps with our existing exhibitor markets and really enables us to reach the same consumer throughout the week. Just to give you an example, picture in New York City, someone leaving their condominium, seeing an ad for a movie at a local theater, again seeing the ad when they enter their office, again seeing an ad when they leave their office and then ultimately being directed to a theater right around the corner from their building. Another key factor, which is really worth noting, is, for example, in New York, 80% of the buildings that we're buying into with Captivate are within 1 mile or less of a cinema. So we look at that closed loop, and we look at we're creating this high-value consumer relationship where they live, work and play. So we look at it really as a complementary opportunity for our business. Michael Hickey: The next question, maybe just a bridge on the 10x multiple. I think you described the $275 million purchase price, about 10x pro forma EBITDA. But you look at Captivate's 2025 EBITDA, I think it's about $19 million, which implies about a 14.5 multiple. Can you just walk us through the bridge from $19 million to the EBITDA number underlying the 10x multiple? Ronnie Ng: Yes, sure. So the multiple actually also is inclusive of the $3.5 million of cost savings that we expect to achieve within the first year of closing the transaction. And then it is also what's underlying in that multiple is the outlook for the full year of '26. Michael Hickey: The last question on leverage tolerance. You guided to about sub-4x, 3.9x net leverage at close, postdeal synergies, structuring savings at NCM, which I think you've realized now. I guess before those benefits, it looks like leverage is 5x here. Is that the right way to think about the starting point? And how quickly do you expect to realize those savings and see them flow through the P&L and then cash flow? Ronnie Ng: Yes. So I think in terms of your comments about what leverage looks like presynergies, I will tell you, it's definitely sub 5x. And that our expectation is that we are -- very similar to our business, Captivate is not very capital-intensive. In fact, it only has capital expenditures about $3 million per year. So their CapEx requirements are even lower than ours. And that their working capital -- usage of working capital is also much more friendly than ours. So there is actually an expectation that we're going to generate quite a bit of meaningful free cash flow going forward and that we expect the capital structure to meaningfully delever over the next 2 to 3 years. Operator: [Operator Instructions] The next question comes from Patrick Sholl with Barrington Research. Patrick Sholl: Maybe just a couple of questions on Captivate. Just given the multiple that you're paying for that, just can you maybe just talk a little bit about your expectations around revenue and EBITDA growth? Maybe with some of the return-to-office areas, where that business stands relative to prepandemic? Thomas Lesinski: So Ronnie can talk specifically to the financial part of it. But all of the data that we have is that the return-to-work in the Class A buildings that Captivate focuses on has normalized to pre-COVID levels. And that's verified and supported by the impressions measurements that we're using. So much like the recovery that's happened in theaters, the actual return-to-work recovery has actually been even stronger in those buildings. I would also say before Ronnie gets into the specifics, that if you look at the growth potential, there's a significant amount of buildings, both on the residential side and on the commercial side, that can be part of this growth story. We've identified 11,000 potential new Class A buildings that could be added to Captivate's platform and another 10,000 buildings that could also be added to their residential platform. The other pieces of upside are really on the CPM side. We do believe there's a potential to increase CPMs on B2B as well as improve utilization, especially based on the fact that we have obviously a very large, both national and local, sales force that we believe will help supplement that. To give you an example, NCM today has around 330 or so advertisers. And when you look at how many overlap actually with Captivate, there's only around 30. So there's a tremendous potential for our existing advertising relationships to grow the Captivate network. And to be fair, they've got a significant number of advertisers that also will help migrate to the NCM platform. So those are what I would call some of the growth engines that we see with Captivate. Ronnie, you can talk a little bit more about the financial growth if you want. Ronnie Ng: Yes. So I think if you look over the past 2 years, Captivate actually has grown their platform pretty significantly. The top line has grown approximately 40% over the last 2 years with EBITDA growing almost over 50%. So obviously, a lot of that is due to the return-to-office environment. But there's also the -- there's actually a lot of room for expansion, just growing outside of their network, so to speak. They really started the residential business about 2 years ago. And so, that is still a small business for them. And there's a lot of meaningful upside to that business, especially when we're able to plug in our local sales force into their residential business. Right now, Captivate does not have a local sales team. So the good news is none of the, call it, revenue synergies is really modeled into our thinking in terms of numbers, but there's definitely a lot of upside in terms of expanding their residential business, expanding their existing commercial business, which if you look at their footprint within the major DMAs, their own footprint isn't fully penetrated as well. For example, Los Angeles, it's only about 17% penetration. So there's plenty of room to grow despite I think everybody when they go into an elevator feels like they see Captivate on the elevator screens. It also just goes to show that there's still a lot more to do. Patrick Sholl: And then maybe just on the advertiser overlap and some of the revenue benefits. So you've historically talked about your key cinema market of being the 18 to 44 range of Gen Z and millennial area. Can you maybe just talk about the audience characteristics because certainly the office market is probably going to skew a little bit older than that. And then lastly, since we're about past the peak period of -- well, maybe not through, but we're still going through some pretty strong box office in August. But just given where we are in the quarter, and I realize there's uncertainty on the timing of closing, but just why not provide some Q3 expectations? Thomas Lesinski: Well, Ronnie can handle the guidance question. But I think what you're getting at is the demographic difference is also a real benefit. Their core audience is very affluent high-income earners who are very attractive to advertisers. Their B2C business is very similar to our core business today. The buildings that they've selected from a residential side are obviously in major markets, higher-income, really luxury buildings, which correlates nicely to our [ B2C ] business. So we think we'll be able to unlock business for them, and they'll also unlock some business for us. The most important thing is both of these demographics are hard to reach and valuable. And that was one of the most important criteria that we looked at is we have these 2 businesses that are very hard to reach. And we know that the combination of what Captivate brings to and NCM does will make for a great platform. Ronnie Ng: Yes. So in terms of the -- not providing a forward guide at this moment, obviously, by the time we report third quarter, there's a chance that we would have this deal also closed. So there could be, call it, some periods in there in the reported third quarter where you have, call it, partial periods of -- at the time when we close to the end of the quarter. So it makes providing a guide a little bit more difficult today, and that's why we're pausing that for the moment. Operator: The next question comes from Alicia Reese with Wedbush. Alicia Reese: I'm curious if you could go into a couple of things. First, on local, I wondered if you could dig in a little bit on what were the driving factors for the local growth for theaters in the second quarter. How much of that was just expanding the sales force to get new clients versus existing clientele spending more and perhaps getting better returns in that? And then a second part, to what extent does Captivate already have local advertising? You had mentioned that they don't have a local sales force team. But if you could dig in on that opportunity a little bit deeper. And then I have a follow-up. Thomas Lesinski: So let me take the second one first and then we'll do the first one. Yes. So right now, it's one sales team at Captivate, and they sell more of a national, regional type of advertiser into their platform. As you know, we've got one of the better specialty local ad sales companies in the United States. We changed leadership in that group out this past year. We're now seeing the dividends and benefit of that team with new leadership, also with a lot of new salespeople. So it's a mixture of both reaching new advertisers that came from prior relationships and then also building off our current base of advertisers. And remind me again, your first question, Alicia? Alicia Reese: I was just trying to dig in on whether it was a factor of just building the sales force for local and building the clientele around that, just adding new advertisers versus extracting more per advertiser on maybe higher ROI opportunities since you've got a lot of capabilities within that. Ronnie Ng: Yes. So Alicia, the 3 points you summarized actually encapsulate really the whole entire driver of local actually in year-to-date. That's actually pretty good. But yes, you're right. It is actually a function of we did increase a little bit of the local sales team. But more importantly, even though the total number of people selling in local is not meaningfully up, but it is up. But more importantly, that we did do some swaps in certain areas or coverages to, I would say, improve in talent is also a beneficiary of that. The other piece of it is that the local team was also because we actually do have more premium inventory because of the new AMC deal last year was able to monetize some of that at much more attractive pricing was also another beneficiary. We also saw -- because of all of those 2 things, we saw -- as a result, we actually saw improvements in certain categories that we saw versus the prior year. So for example, retail was a big beneficiary of that. Actually, retail was up substantially in the second quarter. And then also, entertainment was another piece of category that was up quite a bit along with gaming and travel. So all of those things put together actually drove locals' performance not only in the second quarter but year-to-date. Alicia Reese: And I have a couple of other questions on Captivate. Is there any seasonality that you could help us with for Captivate? Would you just expect just typical advertising seasonality? Or is there anything in there that we should be aware of? Thomas Lesinski: I think it's different than the cinema advertising market in that it's not as seasonal in the summer and in the fourth quarter. The overall ad market as you know has its own cadence. But I think one thing that's attractive about Captivate, it'll help smooth out our ad revenue across the months. But generally speaking, they follow the ad calendar, whereas cinema advertising is much more weighted to the ad calendar plus the heavy box office draws typically in the summer and in November and December. Ronnie Ng: What I would add to that is during diligence, what we found out is it's actually the mixture of advertisers are really sticky. If you really think about who they primarily cater to in those office buildings, it's a lot of what we call B2B advertisers. And they tend to really spend on a more predictable cadence, I would say, than your typical B2C advertiser. Alicia Reese: And last one for me. I don't actually have a good sense at this point for whether or not office or residential buildings do political advertising. Could you answer that? Thomas Lesinski: I think it's based typically on what the landlord or the owner of the building decides is appropriate. It's not banned. But obviously, every agreement has the ability for the owner of that building to make a discretionary judgment on content. But it certainly would be an opportunity that we could look at. Alicia Reese: And you had said, I think, last quarter -- correct me if I'm wrong -- that theater owners were beginning to be a little bit more open to political advertising in some parts of their circuits. Is that right? Thomas Lesinski: That's correct. That's correct. Obviously, it's a new ad opportunity and everyone wants to make sure that it's presented in the right way and that it's part of the experience and it's not upsetting anyone in any way. So there's a review process of what's appropriate and what isn't. And obviously, there's quite a spectrum of political advertising from getting out the vote to other types of ads. So it's an area we're highly focused on, and we think it's going to create a lot of upside for our company going forward. Operator: We now have a follow-up from Mike Hickey with StoneX. Michael Hickey: Tom, I'm just curious on Captivate. Can you give us a better sense of the overall TAM for elevator advertising or their core business and what the competitive profile of that business is in the U.S. and their respective market share? Thomas Lesinski: I don't have that at my fingertips, but when we get on our follow-ups, we can get that pulled together for you. Michael Hickey: And one more on dirty math here, Ronnie, but it looks like to get to the multiple ex cost synergies implies getting close to about 30% EBITDA growth. Just wanted to clarify if you would expect that growth over -- I think you said '26. I just want to make sure I heard that right or if that's '27. And then what's the situation, Tom, with the management team, basically, who's going to run this piece of your business now? And given the growth that's needed from Captivate to earn that pro forma multiple, why did you decide against an earn-out? Thomas Lesinski: Obviously, when you're doing an acquisition, Mike, it can be competitive. And the way the deal was structured and the price, that was the opportunity that was put before us and allowed us to compete for it in a competitive situation. So I guess I'll leave it at that for now. But in terms of the management structure, there's really single-digit numbers of people that are part of the synergy. The core skill set of Captivate and its sales team and the support of it will remain. Some of it will obviously get integrated into NCM in terms of the back office and other areas. But they have a very specialized business, particularly on the B2B side. On the B2C side, there's obviously a lot more overlap. But we'll be updating you guys more after close on what the real integration looks like. And we'll be happy to share that with you. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Lesinski for any closing remarks. Thomas Lesinski: Okay. I just want to thank everybody for participating in the call. Thank you for your support of National CineMedia. This quarter demonstrates again our ability to execute against our priorities strategically despite a less than favorable advertising environment and film mix. And I really want to thank NCM's team, in particular, for their continued hard work. Finally, Captivate, just to reiterate, is a very exciting extension of our core and a transformative next step in our growth strategy. So together, we expect to create a more diversified and comprehensive premium video and digital out-of-home advertising platform that expands our reach, strengthens our technology and programmatic capabilities, and creates new opportunities to better serve our advertisers. So looking ahead, we remain encouraged by the strong end-of-the-year slate, excited about the pending acquisition of Captivate, and we look forward to continuing to deliver value for our advertisers, our exhibitor partners and our shareholders. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in National CineMedia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and National CineMedia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. National CineMedia (NCMI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in National CineMedia, Inc.? Here are five stocks we like better. Second-quarter performance improved: Revenue rose 12.7% to $58.4 million and advertising revenue increased 14.3% to $54.4 million, helped by a 19.3% attendance gain. Adjusted OIBDA rose 200% year over year to approximately $2.1 million, although the company still posted a $12.8 million operating loss. NCM agreed to acquire Captivate for $275 million: The deal would expand the company from cinema advertising into office and residential digital out-of-home media, adding more than 26,000 screens across over 11,000 buildings. The transaction is expected to close in the second half of 2026 and will be financed with new term debt. Financing will change capital allocation: NCM expects approximately 3.9 times net leverage at closing and plans to direct free cash flow toward debt repayment, prompting it to pause dividend and share-repurchase programs while the acquisition is pending. National CineMedia (NASDAQ:NCMI) reported higher second-quarter revenue and advertising sales as theater attendance increased, while also announcing a definitive agreement to acquire digital elevator and lobby advertising operator Captivate for an enterprise value of $275 million. Chief Executive Officer Tom Lesinski said the proposed acquisition would expand NCM beyond cinema advertising into office and residential properties, creating a premium video and digital-out-of-home platform spanning theaters, office buildings and residential locations. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Captivate operates more than 26,000 digital video screens in over 11,000 buildings across more than 170 designated market areas in the U.S. and Canada, according to NCM. Its office-focused business includes more than 12,000 screens in over 1,600 Class A and B office buildings, while its residential network operates across more than 9,700 locations. NCM reported total second-quarter revenue of $58.4 million, up 12.7% from a year earlier. Advertising revenue rose 14.3% to $54.4 million, including approximately $45 million in national advertising revenue, up 9%, and $9.5 million in local advertising revenue, up 48.4%. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Attendance across NCM’s network increased 19.3% year over year. Lesinski said the theater industry recorded its strongest second-quarter box-office performance since the pandemic, supported by a broad film slate and late-quarter demand for R-rated horror releases “Backrooms” and “Obsession.” However, management said strong attendance did not fully translate into the advertising yield generally associated with broader, mainstream franchise releases. The company cited the greater concentration of R-rated horror titles, which it said are typically more difficult to monetize, as well as weaker-than-expected performances from “Supergirl” and “Star Wars: The Mandalorian and Grogu.” → Is Wingstop's Growth Story Losing Steam? Chief Financial Officer Ronnie Ng said advertising utilization moderated during June despite healthy attendance, though NCM increased CPMs year over year in each month of the quarter. The company also said some domestic advertising budgets shifted toward the FIFA World Cup 2026. Operating expenses totaled about $71.2 million, including higher attendance-driven exhibitor fees and $2.7 million in one-time costs related to NCM’s operational transformation. On an adjusted basis, operating expenses were $56.3 million, with exhibitor fees rising 22% year over year and selling, general and administrative expenses declining 7%. NCM posted an operating loss of approximately $12.8 million and adjusted OIBDA of approximately $2.1 million, a 200% year-over-year improvement. Unlevered free cash flow was negative $2.1 million, a 70% improvement from the prior-year period. For the first half of the year, total revenue was $92.4 million, compared with $86.6 million a year earlier. Adjusted OIBDA was negative $8.5 million, compared with negative $8.3 million in the prior-year period. Management highlighted local advertising as a key contributor to the quarter. Average local advertising revenue per attendee increased 24% to $0.07. Lesinski and Ng attributed the performance to investments in the local sales organization, personnel changes, expanded premium inventory associated with the company’s AMC lobby initiative, improved pricing and growth in categories including retail, entertainment, gaming and travel. Programmatic revenue rose 45% year over year, though management said it remains a modest portion of total advertising revenue. During the quarter, NCM added Magnite to its supply-side platform relationships, which Lesinski said now cover 90% of the programmatic digital-out-of-home market. The company completed implementation of its operational transformation plan and reported $2.7 million in year-to-date savings. NCM said it remains on track to generate about $11 million in annualized run-rate savings, including up to $6 million by the end of 2026. NCM said the Captivate acquisition is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals. The companies will continue to operate independently until closing. Captivate generated approximately $64 million of revenue and $19.3 million of adjusted EBITDA in 2025, compared with $45 million of revenue and $12.5 million of adjusted EBITDA in 2023. Ng said Captivate’s adjusted EBITDA margin was 30%, with approximately $3 million of annual capital expenditures. The $275 million enterprise value represents about 10 times Captivate’s pro forma EBITDA, according to NCM. Ng said the calculation includes at least $3.5 million in annual run-rate cost synergies expected within the first year after closing, as well as Captivate’s 2026 outlook. NCM expects the combined platform to include more than 48,000 digital screens across 185 designated market areas, including all of the top 100 markets. Management said Captivate brings access to business-to-business advertising budgets and an affluent professional audience, while NCM contributes cinema audiences and a local sales organization. NCM said it sees cross-selling potential because it currently has about 330 advertisers, with only around 30 overlapping with Captivate advertisers. Management identified potential network expansion in 11,000 additional Class A office buildings and another 10,000 residential buildings. The acquisition will be financed with $275 million of new committed term debt. Available cash will be used to refinance NCM’s existing revolver and fund transaction expenses. NCM ended the quarter with approximately $46.1 million in cash equivalents, restricted cash and marketable securities, and approximately $12 million in total debt. The company expects net leverage at closing of approximately 3.9 times, including expected synergies and savings from its transformation plan. Ng said management expects the asset-light combined business to generate free cash flow that will be directed primarily toward debt repayment over the next two to three years. Accordingly, NCM is pausing its dividend and share-repurchase programs. The company said it is not providing a forward outlook while the Captivate transaction is pending. National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment. Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "National CineMedia Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $58.4 million, up 12.7% year-over-year. Total Advertising Revenue: $54.4 million, up 14.3% from $47.6 million in the prior year period. National Advertising Revenue: Approximately $45 million, up 9% from the prior year period. Local Advertising Revenue: $9.5 million, up 48.4% year-over-year. Average Local Advertising Revenue per Attendee: Increased 24% to $0.07. Operating Expenses: Approximately $71.2 million, including $2.7 million in one-time costs related to operational transformation; adjusted operating expenses were $56.3 million. Operating Loss: Approximately $12.8 million. Adjusted OIBDA: Approximately $2.1 million, a 200% year-over-year improvement. Unlevered Free Cash Flow: Negative $2.1 million, a 70% improvement compared with the prior year period. Year-to-Date Total Revenue: $92.4 million compared to $86.6 million in the same period last year. Year-to-Date Adjusted OIBDA: Negative $8.5 million compared to negative $8.3 million in the prior year. Cash and Marketable Securities: Approximately $46.1 million at quarter end. Total Debt: Approximately $12 million. Share Repurchases: Repurchased approximately 63,000 shares for approximately $200,000 at an average price of $3.10 per share. Captivate 2025 Revenue: Approximately $64 million. Captivate 2025 Adjusted EBITDA: Approximately $19.3 million. Captivate Adjusted EBITDA Margin: 30%. Captivate Annual Capital Expenditures: Approximately $3 million. Captivate Acquisition Enterprise Value: $275 million, representing approximately 10 times pro forma EBITDA. Expected Cost Synergies: At least $3.5 million of annual run rate cost synergies within year one post-close. Expected Net Leverage at Close: Approximately 3.9 times. Warning! GuruFocus has detected 2 Warning Sign with NCMI. Is NCMI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. National CineMedia Inc (NASDAQ:NCMI) announced a strategic acquisition of Captivate, creating a leading premium video and digital out-of-home advertising platform with over 48,000 digital screens, expanding its reach to 185 DMAs. The company reported strong second-quarter results with total revenue of $58.4 million, up 12.7% year-over-year, and adjusted OIBDA of $2.1 million, a threefold increase from the prior year. Local advertising revenue surged 48.4% year-over-year to $9.5 million, driven by investments in the local sales organization and improved pricing, with average local revenue per attendee up 24%. Programmatic revenue grew 45% year-over-year, supported by new supply-side platform relationships covering 90% of the programmatic digital out-of-home market. The company completed its operational transformation plan, achieving $2.7 million in savings year-to-date and on track to reach $11 million in annualized run-rate cost savings, enhancing financial flexibility. National CineMedia Inc (NASDAQ:NCMI) faced monetization headwinds in June due to a film slate dominated by R-rated and horror titles, which typically generate lower advertising yield, and underperformance of mainstream releases like 'Supergirl' and 'Star Wars: The Mandalorian and Grogu'. The acquisition of Captivate will increase net leverage to approximately 3.9 times at close, leading to a pause in dividend and share repurchase programs to prioritize debt repayment. The company is not providing a forward outlook due to the pending transaction, creating uncertainty for investors regarding near-term performance expectations. The transaction values Captivate at an enterprise value of $275 million, representing a 10x pro forma EBITDA multiple, which may be considered a premium price. The company's unlevered free cash flow remained negative at $2.1 million in the second quarter, reflecting ongoing working capital challenges and one-time transformation costs. Q: Why is now the right time to diversify outside of the core cinema business, given the strong box office recovery?A: Thomas Lesinski (CEO) explained that the acquisition of Captivate is the next step in building a market-defining premium video and digital out-of-home platform. It is a highly complementary extension of the core business, delivering sought-after audiences in premium, high-attention environments. The combination creates a scaled platform that better serves advertisers and positions NCM for long-term growth. He highlighted the closed-loop opportunity, noting that in New York, 80% of Captivate's buildings are within one mile of a cinema, allowing NCM to reach consumers where they live, work, and play. Q: Can you walk us through the bridge from Captivate's 2025 EBITDA of $19 million to the 10x multiple on the $275 million purchase price?A: Ronnie Ng (CFO) clarified that the 10x multiple is based on pro forma EBITDA, which includes the $3.5 million of expected annual cost synergies within the first year post-close and the outlook for the full year 2026. Q: What are your expectations for revenue and EBITDA growth for Captivate, particularly regarding the return-to-office trend?A: Thomas Lesinski (CEO) stated that return-to-work in Captivate's Class A buildings has normalized to pre-COVID levels. He identified significant growth potential, including 11,000 new Class A buildings and 10,000 new residential buildings that could be added to the platform. There is also upside from increasing CPMs on B2B advertisers and improving utilization. He noted that NCM has ~330 advertisers, but only ~30 overlap with Captivate, presenting a huge cross-selling opportunity. Ronnie Ng (CFO) added that Captivate's revenue has grown 40% and EBITDA over 50% in the past two years, with the residential business, started two years ago, still being small with meaningful upside. Q: What were the driving factors for the 48% growth in local advertising revenue in the second quarter?A: Ronnie Ng (CFO) attributed the growth to a combination of factors: a slightly increased local sales team with improved talent and coverage, the ability to monetize new premium inventory from the AMC deal at more attractive pricing, and improvements in key categories like retail, entertainment, gaming, and travel. Thomas Lesinski (CEO) added that the growth came from both reaching new advertisers and building off the current base, driven by new leadership and new salespeople. Q: Does Captivate have any seasonality, and how does it compare to the cinema advertising business?A: Thomas Lesinski (CEO) explained that Captivate is not as seasonal as cinema advertising, which is heavily weighted to summer and Q4 box office draws. Captivate follows the general ad calendar, which will help smooth out NCM's ad revenue across the months. Ronnie Ng (CFO) added that Captivate's advertiser mix is "sticky," with many B2B advertisers that spend on a more predictable cadence than typical B2C advertisers. Q: Is political advertising allowed in office or residential buildings, and is it an opportunity?A: Thomas Lesinski (CEO) stated that political advertising is not banned, but it is subject to the landlord's or building owner's discretionary judgment on content. He confirmed it is an opportunity the company could look at. He also noted that theater owners are becoming more open to political advertising, and it is an area of high focus that could create upside, with a review process to ensure it is presented appropriately. Q: Can you provide a sense of the overall TAM for elevator advertising and Captivate's competitive profile and market share?A: Thomas Lesinski (CEO) did not have the specific figures at his fingertips but committed to providing the information in follow-up communications. Q: What is the situation with Captivate's management team, and why did you decide against an earnout given the growth needed to justify the pro forma multiple?A: Thomas Lesinski (CEO) explained that the deal was competitive, and the structure and price were what allowed NCM to win the bidding. He stated that Captivate's core sales team and support will remain, with some back-office functions integrated into NCM. He noted that the B2B side is specialized, while the B2C side has more overlap, and NCM will provide more details on integration after close. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second quarter revenue increased 12.7% year-over-year to $58.4 million driven by strong execution and continued box office momentum Operational transformation delivered $2.7 million in cost savings year-to-date and remains on track for approximately $11.0 million in annualized cost savings Acquisition of Captivate will create the leading premium video and digital out-of-home advertising platform with more than 48,000 screens across 185 designated market areas upon closing CENTENNIAL, Colo., August 11, 2026--(BUSINESS WIRE)--National CineMedia, Inc. (NASDAQ: NCMI) (the "Company" or "NCM"), the managing member of National CineMedia, LLC (NCM LLC), the operator of the largest cinema advertising platform in the U.S., today announced its consolidated results for the fiscal second quarter ended July 2, 2026. "NCM delivered another quarter of meaningful growth alongside the strong domestic box office," said Tom Lesinski, Chief Executive Officer of National CineMedia, Inc. "We navigated a competitive advertising environment while executing against our strategic priorities, including continuing to strengthen our local business and driving efficiencies across the business through our operational transformation initiative. As we look to the future, we have taken a transformative next step in advancing our growth strategy through our agreement to acquire Captivate, the leading operator of digital video elevator and lobby advertising in North America, expanding and diversifying our premium platform to reach complementary, highly sought-after attentive audiences. Together, NCM and Captivate will create the leading premium video and digital out-of-home platform across theaters, office buildings and residential properties, enabling advertisers to reach consumers in high attention locations, with a single premium media partner." Q2 2026 Results Total revenue for the second quarter ended July 2, 2026 increased 12.7% to $58.4 million as compared to $51.8 million for the second quarter of 2025. Operating loss increased to $12.8 million for the second quarter of 2026 from $12.0 million for the second quarter of 2025. Net loss decreased to $9.9 million, or $0.11 net loss per diluted share, for the second quarter of 2026 from net loss of $10.7 million, or $0.11 net loss per diluted share, for the second quarter of 2025. Adjusted OIBDA, a non-GAAP measure, increased to $2.1 million for the second quarter of 2026 from $0.7 million for the second quarter of 2025, as adjusted to exclude depreciation, amortization, non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in Regal's Chapter 11 case (the "Cineworld Proceeding") and NCM LLC's Chapter 11 case ("Chapter 11 Case"), each as previously reported and described in the Company’s public filings made with the U.S. Securities and Exchange Commission (the "SEC"). As adjusted to exclude the aforementioned items and gain on remeasurement of the payable to ESA Parties under the tax receivable agreement, net loss per diluted share for the quarter ended July 2, 2026 is $0.10 compared to net loss per diluted share for the quarter ended June 26, 2025 of $0.11. Adjusted OIBDA, adjusted net loss and adjusted net loss per share are non-GAAP measures. See the tables at the end of this release for the reconciliations to the closest GAAP basis measurements. Total revenue for the six months ended July 2, 2026 increased 6.7% to $92.4 million as compared to $86.6 million for the six months ended June 26, 2025. Operating loss increased to $39.7 million for the six months ended July 2, 2026 from $35.9 million for the six months ended June 26, 2025. Net loss decreased to $38.6 million, or $0.41 net loss per diluted share, for the six months ended July 2, 2026 from $41.4 million, or $0.44 net loss per diluted share, for the six months ended June 26, 2025. Adjusted OIBDA, a non-GAAP measure, increased to negative $8.5 million for the six months ended July 2, 2026 from negative $8.3 million for the six months ended June 26, 2025, as adjusted to exclude depreciation, amortization, non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case, each as previously reported and described in the Company’s public filings made with the SEC. As adjusted to exclude the aforementioned items and (gain) loss on remeasurement of the payable to ESA Parties under the tax receivable agreement, net loss per diluted share for the six months ended July 2, 2026 is $0.33 compared to net loss per diluted share for the six months ended June 26, 2025 of $0.37. Adjusted OIBDA, adjusted net loss and adjusted net loss per share are non-GAAP measures. See the tables at the end of this release for the reconciliations to the closest GAAP basis measurements. Acquisition of Captivate On August 10, 2026, NCM entered into a definitive agreement to acquire Captivate Holdings, LLC ("Captivate"), the leading operator of digital video elevator and lobby advertising in North America, at an enterprise value of $275.0 million. The transaction will be funded with $275.0 million of new committed term debt, with available cash used to refinance the Company’s existing revolving credit facility and fund transaction expenses. NCM expects to generate more than $3.5 million of annual run-rate cost synergies within the first year following close of the acquisition, primarily through the elimination of duplicative corporate overhead and the consolidation of executive and administrative functions. The transaction is expected to close during the second half of 2026, subject to customary closing conditions and regulatory approvals. Until closing, NCM and Captivate will continue to operate independently in the ordinary course. Additional details are available in the Company’s press release dated August 11, 2026. Dividend In connection with the proposed acquisition of Captivate and expected leverage at closing, NCM has paused its quarterly dividend program. Outlook In connection with the expected timing of the pending transaction, NCM is not providing a forward outlook at this time. This does not reflect any change in the Company’s view of the underlying business. Conference Call The Company will host a conference call and audio webcast with investors, analysts, and other interested parties, August 11, 2026, at 5:00 P.M. Eastern Time. The live call can be accessed by dialing 1-844-826-3033 or, for international participants, 1-412-317-5185. Participants should register at least 15 minutes prior to the commencement of the call. Additionally, a live audio webcast will be available to interested parties at www.ncm.com under the Investor Relations section. Participants should allow at least 15 minutes prior to the commencement of the call to register, download and install necessary audio software. The replay of the conference call will be available until midnight Eastern Time, August 25, 2026, by dialing 1-844-512-2921 or, for international participants, 1-412-317-6671 and entering conference ID 10211032. About National CineMedia, Inc. National CineMedia, Inc. (NCM, NASDAQ:NCMI) is the largest cinema advertising platform in the U.S. With unparalleled reach and scale, NCM connects brands to sought-after young, diverse audiences through the power of movies and pop culture. A premium video, full-funnel marketing solution for advertisers, NCM enhances marketers' ability to measure and drive results. NCM’s Noovie® Show is presented exclusively in 44 leading national and regional theater circuits including the only three national chains, AMC Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal Entertainment Group (a subsidiary of Cineworld Group PLC). NCM’s cinema advertising platform, including Spotlight, consists of approximately 22,000 total theater and lobby screens in over 1,750 theaters in 183 Designated Market Areas® (98 of the top 100). NCM is the managing member and owner of 100% of National CineMedia, LLC (NCM LLC). For more information, visit www.ncm.com. Forward-Looking Statements This press release contains various forward-looking statements that reflect management’s current expectations or beliefs regarding future events, including statements regarding the Company’s anticipated future financial performance and any projections or expectations regarding the Company’s proposed acquisition of Captivate described herein. Forward-looking statements often use words such as "anticipates," "targets," "expects," "hopes," "estimates," "projects," "forecasts," "intends," "plans," "goals," "believes," "continue" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could." Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties. Although the Company believes that the assumptions used in the forward-looking statements are reasonable, any of these assumptions could prove to be inaccurate and, as a result, actual results could differ materially from those expressed or implied in the forward-looking statements. The factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are, among others, (1) the risk that the cost savings, any revenue synergies and other anticipated benefits of the proposed acquisition may not be realized or may take longer than anticipated to be realized, (2) disruption to the Company’s or Captivate’s businesses as a result of the announcement and pendency of the proposed acquisition and diversion of management's attention from ongoing business operations and opportunities, (3) the occurrence of any event that could give rise to the right of one or both of the parties to terminate the definitive purchase agreement, (4) the failure to obtain required regulatory approvals or a delay in obtaining such approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the Company or the expected benefits of the proposed acquisition), (5) the failure of any of the closing conditions in the definitive purchase agreement to be satisfied on a timely basis or at all, including the failure of the Company to obtain the committed financing under the debt commitment letters, (6) any other delays in closing the proposed acquisition, (7) the possibility that the proposed acquisition, including the integration of Captivate, may be more costly or difficult to complete than anticipated, (8) the impacts from the increased debt load incurred in connection with the proposed transaction, (9) level of theater attendance or viewership of the Noovie® show; (10) the availability and predictability of major motion pictures displayed in theaters, including as a result of strikes or other production delays in the entertainment industry; (11) increased competition for advertising expenditures; (12) changes to the ESAs or network affiliate agreements and the relationships with NCM LLC’s ESA Parties and network affiliates and NCM LLC's ability to enforce provisions contained in the ESA or network affiliate agreements; (13) economic conditions, including the level of expenditures on and perception of cinema advertising; (14) our ability to implement or achieve new revenue opportunities; (15) any failure to realize the anticipated benefits of the post-showtime inventory in our network or the development of additional digital or digital out of home revenue opportunities; (16) technological changes and innovations or the failure to adequately protect our systems, data or property from technology failures or cyberattacks; (17) our ability to renew or replace expiring advertising contracts; (18) the ongoing effects of NCM LLC’s emergence from bankruptcy or a lack of support from the ESA Parties; (19) reinvestment in our network and product offerings may require significant funding and resulting reallocation of resources; (20) fluctuations in and timing of operating costs; (21) our ability to retain or replace our senior management; (22) any failure to grow advertising revenue in line with the growth of contractual costs; (23) macroeconomic uncertainty which alters the spending priorities of current or prospective advertisers; and (24) changes in government regulations, funding, trade policies or tariffs. In addition, the outlook provided does not include the impact of any future unusual or infrequent transactions; sales and acquisitions of operating assets and investments; any future non-cash impairments of intangible and fixed assets; amounts related to litigation or the related impact of taxes that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events. Please refer to the Company’s Securities and Exchange Commission filings, including the "Risk Factor" section of the Company’s Quarterly Report on Form 10-Q for the three months ended April 2, 2026 and in the Annual Report on Form 10-K for the year ended January 1, 2026, for further information about these and other risks. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak to the information only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result, of new information, future events or otherwise, except as required by law. This press release contains references to Non-GAAP financial measures including Adjusted OIBDA (Operating Income Before Depreciation and Amortization expense, adjusted to exclude non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case). A reconciliation of these measures is available in this press release and on the investor page of the Company’s website at www.ncm.com. NATIONAL CINEMEDIA, INCNon-GAAP ReconciliationsUnaudited Adjusted OIBDA and Adjusted OIBDA Margin Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA") and Adjusted OIBDA margin are not financial measures calculated in accordance with GAAP in the United States. Adjusted OIBDA represents operating income before depreciation and amortization expense adjusted to also exclude non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in Regal’s Chapter 11 case (the "Cineworld Proceeding") and NCM LLC's Chapter 11 Case (the "Chapter 11 Case"). Our management uses this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share-based compensation programs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 Case, interest rates, debt levels or income tax rates. Adjusted OIBDA margin is calculated by dividing Adjusted OIBDA by total revenue. Our management uses this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share-based compensation programs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 Case, interest rates, debt levels or income tax rates. A limitation of both of these measures, however, is that they exclude depreciation and amortization, which represent a proxy for the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in NCM LLC’s business. In addition, Adjusted OIBDA and Adjusted OIBDA margin have the limitation of not reflecting the effect of the Company’s non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case. Adjusted OIBDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should it be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to Adjusted OIBDA, and operating margin is the most directly comparable GAAP financial measure to Adjusted OIBDA margin. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in NCM LLC’s debt agreement. The Company has not provided a reconciliation of the forward-looking non-GAAP Adjusted OIBDA measure to forward-looking GAAP operating income due to the inability to predict the amount and timing of impacts outside of the Company’s control on certain items, including the timing of revenue and charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant and are difficult to reasonably predict. Accordingly, a reconciliation of this non-GAAP measure is not available without unreasonable effort. The following table reconciles the Company's operating loss and operating margin to Adjusted OIBDA and Adjusted OIBDA margin for the periods presented (dollars in millions): Adjusted Net Loss and Loss per Share Adjusted net loss and adjusted net loss per share are not financial measures calculated in accordance with GAAP in the United States. Adjusted net loss and adjusted net loss per share are calculated using reported net loss and net loss per share and exclude workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs, advisor fees related to the Cineworld Proceeding and the Chapter 11 Case and loss on re-measurement of the payable to ESA Parties under the tax receivable agreement. Our management use these non-GAAP financial measures as an additional tool to evaluate operating performance. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to a method used by the Company’s management and helps improve their ability to understand the Company’s operating performance. Adjusted net loss and adjusted net loss per share should not be regarded as alternatives to net loss and net loss per share or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that net loss and net loss per share are the most directly comparable GAAP financial measures. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies. The following table reconciles as reported net loss and net loss per share to adjusted net loss and adjusted net loss per share excluding workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs, advisor fees related to the Cineworld Proceeding and the Chapter 11 Case and (gain) loss on remeasurement of the payable to ESA Parties under the tax receivable agreement for the periods presented (dollars in millions): View source version on businesswire.com: https://www.businesswire.com/news/home/20260811587805/en/ Contacts INVESTOR CONTACT: Chan Park, [email protected] MEDIA CONTACT: [email protected]

For the quarter ended June 2026, National CineMedia (NCMI) reported revenue of $58.4 million, up 12.7% over the same period last year. EPS came in at -$0.10, compared to -$0.11 in the year-ago quarter. The reported revenue represents a surprise of -3.31% over the Zacks Consensus Estimate of $60.4 million. With the consensus EPS estimate being -$0.09, the EPS surprise was -11.11%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how National CineMedia performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total revenue per attendee: $0.42 versus the two-analyst average estimate of $0.50. Total Screens (100% Digital) at Period End: 18,925 compared to the 18,033 average estimate based on two analysts. Total Attendance for Period: 137.6 million compared to the 122.15 million average estimate based on two analysts. Revenue- Local and regional advertising revenue: $9.5 million compared to the $9.1 million average estimate based on three analysts. The reported number represents a change of +48.4% year over year. Revenue- National advertising revenue: $44.9 million compared to the $47.97 million average estimate based on three analysts. The reported number represents a change of +9% year over year. Revenue- ESA Party advertising revenue from beverage concessionaire agreements: $4 million versus $3.37 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.8% change. View all Key Company Metrics for National CineMedia here>>> Shares of National CineMedia have returned -1% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National CineMedia, Inc. (NCMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when National CineMedia (NCMI) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This theater advertising company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +18.2%. Revenues are expected to be $60.4 million, up 16.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 66.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For National CineMedia, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.85%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that National CineMedia will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that National CineMedia would post a loss of$0.26 per share when it actually produced a loss of -$0.23, delivering a surprise of +11.54%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. National CineMedia doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National CineMedia, Inc. (NCMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HALIFAX, NS / ACCESS Newswire / May 14, 2026 / Namibia Critical Metals Inc. ("Namibia Critical Metals" or the "Company" or "NCMI") (TSXV:NMI)(OTCQB:NMREF) announces the results of the Company's Annual General Meeting of Shareholders held on May 14, 2026 (the "Meeting"). Shareholders holding 68.04% of the shares were represented in person or by proxy at the Meeting. All the matters submitted to the shareholders, as set out in the Notice of Meeting and Information Circular dated April 8, 2026, were voted in favour, including: (a) Election of Directors to the Board of the Company as listed below; (b) the approval of the stock option plan, pursuant to which the Company may grant stock options up to 10% of its issued and outstanding common shares at the time of grant; and (c) the appointment of PricewaterhouseCoopers LLP as the auditors of the Company for the ensuing year. Messrs. Adrian Hickey, Darrin Campbell, William Price and Steve Herlihy were re-elected to serve as directors of the Company, with the percentage of votes cast for each director as follows: The Company also announced today, pursuant to the requirements of the TSX Venture Exchange, that its board of directors approved the granting of incentive stock options ("Options") under its stock option plan as part of the overall remuneration and incentive program for its employees, consultants, officers and directors. A total of 1,000,000 Options were granted. All the Options are exercisable for a period of five years at a price of $0.20 per Common Share, being the closing price of the Company's common shares on the TSX Venture Exchange on May 13, 2026, and will vest 25% immediately and 25% per quarter thereafter. On behalf of the Board of Directors, Namibia Critical Metals Inc. Darrin Campbell, President About Namibia Critical Metals Inc. NCMI is developing the Tier-1 Heavy Rare Earth Project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals used in permanent magnets for electric vehicles, wind turbines and other electronics is driven by innovations linked to energy and technology transformations. The geopolitical risks associated with sourcing many of these metals have become a repeated concern for manufacturers and end users. Namibia is a proven and stable mining jurisdiction. The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture agreement with Japan Organization for Metals and Energy Security (JOGMEC). Toyota Tsusho will join the Lofdal Project as part of JOGMEC's ownership interest (announced on March 17, 2026). About Toyota Tsusho Corporation Toyota Tsusho Corporation is the trading and business development arm of the Toyota Group and one of Japan's leading global trading houses. The company operates across a wide range of sectors including metals, energy, chemicals, mobility, and advanced materials. Toyota Tsusho plays a significant role in building global supply chains for critical minerals and materials used in automotive electrification, renewable energy systems and advanced manufacturing. About Japan Organization for Metals and Energy Security (JOGMEC) and the JV JOGMEC is a Japanese government independent administrative agency which seeks to secure stable resource supplies for Japan. JOGMEC has a strong reputation as a long term, strategic partner in mineral projects globally. JOGMEC facilitates opportunities with Japanese private companies to secure supplies of natural resources for the benefit of the country's economic development. Rare earth elements are of critical importance to Japanese industrial interests and JOGMEC has extensive experience with all aspects of the sector. JOGMEC provided Lynas with USD$250,000,000 in loans and equity in 2011 to ensure supplies of the Light Rare Earths metals suite to the Japanese industry and invested a further $134 million in 2023. Namibia Critical Metals owns a 95% interest in the Lofdal project with the remaining 5% held for the benefit of Historically Disadvantaged Namibians. The terms of the JOGMEC joint venture agreement with the Company stipulate that JOGMEC provides C$3,000,000 in Term 1 and C$7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a further C$13,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also purchase another 1% for C$5,000,000 and has first right of refusal to fully fund the project through to commercial production and to purchase all production at market prices. The collective interests of NCMI and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of C$5,000,000 to JOGMEC for the dilution protection. NMI may elect to participate up to a maximum of 45% by funding pro rata after the earn in period is completed. To date, JOGMEC has completed Term 2 and earned a 40% interest by reaching the C$10 million expenditure requirement. Total approved project funding to date is C$18,273,000 of the $23,000,000 earn-in requirement to reach 50% interest. The common shares of Namibia Critical Metals Inc. trade on the TSX Venture Exchange under the symbol "NMI" and the OTCQB Market under the symbol "NMREF". Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For more information please contact: This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Forward-Looking Statements in this news release relate to, among other things; the estimation of Mineral Resources and Mineral Reserves and the realization of such mineral estimates; the statements and other results of the PFS discussed in this news release, including, without limitation, project economics, financial and operational parameters such as expected throughput, production, processing methods, cash costs, operating costs, other costs, capital expenditures, cash flow, NPV, IRR, payback period, life of mine and REE price forecasts These statements are only predictions. Forward-looking information is based on the opinions and estimates of management and the QP's at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information. SOURCE: Namibia Critical Metals Inc. View the original press release on ACCESS Newswire

Revenue of $34.0 million and profitability within expectations Company implements operational transformation targeting $11.0 million in annualized cost savings CENTENNIAL, Colo., May 12, 2026--(BUSINESS WIRE)--National CineMedia, Inc. (NASDAQ: NCMI) (the "Company" or "NCM"), the managing member of National CineMedia, LLC (NCM LLC), the operator of the largest cinema advertising platform in the U.S., announced today its consolidated results for the fiscal first quarter ended April 2, 2026. "NCM delivered first quarter results within our guidance range as we continued to advance our strategy to better monetize the growing theatrical audience," said Tom Lesinski, Chief Executive Officer of National CineMedia, Inc. "Our teams navigated typical first quarter seasonality and Olympic-related competition while driving advertiser demand for NCM’s premium audiences, scaled inventory and data-driven capabilities. We also implemented a meaningful operational transformation that is expected to generate $11.0 million in annualized cost savings, supported by AI-driven efficiencies that are making our organization more productive. As we look ahead, the compelling 2026 film slate, healthy advertiser demand and a more agile organization further position NCM to capture incremental demand and drive long-term value for our partners and shareholders." Q1 2026 Results Total revenue for the first quarter ended April 2, 2026 decreased 2.6% to $34.0 million as compared to $34.9 million for the first quarter of 2025. Operating loss increased to $26.9 million for the first quarter of 2026 from operating loss of $23.9 million for the first quarter of 2025. Net loss decreased to $28.6 million, or $0.31 net loss per diluted share, for the first quarter of 2026 from net loss of $30.7 million, or $0.32 net loss per diluted share, for the first quarter of 2025. Adjusted OIBDA, a non-GAAP measure, was negative $10.5 million for the first quarter of 2026 compared to negative $9.0 million for the first quarter of 2025, as adjusted to exclude depreciation, amortization, non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in Regal's Chapter 11 case (the "Cineworld Proceeding") and NCM LLC's Chapter 11 case ("Chapter 11 Case"), each as previously reported and described in the Company’s public filings made with the U.S. Securities and Exchange Commission (the "SEC"). As adjusted to exclude the aforementioned items and loss on remeasurement of the payable to ESA Parties under the tax receivable agreement, net loss per diluted share for the quarter ended April 2, 2026 is $0.23 compared to net loss per diluted share for the quarter ended March 27, 2025 of $0.24. Adjusted OIBDA, adjusted net income and adjusted net income per share are non-GAAP measures. See the tables at the end of this release for the reconciliations to the closest GAAP basis measurements. Operational Transformation During the first quarter of 2026, the Company implemented an operational transformation to accelerate the adoption of AI, streamline its organizational structure and enhance efficiencies. The program is targeting approximately $11.0 million in annualized cost savings on a run rate basis, measured against proforma full year 2025 SG&A expenses adjusted to include a full year of combined operations with Spotlight. Of this total, the Company has realized approximately $3.0 million in savings to date and expects to realize up to $6.0 million in savings in 2026, creating capacity to continue investing in its highest-return priorities. Dividend On May 12, 2026, the Company declared a cash dividend of $0.03 per share (approximately $2.8 million) on each share of the Company’s common stock to stockholders of record on May 22, 2026 to be paid on June 4, 2026. Q2 2026 Outlook For the second quarter of 2026, NCM LLC expects to earn total revenue of $57.0 million to $63.0 million and Adjusted OIBDA in the range of $1.0 million to $5.0 million. Conference Call The Company will host a conference call and audio webcast with investors, analysts, and other interested parties, May 12, 2026, at 5:00 P.M. Eastern Time. The live call can be accessed by dialing 1-844-826-3033 or, for international participants, 1-412-317-5185. Participants should register at least 15 minutes prior to the commencement of the call. Additionally, a live audio webcast will be available to interested parties at www.ncm.com under the Investor Relations section. Participants should allow at least 15 minutes prior to the commencement of the call to register, download and install necessary audio software. The replay of the conference call will be available until midnight Eastern Time, May 26, 2026, by dialing 1-844-512-2921 or, for international participants, 1-412-317-6671 and entering conference ID 10208983. About National CineMedia, Inc. National CineMedia, Inc. (NCM, NASDAQ:NCMI) is the largest cinema advertising platform in the U.S. With unparalleled reach and scale, NCM connects brands to sought-after young, diverse audiences through the power of movies and pop culture. A premium video, full-funnel marketing solution for advertisers, NCM enhances marketers' ability to measure and drive results. NCM’s Noovie® Show is presented exclusively in 41 leading national and regional theater circuits including the only three national chains, AMC Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal Entertainment Group (a subsidiary of Cineworld Group PLC). NCM’s cinema advertising platform, including Spotlight, consists of more than 18,500 screens in over 1,650 theaters in 185 Designated Market Areas® (all of the top 50). NCM is the managing member and owner of 100% of National CineMedia, LLC (NCM LLC). For more information, visit www.ncm.com. Forward-Looking Statements This press release contains various forward-looking statements that reflect management’s current expectations or beliefs regarding future events, including statements regarding the Company’s anticipated future financial performance. Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties. Although the Company believes that the assumptions used in the forward-looking statements are reasonable, any of these assumptions could prove to be inaccurate and, as a result, actual results could differ materially from those expressed or implied in the forward-looking statements. The factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are, among others, 1) level of theater attendance or viewership of the Noovie® show; 2) the availability and predictability of major motion pictures displayed in theaters, including as a result of strikes or other production delays in the entertainment industry; 3) increased competition for advertising expenditures; 4) changes to the ESAs or network affiliate agreements and the relationships with NCM LLC’s ESA Parties and network affiliates and NCM LLC's ability to enforce provisions contained in the ESA or network affiliate agreements; 5) economic conditions, including the level of expenditures on and perception of cinema advertising; 6) our ability to implement or achieve new revenue opportunities; 7) any failure to realize the anticipated benefits of the post-showtime inventory in our network or the development of additional digital or digital out of home revenue opportunities; 8) technological changes and innovations or the failure to adequately protect our systems, data or property from technology failures or cyberattacks; 9) our ability to renew or replace expiring advertising contracts; 10) the ongoing effects of NCM LLC’s emergence from bankruptcy or a lack of support from the ESA Parties; 11) reinvestment in our network and product offerings may require significant funding and resulting reallocation of resources; 12) fluctuations in and timing of operating costs; 13) our ability to retain or replace our senior management; 14) any failure to grow advertising revenue in line with the growth of contractual costs; 15) macroeconomic uncertainty which alters the spending priorities of current or prospective advertisers; and 16) changes in government regulations, funding, trade policies or tariffs. In addition, the outlook provided does not include the impact of any future unusual or infrequent transactions; sales and acquisitions of operating assets and investments; any future non-cash impairments of intangible and fixed assets; amounts related to litigation or the related impact of taxes that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events. Please refer to the Company’s Securities and Exchange Commission filings, including the "Risk Factor" section of the Company’s Quarterly Report on Form 10-Q for the three months ended April 2, 2026 and in the Annual Report on Form 10-K for the year ended January 1, 2026, for further information about these and other risks. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak to the information only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result, of new information, future events or otherwise, except as required by law. This press release contains references to Non-GAAP financial measures including Adjusted OIBDA (Operating Income Before Depreciation and Amortization expense, adjusted to exclude non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case). A reconciliation of these measures is available in this press release and on the investor page of the Company’s website at www.ncm.com. NATIONAL CINEMEDIA, INC Non-GAAP Reconciliations Unaudited Adjusted OIBDA and Adjusted OIBDA Margin Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA") and Adjusted OIBDA margin are not financial measures calculated in accordance with GAAP in the United States. Adjusted OIBDA represents operating income before depreciation and amortization expense adjusted to also exclude non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case. Our management uses this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share-based compensation programs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 Case, interest rates, debt levels or income tax rates. Adjusted OIBDA margin is calculated by dividing Adjusted OIBDA by total revenue. Our management uses this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share-based compensation programs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 Case, interest rates, debt levels or income tax rates. A limitation of both of these measures, however, is that they exclude depreciation and amortization, which represent a proxy for the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in NCM LLC’s business. In addition, Adjusted OIBDA and Adjusted OIBDA margin have the limitation of not reflecting the effect of the Company’s non-cash share-based compensation costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and the Chapter 11 Case. Adjusted OIBDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should it be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to Adjusted OIBDA, and operating margin is the most directly comparable GAAP financial measure to Adjusted OIBDA margin. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in NCM LLC’s debt agreement. The Company has not provided a reconciliation of the forward-looking non-GAAP Adjusted OIBDA measure to forward-looking GAAP operating income due to the inability to predict the amount and timing of impacts outside of the Company’s control on certain items, including the timing of revenue and charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant and are difficult to reasonably predict. Accordingly, a reconciliation of this non-GAAP measure is not available without unreasonable effort. The following table reconciles the Company's operating loss and operating margin to Adjusted OIBDA and Adjusted OIBDA margin for the periods presented (dollars in millions): Adjusted Net Loss and Net Loss per Share Adjusted net loss and adjusted net loss per share are not financial measures calculated in accordance with GAAP in the United States. Adjusted net loss and adjusted net loss per share are calculated using reported net loss and net loss per share and exclude workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs, advisor fees related to the Cineworld Proceeding and the Chapter 11 case and loss on re-measurement of the payable to ESA Parties under the tax receivable agreement. Our management use these non-GAAP financial measures as an additional tool to evaluate operating performance. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to a method used by the Company’s management and helps improve their ability to understand the Company’s operating performance. Adjusted net loss and adjusted net loss per share should not be regarded as alternatives to net loss and net loss per share or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that net loss and net loss per share are the most directly comparable GAAP financial measures. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies. The following table reconciles as reported net loss and net loss per share to adjusted net loss and adjusted net loss per share excluding workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs, advisor fees related to the Cineworld Proceeding and the Chapter 11 case and loss on remeasurement of the payable to ESA Parties under the tax receivable agreement for the periods presented (dollars in millions): View source version on businesswire.com: https://www.businesswire.com/news/home/20260512431532/en/ Contacts INVESTOR CONTACT: Chan Park, [email protected] MEDIA CONTACT: [email protected]