RDI

This article first appeared on GuruFocus. Revenue: Q2 2026 consolidated revenue increased by $6.5 million to $66.9 million quarter-over-quarter. Net Income: Q2 2026 net income attributable to Reading International, Inc. was $2.3 million, a 185% increase from a loss of $2.7 million in Q2 2025. Earnings Per Share (EPS): Basic earnings per share for Q2 2026 increased by $0.22 to $0.10, compared to a basic loss per share of $0.12 in Q2 2025. Operating Income: Q2 2026 global operating income improved by $4.6 million to $7.5 million, compared to $2.9 million in Q2 2025. Adjusted EBITDA: Q2 2026 adjusted EBITDA increased by $5 million or 79% to $11.3 million, compared to $6.3 million in the same period last year. Global Cinema Revenue: Q2 2026 global cinema revenue increased 11% to $63 million. Global Cinema Operating Income: Q2 2026 global cinema operating income improved by 68% to $9.2 million. Australian Cinema Revenue: Q2 2026 Australian cinema revenue increased 31% to $30 million, setting a record for the highest quarter ever. Australian Cinema Operating Income: Q2 2026 Australian cinema operating income increased 91% to $5.6 million. New Zealand Cinema Revenue: Q2 2026 New Zealand cinema revenue decreased by 2% to $3.5 million. New Zealand Cinema Operating Income: Q2 2026 New Zealand cinema operating income improved by 61% to $387,000. US Cinema Revenue: Q2 2026 US cinema revenue decreased slightly by 3% compared to last year. US Cinema Operating Income: Q2 2026 US cinema operating income improved by 40% compared to the same period last year. Global Real Estate Revenue: Q2 2026 global real estate revenue increased by 4% to $4.9 million. Global Real Estate Operating Income: Q2 2026 global real estate operating income increased by 7% to $1.6 million. Australian Real Estate Revenue: Q2 2026 Australian real estate revenue increased by 1% to $2.8 million. US Real Estate Revenue: Q2 2026 US real estate revenue increased by 11% to $1.9 million. US Real Estate Operating Income: Q2 2026 US real estate operating income increased by 106% to $183,000. Cash and Cash Equivalents: As of June 30, 2026, cash and cash equivalents were $5.7 million. Total Outstanding Borrowings: As of June 30, 2026, total outstanding borrowings gross of deferred financing costs were $183.1 million. Total Assets: As of June 30, 2026, total assets were $429.4 million. F&B Spend Per Person (Australia): Australian cinema division established an F&B spend per person record of AUD8.37. F&B Spend Per Person (New Zealand): New Zealand cinema division established an F&B spend per person record of NZD7.22. F&B Spend Per Person (US): US team delivered a Q2 2026 F&B spend per person of $8.97. Average Ticket Price (Australia): Q2 2026 Australian cinema circuit ATP of AUD16.89 was the highest quarter ever. Average Ticket Price (New Zealand): Q2 2026 New Zealand cinema circuit ATP of NZD15.58 set a record for its highest quarter ever. Loyalty Program Members: Over 625,000 members in Australia and New Zealand, a 27% increase over the first quarter of this year. Paid Memberships (Australia and New Zealand): Over 41,000 paid memberships signed up in Q2 2026, a 72% increase over last quarter. US Rewards Members: 41,000 rewards members and 2,500 paid members signed up in Hawaii and 3 Reading Cinemas since launch. Angelika Membership Program: Approximately 190,000 members for 8 Angelika branded theaters. Cinema Count: Reduced global cinema count by nine theaters since the pandemic started in early 2020. Portfolio Occupancy Rate: Australian and New Zealand real estate portfolio occupancy rate of 98%. Warning! GuruFocus has detected 7 Warning Signs with RDI. Is RDI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reading International Inc (NASDAQ:RDI) achieved its best quarterly operating income since Q2 2018, with Q2 2026 operating income of $7.5 million, a 159% improvement year-over-year. The Australian cinema circuit delivered record quarterly revenue in both local currency and US dollars, with a 31% increase in revenue and a 91% increase in operating income. Global F&B spend per person reached record highs in Australia and New Zealand, while the US outperformed publicly traded competitors with an $8.97 F&B SPP. Loyalty program membership surged, with over 625,000 members in Australia/New Zealand (up 27% quarter-over-quarter) and 41,000 paid memberships signed in Q2 2026. The company successfully reduced its cinema portfolio by closing nine loss-making theaters without early termination fees, improving net income and long-term profitability. Strong film slate in Q2 2026, including titles like 'Michael' and 'The Super Mario Galaxy Movie', drove increased attendance and revenue, with a promising lineup expected for the rest of 2026. Reading International Inc (NASDAQ:RDI) continues to face high debt levels, with total borrowings of $183.1 million and a need to extend or modify several loan agreements, including the Santander loan and Bank of America facility. The sale of the Cinema 1, 2 & 3 property, a key part of the debt reduction strategy, is still not finalized, with only a preferred buyer identified and no executed contract yet. The Napier property sale in New Zealand is on hold due to unforeseen issues with the car park owner and buyer-requested changes, making the transaction less attractive and potentially delaying cash inflows. US cinema revenue decreased by 3% in Q2 2026, impacted by the closure of two San Diego theaters and a weaker slate of art house titles at venues like the Angelika New York. The company's liquidity remains tight, with cash and cash equivalents of only $5.7 million, and it has had to defer principal payments and modify covenants with lenders to manage cash flow. The ongoing legal dispute over the Reading Viaduct in Philadelphia remains unresolved, with no settlement offers or condemnation filings, and the appeal process is expected to continue through at least 2026. Q: What is the current status of the Santander Minetta and Orpheum refinancing, and should shareholders expect a normal multiyear refinance or another short extension?A: Gilbert Avanes (CFO) stated that while the company has a good long-term relationship with Santander, the bank's focus has shifted to other real estate classes and they would like to move on. Reading believes it has a deal with a replacement lender and is currently in the due diligence and administrative process. Santander has provided an extension to allow for this process. While no assurance can be given, the company expects a new arrangement to be in place in the next few months. Q: What is Reading International's current NOL, and will it protect from capital gains taxes on real estate assets to be sold?A: Gilbert Avanes (CFO) explained that Reading currently has a potential NOL of approximately $40 million tax-affected, though a reserve has been established for GAAP purposes. To the extent there are capital gains in the US, the company can reduce up to 80% of its taxable gain through the use of NOLs, except in California, which has enacted limitations on NOL use. Current operating losses would be first 100% applied against any such gains. Q: Assuming the Cinema 1,2,3 sale is completed, how does management expect to prioritize the net proceeds?A: Ellen Cotter (CEO) stated that the company will first pay down the Valley National debt of about $19.7 million, which carries an annual interest expense of about $2 million. They will also pay down the remainder of the Bank of America, Bank of Hawaii debt of approximately $5.4 million. After that, funds may be deployed to further reduce global debt, renovate key cinemas, and pay down other operating accruals. Q: What specifically is the car park owner issue regarding the Napier sale, and does the existing buyer remain committed?A: Ellen Cotter (CEO) revealed that there is currently no deal on the table acceptable to the company. The potential buyer requested changes to the draft purchase and sale agreement and leaseback arrangement, and a change in ownership of the car park caused further documentation requests. The deal is not material to the company's overall liquidity strategy, and management is evaluating whether the cash flow from the cinema and tenants outweighs the potential sale proceeds. Q: What is the current procedural status of the STB appeal regarding the Philadelphia Viaduct, and have any formal offers been made?A: Ellen Cotter (CEO) confirmed the code violation case was settled for a nominal sum. The STB case continues procedurally with an appeal at the DC Circuit Court, with independent parties filing intervening briefs in the company's favor. No offers have been made by the City of Philadelphia or related parties. While adjoining Viaduct parcels could be separately monetized, it is premature to review them until a more defined path with the city or another developer is established. Q: What drove the record-breaking Q2 2026 results, and what is the outlook for the remainder of the year?A: Ellen Cotter (CEO) attributed the strong results to a much stronger movie slate, including titles like Michael, The Super Mario Galaxy Movie, and Toy Story 5, coupled with a laser focus on strategic priorities. The Australian cinema circuit delivered its highest quarter total revenue ever. Looking forward, the company is excited about the momentum for Q3 and Q4, with titles like Spider-Man: Brand New Day, The Odyssey, Avengers: Doomsday, Dune 3, and Jumanji 3, and believes 2026 is poised to be the best post-pandemic box office year to date. Q: How is the company addressing the disconnect between increased operating costs and attendance that remains below pre-pandemic levels?A: Ellen Cotter (CEO) explained that the company is working with cinema landlords to realign occupancy costs with economic realities. Since the pandemic, the company has reduced its global cinema count by nine theaters to eliminate loss-making locations, none of which were profitable or led to early termination fees. While closing these cinemas reduced gross revenue in the short term, it improves net income by eliminating locations that were reducing profitability. Q: What are the highlights of the F&B and loyalty program initiatives?A: Ellen Cotter (CEO) noted that the Australian and New Zealand cinema divisions established F&B spend per person records, with the US team outperforming the industry at $8.97. The loyalty programs have seen significant growth, with over 625,000 members in Australia and New Zealand, a 27% increase over Q1, and over 41,000 paid memberships signed up in Q2, a 72% increase. In the US, the new rewards and premium membership programs have signed up 41,000 rewards members and 2,500 paid members. Q: What is the status of the 44 Union Square leasing and potential refinance?A: Ellen Cotter (CEO) stated that while Petco continues to operate, there are still 4 floors left to lease. Newmark has been reengaged and has toured a range of potential tenants focusing on wellness, education, entertainment, and co-working. The Union Square office market remains stronger than other areas of Manhattan. Regarding a potential refinance, the company needs to wait to see the final makeup and credit status of the tenant or tenants to occupy the remaining floors before taking a position. Q: What are the plans for the Wellington, New Zealand cinema renovation?A: Ellen Cotter (CEO) detailed that the most important investment over the next couple of years will be the complete renovation of the Reading Cinema in Wellington. Plans include luxury recliners in all auditoriums, at least two premium large screen concepts like TITAN LUXE, at least three Gold Lounge auditoriums with waiter service, and an upgraded food and beverage offer. The landlord is expected to complete seismic upgrades in the next six to nine months, allowing for a projected launch in late 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Monday, Aug. 17, 2026 at 8:00 p.m. ET Executive Vice President, Chief Financial Officer and Treasurer - Gilbert Avanes President and Chief Executive Officer - Ellen Cotter Gilbert Avanes: Thanks for joining the 2026 Second Quarter Earnings Call for Reading International, Inc. My name is Gilbert Avanes, I'm the company's Chief Financial Officer and Treasurer. Joining me today is Ellen Cotter, our President and CEO. After I run through the normal caveats, I'll start by presenting the results from our 2026 second quarter. I'll also talk about our balance sheet, liquidity and provide a summary of our debt position. Then I'll turn the call over to Ellen, who will discuss our business strategy. After that, we'll address some specific questions that came in from our stockholders, understanding that we have tried to weave answers to many stockholders' questions into our prepared remarks. So let me start with running through the usual caveats. Some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on our current expectations and assumptions that are subject to a number of risks and uncertainties. We undertake no obligation to update any forward-looking statements. Actual results could differ materially. Please refer to our Form 10-K and 10-Q, including the risk factors. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our earnings release issued August 14, 2026, which has been released publicly and is available to the public through the Investor Relations tab on our website at readingrdi.com. With that behind us, I'll go over the results from Q2 2026 and the first 6 months of 2026, which we are pleased to announce were both stronger than prior year period. We set multiple records this quarter, which we will discuss in more depth later in our call. We believe it is significant that our second quarter cinema segment operation earnings were the best quarter since Q2 2019. And on a total company level, we had the best quarter of operations since Q2 2018. Our Q2 2026 consolidated revenue increased by $6.5 million to $66.9 million quarter-over-quarter. A few factors drove these improvements. The film slate for the quarter in Australia proved to be a stronger lineup compared to Q2 2025, leading to increased attendance and [ FP&A ] revenues. Increased real estate revenues in U.S. led by improvements in live theater revenues, primarily as a result of improved programming at our Minetta Lane Theatre. And the strengthening of the Australia foreign exchange rate against the U.S. dollar. Historically, around 50% of our revenue has been generated in Australia and New Zealand. And during the second quarter of 2026, that rose slightly with 53% of our revenue being generated internationally. Due to the Australia dollar strengthening against the U.S. dollar by 11% in the second quarter 2026, this positively impacted our results. Consolidated revenue for the 6 months ended June 30, 2026, increased by $11.5 million to $112 million when compared to the same period of 2025. These increases are due to increased attendance in Australia as a result of overall stronger movie slate, including titles such as Michael, the Super Mario Galaxy movie, The Devil Wears Prada 2, Project Hail Mary and Toy Story. Increased revenue in our U.S. and Australia real estate division and the strengthening of our Australia and New Zealand currency by 11% and 1%, respectively. At $2.3 million, our Q2 net income attributable to Reading International, Inc. increased by 185% from a loss of $2.7 million in Q2 2025. This was primarily due to improved segment result as a result of strengthened performance of our Australia cinema and our U.S. real estate, offset by a Q2 2025 gain on sale of assets, which did not repeat in Q2 2026. Net loss attributable to Reading International, Inc. for the 6 months ended June 30, 2026, decreased by $1.5 million from a loss of $7.4 million to a loss of $5.9 million when compared to the same period in prior year. These results were primarily due to strengthened cinema and property segment results, a $1.5 million savings in G&A, a $0.5 million savings in interest expense and a $2.4 million increase in other income. These improvements for both quarter-to-date and year-to-date were assisted by the strengthening of our Australian dollars, but are partially offset by increased tax expenses. Our basic earnings per share for Q2 2026 increased by $0.22 to a basic earnings per share of $0.10 compared to a basic loss per share of $0.12 for Q2 2026 (sic) [ 2025 ]. The increase is due to the same factors as our increase in our net income. Basic loss per share decreased by $0.07 to a loss of $0.26 compared to a loss of $0.33 for the first 6 months of 2025. Again, these improved results were due to the same factors as our improvements in our 6 months ended June 30, 2026, net income. Our Q2 2026 global operating income of $7.5 million improved by $4.6 million compared to an operating income of $2.9 million in Q2 2026 (sic) [ 2025 ]. At $11.3 million, our Q2 2026 adjusted EBITDA income increased by $5 million or 79% compared to an EBITDA income of $6.3 million for the same time period last year. For the 6 months ended June 30, 2026, our adjusted EBITDA increased by $1.2 million to $10.4 million compared to the same prior year period. These results were primarily the result of improved operating performance as opposed to asset sales. Turning now to our financial position. As of June 30, 2026, our total assets were $429.4 million compared to $434.9 million on December 31, 2025. This decrease was primarily driven by a $4.9 million decrease in cash and cash equivalents from which we funded our ongoing business operations. Our total asset base remained largely consistent within which in February 2026, we classified our Cinemas 1,2,3 property as held for sale. As of June 30, 2026, our total outstanding borrowing gross of deferred financing costs were $183.1 million compared to $185.1 million on December 31, 2025. Our cash and cash equivalents as of June 30, 2026, were $5.7 million, which was slightly increased over the prior quarter. So far, in 2026 and over the past year, we have worked with our key real estate lenders to extend maturity dates, modify principal repayment dates and adjust existing covenants. On February 6, 2026, we executed an amendment to defer a principal payment relating to our 44 Union Square loan, which was since paid on March 13, 2026. On February 27, 2026, we executed an amendment to modify the principal repayment schedule of our Bank of America, Bank of Hawaii facility. On March 31, 2026, we executed an amendment to reduce our NAB loan minimum liquidity requirements for a limited defined period in 2026. On June 12, 2026, we extended the maturity date of our Bank of America facility to December 21, 2026. On August 11, 2026, we extended the maturity date of our Santander loan to October 1, 2026. Now let me turn it over to Ellen, who will give us an overview of the business in the second quarter of 2026. Ellen Cotter: Thanks, Gilbert, and welcome, everyone, to today's call. We were so pleased with our results for the second quarter of 2026. A much stronger movie slate, coupled with a laser focus by our team on strategic priorities led the company to achieving several post-pandemic milestones. At $66.9 million, Reading's Q2 2026 total revenue was the highest second quarter in the last 6 years or since Q1 2019. Our global cinema division delivered an 11% increase over last year and the highest quarterly global cinema revenue since the fourth quarter of 2019. Our Australian cinema circuit generated a 31% increase over the same quarter of the prior year and a 52% increase from the first quarter of 2026. Also, our Australian cinema circuit delivered their highest quarter total revenue ever in both local currency and U.S. dollars and their highest quarter segment revenue ever. At $7.5 million, Reading's second quarter operating income improved to 159% over the same quarter last year and was the best quarter result since Q2 2018. And on a total segment operating income basis, we reported $10.7 million, which increased 55% over the same quarter last year and was the best result in the last 8 years or since Q2 2018. If you exclude the sizable asset sales or large gains on sale that occurred in the second quarter of 2021, at $11.3 million, our Q2 2026 EBITDA was the best second quarter result in the last 7 years. At $4.9 million, our Q2 2026 global real estate revenues increased by 4%, primarily due to the improved performance of our U.S. live theaters. And note, our global portfolio now reflects the 2025 sale of our assets in Townsville, Australia and Wellington, New Zealand. While the sale of Cannon Park eliminated future revenues and costs, the sale of Wellington primarily for this period removed holding costs. Our U.S. real estate division delivered its highest second quarter revenues ever due to a strong quarter from our live theater division. During the second quarter, our commercial theaters were treated to a diverse and powerful film lineup. Audiences from around the world embraced original movies like Michael, Backrooms and Obsession, and audiences returned to support some of the industry's strongest film franchises like the Super Mario Galaxy movie, The Devil Wears Prada 2 and Toy Story 5. Not only do we enjoy a superior film lineup, our execution on key strategic initiatives across the company's cinema divisions generated improved operations. We continued expanding our F&B programs across our cinema divisions with a focus on our movie theme menus and merchandise. We believe our attendance was supported by improvements to our global loyalty programs, which I'll touch on shortly. Across our global cinema circuit, we're continuing to work with our landlords to reduce our overall occupancy cost to reflect the fact that attendance has not returned to pre-pandemic levels. And at the same time, our labor and operating expenses for the most part have increased across the board. And in certain markets like Hawaii, increases in labor have been significant. Looking forward, we're excited about the momentum for the third and fourth quarters of this year. During the third quarter, our global theaters are still enjoying the spectacular box office from Spider-Man: Brand New Day and The Odyssey. And the December lineup looks equally fantastic with 3 highly anticipated franchise films, Avengers: Doomsday, Dune 3 and Jumanji 3. Along with industry analysts and press, we continue to believe that 2026 is poised to be the best post-pandemic box office year to date. With respect to our balance sheet, I'll reiterate our Board has directed the team to reduce Reading's overall debt position. Executing on this priority, we're actively working on the sale of our Cinema 1,2,3 property, which I'll touch on in a few minutes. Despite the anticipated sale of the Cinemas 1,2,3, we remain fully committed to our 2-business, 3-country strategy, which we believe will continue to serve us well into the future. The founder of our company put into place structures that would assist us surviving market downturns such as those triggered by the pandemic and the 2023 Hollywood strikes. We've been able to use that structure to monetize properties, which were in good markets and command a good prices, but which were unlikely to appreciate in value without material capital investment. This has supported our overall operations and helped us reduce our debt load. Given what we believe to be the current trajectory of the cinema industry, we believe our founder strategy has worked. We've been able to continue our operations to continue to support our workforce, continue to service our customers and working with our lenders, landlords and vendors on a cooperative basis to meet our obligations to third parties and retain our assets -- retain our key assets. Our anticipated sale of our Cinema 1, 2 & 3 and Newberry Yard assets will assist us in further paying down debt and provide seed money for the upgrading of our cinemas. In summary, while we've monetized certain real estate assets over the last 5 years, these decisions were made strategically to address liquidity needs resulting from the pandemic, the unprecedented 2023 Hollywood strikes and historic increases in interest rates and inflation. As I said, we focused on assets that were either generating negative cash flow or after debt service did not materially contribute to cash flow, and that we believed had reached their highest reasonably achievable value without significant additional capital investment. We believe we maintain a strong portfolio of cinema and real estate assets, most of which currently generate positive cash flow or expected to do so in the future. We've also successfully navigated the significant challenges of the past 6 years without receiving one penny of U.S. government pandemic assistance, pursuing debtors' rights remedies or diluting our stockholders. Now let's turn to our global cinema business. As we just mentioned, at [ $63 million ], our global cinema revenue increased 11%. At $9.2 million, our global cinema operating income improved by 68% and represented the best second quarter result for this metric for the last 7 years or since Q2 2019. As we've said, the stronger second quarter cinema performance was fueled primarily by our Australian cinema division, the execution of our key strategic initiatives and the strength of the U.S. -- strengthening of the Australian dollar. And these revenue results were achieved despite the elimination of revenue from the closure of 2 San Diego cinemas, one that closed on June 1, 2026, and another in April of '25. The Q2 2026 global movie slate delivered for Australian cinema operations, 4 titles grossed over $2 million in that circuit for the second quarter of '26. Michael, the Super Mario Galaxy movie, The Devil Wears Prada 2 and Toy Story 5, compared to only 2 films in the second quarter of 2025, A Minecraft Movie and Lilo & Stitch. Additionally, the quarter was further supported by strong holdover grosses from Project Hail Mary, Backrooms and Obsession. Let me highlight a few of those key 2026 strategic initiatives that I referred to. Our F&B program continues to be an area of focus. When you include only periods when each of our circuits were fully operational, i.e., excluding pandemic closure periods at AUD 8.37, that's in Australian dollars and NZD 7.22 in New Zealand, our Australian and New Zealand cinema divisions established F&B spend per person records, with New Zealand achieving their highest quarter ever and Australia achieving their highest second quarter ever, which was also the second highest quarter level ever. These strong F&B results were supported by the continued sale of movie merchandise and the development of movie theme menus. I'll note in the last few months, Reading Cinemas in Australia has launched a new web page dedicated to Movie Merch. At $8.97, our U.S. team outperformed the industry and delivered a higher second quarter F&B SPP than our publicly traded competitors. The Q2 2026 F&B SPP represented our third highest quarter ever for that metric. We believe we did not achieve a quarterly record because of the continued growth in our popular discount Tuesday program, which features discounted concession offers and the expansion of our membership program, which provides 5% cash back on F&B purchases and an additional 10% discount for premium members. Due to the very strong 6-month movie lineup and the focus of our global teams, all 3 countries achieved their highest June year-to-date ever for F&B SPP. We're also continuing to engage our guests and attract new guests through our new and improved loyalty programs, both free-to-join rewards and paid membership programs. Our loyalty programs are an important tool for encouraging guest engagement and improving guest experience in our theaters, and we continue to look for creative ways to attract more members and enhance the quality of their visits. In the fourth quarter of 2024, we revamped and relaunched our free-to-join Reading Rewards program in Australia and New Zealand to provide better perks and savings. As of the end of the second quarter 2026, we have over 625,000 members, a 27% increase over the first quarter of this year. With respect to our paid memberships in Australia and New Zealand for both our Reading and Angelika brands, we signed up over 41,000 paid members -- memberships in Q2 2026, a 72% increase over last quarter. In the U.S., through December 2025 and January 2026, we launched a new free-to-join rewards and premium membership program in our 6 consolidated theaters in Hawaii and 3 Reading Cinemas. Since that launch, we've signed up 41,000 rewards members and 2,500 paid members. In the U.S., our free-to-join Angelika membership program has approximately 190,000 members for our 8 Angelika branded theaters. We expect to launch our premium Angelika monthly membership before the end of 2026. A key initiative for our global executive teams has been working with our cinema landlords to realign occupancy costs with the economic realities of recent years. Operating costs in almost every category have materially increased, while attendance continues to remain below pre-pandemic levels. And we have limited headroom to raise ticket and food and beverage prices. The lion's share of any increase in our ticket prices generally goes to the film companies. In this regard, we're in the same boat as the rest of the industry. Along these same lines, since the pandemic started in early 2020, we've reduced our global cinema count by 9 theaters to eliminate loss-making locations. None of these cinemas were profit-making, none led to early termination or early exit fees. And upon review, we've concluded that it was unlikely they could return to profitability without material capital expense, if at all. In all but one case, these locations have either been converted to other uses or remain dark. While closing these loss-making cinemas reduced gross revenue in the short term, it improves net income by eliminating locations that were reducing our profitability, benefiting our bottom line both now and over time. Before we look at each of our Australian, New Zealand and U.S. cinema divisions, let me mention another milestone achieved by each global cinema division. During Q2 2026, each cinema division delivered the highest cash flow pre-occupancy per capita ever achieved for any quarter, which we believe reflects the team's focus on revenue maximization and expense minimization. This disciplined approach will serve us well into the future as our box office continues to improve. Now let's take a closer look at the 2026 second quarter results for our U.S. cinemas. While our second quarter cinema revenue decreased slightly by 3% compared to last year, our operating income improved by 40% compared to the same period last year. The slight decrease in revenue is attributable to the strength of the prior year second quarter titles, Lilo & Stitch and A Minecraft Movie, each of which overperformed in our cinemas in Hawaii, which over the last 2 years has averaged about 35% of our U.S. cinema revenue. The closing of our 2 theaters in San Diego, which impacted these revenue results as well, the June 2026 closure of the Reading Cinema at Grossmont and the April 2025 closure of the Reading Cinema at the Town Square Mall. The second quarter 2026 underperformance of our dedicated art houses like the Angelika New York due to a weaker slate of key art titles also impacted the U.S. cinema total cinema revenues. Regarding the U.S. cinema CapEx spend in 2026. During the first quarter, we completed a major renovation of our Reading Cinemas at the Valley Plaza Mall in Bakersfield, which included the addition of a TITAN LUXE screen with Dolby ATMOS and luxury recliner seats, adding recliners to our IMAX screen and converting 8 other screens to recliners. Following the completion of this renovation and also assisted by better film availability, our Q2 2026 total revenues at this cinema have increased by 43%, which is well in excess of our total U.S. cinema second quarter average. We are working on a seat refurbishment plan to improve our theater seats that were damaged by mandated disinfectant during the pandemic. We've commenced seat improvements at 2 of our lead theaters in Hawaii and expect all of the seats in those theaters to be completed in the third quarter of '26. This renovation project was funded through cash flow as opposed to outside sources. And through 2026 and into 2027, we expect to complete the seat improvements across our U.S. circuit, in some cases, assisted by landlord contributions. Understanding that our audiences are looking for premium experiences, we're also exploring the opportunity with leading vendors to add premium concepts to our theaters, including improved projection and sound and experiential seating concepts. Turning to our cinemas in Australia and New Zealand. Our Australian circuit had a phenomenal quarter. In the second quarter of '26, our Australian cinema revenue increased 31% to $30 million, which set a record for our Australian circuit for the highest quarter ever. And our operating income increased 91% to $5.6 million from an operating income of $2.9 million. Our Q1 (sic) [ Q2 ] 2026 New Zealand cinema revenue decreased by 2% to $3.5 million, but our operating income improved by 61% to $387,000 from an operating income of $241,000. During the second quarter of '26, our international cinemas delivered average ticket prices that established record highs. Our Australian cinema circuit second quarter ATP of AUD 16.89 was the highest quarter ever. Our New Zealand cinema circuit second quarter ATP of NZD 15.58 also set a record for its highest quarter ever. With respect to our 2026 international CapEx spend, our most important investment over the next couple of years will be the complete renovation of our Reading Cinema in Wellington, New Zealand. We believe strongly in the Wellington market as a strong movie going town, which is also now home to some of the most creative visual effects communities in the world, also with being the home of best-in-class filmmakers, James Cameron and Peter Jackson. Our renovation plans include luxury recliners in all auditoriums, the creation of at least 2 premium large screen concepts such as TITAN LUXE, the creation of at least 3 elegant Gold Lounge auditoriums to feature waiter service, an overall upgraded food and beverage offer and the creation of an elevated hotel-like lobby lounge. We anticipate that our landlord will be completing their seismic upgrade of the building in the next 6 to 9 months, which would then allow us to complete our fit-out in time for a projected launch in late 2027. Our optimism for the cinema is supported by the fact that prior to its closure for seismic issues in January of 2019, this theater was historically always one of our top 5 global cinemas as well as being among the top grossing cinemas in New Zealand. Next, let's turn to our global real estate business, which on a segment reporting basis includes not only our third-party rental income, but also our live theater business in New York City and our intercompany cinema rents. Starting with the second quarter of 2026 global real estate results and compared to the same period in 2025. At $4.9 million, our second quarter 2026 global real estate total revenue increased 4%. And at $1.6 million, our second quarter total operating income increased by 7%. Breaking it down by division for the second quarter 2026 and compared to the same period last year, with respect to Australia, our real estate revenue increased by 1% to $2.8 million, and our operating income of $1.3 million remained relatively flat. At $212,000, our New Zealand real estate revenue remained flat. Our Q2 2026 New Zealand real estate operating income of $53,000 also remained flat. And our second quarter 2026 U.S. real estate revenue of $1.9 million increased by 11% and our operating income of $183,000 increased by 106%. With respect to our Australian and New Zealand portfolio, as of June 30, 2026, due primarily to our asset monetizations in Wellington and Townsville, the number of third-party tenants in our combined Australian and New Zealand real estate portfolio reduced to 58 and is now primarily made up of tenants at Newmarket Village in Brisbane and the Belmont Common in Perth. The quality of our remaining tenants is strong with a portfolio occupancy rate of 98%. Our Newmarket Village property continues to thrive. Quarterly percentage rent received from third-party tenants has increased quarter-over-quarter with major tenants achieving percentage rent. In addition, we're aware that a major tenant in our Australian portfolio may be considering a full refurbishment investment in their space in the near future. Now turning to our U.S. real estate business. Regarding our live theater segment, our second quarter 2026 was stronger than last year, driven by continued demand for the Orpheum Theater following the departure of STOMP. The theater hosted performances of 11.00 to midnight, a theatrical dance experience starring TikTok viral sensations Cost n' Mayor, which was extended into the second quarter of 2026. During the second quarter of '26, the Minetta Lane Theatre also hosted several critically acclaimed productions that were well received by audiences, including 2 shows starring Hugh Jackman, Sexual Misconduct of the Middle Classes and Newborn. Additionally, audiences at the Minetta Lane enjoyed What Happened Was. Turning to our 44 Union Square property. While Petco continues to delight pet parents across New York City with its award-winning retail store, we still have 4 floors left to lease at 44 Union Square. As previously reported, we reengaged Newmark, the same leasing team that brought the Petco deal to us and was completed by the team in January of 2022. While the summer months historically are not the strongest months for New York City commercial leasing activity, the pace of leasing tours conducted by Newmark even during the dead summer months compared to earlier brokers is a marked improvement. As previously reported, Newmark has toured a range of potential tenants whose uses focus on wellness, education, entertainment and co-working. Newmark's enthusiasm for our space coincides with positive industry reporting from community and brokerage houses who focus on the Union Square area. For instance, the Union Square Partnership, a community-based organization, reported in July of 2026 that the Union Square office market remains stronger than other areas of Manhattan with a 12.9% availability rate versus a 14.3% Manhattan average. And many prime office buildings have reached 100% occupancy this year. The report further noted that storefront occupancy improving over last year is at 90.1% with the Union Square partnership bid boundary as of July 2026. We received questions about a potential refinance upon the successful leasing of the remaining floors at 44 Union Square. Other potential lenders have toured the space. However, we need to wait to see the final makeup and credit status of the tenant or tenants to occupy the remaining floors to take a position on the refinance. We also received a number of stockholder questions about the sales process for the Cinema 1, 2 and 3 building in New York City across the street from Bloomingdale's on the Upper East side. Through Newmark, again, we generated significant buyer interest in the property. We've narrowed the field to a preferred buyer, a residential developer well experienced in local redevelopment and are currently working with that buyer on definitive documentation. While no assurances can be given, we expect that a contract of sale should be executed shortly with the closing in the early fourth quarter. If this particular deal is not consummated, we would expect Newmark to pivot relatively easily to another buyer. We believe that the upper Manhattan market for redevelopment assets like the Cinema 1, 2 and 3 continues to improve. Our Newberry Yard property in Williamsport, Pennsylvania remains classified as held for sale. We've been in recent communications with a few parties interested in our property. Each of these groups is a strategic buyer who want to use our 23-acre parcel for industrial and/or rail-tied uses. We continue to believe that a strategic buyer is the best resolutions for this property given its access to established rail infrastructure. However, this means that the process is taking longer than a process looking for a sale to a buyer who will not add value for the benefits of this infrastructure. The property is unleveraged and has a relatively low carrying cost. So we continue to believe that our approach is the best approach to maximize the value of this asset. In summary, our Real Estate segment is stable and has room for growth as we lease up the remaining space at 44 Union Square. We're bullish on our cinema segment for a variety of reasons, including the quality of the remaining 2026 movie slate. Moviegoers and studios are rediscovering the joint economic benefits of the cinema release. Studios, including Universal and Paramount have recently publicly confirmed their commitments to a 45-day theatrical window. We've been successful in culling our cinema portfolio to remove unprofitable cinemas without the payment of fees or penalties. We've continued to actively manage occupancy and operating costs across our cinema portfolio, supporting the long-term sustainability and performance of our cinemas. As our liquidity improves, we're dedicated to upgrading our key cinemas in our portfolio. And we've been successful in the execution of strategic priorities like F&B and loyalty expansion to drive higher cinema attendance. With that, I'm going to wrap up my business report. We thank you all again for listening, and thank you to our stockholders for sending in questions to the Investor Relations e-mail. But as usual, in addition to addressing many of your questions in the prepared remarks, we've selected a few additional questions to offer further insights. So I'll start the Q&A. Ellen Cotter: We've got a few questions for Gilbert. The first question, why was the Santander Minetta and Orpheum refinancing not completed before the June 1 maturity? What remains unresolved? And is Reading seeking a normal multiyear refinance? Or should shareholders expect another short extension? Gilbert? Gilbert Avanes: We have a good long-term relationship with Santander, but the bank's focus is now on other real estate classes. While this loan has been on their books for a long time, they would like to move on. We believe that we have a deal with a replacement lender and are in a due diligence and administrative process with that lender. As we go through these steps and have needed additional time, Santander has provided an extension. These assets have a strong cash flow, and though we can provide no assurance that we'll consummate a refinance, we do expect a new arrangement to be in place in the next few months. Ellen Cotter: Great. Thanks, Gilbert. Let me give you another question. What is Reading International's current NOL? Will such NOLs protect from capital gains taxes on real estate assets to be sold? Gilbert Avanes: Tax issues are complex. Accordingly, the following is a highly generalized and summary in nature. Basically, Reading currently has a potential NOL of approximately $40 million tax affected. However, for GAAP accounting purposes, we have established a reserve against this deferred tax benefit of $40 million, reflecting our annual loss recorded in recent years. To the extent we have capital gains in the U.S., we can reduce up to 80% of our taxable gain through the use of NOLs, except for in California. Of course, any current operating losses would be first 100% applied against any such gains. California has enacted certain limitations on the use of NOLs and since reported income on a combined basis with our U.S. subsidiaries, we will not get the full benefit of such NOLs with respect to our California state income tax. Let me address some questions to Ellen. Cinemas 1,2,3 proceeds. Assuming the sale is completed, how does management expect to prioritize the net proceeds remaining after repayment of property mortgage and transaction expenses? Go ahead. Ellen Cotter: As our stockholder noted, we'll first pay down the Valley National debt of about $19.7 million. Currently, that loan carries an interest expense of about $2 million per year. We'll also pay down the remainder of the Bank of America, Bank of Hawaii debt of approximately $5.4 million that carries an annualized interest expense of about $650,000. After that, among the items that we may deploy our funds to, they include, without limitation, a further reduction of our global debt to further reduce our overall interest expense, renovation of certain key cinemas and the paydown of other operating accruals. Gilbert Avanes: Okay. At Q1, Napier was under contract for sale with an expected cinema leaseback. The Q2 10-Q now says, the sale is on hold because of unforeseen issues involving the owner of the car park that the cinema leases. What specifically is the car park owner issue? What must happen for the sale to proceed? Does the existing buyer remain committed and have timing, economics or leaseback terms changed? Ellen? Ellen Cotter: Okay. At the present time, we don't have a deal on the table for the sale of this asset that's acceptable to us. Our potential buyer has requested changes to the draft purchase and sale agreement and the leaseback arrangement, which have caused us to press pause for the moment. A change of ownership of the car park that the cinema leases also occurred, which caused the buyer to request further changes in our documentation. Those changes from our perspective contributed to the overall transaction not being as attractive. In terms of U.S. dollars, the contemplated deal is not material to the company's overall liquidity strategy. And in light of stronger asset sales and a marked improvement in our cinema and live theater businesses, we're evaluating whether the cash flow expected to be generated from the cinema at Napier and the third-party tenant or a potential new third-party tenant are strong enough to outweigh the cash infusion from the potential sale of the underlying Napier property. Gilbert Avanes: Our last question on Philadelphia. The Q2 10-Q says the Code Violation Litigation was settled for a nominal amount. What is the current procedural status of the STB appeal? Has the City of Philadelphia, Center City District or any related party made any formal offer settlement proposal or condemnation filing since the STB decision? And are any adjoining parcels capable of separate monetization while the broader Viaduct dispute remains unresolved. Ellen? Ellen Cotter: All right. Let me take each of the parts of this question. So first off, yes, confirming again the code violation case was settled for a nominal sum. Today, the STB case continues procedurally our appeal with the D.C. Circuit Court. Other independent parties with rail interest have filed intervening briefs in our favor. So we expect the STB case to be afoot through at least 2026. And no, the city of Philadelphia or any related party has not made any offers or reach outs to Reading. Yes, there are adjoining Viaduct parcels that could be separately monetized, but it is, in our view, premature to review these properties for monetization until we have a more defined path with the city or another real estate developer. As we've mentioned in earlier calls, we want to reiterate that the company believes that the Reading Viaduct is a valuable company asset and any transportation in the future tied to the Reading Viaduct should represent a fair value for stockholders of Reading. Gilbert Avanes: Thanks, Ellen. That marks the conclusion of our second quarter 2026 conference call. We appreciate you listening to the call today. Thank you for your attention and support. Before you buy stock in Reading International, 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 Reading International 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. Reading (RDI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Earnings Call Webcast to Discuss Second Quarter Financial Results Scheduled to Post to Corporate Website on Tuesday, August 18, 2026 Q2 2026 Total Revenues grew to $66.9 million, Q2 2026 Total Revenues highest since pre-Pandemic, Q2 2026 Operating Income grew to $7.5 million, Q2 2026 EBITDA grew to $11.3 million. NEW YORK, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Reading International, Inc. (NASDAQ: RDI) (“Reading” or our “Company”), an internationally diversified cinema and real estate company with operations and assets in the United States, Australia, and New Zealand, today announced its results for the second quarter and six months ended June 30, 2026. Key Financial Summary Results – Second Quarter 2026 Total Revenues of $66.9 million increased by 11% from $60.4 million in Q2 2025 and represented the highest second quarter Total Revenues since Q2 2019. Operating Income of $7.5 million marked a 159% improvement from $2.9 million in Q2 2025 and represented the highest quarter result for this metric since Q2 2018. EBITDA of $11.3 million increased by 79% from $6.3 million in Q2 2025. Our Q2 2025 results included a $1.8 million gain on sale from the sale of our Cannon Park property in Australia. There were no asset sales in Q2 2026. Further, excluding the Q2 2021 EBITDA that included $43.2 million of gains on real estate asset sales, the Q2 2026 EBITDA represented the best second quarter since Q2 2019. Q2 Basic Earnings Per Share was $0.10 against a Q2 2025 Basic Loss Per Share of $0.12 noting the inclusion of asset sales in the Q2 2025 Loss Per Share. Further, excluding the Q2 2021 Basic Earnings Per Share that included $43.2 million of gains on sale from real estate asset sales, the Q2 2026 Basic Earnings Per Share represented the best second quarter since Q2 2019. Net Income was $2.3 million against a loss of $2.8 million in Q2 2025. Excluding the Q2 2021 Net Income result, which included gains on sale of $43.2 million from real estate asset sales, the Q2 2026 Net Income represented the best second quarter since Q2 2019. Key Financial Summary Results – Six Months of 2026 As compared to the same prior period: Total Revenues of $112.0 million increased by 11% from $100.5 million. Net Operating Income of $3.8 million improved from a net operating loss of $4.0 million. EBITDA of $10.4 million increased by 14% from $9.2 million. The first six months of 2025 included gains on sale of $8.4 million from the sale of our Cannon Park, Australia and Wellington, New Zealand properties. Basic Loss Per Share of $0.26 improved from a Basic Loss Per Share of $0.33. Net Loss of $5.8 million decreased by 25% compared to a Net Loss $7.8 million. In Q2 2026, the Australian dollar average exchange rate strengthened against the U.S. dollar by 10.8% while the New Zealand dollar exchange rate weakened by 1.5%, compared to Q2 2025. For the six months ended June 30, 2026 the Australian dollar strengthened by 10.8% and the New Zealand dollar strengthened by 1.1%. With 53% of our Total Revenues being generated by our Australian and New Zealand businesses this quarter and for the six months to June 30, 2026, the strengthening of the Australian dollar for the quarter and six months and the strengthening of the New Zealand dollar for the six months positively impacted our U.S. reported operating results. This exchange ratio improvement trend has continued since the end of the second quarter. President and Chief Executive Officer, Ellen Cotter said, “We’re so pleased to report that the Company achieved its strongest second quarter operational results since pre-pandemic periods. This strong performance was powered by an 11% increase in our global cinema revenue thanks to a phenomenal movie line-up, which included The Super Mario Galaxy Movie, The Devil Wears Prada 2, Michael, Backrooms, Obsession and Toy Story 5. In addition to the stellar box office, we believe our global management teams delivered these positive results by executing on our various strategic operational initiatives. This quarter we achieved the highest quarterly Cinema Revenues ever in Australia, and our Australian cinema circuit delivered the highest Operating Income since Q2 2018. This momentum has continued well into the third quarter of 2026, where we have set multiple new records due to the unprecedented success of Spider-Man: Brand New Day and The Odyssey. Our Australian cinema circuit reported the highest and second highest Gross Box Office days in its history on Saturday, August 1, 2026, and Sunday, August 2, 2026, and our U.S. Cinema circuit delivered the highest three-day box office weekend on a same store basis for the weekend of July 31, 2026. We fully expect the remainder of the year, especially the holidays, to include additional record setting weekends when we open Avengers: Doomsday, Dune 3 and Jumanji 3. Our Q2 2026 global Real Estate division segment revenues and operating income were broadly consistent against Q2 2025. Our results reflect the execution of our strategy to raise liquidity through select asset monetization, most notably the 2025 sales of our real estate assets in Wellington, New Zealand and Townsville, Australia. Our U.S. Real Estate business supported the global Real Estate division by reporting its second highest ever second quarter U.S. Real Estate revenue, led by strong performance in our Live Theatre division. As part of our continuing efforts to bolster our liquidity, we continue to move forward with the sale of our Cinemas 123 building in NYC. From a corporate perspective, our improved Q2 2026 Operating Income also reflects a 19% reduction in our global General & Administrative costs, even with the strengthening of the Australia and NZ dollars.” Cotter continued, “Following a solid first half of 2026, with a balance sheet which continues to be anchored by a strong real estate portfolio, and our global cinemas being poised to capitalize on an exciting and robust movie slate through the remainder of the year, while no assurances can be given, we believe our Company is well-positioned to deliver a strong 2026.” Cinema Business Our Australian cinema circuit led the way in a quarter which was treated to releases such as The Super Mario Galaxy Movie, The Devil Wears Prada 2, Michael and Toy Story 5. With respect to Q2 2026, and compared to Q2 2025, our global cinemas reported (i) $63.0 million in cinema revenue, representing an 11% increase and the highest quarterly result since Q4 2019, and (ii) Segment Operating Income of $9.2 million, representing a 68% increase and the best second quarter result since Q2 2019. These positive results were driven by: We continue to work with our global cinema landlords to align our occupancy costs with current operating conditions to help manage inflationary pressures and rising labor and operating costs, especially in the State of Hawaii, where we have experienced a significantly higher increase in operating expenses compared to the U.S. Mainland. Real Estate Business With respect to Q2 2026, and compared to Q2 2025, our global Real Estate business reported (i) $4.9 million of Real Estate revenue representing an increase of 4%, and (ii) operating income of $1.6 million representing a 7% increase. As of June 30, 2026, our combined Australian and New Zealand property portfolio has 58 third-party tenants, with a portfolio occupancy rate of 98% and total leased gross lettable area of 156,173 SF. Our Q2 2026 U.S. Real Estate revenues of $1.9 million represented an 11% increase from Q2 2025 primarily due to the improved performance of our Live Theatre division in NYC. Through the second quarter, we continued working towards monetizing Balance Sheet and Liquidity As of June 30, 2026: Our cash and cash equivalents were $5.7 million. Our assets had a total book value of $429.4 million, compared to a book value of $434.9 million as of December 31, 2025. Our total short term debt net of deferred finance costs of $108.0 million increased by $72.0 million from December 31, 2025. This was due to our Trust Preferred Securities and Emerald Creek Capital loans becoming due within the next twelve months. Further with respect to our debt position: Conference Call and Webcast We plan to post our pre-recorded conference call and audio webcast on our corporate website on Tuesday, August 18, 2026, which will feature prepared remarks from Ellen Cotter, President and Chief Executive Officer; and Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer. A pre-recorded question and answer session will follow our formal remarks. Questions and topics for consideration should be submitted to [email protected] by Monday, August 17, 2026, by 5:00 p.m. Eastern Time. The audio webcast will be able to be accessed by visiting https://investor.readingrdi.com/financial-information/quarterly-results. About Reading International, Inc. Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Consolidated Theatres, and the Angelika brand. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments, including Newmarket Village in Brisbane, Australia and 44 Union Square in New York City, are maintained in special purpose entities. Additional information about Reading can be obtained from our Company's website: http://www.readingrdi.com. Cautionary Note Regarding Forward-Looking Statements This earnings release contains a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995, including those related to our expected operating results; our belief regarding the quality, the quantity and the appeal of upcoming movie releases in the remainder of 2026 and our revenue expectations relating to such movie releases; our positioning for future periods; our expectations regarding our ability to refinance the loan on our live theater buildings in New York City; and our ability to successfully market and sell our Cinemas 1,2,3 property. You can recognize these statements by our use of words, such as “may,” “will,” “expect,” “believe,” and “anticipate” or other similar terminology. Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform either when considered in isolation or when compared to other securities or investment opportunities. Forward-looking statements made by us in this earnings release are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those factors discussed throughout Part I, Item 1A – Risk Factors and Part II Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year, as well as the risk factors set forth in any other filings made under the Securities Act of 1934, as amended, including any of our Quarterly Reports on Form 10-Q, for more information. (1)      Total segment operating income is a non-GAAP financial measure. See the discussion of non-GAAP financial measures that follows. Non-GAAP Financial Measures This Earnings Release presents total segment operating income (loss), EBITDA, and Adjusted EBITDA, which are important financial measures for our Company, but are not financial measures defined by U.S. GAAP. These measures should be reviewed in conjunction with the relevant U.S. GAAP financial measures and are not presented as alternative measures of earnings (loss) per share, cash flows or net income (loss) as determined in accordance with U.S. GAAP. Total segment operating income (loss) and EBITDA, as we have calculated them, may not be comparable to similarly titled measures reported by other companies. Total segment operating income (loss) – We evaluate the performance of our business segments based on segment operating income (loss), and management uses total segment operating income (loss) as a measure of the performance of operating businesses separate from non-operating factors. We believe that information about total segment operating income (loss) assists investors by allowing them to evaluate changes in the operating results of our Company’s business separate from non-operational factors that affect net income (loss), thus providing separate insight into both operations and the other factors that affect reported results. EBITDA – We use EBITDA in the evaluation of our Company’s performance since we believe that EBITDA provides a useful measure of financial performance and value. We believe this principally for the following reasons: We believe that EBITDA is an accepted industry-wide comparative measure of financial performance. It is, in our experience, a measure commonly adopted by analysts and financial commentators who report upon the cinema exhibition and real estate industries, and it is also a measure used by financial institutions in underwriting the creditworthiness of companies in these industries. Accordingly, our management monitors this calculation as a method of judging our performance against our peers, market expectations, and our creditworthiness. It is widely accepted that analysts, financial commentators, and persons active in the cinema exhibition and real estate industries typically value enterprises engaged in these businesses at various multiples of EBITDA. Accordingly, we find EBITDA valuable as an indicator of the underlying value of our businesses. We expect that investors may use EBITDA to judge our ability to generate cash, as a basis of comparison to other companies engaged in the cinema exhibition and real estate businesses and as a basis to value our company against such other companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States of America and it should not be considered in isolation or construed as a substitute for net income (loss) or other operations data or cash flow data prepared in accordance with generally accepted accounting principles in the United States for purposes of analyzing our profitability. The exclusion of various components, such as interest, taxes, depreciation, and amortization, limits the usefulness of these measures when assessing our financial performance, as not all funds depicted by EBITDA are available for management’s discretionary use. For example, a substantial portion of such funds may be subject to contractual restrictions and functional requirements to service debt, to fund necessary capital expenditures, and to meet other commitments from time to time. EBITDA also fails to take into account the cost of interest and taxes. Interest is clearly a real cost that for us is paid periodically as accrued. Taxes may or may not be a current cash item but are nevertheless real costs that, in most situations, must eventually be paid. A company that realizes taxable earnings in high tax jurisdictions may, ultimately, be less valuable than a company that realizes the same amount of taxable earnings in a low tax jurisdiction. EBITDA fails to take into account the cost of depreciation and amortization and the fact that assets will eventually wear out and have to be replaced. Adjusted EBITDA – using the principles we consistently apply to determine our EBITDA, we further adjusted the EBITDA for certain items we believe to be external to our core business and not reflective of our costs of doing business or results of operation. Specifically, we have adjusted for (i) legal expenses relating to extraordinary litigation, and (ii) any other items that can be considered non-recurring in accordance with the two-year SEC requirement for determining an item is non-recurring, infrequent or unusual in nature. CONTACT: For more information, contact: Gilbert Avanes – EVP, CFO, and Treasurer (213) 235-2240

This article first appeared on GuruFocus. Consolidated Revenue: Increased by $5 million to $45.1 million quarter over quarter. Net Loss: Increased by 71% from $4.8 million to $8.1 million compared to the prior year period. Basic Loss Per Share: Increased by $0.15 to $0.36 compared to $0.21 in Q1 2025. Operating Loss: Improved by $3.3 million to $3.6 million compared to $6.9 million in Q1 2025. Adjusted EBITDA: Loss of $0.8 million, a decrease of $3.7 million compared to an EBITDA income of $2.9 million in the prior year. Net Cash Used in Operating Activities: Decreased by $5.2 million to $2.5 million compared to $7.7 million in the prior year. Cash Used in Investing Activities: $0.5 million compared to cash provided of $17.9 million in the prior year. Cash Used in Financing Activities: Decreased by $14.6 million to $2.3 million compared to $16.9 million in the prior year. Total Assets: $431.5 million as of March 31, 2026, compared to $434.9 million on December 31, 2025. Total Outstanding Borrowings: $184.6 million as of March 31, 2026, compared to $185.1 million on December 31, 2025. Cash and Cash Equivalents: $0.5 million as of March 31, 2026. Global Cinema Revenue: Increased 14% to $41.5 million. Global Real Estate Revenue: Decreased by 5% to $4.6 million. US Cinema Revenue: Increased by 6% to $19.5 million. Australian Cinema Revenue: Increased by 26% to $19.7 million. New Zealand Cinema Revenue: Decreased by 6% to $2.3 million. US Real Estate Revenue: Increased by 13% to $1.8 million. Australia Real Estate Revenue: Decreased by 14% to $2.6 million. New Zealand Real Estate Revenue: Decreased by 12% to $214,000. Warning! GuruFocus has detected 4 Warning Signs with RDI. Is RDI fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reading International Inc (NASDAQ:RDI) reported a 14% increase in Global Cinema revenue for Q1 2026, marking the best first-quarter performance since 2019. The company's US cinemas delivered a 6% revenue increase over the prior quarter, with Australian cinemas achieving the highest first-quarter cinema revenues since 2020. RDI's efforts to reduce overall debt and general and administrative expenses have led to an 11% reduction in interest expense for Q1 2026. The company's loyalty programs have seen significant growth, with a 19% increase in Reading Rewards members in Australia and New Zealand. RDI's strategic initiatives, including F&B program enhancements and cinema renovations, have driven higher cinema attendance and improved financial performance. Reading International Inc (NASDAQ:RDI) reported a net loss of $8.1 million for Q1 2026, a 71% increase compared to the same period in the prior year. The company's basic loss per share increased by $0.15 to $0.36 for Q1 2026, compared to $0.21 for Q1 2025. RDI's Global Real Estate revenue decreased by 5% in Q1 2026, primarily due to the sale of assets in 2025. The US Cinema segment still generated a $1.6 million operating loss despite improvements, highlighting ongoing challenges in achieving sustainable profitability. RDI's cash and cash equivalents decreased by $5 million as of March 31, 2026, indicating ongoing liquidity pressures. Q: What is the current status of the refinancing for the Santander loan secured by Minetta Lane and Orpheum, and what are the contingency plans if it doesn't close by June 1, 2026? A: We are working on a few refinance options and trying to create an acceptable set of terms and conditions. We expect to close or refinance within the next few months. Q: Are there any covenants or provisions under the nationwide notes that could be triggered by the sale of Cinema 1, 2, and 3 or future Villages transactions? A: No, there are no such covenants or provisions. Q: What explains the difference in trajectory between Australia and New Zealand's cinema operations, and what is the plan to restore New Zealand cinema profitability? A: Australia's economy is more resilient with a stronger labor market, while New Zealand faces weaker growth and rising costs. The New Zealand dollar hasn't kept pace with the Australian dollar, and competition has impacted market share. Strategic initiatives are being implemented to improve New Zealand's performance. Q: What are the primary drivers of the US cinema segment's operating loss, and what changes are needed to achieve sustainable profitability? A: The US Cinema segment has improved but was significantly impacted by COVID-19. We are negotiating occupancy cost reductions, closing underperforming theaters, and expanding F&B programs. An improved movie slate is expected to enhance profitability. Q: What strategic initiatives are being focused on in 2026 across Reading's Global Cinema divisions? A: Key initiatives include enhancing F&B programs, expanding loyalty programs, and negotiating occupancy cost reductions. We are also exploring opportunities to take over existing theaters on favorable market terms. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved positive global cinema segment operating earnings before depreciation for the first time since 2019, driven by a stronger film slate and strategic execution. Performance attribution was heavily influenced by the film lineup in the U.S. and Australia, leading to record-high food and beverage (F&B) spend per person in both regions. Management is executing a 'culling' strategy, having closed eight loss-making theaters globally since 2020 to eliminate locations that required excessive capital or lacked a path to profitability. The U.S. Real Estate division delivered its highest first-quarter revenues ever, supported by strong live theater performance at Minetta Lane and improving rental streams at 44 Union Square. Strategic positioning remains focused on a 'two-business, three-country' model, using targeted asset sales to meet liquidity needs without diluting stockholders or seeking government assistance. Operational improvements were bolstered by favorable foreign exchange movements, as the Australian and New Zealand dollars strengthened against the U.S. dollar by 10.8% and 3.9%, respectively. Management anticipates 2026 will be the best post-pandemic box office year to date, citing a robust release schedule including major franchises like Star Wars, Marvel, and Avatar. Strategic focus for the remainder of 2026 includes the monetization of Cinema 1, 2, and 3 in NYC and the Napier property in New Zealand to retire outstanding debt. Renovation plans are underway for the Wellington, New Zealand cinema, with a potential relaunch in late 2027 following a landlord-led seismic upgrade of the building. The company expects to launch a paid premium Angelika monthly membership in the U.S. during the second quarter to further drive loyalty and recurring revenue. Guidance assumes continued success in renegotiating occupancy costs with landlords to align with attendance levels that remain below pre-pandemic benchmarks. Classified Cinema 1, 2, and 3 property as held for sale following the acquisition of the remaining 25% interest to facilitate a full property exit. Net loss increased to $8.1 million primarily because the prior year period included a $6.6 million one-time gain from the sale of Wellington property assets. Reduced overall gross debt by $100.4 million since December 31, 2020, through disciplined asset sales and operational cash flow management. Ongoing litigation regarding the Reading Viaduct continues in the D.C. Circuit Court of Appeals, with a decision not expected until at least the fourth quarter of 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is currently evaluating several refinance options and expects to close within the next few months. Specific terms were not disclosed, but the company is focused on creating an acceptable set of conditions to address the upcoming maturity. Australia's recovery is outpacing New Zealand due to a more resilient labor market and stronger local currency performance. New Zealand results were impacted by rising unemployment, energy costs, and new state-of-the-art competition in the Christchurch market. Profitability depends on the continued improvement of the studio film slate and successful occupancy cost reductions with landlords. The company is exploring taking over existing theaters on current market terms, which are often more favorable than legacy lease agreements. Management confirmed there are no mandatory prepayment provisions or asset sale requirements under the nationwide notes triggered by the sale of Cinema 1, 2, and 3.

Earnings Call Webcast to Discuss First Quarter Financial Results Scheduled to Post to Corporate Website on Tuesday, May 19, 2026 NEW YORK, May 15, 2026 (GLOBE NEWSWIRE) -- Reading International, Inc. (NASDAQ: RDI) (“Reading” or our “Company”), an internationally diversified cinema and real estate company with operations and assets in the United States, Australia, and New Zealand, today announced its results for the First Quarter ended March 31, 2026. Key Financial Summary Results –First Quarter 2026 Total Revenues of $45.1 million increased by 12% from $40.2 million in Q1 2025. Representing the best result for this metric since Q1 2019, a reported Operating Loss of $3.6 million marks a 47% improvement from a $6.9 million Operating Loss reported in Q1 2025. EBITDA decreased to a negative EBITDA of $0.8 million compared to a positive EBITDA of $2.9 million in Q1 2025, which 2025 quarter reflected a gain on sale of $6.6 million from the sale of our real estate assets in Wellington, New Zealand. Taking into account that Q1 2025 gain on sale, our Basic Loss per Share of $0.36 declined by 69% compared to a Basic Loss per Share of $0.21 in Q1 2025. Taking into account that Q1 2025 gain on sale, our Net Loss Attributable to Reading of $8.1 million weakened by 71% compared to a loss of $4.8 million in Q1 2025. In Q1 2026, both the Australian and New Zealand dollar average exchange rates strengthened against the U.S. dollar by 10.8% and 3.9%, respectively, compared to Q1 2025. With 53% of our Total Revenues being generated by our Australian and New Zealand businesses this quarter, the stronger currency positively impacted our U.S. reported operating results. This exchange ratio improvement trend has continued since the end of the quarter. President and Chief Executive Officer, Ellen Cotter said, “We’re pleased to report that the Company achieved its strongest first quarter Operating Income result since 2019 pre-pandemic. This strong performance was powered by a 14% increase in our global cinema revenue, attributable to a stronger movie line-up from movies like Project Hail Mary, Wuthering Heights, GOAT, and Hoppers, along with solid Q4 2025 holdovers like Avatar: Fire and Ash and Zootopia 2. Also, reflective of the successful execution of our key strategic initiatives, each of our cinema divisions delivered improved operating income results, with our Australian cinemas delivering a much improved first quarter. In addition to our U.S. and Australian cinema divisions reporting the highest ever first quarter Food & Beverage spend per head, all cinema divisions continued to add members to their loyalty programs through creative initiatives. We expect our positive momentum to continue through 2026 as the remaining movie slate looks extremely promising with titles like Toy Story 5, Moana, Minions & Monsters, The Odyssey, Spider-Man: Brand New Day, Avengers: Doomsday and Dune: Part Three. Our Q1 2026 global Real Estate division segment revenues and operating income decreased against Q1 2025. The performance reflects the execution of our strategy to raise liquidity through select asset monetization, most notably the 2025 sales of our real estate assets in Wellington, New Zealand and Townsville, Australia. Our U.S. Real Estate business supported the global Real Estate division by reporting its highest ever first quarter U.S. Real Estate revenue, led by strengthening in our Live Theatre revenue. Lastly, our improved Q1 2026 Operating Loss also reflects an 8% reduction in our global General & Administrative costs.” Cotter continued, “During the first quarter 2026, in an effort to bolster our liquidity, our Board directed Management to begin efforts to sell the Cinemas 1,2,3 building in NYC. And, as of the date of this Release, we are under contract to sell our Napier property in New Zealand with an expected cinema lease back. With a solid first quarter operational start, a balance sheet which continues to be anchored by a strong real estate portfolio, and our global cinemas poised to capitalize on an exciting and robust movie slate through the remainder of the year, while no assurances can be given, we believe our Company is well-positioned to deliver a strong 2026.” Cinema Business With respect to Q1 2026, and compared to Q1 2025, our global cinemas reported (i) $41.5 million in cinema revenue, representing a 14% increase, and (ii) an operating loss of $1.3 million, representing a 70% improvement. These positive results were driven by: (i) Increased attendance at our U.S. cinemas as a result of an improved Q1 2026 movie slate, despite a 7.3% reduction in our U.S. screen count due to the 2025 closure of an underperforming cinema; (ii) Increased attendance in our Australian cinemas as a result of an improved Q1 2026 movie slate, coupled with creative and compelling loyalty program initiatives; (iii) Improved F&B sales per person (“SPP”) for Q1 2026: (a) at AU$8.09, our Australian Cinema F&B SPP, represented the highest first quarter ever for our Australian Cinemas, and (b) at $8.38, our U.S. Cinema F&B SPP also ranked the highest first quarter during which our U.S. circuit was fully operating (i.e. excluding pandemic closure periods); and (iv) The strengthening of the Australian and New Zealand currencies during the first quarter 2026. We continue to work with our global cinema landlords to align our occupancy costs with current operating conditions to help manage inflationary pressures and rising labor and operating costs, especially in the State of Hawaii, where we have experienced a significantly higher increase in operating expenses compared to the U.S. Mainland. Real Estate Business With respect to Q1 2026, and compared to Q1 2025, our global Real Estate business reported (i) $4.6 million of Real Estate revenue representing a decrease of 5%, and (ii) operating income of $1.4 million representing a 13% decrease. Our Q1 2026 U.S. Real Estate revenues of $1.8 million represented a 13% increase from Q1 2025 primarily due to the improved performance of our Live Theatre assets in NYC, including our Minetta Lane Theatre, which generated its best first quarter in the Company’s history. As of December 2025, we own 100% of our Cinemas 1,2,3 property. In order to improve our liquidity conditions, during the first quarter of 2026, our Board directed management to begin efforts to sell this property. In New Zealand, we signed a purchase and sale agreement on March 4, 2026, to monetize our Napier property. The transaction has proceeded to the due diligence period. The transaction contemplates a lease back to us of the cinema at that location. As of March 31, 2026, our combined Australian and New Zealand property portfolio has 58 third-party tenants, with a portfolio occupancy rate of 98% and total leased gross lettable area of 156,171 SF. Balance Sheet and Liquidity As of March 31, 2026: Our cash and cash equivalents were $5.5 million. Our assets had a total book value of $431.5 million, compared to a book value of $434.9 million as of December 31, 2025. Our total gross debt of $184.6 million decreased by $0.5 million from December 31, 2025. With respect to our debt position: Continuing our efforts to reduce our overall interest expense, our Q1 2026 interest expense decreased by 11% compared to Q1 2025. On February 6, 2026, we executed an amendment to defer a principal payment related to our 44 Union Square loan, which we paid on March 13, 2026. On February 27, 2026, we executed an amendment to modify the principal repayment schedule of our Bank of America/Bank of Hawaii facility. On March 31, 2026, we executed an amendment to reduce our NAB loan’s minimum liquidity requirement for a limited defined period in 2026. We are currently working to refinance the loan on our live theatre buildings in New York City. Conference Call and Webcast We plan to post our pre-recorded conference call and audio webcast on our corporate website on Tuesday, May 19, 2026, which will feature prepared remarks from Ellen Cotter, President and Chief Executive Officer; and Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer. A pre-recorded question and answer session will follow our formal remarks. Questions and topics for consideration should be submitted to [email protected] by Monday, May 18, 2026, by 5:00 p.m. Eastern Time. The audio webcast will be able to be accessed by visiting https://investor.readingrdi.com/financial-information/quarterly-results. About Reading International, Inc. Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Consolidated Theatres and the Angelika brand. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments, including Newmarket Village in Brisbane, Australia, and 44 Union Square in New York City, are maintained in special purpose entities. Additional information about Reading can be obtained from our Company's website: http://www.readingrdi.com. Cautionary Note Regarding Forward-Looking Statements This earnings release contains a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995, including those related to our expected operating results; our belief regarding the quality, the quantity and the appeal of upcoming movie releases in the remainder of 2026 and our revenue expectations relating to such movie releases; our positioning for future periods; our expectations regarding the sale and lease back of our Napier property in New Zealand; our expectations regarding our ability to refinance the loan on our live theater buildings in New York City; and our ability to successfully market and sell our Cinemas 1,2,3 property. You can recognize these statements by our use of words, such as “may,” “will,” “expect,” “believe,” and “anticipate” or other similar terminology. Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform either when considered in isolation or when compared to other securities or investment opportunities. Forward-looking statements made by us in this earnings release are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those factors discussed throughout Part I, Item 1A – Risk Factors and Part II Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year, as well as the risk factors set forth in any other filings made under the Securities Act of 1934, as amended, including any of our Quarterly Reports on Form 10-Q, for more information. Non-GAAP Financial Measures This Earnings Release presents total segment operating income (loss), EBITDA, and Adjusted EBITDA, which are important financial measures for our Company, but are not financial measures defined by U.S. GAAP. These measures should be reviewed in conjunction with the relevant U.S. GAAP financial measures and are not presented as alternative measures of earnings (loss) per share, cash flows or net income (loss) as determined in accordance with U.S. GAAP. Total segment operating income (loss) and EBITDA, as we have calculated them, may not be comparable to similarly titled measures reported by other companies. Total segment operating income (loss) – We evaluate the performance of our business segments based on segment operating income (loss), and management uses total segment operating income (loss) as a measure of the performance of operating businesses separate from non-operating factors. We believe that information about total segment operating income (loss) assists investors by allowing them to evaluate changes in the operating results of our Company’s business separate from non-operational factors that affect net income (loss), thus providing separate insight into both operations and the other factors that affect reported results. EBITDA – We use EBITDA in the evaluation of our Company’s performance since we believe that EBITDA provides a useful measure of financial performance and value. We believe this principally for the following reasons: We believe that EBITDA is an accepted industry-wide comparative measure of financial performance. It is, in our experience, a measure commonly adopted by analysts and financial commentators who report upon the cinema exhibition and real estate industries, and it is also a measure used by financial institutions in underwriting the creditworthiness of companies in these industries. Accordingly, our management monitors this calculation as a method of judging our performance against our peers, market expectations, and our creditworthiness. It is widely accepted that analysts, financial commentators, and persons active in the cinema exhibition and real estate industries typically value enterprises engaged in these businesses at various multiples of EBITDA. Accordingly, we find EBITDA valuable as an indicator of the underlying value of our businesses. We expect that investors may use EBITDA to judge our ability to generate cash, as a basis of comparison to other companies engaged in the cinema exhibition and real estate businesses and as a basis to value our company against such other companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States of America and it should not be considered in isolation or construed as a substitute for net income (loss) or other operations data or cash flow data prepared in accordance with generally accepted accounting principles in the United States for purposes of analyzing our profitability. The exclusion of various components, such as interest, taxes, depreciation, and amortization, limits the usefulness of these measures when assessing our financial performance, as not all funds depicted by EBITDA are available for management’s discretionary use. For example, a substantial portion of such funds may be subject to contractual restrictions and functional requirements to service debt, to fund necessary capital expenditures, and to meet other commitments from time to time. EBITDA also fails to take into account the cost of interest and taxes. Interest is clearly a real cost that for us is paid periodically as accrued. Taxes may or may not be a current cash item but are nevertheless real costs that, in most situations, must eventually be paid. A company that realizes taxable earnings in high tax jurisdictions may, ultimately, be less valuable than a company that realizes the same amount of taxable earnings in a low tax jurisdiction. EBITDA fails to take into account the cost of depreciation and amortization and the fact that assets will eventually wear out and have to be replaced. Adjusted EBITDA – using the principles we consistently apply to determine our EBITDA, we further adjusted the EBITDA for certain items we believe to be external to our core business and not reflective of our costs of doing business or results of operation. Specifically, we have adjusted for (i) legal expenses relating to extraordinary litigation, and (ii) any other items that can be considered non-recurring in accordance with the two-year SEC requirement for determining an item is non-recurring, infrequent or unusual in nature. CONTACT: For more information, contact: Gilbert Avanes – EVP, CFO, and Treasurer (213) 235-2240

Revenue declines in Q4 2025 were primarily driven by a weaker global film slate compared to the record-breaking 'Wicked/Moana/Gladiator' trifecta in late 2024. Management successfully reduced global debt by approximately 10% in 2025, funded by the strategic monetization of non-core assets in Wellington and Townsville. Operating income for the cinema segment grew 230% year-over-year despite lower revenues, reflecting disciplined expense management and the closure of eight unprofitable theaters since 2020. The company is leveraging its dual-segment model by using real estate value to provide liquidity and bridge the gap as cinema attendance continues to trend below pre-pandemic levels. Food and beverage spend per person reached historical records across all three divisions, bolstered by high-margin movie merchandise and themed menus. Strategic focus has shifted toward loyalty program expansion, with Australian and New Zealand memberships growing 18% following a rewards program relaunch. Management anticipates 2026 will be the strongest post-pandemic box office year to date, supported by a robust slate including 'Toy Story 5' and 'Avengers: Doomsday'. The company plans to monetize the Cinemas 1, 2, and 3 building in Manhattan by Q3 2026 to pay down approximately $25.7 million in specific loan facilities. Capital expenditure in 2026 is prioritized for high-ROI theater renovations, including adding luxury recliners and premium large format (PLF) screens in California and Wellington. Ongoing negotiations with third-party landlords aim to realign occupancy costs with current attendance levels and inflationary operating expense pressures. The company expects to launch a paid premium Angelika monthly membership in the U.S. next quarter to drive recurring revenue and guest frequency. Completed the acquisition of the remaining 25% interest in Sutton Hill Properties, gaining full control of the Cinemas 1, 2, and 3 building and the Village East ground lease. The sale of the Napier property in New Zealand for NZD 2.5 million is under contract and expected to close within months to fund Wellington theater renovations. Foreign exchange volatility remains a headwind, with the New Zealand dollar devaluing 3% against the U.S. dollar in Q4 2025, impacting consolidated international reporting. The Reading Viaduct remains a key asset under legal appeal; management maintains that any future transaction must reflect fair value for stockholders despite ongoing litigation. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management intends to sell the Cinemas 1, 2, and 3 building to repay the $19.7 million Valley National loan and $6 million Bank of America loan. The company is actively exploring refinancing options for the Santander and Emerald Creek facilities maturing in mid-to-late 2026. At least one U.S. theater will close in 2026 due to lease expiration, with a few more potential exits over the next 12-18 months if they do not contribute to circuit cash flow. Decisions are driven by the ability to secure occupancy adjustments from landlords to offset increased operating expenses. The property is being marketed as a luxury residential or hotel redevelopment opportunity without any requirement for the buyer to continue cinema operations. Over 50 confidentiality agreements have already been signed, indicating strong market interest in the 'as-is' sale of the Upper East Side asset. Of the $19.3 million in G&A, 75% is attributable to corporate costs primarily in the U.S., while 21% supports cinema and 4% supports real estate. Management has reduced total G&A by 24% since 2019 through corporate efficiencies and the sale of the California headquarters. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Q4 2025 Revenue: Decreased by $8.3 million to $50.3 million quarter-over-quarter. Full-Year 2025 Revenue: Decreased by 4% to $203 million year-over-year. Q4 2025 Net Loss: Increased by $0.3 million to a loss of $2.6 million quarter-over-quarter. Full-Year 2025 Net Loss: Improved by $21.2 million to a loss of $14.1 million year-over-year. Q4 2025 Basic Loss Per Share: Increased by $0.01 to a loss of $0.11. Full-Year 2025 Basic Loss Per Share: Improved by $0.96 to a loss of $0.62. Q4 2025 Adjusted EBITDA: Decreased by $1.7 million or 25% to $5.1 million. Full-Year 2025 Adjusted EBITDA: Increased by $15.7 million or 744% to $17.8 million. Q4 2025 Operating Loss: $1 million compared to an operating income of $1.1 million in Q4 2024. Full-Year 2025 Operating Loss: Improved by $8.7 million or 62% to $5.3 million. Q4 2025 Global Cinema Revenue: Decreased by 14% to $46.9 million. Full-Year 2025 Global Cinema Revenue: Decreased by 3% to $188.6 million. Full-Year 2025 Global Cinema Operating Income: Increased by 230% to $3.6 million. Q4 2025 Global Real Estate Revenue: Decreased by 16% to $4.4 million. Full-Year 2025 Global Real Estate Revenue: Decreased by 8% to $18.4 million. Full-Year 2025 Global Real Estate Operating Income: Increased by 26% to $5.9 million. Total Assets as of December 31, 2025: $434.9 million, down from $471 million on December 31, 2024. Total Outstanding Borrowings as of December 31, 2025: $185.1 million, down from $202.7 million on December 31, 2024. Cash and Cash Equivalents as of December 31, 2025: $10.5 million. Warning! GuruFocus has detected 3 Warning Signs with RDI. Is RDI fairly valued? Test your thesis with our free DCF calculator. Release Date: April 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reading International Inc (NASDAQ:RDI) achieved a significant debt reduction of nearly 10% by the end of 2025, primarily through strategic asset sales. The company's adjusted EBITDA for the full year 2025 increased by 744% compared to the previous year, driven by gains from asset sales and improved operating results. RDI's food and beverage program set multiple records in 2025, with strong sales of movie-themed merchandise contributing to these results. The company successfully extended maturity dates and modified principal repayment schedules with key lenders, improving its financial flexibility. RDI's loyalty programs saw significant growth, with an 18% increase in Reading Rewards members in Australia and New Zealand and a 27% increase in paid memberships. Reading International Inc (NASDAQ:RDI) experienced a decrease in consolidated revenue by 4% year-over-year, primarily due to weaker film slates and unfavorable foreign exchange rates. The company's net loss attributable to RDI increased in Q4 2025, with a basic loss per share rising to $0.11 compared to $0.10 in Q4 2024. RDI's global cinema revenue decreased by 14% in Q4 2025, with operating income dropping by 76% compared to the same period in 2024. The sale of key property assets led to a reduction in real estate revenue, impacting the company's overall financial performance. RDI's international cinema operations faced challenges, with significant revenue and operating income declines in both Australia and New Zealand. Q: Can you explain the Board's intended 2026 sequence for addressing the maturing debt facilities, including which are expected to be repaid from asset monetization versus refinanced? A: To address liquidity needs, the Board plans to list the Cinemas 1, 2, 3 buildings for sale. Proceeds from this sale will be used to pay off the Valley National loan ($19.7 million) and the Bank of America loan ($6 million). We aim to monetize this property by the end of Q3 2026. For the Santander Minetta and Orpheum loan and the 44 Union Square loan, we are exploring refinancing options to extend maturity dates. Q: Beyond Queenstown and San Diego, how many additional cinemas are on a watch list for closure or lease restructuring, and what criteria drive these decisions? A: We anticipate closing at least one additional US theater in 2026 due to lease expiration. We are negotiating with cinema landlords in the US, Australia, and New Zealand for occupancy cost reductions. Decisions are based on potential future cash flows and existing business circumstances. We may close a few more cinemas over the next 12-18 months but remain open to new opportunities in compelling markets. Q: Could you elaborate on the terms of the intended sale of the Cinemas 1, 2, 3 property, particularly regarding redevelopment rights and cinema operations? A: The Cinemas 1, 2, 3 building is being marketed as an irreplaceable asset with expansive zoning for various uses. We intend to sell it on an as-is/where-is basis without future cinema use requirements. The market will dictate the price, and we aim to complete the sale by the end of Q3 2026. Q: Does Reading anticipate selling any further properties in 2026? A: We have two assets officially held for sale: Newberry Yard in Pennsylvania and the Cinemas 1, 2, 3 building in Manhattan. Additionally, our Napier, New Zealand property is under contract. We aim to monetize these assets by the end of Q3 2026. Outside these, we have no definitive plans to sell other assets currently. Q: Can you provide a breakdown of the company's G&A expenses for 2025? A: Our G&A expenses totaled $19.3 million in 2025. The cinema business accounted for $4.1 million (21%), real estate for $0.7 million (4%), and corporate expenses for $14.4 million (75%). Corporate expenses are primarily incurred in the US. Since 2019, we've reduced G&A expenses by $6.1 million, a 24% reduction. For the complete transcript of the earnings call, please refer to the full earnings call transcript.