Cinemark (NYSE:CNK) Chief Financial Officer Melissa Thomas said early 2026 box office results have been encouraging and that the company sees momentum heading into what she described as one of the most robust film slates in several years. Speaking in a conference fireside chat, Thomas pointed to year-to-date domestic box office growth of 20% versus the prior year period, supported by strong carryover titles and successful new releases, and said the year-to-date performance is also modestly above 2023 levels.
Thomas said the company’s confidence in 2026 reflects continued consumer enthusiasm for theatrical moviegoing and ongoing studio support for theatrical releases. She emphasized, however, that overall performance will ultimately depend on how individual films resonate with audiences. Beyond the release slate, Thomas said Cinemark sees “plenty of opportunities” within its control to drive incremental growth and value.
2026 slate: family, action, horror, and more independent volume
- Family titles cited for 2026 included Toy Story 5, Super Mario Galaxy, another Minions installment, and live-action Moana.
- Thomas also said the 2026 slate appears more diverse overall than in recent years.
- She noted an increase in product volume from smaller and independent studios, which she said can help fill gaps and support a more consistent cadence of wide releases.
Theatrical windows and streaming: comments on Universal and Netflix
Asked about Universal’s decision to expand its theatrical window from 17 days to 45 days over the next two years, Thomas said she could not speak for studio partners but reiterated Cinemark’s view that a meaningful theatrical window helps films reach their full potential. She said exclusive theatrical runs support promotional impact, help create “cultural moments,” and maximize value over a film’s life cycle, adding that steps reinforcing that model are constructive.
On Netflix, Thomas said the company believes theatrical distribution can provide mutual opportunity but that Netflix has not pursued it consistently. She referenced Netflix’s recent public comments indicating a “deeper appreciation” for theatrical distribution based on its review of Warner Bros.’ theatrical business, but said Cinemark will watch whether Netflix’s actions align with that evolving perspective. For now, she characterized Netflix’s theatrical activity as more “one-off” in nature.
Premium experiences, Movie Club data, and concession trends
Thomas said Cinemark has seen a clear post-pandemic trend toward premium experiences, with guests leaning into reclined seating, expanded food and beverage, and enhanced formats such as Cinemark XD, ScreenX, IMAX, and D-BOX. She said the company set records in 2025 for premium format revenue and for concession sales, and that Cinemark plans to allocate a portion of 2026 capital expenditures toward premium amenities—specifically calling out XD and D-BOX motion seats, along with food and beverage upgrades.
While premium formats can drive growth, Thomas said the company’s goal is to deliver a “premium” experience across all auditoriums, focusing on overall quality, including seating, food and beverage offerings (such as pizzas, sandwiches, and alcohol), guest experience, and cleanliness—regardless of whether a customer pays extra for a premium screen.
Thomas also discussed Cinemark’s Movie Club subscription program, saying it has 1.45 million members and drives 30% of the company’s box office. She said Movie Club members tend to upgrade more often into premium formats and spend more on food and beverage. She emphasized both membership growth and retention, and outlined recent program enhancements such as a Platinum tier, a premium screen upgrade add-on, badges intended to spark social engagement, and perks such as early-access screenings. Thomas said the company observes a meaningful increase in moviegoing frequency when non-subscribers convert to subscribers, though she declined to provide specific frequency statistics.
On concessions, Thomas said per-capita spending in 2025 was up more than 50% compared with 2019, with a “considerable portion” driven by higher incidence rates—customers buying more items per visit. She cited initiatives such as expanding offerings, improving throughput with queue lines, leaning into new product and flavor trends, and increased use of mobile ordering and third-party delivery. Thomas also pointed to merchandise as a growth catalyst that can lift per-capita spending and, due to viral behavior, potentially amplify box office.
AI, margins, new concepts, Latin America, and capital allocation
Thomas said Cinemark is using AI and machine learning to improve pricing, showtime optimization, and marketing execution, including audience targeting and optimizing spend and channel mix. She described generative AI as an opportunity to accelerate progress, and said the “biggest unlock” could be top-line initiatives. She also said AI could potentially improve film production efficiencies and increase the number of films produced, though she noted risks around intellectual property and copyright that would require safeguards.
On profitability, Thomas said pre-pandemic margins included cash dividends from NCM and DCIP that totaled about 200 basis points and are not expected to recur. She said Cinemark’s aim is to return to pre-pandemic margins excluding those dividends, with progress largely dependent on attendance and box office recovery, leverage over fixed costs, market share, per-capita spending, average ticket prices, the company’s strategic initiatives, and the ability to mitigate cost pressures. She added that inflation and foreign exchange dynamics are factors internationally. Thomas said it is “not unrealistic” for the box office to recover in a way that could support Cinemark operating above a 20% adjusted EBITDA margin, while emphasizing a continued focus on margin expansion.
Thomas also discussed experimentation with family entertainment concepts (FECs), which she described as complementary to the core exhibition business and potentially attractive for diversification, synergy, and returns. She noted Cinemark has had a joint venture in the space with Strike and Reel for years, and that the company opened its first wholly owned FEC in El Paso in February. She described the effort as early-stage and “R&D” oriented, with a focus on accretive long-term investments.
In Latin America, Thomas said Cinemark has been pleased with post-pandemic resiliency in attendance and performance, describing the region as socially and culturally aligned with moviegoing. She said the 2026 film slate is expected to resonate better in Latin America than the 2025 slate, particularly due to family titles and also action and horror. Thomas said Cinemark is applying similar strategies to those in the U.S.—tailored to local dynamics—such as investing in premium amenities, maintaining circuits, pursuing new builds, and leaning into loyalty and marketing. She added that Cinemark’s market share in Latin America has increased 180 basis points since the pandemic.
Finally, on capital allocation, Thomas outlined three pillars: maintaining balance sheet strength, investing in accretive growth opportunities, and returning excess capital to shareholders. She said the company’s first priorities are balance sheet strength and growth investments, but noted a free cash flow profile that also supports shareholder returns. Thomas pointed to the reinstatement and increase of the dividend and share repurchases executed last year, and said Cinemark expects to continue a balanced and disciplined approach designed to preserve flexibility while maximizing long-term shareholder value.
About Cinemark (NYSE:CNK)
Cinemark Holdings, Inc (NYSE: CNK) is a leading theatrical exhibitor that acquires, develops and operates motion picture theatres under the Cinemark® brand in the United States and Latin America. The company’s core business involves the presentation of first-run feature films coupled with an array of in‐theatre services, including concessions, premium auditoriums and loyalty programs. Cinemark’s exhibition portfolio encompasses both corporate‐owned and franchised complexes, offering moviegoers a range of experiences from standard screens to large‐format halls.
The company’s product offerings extend beyond ticket sales to include an assortment of concession items, such as popcorn, fountain beverages, candy and specialty snacks, as well as bar and lounge concepts in select locations.
