Reading International (NASDAQ:RDI) reported weaker fourth-quarter results compared to the prior-year period, but management emphasized balance sheet progress, debt reduction from strategic asset sales, and early signs of improved cinema performance in 2026.
Fourth-quarter revenue declined as film slate softened and property sales reduced rent
Chief Financial Officer and Treasurer Gilbert Avanes said fourth-quarter 2025 consolidated revenue fell $8.3 million to $50.3 million compared with Q4 2024. He attributed the decline to a weaker film slate across the U.S., Australia, and New Zealand; the closure of two unprofitable theaters (one in the U.S. and one in New Zealand); and lower Australia/New Zealand real estate rent revenue following the sales of Cannon Park and the company’s Wellington, New Zealand assets.
Losses widened in Q4, while full-year results improved
Avanes said net loss attributable to Reading International increased $0.3 million to $2.6 million in Q4 2025. Basic loss per share was $0.11, compared with $0.10 in Q4 2024. He said the quarter’s performance was driven by weaker cinema results and a $2.2 million decline in other income versus the prior-year quarter, partly offset by a $0.6 million reduction in interest expense and a $2.7 million gain tied to the acquisition of a non-controlling interest connected to the Sutton Hill transaction.
For the full year, Reading’s net loss attributable to the company improved by $21.2 million to a loss of $14.1 million, compared with a loss of $35.3 million in 2024. Basic loss per share improved to a loss of $0.62 from $1.58. Avanes said the improvement reflected stronger segment income, a $3.2 million reduction in interest expense, a $2.7 million gain related to the Sutton Hill non-controlling interest acquisition, and an $8.4 million gain on asset sales in 2025—contrasting with a $1.3 million loss on the 2024 sale of the Culver City office—along with a $0.9 million reduction in G&A, partially offset by a $3.7 million increase in other expenses.
Total company depreciation, amortization, impairment, and G&A expenses fell to $7.3 million in Q4 2025 from $8.2 million in Q4 2024. For the year, those expenses declined $3.4 million to $32.5 million, which Avanes attributed to cinema closures in the U.S. and New Zealand, the Wellington and Cannon Park property sales, and delays in capital spending.
Operating metrics also moved lower in the quarter. Avanes reported a Q4 2025 global operating loss of $1.0 million, compared with operating income of $1.1 million a year earlier. Adjusted EBITDA in the quarter was $5.1 million, down $1.7 million, or 25%, from Q4 2024.
On a full-year basis, Avanes said the 2025 global operating loss improved to $5.3 million from an operating loss of $14.0 million in 2024, while adjusted EBITDA increased to $17.8 million from $2.1 million. He said the annual improvement was driven by a $9.7 million increase in gains from asset sales, the $2.7 million gain on the Sutton Hill non-controlling interest acquisition, and “improved operating results primarily through the efficient management of operating expenses and reducing general and administrative expenses.”
Asset sales, cash flow shifts, and debt reduction
Management highlighted several 2025 transactions. Avanes said Reading sold property assets in Wellington, New Zealand in Q1 2025 for NZD 38 million (about $21.5 million), and sold its Cannon Park asset in Townsville, Australia in May 2025 for AUD 32 million (about $20.7 million).
He also discussed the December 19, 2025 purchase of Sutton Hill Associates, a partnership that owned a 25% interest in Sutton Hill Properties, LLC, owner of the Cinemas 1, 2, 3 building. As part of that deal, Reading assumed third-party indebtedness with a face amount of $13.6 million at year-end 2025. Avanes said the debt carries interest payable quarterly at about 4.7% (later referenced as 4.75%) per annum, with principal due in a bullet payment on Sept. 30, 2035.
On cash flow, Avanes said net cash used in operating activities decreased to $1.6 million in 2025 from $3.8 million in 2024, primarily due to a decrease in net operating loss, partially offset by changes in net operating assets. Cash provided by investing activities increased to $37.1 million from $4.0 million, driven by the 2025 asset sale proceeds and reduced capital expenditures. Cash used in financing activities was $37.9 million, compared with cash provided of $0.3 million in 2024, as the company used proceeds to pay down debt in New Zealand (Westpac), the U.S. (Bank of America), and Australia (NAB).
At year-end 2025, total assets were $434.9 million, down from $471.0 million a year earlier. Avanes said the decline reflected a $1.8 million decrease in cash and cash equivalents and a $31.9 million reduction in land and property held for sale due to the Cannon Park and Wellington sales. Cash and cash equivalents were $10.5 million at Dec. 31, 2025.
Total outstanding borrowings decreased to $185.1 million from $202.7 million, which Avanes said was funded by net sale proceeds from Cannon Park and Wellington, partially offset by the $13.6 million debt assumed in the Sutton Hill deal. He said the asset sales helped reduce global debt by nearly 10% year over year and that interest expense for the year fell $3.2 million, or 15%.
Cinema performance: higher ticket prices, record food-and-beverage spend, and loyalty growth
President and CEO Ellen Cotter said management was “disappointed” by the global box office’s impact on 2025 results but argued that deals and operating initiatives completed during the year “should ultimately lead to a stronger Reading into 2026 and beyond.” She said the company retained cinema opportunities at sold properties through lease agreements.
Cotter said early 2026 trends were stronger: on a “flash basis,” global cinemas were “trading ahead in 2026 by over 11% on a U.S. dollar basis” from Jan. 1 through April 1. She also said Reading was encouraged by the 2026 release schedule and, “along with industry analysts and press,” believes 2026 will be the best post-pandemic box office year to date.
Operationally, Cotter said Q4 2024 comparisons were challenging due to what she described as record-setting results from films including Wicked, Moana, and Gladiator. For Q4 2025, she cited top titles including Wicked: For Good, Zootopia 2, and Avatar: Fire and Ash, while noting that Wicked: For Good “underperform[ed] its predecessor” and that expectations for Avatar: Fire and Ash were “not fully achieved.”
Cotter said the company delivered six straight quarters of positive EBITDA and continued to push initiatives including food-and-beverage (F&B) programs, movie-themed menus, merchandise sales, loyalty programs, and efforts to reduce occupancy costs through landlord negotiations as attendance remains below pre-pandemic levels.
She said Reading set multiple F&B records in Q4 and for the full year, including record spend-per-person levels across all three cinema divisions (excluding pandemic closure periods). Cotter added that Q4 2025 Australian F&B spend per person was the highest quarter ever in company history.
The company also detailed loyalty program growth:
- Australia/New Zealand Reading Rewards (free): over 430,000 members, up 18% from the prior quarter.
- Australia/New Zealand paid memberships (Reading and Angelika brands): over 22,139 paid memberships since late Q4 2024 launch, up 27% from the prior quarter.
- U.S. Angelika free membership: approximately 183,000 members, up 7% from the prior quarter across eight Angelika theaters; Cotter said a paid premium Angelika monthly membership is expected to launch “next quarter.”
By segment, Cotter said Q4 2025 global cinema revenue was $46.9 million, down 14%, and global cinema operating income was $0.9 million, down 76%. For full-year 2025, global cinema revenue was $188.6 million, down 3%, while global cinema operating income improved to $3.6 million from a $2.8 million operating loss in 2024.
She also highlighted record ticket pricing. In the U.S., Cotter said Q4 average ticket price was $14.03, the highest quarter ever for Reading’s U.S. circuit. Internationally, she said Australia’s Q4 average ticket price was AUD 16.02 and New Zealand’s was NZD 14.72, both fourth-quarter record highs in local currency.
Real estate performance, leasing efforts, and plans for asset monetization
Cotter said the real estate segment’s revenue declines reflected the elimination of rents from the Cannon Park and Wellington assets sold to raise liquidity. She reported Q4 2025 global real estate revenue of $4.4 million, down 16%, while Q4 operating income was $1.5 million, up 1%. For the year, global real estate revenue was $18.4 million, down 8%, while operating income rose 26% to $5.9 million.
Cotter said the U.S. real estate division improved year over year “mainly due to the favorable performance of our live theater division and increases in rent at 44 Union Square.” She described leasing efforts at 44 Union Square, noting that Petco remains a tenant while the company has four floors left to lease. Cotter said Reading switched brokers and re-engaged Newmark, which has launched a new marketing campaign and toured prospective tenants including office users as well as wellness, education, and entertainment-focused groups.
On the live theater business, Cotter said Q4 2025 results were weaker because the Orpheum was dark for most of the quarter, while Minetta Lane outperformed due to the hip-hop musical Mexodus. She said Audible exercised an option to extend its license at Minetta Lane through March 2027, and she outlined upcoming 2026 programming, including the return of Sexual Misconduct of the Middle Classes with Ella Beatty and Hugh Jackman beginning in mid-March 2026.
Responding to stockholder questions on liquidity and debt maturities, Avanes said the board decided to list the Cinemas 1, 2, 3 buildings for sale. He said proceeds are planned to pay off the Valley National loan (current balance cited as $19.7 million) and the Bank of America loan (current balance cited as $6.0 million). While “no assurance can be given,” Avanes said the company believes it is “reasonable to assume” the property can be monetized before the end of the third quarter of 2026.
Management said the property is being marketed “as an irreplaceable Upper East Side asset,” with expansive zoning allowing a “range of uses, including residential luxury condos, retail, and/or office,” and a potential hotel with a special use permit. Cotter added that Newmark had “already signed up over 50 confidentiality agreements” for access to a data room. She said Reading intends to sell the property “on an as-is/where-is basis” without requiring future cinema use.
On additional potential sales, Cotter said Reading has two assets held for sale—Newberry Yard in Williamsport, Pennsylvania, and the Cinemas 1, 2, 3 building—and said the company also has a contract to sell a property in Napier, New Zealand for NZD 2.5 million, with an expectation to lease back the cinema. While offering no assurance, she said it is “reasonable to assume” these assets could be monetized before the end of the third quarter of 2026. She added that management has been directed to evaluate other monetization opportunities, but “outside the assets” discussed, there were “no definitive plans” to sell additional assets at that time.
Cotter also addressed the Reading Viaduct, saying the company recently filed its appeal in the D.C. Circuit Court of Appeals regarding the STB case and expects a decision could take “between six months and a year.” She said the company believes it has a strong legal position and reiterated that Reading considers the Reading Viaduct a valuable asset, with any future transaction expected to represent fair value for shareholders.
Finally, Avanes responded to a question on G&A costs, stating that of the company’s reported $19.3 million in full-year 2025 G&A expenses, $4.1 million (21%) was attributable to the cinema business, $0.7 million (4%) to real estate, and $14.4 million (75%) to corporate. He said the company has reduced G&A by $6.1 million, or about 24%, since 2019.
About Reading International (NASDAQ:RDI)
Reading International, Inc (NASDAQ: RDI) is a diversified entertainment and real estate company headquartered in Santa Monica, California. The company’s principal operating arm is Reading Cinemas, a chain of multiplex movie theaters serving audiences in Australia, New Zealand and the United States. Reading Cinemas locations feature a mix of mainstream and independent film programming, premium large-format screens, special event presentations and concession services designed to enhance the customer experience.
In addition to its exhibition business, Reading International maintains a real estate development and management division focused on retail, office and mixed-use properties.
