READING INTERNATIONAL INC
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
RDIB$10.20-3.5%Stored close · as of Nov 5, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0000716634-26-000019
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0000716634-26-000028
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 251 previous paragraphs and 268 current paragraphs.
162 unchanged; 59 reworded; 44 added; 28 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
Higher fixed third-party cinema rent, including base rent escalations and cost-of-living adjustments, together with deferred rent obligations; and
Current report
Driving guest attendance and engagement levels through:
Current report
Applying a laser focus to cost control, with particular emphasis on cinema labor and utilities; and
Current report
Our monetization of our property in Napier, New Zealand, which we signed a purchase and sale agreement for on March 4, 2026, is on hold while we work with the buyer to resolve certain unforeseen issues with the owner of the car park, which the cinema leases.
Current report
One of our key strategic priorities is the continued enhancement of F&B offerings across several of our global cinema locations and is particularly important because F&B revenue is not shared with film distributors. We have a total of 37 theater locations globally that offer elevated food and beverage menus with options beyond traditional concessions like popcorn, soda, and candy. We use F&B SPPto assess top-line performance, benchmark against competitors, and evaluate pricing, promotions, and menu strategies at both global and individual location levels. While cinema profitability depends on factors such as labor and cost of goods, F&B SPP helps management optimize revenue.
Current report
We continue to actively evaluate multiple cinema opportunities, where we believe that they will provide an appropriate commercial return.
Current report
(viii)On January 31, 2025, our Wellington properties, which included the Courtenay Central building; and
Current report
(i)previously discussed liquidity needs,
Current report
(iv)with respect to our Culver City office building, remote working making the property surplus to requirements.
Current report
On January 31, 2025, we sold all of our properties in Wellington, New Zealand. As discussed above, once the new landlord completes certain seismic upgrades we intend to fit out and operate the existing 10-screen cinema under a long-term lease and renovate it to a “best-in-class” standard.
Current report
Our monetization of our property in Napier, New Zealand, which we signed a purchase and sale agreement for on March 4, 2026, is on hold while we work with the buyer to resolve certain unforeseen issues with the owner of the car park, which the cinema leases.
Current report
Second Quarter Net Results
Current report
Global revenue for the quarter ended June 30, 2026 increased by 11% from $60.4 million to $66.9 million compared to the equivalent prior-year period. This was driven by increased cinema revenues, primarily in Australia due to an improved movie slate led by movies such Michael, The Super Mario Galaxy Movie, The Devil Wears Prada 2, and Toy Story 5. Such movies led to higher total circuit attendance volumes and higher ATP when compared to the second quarter of 2025. Our cinema revenues also benefited from an increase in 11% in the value of the Australian dollar against the comparative period. Real estate revenues held steady despite the impact of the sale of Cannon Park in May 2025 being offset by favorable exchange rate movements.
Current report
Global revenue for the six months ended June 30, 2026 increased by 11% from $100.5 million to $112.0 million compared to the equivalent prior-year period. This was driven by increased cinema revenues and an increase in 11% in the value of the Australian dollar across the comparative six month period. In addition to Q2’s movies, the six months to June 30, 2026 also benefited from the success of Project Hail Maryand Avatar: Fire and Ashin the first quarter. Real estate revenues held steady, with the impact of the sale of Cannon Park in May 2025 being offset by favorable exchange rate movements.
Current report
Our total global segment operating income for the quarter ended June 30, 2026, increased by 55%, from net operating income of $6.9 million to net operating income of $10.7 million compared to the equivalent prior-year period. Our segment operating income benefited from increased attendance volumes due to an improved movie slate, and our major variable costs, being film rent, F&B and labor, while increasing, remained relatively consistent as a percentage of cinema revenue when compared to the prior period. Our reduced depreciation expense is a reflection of deferred capital investment in certain of our cinemas.
Current report
Our total global segment operating income for the six months ended June 30, 2026, increased by 166%, from net operating income of $4.1 million to net operating income of $10.8 million compared to the equivalent prior-year period. This was due to our second quarter performance, which resulted in a 52% increase in cinema revenues when compared to the quarter ended March 31, 2026.
Current report
Income tax expense for the six months ended June 30, 2026, increased by 80% from $0.8 million to $1.4 million compared to the equivalent prior-year period. The change between 2026 and 2025 is primarily related to a decrease in year-to-date consolidated losses in 2026.
Current report
Our net income/(loss) for the quarter ended June 30, 2026, increased by 183%, from a net loss of $2.8 million to net income of $2.3 million. This was primarily due to our increased segment operating income and $794,000 of salary and bonus costs savings in general and administrative expenses, offset by a $1.9 million gain on sale of our property assets in Cannon Park, Australia and $2.3 million of foreign exchange losses not repeated in the current quarter.
Current report
Our net income/(loss) for the six months ended June 30, 2026, decreased by 25%, from a net loss of $7.8 million to a net loss of $5.8 million compared to the equivalent prior-year period. This was due to our improved segment operating income and a reduction of general and administrative expenses of $1.0 million. Such reductions were largely attributable to lower corporate salary and bonus costs, and were offset by a combined $8.4 million gain on sale on our Wellington, New Zealand and Cannon Park, Australia, properties. Income attributable to such sales was not replicated in the first six months of 2026. Additionally, a total of $2.6 million in exchange losses from the six months to June 30, 2025 were not repeated in the current period. Our interest expense reduced by $547,000 due to the pay down of debt from prior periods.
Current report
Second Quarter Results
Current report
Global cinema revenue for the quarter ended June 30, 2026, increased by 11% from $56.8 million to $63.0 million compared to the equivalent prior-year period. Mainstream movies such as Michael, The Super Mario Galaxy Movie, The Devil Wears Prada 2 and Toy Story 5 made for a mainstream slate that resonated with guests more strongly than the quarter ended June 30, 2025. Australia was the primary beneficiary of the increased cinema revenue with 15% higher attendance than the second quarter of 2025 and a 3.4% increased ATP. Australian cinema revenues benefited further from an increase in 11% in the value of the Australian dollar against the comparative period. The US saw a 2.4% increase in ATP, but overall attendance was down due to the May 2026 closure of our cinema 10-screen La Mesa cinema, the closure of our San Diego cinema in April 2025 and a weaker specialty slate compared to the comparative period. This quarter’s movie slate was not as well received in Hawaii as the same prior-year period, which further impacted our results. Our F&B revenue improvements in Australia were driven by attendance and foreign exchange benefits.
Current report
Global cinema revenue for the six months ended June 30, 2026, increased by 12% from $93.2 million to $104.5 million compared to the equivalent prior-year period. Movies such as Michael, The Super Mario Galaxy Movie, The Devil Wears Prada 2, Project Hail Maryand Toy Story 5 made for a mainstream movie slate which was stronger than the six months ended June 30, 2025. ATP increased for all three countries, while attendance reduced for the US due to the closure of our cinema in La Mesa in May 2026 and the closure of our San Diego cinema in April 2025, and a slightly weaker specialty movie slate.
Current report
Global cinema operating expenses for the quarter ended June 30, 2026, increased by 6% from $47.9 million to $50.9 million compared to the equivalent prior-year period. Operating expenses in Australia increased due to increased attendance and the impact of foreign exchange rates, but film rent costs as a proportion of box office attendance remained broadly similar. Our Australian occupancy cost increased due to scheduled rent increases and foreign exchange impacts, but our increases in revenue meant that occupancy cost as a proportion of revenue decreased. US expenses decreased 5% due to the overall reduced attendance caused by the closure of our La Mesa cinema, the closure of which also decreased our rent expense, but film rent patterns followed those of Australia.
Current report
Global cinema operating expenses for the six months ended June 30, 2026, increased by 6% from $85.6 million to $90.7 million compared to the equivalent prior-year period. This was driven by increased attendance in Australia, which increased cinema operating expenses while broadly holding our film rent, F&B and labor margins. US expenses decreased due to the impacts of increased attendance being offset by the closure of our La Mesa and San Diego cinemas, the impact of negotiated rent abatements, and savings in cleaning and maintenance and other operating expenses.
Current report
Depreciation, amortization, impairment, and general and administrative expenses for the six months ended June 30, 2026, decreased by 10% from $6.6 million to $6.0 million, compared to the equivalent prior-year period.
Current report
Cinema Segment Operating Income/(Loss)
Current report
Our global cinema segment operating income/(loss) for the quarter ended June 30, 2026, increased by 68% from a net operating income of $5.5 million to net operating income of $9.2 million compared to the equivalent prior-year period. The improvement in segment operating income is due to increased cinema revenues in Australia offset by decreases in cinema revenues in the US and New Zealand, and decreases in operating expenses in the US and New Zealand offset by attendance-driven increases in Australia.
Current report
Our global cinema segment operating income/(loss) for the six ended June 30, 2026, increased by 698% from net operating income of $1.0 million to net operating income of $7.8 million compared to the equivalent prior-year period. The improvement in segment operating income is due to increased cinema revenues in Australia and the US offset by higher operating expenses in Australia.
Current report
Second Quarter Results
Current report
Real estate revenue for the six months ended June 30, 2026, remained broadly consistent with the equivalent prior-year period, reflective of the loss of rental revenue from the monetization of Cannon Park.
Current report
Real estate segment operating income/(loss) for the quarter ended June 30, 2026, increased by 7% from net operating income of $1.5 million to net operating income of $1.6 million compared to the equivalent prior-year period. This was driven by movements in revenue, as costs remain broadly similar to the comparative period.
Current report
Real estate segment operating income/(loss) for the six months ended June 30, 2026, decreased by 3% from net operating income of $3.1 million to net operating income of $3.0 million compared to the equivalent prior-year period.
Current report
Our Financing Position
Current report
Cash used in operating activities for the six months ended June 30, 2026, increased from cash used of $6.2 million, to $0.7 million provided by operating activities compared to the same period in the prior year. This was due to increases in attendance driving improved operating results.
Current report
Cash used in financing activities for the six months ended June 30, 2026, decreased from $34.9 million to $4.4 million compared to the same prior year period. In the six months to June 30, 2025, we repaid our $10.5 million Westpac loan and $6.1 million of our Bank of America loan following the monetization of our Wellington properties and Cannon Park. In the six months to June 30, 2026, we made scheduled repayments on certain loans, rather than larger pay downs triggered by maturities or asset monetizations.
Current report
Our working capital deficit increased at June 30, 2026, because of the loans due in twelve months as discussed in Note 13 -Borrowings and further below.
Current report
Responding to a rapidly evolving operating environment
Current report
Actively managing our debt
Current report
In the U.S., we have recently modified our 44 Union Square and Bank of America loans to defer scheduled repayments with no changes to interest rates or maturity dates. We continue to make principal payments on this facility.
Current report
Pursuing further asset monetizations where appropriate
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Removed paragraphs (28)
Previous report
The number of movies released by the major Hollywood studios and other distributors, while increasing from pandemic levels, have not yet returned to their higher pre-pandemic levels;
Previous report
The traditional exclusive theatrical release window remains shorter than historic periods, however, the major studios are indicating their intent to return to longer exclusivity periods;
Previous report
Labor costs continue to rise due to mandated minimum wage increases;
Previous report
Significant and ongoing rises in fuel costs, which impact the cost of utilities;
Previous report
Increased fixed costs for third party cinema rents, some of which are increasing due to base rent escalations, some of which are fixed and some of which are adjusted by reference to changes in the cost of living index, which are exacerbated by our obligation to also pay deferrals of past rent. We have been able to mitigate this somewhat by negotiating for rent abatements and revised rental terms and through the closure of certain underperforming venues; and
Previous report
In New Zealand, we signed a purchase and sale agreement on March 4, 2026 to monetize our Napier property. The transaction is currently in its due diligence period.
Previous report
One of our key strategic priorities has been the continued enhancement of food and beverage offerings across several of our global cinema locations. We have a total of 38 theater locations that offer elevated food and beverage menus (i.e. menus that are beyond traditional popcorn, soda, and candy). We use F&B SPP as a measure of our food and beverage operational performance as compared to that of our competitors. Although the profitability of our food and beverage operations is influenced by numerous factors, including labor and cost of goods, F&B SPP serves as an indicator of our ability to achieve consistent strong top-line performance. In addition, F&B SPP highlights our ability to optimize revenue by effectively promoting and selling supplementary products to our customers during each visit. Moreover, this metric assists in evaluating how well we can differentiate our F&B offerings from our competitors. Management uses F&B SPP to adjust food and beverage pricing strategies at our individual theaters, measure the effectiveness of promotional marketing initiatives, optimize menu offerings, and ensure price barriers are not created for our customers. F&B revenue is particularly important to cinema operators, as film distributors do not share in this revenue stream.
Previous report
(vii) On January 31, 2025, our approximately 3.7 acre five-parcel assemblage in the entertainment center of Wellington, New Zealand, which includes the Courtenay Central building; and
Previous report
(i)our need for liquidity due to the circumstances referred to above,
Previous report
(iv)in the case of our Culver City office building, the property was not required for our operations because it exceeded our office size requirements. Since the sale of this office building, we have been working remotely in Southern California.
Previous report
As of the date of this Report, we continue to own our approximately 23.9-acre Newberry Yard in Williamsport, Pennsylvania (also currently non-income producing), which is being held for sale.
Previous report
On January 31, 2025, we sold all of our properties in Wellington, New Zealand (including the Courtenay Central building) to Prime Property Group (“Prime”) for a purchase price of $21.5 million (NZ$38.0 million). We understand that Prime intends to redevelop the properties, including a seismic upgrade of the existing Courtenay Central building. As a part of that sale transaction, we have entered into an Agreement to Lease for the cinema component of the to be upgraded Courtenay Central building.
Previous report
On March 4, 2026, we signed a purchase and sale agreement to monetize our Napier, New Zealand property for a purchase price of NZ$2.5 million. The transaction is currently in its due diligence period.
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First Quarter Net Results
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Revenue for the quarter ended March 31, 2026, increased by 12% (or$5.0 million), to $45.1 million, compared to the same period in the prior year, primarily due to (i) increased cinema revenuesin the U.S. and Australia as a result of stronger overall movie slate in the first quarter of 2026 compared to the same period 2025 (despite a cinema closure in the U.S. in the second quarter of 2025), (ii) increased real estate revenues in the U.S., and (iii) the strengthening of the AU/NZ foreign exchange rates against the U.S. dollar. These increases in revenue were offset by (i) a decline in real estate rent revenues in Australia due to the sale of Cannon Park, and (ii) increased costs in Australia and New Zealand due to the above referenced strengthening of the AU/NZ foreign exchange rate.
Previous report
Our total segment operating income for the quarter ended March 31, 2026, increased by $2.9 million, from a loss of $2.9 million to net operating income of $48,000, due to improved box office revenue and Food & Beverage revenues in U.S. and Australia as a result of a stronger movie slate, which included Avatar: Fire and Ash, Project Hail Maryand Wuthering Heights.
Previous report
For the quarter ended March 31, 2026, net loss attributable to Reading International, Inc. increased by 71%, from a loss of $4.8 million to a loss of $8.1 million, when compared to the same period in the prior year primarily. This was primarily due to a $6.6 million gain on sale of our property assets in Wellington, New Zealand including Courtenay Central in the first quarter of 2025 (income not replicated in the first quarter of 2026), offset by improved segment results, decreased interest expense (a reduction of $514,000), and decreased general and administrative expense (a reduction of $293,000).
Previous report
First Quarter Results
Previous report
For the quarter ended March 31, 2026, cinema revenue increased by $5.1 million, to $41.5 million compared to the same period in the prior year. Despite the closure of a 14-screen U.S. cinema, this increase was primarily driven by (i) improved box office revenues in the U.S. and Australia due to a stronger movie slate including Avatar: Fire and Ash, Project Hail Maryand Wuthering Heights (ii) higher Food & Beverage revenues in our U.S. and Australia cinema circuit due to increased attendance combined with higher F&B SPP and (iii) the impact of the strengthening of the Australian and New Zealand dollars. Our results were partially offset by lower cinema revenues in New Zealand, which was adversely impacted by the closure of an underperforming cinema in the first quarter of 2025.
Previous report
Cinema exhibition segment operating loss for the quarter ended March 31, 2026, improved by $3.1 million, from a loss of $4.5 million to a loss of $1.3 million when compared to the same period in the prior year. The improvement in segment operating loss is due to (i) increased cinema revenues in all three categories in the U.S. and Australia resulting from a better movie slate and higher attendance (ii) and a decrease in depreciation and amortization globally, partially offset by an increase in operating expenses in Australia.
Previous report
Operating expenses for the quarter ended March 31, 2026, increased by $2.2 million to $39.8 million, compared to $37.7 million in the same period in the prior year, due to due to higher attendance in the U.S. and Australia, which resulted in higher film rent, Food and Beverage cost, and other variable costs, plus higher occupancy cost globally. Furthermore, our expenses increased generally in U.S. dollar terms with the strengthening of the Australian and New Zealand dollars. This was offset by the savings in labor, cleaning and maintenance, and other operating expenses in the U.S. and a decrease in operating expense in New Zealand partly due to the closure of an underperforming cinema.
Previous report
First Quarter Results
Previous report
Real estate segment operating income for the quarter ended March 31, 2026 decreased by $0.2 million to $1.4 million, compared to $1.6 million in the same period in the prior year. This decrease was due to a reduction in Australia and New Zealand rental income and an increase in the U.S. operating expense, partially offset by an increase in U.S. Live Theatre rental and ancillary income and a reduction in Australia and New Zealand operating expenses.
Previous report
However, disruptions to our cinema cash flow caused by the COVID-19 pandemic, the 2023 Hollywood Strikes and periods of weak theatrical releases, augmented by changing consumer habits due to each of the foregoing, and continuing macroeconomic headwinds, have made it necessary for us to defer capital expenditures and to rely on the proceeds of asset monetizations to cover our costs of operations, pay interest, and pay down debt.
Previous report
In early 2024, understanding our reduced need for administrative space during the shift to remote-working, we decreased our overall general and administrative expense by selling our administrative building in Culver City, California, freeing up cash of approximately $1.3 million (after paying off our mortgage, brokerage commissions and transactional fees). We are currently reviewing our need for replacement of office space.
Previous report
If we cannot obtain sufficient net proceeds from the disposition of these assets (or determine to defer disposition due to unfavorable market conditions), in addition to other strategies, we may look to monetize other real estate assets.
Previous report
Cash used in operating activities for the quarter ended March 31, 2026, decreased by $5.2 million, to $2.5 million compared to cash used in the same period in prior year of $7.7 million. This was primarily driven by a decrease in net operating loss of $2.8 million and increase in net payables of $2.5 million.
Previous report
Cash used in financing activities for the quarter months ended March 31, 2026, decreased by $14.6 million, to $2.3 million compared to cash used by financing activities of $16.9 million in the same prior year period. This was primarily due to pay off of our $10.5 million loan to Westpac and a $6.1 million repayment to Bank of America, following the sale of our Wellington properties, New Zealand in the first quarter of 2025.
Reworded paragraphs (59)
Previous wording
We are encouraged by the improved performance of our cinema business in the first quarter of 2026, which reinforces our confidence in the continued recovery of our operations and the global cinema industry. While macroeconomic challenges remain, our first quarter 2026 results reflect improving industry momentum and support our confidence in the continued growth of our cinema business. Q1 2026 benefited from theatrical successes including Project Hail Mary, Wuthering Heights, GOAT, and Hoppers. Additionally, this quarter also saw the continued momentum of blockbuster hits from last quarter including Avatar: Fire and Ash, Zootopia 2, Wicked: For Good, Marty Supreme, and The Housemaid.
Current wording
We are encouraged by the improved performance of our cinema business in the second quarter of 2026 While macroeconomic challenges remain, our second quarter results reflect improving global cinema industry momentum and support our confidence in the continued growth of our cinema business. Q2 2026 benefited from theatrical successes including The Super Mario Galaxy Movie, The Devil Wears Prada 2, Michael, Backrooms, Obsession, and Toy Story 5. These releases continued the momentum that was set in Q1 2026 by releases such as Project Hail Mary, Wuthering Heights, and Hoppers.
Previous wording
Inflationary pressures, ongoing supply chain issues and increased operating expenses continue to push up our variable costs while we encounter consumer resistance to higher ticket prices;
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Inflationary pressures, ongoing supply chain issues, increases in labor costs, fuel costs, and operating expenses in general continue to push up our variable costs while we encounter consumer resistance to higher ticket prices;
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We believe that our ongoing focus on operational efficiency and strategic initiatives has improved our operations results. Over the past quarter, we have worked to optimize the efficiency of our locations, by:
Current wording
We believe that our ongoing focus on operational efficiency and strategic initiatives has improved our operational results, and we continue to respond to the prevailing macroeconomic challenges by:
Previous wording
Prioritizing the elevation of the guest experience through our expanded Food and Beverage program. Beer and wine, and liquor service is available at nearly every one of our U.S. cinema locations. These enhancements are mirrored in our Australian and New Zealand markets, ensuring a consistent and premium experience for audiences across all regions. This strong focus on Food and Beverage contributed in revenue increases in all countries for the quarter compared to same period in the prior year.
Current wording
o Our expanded Food and Beverage program. Beer and wine, and liquor service is available at nearly every one of our U.S. cinema locations. We are working towards mirroring these enhancements in our Australian and New Zealand markets, ensuring a consistent and premium experience for audiences across all regions.
Previous wording
We are expanding our loyalty and membership ecosystem to strengthen guest engagement. In late 2024, we transitioned from Reel Club to Reading Rewards and Angelika Rewards in Australia and New Zealand. Members can also upgrade to Reading and Angelika Rewards Boost with a fee. In the United States, we transitioned from Cinema Extras in our U.S. Consolidated Theatres to a new free to join Consolidated rewards program and paid subscription premium membership at the end of 2025 and in our U.S. Reading Cinemas to a new free-to-join Reading rewards program and paid subscription premium membership in early 2026. Our existing Angelika free membership program in the U.S. continues to grow, with membership increasing meaningfully compared to the prior year and we plan to add an Angelika paid subscription premium membership in Q2 2026.
Current wording
o Expanding our loyalty and membership ecosystem. In late 2024, we replaced our former loyalty program, Reel Club with Reading Rewards and Angelika Rewards in Australia and New Zealand, with a paid Boost tier available for each. In the United States, we replaced our former loyalty program, Cinema Extras at Consolidated Theatres at the end of 2025 with both a free to join and membership. In early 2026 we launched a new free and paid membership loyalty program at Reading Cinemas. Our Angelika U.S. free membership program continues to grow, and we plan to launch a paid subscription tier in Q3 2026.
Previous wording
Renegotiating our cinema leases and aligning our occupancy costs more effectively with attendance levels that, in general, remain behind pre-pandemic levels.
Current wording
Renegotiating our cinema leases and aligning our occupancy costs more effectively with current attendance levels, through abatements, revised lease terms, and where necessary, the closure of certain underperforming venues.
Previous wording
Looking ahead, we believe that the rest of the 2026 film slate presents a major opportunity to continue the positive momentum that we are seeing. As of today, titles such as Super Mario Galaxy Movie and Michael have generated strong box office results, reinforcing continued audience appetite for compelling, broadly appealing theatrical releases. We will continue to have highly anticipated major releases throughout the remainder of the year including The Devil Wears Prada 2, Toy Story 5, Supergirl, Minions 3, Moana, The Odyssey, Spider Man: Brand New Day, The Cat in the Hat, Avengers: Doomsday, and Dune: Part Three. These 2026 future releases are positioned to appeal to a wide variety of audiences, which should allow for a strong carry-through for the rest of the year. These titles cover a wide range of genres, from family animation to science fiction, each with the potential to produce significant box office results. Supported by our strategic operational initiatives and continued audience engagement efforts, this diverse slate positions us for a robust year.
Current wording
Looking ahead, we believe that the rest of the 2026 film slate presents a major opportunity to continue the positive momentum that we are seeing. As of today, Q3 2026 titles such as The Odyssey, Minions & Monsters, and Spider Man: Brand New Day, and other compelling releases later in 2026, including The Hunger Games: Sunrise on the Reaping, Avengers: Doomsday, Dune: Part Threeand Jumanji 3. These 2026 future releases are positioned to appeal to a wide variety of audiences. They cover a wide range of genres, from family animation to science fiction, and each have the potential to produce significant box office results. Supported by our strategic operational initiatives and continued audience engagement efforts, we believe that this diverse slate positions us well for a robust second half of the year.
Previous wording
In the United States, we now own 100% of our Cinemas 1,2,3 property and as of February 2026 we have classified this property as held for sale. At our 44 Union Square property in New York, Petco continues to occupy the cellar, ground, and second floors under a long-term lease on a full rent-paying basis, while we work to secure tenant(s) for the remaining space. We believe that demand for space in the Union Square submarket is improving. Additionally, we continue to hold our Newberry Yard property in Williamsport, Pennsylvania for sale.
Current wording
In the United States, we now own 100% of our Cinemas 1,2,3 property and as of February 2026 we have classified this property as held for sale. Our sales efforts are progressing, and we expect to complete the sale by the end of 2026. We continue to work to secure tenant(s) for the remaining space at our 44 Union Square property in New York, and we believe demand for space in the Union Square submarket is improving. Additionally, we continue to hold our Newberry Yard property in Williamsport, Pennsylvania for sale.
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Cinema exhibition, through our 58 cinemas.
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Cinema exhibition, through our 57 cinemas.
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In the post-pandemic period, we have monetized nine property assets, but we believe our cinema and real estate segments remain complementary and central to our long-term growth strategy. Prior to the pandemic, cinema generated cash flows supported the capital requirements of our real estate development activities. During this period, we relied more heavily on income from our real estate assets and selectively monetized embedded value to support the Company. With the effects of COVID-19 and the 2023 Hollywood strikes now largely behind us, we expect improved film quality and consistency to drive increased attendance and restore cinema generated cash flows as a key source of capital to expand and enhance our existing cinema and real estate portfolios. To address anticipated liquidity needs, Newberry Yard and Cinemas 1,2,3 are held for sale. Following these planned dispositions, we expect to retain assets in Pennsylvania, Manhattan, and Australia that we believe offer meaningful long term value creation opportunities as capital resources permit.
Current wording
Despite having monetized nine property assets since the pandemic, we believe our cinema and real estate segments remain complementary and central to our long-term growth strategy. Prior to the pandemic, cinema generated cash flows supported the capital requirements of our real estate development activities. During this period, we relied more heavily on income from our real estate assets and selectively monetized assets with embedded value to support the Company. With the effects of COVID-19 and the 2023 Hollywood strikes now largely behind us, we expect improved film quality and consistency to drive increased attendance and restore cinema generated cash flows as a key source of capital to expand and enhance our existing cinema and real estate portfolios. Currently, to address anticipated liquidity needs, Newberry Yard and Cinemas 1,2,3 are held for sale. Despite these planned dispositions, we expect to retain assets in Pennsylvania, Manhattan, and Australia that we believe offer meaningful long term value creation opportunities as capital resources permit.
Previous wording
Our F&B SPP in functional currency for the three months ended March 31, 2026, and March 31, 2025, are as follows:
Current wording
Our F&B SPP in functional currency for the quarter and six months ended June 30, 2026, and June 30, 2025, are as follows:
Previous wording
An additional key performance indicator utilized by management in our cinema exhibition segment is Average Ticket Price (“ATP”) Per Patron, which is calculated based on our total Box Office Revenues on a post-tax basis divided by our attendance during a specific period. ATP serves to measure our operational cinema performance when compared to that of our competitors. ATP is a useful metric for evaluating our ability to achieve a strong top line performance, gauging the effectiveness of our cinemas’ pricing strategies and our ability to draw audiences back to our theaters. Management uses ATP to adjust and inform ticket pricing schemes for our individual theaters, measure the effectiveness of our content programming, and ensure that price barriers are not created for core guests.
Current wording
Average Ticket Price (“ATP”) Per Patron is an important key performance indicator utilized by management in our cinema exhibition segment. It is calculated based on our total Box Office Revenues on a post-tax basis divided by our attendance during a specific period. ATP serves to measure our operational cinema performance when compared to that of our competitors. ATP is a useful metric for evaluating our ability to achieve a strong top line performance, gauging the effectiveness of our cinemas’ pricing strategies and our ability to draw audiences back to our theaters. Management uses ATP to adjust and inform ticket pricing schemes for our individual theaters, measure the effectiveness of our content programming, and ensure that price barriers are not created for core guests.
Previous wording
Our ATP in functional currency for the three months ended March 31, 2026, and March 31, 2025, are as follows:
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Our ATP in functional currency for the quarter and six months ended June 30, 2026, and June 30, 2025, are as follows:
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Our real estate key performance indicator results for the three months ended March 31, 2026, and March 31, 2025, measured in functional currencies, are as follows:
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Our real estate key performance indicator results for the quarter and six months ended June 30, 2026, and June 30, 2025, measured in functional currencies, are as follows:
Previous wording
In the case of our Live Theatres, with respect to key performance indicators, we primarily look to the Live Theatre rental revenue and ancillary income from the theatres. This key performance indicator represents box office revenues less amounts paid to producers for license fee settlements, plus ancillary income earned by us from certain theatre operations. Our Live Theatre rental revenue and ancillary income for the first quarter of 2026 improved to $0.7 million compared to $0.5 million for the first quarter of 2025.
Current wording
In the case of our Live Theatres, with respect to key performance indicators, we primarily look to the Live Theatre rental revenue and ancillary income from the theatres. This key performance indicator represents box office revenues less amounts paid to producers for license fee settlements, plus ancillary income earned by us from certain theatre operations.
Previous wording
in Australia, under the Reading Cinemas, Angelika Cinemas, the State Cinema by Angelika, and for our one unconsolidated joint venture theatre, Event Cinemas brands.
Current wording
in Australia, under the Reading Cinemas, Angelika Cinemas, and the State Cinema by Angelika brands, and for our one unconsolidated joint venture theatre, Event Cinemas.
Previous wording
in New Zealand, under the Reading Cinemas and for our two unconsolidated joint venture theatres, Rialto Cinemas brands.
Current wording
in New Zealand, under the Reading Cinemas brand and for our two unconsolidated joint venture theatres, Rialto Cinemas.
Previous wording
Our cinema revenues consist primarily of cinema ticket sales, F&B sales, screen advertising, gift card sales, cinema rentals, and online convenience fee revenue generated by the sale of our cinema tickets through our websites and mobile apps. Cinema operating expenses consist of the costs directly attributable to the operation of the cinemas, including (i) film rent expense, (ii) cost of goods sold, (iii) operating costs, such as labor costs and utilities, and (iv) occupancy costs. Cinema revenues and certain expenses fluctuate with the availability of quality content and the number of weeks such content stays on screen. For a breakdown of our current cinema assets that we own and/or manage, please refer to Part I, Item 1 – Our Businessof our 2025 Form 10-K.
Current wording
Our cinema revenues are primarily generated from ticket sales and rentals, food and beverage sales, screen advertising, gift cards and certificates, and booking fees from certain online and app purchases. Cinema operating expenses consist of the costs directly attributable to the operation of the cinemas, including (i) film rent expense, (ii) cost of goods sold, (iii) operating costs, such as labor costs and utilities, and (iv) occupancy costs. Cinema revenues and certain expenses fluctuate with the availability of quality content and the number of weeks such content stays on screen.
Previous wording
On April 15, 2025, we closed our underperforming cinema located in San Diego, California.
Current wording
On April 15, 2025, we closed our underperforming cinema located in San Diego, California, and a second underperforming cinema in La Mesa, California, on May 31, 2026.
Previous wording
Our Board has also authorized management to proceed with the negotiation of a lease for a new state-of-the-art cinema, located in Noosa, Queensland, Australia.
Current wording
Our Board has authorized management to proceed with the negotiation of a lease for a new state-of-the-art cinema, located in Noosa, Queensland, Australia.
Previous wording
On January 31, 2025, in connection with our sale of our Wellington Properties to Prime Property Group Limited (“Prime”), we entered into an Agreement to Lease with Prime to fit out and operate under a long-term lease our previously owned 10 screen cinema at the to be redeveloped Courtenay Central in Wellington, New Zealand (the “ATL”). Under the ATL, Prime is obligated to redevelop Courtenay Central and upgrade it to meet current earthquake standards. We intend to renovate the existing cinema to a “best-in-class” standard.
Current wording
On January 31, 2025, we sold our Wellington, New Zealand properties, including the Courtenay Central building, to Prime Property Group Limited (“Prime”) for $21.5 million (NZ$38.0 million). In connection with the sale, we entered into an Agreement to Lease with Prime for the cinema component of the to-be-redeveloped Courtenay Central building, under which Prime is obligated to redevelop the property and complete seismic upgrades to meet current earthquake standards. We intend to fit out and operate the existing 10-screen cinema under a long-term lease and renovate it to a “best-in-class” standard.
Previous wording
(2)Premium Service: This is our "Business Class Dine-in Service" in our Australian and New Zealand cinemas, which typically includes upgraded F&B menu (some with alcoholic beverages) and may include luxury recliner seating features (less intimate 80-seat cinemas), but no waiter service.
Current wording
(2)Premium Service: This is our "Business Class Dine-in Service" in our Australian and New Zealand cinemas, which typically includes upgraded F&B menu (some with alcoholic beverages) and may include luxury recliner seating features, but no waiter service.
Previous wording
(4)Liquor Licenses: Licenses are applicable at each cinema location, rather than each cinema auditorium. As of today, we have beer and wine licenses in 100% of our cinemas and liquor licenses in all but three of our cinemas operating in the U.S. In Australia, 86% of our cinemas are licensed and we have no liquor licenses pending. In New Zealand, 38% of our cinemas are licensed.
Current wording
(4)Liquor Licenses: Licenses are applicable at each cinema location, rather than each cinema auditorium. As of today, we have beer and wine licenses in 100% of our cinemas and liquor licenses in all but three of our cinemas operating in the U.S. In Australia, 87% of our cinemas are licensed and we have no liquor licenses pending. In New Zealand, 3 of our cinemas are licensed.
Previous wording
Through our various subsidiaries, we engage in the real estate business through the development, ownership, rental or licensing to third parties of retail, commercial, and Live Theatre assets. Our real estate business creates long-term value for our stockholders through the continuous improvement and development of our investment and operating properties, including our ETCs. In addition to owning the fee interests in 7 of our cinemas (as presented in the table under Cinema Exhibition Overview), as of March 31, 2026, we:
Current wording
Through our various subsidiaries, we engage in the real estate business through the development, ownership, rental or licensing to third parties of retail, commercial, and Live Theatre assets. Our real estate business creates long-term value for our stockholders through the continuous improvement and development of our investment and operating properties, including our Entertainment Themed Centers (“ETCs”). In addition to owning the fee interests in 7 of our cinemas (as presented in the table under Cinema Exhibition Overview), as of June 30, 2026, we:
Previous wording
own our 44 Union Square property in Manhattan comprised of retail and office space, which is currently in the lease-up phase. The cellar, ground floor, and second floor of the building are now fully leased to Petco, which is in occupancy of its premises on a full rent paying basis;
Current wording
own our 44 Union Square property in Manhattan comprised of retail and office space, which is partially leased to Petco;
Previous wording
own a 100% interest in Sutton Hill Properties LLC, a limited liability company, which in turn owns the fee interest in and improvements constituting our Cinemas 1,2,3 located in Manhattan. In addition, in the fourth quarter of 2025, we wound up our long term relationship with Sutton Hill Associates pursuant to a transaction whereby we purchased the 25% non-controlling minority interest in our Cinemas 1,2,3, property (also identified above as an “owned” cinema property) that we did not already own and the ground-lessee’s interest in the land and improvements constituting our Village East property. In February 2026, we classified our Cinemas 1,2,3 property as held for sale;
Current wording
own a 100% interest in Sutton Hill Properties LLC, which in turn owns the fee interest in and improvements constituting our Cinemas 1,2,3 located in Manhattan. In addition, in the fourth quarter of 2025, we wound up our long-term relationship with Sutton Hill Associates pursuant to a transaction whereby we purchased the 25% non-controlling minority interest in our Cinemas 1,2,3, property (also identified above as an “owned” cinema property) that we did not already own and the ground-lessee’s interest in the land and improvements constituting our Village East property. In February 2026, we classified our Cinemas 1,2,3 property as held for sale;
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own the approximately 23.9-acre Newberry Yard property in Williamsport, Pennsylvania, which is currently being held for sale; and
Current wording
own the approximately 23.9-acre Newberry Yard property in Williamsport, Pennsylvania, which is currently held for sale; and
Previous wording
The combination of the COVID-19 pandemic, the lack of any material U.S. public pandemic financial assistance due to our public company status, the 2023 Hollywood Strikes, increased interest rates, inflation, increased labor costs, and decreases in the value of the Australian Dollar and New Zealand Dollar vis-a-vis the U.S. Dollar over the past five years, have significantly impacted our cinema operations and necessitated capital conservation to sustain our cinema operations and service our debt. This has required us to rethink our real estate business plan and to monetize a number of properties that had pre-COVID been slated for long-term development.
Current wording
The combination of the COVID-19 pandemic, the lack of any U.S. public pandemic financial assistance due to our public company status, the 2023 Hollywood Strikes, increased interest rates, inflation, increased labor costs, and decreases in the value of the Australian Dollar and New Zealand Dollar vis-a-vis the U.S. Dollar over the past five years, have significantly impacted our cinema operations and necessitated capital conservation to sustain our cinema operations and service our debt. This has required us to rethink our real estate business plan and to monetize a number of properties that had pre-COVID been slated for long-term development.
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(i)Our non-income producing land holdings in Coachella, California (March 5, 2021) and Manukau, New Zealand (March 4, 2021);
Current wording
(i)Our non-income producing land holding in Manukau, New Zealand (March 4, 2021);
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(ii)Our Redyard ETC in Auburn, Australia (June 9, 2021);
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(iii)Our Redyard ETC in Auburn, Australia (June 9, 2021);
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(iii)Our Royal George Live Theatre complex in Chicago (June 30, 2021, slated for redevelopment, and now being redeveloped for residential purposes by the new owner);
Current wording
(iv)Our Royal George Live Theatre complex in Chicago (June 30, 2021, slated for redevelopment, and now being redeveloped for residential purposes by the new owner);
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(iv)The land underlying our cinema in Invercargill, New Zealand (August 30, 2021);
Current wording
(v)The land underlying our cinema in Invercargill, New Zealand (August 30, 2021);
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(v)Our non-competitive four-screen cinema in Maitland, Australia (October 25, 2023);
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(vi)Our non-competitive four-screen cinema in Maitland, Australia (October 25, 2023);
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(vi)Our administrative office building in Culver City, California (February 23, 2024);
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(vii)Our administrative office building in Culver City, California (February 23, 2024);
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(viii) Most recently, on May 21, 2025, our Cannon Park property in Townsville, Queensland, Australia.
Current wording
(ix)Most recently, on May 21, 2025, our Cannon Park property in Townsville, Queensland, Australia.
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These properties were identified for sale and sold for various reasons, such reasons have included without limitation
Current wording
These properties were identified for sale and sold for various reasons, including:
Previous wording
44 Union Square Redevelopment (New York, N.Y.) – On January 27, 2022, we entered a long-term lease with Petco for the lower level, ground floor, and second floor of the building. Petco continues to be open for business and in occupancy on a full rent paying basis. We continue to explore a variety of possible office and non-office types of uses for the remainder of the building.
Current wording
44 Union Square Redevelopment (New York, N.Y.) – On January 27, 2022, we entered a long-term lease with Petco for the lower level, ground floor, and second floor of the building. We continue to explore a variety of possible office and non-office types of uses for the remainder of the building.
Previous wording
Minetta Lane Theatre (New York, N.Y.) –Audible has a license agreement with us through March 15, 2027. Audible presents productions and special live performance engagements on the Audible streaming service. During the first quarter of 2026, Audible presented a number of original productions, including The Disappear, Michael Cruz Kayne – What Else What Else, and the critically acclaimed play Sexual Misconduct of the Middle Class with Hugh Jackman, which played previously during the second quarter of 2025.
Current wording
Minetta Lane Theatre (New York, N.Y.) –Audible has a license agreement with us through March 15, 2027. Audible presents productions and special live performance engagements on the Audible streaming service. During the second quarter of 2026, Audible presented a number of original productions, includingthe critically acclaimed play Sexual Misconduct of the Middle Class with Hugh Jackman (which opened in March 2026 and ran through April 2026, and which played previously during the second quarter of 2025), Tom Noonan’s What Happened Was, and Ella Hickson’s New Born.
Previous wording
Orpheum Theatre (New York, N.Y.) –STOMP closed (after 30 years at our theatre) on January 8, 2023. Under our termination agreement with the producers of STOMP, we have certain rights to provide the New York City venue for any future production of that show. Following STOMP’s historic run at the Orpheum, the theatre has hosted a variety of productions including Rachel Bloom’s Death, Let Me Do My Show, Hamlet starring Eddie Izzard, The Big Gay Jamboree, The Jonathon Larson Project, Ginger Twinsies, and 11 to Midnight, which will run through next quarter.
Current wording
Orpheum Theatre (New York, N.Y.) –STOMP closed (after 30 years at our theatre) on January 8, 2023. Under our termination agreement with the producers of STOMP, we have certain rights to provide the New York City venue for any future production of that show. Following STOMP’s historic run at the Orpheum, the theatre has hosted a variety of productions including Rachel Bloom’s Death, Let Me Do My Show, Hamlet starring Eddie Izzard, The Big Gay Jamboree, The Jonathon Larson Project, Ginger Twinsies, and 11 to Midnight.
Previous wording
Cinemas 1,2,3 (New York, N.Y.) –Currently operated as the Cinemas 1,2,3, we have historically treated this property as an asset held for long term development. However, in February 2026, we classified our Cinemas 1,2,3 property as held for sale.
Current wording
Cinemas 1,2,3 (New York, N.Y.) –Currently operated as the Cinemas 1,2,3, and classified as held for sale from February 2026.
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Current report — wording carried from elsewhere
For a breakdown of our current cinema assets that we own and/or manage, please refer to Part I, Item 1 – Our Business of the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2025 (the “2025 Form 10-K”).
Current report — wording carried from elsewhere
(ii)Our non-income producing land holding in Coachella, California (March 5, 2021);
Current report — wording carried from elsewhere
disruptions in film supply and film marketing due to the 2023 Hollywood Strikes; and
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Cinema Exhibition Segment Operating Income/(Loss)
Previous report — wording carried elsewhere
As of March 31, 2026, we had $5.5 million in unrestricted cash and cash equivalents compared to $10.5 million on December 31, 2025. On March 31, 2026, our total outstanding borrowings were $184.6 million compared to $185.1 million on December 31, 2025.