National CineMedia Restores Year-Over-Year Revenue Growth
Second-quarter revenue rose 12.7% to $58.4 million as attendance reached 137.6 million and adjusted OIBDA turned to a $2.1 million profit.
National CineMedia, Inc. (NCMI), the managing member of National CineMedia, LLC, the operator of the largest cinema advertising platform in the U.S., reported second-quarter revenue of $58.4 million for the period ended July 2, 2026, a 12.7% increase from $51.8 million a year earlier. That year-over-year gain reversed a 2.6% first-quarter decline to $34.0 million. Chief Executive Officer Tom Lesinski said the company delivered growth alongside a strong domestic box office while navigating a competitive advertising environment.
Adjusted OIBDA, a non-GAAP measure, swung to a $2.1 million profit in the second quarter from a $10.5 million loss in the first quarter, with an adjusted OIBDA margin of 3.6%. GAAP operating loss was $12.8 million, and net loss was $9.9 million, or $0.11 a share. Workforce and system transformation costs were $2.7 million in the second quarter, and the operational transformation delivered $2.7 million in cost savings year to date and remains on track for approximately $11.0 million in annualized savings.
Attendance in the advertising network, including Spotlight after November 15, 2025, rose to 137.6 million in the second quarter from 115.3 million a year earlier. Total revenue per attendee fell to $0.424 from $0.449. National advertising revenue was $44.9 million. Local and regional advertising revenue increased to $9.5 million from $6.4 million a year earlier. ESA Party advertising revenue from beverage concessionaire agreements was $4.0 million. Screens at period end totaled 18,925.
Theater exhibition fees were $37.6 million. Network operating costs were $3.7 million. Selling and marketing costs were $9.6 million. Administrative and other costs were $10.8 million. Depreciation was $1.5 million and amortization $8.0 million. Capital expenditures were $0.6 million.
On August 10, 2026, NCM entered a definitive agreement to acquire Captivate Holdings, LLC, the leading operator of digital video elevator and lobby advertising in North America, at an enterprise value of $275.0 million. The transaction will be funded with $275.0 million of new committed term debt, with available cash used to refinance the existing revolving credit facility and fund transaction expenses. The combined platform would include more than 48,000 screens across 185 designated market areas upon closing, spanning theaters, office buildings and residential properties. NCM expects to generate more than $3.5 million of annual run-rate cost synergies within the first year following close, primarily through elimination of duplicative corporate overhead and consolidation of executive and administrative functions. Closing is expected during the second half of 2026, subject to customary conditions and regulatory approvals.
In connection with the proposed acquisition and expected leverage at closing, NCM paused its quarterly dividend program. Cash, cash equivalents, marketable securities and restricted cash were $46.1 million as of July 2, 2026. Receivables, net, were $62.0 million. Total assets were $446.3 million. Borrowings, gross, were $12.0 million. Total equity was $334.3 million.
In connection with the expected timing of the pending transaction, NCM is not providing a forward outlook at this time. That does not reflect any change in its view of the underlying business. Until closing, NCM and Captivate will continue to operate independently in the ordinary course.
Stronger demand supports expansion as pricing diverges