NCMI Completes Captivate Deal, Raises 2026 Savings Target

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $61.4 million as Captivate closed Sept. 18, and the company now expects fourth-quarter revenue of $117.0 million to $124.0 million.

National CineMedia, Inc. (NCMI), the operator of a premium video and digital out-of-home advertising platform in the U.S., completed its acquisition of Captivate on September 18, 2026, creating a combined network of approximately 48,000 digital screens across movie theaters, office buildings and residential properties.

Total revenue for the fiscal third quarter ended October 1, 2026 decreased 3.2% to $61.4 million from $63.4 million a year earlier. That reversed the second quarter’s 12.7% year-over-year increase to $58.4 million. Captivate results were consolidated only from the September 18 close, so the quarter captured just two weeks of the new platform.

Cinema advertising revenue fell to $55.3 million from $59.5 million a year earlier. Office/residential advertising revenue, net, appeared at $2.2 million after Captivate consolidation, versus zero a year earlier. Other revenue was unchanged at $3.9 million. Attendance within NCM LLC’s advertising network rose to 135.2 million from 108.7 million, while cinema advertising revenue per attendee declined to $0.409 from $0.547. Captivate’s network included 1,517 office buildings as of October 1, 2026.

Operating loss increased to $21.6 million from $1.8 million a year earlier. Net loss widened to $17.2 million, or $0.18 a share, from net income of $1.6 million, or $0.02 a share. Adjusted OIBDA decreased to $3.3 million from $10.2 million, and the adjusted OIBDA margin compressed to 5.4% from 16.1%. Adjusted net income was $0.33 a share, compared with $0.00 a year earlier.

The operating-loss expansion tracked higher exhibition and administrative costs plus deal charges. Theater exhibition fees rose to $40.2 million from $32.3 million. Administrative and other costs rose to $19.5 million from $10.6 million. Selling and marketing costs fell to $9.0 million from $10.1 million. Network operating costs were unchanged at $3.2 million. Acquisition and integration costs of $10.3 million appeared in the quarter, versus none a year earlier. Workforce and system transformation costs were $0.8 million versus $1.5 million. A $0.6 million goodwill impairment was recorded. A $36.4 million loss on re-measurement of the tax receivable agreement payable was booked, versus a $3.1 million gain a year earlier.

Gross borrowings increased to $285.0 million as of October 1, 2026 from $12.0 million as of January 1, 2026. Total assets rose to $758.8 million from $490.6 million. Total equity declined to $319.6 million from $375.4 million.

The company raised its 2026 operational transformation savings target to more than $7.5 million, after reporting $2.7 million of year-to-date savings in the second-quarter release and remaining on track for approximately $11.0 million in annualized cost savings.

Chief Executive Officer Tom Lesinski said he will retire as part of a planned leadership transition, with an anticipated departure of December 31, 2026. The board has retained Korn Ferry to search for a successor. Lesinski said the company is focused on integrating Captivate, realizing acquisition synergies and reducing leverage.

For the fourth quarter of 2026, the company expects total revenue of $117.0 million to $124.0 million and Adjusted OIBDA of $42.0 million to $48.0 million. Lesinski said early fourth-quarter trends across both networks were supported by a strong holiday theatrical slate and growing demand for Captivate’s office and residential inventory.