Cineplex (CGX) Q4 2025 earnings summary

Executive summary

• Q4 2025 featured a strong film slate led by Avatar: Fire and Ash, Zootopia 2, and Wicked Part Two, with premium formats driving record per-patron metrics and 10.1 million guests entertained, up 8.9% year-over-year.

• Despite standout titles, Q4 revenue declined 1.8% year-over-year due to the weakest October since 2020, but December was the strongest since 2019.

• Full-year 2025 saw steady performance after a soft Q1, with box office revenues at 105% of the prior year from April to December and annual adjusted EBITDAaL of $91.6 million, up 1.7%.

• Sale of Cineplex Digital Media for $70 million ($60 million received at closing) strengthened the balance sheet, enabled share repurchases, and provided flexibility for debt reduction.

• Appointment of Sean McGuckin to the board brought additional financial expertise, while board changes included the retirement of Robert Bruce and the passing of Nadir Mohamed.

Financial highlights

• Q4 revenue: $334.8 million, down 1.8% year-over-year; adjusted EBITDAaL: $35.1 million (10.5% margin), nearly flat from prior year.

• Q4 box office per patron (BPP): $13.87 (record); concession per patron (CPP): $9.92 (Q4 record).

• Full-year revenue: $1.28 billion, up 0.8%; adjusted EBITDAaL: $91.6 million, up 1.7% year-over-year.

• Cinema media revenue up 13.1% in 2025 to $89.5 million; media per patron reached a record $3.33 in Q4.

• Location-Based Entertainment (LBE) 2025 revenue: $142 million, up 10.3%; adjusted EBITDAaL margin improved to 15.9%.

Outlook and guidance

• 2026 film slate expected to be significantly stronger, with anticipated box office growth of 8%-15% over 2025 and a strong start in January 2026 with box office up 14% year-over-year.

• Guidance for 2026 CapEx: $50 million, focused on maintenance, balance sheet, shareholder returns, and selective growth.

• Focus on deleveraging to achieve a target leverage ratio of 2.5x–3.0x, with capital allocation priorities including debt reduction, strategic investments, and shareholder returns.

• No major LBE expansions planned beyond Playdium Vaughan; monitoring for future opportunities.