Marcus Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 were $237.8 million, a 13.1% increase from $210.2 million in the third quarter of fiscal 2025.
• Operating income for the third quarter of 2026 was $30.3 million, a 33.2% improvement from $22.7 million in the prior year quarter.
• Net earnings for the third quarter of 2026 were $18.8 million, a 15.6% increase from $16.2 million in the prior year quarter; prior year results included a $3.0 million ($0.10 per share) net of tax gain from a property insurance settlement.
• Net earnings per diluted common share were $0.60 for the third quarter of 2026, a 15.4% increase from $0.52 in the prior year quarter.
• Adjusted EBITDA for the third quarter of 2026 was $49.1 million, a 21.5% increase from $40.4 million in the prior year quarter.
• For the first three quarters of 2026, total revenues were $623.9 million, a 10.4% increase from $565.0 million in the prior year period.
• Operating income for the first three quarters of 2026 was $38.1 million, a 148.5% increase from $15.3 million in the prior year period.
• Net earnings for the first three quarters of 2026 were $19.2 million, a 185.8% increase from $6.7 million in the prior year period.
• Net earnings per diluted common share for the first three quarters of 2026 were $0.62, a 195.2% increase from $0.21 in the prior year period.
• Adjusted EBITDA for the first three quarters of 2026 was $97.9 million, a 35.1% increase from $72.5 million in the prior year period.
• Net cash flow provided by operating activities was $38.4 million for the third quarter of 2026, compared to $39.1 million in the prior year quarter.
• Net cash flow provided by operating activities was $77.2 million for the first three quarters of 2026, compared to $35.4 million in the prior year period.
• Capital expenditures were $10.0 million for the third quarter of 2026 and $26.7 million for the first three quarters of 2026.
• Long-term debt was $149.2 million as of September 30, 2026, down from $159.0 million as of December 31, 2025.
• Cash and cash equivalents were $60.2 million as of September 30, 2026, up from $23.4 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects the holiday movie slate to feature several franchise-driven tentpole films appealing to a wide range of audiences.
• The historic World Series run for the Milwaukee Brewers and upcoming holiday travel and events are expected to benefit the hotels business.
• Upcoming fourth-quarter films include Verity, Other Mommy, and Street Fighter.
• The film slate for the remainder of the year includes The Cat in the Hat, Godzilla Minus Zero, Hunger Games: Sunrise on the Reaping, Dune: Part Three, and Avengers: Doomsday.
• New films planned for 2027 with potential for strong performance include Ice Age: Boiling Point, Narnia: The Magician's Nephew, Sonic the Hedgehog 4, Frozen 3, and Avengers: Secret Wars.
• Management stated that momentum is building into the fourth quarter with strong pre-sales for Avengers: Doomsday.

Business Segments and Product Lines:

• Marcus Theatres:
  • Total theatre revenues were $145.0 million for the third quarter of 2026, a 20.9% increase over the prior year quarter.
  • Division operating income was a record $22.2 million, a $9.9 million improvement from the prior year quarter.
  • Adjusted EBITDA was $32.3 million, a 46.3% increase over the prior year quarter.
  • Same store admission revenues increased 21.8% compared to the prior year quarter.
  • Same store attendance increased 16.8%, while average ticket prices increased 4.3% due to pricing changes.
  • Average concession revenues per person increased 3.8% due to increased movie-themed merchandise sales and price optimization.
  • Admission revenue growth was negatively impacted by 2.8 percentage points due to box office grosses for films not reported to Comscore by certain streaming content providers.
  • Top five performing films in the third quarter were Spider-Man: Brand New Day, The Odyssey, Toy Story 5, Minions & Monsters, and Moana.
• Marcus Hotels & Resorts:
  • Total revenues before cost reimbursements were $82.0 million for the third quarter of 2026, a 2.0% increase over the prior year quarter.
  • Division operating income was $15.3 million, a $1.0 million decrease from the prior year quarter.
  • Adjusted EBITDA was $22.6 million, a $0.6 million decrease from the prior year quarter.
  • Operating income and Adjusted EBITDA were negatively impacted by increased repair expenses and lost revenue due to severe storm damage at one property.
  • Revenue per available room (RevPAR) at owned hotels increased 2.1%, driven by higher average daily rates.
  • RevPAR growth at comparable owned hotels (excluding The Marc) outperformed competitive sets by approximately 1.2 percentage points.
  • Three properties received Condé Nast Traveler 2026 Readers' Choice Awards: The Pfister Hotel (No. 24 Best Hotels in the World, No. 1 Midwest), Grand Geneva Resort & Spa (No. 2 Midwest Resort), and Kimpton Hotel Monaco Pittsburgh (No. 11 Mid-Atlantic Hotel).

Market and Competitive Landscape:

• Marcus Theatres is the fourth largest theatre circuit in the U.S., operating 975 screens at 77 locations in 17 states.
• Marcus Hotels & Resorts owns and/or manages 18 hotels, resorts, and other properties in eight states.
• The theatre division benefited from the best summer movie season in company history.
• The hotels division benefited from strong leisure demand and improved business demand across the portfolio.
• The Pfister Hotel was recognized as the No. 1 top hotel in the Midwest.

Risks and Challenges:

• Severe storm damage at one hotel property caused lost revenue and increased repair expenses in the third quarter of 2026.
• The first three quarters of 2026 included five fewer operating days than the first three quarters of fiscal 2025 due to a fiscal year transition.
• Forward-looking statements note risks including adverse effects of pandemics, availability of motion pictures, industry dynamics regarding release windows, adverse economic conditions, financing availability, competitive conditions, and effects of weather.
• Specific risks include potential disruptions from tariffs, strikes, and civil securities claims.

Management Commentary and Tone:

• CEO Gregory S. Marcus stated that record third quarter revenue in both divisions drove the highest total revenue in company history.
• President of Marcus Theatres, Jeffry F. Tomachek, described the box office as soaring with the best summer movie season in company history.
• President of Marcus Hotels & Resorts, Michael R. Evans, noted that peak summer travel contributed to another record revenue quarter and that upper upscale properties are well-positioned.
• Management expressed confidence in the holiday movie season and the impact of the Milwaukee Brewers playoff run on hotel demand.

Other Key Points:

• The Company transitioned its fiscal year in the first quarter of 2025 from a 52-53 week fiscal year ending on the last Thursday of each year to a fiscal year ending on December 31.
• The Marc hotel opened in the first quarter of 2026 and is excluded from comparable owned hotel RevPAR growth calculations.
• A $3.0 million ($0.10 per share) net of tax gain from a property insurance settlement impacted net earnings in the third quarter and first three quarters of fiscal 2025.
• Non-cash impairment charges of $183,000 were recorded in the third quarter of 2026 related to one operating theatre.
• The company held a conference call on October 29, 2026, at 10:00 a.m. Central time.
• Adjusted EBITDA is used by management to assess financial performance and determine annual cash bonuses and long-term incentive awards.