National CineMedia, Inc. — Fiscal Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended October 1, 2026, decreased 3.2% to $61.4 million compared to $63.4 million in the same period in 2025.
• Operating loss widened to $21.6 million for the quarter, compared to an operating loss of $1.8 million in the prior year period.
• Net loss increased to $17.2 million ($0.18 per diluted share) for the quarter, compared to net income of $1.6 million ($0.02 per diluted share) in the prior year.
• For the nine months ended October 1, 2026, total revenue increased 2.5% to $153.8 million from $150.0 million in the prior year period.
• Operating loss for the nine-month period increased to $61.3 million from $37.7 million in the prior year.
• Net loss for the nine-month period increased to $55.8 million ($0.60 per diluted share) from a net loss of $39.9 million ($0.42 per diluted share) in the prior year.
• Adjusted OIBDA for the quarter decreased to $3.3 million from $10.2 million in the prior year period.
• Adjusted OIBDA for the nine months ended October 1, 2026, was negative $5.2 million, compared to positive $1.9 million in the prior year.
• Adjusted net income per diluted share for the quarter was $0.33, compared to $0.00 in the prior year.
• Adjusted net income per diluted share for the nine months ended October 1, 2026, was $0.00, compared to a net loss of $0.37 per diluted share in the prior year.
• Borrowings, gross, increased to $285.0 million as of October 1, 2026, from $12.0 million as of January 1, 2026.
• Total assets increased to $758.8 million as of October 1, 2026, from $490.6 million as of January 1, 2026.
• Total equity decreased to $319.6 million as of October 1, 2026, from $375.4 million as of January 1, 2026.
• Cinema advertising revenue for the quarter was $55.3 million, down from $59.5 million in the prior year.
• Office/residential advertising revenue for the quarter was $2.2 million, compared to $0 in the prior year.
• Total theater attendance for the nine months ended October 1, 2026, was 355.5 million, up from 296.4 million in the prior year.
• Total cinema advertising revenue per attendee for the nine months ended October 1, 2026, was $0.398, down from $0.470 in the prior year.
• Capital expenditures for the quarter were $1.0 million, down from $1.6 million in the prior year.
• Capital expenditures for the nine months ended October 1, 2026, were $2.1 million, down from $4.5 million in the prior year.

Guidance and Future Outlook:

• The Company raised its 2026 operational transformation savings target to more than $7.5 million.
• For the fourth quarter of 2026, the Company expects total revenue to be between $117.0 million and $124.0 million.
• For the fourth quarter of 2026, the Company expects Adjusted OIBDA to be between $42.0 million and $48.0 million.
• Management indicated early fourth-quarter trends are supported by a strong holiday theatrical slate and growing demand for Captivate's office and residential inventory.
• Future focus includes successfully integrating Captivate, realizing acquisition synergies, and reducing leverage.

Business Segments and Product Lines:

• Completed the acquisition of Captivate, consolidating results into financial statements as of September 18, 2026.
• The combined network now consists of approximately 48,000 digital screens across movie theaters, office buildings, and residential properties.
• The network operates in 185 Designated Market Areas, including all of the top 100.
• The Company operates 1,517 total office buildings within the Captivate advertising network as of October 1, 2026.
• NCM's Noovie® Show is presented exclusively in 38 leading national and regional theater circuits, including AMC Entertainment Inc., Cinemark Holdings, Inc., and Regal Entertainment Group.

Market and Competitive Landscape:

• The Company describes itself as a leading premium video and digital out-of-home advertising platform in the U.S.
• The platform connects advertisers to young, diverse, and affluent audiences in high-attention environments including theaters, elevators, and building lobbies.
• The Company's advertising platform includes the Spotlight and Captivate brands.

Risks and Challenges:

• Risks include the potential failure to realize cost savings, revenue synergies, or other anticipated benefits of the Captivate acquisition.
• Integration of Captivate may disrupt business operations and divert management attention.
• The Company assumes unknown or contingent liabilities related to the Captivate acquisition.
• There is a risk of impairment of goodwill and other intangible assets recorded due to the Captivate acquisition.
• Increased debt load incurred under the credit agreement entered into for the Captivate acquisition presents a risk.
• Future results depend on theater attendance, viewership of the Noovie® show, and the availability of major motion pictures.
• Competition for advertising expenditures may increase.
• Changes to ESA or network affiliate agreements and relationships with ESA Parties could impact enforcement and revenue.
• Macroeconomic conditions and changes in government regulations or trade policies could alter advertiser spending.
• Technological changes, cyberattacks, or system failures pose risks to data and property protection.
• The Company faces risks related to renewing or replacing expiring advertising contracts and retaining senior management.

Management Commentary and Tone:

• CEO Tom Lesinski stated that the Captivate acquisition significantly expanded reach, diversified advertising offerings, and created new opportunities to connect brands with audiences.
• Management expressed encouragement regarding early fourth-quarter trends across both networks.
• Lesinski expressed confidence in NCM's future and pride in accomplishments as he prepares to retire.
• The Company is focused on reducing leverage to drive sustainable growth and long-term shareholder value.

Other Key Points:

• CEO Tom Lesinski announced his retirement as part of a planned leadership transition, with an anticipated departure date of December 31, 2026.
• The Board of Directors has retained Korn Ferry to assist with a comprehensive search for the next Chief Executive Officer.
• The acquisition of Captivate resulted in significant acquisition and integration costs of $10.3 million for the quarter and $10.6 million for the nine months.
• A loss on re-measurement of the payable to ESA Parties under the tax receivable agreement of $36.4 million was recorded for the quarter and $36.1 million for the nine months.
• The Company hosts a conference call and audio webcast on November 10, 2026, at 5:00 P.M. Eastern Time.
• Adjusted OIBDA excludes depreciation, amortization, non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, acquisition and integration costs, and advisor fees related to the Cineworld Proceeding and Chapter 11 Case.