Reading International — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues for Q2 2026 reached $66.9 million, an 11% increase from $60.4 million in Q2 2025, marking the highest second quarter total since Q2 2019.
• Operating income for Q2 2026 was $7.5 million, a 159% improvement from $2.9 million in Q2 2025, representing the highest quarterly result for this metric since Q2 2018.
• EBITDA for Q2 2026 grew to $11.3 million, a 79% increase from $6.3 million in Q2 2025; excluding the $1.8 million gain on asset sales in Q2 2025, Q2 2026 EBITDA represents the best second quarter since Q2 2019.
• Net income for Q2 2026 was $2.3 million, compared to a net loss of $2.8 million in Q2 2025; excluding Q2 2021 gains on real estate asset sales, this was the best second quarter since Q2 2019.
• Basic earnings per share (EPS) for Q2 2026 was $0.10, compared to a basic loss per share of $0.12 in Q2 2025.
• For the six months ended June 30, 2026, total revenues were $112.0 million, up 11% from $100.5 million in the prior period.
• Net operating income for the six months ended June 30, 2026, improved to $3.8 million from a net operating loss of $4.0 million in the prior period.
• EBITDA for the six months ended June 30, 2026, was $10.4 million, a 14% increase from $9.2 million in the prior period; the prior period included $8.4 million in gains on asset sales.
• Basic loss per share for the six months ended June 30, 2026, was $0.26, an improvement from $0.33 in the prior period.
• Net loss for the six months ended June 30, 2026, was $5.8 million, a 25% decrease from $7.8 million in the prior period.
• Cash and cash equivalents as of June 30, 2026, were $5.7 million.
• Total assets had a book value of $429.4 million as of June 30, 2026, down from $434.9 million as of December 31, 2025.
• Total short-term debt net of deferred finance costs was $108.0 million as of June 30, 2026, an increase of $72.0 million from December 31, 2025, due to Trust Preferred Securities and Emerald Creek Capital loans becoming due within the next twelve months.
• General and administrative costs were reduced by 19% globally in Q2 2026 compared to the prior year.

Guidance and Future Outlook

• Management expects the remainder of 2026, particularly the holiday season, to include additional record-setting weekends with the release of Avengers: Doomsday, Dune 3, and Jumanji 3.
• Management believes the company is well-positioned to deliver a strong 2026, citing a strong real estate portfolio and a robust movie slate.
• Momentum continued into Q3 2026 with new records set due to the success of Spider-Man: Brand New Day and The Odyssey.
• The Australian cinema circuit reported the highest and second-highest Gross Box Office days in its history on August 1 and August 2, 2026.
• The U.S. Cinema circuit delivered its highest three-day box office weekend on a same-store basis for the weekend of July 31, 2026.

Business Segments and Product Lines

• Cinema Business: Global cinema revenue was $63.0 million in Q2 2026, an 11% increase from Q2 2025, representing the highest quarterly result since Q4 2019. Segment operating income was $9.2 million, a 68% increase from Q2 2025.
  • Australia: Cinema revenue increased 31% in Q2 2026; the circuit set records for box office revenue, food and beverage revenue, total revenue, average ticket price (ATP), and food and beverage spend per patron (SPP).
  • United States: Delivered its highest second quarter segment operating income since Q2 2018 and its highest second quarter ATP in company history ($13.77). Attendance decreased due to the closure of two underperforming San Diego theaters and the underperformance of the Angelika NYC and other dedicated arthouses.
  • New Zealand: ATP reached $15.58 (functional currency) and F&B SPP reached $7.22, both achieving highest quarter ever.
  • Loyalty Programs: The Reading Rewards program in Australia crossed 40,000 paid members in Q2 2026.
• Real Estate Business: Global real estate revenue was $4.9 million in Q2 2026, a 4% increase from Q2 2025. Operating income was $1.6 million, a 7% increase.
  • U.S. Real Estate: Revenue was $1.9 million, an 11% increase from Q2 2025, driven by the Live Theatre division in NYC.
  • Portfolio Metrics: As of June 30, 2026, the combined Australian and New Zealand property portfolio had 58 third-party tenants, a 98% occupancy rate, and 156,173 SF of total leased gross lettable area.
  • Asset Monetization: The company continues working to monetize the Cinemas 123 property in New York City (owned 100% since December 2025) and the Newberry Yard train yard in Williamsport, PA.

Market and Competitive Landscape

• The Australian dollar strengthened by 10.8% against the U.S. dollar in Q2 2026, and the New Zealand dollar weakened by 1.5%. For the six months ended June 30, 2026, the Australian dollar strengthened by 10.8% and the New Zealand dollar strengthened by 1.1%.
• With 53% of total revenues generated by Australian and New Zealand businesses, the strengthening of these currencies positively impacted U.S. reported operating results.
• The company is working with global cinema landlords to align occupancy costs with current operating conditions to manage inflationary pressures and rising labor and operating costs, particularly in Hawaii.

Risks and Challenges

• Hawaii experienced a significantly higher increase in operating expenses compared to the U.S. Mainland.
• U.S. attendance decreased due to theater closures and the underperformance of specific arthouse locations.
• Forward-looking statements regarding operating results, movie release success, and refinancing capabilities are subject to inherent uncertainties and risks, including factors discussed in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Management Commentary and Tone

• CEO Ellen Cotter stated the company achieved its strongest second quarter operational results since pre-pandemic periods, powered by an 11% increase in global cinema revenue and a phenomenal movie lineup.
• Management credited global teams for executing strategic operational initiatives and noted that the Australian cinema circuit delivered its highest Operating Income since Q2 2018.
• Cotter expressed confidence that the company is well-positioned to deliver a strong 2026, citing a strong balance sheet anchored by real estate and an exciting movie slate.
• The tone was positive and confident, highlighting record-breaking box office days and revenue growth across multiple segments.

Other Key Points

• Debt Amendments: Several loan amendments were executed in 2026 to manage liquidity and maturity dates:
  • February 6, 2026: Deferred principal payment on 44 Union Square loan (paid March 13, 2026).
  • February 27, 2026: Modified principal repayment schedule on Bank of America/Bank of Hawaii facility.
  • March 31, 2026: Reduced NAB loan's minimum liquidity requirement for a limited period.
  • June 12, 2026: Extended Bank of America facility maturity to December 21, 2026.
  • August 11, 2026: Extended Santander loan facility maturity to October 1, 2026.
• Asset Sales: There were no asset sales in Q2 2026. Q2 2025 included a $1.8 million gain on the sale of the Cannon Park property in Australia. The first six months of 2025 included $8.4 million in gains from the sale of properties in Wellington, New Zealand, and Townsville, Australia.
• Conference Call: A pre-recorded conference call and audio webcast featuring CEO Ellen Cotter and CFO Gilbert Avanes will be posted on the corporate website on August 18, 2026.