Q2 2026 Marcus Corp Earnings Call Transcript
Key Points
- Consolidated revenues of $232 million were up 12.5% compared to the prior year quarter, with operating income more than doubling to $27 million.
- Adjusted EBITDA increased 43% to $46.2 million, setting a new post-pandemic second-quarter record.
- Theater division outperformed the industry with admission revenue growth of 16.6% versus the US box office increase of 11.5%.
- Hotel division achieved record second-quarter revenue and adjusted EBITDA, with RevPAR growth of 13.9% and outperformance of its competitive set by 6.1 percentage points.
- Free cash flow nearly tripled to $44 million in the second quarter, with total liquidity of over $245 million and net leverage of 1.1 times.
- Theater attendance recovery remains below pre-pandemic levels, with the business still dependent on a strong film slate to drive performance.
- Hotel division's RevPAR growth was partially inflated by the prior-year renovation impact at Hilton Milwaukee, estimated at 4.4 percentage points.
- Visibility in the hotel business is short-term, with transient demand subject to volatility in travel costs like gas prices and airfare.
- Capital expenditures are expected to decrease to $45-$50 million for 2026, potentially limiting growth investments in both divisions.
- The company faces ongoing uncertainty in consumer behavior, particularly among older demographics who may wait for streaming releases rather than visiting theaters.
Thank you. Good morning, everyone, and welcome to Marcus Corporation's second-quarter earnings conference call. My name is Jonathan, and I will be your operator for today. (Operator Instructions) As a reminder, this conference is being recorded. Joining us today are Greg Marcus, Chairman, President and Chief Executive Officer, and Chad Paris, Chief Financial Officer and Treasurer of the Marcus Corporation.
At this time, I'd like to turn the program over to Mr. Paris for his opening remarks. Please go ahead, sir.
Good morning and welcome to our 2026 second quarter conference call. I need to begin by stating that we plan to make a number of forward-looking statements on our call today, which may be identified by our use of words such as believe, anticipate, expect, or other similar words. risks and uncertainties, which may cause our actual results to differ materially from those expected or projected in our forward-looking statements.
These statements are only made as of the date of
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