Financial Analysis

NOTE 5CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES A summary of the carrying value of corporate borrowings and finance lease liabilities is as follows: (In millions) June 30, 2026 December 31, 2025 Secured Debt: Credit Agreement-Term Loans due 2029 (10.639% as of June 30, 2026 and 10.731% as of December 31, 2025) $ 1,984.2 $ 1,994.2 Odeon Credit Agreement-10.5% Term Loans due 2031 425.0 Senior Secured Notes due 2029 (9.0% cash interest & 6.0% PIK interest as of June 30, 2026 and December 31, 2025) 903.4 877.1 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 116.1 111.6 7.5% First Lien Notes due 2029 360.0 360.0 Unsecured/Retired Debt: 6.125% Senior Subordinated Notes due 2027 125.5 125.5 12.75% Odeon Senior Secured Notes due 2027 400.0 Senior Secured Exchangeable Notes due 2030 (1.5% cash interest) 155.8 Total principal amount of corporate borrowings $ 3,914.2 $ 4,024.2 Finance lease liabilities 52.6 52.5 Accrued paid-in-kind interest 2.8 2.7 Deferred financing costs (75.8) (64.4) Net discount (1) (4.9) (68.5) Bifurcated embedded derivative Senior Secured Exchangeable Notes due 2030 131.9 Bifurcated embedded derivative 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 15.3 12.6 Total carrying value of corporate borrowings and finance lease liabilities $ 3,904.2 $ 4,091.0 Less: Current maturities of corporate borrowings (148.9) (19.9) Current maturities of finance lease liabilities (7.4) (5.8) Total noncurrent carrying value …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended Six Months Ended (In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Major revenue types Admissions $ 863.1 $ 762.6 $ 1,441.5 $ 1,236.1 Food and beverage 576.1 499.6 923.4 783.0 Other theatre: Ticket fees 72.7 56.0 113.1 86.5 Advertising 43.3 37.8 80.6 68.4 Other 41.5 41.9 83.5 86.4 Other theatre 157.5 135.7 277.2 241.3 Total revenues $ 1,596.7 $ 1,397.9 $ 2,642.1 $ 2,260.4 Three Months Ended Six Months Ended (In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Timing of revenue recognition Products and services transferred at a point in time $ 1,459.1 $ 1,282.8 $ 2,378.5 $ 2,042.1 Products and services transferred over time (1) 137.6 115.1 263.6 218.3 Total revenues $ 1,596.7 $ 1,397.9 $ 2,642.1 $ 2,260.4 (1) Amounts primarily include subscription and advertising revenues. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 8FAIR VALUE MEASUREMENTS Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the entity transacts business. The inputs used to develop these fair value measurements are established in a hierarchy, which ranks the quality and reliability of the information used to determine the fair values. The fair value classification is based on levels of inputs. Assets and liabilities that are carried at fair value are classified and disclosed in one of the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements. The following table summarizes the Companys financial instruments carried at fair value on a recurring basis as of June 30, 2026: Fair Value Measurements at June 30, 2026 Using Significant Total Carrying Quoted prices in Significant other unobservable Value at active market observable inputs inputs (In millions) June 30, 2026 (Level 1) (Level 2) (Level 3) Corporate Borrowings: Bifurcated embedded derivative - 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 $ 15.3 $ $ $ 15.3 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 embedded derivative. The Existin …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 4GOODWILL The following table summarizes the changes in goodwill by reporting unit for the six months ended June 30, 2026: U.S. Markets International Markets Consolidated Goodwill (In millions) Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Balance December 31, 2025 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,705.2 $ (1,085.6) $ 619.6 $ 4,777.8 $ (2,361.7) $ 2,416.1 Currency translation adjustment (57.2) 18.7 (38.5) (57.2) 18.7 (38.5) Balance June 30, 2026 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,648.0 $ (1,066.9) $ 581.1 $ 4,720.6 $ (2,343.0) $ 2,377.6 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7INCOME TAXES The Companys worldwide effective income tax rate is based on actual income (loss), statutory rates, valuation allowances against deferred tax assets and tax planning opportunities available in the various jurisdictions in which it operates. The Company intends to compute quarterly tax expense based on an annual effective rate in future interim periods when more reliable estimates of annual income become available. The Company recognizes income tax-related interest expense and penalties as income tax expense and general and administrative expense, respectively. The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods on a federal, state, and foreign jurisdiction basis. The Company conducts its evaluation by considering all available positive and negative evidence, including historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. motion picture and broader economy, among others. A valuation allowance is recorded against the Companys U.S. deferred tax assets and most of the Companys international deferred tax assets as the Company has determined the realization of these assets do …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 3REVENUE RECOGNITION Disaggregation of Revenue. Revenue is disaggregated in the following tables by major revenue types and by timing of revenue recognition: Three Months Ended Six Months Ended (In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Major revenue types Admissions $ 863.1 $ 762.6 $ 1,441.5 $ 1,236.1 Food and beverage 576.1 499.6 923.4 783.0 Other theatre: Ticket fees 72.7 56.0 113.1 86.5 Advertising 43.3 37.8 80.6 68.4 Other 41.5 41.9 83.5 86.4 Other theatre 157.5 135.7 277.2 241.3 Total revenues $ 1,596.7 $ 1,397.9 $ 2,642.1 $ 2,260.4 Three Months Ended Six Months Ended (In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Timing of revenue recognition Products and services transferred at a point in time $ 1,459.1 $ 1,282.8 $ 2,378.5 $ 2,042.1 Products and services transferred over time (1) 137.6 115.1 263.6 218.3 Total revenues $ 1,596.7 $ 1,397.9 $ 2,642.1 $ 2,260.4 (1) Amounts primarily include subscription and advertising revenues. The following tables provide the balances of receivables, net and deferred revenues and income: (In millions) June 30, 2026 December 31, 2025 Current assets Receivables related to contracts with customers $ 49.1 $ 95.1 Miscellaneous receivables 76.5 60.9 Receivables, net $ 125.6 $ 156.0 (In millions) June 30, 2026 December 31, 2025 Current liabilities Deferred revenues related to contracts with customers $ 446.7 $ 462.4 Miscellaneous deferred income 5.9 3.1 Deferred revenues and income $ 452.6 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 9SEGMENT REPORTING The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting , which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. Management has organized the Company around differences in geographic areas. The Company has identified two reportable segments for its theatrical exhibition operations, U.S. markets and International markets. The International markets reportable segment has operations in, or partial interest, in theatres in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Norway, and Denmark. The measure of segment profit and loss the Companys chief operating decision maker uses to evaluate performance and allocate resources is Adjusted EBITDA. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Companys ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets. The Company does not report asset information by segment because that information is not used to evaluate the performance of or allocate resources between segments. During the first quarter of 2026, the Co …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6STOCKHOLDERS DEFICIT Share Issuances In June 2026, the Company entered into a securities purchase agreement (the Purchase Agreement) with certain institutional investors (the Investors) for the sale of 95,250,000 shares of Common Stock in a registered direct offering (the Offering), at a purchase price of $2.10 per share. The Offering closed on June 24, 2026. In connection with the Offering, the Company entered into a placement agency agreement (the Placement Agency Agreement) on June 23, 2026 with Roth Capital Partners, LLC (the Placement Agent), as exclusive placement agent in connection with the Offering. As compensation to the Placement Agent, the Company paid the Placement Agent a cash fee of 5.5% of the aggregate gross proceeds raised in the Offering and reimbursed certain expenses. The below table summarizes the activity during the six months ended June 30, 2026 related to the Offering: Six Months Ended (In millions) June 30, 2026 Shares issued direct offering 95.3 Direct offering gross proceeds $ 200.0 Placement fees paid $ 11.0 Other third-party issuance costs incurred $ 0.2 Other third-party issuance costs paid $ 0.2 In February 2026, the Company entered into a sales and registration agreement (the 2026 Sales and Registration Agreement) with Goldman Sachs & Co. LLC, B. Riley Securities, Inc. and Yorkville Securities, LLC, from time to time acting as sales agents (in such capacity, the Sales Agents) relating to shares of Common Stock of the Company having a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing