Financial Analysis

10. Commitments and License Rights Commitments - The Company has commitments for the completion of construction at various properties totaling approximately $5,002 at December 31, 2025. License Rights As of December 31, 2025, the Company had license rights to operate two hotels using the Hilton trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

8. Employee Benefit Plans The Company has a qualified profit-sharing retirement savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. The 401(k) plan is under the trusteeship of management. During fiscal 2024 and fiscal 2023, the first 2% of the matching contribution was made with the Companys common stock. Retirement savings plan expense was $2,715, $2,326 and $2,179 for fiscal 2025, fiscal 2024 and fiscal 2023, respectively. The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans, which are under the trusteeship of management. The Companys unfunded, nonqualified retirement plan includes two components. The first component is a defined-benefit plan that applies to certain participants. The second component applies to all other participants and provides an account-based supplemental retirement benefit. The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the consolidated balance sheets and recognizes changes in these amounts in the year in which changes occur through comprehensive income . The status of the Companys unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 31, 2025 and December 26, 2024 measurement dates is as follows: December 31, 2025 Decem …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

5. Long-Term Debt Long-term debt is summarized as follows: December 31, 2025 December 26, 2024 Senior notes $ 150,000 $ 160,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% 78 Payroll Protection Program loans 314 Revolving credit agreement 10,000 Total debt 160,000 160,392 Debt issuance costs (993) (1,252) Total debt, net of debt issuance costs 159,007 159,140 Less current maturities, net of issuance costs 10,133 Long-term debt $ 159,007 $ 149,007 Scheduled annual principal payments on long-term debt for the years subsequent to December 31, 2025, are as follows: Fiscal Year 2026 $ 2027 62,000 2028 27,714 2029 17,714 2030 17,714 Thereafter 34,858 $ 160,000 Credit Agreement On January 9, 2020, the Company replaced its then-existing credit agreement with several banks. On April 29, 2020, the Company entered into the First Amendment, on September 15, 2020, the Company entered into the Second Amendment, on July 13, 2021, the Company entered into the Third Amendment, on July 29, 2022, the Company entered into the Fourth Amendment, on February 10, 2023, the Company entered into the Fifth Amendment and on October 16, 2023, the Company entered into the Sixth Amendment (the Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and the Sixth Amendment, hereinafter referred to as the Credit Agreement). The Credit Agreement provides f …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The disaggregation of revenues by business segment for fiscal 2025, fiscal 2024 and fiscal 2023 is as follows: Fiscal 2025 Reportable Segment Theatres Hotels/Resorts Corporate Total Theatre admissions $ 220,385 $ $ $ 220,385 Rooms 114,544 114,544 Theatre concessions 197,856 197,856 Food and beverage 84,410 84,410 Other revenues (1) 41,449 58,666 448 100,563 Revenue before cost reimbursements 459,690 257,620 448 717,758 Cost reimbursements 3,051 37,649 40,700 Total revenues $ 462,741 $ 295,269 $ 448 $ 758,458 Fiscal 2024 Reportable Segment Theatres Hotels/Resorts Corporate Total Theatre admissions $ 214,421 $ $ $ 214,421 Rooms 113,344 113,344 Theatre concessions 191,989 191,989 Food and beverage 78,102 78,102 Other revenues (1) 39,999 56,900 331 97,230 Revenue before cost reimbursements 446,409 248,346 331 695,086 Cost reimbursements 1,314 39,160 40,474 Total revenues $ 447,723 $ 287,506 $ 331 $ 735,560 Fiscal 2023 Reportable Segment Theatres Hotels/Resorts Corporate Total Theatre admissions $ 229,186 $ $ $ 229,186 Rooms 106,618 106,618 Theatre concessions 197,653 197,653 Food and beverage 73,278 73,278 Other revenues (1) 31,555 53,519 346 85,420 Revenue before cost reimbursements 458,394 233,415 346 692,155 Cost reimbursements 37,420 37,420 Total revenues $ 458,394 $ 270,835 $ 346 $ 729,575 (1) Included in other revenues is an immaterial amount related to rental income that is not considered contract revenue from contracts with customers under ASC 606. …

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9. Income Taxes The components of the net deferred tax liability are as follows: December 31, 2025 December 26, 2024 Deferred tax assets Accrued employee benefits $ 13,230 $ 13,171 Operating lease liabilities 43,116 47,121 Gift card liabilities 5,701 6,030 Net operating loss, disallowed interest & tax credit carryforwards 23,150 18,784 Other 135 130 Total 85,332 85,236 Less valuation allowance (3,594) (3,583) Deferred tax assets 81,738 81,653 Deferred tax liabilities Depreciation and amortization (69,102) (68,767) Operating lease assets (37,092) (41,549) Deferred tax liabilities (106,194) (110,316) Net deferred tax liability $ (24,456) $ (28,663) Amounts recognized in the consolidated balance sheets consist of: Deferred income taxes - other assets $ 6,449 $ 3,956 Deferred income taxes - liabilities (30,905) (32,619) Net amount recognized $ (24,456) $ (28,663) As of December 31, 2025 and December 26, 2024, the Company had federal tax credit carryforwards of $9,067 and $3,010, respectively, and state tax credit carryforwards of $3,500 and $0, respectively. In fiscal 2025, the Company generated federal and state historic rehabilitation credits of $5,233 and $3,500, respectively, related to the renovation of the Hilton Milwaukee. In January 2026, the Company entered into a contract to sell the $3,500 state historic rehabilitation credits for $2,975 and recorded a valuation allowance of $525. As of December 31, 2025 and December 26, 2024, the Company had state net operating lo …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

6. Leases The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to accounting guidance ASC 842. The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. The Company leases real estate and equipment with lease terms of one year to 45 years, some of which include options to extend and/or terminate the lease. The exercise of lease renewal options is done at the Companys sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term and related right-of-use asset and lease liability. The depreciable life of the asset is limited to the expected term. The Companys lease agreements do not contain any residual value guarantees or any restrictions or covenants. Right-of-use assets represent the Companys right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in the lease in determining the present value of lease payments. When the lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements In fiscal 2025, the Company adopted ASU No. 2023-09, Income Taxes (Topic 740: Improvements to Income Tax Disclosures (ASU No. 2023-09 ), which requires improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid information. The annual requirements of ASU No. 2023-09 are included in the Companys Income Taxes footnote (Note 10) and prior year information has been recast to conform to the current year presentation. The adoption of the new standard did not have a material effect on the Companys consolidated financial statements. On November 4, 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires disaggregated disclosure of income statement expenses for public business entities. ASU No. 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU No. 2024-03 is effective for the Company in fiscal 2027. The Company is evaluating the effect the guidance will have on its consolidated financial statement disclosures. On September 18, 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-50): Targeted Improvements to the Accounting for Internal-Use Software (ASU No. 2025-06), which simplifies the capitalization g …

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2. Revenue Recognition Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance of obligations by transferring the promised services to the customer. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Companys progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. The amount of revenue recognized reflects the consideration entitled to in exchange for those services. The disaggregation of revenues by business segment for fiscal 2025, fiscal 2024 and fiscal 2023 is as follows: Fiscal 2025 Reportable Segment Theatres Hotels/Resorts Corporate Total Theatre admissions $ 220,385 $ $ $ 220,385 Rooms 114,544 114,544 Theatre concessions 197,856 197,856 Food and beverage 84,410 84,410 Other revenues (1) 41,449 58,666 448 100,563 Revenue before cost reimbursements 459,690 257,620 448 717,758 Cost reimbursements 3,051 37,649 40,700 Total revenues $ 462,741 $ 295,269 $ 448 $ 758,458 Fiscal 2024 Reportable Segment Theatres Hotels/Resorts Corporate Total Theatre admissions $ 214,421 $ $ $ 21 …

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12. Business Segment Information The Companys primary operations are reported in the following two business segments: movie theatres and hotels and resorts. The Marcus Corporations chief operating decision maker (CODM) is the Companys Chief Executive Officer. The measure of segment profit and loss the CODM uses to evaluate performance is operating income of each segment. The CODM uses this measure to evaluate trends and assess segment operating performance as compared to budget, historical periods, the industries each segment operates in and their competition in order to determine how to allocate resources to each segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Following is a summary of business segment information for fiscal 2025, fiscal 2024 and fiscal 2023: Theatres Hotels/Resorts Total Fiscal 2025 Total Revenues $ 462,741 $ 295,269 $ 758,010 Less: Costs and expenses Theatre operations 234,680 234,680 Rooms 43,624 43,624 Theatre concessions 82,169 82,169 Food and beverage 63,900 63,900 Advertising and marketing 6,752 19,080 25,832 Administrative 23,763 44,201 67,964 Depreciation and amortization 41,755 26,873 68,628 Rent 22,946 1,875 24,821 Property taxes 10,561 5,479 16,040 Impairment charges 5,172 5,172 Reimbursed costs 3,051 37,649 40,700 Other segment items (2) 2,455 38,172 40,627 Total costs and expenses 433,304 280,853 714,157 Operating income $ 29,437 $ 14,416 $ 43,853 Inv …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Long-Term Debt Long-term debt is summarized as follows: June 30, 2026 December 31, 2025 Senior notes $ 150,000 $ 150,000 Revolving credit agreement 10,000 Total debt 150,000 160,000 Debt issuance costs (884) (993) Total debt, net of debt issuance costs 149,116 159,007 Long-term debt $ 149,116 $ 159,007 Credit Agreement As of June 30, 2026, the Company has a Credit Agreement that provides for a revolving credit facility that matures on October 16, 2028 with an initial maximum aggregate amount of availability of $225,000. At June 30, 2026, there were no borrowings outstanding on the revolving credit facility, which when borrowed, bear interest at the secured overnight financing rate (SOFR) plus a margin (as discussed further below), approximately 5.39% at June 30, 2026. Availability under the $225,000 revolving credit facility was $219,286 as of June 30, 2026 after taking into consideration outstanding letters of credit that reduce revolver availability. Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) the term SOFR, plus a credit spread adjustment of 0.10%, subject to a 0% floor, plus a specified margin based upon the Companys net leverage ratio as of the most recent determination date, or (ii) the alternate base rate (ABR) (which is the highest of (a) the prime rate, (b) the greater of the federal funds rate and the overnight bank funding rate plus 0.50% or (c) the sum of 1% plus one-month SOFR plus a credit spread adjustment of 0.10%), subj …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The disaggregation of revenues by business segment for the three and six months ended June 30, 2026 is as follows: Three Months Ended June 30, 2026 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 72,557 $ $ $ 72,557 Rooms 33,706 33,706 Theatre concessions 65,264 65,264 Food and beverage 22,509 22,509 Other revenues (1) 12,025 14,537 112 26,674 Revenue before cost reimbursements 149,846 70,752 112 220,710 Cost reimbursements 802 10,232 11,034 Total revenues $ 150,648 $ 80,984 $ 112 $ 231,744 Six Months Ended June 30, 2026 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 117,382 $ $ $ 117,382 Rooms 54,168 54,168 Theatre concessions 104,829 104,829 Food and beverage 39,969 39,969 Other revenues (1) 19,849 28,334 185 48,368 Revenue before cost reimbursements 242,060 122,471 185 364,716 Cost reimbursements 1,516 19,916 21,432 Total revenues $ 243,576 $ 142,387 $ 185 $ 386,148 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The disaggregation of revenues by business segment for the three and six months ended June 30, 2025 is as follows: Three Months Ended June 30, 2025 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 62,348 $ $ $ 62,348 Rooms 29,632 29,632 Theatre concessions 57,611 57,611 Food and beverage 21,291 21,291 Other revenues (1) 11,045 13,634 111 24,790 Revenue before cost reimbursements 131,004 64,557 111 195,672 Cost reimbursements 646 9,72 …

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Share-Based Compensation During the six months ended June 30, 2026, the Company granted restricted stock, restricted stock units (RSUs) and performance stock units (PSUs) to certain executives and associates. A summary of the Companys stock option, restricted stock, RSU and PSU activity follows, with PSUs reflected at the target achievement percentage until the completion of the performance period (shares in thousands). Stock Options Restricted Stock & RSUs PSUs Options Weighted-Average Exercise Price Shares / Units Weighted-Average Fair Value Units Weighted-Average Fair Value December 31, 2025 2,709 $ 23.38 825 $ 15.85 233 $ 17.80 Granted 255 16.15 153 16.15 Exercised (1) (166) 16.79 Vested (2) (184) 15.79 Forfeited (92) 19.01 (2) 19.50 (14) 17.74 June 30, 2026 2,451 $ 24.00 894 $ 16.65 372 $ 17.12 (1) Exercise activity only applicable to stock options. (2) Vesting activity not applicable to stock options. Share-based compensation expense was $1,626 and $5,450, respectively, during the three and six months ended June 30, 2026, and $1,441 and $4,986, respectively, during the three and six months ended June 30, 2025. As of June 30, 2026, total unrecognized share-based compensation expense related to stock options was $325, which will be amortized to expense over the weighted-average remaining life of 0.8 years. As of June 30, 2026, total unrecognized share-based compensation expense related to non-vested restricted stock, RSUs and PSUs was $7,720, which will be amortized o …

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Income Taxes The Companys effective income tax rate for the three and six months ended June 30, 2026 was 33.9% and 50.8%, respectively, and was 27.3% and 32.7% for the three and six months ended June 30, 2025. The effective income tax rates in both the three and six months ended June 30, 2026 were negatively impacted by excess compensation subject to deduction limitations. The effective income tax rate for the six months ended June 30, 2026 was impacted by discrete tax items primarily related to the exercise of stock options. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to ASC 842, Leases . The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. The Company leases real estate and equipment with lease terms of one year to 45 years, some of which include options to extend and/or terminate the lease. The majority of the Companys lease agreements include fixed rental payments. For those leases with variable payments based on increases in an index subsequent to lease commencement, such payments are recognized as variable lease expense as they occur. Variable lease payments that do not depend on an index or rate, including those that depend on the Companys performance or use of the underlying asset, are also expensed as incurred. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Total lease cost consists of the following: Three Months Ended Six Months Ended Lease Cost Classification June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 625 $ 602 $ 1,246 $ 1,152 Interest on lease liabilities Interest expense 124 152 255 302 $ 749 $ 754 $ 1,501 $ 1,454 Operating lease costs: Operating lease costs Rent expense $ 5,596 $ 5,759 $ 11,214 $ 11,528 Variable lease cost Rent expens …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements - On November 4, 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires disaggregated disclosure of income statement expenses for public business entities. ASU No. 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU No. 2024-03 is effective for the Company in fiscal 2027. The Company is evaluating the effect the guidance will have on its consolidated financial statement disclosures. On September 18, 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal use Software (Subtopic 350-50): Targeted Improvements to the Accounting for Internal-Use Software (ASU No. 2025-06), which simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. ASU No. 2025-06 also supersedes the current website development costs guidance and incorporates the recognition requirements for website-specific development costs from ASC 350-50 into ASC 350-40. ASU 2025-06 is effective for the Company in fiscal 2028. The Company is evaluating the effect the guidance will have on its consolidated financial statements. On December 4, 2025, the FASB issued ASU 2025-10, Government Gra …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Business Segment Information The Companys primary operations are reported in the following two business segments: movie theatres and hotels and resorts. The Marcus Corporations chief operating decision maker (CODM) is the Companys Chief Executive Officer. The measure of segment profit and loss the CODM uses to evaluate performance is operating income of each segment. The CODM uses this measure to evaluate trends and assess segment operating performance as compared to budget, historical periods, the industries each segment operates in and their competition in order to determine how to allocate resources to each segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Following is a summary of business segment information for the three and six months ended June 30, 2026 and June 30, 2025: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Theatres Hotels/Resorts Total Theatres Hotels/Resorts Total Total Revenues $ 150,648 $ 80,984 $ 231,632 $ 131,650 $ 74,282 $ 205,932 Less: Costs and expenses Theatre operations 70,525 70,525 64,172 64,172 Rooms 11,785 11,785 11,086 11,086 Theatre concessions 26,180 26,180 23,337 23,337 Food and beverage 16,697 16,697 15,656 15,656 Advertising and marketing 1,575 5,158 6,733 1,794 4,804 6,598 Administrative 6,369 11,527 17,896 5,852 10,817 16,669 Depreciation and amortization 9,699 7,268 16,967 10,455 6,746 17,201 Rent 5,811 443 6,254 5,783 467 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing