National CineMedia : Q1'26 Earnings Supplemental Presentation

Published: 2026-05-13 17:21:45 ET NCMI

Published on 05/13/2026 at 05:21 pm EDT

Supplemental Presentation

May 12, 2026

Non-GAAP Financial Measures

Adjusted OIBDA, Unlevered Free Cash Flow and Adjusted Operating Expense

Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA"), Unlevered free cash flow and Adjusted Operating Expense are not financial measures calculated in accordance with GAAP in the United States.

Adjusted OIBDA represents operating income before depreciation and amortization expense adjusted to also exclude non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration related costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 case. Our management use this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different depreciation and amortization policies, non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration related costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 case , Spotlight acquisition and transition related costs, interest rates, debt levels or income tax rates.

Adjusted Operating Expense represents operating expense adjusted to exclude depreciation and amortization expense, non-cash share-based compensation costs, impairment of long-lived assets, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 case. Our management use this non-GAAP financial measure to evaluate operating performance, and to forecast future results. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different depreciation and amortization policies, non-cash share-based payment costs, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 Case, interest rates, debt levels or income tax rates.

A limitation of both of these measures, however, is that they exclude depreciation and amortization, which represent a proxy for the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in NCM LLC's business. In addition, Adjusted OIBDA and Adjusted Operating Expense have the limitation of not reflecting the effect of the Company's depreciation, amortization, non-cash share-based compensation costs, impairment of long-lived assets, workforce and system transformation costs, satellite transition costs, Spotlight acquisition and integration costs and advisor fees related to involvement in the Cineworld Proceeding and Chapter 11 case. Adjusted OIBDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should it be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to Adjusted OIBDA, and operating expense is the most directly comparable GAAP financial measure to Adjusted Operating Expense. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in NCM LLC's debt agreement.

Unlevered free cash flow is net cash provided by or used in operating activities reduced by purchases of property and equipment, adjusted to exclude cash interest expense. Our management use this non-GAAP financial measure to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes this is an important supplemental measure of operating performance because it eliminates items that have less bearing on its operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different cash flow policies.

A limitation of this measure, however, is that it excludes purchases of property and equipment and cash interest expense. Unlevered free cash flow has the limitation of not reflecting the effect of the Company's cash interest expense and purchases of property and equipment. Unlevered free cash flow should not be regarded as an alternative to net cash provided by or used in operating activities or as indicators of operating performance, nor should it be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that net cash provided by or used in operating activities is the most directly comparable GAAP financial measure to unlevered free cash flow. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in NCM LLC's debt agreement.

The Company has not provided a reconciliation of the forward-looking non-GAAP Adjusted OIBDA measure to forward-looking GAAP operating income due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, including the timing of revenue and charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant and are difficult to reasonably predict. Accordingly, a reconciliation of this non-GAAP measure is not available without unreasonable effort.

1Q'26 attendance of 83M was up 15% vs. 1Q'25, driven by the addition of Spotlight attendance into the NCM network

1Q'26 revenue of $34.0M decreased 3% vs. $34.9M in 1Q'25, primarily due to increased competition for ad spend from

the Winter Olympics, coupled with the one-week fiscal period shift

Adjusting for the fiscal period shift and including Spotlight on a pro forma basis in the prior-year period, National revenue of $27.5M decreased 2%, while Local revenue of $4.4M increased 12% on a comparable basis

1Q'26 operating expenses increased 4% to $60.9M from $58.8M in 1Q'25, while operating loss widened to $(26.9)M from

$(23.9)M

Excluding non-cash charges and one-time items, adj. operating expenses increased to $44.5M from $43.9M in 1Q'25, primarily driven

by higher attendance-related costs

1Q'26 Adj. OIBDA of $(10.5)M decreased from $(9.0)M in 1Q'25, driven by higher attendance-related costs, partially offset by cost savings initiatives

1Q'26 Unlevered Free Cash Flow increased to $18.1M from $5.5M in 1Q'25, driven by working capital normalization

In 2026, NCM repurchased 0.2M shares at an average price of $3.93 per share, totaling $0.8M

Cumulative repurchases total 6.9M shares at an average price of $5.26 per share, totaling $36.6M

Declared a quarterly dividend of $0.03 per share (or $2.8M) on 5/12/2026, payable 6/4/2026 to stockholders of record as of 5/22/2026

1Q'26 Revenue 1Q'26 Adjusted OIBDA

$32.5

$36.5

$34.0

($13.0)

($10.0)

($10.5)

Management Guidance

Low High

Actual

Low High

Management Guidance

Actual

Ǫuarter Ended

(in millions, unaudited)

March 27,

June 26,

September 25,

January 1,

April 2,

2025

2026

Attendance

72.3

115.3

108.7

107.4

83.2

Revenue

$34.G

$51.8

$63.4

$G3.2

$34.0

Operating Expenses

Network Operating Costs

3.1

3.2

3.5

4.0

Theater Exhibition Fees

21.7

30.9

32.3

33.6

24.6

Selling And Marketing Costs

10.7

9.8

10.1

11.1

9.5

Administrative And Other Costs

12.9

10.6

12.1

13.3

Depreciation Expense

1.1

1.3

1.5

Amortization Expense

9.3

8.2

7.9

7.8

8.0

Total

58.8

63.8

65.2

69.4

60.9

Operating Loss

$(23.G)

$(12.0)

$(1.8)

$23.8

$(26.G)

Revenue Results Ǫuarter Ended

March 27,

2025

June 26,

2025

September 25,

2025

January 1,

2026

April 2,

2026

National Advertising Revenue

$27.4

$41.2

$49.9

$76.0

$27.5

Local And Regional Advertising Revenue

4.9

6.4

9.6

13.8

4.4

Total Advertising Revenue Excluding Beverage

32.3

47.6

5G.5

8G.8

31.G

ESA Advertising Revenue From Beverage Concessionaire Agreements

2.6

4.2

3.9

3.4

2.1

Total Revenue

$34.G

$51.8

$63.4

$G3.2

$34.0

Ǫuarter Ended

(in millions, unaudited) March 27,

June 26,

September 25,

January 1,

April 2,

2025

2026

Operating income (loss)

$(23.G)

$(12.0)

$(1.8)

$23.8

$(26.G)

Depreciation expense

1.1

1.3

1.5

Amortization expense

9.3

8.2

7.9

7.8

8.0

Share-based compensation costs (1)

2.7

2.9

1.7

2.0

1.7

Workforce and system transformation costs (2)

0.2

0.4

1.5

1.8

4.7

Satellite transition costs (3)

0.1

Advisor fees and expenses related to the Cineworld proceeding and Chapter 11 case (4)

1.6

0.1

(0.2)

0.1

Spotlight acquisition and integration costs (5)

0.4

0.3

Adjusted OIBDA

$(G.0)

$0.7

$10.2

$37.2

$(10.5)

Net cash provided by/(used in) operating activities

$6.1

$(5.0)

$(1.0)

$8.3

$18.1

Purchases of property and equipment

(0.7)

(1.8)

(0.9)

(2.2)

(0.3)

Cash interest expense

0.1

0.3

Unlevered free cash flow

$5.5

$(6.8)

$(1.8)

$6.1

$18.1

Notes:

Share-based compensation costs are included in 'network operating costs', 'selling and marketing costs' and 'administrative and other costs' in the Company's unaudited Condensed Consolidated Financial Statements .

Workforce and system transformation costs represent charges incurred related to a transformation initiative to increase operational efficiencies and allow for ultimate automation of certain functions introduced in the first quarter of 2026. In 2025, these represent

redundancy costs associated with changes to the Company's workforce, as well as related office relocations, a one-time assessment of the technology surrounding the Company's programmatic offerings and an assessment of operating efficiencies.

One-time duplicative costs incurred during the transition from satellite to broadband network delivery during 2026.

Advisor and legal fees and expenses incurred in connection with the Company's involvement in the Cineworld Proceeding and Chapter 11 Case and related appeals, as well as insurance and retention related expenses.

Advisor and legal fees incurred in connection with the acquisition of Spotlight in the fourth quarter of 2025, as well as, temporary transition costs incurred during the integration of Spotlight into the Company's processes during the first quarter of 2026.

Ǫuarter Ended

(in millions, unaudited)

March 27,

2025

June 26,

2025

September 25,

2025

January 1,

2026

April 2,

2026

Operating expense

$58.8

$63.8

$65.2

$6G.4

$60.G

Depreciation expense

(1.1)

(1.3)

(1.5)

Amortization expense

(9.3)

(8.2)

(7.9)

(7.8)

(8.0)

Share-based compensation costs (1)

(2.7)

(2.9)

(1.7)

(2.0)

(1.7)

Workforce and system transformation costs (2)

(0.2)

(0.3)

(1.5)

(1.8)

(4.7)

Satellite transition costs (3)

(0.1)

Advisor fees and expenses related to the Cineworld and Chapter 11 case (4)

proceeding

(1.6)

(0.1)

0.2

(0.1)

Spotlight acquisition and integration costs (5)

(0.4)

(0.3)

Adjusted Operating Expense

$43.G

$51.1

$53.2

$56.1

$44.5

Notes:

represent redundancy costs associated with changes to the Company's workforce, as well as related office relocations, a one-time assessment of the technology surrounding the Company's programmatic offerings and an assessment of operating efficiencies.

One-time duplicative costs incurred during the transition from satellite to broadband network delivery during 2026.

Adjusted national revenue and adjusted local revenue to a comparable basis are not financial measures calculated in accordance with GAAP in the United States.

Adjusted national and local revenue represents revenue adjusted to account for the shifted fiscal period and pro forma to include Spotlight revenue in the prior period. Our management use this non-GAAP financial measure to evaluate operating performance and to forecast future results. The Company believes this is an important supplemental measure of operating performance because it highlights trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of this measure is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that may have different fiscal periods and pro forma to include Spotlight revenue in the prior period.

A limitation of this measure, however, is that it excludes revenue from the week of adjustment to a comparable fiscal period and includes pro forma Spotlight revenue. Adjusted revenue has the limitation of not reflecting the Company's total revenue. Adjusted revenue should not be regarded as an alternative to National revenue or Local revenue or as indicators of operating performance, nor should it be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that National revenue and Local revenue is the most directly comparable GAAP financial measure to adjusted national revenue and adjusted local revenue. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in NCM LLC's debt agreement.

Ǫuarter Ended

(in millions, unaudited) March 27,

2025

National Revenue $27.4

Ǫuarter Ended

(in millions, unaudited) March 27,

2025

Local Revenue $4.G

Adjustment for fiscal period shift and pro forma to include

Spotlight in 1Q'25

0.8

Adjustment for fiscal period shift and pro forma to include

Spotlight in 1Q'25

(1.0)

Adjusted National Revenue $28.2 Adjusted Local Revenue $3.G

Chan Park [email protected] [email protected]

Disclaimer

National CineMedia Inc. published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2026 at 21:20 UTC.