Amc Entertainment Holdings, Inc. (AMC)

Price$2.84Cached quoteAs of 2026-10-05 15:56 UTC

AI: Overvalued

Price checkThe shares look cheap by price alone, but the business value is expensive after debt.

Using the latest quote and 892.6 million shares, AMC’s equity value is roughly $2.3 billion. Adding $7.7 billion of debt and subtracting $0.8 billion of cash gives enterprise value of about $9.2 billion, or roughly 17 times the latest four-quarter reported EBITDA of about $540 million. That is a demanding multiple for a company with negative annual earnings and negative full-year operating cash flow. The valuation only works if the recent recovery becomes durable.

Big pictureAMC is recovering quickly, but its cash generation remains too uneven to make the turnaround secure.

Revenue reached $4.85 billion in 2025, while reported EBITDA improved to $296 million from $240 million in 2024; however, net loss widened to $632 million and operating cash flow was negative $120 million. The first half of 2026 was much better: revenue rose 16.9%, adjusted EBITDA reached $360 million, and free cash flow—cash left after operations and investment—was $15 million. Movie attendance depends on the release calendar, and recent swings show meaningful cyclicality.

Business strengthDebt reduction helps survival, yet negative equity and rapid share growth leave common shareholders with little protection.

At June 30, debt was $7.7 billion against $778 million of cash, leaving net debt near $6.9 billion; total liabilities were $9.5 billion versus assets of $8.0 billion, so book equity remained negative $1.45 billion. Shares outstanding rose to 892.6 million from 512.9 million at 2025 year-end, after a 105.3 million-share ATM sale, a 95.25 million-share direct offering, and note conversions. Refinancing pushed major maturities out, but dilution is the recurring price of liquidity.

What could change the storyThe bull case needs sustained blockbuster attendance and lower borrowing costs, while one weak film cycle could reopen funding pressure.

The strongest upside path is three or four years of near-record releases, premium-screen pricing, food sales, and operating leverage that lifts EBITDA well above the recent run rate while refinancing lowers interest. The bear case is a softer release slate: film costs still took 48.3% of first-half admissions revenue, and AMC says historical cash-burn rates are not sustainable long term. A value case improves if annual free cash flow becomes consistently positive without new shares; it weakens if equity funding resumes. The current valuation therefore requires unusually favorable execution.

AI: News

Record second quarterAMC posted its strongest quarter ever, showing that a powerful movie slate can rapidly improve cash generation.

On July 20, AMC reported second-quarter revenue of $1.60 billion, up 14.2% year over year, and adjusted EBITDA of $321.4 million, up 69.6%. Operating cash flow was $235.4 million and free cash flow was $190.1 million, compared with $88.9 million a year earlier. Net loss nevertheless remained $11.4 million. The numbers likely strengthened recovery expectations, although one exceptional quarter does not prove a durable earnings base.

Debt-for-equity tradeAMC extended near-term debt maturities, but it funded that relief by issuing a large number of new shares.

On June 25, AMC closed a $200 million direct offering of 95.25 million shares and planned to redeem $125.5 million of notes due 2027, reducing annual cash interest by about $7.7 million and leaving no material principal maturities expected before 2029. On June 11, it also completed a $150 million ATM sale of roughly 105.3 million shares. The balance-sheet benefit is tangible; the per-share benefit is uncertain because ownership was spread across many more shares.

Historic box-office weekendA blockbuster weekend confirmed strong customer demand, but its benefit depends on a steady pipeline of successful films.

AMC said August 3 that more than 10.2 million people attended its theaters and ODEON locations from Wednesday through Sunday, producing record company-wide admissions and food-and-beverage revenue. The result followed Spider-Man: Brand New Day and The Odyssey, showing the leverage from premium formats and concessions when audiences turn up. It supports the recovery thesis, but management’s own release slate—not AMC alone—controls much of the traffic, so the signal is encouraging rather than permanent.

Strong summer box officeThe broader summer surge supports AMC’s near-term sales outlook, though attendance remains below old industry peaks after inflation.

AP reported on September 4 that domestic summer ticket sales reached $4.61 billion from May through August, 26.1% above 2025 and the strongest summer in a decade by nominal revenue. AP also noted that admissions remained well below pre-pandemic levels after adjusting for higher ticket prices. This is useful context for AMC’s second-quarter and weekend records: demand is recovering, but the industry still depends on hit-driven volume rather than a fully restored baseline.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$4.85B	$4.64B	$4.81B	$3.91B	$2.53B	$1.24B	$5.50B	$5.46B	$5.08B	$3.24B	$2.95B	$2.70B	$2.75B
Gross profit	$3.25B	$3.09B	$3.21B	$2.63B	—	—	—	—	—	$2.15B	—	—	—
Gross margin	66.96%	66.69%	66.62%	67.27%	—	—	—	—	—	66.33%	—	—	—
Operating expenses	$4.87B	$4.72B	$4.89B	$4.43B	$3.46B	$5.35B	$14.8M	$5.20B	$4.98B	$3.02B	$2.71B	$2.52B	$2.56B
Operating income	−$17.4M	−$79.3M	−$74.3M	−$522.3M	−$930.0M	−$4.10B	$136.0M	$265.0M	$102.0M	$213.6M	$237.1M	$175.1M	$189.0M
Operating margin	−0.36%	−1.71%	−1.54%	−13.35%	−36.79%	−330.22%	2.47%	4.85%	2.01%	6.60%	8.05%	6.50%	6.87%
EBITDA	$296.0M	$240.2M	$290.7M	−$126.3M	−$505.0M	−$3.60B	$586.0M	$802.8M	$640.6M	$481.8M	$470.1M	$391.4M	$386.6M
EBITDA margin	6.10%	5.18%	6.04%	−3.23%	−19.98%	−290.12%	10.65%	14.70%	12.61%	14.89%	15.95%	14.52%	14.06%
Net income	−$632.4M	−$352.6M	−$396.6M	−$973.6M	−$1.27B	−$4.59B	−$149.1M	$110.1M	−$487.2M	$111.7M	$103.9M	—	—
Net profit margin	−13.04%	−7.60%	−8.24%	−24.89%	−50.20%	−369.37%	−2.71%	2.02%	−9.59%	3.45%	3.53%	—	—
Basic EPSper basic share	-$1.34	-$1.06	-$2.37	-$9.29	-$13.29	-$195.80	-$14.40	$9.10	-$38.00	$11.30	$10.60	$6.60	$47.60
Diluted EPSper diluted share	-$1.34	-$1.06	-$2.37	-$9.29	-$13.29	-$195.80	-$14.40	$4.10	-$38.00	$11.30	$10.60	$6.60	$47.60