NEW YORK, July 28, 2026, 3:57 p.m. EDT
- Shares of AMC Entertainment Holdings Inc. NYSE:AMC climbed 7.8% to $2.71 during late trading, bringing the stock’s two-day increase to approximately 19%.
- AMC has been raised to B- from CCC+ by S&P Global Ratings, with a stable outlook.
- AMC’s total number of shares is up 74% since December, while the company’s debt principal has dropped only 2.7%.
AMC stock continued to climb on Tuesday after a major credit upgrade, trading close to its session peak in the final moments before the close of Wall Street.
The upgrade signals that improved ticket sales are now impacting AMC’s balance sheet. However, the rebound contrasts for shareholders and creditors.
S&P upgraded AMC’s issuer rating by one level to B-, which remains below investment grade, citing better credit metrics and positive reported cash flow.
AMC posted significant operating improvements. Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortisation, after removing certain items.
| Measure | Latest period | Comparison period | Change |
|---|---|---|---|
| Q2 revenue | $1.597 billion | $1.398 billion | up 14.2% |
| Q2 adjusted EBITDA | $321.4 million | $189.5 million | rise of 69.6% |
| Q2 free cash flow | $190.1 million | $88.9 million | increase of $101.2 million |
| Shares outstanding | 892.6 million | 512.9 million at Dec. 31 | gained 74.0% |
| Debt principal | $3.914 billion | $4.024 billion at Dec. 31 | declined 2.7% |
This reflects significant operating leverage, as a 14% rise in revenue led to almost 70% growth in EBITDA.
AMC posted an adjusted EBITDA margin of 20.1%, an increase from 13.6%. Despite this, the company recorded a net loss of $11.4 million for the quarter.
Operating cash flow for the first half rose by $338.5 million, reaching a positive $106.9 million.
Even so, much of AMC’s increased cash reserves came from financing. The company raised $334.6 million in net equity proceeds in the first half.
AMC reported cash and restricted cash totaling $819.5 million at the close of June. The company’s principal borrowings totaled $3.91 billion.
An initial estimate shows that debt less cash totals approximately $3.1 billion. Based on the stated number of shares and Tuesday’s stock price, the equity is valued at around $2.4 billion. This means lenders continue to hold the greater financial claim.
The box office climate continues to be positive. AMC reported that The Odyssey achieved the highest IMAX revenue for the opening two weekends of any film.
By Sunday, the film’s North American total was close to $286 million. Global revenues neared $640 million, AMC reported, citing industry data.
Chief Executive Adam Aron stated that AMC’s focus on premium-format theaters was drawing customers “in record numbers.” AMC manages roughly 50% of IMAX screens across the U.S. AMC Entertainment Holdings, Inc.
The increase also outpaced key competitors. Cinemark Holdings Inc. NYSE:CNK advanced 3.2%, and IMAX Corp. NYSE:IMAX added 3.6%.
The upcoming challenge is to see if significant releases will keep cash generation strong. AMC has pointed to Spider-Man: Brand New Day as its upcoming major attraction.
Skepticism persists in the industry. Ross Benes of eMarketer noted that robust quarters “will happen now and again,” but expressed uncertainty over whether attendance will fully rebound. Reuters
Risks: AMC faces about $3.2 billion in principal coming due in 2029. Debt that is exchangeable could boost the share count. A softer lineup of movies has the potential to rapidly undo recent improvements in cash flow.
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