New York, July 29, 2026, 07:01 EDT
- AMC was last at $2.66 in premarket trade, down 0.4% from its Tuesday close.
- S&P upgraded AMC’s credit rating to B-, though it continues to project a cash shortfall in 2026.
- The number of shares outstanding increased by 74% over six months, as net principal debt decreased 13%.
AMC Entertainment Holdings, Inc. NYSE:AMC hovered close to $2.66 ahead of Wednesday’s market open. The stock rose 17.6% over Monday and Tuesday. Trading on the NYSE core session begins at 09:30 EDT.
S&P Global Ratings, a division of S&P Global Inc. NYSE:SPGI, raised AMC’s rating to B- from CCC+. The agency maintained its stable outlook, noting operational improvements and stronger credit metrics.
This represents significant credit improvement, but it does not yet indicate a full shift to equity.
AMC’s cash inflow during the second quarter largely offset the cash depletion from the first quarter. Achieving the stronger balance sheet, however, depended heavily on additional equity issuance.
AMC generated $190.1 million in free cash flow in the second quarter. Free cash flow for the first half stood at just $15.4 million. This indicates a $174.7 million outflow in the first quarter, based on company disclosures.
S&P projects that the domestic box office will near $10 billion in revenue this year. The agency, however, anticipates AMC will post a small cash shortfall in 2026. Positive free cash flow on a consistent basis is forecast beginning in 2027.
Company filings highlight the gap between operational recovery and capital dilution:
| Metric | Latest period | Comparison period | Change |
|---|---|---|---|
| Q2 revenue | $1.597 billion | $1.398 billion | +14.2% |
| Q2 adjusted EBITDA | $321.4 million | $189.5 million | +69.6% |
| Adjusted EBITDA margin | 20.1% | 13.6% | +6.5 points |
| First-half free cash flow | $15.4 million | -$328.1 million | +$343.5 million |
| Shares outstanding | 892.6 million | 512.9 million | +74.0% |
| Net principal debt | $3.136 billion | $3.596 billion | -12.8% |
Quarterly and first-half results are measured against those of 2025. Balance-sheet items compare June 30 to December 31. Net principal debt is calculated by subtracting unrestricted cash from principal borrowings.
Operating leverage was evident. Adjusted EBITDA—a non-GAAP metric for profit—increased at a pace almost five times that of revenue. Chief Executive Adam Aron referred to it as “the inherent operating leverage in our business model.” SEC
Premium screens drove additional gains. The Odyssey delivered the best-ever opening two weeks for an AMC title in IMAX Corporation NYSE:IMAX formats. AMC controls roughly half of the IMAX screens in the United States.
AMC posted a 13.0% rise in U.S. revenue in the second quarter, while the domestic box office saw a 10.7% increase. The company’s average screen count slipped 1.6%, indicating a more efficient utilization of its current assets.
The price was dilution. AMC’s number of shares rose to 892.6 million from 512.9 million. Net principal debt dropped roughly $460 million, aided by a $350 million rise in cash.
The restructuring delayed anticipated significant maturities to 2029. Reduced leverage brought down interest rates on a large portion of AMC’s liabilities. S&P projects that yearly cash interest payments remain above $450 million.
Tuesday’s 6.37% rise outperformed two immediate competitors. Cinemark Holdings, Inc. NYSE:CNK advanced 4.16%, while Marcus Corporation NYSE:MCS added 1.88%. AMC’s trading volume hit 61.8 million shares, surpassing its 50-day average.
The outlook for sustained cinema demand is still debated. “Strong quarters, like this one, will happen now and again. But the industry’s struggles will remain,” eMarketer analyst Ross Benes said. Reuters
The upcoming demand test takes place on Friday. Spider-Man: Brand New Day makes its debut July 31, with The Odyssey continuing its run on premium screens. Cinemark is set to announce its second-quarter earnings on Thursday.
Risks persist. AMC has roughly $850 million in yearly rent obligations, in addition to its interest expenses. The company’s filing also cautions that issuing more shares in the future could lead to further dilution for shareholders.
At present, AMC’s credit profile has strengthened more rapidly than its per-share performance. Wednesday’s session will reveal if investors are willing to bridge that discrepancy.
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