Cineplex is seeing Canadian moviegoers return to theatres in greater numbers while spending record amounts once they get there, with rapidly growing merchandise sales emerging as a new retail opportunity for the country’s largest cinema operator.
The Toronto-based company reported second-quarter revenue of $383.7 million, up 9.8% year-over-year and the highest Q2 revenue in its history, as theatre attendance increased 9.3% to 12.7 million guests. Adjusted EBITDA rose 20.4% to $40.8 million. The momentum has accelerated since the quarter ended, with Cineplex President and CEO Ellis Jacob telling analysts that the company had just recorded the highest-grossing week in its history, more than 20% ahead of its previous record set during the December 2015 release of Star Wars: The Force Awakens.
Cineplex is also generating more revenue from each visit. Box-office revenue per patron reached an all-time quarterly record of $13.91, while concession revenue per patron increased to a record $10.26. Theatre food-service revenue rose 11.8% to an all-time quarterly high of $130 million, with merchandise becoming an increasingly important part of that spending.
Movie Merchandise Sales Rise 45%
Merchandise sales increased 45% year-over-year during the quarter and reached a new quarterly record. Cineplex generated approximately $4 million from merchandise in Q2, with the category accounting for roughly one-third of the growth in concession revenue per patron. Products tied to major movie releases included collectibles from The Super Mario Galaxy Movie and Star Wars: The Mandalorian & Grogu, along with a red popcorn purse inspired by The Devil Wears Prada 2 that management said sold out almost immediately.
The demand is creating a retail opportunity that extends beyond the physical theatre. Jacob said Cineplex has added an online merchandise platform so consumers can continue purchasing products when inventory sells out at cinema locations. Cineplex Shop carries officially licensed movie merchandise including collectible popcorn vessels, apparel, drinkware and other products associated with current and recent releases. The shop currently carries more than 100 products, with merchandise tied to releases including The Odyssey, The Mandalorian & Grogu, Wicked and The Super Mario Galaxy Movie.
Movie merchandise represents a potentially attractive extension of the traditional cinema business because major releases continuously provide new intellectual property around which limited-edition products can be created. A successful film can generate ticket demand while simultaneously creating a temporary retail assortment supported by the same marketing campaign and cultural attention surrounding the release.
The strategy is increasingly visible across the cinema industry. U.S. exhibitors have expanded their merchandise businesses in recent years, particularly around collectible concession vessels and limited-edition products. AMC began selling 3D novelty buckets in 2019 and expanded from collectible vessels tied to nine films in 2023 to plans for more than 40 in 2026, according to the Los Angeles Times.
For Cineplex, the 45% increase indicates that Canadian moviegoers are participating in the same trend, with merchandise becoming a more meaningful contributor to spending growth rather than simply an ancillary concession item.
Cineplex Gets More From Each Theatre Visit
The merchandise growth is part of a broader increase in the value of each customer visit. Cineplex’s box-office revenue increased 11.2% to $176.2 million during the quarter, representing its second-highest quarterly box-office revenue since 2019. Box-office revenue per patron increased 1.7% to $13.91, while food-service revenue grew faster than attendance and concession spending per patron increased 2.2%.
Premium cinema formats provide another opportunity to increase spending. Cineplex operates VIP Cinemas, UltraAVX, IMAX, 4DX and ScreenX locations across its network, and management reported strong demand for premium presentations around major releases. The Devil Wears Prada 2 delivered one of the strongest VIP performances in Cineplex history during the second quarter, while demand for IMAX presentations of The Odyssey has been particularly strong since the quarter ended.
Cineplex operates eight of the world’s 41 IMAX 70mm screens, giving the Canadian exhibitor a significant share of the global network capable of presenting films in the format. Management said sold-out screenings of The Odyssey highlighted consumer demand for premium theatrical experiences and the value of Cineplex’s premium-format footprint.
Box Office Momentum Accelerates in August
Cineplex’s second-quarter performance was supported by a broad mix of films rather than dependence on a single blockbuster, with family releases, horror films, franchise titles and original productions contributing to attendance. Management said the consistency of the film slate is important because it encourages repeat visits and reduces the volatility associated with relying on a small number of major releases.
That momentum strengthened substantially after the quarter ended. Jacob told analysts that during the first 10 days of August, Cineplex had already come close to generating the box-office revenue recorded during the entire month of August 2025, largely driven by The Odyssey and Spider-Man: Brand New Day. Cineplex also said the broader domestic box office surpassed $5 billion earlier in 2026 faster than in any year since 2019.
Younger consumers are contributing to the recovery. Management highlighted the return of Gen Z moviegoers during the quarter, particularly around titles including Obsession and Backrooms, and said moviegoing continues to resonate as a social experience for younger audiences. That demographic also has value to Cineplex’s advertising business, which positions its theatres as a way for brands to reach consumers who can be difficult to access through traditional media channels. Cineplex Media revenue increased 4.4% year-over-year to $20.2 million during Q2.
Canadian Consumers Remain Selective
The record spending at Cineplex comes against a more challenging backdrop for Canadian household consumption, where elevated living costs and economic uncertainty have continued to influence discretionary purchasing decisions.
Cineplex’s performance does not necessarily point to a broad rebound in discretionary spending. Instead, its theatre results suggest consumers remain willing to spend when an entertainment offering generates sufficient interest, particularly around major cultural events, recognizable intellectual property and experiences that are difficult to replicate at home. The combination of rising attendance and record per-patron spending indicates that consumers choosing to visit Cineplex are also accepting more opportunities to spend around that visit.
Results elsewhere in Cineplex’s business show that discretionary entertainment spending remains uneven. The company’s location-based entertainment segment, which includes The Rec Room and Playdium, continued to face what management described as macroeconomic headwinds affecting consumer spending. Adjusted store-level EBITDA fell to $3.9 million from $5.8 million a year earlier, while adjusted store-level margin declined to 12.2% from 17.5%.
Management said food-and-beverage revenue increased within the location-based entertainment business during the quarter while amusement revenue declined. That mix weighed on profitability because amusement represents the highest-margin revenue category in the segment. Cineplex noted that the second quarter is typically its lowest-traffic period for location-based entertainment and expects some of the pressure to reverse as the year progresses.
Playdium Expands as Competition Increases
Cineplex continues to invest in experiential entertainment despite the near-term softness, opening a new Playdium at Vaughan Mills in June and bringing its location-based entertainment portfolio to 17 locations. Cineplex told analysts that the location has delivered strong results since opening.
The expansion is part of Cineplex’s longer-term strategy of positioning The Rec Room and Playdium as social entertainment destinations, frequently within or near major shopping centres. These concepts can also serve a broader role within retail properties as landlords add entertainment, dining and other experiential uses intended to generate visits beyond conventional shopping.
Competition for that spending is increasing. Cineplex acknowledged during its earnings call that competing entertainment concepts have entered some markets around successful locations in its portfolio. Management said the trend is not widespread but noted that strong-performing locations have attracted additional entrants.
Canada has seen rapid expansion from other experiential entertainment concepts, including Winnipeg-founded Activate. The company said in April that it had grown to more than 75 locations worldwide, including 64 across North America, and plans to reach 100 locations across 12 countries by 2027.
The contrast within Cineplex’s own portfolio provides a useful indication of current consumer behaviour. Movie theatres are benefiting from a strong film slate and consumers willing to spend more around major releases, while broader location-based entertainment continues to encounter greater resistance from discretionary spending pressures and increased competition.
Loyalty Supports More Frequent Visits
Cineplex is also using loyalty and subscription programs to increase the frequency of customer visits. Scene+ has more than 15 million members and expanded during the quarter with the nationwide addition of Shell Canada, allowing members to earn and redeem points across categories including groceries, entertainment, dining, travel and fuel.
CineClub, Cineplex’s movie subscription program, recently marked its fifth anniversary and has more than 270,000 members. Cineplex said members visit its theatres at approximately four times the rate of non-members, making the subscription business another way to encourage repeat moviegoing as the film supply improves. Together, Scene+ and CineClub can help increase visitation, while premium formats, food and beverage and merchandise provide additional opportunities to generate revenue from each visit.
Cineplex is also expanding the uses of its theatre network beyond conventional film exhibition. During the second quarter, the company partnered with TSN to present select FIFA World Cup matches in theatres across Canada. Management described the response as encouraging and sees sporting events, concerts, live performances and specialty programming as additional ways to attract audiences and use theatre capacity.
Cineplex Looks to Strong Second Half
Cineplex expects theatrical momentum to continue through the remainder of 2026, supported by a release calendar spanning major franchise films, family titles, horror and other genres. Management said the industry is tracking toward approximately $10 billion in domestic box-office revenue this year, while the unusually strong start to August provides additional momentum heading into the second half.
For Cineplex, the recovery is increasingly about more than filling theatre seats. The company is generating record food and beverage spending, monetizing demand for premium movie experiences and turning film merchandise into a growing physical and digital retail category. Loyalty and subscription programs provide another mechanism for increasing visit frequency while Cineplex’s theatre network is being used for a wider range of entertainment events.
The movie remains the reason consumers arrive, but Cineplex is finding more ways to participate in the spending surrounding it. Merchandise, in particular, gives the company a retail category that can change with each new theatrical release and increasingly continue online after customers have left the cinema.
