Cineplex Inc. reported its highest quarterly revenue in company history for the third quarter of 2026, as stronger movie attendance, record box office sales and increased spending per guest helped drive a 26.2 per cent increase in revenue to $440.2 million.
The Toronto-based entertainment company also more than doubled its adjusted EBITDAaL to $70.7 million for the three months ended Sept. 30, compared with $33.3 million in the same period last year. The results come as Cineplex undertakes a strategic review of alternatives that could include a potential sale of the company.
The company reported net income from continuing operations of $23.8 million, up $22.5 million from the third quarter of 2025, while adjusted free cash flow increased 241.3 per cent to $52.9 million.
The results represent a significant improvement in Cineplex’s financial performance, with higher attendance and increased revenue per patron contributing to stronger operating results.
Box office and theatre spending reach records
Cineplex welcomed 14.8 million guests during the quarter, an increase of 23.1 per cent from 12.1 million in the same period last year. Box office revenue reached $215.7 million, up 35.2 per cent and the highest quarterly total in the company’s history.
The company attributed the increase in attendance to a strong film slate, including Spider-Man: Brand New Day and The Odyssey. Premium-priced experiences accounted for 51.4 per cent of box office revenue, setting a third-quarter record.
Box Office Per Patron reached an all-time quarterly high of $14.54, compared with $13.23 a year earlier, while Concession Per Patron increased 3.5 per cent to $9.99.
Cineplex also reported record third-quarter theatre food service revenue of $148.1 million, an increase of 27.3 per cent from the previous year, primarily reflecting higher attendance. The company said growth in value programs, initiatives and merchandise sales contributed to increased concession spending.
In a statement, Bill Walker, Chief Executive Officer of Cineplex, said the results demonstrate the company’s operating performance and improving financial position.
“Our record third quarter results reflect the extraordinary momentum we are seeing across our business,” said Walker. “We delivered the highest quarterly revenue in our history and over 110% growth in adjusted EBITDAaL, reflecting the significant operating leverage of our business. Our strong operating performance and free cash flow generation drove meaningful deleveraging during the quarter, bringing us within our target leverage range of 2.5x to 3.0x and further strengthening our financial position.
“This quarter also demonstrated the powerful connection audiences continue to have with theatrical entertainment when compelling stories become cultural moments. Spider-Man: Brand New Day became the highest-grossing film of all time at the domestic box office, while The Odyssey generated more than $1.8 billion at the global box office. The Odyssey also drove unprecedented demand for premium experiences, with our IMAX 70MM locations frequently selling out, highlighting both the appeal of our premium experiences and the strategic advantage of operating 8 of the world’s 41 IMAX 70MM screens. This contributed to premium formats accounting for a third-quarter record 51.4% of box office revenues.
“Beyond our theatres, our Media business remained resilient despite a softer advertising market and continues to provide advertisers with access to an engaged audience, including hard-to-reach demographics such as Gen Z and newcomers to Canada. Our Location-Based Entertainment business continued to focus on operational excellence, delivering 4.6% growth in adjusted store-level EBITDAaL and expanding margins by more than 100 basis points despite a challenging consumer spending environment.
“As I begin my tenure as CEO, I am energized by the opportunities ahead. Cineplex has a unique set of assets, a talented team, growing free cash flow, and a focused strategy centered on creating exceptional guest experiences and delivering long-term value for shareholders. With strong momentum across our business, a compelling upcoming film slate and continued commitment from studios to theatrical releases, we believe Cineplex is well positioned for continued growth.”
Strategic review includes potential sale
Alongside its financial results, Cineplex confirmed that its board of directors initiated a strategic review during the third quarter to evaluate opportunities to enhance and maximize shareholder value.
The review will consider a range of alternatives, including a potential sale of the company. Cineplex has retained Goldman Sachs and TD Securities as co-financial advisers to assist with the process.
Ellis Jacob, who previously led the company, will serve as a special adviser to the board through Dec. 31, 2026, working with directors, management and the company’s advisers on the assessment of available alternatives.
Walker was appointed chief executive officer on Sept. 23, 2026.
The company also renewed its normal course issuer bid on Aug. 24, authorizing the repurchase and cancellation of up to 6.3 million common shares, representing 10 per cent of its public float as of Aug. 14.
Location-based entertainment and loyalty operations
Outside its theatre exhibition business, Cineplex reported third-quarter revenue of $34 million for its Location-Based Entertainment segment, down 1.7 per cent from the previous year. Adjusted store-level EBITDAaL increased 4.6 per cent to $6.1 million.
The company’s cinema media business generated $19.1 million in quarterly revenue, a decrease of 0.4 per cent from the same period in 2025. Cineplex said the segment remained resilient despite a softer advertising market.
Its Scene+ loyalty program had 16 million members as of Sept. 30.
Cineplex also reported year-to-date revenue of $1.11 billion for the first nine months of 2026, up 17.4 per cent from $950 million in the comparable period last year. Adjusted EBITDAaL for the nine-month period increased 104.7 per cent to $115.7 million, compared with $56.5 million in 2025.
Box office performance remained strong into October, with revenue reaching $42.3 million, an increase of 42 per cent from $29.9 million in October 2025.
Cineplex operates 169 movie theatres and location-based entertainment venues across Canada, including The Rec Room, Playdium and Cineplex Junxion. The company employs more than 10,000 people across its offices and venues.
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