10-Q · May 15, 2026
Reading International, Inc.'s Q1 2026 10-Q shows a 12% increase in total revenue year-over-year, driven by strong cinema box office performance and improved Food and Beverage revenues. Despite this revenue growth, the…
Earnings analysis · 10-Q
RDI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Reading International delivered a strong operational rebound in Q2 2026: revenue rose 10.8% year over year to $66.896 million, operating margin improved to 11.2%, and diluted EPS turned positive at $0.10. Australia-led…
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Reading International delivered a strong operational rebound in Q2 2026: revenue rose 10.8% year over year to $66.896 million, operating margin improved to 11.2%, and diluted EPS turned positive at $0.10. Australia-led cinema growth and lower corporate costs more than offset U.S. and New Zealand weakness. However, the improvement is constrained by $108.0 million of debt due within 12 months, only $5.680 million of unrestricted cash, negative working capital of $157.4 million, and dependence on refinancing and property sales. The overall outlook is therefore operationally improved but financially fragile.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.1
- Operating margin
- 11.2%
What stood out
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Revenue and Operating Profit Rebounded
Second-quarter revenue increased 10.8% year over year to $66.896 million from $60.378 million and was approximately 48% above Q1 2026 revenue of $45.1 million. Operating income improved to $7.477 million from $2.891 million year over year, implying an 11.2% operating margin versus 4.8% in Q2 2025.
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EPS Turned Positive
Diluted EPS turned positive at $0.10 versus a $0.12 loss in Q2 2025 and a $0.36 loss in Q1 2026. Net income attributable to Reading was $2.270 million versus a $2.667 million loss year over year.
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Australia Drove Cinema Recovery
Cinema segment operating income increased 67.9% to $9.158 million from $5.453 million. Australia was the main driver, with cinema revenue up 30.9% to $29.981 million and attendance up 15%, while Australian ATP increased 3.4% to $16.89.
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Cost Controls Supported Margins
Corporate general and administrative expense declined to $3.175 million from $3.957 million, a $0.782 million reduction. Consolidated depreciation and amortization decreased to $3.089 million from $3.297 million, reflecting deferred capital investment.
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Cash Burn Improved
Management reported approximately $0.7 million of operating cash flow for the first six months of 2026, compared with $6.2 million of cash used in the prior-year period. Capital expenditures were $1.389 million, indicating low capital intensity despite strategic cinema upgrades.
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Management Sees Stronger Film Slate
Management expects a stronger second half based on upcoming releases including The Odyssey, Minions & Monsters, Spider-Man: Brand New Day, The Hunger Games: Sunrise on the Reaping, Avengers: Doomsday, Dune: Part Three and Jumanji 3.
What to watch
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Severe Near-Term Liquidity Pressure
Liquidity remains the principal risk: the company had only $5.680 million of unrestricted cash, $108.0 million of debt due within 12 months, and a negative working-capital position of $157.4 million. Management continues to evaluate going-concern uncertainty and relies on refinancing and real estate monetization.
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Negative Equity and High Leverage
Total stockholders' equity remained negative at $23.141 million, while total borrowings were $176.515 million net of financing costs. The resulting debt-to-equity ratio was negative 7.91, limiting financial flexibility.
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Dependence on Property Monetization
The company depends on asset sales to fund liquidity: the Cinemas 1,2,3 property carried $24.451 million in current assets held for sale, while its related first mortgage was $19.7 million. The planned sale is expected by year-end 2026, but management provides no assurance it will close on acceptable terms.
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U.S. Attendance and Content Headwinds
U.S. cinema revenue declined 2.6% to $29.478 million, with attendance pressured by the April 2025 San Diego closure, the May 2026 La Mesa closure, and a weaker specialty film slate. U.S. admissions revenue fell to $15.650 million from $16.099 million.
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Australian Cost Inflation
Australian cinema operating expenses increased 23.8% to $23.095 million, including film rent and advertising costs of $8.515 million, food and beverage costs of $2.024 million, and labor costs of $4.242 million. Rising costs could offset the benefit of attendance growth.
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Persistent Macroeconomic Exposure
The company disclosed no material changes to the risk factors in its 2025 Form 10-K, but identified continued macroeconomic pressures including inflation, labor and fuel costs, higher fixed rents, and consumer resistance to higher ticket prices. Q2 U.S. food-and-beverage spend per patron declined 1.8% to $8.97.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects 2026 cinema cash flow to be stronger than in recent periods, expects to complete the Cinemas 1,2,3 property sale by the end of 2026, and expects to refinance the $6.2 million Minetta and Orpheum loan in Q3 2026.
Earlier filings 2
10-K · April 30, 2026
Reading International, Inc. reported mixed performance in its 2025 fiscal year, with declines in revenue and net losses persisting. The company’s focus remains on enhancing its real estate assets and adapting its…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.