RDI earnings analysis
What we found in RDI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.1
- Operating margin
- 11.2%
- Segment
- Cinema exhibition revenue was $62.990 million, up 10.9% year over year from $56.782 million and up from $44.709 million in Q1 2026; segment operating income rose to $9.158 million from $5.453 million year over year.
- Segment
- Real estate third-party revenue was $3.906 million, up 8.6% year over year from $3.596 million; including $0.947 million of inter-segment revenue, segment revenue was $4.853 million versus $4.653 million.
- Segment
- U.S. cinema revenue was $29.478 million, down 2.6% year over year, while Australia revenue increased 30.9% to $29.981 million and New Zealand revenue declined 2.3% to $3.531 million.
- Segment
- Real estate segment operating income was $1.578 million, up 6.7% year over year from $1.479 million; six-month operating income declined 3.5% to $2.967 million from $3.074 million.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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