Reading International, Inc. (RDI) Earnings
Reading International, Inc. is expected to report next earnings on November 12, 2026 (in NaN days), with a consensus EPS estimate of $-0.07. RDI has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise -10.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 18, 2026 | $0.06 | $0.10 | +58.8% | $67M | +5.4% |
| May 19, 2026 | $-0.26 | $-0.36 | -39.6% | $45M | -6.2% |
| Mar 31, 2026 | $-0.20 | $-0.11 | +45.2% | $50M | -6.5% |
| Nov 14, 2025 | $-0.09 | $-0.18 | -105.7% | $52M | -11.2% |
| Aug 14, 2025 | $-0.06 | $-0.12 | -111.6% | $60M | +4.1% |
| May 15, 2025 | $-0.41 | $-0.21 | +48.8% | $40M | -34.9% |
| Mar 31, 2025 | $-0.41 | $-0.10 | +75.6% | $60M | +13.4% |
| Aug 14, 2024 | $-0.18 | $-0.42 | -133.3% | $47M | -18.3% |
| May 15, 2024 | $-0.52 | $-0.59 | -13.5% | $45M | +2.4% |
| Mar 29, 2024 | $-0.39 | $-0.56 | -43.6% | $45M | +3.0% |
| Nov 14, 2023 | $-0.01 | $-0.20 | -2757.1% | $67M | +21.4% |
| Aug 14, 2023 | $-0.03 | $-0.12 | -361.5% | $65M | +4.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 17, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Post-Pandemic Milestones - The company achieved multiple record results in Q2 2026: consolidated revenue was the highest Q2 in 6 years, global cinema revenue was the highest quarterly level since Q4 2019, and total company operating income was the best result since Q2 2018. - Cinema segment operating earnings were the strongest since Q2 2019, and the company posted net income of $2.3 million in Q2 2026, compared to a net loss of $2.7 million in Q2 2025. - The company navigated 6 years of post-pandemic challenges without U.S. government pandemic assistance, bankruptcy proceedings, or shareholder dilution. ### Strategic Portfolio & Cost Management - The board has directed management to prioritize overall debt reduction. The company has strategically monetized non-core, low/negative cash flow real estate and unprofitable cinemas to reduce debt, fund upgrades, and improve long-term profitability. Since 2020, 9 loss-making cinemas have been closed with no early exit fees. - Management continues to work with cinema landlords to renegotiate and reduce occupancy costs to align with ongoing attendance levels that remain below pre-pandemic benchmarks, amid broadly rising labor and operating costs. - The company remains committed to its core two-business (cinema and real estate), three-country (U.S., Australia, New Zealand) strategy, and retains a portfolio of primarily cash-flow positive assets. ### Cinema Operational Initiatives - **Food & Beverage (F&B)**: The company expanded movie-themed menus and merchandise offerings, driving record F&B spend per person across its international markets: AUD 8.37 in Australia (second-highest all-time quarterly level) and NZD 7.22 in New Zealand (all-time quarterly record). U.S. F&B spend per person of $8.97 outperformed peer public cinema operators, representing the third-highest quarterly level in company history. - **Loyalty Programs**: The company expanded and relaunched free and paid loyalty programs across all markets. As of Q2 2026, Australia/New Zealand had over 625,000 free rewards members (27% QoQ growth) and 41,000 new paid memberships in Q2 (72% QoQ growth). The U.S. has launched new programs in Hawaii and California, with 41,000 new free members and 2,500 new paid members, and a premium Angelika membership is expected to launch by the end of 2026. - **Capital Investments**: Completed a major renovation of the Valley Plaza Mall (Bakersfield, U.S.) cinema, which delivered a 43% YoY revenue increase in Q2 2026. Seat refurbishment projects are ongoing across U.S. cinemas, funded primarily by operating cash flow. A full renovation of the closed Wellington, New Zealand cinema is planned for a 2027 launch, following the completion of the landlord's seismic upgrades. ### Real Estate Operational Updates - The combined Australia/New Zealand real estate portfolio has a 98% occupancy rate, with strong performance at core assets Newmarket Village (Brisbane) and Belmont Common (Perth). - U.S. live theater (Minetta Lane Theatre and Orpheum Theater) delivered record Q2 revenue, driven by strong programming attendance. - Leasing activity at the partially vacant 44 Union Square (New York City) property has improved, with the Union Square market outperforming the broader Manhattan average. Refinance discussions are on hold until remaining space is leased and tenant credit is confirmed. - The Cinema 1,2,3 (New York City) property is classified as held for sale; the company has selected a preferred residential developer buyer and is working toward final contract execution, with an expected closing in early Q4 2026.
Guidance
- Management expects 2026 to be the strongest post-pandemic box office year to date, supported by a strong remaining 2026 film slate that includes major franchise titles in Q3 (Spider-Man: Brand New Day, The Odyssey) and Q4 2026 (Avengers: Doomsday, Dune 3, Jumanji 3). - Management confirmed industry momentum around theatrical exclusivity, with major studios Universal and Paramount publicly committing to a 45-day theatrical window, which benefits cinema operators. - The company expects to complete the Cinema 1,2,3 sale in early Q4 2026, with net proceeds prioritized for debt reduction and key cinema renovations. - A premium Angelika paid membership program is expected to launch in the U.S. before the end of 2026. - U.S. cinema seat refurbishment projects are expected to be completed across the circuit through 2026 and into 2027. - The full renovation of the Wellington, New Zealand cinema is expected to launch in late 2027, following the landlord's seismic upgrade project. - Management expects a refinance of the Santander Minetta/Orpheum loan to be completed within the next few months.
Segment performance
Consolidated Q2 2026 total revenue was $66.9 million, a $6.5 million increase year-over-year (YoY). 53% of revenue came from Australia/New Zealand, up from the historical 50% baseline. 1. **Global Cinema Segment**: Q2 2026 revenue increased 11% YoY to $62 million, with operating income of $9.2 million, a 68% YoY improvement. This was the best Q2 operating income for the segment since Q2 2019. - *Australian Cinema*: Q2 2026 revenue increased 31% YoY to $30 million (an all-time quarterly record for the Australian circuit), with operating income increasing 91% YoY to $5.6 million. Contributed ~44.8% of total company revenue. - *New Zealand Cinema*: Q2 2026 revenue decreased 2% YoY to $3.5 million, but operating income improved 61% YoY to $387,000. Contributed ~5.2% of total company revenue. - *U.S. Cinema*: Q2 2026 revenue decreased 3% YoY, but operating income improved 40% YoY. Contributed ~42.4% of total company revenue. 2. **Global Real Estate Segment**: Q2 2026 total revenue increased 4% YoY to $4.9 million, with total operating income increasing 7% YoY to $1.6 million. Contributed ~7.3% of total company revenue. - *Australian Real Estate*: Q2 2026 revenue increased 1% YoY to $2.8 million; operating income of $1.3 million remained flat YoY. - *New Zealand Real Estate*: Q2 2026 revenue and operating income of $212,000 and $53,000, respectively, remained flat YoY. - *U.S. Real Estate*: Q2 2026 revenue increased 11% YoY to $1.9 million, with operating income increasing 106% YoY to $183,000, driven by strong live theater performance.
Risks & headwinds
- Attendance at cinemas remains below pre-pandemic levels, while labor, occupancy, and other operating costs have increased materially across all markets, limiting the company's ability to raise ticket and concession prices (most ticket price increases pass directly to film studios). - The company cannot guarantee that the anticipated Cinema 1,2,3 sale will be completed on the expected timeline or at all, though alternative buyers are available if the current deal falls through. - The Santander loan refinance has not been finalized, and there is no assurance that a replacement refinance deal will be consummated as expected. - The Napier (New Zealand) asset sale is currently on hold due to car park ownership changes and unfavorable buyer-requested contract changes. - California state tax rules limit the company's ability to use net operating losses (NOLs) to offset capital gains from real estate asset sales. - The Philadelphia Viaduct litigation appeal is expected to continue through at least 2026, with no current path to resolution or potential offers from the city, limiting near-term monetization of adjacent parcels. - Forward-looking results are subject to general macroeconomic and industry risks that could cause actual performance to differ materially from management expectations.
Analyst Q&A
Q: Why was the Santander Minetta/Orpheum refinancing not completed by the June 1 maturity, and what should shareholders expect going forward?
A: Santander, the existing lender, now prefers to exit this loan class and move on. Management has an agreement in principle with a new replacement lender and is currently in the due diligence and administrative processing phase. Santander has granted a short extension to October 1, 2026, to complete this process. While no final assurances are given, management expects the new refinance arrangement to be finalized within the next few months.
Q: After paying off debt and transaction costs, how will the net proceeds from the Cinema 1,2,3 sale be prioritized?
A: First, the ~$19.7 million Valley National mortgage (carrying $2 million in annual interest expense) will be repaid in full. Second, the remaining ~$5.4 million Bank of America/Bank of Hawaii debt (carrying $650,000 in annual interest expense) will also be repaid. Any remaining proceeds will likely be deployed for further global debt reduction (to cut more interest expense), key cinema renovations, and paying down outstanding operating accruals.
Q: Why is the Napier asset sale on hold, and what is the current status of the deal?
A: The sale was paused after a change in ownership of the car park the cinema leases, which led the potential buyer to request unfavorable changes to the purchase agreement and leaseback terms that made the deal unattractive for Reading. No deal currently acceptable to Reading is on the table, and the transaction is not material to the company's overall liquidity. Management is now evaluating whether retaining the asset and its ongoing cash flow is more beneficial than completing the sale.
Q: What is the current status of the Philadelphia Viaduct STB appeal and any potential settlement or monetization of the property?
A: The code violation litigation has been settled for a nominal amount, and the STB appeal is ongoing at the D.C. Circuit Court, with third-party rail groups filing intervening briefs in Reading's favor. The appeal is expected to continue through at least 2026, and no settlement offers or outreach have been received from the City of Philadelphia or related parties. Adjoining parcels could be monetized separately, but management views it as premature to pursue this until a clearer path for the overall Viaduct dispute is established.