Reading International (NASDAQ:RDI) reported higher first-quarter revenue for 2026 as a stronger global film slate lifted cinema attendance and food and beverage sales, but the company’s net loss widened because the prior-year period included a sizable real estate sale gain.
Chief Financial Officer and Treasurer Gilbert Avanes said consolidated revenue rose $5 million year over year to $45.1 million. He said the improvement was driven by stronger cinema results in the U.S. and Australia, higher U.S. real estate revenue tied in part to live theater activity, and favorable currency movements in Australia and New Zealand.
Revenue improves, operating loss narrows
Reading reported a global operating loss of $3.6 million for the quarter, an improvement of $3.3 million from the $6.9 million operating loss in the first quarter of 2025. Avanes said the company’s cinema segment operating earnings before depreciation and amortization were positive for the first time since 2019.
President and Chief Executive Officer Ellen Cotter said the company was “pleased with the start of 2026” and pointed to films including Project Hail Mary, Hoppers and Wuthering Heights, along with holiday holdovers such as Zootopia 2 and Avatar: Fire and Ash, as contributors to stronger operating results.
Cotter said first-quarter total revenue was Reading’s second-highest first-quarter revenue total since the first quarter of 2020. Global cinema revenue rose 14% to $41.5 million, while the global cinema operating loss improved 70% to $1.3 million.
The company’s adjusted EBITDA loss was $0.8 million, compared with adjusted EBITDA income of $2.9 million in the same period last year. Avanes said total company depreciation, amortization, impairment and general and administrative expenses decreased by $0.5 million to $8 million.
Cinema results strengthen in U.S. and Australia
Cotter said Reading’s U.S. cinema revenue increased 6% to $19.5 million despite the company closing 7.5% of its U.S. screens in 2025 to improve profitability. The U.S. cinema operating loss improved 51% to $1.6 million. In response to a shareholder question, Cotter said that excluding depreciation, U.S. cinemas showed positive earnings for the quarter.
In Australia, cinema revenue increased 26% to $19.7 million, while operating income improved to $426,000 from an operating loss of $974,000 in the prior-year quarter. New Zealand cinema revenue decreased 6% to $2.3 million, though the operating loss improved by 40%.
Cotter highlighted several initiatives the company said are supporting cinema performance, including expanded food and beverage offerings, loyalty programs, selective theater renovations and negotiations with landlords to reduce occupancy costs. She said U.S. and Australian food and beverage spend per person reached first-quarter records when excluding pandemic closure periods.
The company said its revamped free Reading Rewards program in Australia and New Zealand had more than 510,000 members, up 19% from the prior quarter. Paid memberships in Australia and New Zealand reached more than 31,800, up 44%. In the U.S., Reading said new rewards and premium membership programs launched in Hawaii and at three Reading Cinemas had signed up 24,000 rewards members and 1,500 paid members.
Real estate revenue declines after asset sales
Reading’s global real estate revenue decreased 5% to $4.6 million, while real estate operating income declined 13% to $1.4 million. Cotter said the decrease primarily reflected the elimination of revenue and property-level cash flow from assets sold in 2025, including Cannon Park in Townsville, Australia, and Wellington property assets in New Zealand.
Despite the decline, Cotter said the real estate division recorded its 14th consecutive quarter of positive operating income. U.S. real estate revenue rose 13% to $1.8 million, supported by stronger live theater results and improving rental income at 44 Union Square in New York City.
At the Minetta Lane Theatre, which Reading licenses to Audible, Cotter said first-quarter activity included Hugh Jackman’s return for an encore of Sexual Misconduct of the Middle Classes and the premiere of The Disappear. She also said the Orpheum Theatre continued to see demand from theater producers following the departure of Stomp.
At 44 Union Square, Cotter said Petco continues to operate in the building, while four floors remain available for lease. Reading has reengaged Newmark to market the remaining space, and Cotter said potential users have included office, coworking, wellness, education and entertainment tenants.
Debt reduction and asset monetization remain priorities
Avanes said Reading had $431.5 million in total assets as of March 31, down from $434.9 million at year-end 2025, primarily due to a $5 million decline in cash and cash equivalents used to fund ongoing operations. Cash and cash equivalents were $5.5 million at quarter-end.
Total outstanding borrowings before deferred financing costs were $184.6 million, compared with $185.1 million at Dec. 31. Avanes said Reading has reduced gross debt by $100.4 million since Dec. 31, 2020, and interest expense fell by $0.5 million, or 11%, from the prior-year quarter.
The company said it continues to work with lenders to address liquidity pressure, including amendments to debt facilities. In the quarter, Reading deferred and later paid a principal payment on its 44 Union Square loan, modified the payment schedule on its Bank of America/Bank of Hawaii loan and amended its NAB loan to reduce a minimum liquidity requirement for a limited period in 2026.
Reading classified its Cinema 1, 2 and 3 property in New York City as held for sale after acquiring the remaining 25% interest in the property in December 2025. Cotter said more than 60 parties signed nondisclosure agreements for the property and that Newmark was accepting first-round bids during the week of the call.
The company also signed a purchase and sale agreement in March to sell its Napier, New Zealand, property for NZD 2.5 million, with an expected leaseback of the cinema. Cotter said no assurance could be given, but the company expected the sale to close during the quarter.
Management points to stronger 2026 film slate
Cotter said Reading remains committed to its “2-business, 3-country strategy,” though it has monetized real estate assets to meet liquidity needs following the pandemic, the 2023 Hollywood strikes, higher interest rates and inflation.
Looking ahead, Cotter said the company expects momentum to continue through 2026, citing anticipated releases including Star Wars: The Mandalorian & Grogu, Toy Story 5, Supergirl: Woman of Tomorrow, Spider-Man: Brand New Day, The Hunger Games: Sunrise on the Reaping, Avengers: Doomsday: Doom Part 3 and Jumanji 3. She said Reading believes 2026 is positioned to be the strongest post-pandemic box office year to date.
In response to a shareholder question, Avanes said Reading is working on refinancing options for the Santander loan secured by Minetta Lane and Orpheum, which matures June 1, 2026, and expects to close a refinancing “within the next few months.”
About Reading International (NASDAQ:RDI)
Reading International, Inc (NASDAQ: RDI) is a diversified entertainment and real estate company headquartered in Santa Monica, California. The company’s principal operating arm is Reading Cinemas, a chain of multiplex movie theaters serving audiences in Australia, New Zealand and the United States. Reading Cinemas locations feature a mix of mainstream and independent film programming, premium large-format screens, special event presentations and concession services designed to enhance the customer experience.
In addition to its exhibition business, Reading International maintains a real estate development and management division focused on retail, office and mixed-use properties.
