4.
REVENUE RECOGNITION

Revenue Recognition Policy

The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime, right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenue when the showtime for a purchased movie ticket has passed. Concession revenue is recognized when products are sold to the consumer at the theater, or if purchased online in advance, either through the Company’s website, its mobile application, or through a third-party delivery service, once the consumer’s order is fulfilled. Other revenue primarily consists of screen advertising, screen rental revenue, gaming

revenue, promotional income, studio trailer placements and transactional fees. Except for National CineMedia, LLC (“NCM”) screen advertising advances discussed in Note 8, these revenues are generally recognized when the Company has fulfilled its performance obligations by providing the services specified in each contract.

The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenue. Deferred revenue for gift cards and discount ticket vouchers is recognized when they are redeemed for concession items, or if redeemed for movie tickets, when the movie showtime has passed. The Company generally records breakage revenue on unredeemed gift cards and discount ticket vouchers based on redemption activity and historical experience with unused balances.

The Company offers a subscription program in the U.S., whereby patrons can pay a monthly or annual fee to receive a monthly credit for use towards a future movie ticket purchase. The Company offers similar subscription fee programs in several of its international locations where customers can pay a monthly or annual fee to receive benefits such as a free monthly movie ticket. The Company records subscription program fees as deferred revenue and records admissions revenue when the showtime for a movie ticket purchased with a credit has passed. The Company records breakage revenue for unused credits based upon redemption of subscription credits and historical experience with unused credits.

The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual fee or award points to customers as purchases are made. For those loyalty programs that have a prepaid annual fee, the Company recognizes the fee collected as other revenue on a straight-line basis over the annual membership period. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenue based on the number of reward points issued to customers and recognizes the deferred revenue when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue for unredeemed loyalty points based upon redemption of loyalty points and historical experience with the expiration of unused points.

Accounts receivable as of December 31, 2024 and 2025 included approximately $29.8 and $31.2, respectively, of receivables related to contracts with customers. The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the years ended December 31, 2024 or 2025.

 

Disaggregation of Revenue

The following tables present revenue for the periods indicated, disaggregated based on major type of good or service and by reportable segment.

 

 

Year Ended December 31, 2025

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions Revenue

 

$

1,266.0

 

 

$

278.7

 

 

$

1,544.7

 

Concession Revenue

 

 

998.2

 

 

 

229.0

 

 

 

1,227.2

 

Screen advertising, screen rental and promotional revenue

 

 

94.3

 

 

 

57.9

 

 

 

152.2

 

Other Revenue

 

 

143.7

 

 

 

47.2

 

 

 

190.9

 

Total Revenue

 

$

2,502.2

 

 

$

612.8

 

 

$

3,115.0

 

 

 

 

Year Ended December 31, 2024

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions Revenue

 

$

1,233.1

 

 

$

289.4

 

 

$

1,522.5

 

Concession Revenue

 

 

969.3

 

 

 

228.5

 

 

 

1,197.8

 

Screen advertising, screen rental and promotional revenue

 

 

91.7

 

 

 

54.5

 

 

 

146.2

 

Other Revenue

 

 

142.7

 

 

 

40.3

 

 

 

183.0

 

Total Revenue

 

$

2,436.8

 

 

$

612.7

 

 

$

3,049.5

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions Revenue

 

$

1,236.0

 

 

$

319.6

 

 

$

1,555.6

 

Concession Revenue

 

 

952.0

 

 

 

240.0

 

 

 

1,192.0

 

Screen advertising, screen rental and promotional revenue

 

 

91.0

 

 

 

53.6

 

 

 

144.6

 

Other Revenue

 

 

136.3

 

 

 

38.2

 

 

 

174.5

 

Total Revenue

 

$

2,415.3

 

 

$

651.4

 

 

$

3,066.7

 

(1)
U.S. segment revenues exclude intercompany transactions with the international reportable segment. See Note 20 for additional information on intercompany eliminations.

The following tables present revenue for the periods indicated, disaggregated based on timing of revenue recognition (as discussed above) and by reportable segment.

 

 

Year Ended December 31, 2025

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Reportable

 

 

Reportable

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

2,395.6

 

 

$

537.8

 

 

$

2,933.4

 

Goods and services transferred over time (2)

 

 

106.6

 

 

 

75.0

 

 

 

181.6

 

Total

 

$

2,502.2

 

 

$

612.8

 

 

$

3,115.0

 

 

 

 

Year Ended December 31, 2024

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Reportable

 

 

Reportable

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

2,330.3

 

 

$

545.3

 

 

$

2,875.6

 

Goods and services transferred over time (2)

 

 

106.5

 

 

 

67.4

 

 

 

173.9

 

Total

 

$

2,436.8

 

 

$

612.7

 

 

$

3,049.5

 

 

 

 

Year Ended December 31, 2023

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

Reportable

 

 

Reportable

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

2,327.9

 

 

$

588.9

 

 

$

2,916.8

 

Goods and services transferred over time (2)

 

 

87.4

 

 

 

62.5

 

 

 

149.9

 

Total

 

$

2,415.3

 

 

$

651.4

 

 

$

3,066.7

 

(1)
U.S. segment revenues exclude intercompany transactions with the international reportable segment. See Note 20 for additional information on intercompany eliminations.
(2)
Amount includes amortization of NCM screen advertising advances. See NCM Screen Advertising Advances and Other Deferred Revenue below.

NCM Screen Advertising Advances and Other Deferred Revenue

The following table presents changes in the Company’s deferred revenue for the periods indicated:

 

Deferred Revenue

 

NCM Screen
Advertising Advances

 

 

Other Deferred
Revenue
(1)

 

Balance at January 1, 2024

 

$

328.4

 

 

$

221.6

 

Amounts recognized as accounts receivable

 

 

 

 

 

10.8

 

Cash received from customers in advance

 

 

 

 

 

376.0

 

Common units received from NCM (see Note 8)

 

 

0.5

 

 

 

 

Interest accrued related to significant financing component

 

 

22.0

 

 

 

 

Revenue recognized during period

 

 

(32.4

)

 

 

(353.7

)

Foreign currency translation adjustments

 

 

 

 

 

(3.9

)

Balance at December 31, 2024

 

 

318.5

 

 

 

250.8

 

Amounts recognized as accounts receivable

 

 

 

 

 

3.6

 

Cash received from customers in advance

 

 

 

 

 

391.6

 

Interest accrued related to significant financing component

 

 

21.3

 

 

 

 

Revenue recognized during period

 

 

(32.6

)

 

 

(380.2

)

Foreign currency translation adjustments

 

 

 

 

 

(0.3

)

Balance at December 31, 2025

 

$

307.2

 

 

$

265.5

 

 

(1)
Includes liabilities associated with outstanding gift cards and prepaid and discount ticket vouchers, points, credits or rebates outstanding under the Company’s loyalty and subscription programs and revenue collected in advance for screen advertising and other promotional activities. Amounts are classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheets.

The table below summarizes the aggregate amount of the performance obligations that are unsatisfied as of December 31, 2025 and when the Company expects to recognize this deferred revenue.

 

 

Year Ended December 31,

 

 

 

 

 

 

 

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Thereafter

 

 

Total

 

NCM screen advertising advances (1)

 

$

12.0

 

 

$

12.8

 

 

$

13.7

 

 

$

14.7

 

 

$

15.7

 

 

$

238.3

 

 

$

307.2

 

Other deferred revenue

 

 

233.7

 

 

 

31.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

265.5

 

Total

 

$

245.7

 

 

$

44.6

 

 

$

13.7

 

 

$

14.7

 

 

$

15.7

 

 

$

238.3

 

 

$

572.7

 

(1)
The NCM screen advertising advances are recognized on a straight-line basis over the term of the ESA through February 2041. Amounts are net of the estimated interest to be accrued for the periods presented. See Note 8 for further discussion of the NCM screen advertising advances.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 16, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 21, 2020
2018Feb 28, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.