AMC’s latest chapter feels like a gritty sports drama — think Rocky in the second round. The underdog has taken a few blows, the crowd’s unsure if they’ll make it, but there’s still a chance for a comeback. That’s the mood AMC Entertainment Holdings, Inc. (AMC) set in its first-quarter 2025 earnings call. Despite a tough start to the year, the theater chain insists it’s not down for the count — and that better days are already rolling in. The pre-market stock movement, down roughly 2%, reflects the sentiment surrounding investors and analysts towards the AMC stock and its financial prospects.
Here are four key things we learned from AMC’s Q1 earnings call:
Q1 Was Bad, but AMC Says It’s Already Behind Us
AMC reported a 9% drop in revenue from the same period last year and a net loss of $202 million. Attendance fell by 10%. However, CEO Adam Aron was quick to call Q1 an outlier. He noted that the early 2025 movie calendar was unusually weak — the slowest non-COVID Q1 since 1996 — but said that trend has already reversed. According to Aron, April’s box office doubled compared to April 2024, and May is off to a similarly strong start.
Despite fewer people walking through the doors, AMC saw record admissions revenue per guest in the U.S. and stable spending on food and beverages. This suggests moviegoers are embracing higher-end offerings — like better seats, larger screens, and premium formats — even if they’re visiting theaters less frequently overall.
The Main Street Data (MSD) KPI chart clearly illustrates a decline in attendance at AMC Theatres, dropping from 46.6 million to 42 million patrons in the most recent quarter
Premium Experience and Financial Challenges
To keep people coming back, AMC is investing in what it calls “moviegoing upgrades.” That includes new “XL at AMC” auditoriums with 40-foot-wide screens and 4K laser projection, along with U.S. expansions of 4DX and ScreenX — immersive formats that shake, splash, and surround the viewer. The chain is also adding more IMAX and Dolby Cinema screens to enhance its offerings.
AMC’s cash burn remains high, with $417 million in negative free cash flow in Q1 and over $4 billion in debt. The company raised funds by selling stock, but long-term profitability is still a work in progress. Still, Aron says AMC is now “on offense,” expressing confidence that the back half of 2025 — and a blockbuster-filled 2026 — will fuel a turnaround.
Is AMC Stock A Buy?
According to Wall Street analysts, the general consensus is a Hold, with an AMC stock price target of $3.10. This implies a 14.39% upside potential.
