Cineplex (TSE:CGX) outlined a mixed fourth quarter for 2025, pointing to a weak October that weighed on year-over-year comparisons before a strong finish in November and December helped the company outpace broader industry box office trends. Management also highlighted record per-patron spending, continued strength in cinema advertising, and cash proceeds from the sale of Cineplex Digital Media that it said add flexibility for buybacks, debt reduction, and other corporate uses.
Q4 film slate drove a strong December, but October was the weakest since 2020
President and CEO Ellis Jacob said the quarter featured a “broad and compelling” lineup, led by Avatar: Fire and Ash, Zootopia 2, and Wicked Part Two. He also cited Five Nights at Freddy’s 2 as delivering the largest December opening ever for a horror film, and said the period ultimately produced Cineplex’s strongest December since 2019.
For the full fourth quarter, management said Cineplex’s box office performance exceeded the North American industry by 218 basis points, marking the third consecutive quarter the company outpaced the industry.
Premium formats and pricing helped deliver record per-patron metrics
Management emphasized continued demand for premium experiences. Jacob said 43% of Q4 box office came from premium experiences, up from 41% in 2024, and that the top five films averaged 62% of box office from premium formats.
That mix, combined with pricing actions and a focus on the guest experience, contributed to new company records. Cineplex reported:
- Box office per patron (BPP) of CAD 13.87, the highest quarterly level in company history
- Concession per patron (CPP) of CAD 9.92, a Q4 record and the second-highest quarterly result ever
In Q&A, Nelson said the company generally aims to pass through CPI-type increases over time while balancing value offerings such as Tuesday pricing and CineClub. He also noted that quarterly BPP can vary depending on film mix and audience demographics.
Media segment grew despite lower attendance; programmatic cinema expanded advertiser demand
Cineplex’s media business posted growth even as theater attendance declined. Nelson said cinema media revenue rose 12.5% year-over-year to CAD 33.8 million, driven by higher demand for showtime advertising, with notable contributions from pharmaceutical, retail, and fragrance/cosmetics clients. Cinema media per patron increased 23.3% to a Q4 record of CAD 3.33.
Nelson also pointed to the Q4 launch of Programmatic Cinema, which he said helped unlock incremental demand from connected TV budgets and brought new advertisers into the cinema environment, particularly in consumer packaged goods. In response to analyst questions, management said it had been ramping programmatic capabilities over the past year and was seeing benefits as budgets shifted toward cinema’s “high-attention” environment.
Digital Media sale closed; company ended Q4 with CAD 134 million in cash
Management said Cineplex closed the sale of Cineplex Digital Media to Creative Realities, Inc. on November 7, 2025, receiving initial cash proceeds of approximately CAD 60 million. Nelson said Cineplex recognized a CAD 3.3 million gain, presented in net income from discontinued operations. He added that Cineplex Media will continue as the exclusive advertising sales agent for the acquired company’s digital out-of-home networks across Canada under a long-term agreement.
Cineplex ended the quarter with CAD 134 million in cash and no drawings under its CAD 100 million covenant-lite credit facility. Nelson said the cash balance benefited from the sale proceeds, alongside working capital, share repurchases, and operating results.
On capital allocation, Nelson reiterated priorities of maintenance capex, strengthening the balance sheet toward target leverage levels, shareholder returns (buybacks and/or dividends), and selective growth. Cineplex repurchased about CAD 7 million in shares in Q4 under its normal course issuer bid and another CAD 5 million in January 2026. He said remaining Digital Media sale proceeds are expected to be allocated among debt reduction, opportunistic buybacks, or other corporate purposes, consistent with those priorities.
Results by the numbers, legal update, and 2026 outlook
Nelson said Q4 total revenue was CAD 334.8 million, down 1.8% from Q4 2024, primarily due to lower attendance. Adjusted EBITDA was CAD 35.1 million, compared with CAD 35.8 million a year earlier, and the consolidated EBITDA margin held steady at 10.5%. Box office revenue was CAD 140.7 million (down 4.7%) as attendance fell 8.9% to 10.1 million guests.
For full-year 2025, Nelson reported total revenue increased 0.8% to CAD 1.2 billion and adjusted EBITDA increased to CAD 91.6 million from CAD 90.0 million in 2024. Net capex was CAD 32.7 million in 2025, down from CAD 65.9 million in 2024, and management guided to CAD 50 million for 2026.
Jacob also addressed the company’s online booking fee case, saying the Federal Court of Appeal upheld the Competition Tribunal’s September 2024 decision, including a CAD 39 million administrative monetary penalty. Nelson said Cineplex had already accrued the penalty in Q3 2024, so there was no additional impact to financial statements. Management said it will seek leave to appeal to the Supreme Court of Canada and request a stay.
Looking to 2026, Jacob said the film slate is expected to be “significantly stronger” than 2025 and cited titles including The Super Mario Bros. Movie 2, Toy Story 5, a live-action Moana, Spider-Man: Brand New Day, Dune: Part Three, and Avengers: Doomsday, alongside original films such as Pixar’s Hoppers, Steven Spielberg’s Disclosure Day, and Christopher Nolan’s The Odyssey. Nelson noted industry forecasts calling for domestic box office growth of 8% to 15% versus 2025, which management said would support stronger EBITDA.
On the theater footprint, Nelson said Cineplex does not expect declines to continue at the same pace, but indicated the company expects to be down two to three theaters in 2026. In location-based entertainment, management said it remains focused on operational discipline and marketing, and confirmed a new Playdium is under construction at Vaughan Mills, expected to open in the first half of 2026, while describing a “prudent pause” on additional commitments as it monitors potential opportunities in the retail landscape.
About Cineplex (TSE:CGX)
Cineplex is a diversified media company that operates chains of movie theaters. The company has four reporting segments: film entertainment and content; media; amusement and leisure; and location-based entertainment. The film entertainment and content segment includes revenue from theater attendance. The media segment includes cinema media and digital place-based media operations. The amusement and leisure reporting segment manages the operation and distribution of gaming and vending equipment. Formerly housed in the amusement and leisure segment, the location-based entertainment business derives revenue from entertainment restaurant chains like The Rec Room and Playdium.
