The cinema ad network borrowed $275 million to buy office-elevator screens just as its core business got cheaper per moviegoer.
More people went to the movies. National CineMedia made less money from them. The pre-show advertising company reported Tuesday that third-quarter revenue fell 3.2% to $61.4 million, and that CEO Tom Lesinski will retire at the end of the year.
The attendance line looked great. Its network drew 135.2 million moviegoers, up from 108.7 million a year earlier, though the company notes the count now includes its Spotlight network from mid-November 2025. But cinema ad revenue per attendee slid to about 41 cents from 55 cents, and adjusted operating income before depreciation and amortization dropped to $3.3 million from $10.2 million. The net loss was $17.2 million.
The bigger bet is outside the multiplex. NCM closed its purchase of Captivate, which runs screens in 1,517 office buildings, on Sept. 18, and its quarterly filing shows $271.1 million in cash paid for the business. To pay for it, NCM took a $275 million term loan from Crestline priced at 7 percentage points over SOFR, plus a revolving line. Gross borrowings rose to $285 million from $12 million in January.
That leverage is the number Wall Street watches. Before the report, an Earnings Whispers preview put expected net leverage near 3.9 times at closing. By the loan’s covenant math, the filing shows 4.38 times, under a ceiling of 5.0.
The fourth quarter is where the year gets saved or lost. NCM guided to $117 million to $124 million in revenue and $42 million to $48 million in adjusted OIBDA. Lesinski said the company is “encouraged by early fourth-quarter trends across both networks.”
He will not be around to collect on it. The board has hired Korn Ferry to find his successor, and Lesinski’s departure is expected Dec. 31. The next CEO inherits a combined network of roughly 48,000 screens and a loan priced at SOFR plus 7 points.
Sources
- National CineMedia – National CineMedia, Inc. Reports Results for Fiscal Third Quarter 2026 – https://investor.ncm.com/news-releases/news-release-details/national-cinemedia-inc-reports-results-fiscal-third-quarter-2026
- SEC – National CineMedia Form 10-Q for the quarter ended Oct. 1, 2026 – https://www.sec.gov/Archives/edgar/data/0001377630/000119312526455444/ncmi-20261001.htm
- Earnings Whispers via Finviz – National CineMedia’s box office lift faces a leverage test as Captivate deal weighs on shares – https://finviz.com/news/414500/national-cinemedias-box-office-lift-faces-a-leverage-test-as-captivate-deal-weighs-on-shares
Featured photo: qui nguyen / Unsplash (Unsplash License).
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