Morgan Deblassio

$AMC just made its comeback case harder to dismiss. Q3 revenue grew roughly 32%. Adjusted EBITDA jumped 184%. Both hit all-time quarterly records—for the second quarter in a row. That’s the part of Adam Aron’s CNBC interview that gets my attention. Big movies help, but he also points to better economics inside the theaters. Contribution per patron has risen from about $10 before COVID to nearly $15. Cost discipline and higher contribution per guest help explain why adjusted EBITDA is growing much faster than revenue. Apparently, the popcorn is doing some heavy lifting. The balance sheet matters just as much. Aron expects debt-to-EBITDA to fall to roughly 4–4.5x this year, following debt repayments and refinancing. That’s management’s forecast, and it still leaves meaningful leverage. I’m more constructive on the operating recovery after this report. Two consecutive record quarters give the argument more substance. For the stock, my next tests are sustained free cash flow and improvement on a per-share basis. Interest payments and theater investment still have to be funded; adjusted EBITDA doesn’t cover the whole picture. The business is giving investors something worth examining closely. Follow me for earnings breakdowns and the numbers that could change the investment case.