National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. The company engages in the sale ...
National CineMedia, Inc. (NCMI) is a leading cinema advertising company headquartered in Centennial, Colorado. Founded in 2002, NCM operates the largest cinema advertising network in North America, serving as a key medium for brands to reach captive audiences in movie theaters. The company's primary offering is 'Noovie', a pre-show entertainment ...National CineMedia, Inc. (NCMI) is a leading cinema advertising company headquartered in Centennial, Colorado. Founded in 2002, NCM operates the largest cinema advertising network in North America, serving as a key medium for brands to reach captive audiences in movie theaters. The company's primary offering is 'Noovie', a pre-show entertainment program that combines movie trailers, trivia, and advertisements, shown on screens in over 20,000 screens across the U.S. Additionally, NCM operates the Lobby Entertainment Network, a series of digital screens in theater lobbies, and offers various forms of in-lobby advertising and promotions.
NCM's business model revolves around selling advertising space to national, regional, and local advertisers. The company generates revenue through advertising sales, with a focus on delivering high-impact, full-funnel marketing solutions. In recent years, NCM has expanded its digital capabilities through platforms like NCM Boost, an audience accelerator digital product, NCM Boomerang, a retargeting solution, NCM Bullseye, an AI-driven creative tool for hyper-localized messaging, and NCM Blueprint, which leverages real-time renovation permit data to target homeowners. These innovations reflect NCM's commitment to data-driven advertising and its ability to adapt to changing consumer behaviors.
Financially, NCM has faced challenges, with negative net income and EBITDA margins, but has managed to maintain a stable market presence. As of the latest data, the company has a market capitalization of approximately $378 million, with a beta of 1.44, indicating moderate volatility. NCM employs 248 full-time employees and operates with a focus on maximizing shareholder value through strategic partnerships and technological advancements. The company's leadership, under CEO Thomas F. Lesinski, continues to drive growth and innovation in the cinema advertising space, positioning NCM as a premier destination for advertisers seeking to engage with young, diverse, and hard-to-reach audiences.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$243.2M
+1.0%
+71.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-10.6M
+52.5%
+65.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+30.3%
+0.4%
+876.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-5.7%
+29.4%
+72.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-4.4%
+52.9%
+79.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.8M
-94.9%
-112.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.2%
-94.9%
-107.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
5.5%
-7.0%
+1.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.42x
0.0%
+1.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the National CineMedia, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chan Park, Senior Vice President of Finance. Please go ahead.
Park Chan: Thank you, operator, and good afternoon. I'm joined today by our Chief Executive Officer, Tom Lesinski; and our Chief Financial Officer, Ronnie Ng. I would like to remind our listeners that this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts communicated during this conference call may constitute forward-looking statements. These forward-looking statements involve risks and uncertainties. Important factors that can cause actual results to differ materially from the company's expectations are disclosed in the risk factors contained in the company's filings with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors. Further, our discussion today includes some non-GAAP measures. In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP basis measurement. These reconciliations can be found at the end of today's earnings release or on the Investor Relations page of our website at ncm.com. Now I'll turn the call over to Tom.
Thomas Lesinski: Thank you, Chan, and good afternoon, everyone. We appreciate you joining us for today's call. Alongside our second quarter results, which we will get to shortly, I'm excited to discuss NCM's announcement that the company has entered into a definitive agreement to acquire Captivate, the leading operator of digital video elevator and lobby advertising in North America. Captivate operates over 26,000 digital video screens in more than 11,000 buildings across more than 170 designated market areas in the United States and Canada. Its core business is concentrated in over 1,600 Class A and B office buildings, where more than 12,000 screens reach a sought-after affluent professional audience. In 2023, Captivate expanded to residential, and today operates a residential network across more than 9,700 locations. Together, NCM and Captivate will create the leading premium video and digital out-of-home advertising platform with more than 48,000 digital screens across theaters, office buildings, and residential properties in 185 designated market areas, including all of the top 100 markets. The combination brings together 3 complementary premium audiences that are highly sought after by advertisers: NCM's young diverse moviegoing audience and Captivate's affluent professional audience in both office buildings and residential properties. The combined platform will provide a powerful force-multiplying solution for high-attention advertising delivery, allowing …
