AMC Entertainment Holdings, Inc. (NYSE:AMC) just reported the strongest quarter in its 106-year history, but record EBITDA wasn’t management’s biggest message to investors. Instead, CEO Adam Aron used the company’s second quarter earnings call to argue that AMC is now “within sight” of something that has largely eluded the company since the pandemic: generating positive free cash flow over an entire year.
For investors who have spent years focusing on dilution, debt and meme-stock volatility, that may represent the company’s most meaningful shift yet.
Record EBITDA, Stronger Cash Flow
AMC reported record second-quarter adjusted EBITDA of $321.4 million, up 70% year-over-year, on record revenue of nearly $1.6 billion. More importantly, the company converted that operating momentum into $190.1 million of free cash flow during the quarter, giving management confidence that consistent annual cash generation is now within reach.
“We’re within sight of being cash flow positive, not for a quarter, but for a year,” Aron said during the earnings call. He later acknowledged the company is “not quite at the promised land yet… but we’re ever so close.”
