The Marcus (MCS) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 Q1 revenues rose 7.4% year-over-year to $148.8M, aided by four extra operating days from a fiscal calendar change.

• Operating loss widened to $20.4M, impacted by higher labor, depreciation, and stock-based compensation, partially offset by asset sales.

• Net loss increased to $16.8M from $11.9M, with diluted EPS at $(0.54) versus $(0.38) prior year.

• Adjusted EBITDA was a loss of $0.3M, down from a $2.3M gain last year, mainly due to higher costs.

• Over $25M was returned to shareholders in the past four quarters, including $7.1M in Q1 share repurchases.

Financial highlights

• Consolidated revenue increased by $10.2M year-over-year, with $9.2M attributed to the calendar change.

• Total costs and expenses rose to $169.2M from $155.2M, driven by higher labor, film costs, and depreciation.

• Cash flow from operations was a use of $35.3M, compared to $15.1M last year, due to timing of payables and lower EBITDA.

• Capital expenditures were $23M, mainly for Hilton Milwaukee renovation and theatre maintenance.

• Cash and equivalents at quarter-end were $11.9M, with over $180M available under the revolver.

Outlook and guidance

• Full-year outlook remains positive, with expected growth in both theaters and hotels, and a strong film slate through 2026.

• Hotels expect continued group and event business growth, with bookings and banquet pace ahead of last year.

• Fiscal 2025 effective tax rate expected in the 28–32% range.

• Capital expenditures for fiscal 2025 projected at $70–$85M.

• Leisure travel demand may soften near-term, but group business remains stable.