The Marcus (MCS) Q2 2025 earnings summary

Executive summary

• Second quarter fiscal 2025 saw significant year-over-year growth in revenue, operating income, and net earnings, driven by a strong and diverse film slate in theaters and stable group bookings in hotels, despite ongoing renovations impacting some hotel operations.

• Net earnings for Q2 2025 were $7.3M ($0.23 per share), reversing a net loss in Q2 2024, with all guest rooms at Hilton Milwaukee now fully renovated.

• Theatres saw record Memorial Day weekend results and a 29.8% revenue increase, while hotels maintained revenue levels despite room displacement from renovations.

Financial highlights

• Q2 2025 total revenues were $206.0M, up 17% year-over-year; operating income was $13.0M, up from $2.2M; net earnings reached $7.3M versus a net loss of $20.2M in Q2 2024.

• Adjusted EBITDA for Q2 2025 was $32.3M, a 46.9% increase year-over-year.

• First half 2025 revenues were $354.8M, up 12.8% year-over-year; Adjusted EBITDA for the first half was $32.0M, up 32%.

• Cash and cash equivalents at June 30, 2025, were $14.9M; debt-to-capitalization ratio was 0.29, net leverage 1.61x.

• Cash flow from operations was $31.6M, down from $36M in the prior year quarter.

Outlook and guidance

• Capital expenditures for Fiscal 2025 are expected to be $70–$85M, with a step down in CapEx anticipated for 2026 as the reinvestment cycle concludes.

• The company expects improved admission per cap growth in the second half of the year as new pricing strategies take effect.

• Group room revenue bookings for 2025 are running slightly ahead of last year, and 2026 group pace is 20% ahead year-over-year; banquet and catering revenue pace for 2025 and 2026 is running 15–20% ahead.

• Effective tax rate for fiscal 2025 is expected in the 28–32% range, excluding one-time items.

• Management expects continued performance improvements in both business segments.