How AMC (AMC Entertainment Holdings) Makes Money in 2025: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a cinema and entertainment operator like AMC (formerly AMC Entertainment Holdings) makes money is essential for investors and anyone interested in the business of movie exhibition and entertainment. In this post, we break down AMC's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick AMC Overview

AMC operates the largest chain of movie theaters in the world, offering theatrical exhibition services, premium cinema experiences, and related entertainment products. Revenue comes primarily from admissions (ticket sales), food and beverage sales at concession stands, and ancillary services such as advertising and special event hosting. The company’s business segments include domestic and international theater operations, with a focus on maximizing per-patron spending and leveraging its scale for operational efficiency.

Revenue Breakdown

• Total Revenue (Q2 2025): $1.40B (+35.6% YoY)
  • Admissions Revenue: $762.6M (54.6% of total)
  • Food and Beverage Revenue: $499.6M (35.7% of total)
  • Other Theatre Revenue: $97.9M (7.0% of total)
  • Advertising Revenue: $37.8M (2.7% of total)
  • Growth is powered by a rebound in box office attendance, premium format surcharges, and increased per-guest spending at concessions.

Gross Profit and Margins

• Gross Profit: $909.7M (65.1% gross margin)
  • Cost of Revenue: $488.2M (down 39.8% YoY)
  • AMC maintains robust margins due to its scalable theater network, premium pricing strategies, and improved cost controls as attendance recovers.
• Most costs come from film exhibition licensing fees, concession product costs, and direct theater operating expenses (labor, utilities, maintenance).

Operating Income and Expenses

• Operating Income: $92.6M (flat YoY, 6.6% margin)
• Operating Expenses: $817.1M (+205.6% YoY)
  • R&D: N/A (AMC does not report R&D as a separate line item)
  • SG&A: $280.8M (+5.0% YoY, 20.1% of revenue) — includes corporate overhead, marketing, and administrative costs
  • AMC continues to invest in digital ticketing, loyalty programs, and premium experiences while maintaining efficiency in core operations.

Net Income

• Pre-Tax Income: $3.5M (down 89.1% YoY, -0.3% margin)
• Income Tax: $1.2M (34.3% effective tax rate)
• Net Income: $4.7M (down 85.7% YoY, -0.3% net margin)
• AMC converts a minimal portion of sales into profit due to high fixed costs, interest expenses, and ongoing investments in theater upgrades.

What Drives AMC's Money Machine?

• Admissions Revenue: 54.6% of revenue, driven by blockbuster releases and premium format surcharges
• Per-Patron Spending: Food and beverage sales account for 35.7% of revenue, with strong margins on concessions
• Strategic Investments: Upgrades to premium formats (IMAX, Dolby Cinema), digital ticketing, and loyalty programs to boost attendance and spending
• Future Growth Areas: Advertising, special events, and alternative content screenings are expanding, though not yet major profit contributors

Visualizing AMC's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and theater operations) taking the largest chunk.
• Even after significant costs and investments, only -0.3% of revenue drops to the bottom line, highlighting the challenges of high fixed costs and interest expenses.

Key Takeaways

• AMC's money comes overwhelmingly from admissions (ticket sales) and food & beverage sales at theaters
• High gross margins illustrate the power of AMC's scale and premium pricing, but net margins remain thin due to heavy operating and interest expenses
• Heavy investment in digital and premium experiences, balanced by ongoing cost controls
• Ongoing growth is driven by box office recovery, per-patron spending, and new revenue streams like advertising and special events

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best) overall value plays for 2025
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About AMC's Income Statement

1. What is the main source of AMC's revenue in 2025?

AMC generates over 54% of its revenue from admissions (ticket sales), with food and beverage sales contributing another 36%. Other sources include theater rentals, advertising, and special events.

2. How profitable is AMC in Q2 2025?

AMC reported net income of $4.7M in Q2 2025, with a net margin of approximately -0.3%, reflecting moderate profitability pressures from high fixed costs and interest expenses despite strong gross margins.

3. What are the largest expense categories for AMC?

The biggest expenses on AMC's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $280.8M in Q2 2025 (20.1% of revenue). Other major costs include film exhibition fees and theater operating expenses.

4. Why does international operations operate at a loss?

International segments, despite generating significant revenue, posted an operating loss in Q2 2025. This is because AMC aggressively invests in theater upgrades and market expansion, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does AMC's effective tax rate compare to previous years?

AMC's effective tax rate in Q2 2025 was 34.3%, consistent with previous years. This moderate rate is primarily due to the geographic mix of earnings and limited tax benefits from share-based compensation and international structuring.