MW AMC got a difficult quarter out of the way. Now cash is the focus.

By James Rogers

AMC's cash position is in the spotlight as debt repayments loom

Movie-theater chain and original meme stock AMC Entertainment Holdings Inc. successfully handled the weakest first-quarter box office since 1996 when it reported results this week, but must now make cash its focus, says Wedbush.

"While Q1 was a difficult quarter, AMC maintained its market share," Wedbush analyst Alicia Reese wrote in a note released Thursday. The company is also closing more underperforming theaters, and is set to benefit from a box-office tailwind in the rest of 2025, according to the analyst.

However, Reese said that the company's cash position is also hugely important. AMC $(AMC)$ ended the quarter with cash and cash equivalents of $378.7 million, down from $632.3 million at the end of the prior quarter.

"As cash is limited and AMC has $43 million in debt due this year, another $173 million due in 2026, and $526 million due by 2027, it has to prioritize well," wrote Reese.

Related: AMC's revenue slides amid weakest first-quarter box office since 1996

In January, AMC completed the at-the-market offering it announced a month earlier, selling 50 million shares.

"It will likely seek shareholder approval to issue more shares in 2025 while renegotiating debt maturities and terms to provide liquidity," Reese said.

AMC Chief Executive Adam Aron has said there will be no more cash raised from the sale of common stock in 2025 unless approved through a shareholder vote.

Reese noted that AMC guided to roughly flat year-over-year capital expenditure in 2025. This, she explained, "is reassuring, as [AMC's] upgrade projects require little capital."

Related: AMC to reap the rewards as 'A Minecraft Movie' energizes moviegoers

Last year, AMC announced its Go Plan, a $1.5 billion reinvestment effort to boost the moviegoing experience at its theaters.

AMC has also been busy restructuring its debt. Last year the company pushed $2.4 billion of its long-term debt out from 2026 to 2029 and 2030.

The company's shares ended Thursday's session down 0.4% to snap a two-day losing streak. The stock is down 32.4% in 2025, outpacing the S&P 500 index's SPX decline of 3.7%.

"We expect AMC's shares to remain rangebound in the near term as it works out its near-term capital requirements," Reese wrote. "Still, a strong industry backdrop coupled with the savvy refinancing could better position the company in the coming years, while issuing more shares could pressure the share price further."

Related: This cinema stock is a 'safe bet in a volatile market' - and it's not AMC or Cinemark

Wedbush maintained its neutral rating and $3 price target for AMC. Of six analysts surveyed by FactSet, five have a hold rating, and one has a sell rating for AMC.

-James Rogers

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May 08, 2025 16:40 ET (20:40 GMT)

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