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Reading International Inc (RDI)
NASDAQ:RDI
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Reading International (RDI) AI Stock Analysis

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RDI

Reading International

(NASDAQ:RDI)

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Neutral 51 (OpenAI - Gpt-5.6Sol)
Rating:51Neutral
Price Target:
$2.00
▲(37.93% Upside)
Action:Reiterated
Date:08/20/26
The score is primarily held back by financial risk—negative equity and high leverage despite only modest TTM profitability and margin pressure—partially offset by improving cash flow and strong Q2 operating momentum from the latest earnings call. Technicals are supportive with a strong trend, but overbought signals temper the outlook, and valuation remains unattractive/uncertain due to a negative P/E and no dividend yield data.
Positive Factors
Australian cinema leadership
Australia is delivering strong revenue and profit growth, strengthening RDI’s geographic earnings base. Record attendance economics and ticket pricing, alongside higher concession spending, could support more resilient performance than weaker cinema markets.
Negative Factors
Highly leveraged balance sheet
Negative equity and substantial debt materially limit financial flexibility. This capital structure leaves RDI more exposed to weaker attendance, higher borrowing costs, or asset underperformance, and restricts its ability to invest without relying on refinancing or disposals.
Read all positive and negative factors
Positive Factors
Negative Factors
Australian cinema leadership
Australia is delivering strong revenue and profit growth, strengthening RDI’s geographic earnings base. Record attendance economics and ticket pricing, alongside higher concession spending, could support more resilient performance than weaker cinema markets.
Read all positive factors

Reading International (RDI) vs. SPDR S&P 500 ETF (SPY)

Reading International Business Overview & Revenue Model

Company Description
Reading International, Inc. (RDI) is an enterprise primarily involved in the ownership, expansion, and management of both entertainment venues and property holdings across the United States, Australia, and New Zealand. The company operates through...
How the Company Makes Money
RDI generates revenue primarily from two segments: (1) Cinema Exhibition and (2) Real Estate. In its cinema exhibition business, the company earns money mainly from box office ticket sales for films shown in its theaters. It also typically derives...

Reading International Earnings Call Summary

Earnings Call Date:Aug 14, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The earnings call emphasized multiple operational improvements and record performances—record second-quarter revenue in several markets, a large YoY jump in adjusted EBITDA, a return to Q2 net income, very strong Australian circuit results, F&B and loyalty momentum, and active asset monetization and leasing efforts. Offsetting these positives are near-term liquidity and refinancing pressures (low cash balance, material outstanding debt and upcoming maturities), reliance on asset sales to pay down debt, rising operating and labor costs, and ongoing legal/transaction uncertainties. On balance, operational momentum and measurable improvements dominate the narrative, but the company still faces material balance sheet and execution risks.
Positive Updates
Record Quarterly Revenue
Consolidated Q2 2026 revenue of $66.9 million, up $6.5 million quarter-over-quarter and the highest second quarter total in six years (since Q1 2019). 6-month consolidated revenue rose $11.5 million to $112.0 million versus prior year.
Negative Updates
Low Cash Balance and Near-Term Debt Maturities
Cash and cash equivalents were $5.7 million as of June 30, 2026 and cash decreased ~$4.9 million year-to-date. Total outstanding borrowings were $183.1 million with several near-term maturities that have required amendments and short extensions (Bank of America facility extended to Dec 21, 2026; Santander extended to Oct 1, 2026).
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Q2-2026 Updates
Negative
Record Quarterly Revenue
Consolidated Q2 2026 revenue of $66.9 million, up $6.5 million quarter-over-quarter and the highest second quarter total in six years (since Q1 2019). 6-month consolidated revenue rose $11.5 million to $112.0 million versus prior year.
Read all positive updates
Company Guidance
The company guided that its near-term priorities are debt reduction, selective asset monetizations and targeted cinema upgrades: management expects the Cinema 1,2,3 sale to be contract-ready shortly with closing early in Q4 (proceeds to first pay down the Valley National loan of about $19.7M—saving roughly $2M/year in interest—and then ~$5.4M on the Bank of America/Bank of Hawaii facility—saving about $650K/year), and said it is pursuing a replacement lender for the Santander Minetta/Orpheum loan with a new arrangement expected in the next few months (Bank of America facility maturity extended to Dec 21, 2026; Santander extended to Oct 1, 2026); liquidity and balance-sheet metrics noted include cash of $5.7M (June 30), total borrowings $183.1M and total assets $429.4M, and the Board has directed overall debt reduction with net proceeds to be used for further paydown of debt, cinema renovations and operating accruals; operational guidance highlighted continued Q3/Q4 box office momentum (Spider‑Man, The Odyssey now; Avengers: Doomsday, Dune 3 and Jumanji 3 in December), completion of Hawaii seat refurbishments in Q3 2026 and U.S. seat work into 2027, a Wellington renovation targeted for late 2027, a premium Angelika membership launch before year‑end 2026, and ongoing focus on occupancy-cost realignment and F&B/loyalty expansion following Q2 strength (Q2 consolidated revenue $66.9M, Q2 adjusted EBITDA $11.3M, Q2 net income $2.3M, Australian cinema revenue $30M up 31%, global real estate revenue $4.9M, loyalty base >625K members and 41K paid ANZ members).

Reading International Financial Statement Overview

Summary
Operations are showing early stabilization (TTM revenue +3.1%) and cash generation has turned positive (TTM operating cash flow ~$5.3M; free cash flow ~$5.0M). However, profitability remains weak (TTM net margin ~-4.6%, EBITDA margin ~2.1%) and the balance sheet is a major constraint with negative equity (~-$23.3M TTM) and very high debt (~$357M TTM), limiting financial flexibility.
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
52
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Dec 2021
Income Statement
Total Revenue214.46M202.99M210.53M222.74M203.12M139.06M
Gross Profit30.13M27.20M21.91M26.56M15.40M6.05M
EBITDA24.15M18.44M2.90M8.94M1.11M100.34M
Net Income-12.59M-14.14M-35.30M-30.67M-36.18M31.92M
Balance Sheet
Total Assets429.41M434.93M471.01M533.05M641.72M687.70M
Cash, Cash Equivalents and Short-Term Investments5.69M10.53M12.36M12.92M35.00M83.25M
Total Debt357.19M360.97M390.22M418.78M443.60M487.06M
Total Liabilities452.55M453.03M475.80M500.06M578.44M582.64M
Stockholders Equity-23.34M-18.24M-4.36M33.09M62.86M104.07M
Cash Flow
Free Cash Flow5.00M-2.91M-9.37M-15.08M-35.74M-26.97M
Operating Cash Flow5.25M-1.58M-3.83M-10.60M-26.35M-11.41M
Investing Cash Flow-2.12M37.11M3.96M-2.70M-9.49M129.61M
Financing Cash Flow-7.43M-37.89M337.00K-5.80M-16.56M-52.37M

Reading International Risk Analysis

Reading International disclosed 34 risk factors in its most recent earnings report. Reading International reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Reading International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$909.13M40.585.01%1.34%1.81%65.53%
67
Neutral
$4.34B19.9526.76%1.07%4.54%-23.98%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
$530.06M-27.04-2.03%-4.59%87.95%
52
Neutral
$58.72M-4.09-26.90%6.28%-410.92%
51
Neutral
$56.90M-3.5350.09%-2.17%25.32%
50
Neutral
$2.37B-2.4531.43%6.41%-19.34%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RDI
Reading International
1.94
0.40
25.97%
AMCX
AMC Networks
12.71
5.72
81.83%
CNVS
Cineverse
2.40
-2.65
-52.48%
CNK
Cinemark Holdings
37.10
11.48
44.83%
MCS
Marcus
29.62
14.29
93.24%
AMC
AMC Entertainment
2.61
-0.23
-8.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2026