Cinemark Surpasses $1 Billion for the First Time: The…

The recovery of movie theaters post-pandemic is not solely driven by billion-dollar Hollywood films.

Cinemark, which operates approximately 500 cinemas and over 5,500 screens, surpassed $1 billion in quarterly revenue for the first time in its history in the second quarter of 2026. The company's total revenue increased by 15.5% compared to the same period last year, reaching $1 billion 86 million, while its net profit hit $139.4 million.

This result surpassed the previous record of approximately $958 million set in the second quarter of 2019 when Avengers: Endgame was released. However, what makes this new record interesting is that Cinemark did not rely solely on big studio films.

Billion-Dollar Films Filled Theaters

The North American box office reached $2.97 billion in the second quarter of 2026, marking the highest level since the pandemic. This figure represents an 11% increase compared to the same period last year.

The Super Mario Galaxy Movie, Michael, and Toy Story 5 were among the major contributors to the quarter, thanks to their billion-dollar performances worldwide and the significant audience traffic they brought to Cinemark theaters.

Cinemark's box office revenues reached a record high of $540 million, while 63.7 million viewers attended theaters globally during the three-month period.

However, according to company management, alongside the anticipated big films, two surprise horror productions played a critical role in shaping the record.

$750,000 Obsession Became More Profitable Than Blockbusters

Shot by Curry Barker with a budget of approximately $750,000, Obsession premiered as a small horror film purchased from a festival. The film later grossed $261 million in North America, turning into an unexpected revenue source for cinema operators.

A film's box office revenue does not all stay in the cinema. Ticket revenues are shared between the distributing studio and the cinema operator according to their contract. Although these ratios are not disclosed to the public, studios can often take a higher share from box office revenues for high-budget films that are expected to be in high demand.

According to TheWrap's industry report, the share that goes to cinemas from big studio productions like The Super Mario Galaxy Movie may be lower, while films like Obsession, which have a low budget and initially limited expectations, can provide more favorable terms for operators.

Therefore, the unexpected box office success of Obsession may have generated a higher profit margin for Cinemark than some billion-dollar films.

This does not mean that the film's total box office exceeded that of major productions. The difference arises from the more favorable share that Cinemark receives from each ticket sale.

Backrooms Brought Young Audiences to Theaters

Backrooms, which originated from short videos released online by Kane Parsons, was also one of the biggest surprises of the second quarter.

Made for approximately $10 million, the film grossed $81.5 million in its opening weekend in the U.S. and Canada, marking the largest opening in A24's history. It was notable that 86% of the opening weekend audience was under 35, with more than half being under 25.

The common feature of Backrooms and Obsession is that they emerged not from the traditional Hollywood system but from YouTube and internet culture. Both films directly brought the young follower base established by content creators in the online space into theaters.

Cinemark CEO Sean Gamble stated that the company's data shows a particularly strong increase among young audiences. According to Gamble, the frequency of cinema visits by viewers under 25 has risen by approximately 20% compared to last year.

A Horror Film Attracts Audiences to Other Films

According to Cinemark management, the arrival of young viewers to theaters does not only generate revenue from the horror films they watch.

Sean Gamble noted that productions like Obsession and Backrooms have a ready and young audience, and these individuals discover other films currently screening when they come to the cinema. Gamble expressed that this creates a positive cycle as audiences return to theaters for different productions later.

This situation illustrates why horror cinema holds special significance for operators. Films in this genre are often produced with lower budgets, appeal to young audiences, and offer a theater experience suitable for group viewings with friends.

Moreover, these audiences do not just buy tickets. They also spend on food, drinks, and film-related merchandise before or during the movie.

Concession Revenue Reached $433 Million

Cinemark's revenue from food, drinks, and merchandise sales in the second quarter increased by 15%, reaching $433.3 million.

The average food and drink spending per viewer was recorded at $6.80. The company also announced its highest quarterly result in film-themed merchandise sales in its history.

The importance of concessions in Cinemark's revenue model stems from the fact that a large portion of this revenue goes directly to the cinema operator, unlike ticket sales.

Therefore, films like Backrooms and Obsession, which attract young audiences in large groups to theaters, have boosted the company's results not only through box office numbers but also through sales of popcorn, drinks, and other products.

The New Star in Cinema Economics Could Be Low-Budget Horror

The second quarter of 2026 demonstrated that major Hollywood films are still indispensable for movie theaters. Premium theaters, high ticket prices, and extensive distribution capacity made productions like Mario, Michael, and Toy Story 5 the foundation of record revenue.

However, Obsession and Backrooms showed that operators do not have to rely solely on the schedules of major studios.

A low-budget horror film that has an existing follower base online and performs significantly better than expected, combined with favorable revenue sharing, a young audience, and high concession spending, can become more efficient for cinema chains than blockbuster productions.

Cinemark's first billion-dollar quarter thus not only indicates that movie theaters have recovered. It also reveals that this recovery did not happen with the old formula.

While the poster of the record may feature billion-dollar films, behind the box office lies a horror film made for just $750,000.