Ellis Jacob, CEO of Cineplex, says young audiences are driving Hollywood’s box office rebound by heading back to the multiplex in big numbers.
“The big change is Gen Z are coming back to the movies in a big way, and that’s making a difference,” Jacob told The Hollywood Reporter on Tuesday after the Canadian exhibitor posted second quarter financial results where Cineplex swung to a profit and higher overall revenues on box office draws like The Odyssey and Michael, in addition to younger audiences embracing breakout horror pics in Obsession and Backrooms.
The better news may be Gen Z are also ditching their phones when coming out to movies for outings with friends and family. “They’re tired of looking at the small screen. They’re going out on a social basis and having a good time and that to me is very positive,” Jacob added.
Gen Z are not only seeing movies a second or third time in theaters, but they have a range of platform options at Cineplex, from VIP auditoriums to premium screen experiences like the Imax, 4DX, Screen X and Ultra AVX platforms.
On Tuesday, Cineplex reported a record second quarter revenue up nearly 10 percent to $383.7 million as theater attendance rose 9.3 percent to 12.7 million patrons. And the company swung to net income at $7.8 million for the latest financial quarter, compared to a net loss of $2.2 million in the same period of 2025.
The Canadian cinema chain posted second quarter box office revenues up 11 percent to $176.2 million, compared to a year-earlier $158.4 million when Jurassic World Rebirth and F1: The Movie played on its screens. That represented the highest second quarter box office for Cineplex since 2019.
The second quarter performance for Cineplex comes after the wider exhibition industry has seen gains from a steady and diverse supply of Hollywood tentpole releases and surprise horror pics like Backrooms and Obsession, to get film lovers back in the habit of going to the multiplex.
Cineplex set all-time quarterly records for box office per patron at $13.91 and concession sales per patron at $10.26. Impressive box office for Christopher Nolan’s epic drama The Odyssey, followed by equally strong ticket sales for Spider-Man: Brand New Day, has allowed exhibitors like Cineplex to look to full-year 2026 box office likely to exceed the comparable performance for last year, and possibly set a new annual record.
Jacob on an earlier morning analyst call argued “a broad range of compelling content across multiple genres and formats” more than any one Hollywood tentpole drew Canadians to his theaters. These included family-friendly films like Toy Story 5 and The Super Mario Galaxy Movie.
Lionsgate’s Michael biopic also became the highest grossing film of all-time distributed by Cineplex Pictures, the exhibitor’s distribution arm. “The momentum we are seeing in the business is translating into stronger profitability, cash flow generation and balance sheet flexibility,” Jacob said of the positive impact of Hollywood’s box office rebound and a consistent and diversified film slate on Cineplex’s bottom line.
The strong box office during the second quarter helped offset a 3.7 percent fall in location-based entertainment revenues at $32 million as lower consumer spending due to a slowing Canadian economy weighed on revenues at its out-of-home amusement complexes.
Jacob also gave an update on succession plans at Cineplex after he announced a year ago he would remain CEO of the company until the end of 2026, as planned, to assist a transition to new leadership. “I’m preparing to retire by the end of the year, and the board is managing the process and it’s well underway,” he told analysts.
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