--- title: IMAX Corporation Reports Third Quarter 2025 Results publisher: "IMAX" description: "IMAX delivers record Q3 financial results across key metrics: Record third quarter Revenue of $106.7 million More than 30% YoY growth in Net Income, Adjusted EBITDA (1) , EPS and Adjusted EPS (1) Strong profitability with Net Income Margin of 21% and Adjusted EBITDA (1) margin of 49% Record" canonical: "https://www.imax.com/pr/imax-corporation-reports-third-quarter-2025-results" date: 2025-10-23 last_updated: 2025-10-23 --- IMAX Corporation Reports Third Quarter 2025 Results =================================================== Thu, Oct 23, 2025 * IMAX delivers record Q3 financial results across key metrics: * Record third quarter Revenue of $106.7 million * More than 30% YoY growth in Net Income, Adjusted EBITDA(1), EPS and Adjusted EPS(1) * Strong profitability with Net Income Margin of 21% and Adjusted EBITDA(1)margin of 49% * Record quarterly cash flow of $67.5 millionin Cash from Operating Activities * Highest grossing third quarter ever for IMAX at the global box office with $368 million— up 50% YoY * IMAX local language box office stands at $343 millionthrough September — shattering the previous full-year record by more than 40% and counting * System installations pacing to high-end of full year guidance (150 to 160) and signings of 142 year-to-date have eclipsed full-year 2024 (130) * Highly promising slate ahead in the fourth quarter, with _Avatar: Fire and Ash_, _Wicked: For Good_, _Zootopia 2_, _The Running Man_, and _Predator: Badlands_as IMAX remains on track for $1.2 billionin global box office in 2025 NEW YORK\--(BUSINESS WIRE)--Oct. 23, 2025-- IMAX Corporation(NYSE: IMAX) today reported excellent financial results for the third quarter of 2025, demonstrating the value of its unique global entertainment platform and broad content portfolio. This press release features multimedia. View the full release here: [https://www.businesswire.com/news/home/20251023023957/en/](https://www.businesswire.com/news/home/20251023023957/en/) ![Infographic highlighting IMAX's 3Q 2025 earnings results.](https://mms.businesswire.com/media/20251023023957/en/2618633/4/Q3-25_Earnings_Infographic.jpg) Infographic highlighting IMAX's 3Q 2025 earnings results. “IMAX is moving into a new position — building to something bigger — and our performance for the quarter and year to date demonstrate we’re breaking out and delivering at a higher level,” said Rich Gelfond, CEO of IMAX. “We continue to deliver results that exceed expectations and transcend the broader marketplace – thanks in large part to our unique, diversified global content portfolio spanning Hollywood, local language, music and more.” “We strategically programmed our network to deliver our best third quarter in history and emphatically demonstrated our differentiation. While Domestic box office declined 11%, IMAX box office grew significantly over the same period – up 29% in the domestic market and 50% globally.” “Our leadership with audiences is driving strong global demand for IMAX systems, with installations pacing to the high end of our 2025 guidance of 150 to 160 for the full year, and system sales already eclipsing our full-year total for 2024.” “IMAX has never been better positioned creatively, commercially, or strategically. As successful as we’ve been in 2025, we continue to believe the best is yet to come, with no less than four massive tentpoles expected in 2026 – _The Odyssey_, _Narnia_, _Dune Part Three_and _The Mandalorian and Grogu_ — for which IMAX is a central component of the filmmaking, marketing, and distribution.” \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1) _Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts._ **Third Quarter Financial Highlights** **Three Months Ended September 30, ****_(Unaudited)_** **Nine Months Ended September 30, ****_(Unaudited)_** _In millions of U.S.Dollars, except per share data_ **2025** **2024** **YoY % Change** **2025** **2024** **YoY %** **Change** Total Revenue $ 106.7 $ 91.5 17 % $ 285.0 $ 259.5 10 % Gross Margin $ 67.3 $ 51.0 32 % $ 174.0 $ 141.8 23 % Gross Margin (%) 63.1 % 55.7 % 740bps 61.1 % 54.6 % 650bps Net Income $ 22.6 $ 15.3 48 % $ 43.0 $ 25.8 67 % Net Income Margin (%) 21.2 % 16.8 % 440bps 15.1 % 10.0 % 510bps Net Income Attributable to Common Shareholders $ 20.7 $ 13.9 49 % $ 34.2 $ 20.8 64 % Diluted Net Income Per Share(1) $ 0.37 $ 0.26 42 % $ 0.62 $ 0.39 59 % Total Adjusted EBITDA(2)(3) $ 51.8 $ 38.7 34 % $ 127.8 $ 101.7 26 % Total Adjusted EBITDA Margin (%)(2)(3) 48.6 % 42.3 % 630bps 44.9 % 39.2 % 570bps Adjusted Net Income(1)(2) $ 26.2 $ 18.9 39 % $ 48.0 $ 36.5 32 % Adjusted Earnings Per Share - Diluted(1)(2) $ 0.47 $ 0.35 34 % $ 0.87 $ 0.68 28 % Weighted average shares outstanding (in millions): Basic 53.8 52.7 2 % 53.6 52.6 2 % Diluted 55.6 54.1 3 % 55.2 53.6 3 % \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _Attributable to common shareholders._ _(2)_ _Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts._ _(3)_ _Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was $48.0 millionand $112.7 millionfor the three and nine months ended September 30, 2025, respectively (2024 - $35.6 millionand $90.5 million, respectively). The Company’s Credit Facility covenant is calculated on a trailing twelve-month basis._ **Third Quarter Segment Results(1)** **Content Solutions** **Technology Products and Services** **Revenue** **Gross Margin** **Gross** **Margin %** **Revenue** **Gross Margin** **Gross** **Margin %** **3Q25** $ 44.8 $ 31.9 71 % $ 60.4 $ 34.8 58 % **3Q24** 30.1 16.4 55 % 58.0 32.0 55 % **% change** 49 % 94 % 4 % 9 % **YTD25** $ 113.0 $ 77.9 69 % $ 166.7 $ 94.1 56 % **YTD24** 99.2 54.7 55 % 152.0 81.3 54 % **% change** 14 % 42 % 10 % 16 % \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _Please refer to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025for additional segment information._ **Content Solutions Segment** * Content Solutions revenue of $44.8 millionincreased 49% year-over-year. Third quarter 2025 IMAX gross box office increased 50% year-over-year to $367.6 million, setting a new third quarter record. * Third quarter box office growth was driven by a diverse mix of global content that resulted in IMAX delivering 4.2% of the global box office, an increase of 49% year-over-year. Highlights included: * Over 20 Local Language titles including the breakout anime hit _Demon Slayer: Infinity Castle_that has become IMAX’s highest grossing title in Japanas well as our highest grossing domestic foreign language film * Four Filmed for IMAX releases (_Superman, Dongji Rescue, Fantastic Four: First Steps_and _A Writer’s Odyssey 2_) as well as the successful bring back of_F1:The Movie_ * Eight alternative content titles including concert films (_The Grateful Dead Movie_, _David Gilmour Concert_and _PrinceSign O’ the Times_), Hollywoodre-releases (_Jaws, Apollo 13_and _Black Swan_) and live-streamed events (_Dead & Company_and _Spinal Tap II_) * Gross margin for Content Solutions of $31.9 millionincreased 94% year-over-year. The Company saw significant Content Solutions margin expansion going from 55% in Q3 2024 to a record of 71% in Q3 2025, driven by the operating leverage in our business that accompanies box office growth. **Technology Products and Services Segment** * Technology Products and Services revenues and gross margin increased 4% year-over-year to $60.4 millionand 9% year-over-year to $34.8 million, respectively. * Demand for IMAX systems is growing. During the third quarter of 2025, the Company installed 38 systems and year-to-date 95 systems, an increase of 8% compared to 88 systems installed in the same period in 2024. Of the Q3 2025 installations, 17 systems were under sales arrangements, compared to 20 in the third quarter in prior year; year-to-date 43 systems have been under sales arrangements versus 35 in the prior year period. * Commercial network growth continues with the number of IMAX locations increasing to 1,759 from 1,714 in the prior year period. The Company ended the third quarter with a backlog of 478 IMAX systems. **Operating Cash Flow and Liquidity** Net cash provided by operating activities for the nine months ended September 30, 2025increased 65% year-over-year to $98 million, reflecting higher operating profits and improvements in working capital. On July 14, 2025, the Company renewed and expanded its senior secured revolving credit facility, increasing the Company's borrowing capacity from $300 millionto $375 million. The renewed facility includes a reduction in borrowing costs, reflecting improved market conditions and the Company's strong financial position. The facility is designed to provide IMAX with increased financial flexibility to support ongoing operational needs, network expansion, refinancing of existing debt and other general corporate purposes. As of September 30, 2025, the Company’s available liquidity was $544 million. The Company’s liquidity included cash and cash equivalents of $143 million, $346 millionin available borrowing capacity under the Company’s credit facility, and $55 millionin available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $261 millionas of September 30, 2025. In 2021, the Company issued $230 millionof 0.500% Convertible Senior Notes due 2026 (“Convertible Notes”). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750per share of the Company’s common shares. **Share Count and Capital Return** The weighted average basic and diluted shares outstanding in the third quarter of 2025 were 53.8 million and 55.6 million, respectively, compared to 52.7 million and 54.1 million in the third quarter of 2024. For the nine months ended September 30, 2025, IMAX China repurchased 1,495,900 common shares at an average price of HKD 7.56per share ($0.96per share) for a total of HKD 11.3 million($1.4 million), excluding commissions. In June 2025, the Company’s Board of Directors approved an extension of its share repurchase program through June 30, 2027and an increase of approximately $100 millionin the Company’s share repurchase program. As of September 30, 2025, The Company’s total share repurchase authority is $500 millionwith approximately $251 millionavailable under the program. **Supplemental Materials** For more information about the Company’s results, please refer to the IMAX Investor Relations website located at [investors.imax.com](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.imax.com&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=investors.imax.com&index=1&md5=a200d6adfd414f42ac09aa5bd460894f). **Investor Relations Website and Social Media** On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at [investors.imax.com](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.imax.com&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=investors.imax.com&index=2&md5=e2101174d5beb95d211d6e822eba5c0a). The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice. The Company may post additional information on the Company’s corporate and Investor Relations websites, which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company’s website in addition to the Company’s press releases, United States Securities and Exchange Commission(the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); filings and public conference calls and webcasts, for additional information about the Company. References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the SEC’s rules or The New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our websites by reference into this release. **Conference Call** The Company will host a conference call today at 8:30 AM ETto discuss its third quarter 2025 financial results. This call is being webcast and can be accessed at [investors.imax.com](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.imax.com&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=investors.imax.com&index=3&md5=46c7c5ee853642c97cb9ebe474274e5c). To access the call via telephone, interested parties please pre-register at: [https://register-conf.media-server.com/register/BIdeefa35cbfb744abbe2b1d5d16ab7b99](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBIdeefa35cbfb744abbe2b1d5d16ab7b99&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBIdeefa35cbfb744abbe2b1d5d16ab7b99&index=4&md5=2d68439843fc6689ca7c90700a57ed4e)and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at [investors.imax.com](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.imax.com&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=investors.imax.com&index=5&md5=062721b6ddbfeaf13870e09f37dccb12). **About IMAX Corporation** IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you’ve never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX’s network among the most important and successful theatrical distribution platforms for major event films around the globe. IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of September 30, 2025, there were 1,829 IMAX systems (1,759 commercial multiplexes, 10 commercial destinations, 60 institutional locations) operating in 89 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchangeunder the stock code “1970”. IMAX®, IMAX®3D, Experience It In IMAX®, _The_IMAX _Experience_®, DMR®, Filmed For IMAX®, IMAX Live®, IMAX Enhanced®and IMAX StreamSmart® are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit [www.imax.com](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.imax.com&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.imax.com&index=6&md5=3412776d7c919c9261f9ba915cdd09bd). You can also connect with IMAX on Instagram ([www.instagram.com/imax](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.instagram.com%2Fimax&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.instagram.com%2Fimax&index=7&md5=01d0a88b3ec29f63bc52174e5d86f8d2)), Facebook ([www.facebook.com/imax](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.facebook.com%2Fimax&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.facebook.com%2Fimax&index=8&md5=5f6b4ec1109499a6a052245e17038286)), LinkedIn ([www.linkedin.com/company/imax](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fimax&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.linkedin.com%2Fcompany%2Fimax&index=9&md5=2c4711c8c6c857293e07a3d0a77d3f21)), X ([www.twitter.com/imax](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.twitter.com%2Fimax&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.twitter.com%2Fimax&index=10&md5=43c8c13e20574c9ca2deb01f5a1ee980)), and YouTube ([www.youtube.com/imaxmovies](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.youtube.com%2Fimaxmovies&esheet=54343757&newsitemid=20251023023957&lan=en-US&anchor=www.youtube.com%2Fimaxmovies&index=11&md5=86b8a21e63820ebdefb561627476e289)). **Forward-Looking Statements** _This earnings release contains forward looking statements that are based on IMAX Corporation(the “Company”) management’s assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. In some cases, you can identify these statements by_ _forward-looking words such as “believe,” “continue,” “expect,” “may,” “project,” “momentum,” “on track,” “prospects,” “runway,” “will” or the negative or other variations thereon or comparable terminology. These forward-looking statements include, but are not limited to, statements regarding business and technology strategies and measures to implement strategies, statements about the Company’s belief and expectations, competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for expansion and growth of business, network, operations and technology, future capital expenditures (including the amount and nature thereof), the Company’s technological capabilities and the differentiation thereof, brand equity and brand awareness and the benefits thereof, industry prospects and consumer behavior, future industry developments, including expected releases and the timing and effects thereof, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results, including its box office guidance for 2025. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States, Canada, and China, including with respect to escalating and uncertain tariffs and other trade regulations, as well as economic and trade tensions, trade wars, and geopolitical conflicts and the effects thereof; risks related to the Company’s growth and operations in China; industry conditions in Chinaaffecting both the Company and its partners; risks related to the failure of the Company’s exhibitors being able to fulfill their contractual payment obligations; risks related to the Company’s failure to attract and retain its employee population; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX system agreements; conditions, changes and developments in the commercial exhibition industry; risks related to the Company’s inability to enter into new sales and lease agreements adversely affecting revenue; risks related to the Company’s operating results and cash flow increasing the volatility of the Company’s share price; risks related to currency fluctuations and foreign exchange controls; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cybersecurity and data privacy; risks related to the Company’s inability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; risks associated with the Company’s use of artificial intelligence (“AI”) and exploration of additional use cases of AI; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to sustained inflationary pressure; risks related to political, economic and social instability; the failure to convert system backlog into revenue and cash flows; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the United States Securities and Exchange Commission(the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. These factors, other risks and uncertainties and financial details are discussed in the Company’s most recent Annual Report on Form 10-K, as supplemented by those discussed in the Company’s Quarterly Report on Form 10-Q. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise._ **IMAX Network and Backlog** **Three Months Ended** **Nine Months Ended** **September 30,** **September 30,** **2025** **2024** **2025** **2024** System Signings(1): Sales Arrangements 15 10 49 40 Traditional JRSA 4 6 93 71 Total IMAX System Signings 19 16 142 111 _(1)_ _System signings include new signings of 18 in Q3 2025, 81 in YTD 2025, 15 in Q3 2024 and 42 YTD 2024._ **Three Months Ended** **Nine Months Ended** **September 30,** **September 30,** **2025** **2024** **2025** **2024** System Installations(1): Sales Arrangements 17 20 43 35 Hybrid JRSA 1 — 1 1 Traditional JRSA 20 29 51 52 Total IMAX System Installations 38 49 95 88 _(1)_ _System installations include new systems installations of 23 in Q3 2025, 55 in YTD 2025, 17 in Q3 2024, and 45 in YTD 2024._ **As of September 30,** **2025** **2024** System Backlog: Sales Arrangements 157 170 Hybrid JRSA 94 95 Traditional JRSA 227 207 Total System Backlog 478 472 **As of September 30,** **2025** **2024** System Network: Commercial Multiplex Systems Sales Arrangements 854 820 Hybrid JRSA 119 129 Traditional JRSA 786 765 Total Commercial Multiplex Systems 1,759 1,714 Commercial Destination Systems 10 12 Institutional Systems 60 62 Total System Network 1,829 1,788 **IMAX CORPORATION** **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** _(In thousands of U.S.dollars, except per share amounts)_ **Three Months Ended September 30,** **Nine Months Ended ****September 30,** **_(Unaudited)_** **_(Unaudited)_** **2025** **2024** **2025** **2024** **Revenues** Technology sales $ 19,360 $ 26,305 $ 51,726 $ 54,629 Image enhancement and maintenance services 61,029 46,891 162,636 149,428 Technology rentals 23,336 16,122 61,763 48,766 Finance income 2,929 2,134 8,880 6,713 **106,654** **91,452** **285,005** **259,536** **Costs and expenses applicable to revenues** Technology sales 9,454 10,605 26,029 24,594 Image enhancement and maintenance services 23,065 23,087 63,886 73,371 Technology rentals 6,864 6,741 21,041 19,736 **39,383** **40,433** **110,956** **117,701** **Gross margin** **67,271** **51,019** **174,049** **141,835** Selling, general and administrative expenses 34,219 31,466 102,983 100,287 Research and development 1,505 (265 ) 4,365 3,953 Amortization of intangible assets 1,906 1,544 5,446 4,208 Credit loss expense (reversal), net 596 (1,137 ) 287 (963 ) Restructuring and other charges — — 843 — **Income from operations** **29,045** **19,411** **60,125** **34,350** Realized and unrealized investment gains 34 32 99 94 Retirement benefits non-service recovery (expense) 17 (109 ) (186 ) (323 ) Interest income 557 625 2,211 1,720 Interest expense (1,832 ) (2,240 ) (5,560 ) (6,467 ) **Income before taxes** **27,821** **17,719** **56,689** **29,374** Income tax expense (5,205 ) (2,376 ) (13,688 ) (3,538 ) **Net income** **22,616** **15,343** **43,001** **25,836** Net income attributable to non-controlling interests (1,959 ) (1,447 ) (8,762 ) (5,083 ) **Net income attributable to common shareholders** **$** **20,657** **$** **13,896** **$** **34,239** **$** **20,753** **Net income per share attributable to common shareholders:** Basic $ 0.38 $ 0.26 $ 0.64 $ 0.39 Diluted $ 0.37 $ 0.26 $ 0.62 $ 0.39 **Weighted average shares outstanding (in thousands):** Basic 53,788 52,682 53,561 52,605 Diluted 55,565 54,089 55,242 53,628 Additional Disclosure: Depreciation and amortization $ 30,519 $ 14,900 $ 46,415 $ 48,902 Amortization of deferred financing costs $ 508 $ 493 $ 1,492 $ 1,478 **IMAX CORPORATION** **CONDENSED CONSOLIDATED BALANCE SHEETS** _(In thousands of U.S.dollars, except share amounts)_ **September 30,** **December 31,** **2025** **2024** **Assets** Cash and cash equivalents $ 143,106 $ 100,592 Accounts receivable, net of allowance for credit losses 108,418 107,669 Financing receivables, net of allowance for credit losses 118,944 119,885 Variable consideration receivables, net of allowance for credit losses 83,792 82,593 Inventories 41,435 32,840 Prepaid expenses 15,054 13,121 Film assets, net of accumulated amortization 11,976 8,686 Property, plant and equipment, net of accumulated depreciation 243,836 240,133 Other assets 24,002 22,441 Deferred income tax assets, net of valuation allowance 12,728 14,499 Goodwill 52,815 52,815 Other intangible assets, net of accumulated amortization 33,467 35,124 **Total assets** **$** **889,573** **$** **830,398** **Liabilities** Accounts payable $ 22,484 $ 19,803 Accrued and other liabilities 96,136 100,916 Deferred revenue 64,505 52,686 Revolving credit facility borrowings, net of unamortized debt issuance costs 26,477 36,356 Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs 230,743 229,901 Deferred income tax liabilities 12,521 12,521 **Total liabilities** **452,866** **452,183** **Commitments, contingencies and guarantees** **Non-controlling interests** **721** **680** **Shareholders’ equity** Capital stock common shares — no par value. Authorized — unlimited number. 53,798,934 issued and outstanding (December 31, 2024— 52,946,200 issued and outstanding) 415,617 401,420 Other equity 181,998 185,268 Statutory surplus reserve 4,219 4,051 Accumulated deficit (240,604 ) (274,675 ) Accumulated other comprehensive loss (11,696 ) (16,598 ) **Total shareholders’ equity attributable to common shareholders** **349,534** **299,466** Non-controlling interests 86,452 78,069 **Total shareholders’ equity** **435,986** **377,535** **Total liabilities and shareholders’ equity** **$** **889,573** **$** **830,398** **IMAX CORPORATION** **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** _(In thousands of U.S.dollars)_ **Nine Months Ended September 30,** **_(Unaudited)_** **2025** **2024** **Operating Activities** Net income $ 43,001 $ 25,836 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 46,415 48,902 Amortization of deferred financing costs 1,492 1,478 Credit loss expense (reversal), net 287 (963 ) Write-downs, including asset impairments 1,303 3,034 Deferred income tax expense (recovery) 734 (7,339 ) Share-based and other non-cash compensation 19,050 17,261 Unrealized foreign currency exchange gain (170 ) (527 ) Realized and unrealized investment gain (99 ) (94 ) Changes in assets and liabilities: Accounts receivable (1,131 ) 23,001 Inventories (8,587 ) (6,181 ) Film assets (16,435 ) (17,892 ) Deferred revenue 11,724 (13,393 ) Changes in other operating assets and liabilities 110 (13,771 ) **Net cash provided by operating activities** **97,694** **59,352** **Investing Activities** Purchase of property, plant and equipment (6,750 ) (3,816 ) Investment in equipment for joint revenue sharing arrangements (24,114 ) (21,728 ) Acquisition of other intangible assets (3,915 ) (4,802 ) **Net cash used in investing activities** **(34,779** **)** **(30,346** **)** **Financing Activities** Proceeds from revolving credit facility borrowings 85,000 55,000 Repayments of revolving credit facility borrowings (93,000 ) (32,000 ) Credit facility amendment fees paid (2,041 ) — Repayments of other borrowings (538 ) (489 ) Repurchase of common shares - IMAX Corporation — (18,102 ) Repurchase of common shares - IMAX China (1,454 ) — Taxes withheld and paid on employee stock awards vested (9,742 ) (4,978 ) Common shares issued - stock options exercised 1,394 — Principal payment under finance lease obligations — (480 ) **Net cash used in financing activities** **(20,381** **)** **(1,049** **)** Effects of exchange rate changes on cash (20 ) 249 **Increase in cash and cash equivalents during period** **42,514** **28,206** **Cash and cash equivalents, beginning of period** **100,592** **76,200** **Cash and cash equivalents, end of period** **$** **143,106** **$** **104,406** **Primary Reporting Groups** The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S.GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments. The Company has two reportable segments: 1. Content Solutions, consists of services provided to studios and other content creators, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services. 2. Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems to exhibition customers. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses. **_Segment Revenue and Gross Margin_** **Three Months Ended September 30,** **Nine Months Ended September 30,** **_(Unaudited)_** **_(Unaudited)_** _(In thousands of U.S.dollars)_ **2025** **2024** **2025** **2024** **Revenue** Content Solutions $ 44,832 $ 30,129 $ 113,046 $ 99,218 Technology Products and Services 60,420 57,971 166,652 152,019 Sub-total for reportable segments 105,252 88,100 279,698 251,237 All Other(1) 1,402 3,352 5,307 8,299 **Total** **$** **106,654** **$** **91,452** **$** **285,005** **$** **259,536** **Gross Margin** Content Solutions $ 31,923 $ 16,449 $ 77,908 $ 54,686 Technology Products and Services 34,820 31,964 94,084 81,331 Sub-total for reportable segments 66,743 48,413 171,992 136,017 All Other(1) 528 2,606 2,057 5,818 **Total** **$** **67,271** **$** **51,019** **$** **174,049** **$** **141,835** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _All Other includes the results from the Company’s Streaming and Consumer Technology business, as well as other ancillary activities._ **IMAX CORPORATION ****NON-GAAP FINANCIAL MEASURES** In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, and Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under U.S.GAAP. A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable U.S.GAAP measures because they reflect the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) employee retention credits, and as well as the related tax impact of these adjustments. The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results. EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Total Adjusted EBITDA is defined as EBITDA excluding: (i) share-based and other non-cash compensation expense; (ii) unrealized investment losses or gains; (iii) restructuring and other charges; and i(v) write-downs, including asset impairments and credit loss reversal. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) write-downs, net of recoveries, including asset impairments and credit loss expense or reversal. A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable U.S.GAAP measure because it reflects the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests. In this release, the Company also presents free cash flow, which is not recognized under U.S.GAAP, as a supplemental measure of the Company’s liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company’s investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the cash flow available to reduce debt, add to cash balances, and fund other financing activities. Free cash flow does not represent residual cash flow available for discretionary expenditures. A reconciliation of cash provided by operating activities to free cash flow is presented below. **_Adjusted EBITDA per Credit Facility_** **Three Months Ended _(Unaudited)_** _(In thousands of U.S.Dollars)_ **September 30, 2025** **September 30, 2024** **Revenues** **$** **106,654** **$** **91,452** Reported net income $ 22,616 $ 15,343 Add (subtract): Income tax expense 5,205 2,376 Interest expense, net of interest income 766 1,123 Depreciation and amortization, including film asset amortization 15,611 14,900 Amortization of deferred financing costs(1) 508 493 EBITDA $ 44,706 $ 34,235 Share-based and other non-cash compensation 6,284 5,508 Unrealized investment (gains) losses (34 ) (32 ) Write-downs, including asset impairments and credit loss reversal 853 (1,025 ) **Total Adjusted EBITDA** **$** **51,809** **$** **38,686** Less: Non-controlling interest (3,850 ) (3,116 ) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 47,959 $ 35,570 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1_ _)_ _The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations._ **_Adjusted EBITDA per Credit Facility_** **Nine Months Ended _(Unaudited)_** _(In thousands of U.S.Dollars)_ **September 30, 2025** **September 30, 2024** **Revenues** **$** **285,005** **$** **259,536** Reported net income 43,001 $ 25,836 Add (subtract): Income tax expense 13,688 3,538 Interest expense, net of interest income 1,857 3,271 Depreciation and amortization, including film asset amortization 46,415 48,902 Amortization of deferred financing costs(1) 1,492 1,477 EBITDA $ 106,453 $ 83,024 Share-based and other non-cash compensation 19,050 17,261 Unrealized investment (gains) losses (99 ) (94 ) Restructuring and other charges 843 — Write-downs, including asset impairments and credit loss reversal 1,590 1,547 **Total Adjusted EBITDA** **$** **127,837** **$** **101,738** Less: Non-controlling interest (15,148 ) (11,201 ) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 112,689 $ 90,537 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations._ **Twelve Months Ended _(Unaudited)_** _(In thousands of U.S.Dollars)_ **September 30, 2025(1)** **September 30, 2024(1)** **Revenues** **$** **377,677** **$** **345,554** Reported net income $ 49,867 $ 29,147 Add (subtract): Income tax expense 15,146 1,688 Interest expense, net of interest income 2,522 3,907 Depreciation and amortization, including film asset amortization 63,021 62,447 Amortization of deferred financing costs(2) 1,984 1,970 EBITDA $ 132,540 $ 99,159 Share-based and other non-cash compensation 24,998 23,661 Unrealized investment gains (132 ) (123 ) Transaction-related expenses — 327 Restructuring and other charges 4,592 1,593 Write-downs, including asset impairments and credit loss reversal 3,042 2,359 **Total Adjusted EBITDA** **$** **165,040** **$** **126,976** Less: Non-controlling interest $ (18,138 ) $ (13,422 ) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 146,902 $ 113,554 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis._ _(2)_ _The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations._ **_Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share_** **Three Months Ended September 30,** **_(Unaudited)_** **2025** **2024** _(In thousands of U.S.Dollars, except per share amounts)_ **Net Income** **Per Diluted** **Share** **Net Income** **Per Diluted** **Share** Net income attributable to common shareholders $ 20,657 $ 0.37 $ 13,896 $ 0.26 Adjustments(1): Share-based compensation 6,194 0.11 5,332 0.10 Unrealized investment gains (34 ) — (32 ) — Employee retention credits (144 ) — — — Tax impact on items listed above (433 ) (0.01 ) (341 ) (0.01 ) Adjusted net income(1) $ 26,240 $ 0.47 $ 18,855 $ 0.35 Weighted average shares outstanding (in thousands): Basic 53,788 52,682 Diluted 55,565 54,089 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _Reflects amounts attributable to common shareholders._ **Nine Months Ended September 30,** **_(Unaudited)_** **2025** **2024** _(In thousands of U.S.Dollars, except per share amounts)_ **Net Income** **Per Diluted** **Share** **Net Income** **Per Diluted** **Share** Net income attributable to common shareholders $ 34,239 $ 0.62 $ 20,753 $ 0.39 Adjustments(1): Share-based compensation 18,534 0.34 16,686 0.30 Unrealized investment gains (99 ) — (94 ) — Restructuring and other charges 843 0.01 — — Employee retention credits (3,971 ) (0.07 ) — — Tax impact on items listed above (1,521 ) (0.03 ) (803 ) (0.01 ) Adjusted net income(1) $ 48,025 $ 0.87 $ 36,542 $ 0.68 Weighted average shares outstanding (in thousands): Basic 53,561 52,605 Diluted 55,242 53,628 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _Reflects amounts attributable to common shareholders._ **_Free Cash Flow_** **Nine Months Ended** **September 30,** _(In thousands of U.S.Dollars)_ **2025** **2024** Net cash provided by operating activities $ 97,694 $ 59,352 Purchase of property, plant and equipment (6,750 ) (3,816 ) Acquisition of other intangible assets (3,915 ) (4,802 ) Free cash flow before growth CAPEX(1) 87,029 50,734 Investment in equipment for joint revenue sharing arrangements (24,114 ) (21,728 ) Free cash flow $ 62,915 $ 29,006 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ _(1)_ _Growth CAPEX is defined as capital expenditures associated with investments in equipment for joint revenue sharing arrangements._ ![](https://cts.businesswire.com/ct/CT?id=bwnews&sty=20251023023957r1&sid=acqr8&distro=nx&lang=en) View source version on [businesswire.com](http://businesswire.com): [https://www.businesswire.com/news/home/20251023023957/en/](https://www.businesswire.com/news/home/20251023023957/en/) **_Investors:_** IMAX Corporation, New York Jennifer Horsley 212-821-0154 [jhorsley@IMAX.com](mailto:jhorsley@IMAX.com) **_Media:_** IMAX Corporation, New York Mark Jafar 212-821-0102 [mjafar@imax.com](mailto:mjafar@imax.com) Source: IMAX Corporation