IMAX CORP
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
IMAX$47.67-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001628280-26-028960
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001628280-26-049300
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 158 previous paragraphs and 194 current paragraphs.
98 unchanged; 49 reworded; 34 added; 11 removed; 0 previous and 13 current paragraphs rearranged.
Tables are not compared: 18 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
In the second quarter of 2026, box office generated by IMAX films totaled $284.8 million, a $3.8 million, or 1% increase versus the prior year comparative period of $281.1 million. In the second quarter of 2026, IMAX box office was generated by the exhibition of 35 films (32 new films and three re-releases), including the following Hollywood titles: Michael($69 million), The Mandalorian & Grogu($42 million), and The Super Mario Galaxy Movie($39 million). Furthermore, in the second quarter of 2026, local language films exhibited across the Company’s global network generated $18.7 million in box office, representing 7% of its global box office including the Japanese local language film, Detective Conan: Fallen Angel of the Highway($5 million).
Current report
In the second quarter of 2025, IMAX box office was generated by the exhibition of 22 films and other content (21 new films and 1 re-release), including the following Hollywood titles, Mission: Impossible - The Final Reckoning($75 million), Sinners($40 million), F1 The Movie($32 million) and Thunderbolts($31 million). Furthermore, in the second quarter of 2025, local language films exhibited across the Company’s global network generated $19.8 million in box office, representing 7% of its global box office.
Current report
In the three months ended June 30, 2026, IMAX GBO from JRSAs decreased $5.1 million compared to the prior year period, from $125.1 million to $120.0 million. While IMAX GBO from JRSAs declined, rental revenues increased by $1.2 million to $19.9 million from $18.7 million in the prior year comparative period, which reflects lower box office performance fully offset by higher average rental rates resulting from the geographic box office mix coupled with additional rent specifically earned from locations in which the Company has invested in lease incentives.
Current report
For the three months ended June 30, 2026, gross margin percent was 60% compared to 54% in the prior period, which primarily reflects the impact of higher variable consideration estimates, amendments, renewals and other adjustments as described above.
Current report
For the three months ended June 30, 2026, All Other revenue and gross margin increased by $1.3 million and $1.0 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business expansion of offerings to Goer Dynamics Group Co., Ltd. (“Goer Dynamics”) under an automotive consumer device partnership, following the re-positioning and relaunch in late 2025 under the brand of IMAX Enhanced, and increased sales of the Company’s merchandise.
Current report
For the second quarter of 2026, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions, and a shift in timing of annual corporate events and other expenses. Additionally, influencing the prior period, were $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.
Current report
Credit Loss Expense (Reversal), Net
Current report
For the three months ended June 30, 2026 and 2025, interest income was $0.7 million and $1.1 million, respectively. Interest income primarily comprises interest earned on bank deposits.
Current report
Management evaluates the realizability of deferred tax assets on a quarterly basis by considering all available positive and negative evidence, including recent operating results, forecasts of future taxable income, and other relevant factors specific to our industry such as the success of new film releases. Based on the Company’s recent operating results in Canada and its expectation of continued profitability, management believes there is a reasonable possibility that sufficient positive evidence may become available within the next twelve months to support the release of some or all of the valuation allowance recorded against its Canadian deferred tax assets. However, as of June 30, 2026, management has concluded that the available positive evidence is not yet sufficient to overcome the remaining negative evidence and support realization of those deferred tax assets. Any such release would result in a material income tax benefit in the period the conclusion is reached. At December 31, 2025, the amount of the Canadian valuation allowance was $55.5 million. The timing and amount of a valuation allowance release will depend on the Company’s ability to generate sufficient taxable income in Canada, macroeconomic conditions, and other factors affecting management’s assessment.
Current report
As disclosed in Note 2 — Summary of Significant Accounting Policies of the 2025 Form 10-K, the Company is subject to ongoing tax audits. Subsequent to June 30, 2026, the Company received a proposal letter from the Canada Revenue Agency related to an examination of international matters in prior taxation years. Any potential reassessment encompasses an ultimate resolution involving multiple tax jurisdictions, which may result in offsetting tax differences from what was originally recognized in its financial statements. The Company continues to believe that it has adequately accounted for all uncertain tax positions, including this pending notice of reassessment.
Current report
Restructuring Charges and Other Impairments
Current report
For the three months ended June 30, 2026, the Company recorded $2.3 million (2025 — $0.8 million) in Restructuring charges and other impairments.
Current report
During the quarter, the Company recognized an impairment charge of $2.0 million (2025 — $nil) on an individual documentary film asset following a reassessment of estimated future revenues. The revised estimates reflect updates to estimated market performance and future monetization of the title. In addition, the Company incurred other termination and restructuring charges of $0.3 million (2025 — $0.8 million). These charges are associated with strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure. Specifically, the Company incurred costs in connection with the continued implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles.
Current report
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report
Revenues and Gross Margin
Current report
For the six months ended June 30, 2026, the Company’s revenues and gross margin were $184.2 million and $108.7 million, respectively. In comparison to the prior year second quarter, the Company’s revenues and gross margin increased by $5.9 million, or 3%, and $1.9 million, or 2%, respectively, principally due to higher revenues recognized for systems installed under sales and sales-type lease arrangements.
Current report
For the six months ended June 30, 2026, Content Solutions segment revenues and gross margin decreased by $2.2 million, or 3%, and by $5.8 million, or 13%, respectively, when compared to the same period in 2025.
Current report
For the six months ended June 30, 2026, Technology Products and Services segment revenue and gross margin increased by $6.9 million, or 7%, and $6.6 million, or 11%, respectively, when compared to the same period in the prior year. The increase in revenue was primarily driven by a $5.0 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements, coupled with higher revenues for variable consideration recognized from sales arrangements installed in the period.
Current report
In the six months ended June 30, 2026, GBO from JRSAs decreased $36.9 million compared to the prior year, from $265.2 million to $228.3 million. Accordingly, rental revenues of $36.5 million, decreased $1.4 million from $37.8 million in the prior year comparative period, were driven by the lower IMAX box office offset mostly higher average rental rates resulting from the geographic box office mix coupled with additional rent specifically earned from locations in which the Company has invested in lease incentives.
Current report
Selling, General and Administrative Expenses
Current report
For the six months ended June 30, 2026, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions and timing. Additionally, influencing the prior period, were $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.
Current report
Research and Development
Current report
Credit Loss Expense (Reversal), Net
Current report
For the six months ended June 30, 2026, the Company recorded a credit loss expense of $1.0 million, as compared to a $0.3 million reversal in the same period of the prior year. The year over year change was primarily due to higher reserves established for specific exhibitor customers in China resulting from a deterioration in customer credit quality.
Current report
Interest Expense and Interest Income
Current report
For the six months ended June 30, 2026, interest expense was $3.9 million, representing an increase of $0.1 million, or 3%, as compared to $3.7 million during the same period of the prior year primarily due to a higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $9.9 million paid for lease incentives provided to exhibitor customers, in the current period offset by lower average interest rates. The effective interest rate for the six months ended June 30, 2026 was 5.16% (2025 — 6.17%). Additionally, as a result of certain holder of the remaining 2026 Convertible Notes electing to convert, the Company recorded a loss on extinguishment of debt of $0.1 million during the period.
Current report
For the six months ended June 30, 2026 and 2025, interest income was $1.1 million and $1.7 million, respectively. Interest income primarily comprises interest earned on bank deposits.
Current report
Income Taxes
Current report
Management evaluates the realizability of deferred tax assets on a quarterly basis by considering all available positive and negative evidence, including recent operating results, forecasts of future taxable income, and other relevant factors specific to our industry such as the success of new film releases. Based on the Company’s recent operating results in Canada and its expectation of continued profitability, management believes there is a reasonable possibility that sufficient positive evidence may become available within the next twelve months to support the release of some or all of the valuation allowance recorded against its Canadian deferred tax assets. However, as of June 30, 2026, management has concluded that the available positive evidence is not yet sufficient to overcome the remaining negative evidence and support realization of those deferred tax assets. Any such release would result in a material income tax benefit in the period the conclusion is reached. At December 31, 2025, the amount of the Canadian valuation allowance was $55.5 million. The timing and amount of a valuation allowance release will depend on the Company’s ability to generate sufficient taxable income in Canada, macroeconomic conditions, and other factors affecting management’s assessment.
Current report
As disclosed in Note 2 — Summary of Significant Accounting Policies of the 2025 Form 10-K, the Company is subject to ongoing tax audits. Subsequent to June 30, 2026, the Company received a proposal letter from the Canada Revenue Agency related to an examination of international matters in prior taxation years. Any potential reassessment encompasses an ultimate resolution involving multiple tax jurisdictions, which may result in offsetting tax differences from what was originally recognized in its financial statements. The Company continues to believe that it has adequately accounted for all uncertain tax positions, including this pending notice of reassessment.
Current report
Non-Controlling Interests
Current report
Restructuring Charges and Other Impairments
Current report
For the six months ended June 30, 2026, the Company recorded $2.3 million (2025 — $0.8 million) in Restructuring charges and other impairments.
Current report
Specifically, the Company recognized an impairment charge of $2.0 million (2025 — $nil) on an individual documentary film asset following a reassessment of estimated future revenues. The revised estimates reflect updates to estimated market performance and future monetization of the title. In addition, the Company incurred other termination and restructuring charges of $0.3 million (2025 — $0.8 million). These charges are associated with strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organizational structure. Specifically, the Company incurred costs in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles.
Removed paragraphs (11)
Previous report
Recent Developments
Previous report
As announced on March 30, 2026, Richard Gelfond, the Company’s Chief Executive Officer, is on a temporary medical leave of absence. On April 16, 2026, the Company appointed Robert D. Lister, its Chief Legal Officer and Senior Executive Vice President, to serve as the Company’s interim principal executive officer (“PEO”) in addition to his current duties until May 1, 2026, following which Mr. Gelfond will resume the role of PEO. Mr. Gelfond has been gradually re-engaging in the Company’s business and is involved in all strategic decisions. Until his leave is over, the Company’s management team will continue with its day-to-day responsibilities in coordination with Mr. Gelfond. (Refer to “Risk Factors—The loss of one or more of the Company’s key personnel, or its failure to attract and retain its employee population, could adversely affect its business.” in Part I, Item 1A. in the 2025 Form 10-K.)
Previous report
Content Solutions
Previous report
Technology Products and Services
Previous report
All Other
Previous report
Content Solutions
Previous report
Technology Products and Services
Previous report
For the three months ended March 31, 2026, Technology Products and Services segment revenue and gross margin decreased by $2.3 million, or 4%, and $2.2 million, or 8%, respectively, when compared to the same period in the prior year. The lower level of revenue was primarily driven by a lower level of rental revenues, which are box office dependent. Rental revenues of $16.6 million, a decrease of $2.6 million from $19.1 million in the prior year comparative period, were driven by a $31.8 million decrease in GBO from JRSAs in the three months ended March 31, 2026 versus the prior year. Specifically, in the first quarter of 2026 an increase of $5.3 million in rental revenues from domestic and international markets (excluding Greater China) was more than offset by a $7.9 million revenue decline in Greater China. Also contributing to the decrease in the segment revenue was the lower number of systems recognized under sales and sales-type lease arrangements, per the table above.
Previous report
All Other
Previous report
Selling, General and Administrative Expenses decreased period over period, reflecting management’s continued focus on operational efficiencies, including the impact of prior workforce reductions, timing and other cost discipline initiatives.
Previous report
Credit Loss Reversal, Net
Reworded paragraphs (49)
Previous wording
Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, “IMAX” or the “Company”) for the three months ended March 31, 2026 and 2025. This MD&A should be read in conjunction with the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company’s audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in the Company’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”).
Current wording
Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, “IMAX” or the “Company”) for the three and six months ended June 30, 2026 and 2025. This MD&A should be read in conjunction with the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company’s audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in the Company’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”).
Previous wording
As of March 31, 2026, the Company indirectly owned 71.57% of the outstanding equity interest in IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. For the three months ended March 31, 2026, net income attributable to IMAX China was $6.4 million, of which $4.6 million was attributable to the shareholders of the Company (2025 — $20.4 million and $14.6 million, respectively).
Current wording
As of June 30, 2026, the Company indirectly owned 71.57% of the outstanding equity interest in IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. For the six months ended June 30, 2026, net income attributable to IMAX China was $8.1 million, of which $5.8 million was attributable to the shareholders of the Company (2025 — $23.7 million and $17.0 million, respectively).
Previous wording
Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws. Words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “improve,” “likely,” “may,” “plan,” “potential,” “project,” “projection,” “prospect,” “remain,” “runway,” “scheduled,” “seek,” “strategy,” “subject to,” “target,” “upcoming,” “will,” or the negative thereof, and similar expressions identify forward-looking statement and information. These forward-looking statements and information include, but are not limited to, statements regarding the Company’s business and technology strategies and measures to implement such strategies, including with respect to its brand extensions and re-positionings and new business initiatives; the Company’s 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, networks, operations and technology; future cash flow and revenue realization; capital allocation, including the amount and nature of future capital expenditures and the sufficiency of capital and liquidity to fund the Company’s anticipated operating needs; the Company’s capital structure, including the incurrence and repayment of debt and the impact of its restrictive debt covenants on operating and financial flexibility; anticipated contributions to pension and postretirement benefit plans; the Company’s technological capabilities and the differentiation thereof, including with respect to artificial intelligence (“AI”); the Company’s ability to enhance its brand equity and brand awareness and the benefits thereof; industry prospects and developments and shifts in consumer behavior; the Company’s upcoming film slate and content pipeline, including the timing and performance thereof; and plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results.
Current wording
Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws. Words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “if,” “improvement,” “likely,” “may,” “plan,” “possibility,” “potential,” “project,” “projection,” “prospect,” “remain,” “runway,” “scheduled,” “seek,” “strategy,” “subject to,” “upcoming,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements and information. These forward-looking statements and information include, but are not limited to, statements regarding the Company’s business and technology strategies and measures to implement such strategies, including with respect to its brand extensions and re-positionings and new business initiatives; the Company’s 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, networks, operations and technology; future cash flow and revenue realization; capital allocation, including the amount and nature of future capital expenditures and the sufficiency of capital and liquidity to fund the Company’s anticipated operating needs; the Company’s capital structure, including the incurrence and repayment of debt and the impact of its restrictive debt covenants on operating and financial flexibility; anticipated contributions to pension and postretirement benefit plans; the Company’s technological capabilities and the differentiation thereof, including with respect to artificial intelligence (“AI”); the Company’s ability to enhance its brand equity and brand awareness and the benefits thereof; industry prospects and developments and shifts in consumer behavior; the Company’s upcoming film slate and content pipeline, including the timing and performance thereof; and plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results.
Previous wording
IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of March 31, 2026, there were 1,865 IMAX Systems operating in locations in 91 countries and territories, including 1,798 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network. This compares to 1,810 IMAX Systems operating in locations in 89 countries and territories as of March 31, 2025, including 1,738 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network. Refer to the table under “IMAX Network and Backlog” for additional information on the composition of the IMAX network.
Current wording
IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of June 30, 2026, there were 1,876 IMAX Systems operating in locations in 91 countries and territories, including 1,809 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network. This compares to 1,821 IMAX Systems operating in locations in 89 countries and territories as of June 30, 2025, including 1,750 commercial multiplexes, 11 commercial destinations, and 60 institutional locations in the Company’s global network. (Refer to the table under “IMAX Network and Backlog” for additional information on the composition of the IMAX network.)
Previous wording
The Company believes that the benefits related to the enhanced and differentiated image quality and film aspect ratio enable audiences in IMAX locations to feel as if they are a part of the on-screen action, creating a more intense, immersive, and awe-inspiring experience than a conventional cinematic format. For additional discussion, see section titled “IMAX Film Remastering and Distribution” below.
Current wording
The Company believes that the benefits related to the enhanced and differentiated image quality and film aspect ratio enable audiences in IMAX locations to feel as if they are a part of the on-screen action, creating a more intense, immersive, and awe-inspiring experience than a conventional cinematic format. For additional discussion, see section titled “Sources of Revenue—IMAX Film Remastering and Distribution” below.
Previous wording
The Company achieved global box office of$260 million in thefirst quarter of 2026. The Company’s first quarter global box office was derived from 34 pieces of content distributed across its global network. The first quarter was highlighted by the performance of the carry-over of Avatar: Fire and Ashthat drove record January global box office and the March release of the Filmed For IMAX®title Project Hail Mary, in which IMAX captured 20% of the opening weekend global box office, despite IMAX representing less than 1% of screens worldwide. The Company continues to expand its local language strategy with 17 releases across 9 countries, including a first in Taiwan, with total first quarter local language box office of $62 million (or 24% of global box office), led by Chinese film, Pegasus 3. Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for The IMAX Experience continues to strengthen among theatergoers. During the first quarter of 2026, the Company’s trailing twelve month domestic box office market share was 5.4% and global market share was 3.8%. See “Results of Operations” below for a discussion of the Company’s first quarter 2026 results as compared to the prior year period.
Current wording
The Company achieved global box office of$544.5 million in thefirst half of 2026. The Company’sfirst half global box office was derived from 63 new pieces of content distributed across its global network. Thefirst half was highlighted by the performance of the Filmed For IMAX®title Project Hail Mary, in which IMAX captured 20% of the opening weekend global box office, despite IMAX representing less than 1% of screens worldwide. Global box office in the first half of 2026 also included carry-over of Avatar: Fire and Ashand the break-out biopic music centered film title Michael. The Company continues to expand its local language strategy with 34 releases across 11 countries and territories, including first time releases in Brazil and Taiwan, China. The total first half local language box office was $81 million (or 15% of global box office), led by the Chinese film, Pegasus 3. Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for The IMAX Experience continues to strengthen among theatergoers. During the first half of 2026, the Company’s trailing twelve month domestic box office market share was 5.2% and global market share was 3.7%. See “Results of Operations” below for a discussion of the Company’s 2026 three and six months results as compared to the prior year periods.
Previous wording
Filmed For IMAX is IMAX’s filmmaker partnership program. Filmmakers who participate in the program leverage IMAX technology throughout the production process to deliver a movie that is meant to be seen in an IMAX location. From pre-production through to release, the Company works closely with filmmakers to maximize The IMAX Experience for audiences. Filmed For IMAX movies are shot using either an IMAX certified digital camera or an IMAX film camera, with the IMAX Post-Production team working closely with the filmmaker from camera testing before the shoot begins, to on-set support, to test screenings, and post-production. Most Filmed For IMAX movies leverage IMAX’s exclusive expanded aspect ratio for select sequences and, occasionally, the entire film, and benefit from unique marketing support. The global box office metrics have demonstrated audiences respond extremely favorably to Filmed For IMAX titles, resulting in a higher market share for IMAX. In the first quarter of 2026, Filmed For IMAX titles on average indexed over 14% higher than titles with no IMAX DNA.
Current wording
Filmed For IMAX is IMAX’s filmmaker partnership program. Filmmakers who participate in the program leverage IMAX technology throughout the production process to deliver a movie that is meant to be seen in an IMAX location. From pre-production through to release, the Company works closely with filmmakers to maximize The IMAX Experience for audiences. Filmed For IMAX movies are shot using either an IMAX certified digital camera or an IMAX film camera, with the IMAX Post-Production team working closely with the filmmaker from camera testing before the shoot begins, to on-set support, to test screenings, and post-production. Most Filmed For IMAX movies leverage IMAX’s exclusive expanded aspect ratio for select sequences and, occasionally, the entire film, and benefit from unique marketing support. The global box office metrics have demonstrated audiences respond extremely favorably to Filmed For IMAX titles, resulting in a higher market share for IMAX. In the first half of 2026, Filmed For IMAX titles on average indexed approximately 10% higher than titles with no IMAX DNA.
Previous wording
Management believes that growth in global box office represents an important growth opportunity for the Company. The Company’s strategy to capitalize on this opportunity includes expanding the IMAX network into underpenetrated international markets and growing the number of local language films released, particularly in Japan, India, South Korea, and France. As the popularity of local language films has continued to increase, the Company has extended its content strategy to distribute local language content beyond native markets. For the three months ended March 31, 2026, local language films exhibited across the Company’s global network generated $62 million in box office, representing 24% of the Company’s global box office.
Current wording
Management believes that growth in global box office represents an important growth opportunity for the Company. The Company’s strategy to capitalize on this opportunity includes expanding the IMAX network into underpenetrated international markets and growing the number of local language films released, particularly in Japan, France, India, and South Korea. As the popularity of local language films has continued to increase, the Company has extended its content strategy to distribute local language content beyond native markets. For the six months ended June 30, 2026, local language films exhibited across the Company’s global network generated $81 million in box office, representing 15% of the Company’s global box office.
Previous wording
The following table provides the number of new films and other content released to the Company’s global network during the three months ended March 31, 2026 and 2025:
Current wording
The following table provides the number of new films and other content released to the Company’s global network during the three and six months ended June 30, 2026 and 2025:
Previous wording
In addition to the 31 IMAX new films and other content experiences released on the Company’s global network during the three months ended March 31, 2026, the Company has announced the following 34 new films and other content experiences for release in the remainder of 2026:
Current wording
In addition to the 63 IMAX new films and other content experiences released on the Company’s global network during the six months ended June 30, 2026, the Company has announced the following 32 new films and other content experiences for release in the remainder of 2026:
Previous wording
In early 2026, The Lost Wolves of Yellowstone, in collaboration with Grizzly Creek Films LLC, and French language documentary Athos, produced by Federation Studio France, were released. In 2026, the Company plans to release the documentary Portrait of an Artistin collaboration with The National Basketball Association (“NBA”), Unanimous Media, and Religion of Sports, offering an intimate glimpse into the life of NBA superstar Stephen Curry. Upcoming 2026 documentaries which are currently in production include Stormbound, produced by Academy Award-winning producer, Adam McKay; and Frontier, produced in collaboration with Nocturnal Entertainment Productions, LLC, Atlas Entertainment LL, and Believe Entertainment Group, LLC. The Elephant Odyssey, a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, is expected to be released in 2027.
Current wording
In early 2026, The Lost Wolves of Yellowstone, in collaboration with Grizzly Creek Films LLC, and French language documentary Athos, produced by Federation Studio France, were released. In April 2026, the Company released the restored for IMAX documentary Cave of Forgotten Dreams, in collaboration with Independent Film Company. In 2026, the Company plans to release the documentary Portrait of an Artistin collaboration with The National Basketball Association (“NBA”), Unanimous Media, and Religion of Sports, offering an intimate glimpse into the life of NBA superstar Stephen Curry. Upcoming 2026 documentaries which are currently in production include Stormbound, produced by Academy Award-winning producer, Adam McKay; and Frontier, produced in collaboration with Nocturnal Entertainment Productions, LLC, Atlas Entertainment LLC, and Believe Entertainment Group, LLC. The Elephant Odyssey, a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, is expected to be released in 2027.
Previous wording
In the three months ended March 31, 2026, the Company partnered with Neon Rated and Universal Pictures on the release of EPiC: Elvis Presley in Concert. The Company also partnered with Bleecker Street and Universal Pictures for the release of Stray Kids: The dominATE Experience, and with Trafalgar for release of Twenty One Pilots: More Than We Ever Imagined. In addition, the Company partnered with Mercury Studios for a two-night-only screening of Eric Church: Evangeline vs. The Machine Comes Alive, and with Sony Pictures for the two-night-only screening of TOMMY in IMAX (50th Anniversary). The Company also partnered with A24 for a limited release of Marty Supreme across approximately 150 IMAX locations in the United States, Australia, and New Zealand. In March 2026, the Company partnered with MGM Studios for an exclusive Q&A livestream in advance of the screening of Project Hail Mary across a limited number connected IMAX locations in North America.
Current wording
In the six months ended June 30, 2026, the Company partnered with various studios and distributors on a number of alternative content releases and exclusive events. These included the releases of EPiC: Elvis Presley in Concert(Neon Rated and Universal Pictures), Stray Kids: The dominATE Experience(Bleecker Street and Universal Pictures), Twenty One Pilots: More Than We Ever Imagined(Trafalgar Releasing), Eric Church: Evangeline vs. The Machine Comes Alive(Mercury Studios), TOMMY in IMAX (50th Anniversary)(Sony Pictures), and limited releases of Marty Supreme(A24) and Memento(China Film Group). The Company partnered with MGM Studios in March 2026 and Universal Pictures in June 2026 to present exclusive Q&A livestreams in advance of screenings of Project Hail Mary and Disclosure Day, respectively, across select connected IMAX locations in North America. The Company partnered with Apple TV to livestream select races from the 2026 FIA Formula One World Championship across North America, including the Miami Grand Prix in May 2026 and the Monaco Grand Prix in June 2026.
Previous wording
JRSAs have been an important factor in the expansion of the Company’s commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. As of March 31, 2026, the Company had 881 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 255 IMAX systems under JRSAs as of March 31, 2026, including 149 new locations and 106 upgrades to existing locations.
Current wording
JRSAs have been an important factor in the expansion of the Company’s commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. As of June 30, 2026, the Company had 881 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 187 IMAX systems under JRSAs as of June 30, 2026, including 88 new locations and 99 upgrades to existing locations.
Previous wording
Device Certification & Calibration: Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks. It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained faithfully and experienced as intended on consumer devices. As of March 31, 2026, IMAX Enhanced certified devices in-market are with partners including Sony Electronics, Hisense, TCL, LG, and Philips.
Current wording
Device Certification & Calibration: Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks. It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained faithfully and experienced as intended on consumer devices, including but not limited to TVs, soundbars, automotive, and other device segments. As of June 30, 2026, IMAX Enhanced certified devices in-market are with partners including Goer Dynamics, Sony Electronics, Hisense, TCL, LG, and Philips.
Previous wording
All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and merchandising revenue.
Current wording
All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and merchandising revenue including IMAX branded merchandise and cooperative merchandising with studios.
Previous wording
IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,798 IMAX Systems operating as of March 31, 2026, representing a market penetration of only 40%. The Company believes that the majority of its future growth will come from international markets. As of March 31, 2026, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada). Revenues and gross box office (“GBO”) derived from international markets continue to exceed revenues and GBO from the United States and Canada. Risks associated with the Company’s international business are outlined in “Risk Factors – The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales and future growth prospects” in Part II, Item 1A of this Form 10-Q.
Current wording
IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,809 IMAX Systems operating as of June 30, 2026, representing a market penetration of only 41%. The Company believes that the majority of its future growth will come from international markets. As of June 30, 2026, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada). Revenues and gross box office (“GBO”) derived from international markets continue to exceed revenues and GBO from the United States and Canada. Risks associated with the Company’s international business are outlined in “Risk Factors – The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales and future growth prospects” in Part II, Item 1A of this Form 10-Q.
Previous wording
The following tables provide detailed information about IMAX System signings and installations for the three months ended March 31, 2026 and 2025:
Current wording
The following tables provide detailed information about IMAX System signings and installations for the three and six months ended June 30, 2026 and 2025:
Previous wording
The Company’s results for the first quarter reflect variability driven by the timing, mix and geographic distribution of global box office performance. The year-over-year decline in total global box office was primarily attributable to an unusually strong prior-year comparison in Greater China. Domestic and other international markets experienced strong box office growth, driven by the performance of Hollywood titles and Filmed For IMAX releases. The Company’s future results may continue to be affected by the timing and performance of major film releases, the mix of Hollywood and local language content, and the geographic concentration of box office revenues, as well as by variability in system installations and box office-driven revenues. In addition, broader macroeconomic conditions, including global economic uncertainty, supply chain disruptions, inflationary pressures and geopolitical tensions and conflicts, could adversely impact consumer demand and the Company’s ability to deliver and install IMAX systems, any of which could materially affect the Company’s financial condition and results of operations.
Current wording
The Company’s results for the first half of 2026 reflect variability driven by the timing, mix and geographic distribution of global box office performance. The year-over-year decline in total global box office was primarily attributable to an unusually strong prior-year comparison in Greater China. Domestic and other international markets experienced strong box office growth, driven by the performance of Hollywood titles and Filmed For IMAX releases. The Company’s future results may continue to be affected by the timing and performance of major film releases, the mix of Hollywood and local language content, and the geographic concentration of box office revenues, as well as by variability in system installations and box office-driven revenues. In addition, broader macroeconomic conditions, including global economic uncertainty, supply chain disruptions, inflationary pressures and geopolitical tensions and conflicts, could adversely impact consumer demand and the Company’s ability to deliver and install IMAX systems, any of which could materially affect the Company’s financial condition and results of operations.
Previous wording
For the three months ended March 31, 2026, the Company’s revenues and gross margin were $81.4 million and $45.8 million, respectively. In comparison to the prior year first quarter, the Company’s revenues and gross margin decreased by $5.3 million, or 6%, and $7.4 million, or 14%, respectively, principally due to lower IMAX box office performance in Greater China, which more than offset the growth in the domestic and other international markets.
Current wording
For the three months ended June 30, 2026, the Company’s revenues and gross margin were $102.8 million and $62.9 million, respectively. In comparison to the prior year second quarter, the Company’s revenues and gross margin increased by $11.2 million, or 12%, and $9.3 million, or 17%, respectively, principally due to a higher number of IMAX system installations under sales type arrangements and stronger IMAX box office performance across rest of world markets of 24%.
Previous wording
For the three months ended March 31, 2026, Content Solutions segment revenues and gross margin decreased by $2.9 million, or 8%, and by $5.2 million, or 22%, respectively, when compared to the same period in 2025.
Current wording
For the three months ended June 30, 2026, Content Solutions segment revenues and gross margin increased by $0.7 million, or 2%, and decreased by $0.5 million, or 2%, respectively, when compared to the same period in 2025.
Previous wording
The decreases in revenue were partially offset by a $3.1 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements.
Current wording
For the three months ended June 30, 2026, Technology Products and Services segment revenue and gross margin increased by $9.2 million, or 16%, and $8.8 million, or 29%, respectively, when compared to the same period in 2025. The higher level of revenue was primarily driven by higher revenues from variable consideration recognized on IMAX systems installed under sales arrangements in the current period. The increases in revenue were also partially driven by a $1.9 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements.
Previous wording
For the three months ended March 31, 2026, the Company recorded a credit loss reversal of $0.5 million, as compared to $0.1 million recognized in the same period of the prior year.
Current wording
For the three months ended June 30, 2026, the Company recorded a credit loss expense of $1.5 million, as compared to a credit loss reversal of $0.2 million recognized in the prior year. The year over year change was primarily due to higher reserves established for specific exhibitor customers in China resulting from a deterioration in customer credit quality.
Previous wording
Overall, continued strong global box office performance has contributed to a notable improvement in collections. Strong theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects the continued consumer demand for premium cinematic experiences and effectiveness of IMAX's strategic initiatives to partner with filmmakers, studios, and exhibitors to deliver higher levels of box office.
Current wording
Overall, continued strong global box office performance has contributed to consistent collections. Strong theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects the continued consumer demand for premium cinematic experiences and effectiveness of IMAX's strategic initiatives to partner with filmmakers, studios, and exhibitors to deliver higher levels of box office.
Previous wording
For the three months ended March 31, 2026, interest expense was $1.9 million, representing an increase of $0.1 million, or 5%, as compared to $1.8 million during the same period of the prior year primarily due to higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $8.7 million paid for lease incentives provided to exhibitor customers, in the current period offset mostly by lower average interest rates. The effective interest rate for the three months ended March 31, 2026 was 5.19% (2025 — 6.18%). For each of the three months ended March 31, 2026 and 2025, interest income was $0.5 million.
Current wording
For the three months ended June 30, 2026, interest expense was $2.0 million, representing an increase of less than $0.1 million, or 2% when compared to interest expense of $1.9 million during the same period of the prior year primarily due to a higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $1.2 million paid for lease incentives provided to exhibitor customers, in the current period offset by lower average interest rates. The effective interest rate for the three months ended June 30, 2026 was 5.14% (2025 — 6.17%).
Previous wording
For the three months ended March 31, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $1.8 million, a decrease of $4.0 million, when compared to the same period in 2025, which reflects a $19.6 million total revenue decline primarily driven by the lower level of IMAX box office earned in Greater China.
Current wording
For the three months ended June 30, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $0.5 million, a decrease of $0.5 million, when compared to the same period in 2025, which was driven by the lower level of IMAX box office earned in Greater China.
Previous wording
The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders* and adjusted net income attributable to common shareholders per diluted share for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders(1) and adjusted net income attributable to common shareholders per diluted share for the six months ended June 30, 2026 and 2025:
Previous wording
In the three months ended March 31, 2026, box office generated by IMAX films totaled $259.6 million, a $38.5 million, or 13%, decrease versus the prior year comparative period of $298.2 million. This decrease was primarily driven by lower local language box office in the first quarter of 2026, due partially to the shift in 2026 local language blockbuster films from the Chinese New Year period to later in the year versus a record Chinese New Year in the first quarter of 2025 from the breakout performance of Ne Zha 2(the highest grossing local language film of all time). Domestic and international (excluding Greater China) global box office increased 75% and 60%, respectively, over the prior year comparative period as the performance of Hollywood content strengthened. During the three months ended March 31, 2026, IMAX box office was generated by the exhibition of 34 films and other content (31 new films, two re-releases, and one carry-over), including the following Hollywood titles: Avatar: Fire and Ash($77 million), Project Hail Mary($66 million), Scream 7($8 million), and Wuthering Heights($7 million). In addition, in the three months ended March 31, 2026, local language films exhibited across the Company’s global network generated $62 million in box office, representing 24% of its global box office, including the Chinese local language film, Pegasus 3($34 million) and Blades of the Guardians($7 million). In the three months ended March 31, 2025, IMAX box office revenue was generated by the exhibition of 34 films (33 new films and one re-release), with Chinese local language film Ne Zha 2 representing 54% of its global box office.
Current wording
In the six months ended June 30, 2026, box office generated by IMAX films totaled $544.5 million, a $34.8 million, or 6%, decrease versus the prior year comparative period of $579.2 million. This decrease was primarily driven by lower local language box office in the first half of 2026, due in part to the shift in 2026 local language blockbuster films out of the Chinese New Year period versus a record Chinese New Year in 2025 from the breakout performance of Ne Zha 2($167 million), the highest grossing local language film of all time. During the six months ended June 30, 2026, IMAX box office was generated by the exhibition of 69 films and other content (63 new films, 5 re-releases and one carry-over), including the following Hollywood titles: Project Hail Mary($96 million), Avatar: Fire and Ash($78 million), Michael($69 million), The Mandalorian & Grogu($42 million) and The Super Mario Galaxy Movie($39 million). In addition, in the six months ended June 30, 2026, local language films exhibited across the Company’s global network generated $81 million in box office, representing 15% of its global box office, including the Chinese local language film, Pegasus 3($34 million) and Blades of the Guardians($7 million). In the six months ended June 30, 2025, IMAX box office revenue was generated by the exhibition of 56 films (54 new films and 2 re-releases), including the following Hollywood titles, Mission: Impossible - The Final Reckoning ($75 million), Sinners($39 million), F1 The Movie($31 million) and Thunderbolts($31 million) and local language title Ne Zha 2 discussed above.
Previous wording
In the three months ended March 31, 2026, the Company released four movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including Mercy, The Bride!, Project Hail Mary, and the IMAX documentary Athos. Filmed For IMAX movies historically have performed disproportionately well at the box office, and for three of these films, IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.
Current wording
In the six months ended June 30, 2026, the Company released seven movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including Mercy, The Bride!, Project Hail Mary, Mortal Kombat II, The Mandalorian & Grogu, Supergirl, and the IMAX documentary Athos. Filmed For IMAX movies historically have performed disproportionately well at the box office, and for four of these films, IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.
Previous wording
In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content exhibited in the period. These costs can include production, post-production, distribution, and marketing, which are expensed as incurred. For the three months ended March 31, 2026, gross margin percent was 58% compared to 69% in the prior period. The Content Solutions margin decline was driven by a combination of factors including; lower box office performance in Greater China, with no significant breakout title, a lower mix of local language films which carries a higher margin, and an increased level of film marketing spend associated with upcoming large tentpole titles.
Current wording
In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content exhibited in the period. These costs can include production, post-production, distribution, and marketing, which are expensed as incurred. For the six months ended June 30, 2026, gross margin percent was 61% compared to 67% in the prior year. The Content Solutions margin decline was driven by a combination of factors including; lower box office performance in Greater China, with no significant breakout title, a lower mix of local language films which carries a higher margin, and an increased level of film marketing spend associated with a higher mix of Hollywood titles.
Previous wording
The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs, for which revenue is recognized over the lease term, during the three months ended March 31, 2026 and 2025:
Current wording
The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs, for which revenue is recognized over the lease term, during the six months ended June 30, 2026 and 2025:
Previous wording
In the three months ended March 31, 2026, no IMAX Systems were relocated from their original locations (2025 ― three IMAX Systems). When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.
Current wording
In the six months ended June 30, 2026, one IMAX System was relocated from its original location (2025 ― three IMAX Systems). When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.
Previous wording
For the three months ended March 31, 2026, gross margin percent was 56% compared to 57% in the same period in the prior year, which primarily reflects the lower level of rental revenues offset partially by the impact of amendments, renewals and other adjustments as described above, which did not have associated costs.
Current wording
For the six months ended June 30, 2026, gross margin percent was 58% compared to 56% in the same period in the prior year, which primarily reflects the impact of amendments, renewals and other adjustments as described above.
Previous wording
For the three months ended March 31, 2026, All Other revenue and gross margin decreased by $0.2 million, and less than $0.1 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business which was re-positioned and relaunched in late 2025 under the brand of IMAX Enhanced.
Current wording
For the six months ended June 30, 2026, All Other revenue and gross margin increased by $1.1 million, and $1.0 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business expansion of offerings across automotive consumer devices under the Goer Dynamics partnership, following the re-positioning and relaunch in late 2025 under the brand of IMAX Enhanced, and increased sales of the Company’s merchandise.
Previous wording
For the three months ended March 31, 2026, Research and Development expenses were $1.8 million, representing an increase of $0.5 million, or 37%, when compared to Research and Development expenses of $1.3 million during the same period in the prior year. The increase year-over-year was primarily driven by the capitalization of film camera costs in 2025 in accordance with the achievement of technological feasibility in 2024. The Company continues to expense its investment in other projects, including in the development of new product offerings and improvements to its existing IMAX System product suite.
Current wording
For the six months ended June 30, 2026, Research and Development expenses were $3.5 million, representing an increase of $0.6 million, or 21%, when compared to Research and Development expenses of $2.9 million during the same period in the prior year. The increase year-over-year was primarily driven by higher depreciation in the current period from the capitalization of film camera costs in a prior year coupled with increased investment in data and software related projects. The Company continues to expense its investment in other projects, including in the development of new product offerings and improvements to its existing IMAX System product suite.
Previous wording
For the three months ended March 31, 2026, the Company recorded an income tax expense of $2.4 million (2025 — $7.3 million). The Company’s effective tax rate of 28.5% for the three months ended March 31, 2026, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, and withholding taxes, offset by a tax benefit related to share-based compensation. The Company’s effective tax rate of 47.2% for the three months ended March 31, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.
Current wording
For the six months ended June 30, 2026, the Company recorded an income tax expense of $5.9 million (2025 — $8.5 million). The Company’s effective tax rate of 21.2% for the six months ended June 30, 2026 (2025 — 29.4%), reflects the geographic allocation of income earned in taxing jurisdictions, tax benefit from share-based compensation, tax rate differences in foreign jurisdictions, and reversals of tax reserves, partially offset by an increase in the valuation allowance and withholding taxes.
Previous wording
CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
Current wording
CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Previous wording
The discussion below summarizes our cash flows from operating, investing, and financing activities as reflected in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025.
Current wording
The discussion below summarizes our cash flows from operating, investing, and financing activities as reflected in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025.
Previous wording
Net cash provided by the Company’s operating activities decreased $2.9 million in the three months ended March 31, 2026, when compared to the same period in 2025, primarily driven by a $7.7 million increase in cash payments related to lease incentives provided to exhibitor customers and annual short term incentive compensation payouts. This higher level of cash outflow was partially offset by strong Accounts Receivable collections during the period. (Refer to Note 9 to Condensed Consolidated Financial Statements in Item 1. for more information on the Company’s change in other operating assets and liabilities.)
Current wording
Net cash provided by the Company’s operating activities increased $5.8 million in the six months ended June 30, 2026, when compared to the same period in 2025, primarily driven by an increase in the net income earned in the current period and a net increase in working capital driven by strong Accounts Receivable collections during the period, partially offset by a $7.7 million increase in cash outflows for lease incentives provided to exhibitor customers. (Refer to Note 9 to Condensed Consolidated Financial Statements in Item 1. for more information on the Company’s change in other operating assets and liabilities.)
Previous wording
Net cash used in investing activities decreased $7.7 million in the three months ended March 31, 2026, when compared to the same period in 2025. Cash used in the investment in equipment contributed to the Company’s JRSAs with exhibitor customers was higher in the first quarter of 2025 due in part to the Company shipping systems into the U.S. in advance of planned 2025 system installations as a proactive measure in response to new and potentially changing tariffs. (Refer to “Risk Factors—The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.” in Part I, Item 1A. in the 2025 Form 10-K.)
Current wording
Net cash used in investing activities decreased $9.0 million in the six months ended June 30, 2026, when compared to the same period in 2025. Cash used in the investment in equipment contributed to the Company’s JRSAs with exhibitor customers was higher in the first half of 2025 due in part to the Company shipping systems into the U.S. in advance of planned 2025 system installations as a proactive measure in response to new and potentially changing tariffs. (Refer to “Risk Factors—The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.” in Part I, Item 1A. in the 2025 Form 10-K.)
Previous wording
Net cash used in financing activities decreased $7.0 million in the three months ended March 31, 2026, when compared to the same period in 2025, mainly driven by higher taxes withheld and paid on employee stock awards vested due to the Company’s higher stock price relative to grant dates, and outperformance of PSUs vested during the period. This decrease was partially offset by cash received for stock options exercised during the period.
Current wording
Net cash used in financing activities increased $14.8 million in the six months ended June 30, 2026, when compared to the same period in 2025, mainly driven by repurchases of common shares and higher taxes withheld and paid on employee stock awards vested due to the Company’s higher stock price relative to grant dates. This decrease was partially offset by cash received for stock options exercised during the period.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
The following table presents the Company’s net income attributable to common shareholders and net income attributable to common shareholders per diluted share amounts, as well as adjusted net income attributable to common shareholders(1) and adjusted net income attributable to common shareholders per diluted share for the three months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
In the second quarter of 2026, the Company released three movies that were filmed with IMAX proprietary cameras (Filmed For IMAX): Mortal Kombat II, The Mandalorian & Groguand Supergirl. Filmed For IMAX movies historically have performed disproportionately well at the box office, and for Supergirl, IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.
Current report — wording carried from elsewhere
In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content exhibited in the period. These costs can include production, post-production, distribution, and marketing, which are expensed as incurred. For the three months ended June 30, 2026, gross margin percent was 63% compared to 66% in the prior year period. The decrease in gross margin reflects the mix of IMAX box office, amount of marketing spend and level of box office outperformance.
Current report — wording carried from elsewhere
The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs as revenue is recognized over the lease term, during the three months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
In the three months ended June 30, 2026, one IMAX System was relocated from its original location (2025 ― no IMAX Systems were relocated from their original locations). When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is typically lower than a new IMAX system. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, Research and Development expenses were $1.7 million, representing an increase of $0.2 million or 13%, when compared to expenses of $1.5 million during the same period in the prior year. The Company continues to expense its investment in other projects, including in the development of new product offerings, data and software projects and improvements to its existing IMAX System product suite.
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, the Company recorded an income tax expense of $3.5 million (2025 — $1.2 million). The Company’s effective tax rate of 18.1% for the three months ended June 30, 2026 (2025 — 8.9%), reflects the geographic allocation of income earned in taxing jurisdictions and a decrease in the valuation allowance and tax reserves, partially offset by withholding taxes.
Current report — wording carried from elsewhere
Net Income and Adjusted Net Income Attributable to Common Shareholders
Current report — wording carried from elsewhere
The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the six months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
The following table presents information about the Company’s Selling, General and Administrative Expenses for the six months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
Overall, continued strong global box office performance has contributed to consistent collections. Strong theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects the continued consumer demand for premium cinematic experiences and effectiveness of IMAX's strategic initiatives to partner with filmmakers, studios, and exhibitors to deliver higher levels of box office.
Current report — wording carried from elsewhere
The Company estimates credit losses based on both a historical provision rate and customer specific circumstances. Management’s judgments regarding expected credit losses are based on the facts available to management at the time that the Condensed Consolidated Financial Statements are prepared and involve estimates about the future. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect. (Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $2.4 million, a decrease of $4.5 million, when compared to the same period in 2025, which was driven by the lower level of IMAX box office earned in Greater China.