IMAX CORP

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 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”).

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 nine months ended September 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 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).

Current wording

As of September 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 nine months ended September 30, 2026, net income attributable to IMAX China was $19.6 million, of which $14.0 million was attributable to the shareholders of the Company (2025 — $30.5 million and $21.9 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,” “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.

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,” “intend,” “likely,” “may,” “plan,” “possibility,” “potential,” “project,” “projection,” “prospect,” “remain,” “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 repositioning and new business initiatives; the Company’s competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, 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; the outcome of legal proceedings and tax reassessments, the Company’s technological capabilities and the differentiation thereof; 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

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 the Company’s investments, operations and future expansion in foreign jurisdictions, including the impact of economic, political and regulatory policies and laws of the United States, Canada, and China, tariffs and other trade regulations, and economic and trade tensions, trade wars, and geopolitical conflicts; risks related to the Company’s growth and operations in China, including industry conditions affecting both the Company and its partners; the ability of the Company’s exhibitor customers to fulfill their contractual payment obligations; risks related to the Company’s ability to attract and retain its employee population or the loss of the Company’s key personnel; the performance of IMAX remastered films and other films released to the IMAX network; conditions, changes and developments in the commercial exhibition industry; the Company’s ability to enter into new IMAX theater system agreements and sales and lease agreements and the effects thereof ; fluctuations in operating results and cash flow; 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 ability of the Company to respond to change and advancements in technology, including with respect to AI products and AI-generated content; the potential impacts of consolidation among commercial exhibitors and studios; success of brand extensions and new business initiatives; conditions and competition in the in-home (including streaming) and out-of-home entertainment industries; the Company’s ability to identify and pursue new business opportunities (or lack thereof); cybersecurity and data privacy incidents; the Company’s ability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; effects of environmental laws and regulations, including with respect to climate change; weather conditions and natural disasters that may disrupt or harm the Company’s business; effects of the Company’s indebtedness on its cash flow and business activities and the Company’s ability to comply with its debt agreements; general economic, market or business conditions; sustained inflationary pressure; political, economic and social instability and the resulting disruptions to the Company’s operations or supply chain; the Company’s ability to convert system backlog into revenue and cas…

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Current wording

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 the Company’s investments, operations and future expansion in foreign jurisdictions, including the impact of economic, political and regulatory policies and laws of the United States, Canada, and China, tariffs and other trade regulations, and economic and trade tensions, trade wars, and geopolitical conflicts; risks related to the Company’s growth and operations in China, including industry conditions affecting both the Company and its partners; the ability of the Company’s exhibitor customers to fulfill their contractual payment obligations; risks related to the Company’s ability to attract and retain its employee population or the loss of the Company’s key personnel; the performance of IMAX remastered films and other films released to the IMAX network; conditions, changes and developments in the commercial exhibition industry; the Company’s ability to enter into new IMAX theater system agreements and sales and lease agreements and the effects thereof; fluctuations in operating results and cash flow; 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 ability of the Company to respond to change and advancements in technology, including with respect to AI products and AI-generated content; the potential impacts of consolidation among commercial exhibitors and studios; the success of brand extensions and new business initiatives; conditions and competition in the in-home (including streaming) and out-of-home entertainment industries; the Company’s ability to identify and pursue new business opportunities (or lack thereof); cybersecurity and data privacy incidents; the Company’s ability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; effects of environmental laws and regulations, including with respect to climate change; weather conditions and natural disasters that may disrupt or harm the Company’s business; effects of the Company’s indebtedness on its cash flow and business activities and the Company’s ability to comply with its debt agreements; general economic, market or business conditions; sustained inflationary pressure; political, economic and social instability and the resulting disruptions to the Company’s operations or supply chain; the Company’s ability to convert system backlog into revenue and …

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Previous 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.)

Current wording

IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of September 30, 2026, there were 1,887 IMAX Systems operating in locations in 91 countries and territories, including 1,820 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network. This compares to 1,829 IMAX Systems operating in locations in 89 countries and territories as of September 30, 2025, including 1,759 commercial multiplexes, 10 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

As a result of the engineering and scientific achievements that are a hallmark of The IMAX Experience®, the Company’s exhibitor customers typically charge a premium for films released in IMAX’s format versus films exhibited in their other auditoriums. The premium pricing, combined with the higher attendance levels associated with IMAX films, generates incremental box office receipts (“global box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network. IMAX has become a key premium distribution and marketing platform for Hollywood and local language films driven by IMAX’s leading global network footprint and scale, the incremental global box office generated by IMAX films and the growing demand by moviegoers for the differentiated quality of The IMAX Experience.

Current wording

(“global box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network. IMAX has become a key premium distribution and marketing platform for Hollywood and local language films driven by IMAX’s leading global network footprint and scale, the incremental global box office generated by IMAX films and the growing demand by moviegoers for the differentiated quality of The IMAX Experience.

Previous 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.

Current wording

See “Results of Operations” below for a discussion of the Company’s 2026 three and nine months results as compared to the corresponding prior year periods.

Previous wording

The Content Solutions segment earns revenue from IMAX Film Remastering, including the distribution of this content across the IMAX global network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiences, including music, gaming, and sports to commercial IMAX theaters, as well as the provision of film post-production services.

Current wording

The Content Solutions segment earns revenue from IMAX Film Remastering, including the distribution of this content across the IMAX global network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiences, including music, gaming, and sports to commercial IMAX theaters, as well as the provision of film post-production services. The Company earns merchandising revenue which includes IMAX branded merchandise and cooperative merchandising with studios.

Previous wording

Content Solutions segment results are influenced by the level of commercial success and global box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the timing of documentary downstream sales, the length of play across the IMAX network, the global box office share take rates under the Company’s Film Remastering and distribution arrangements, the level of marketing spend associated with the releases in the year, and fluctuations in the value of foreign currencies versus the U.S. Dollar.

Current wording

Content Solutions segment results are influenced by the level of commercial success and global box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the length of play across the IMAX network, and the global box office share take rates under the Company’s Film Remastering and distribution arrangements. Variations in the number, timing and performance of releases, including a significant film outperformance in a period, can result in fluctuations between periods, greater concentration of results in a particular period, and limit the comparability of year-over-year results. Other factors influencing segment results include the timing of documentary downstream sales, marketing expenditures associated with releases, and fluctuation in foreign currencies relative to U.S. Dollars.

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 half of 2026, Filmed For IMAX titles on average indexed approximately 10% 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 nine months of 2026, Filmed For IMAX titles on average indexed approximately 11% higher than titles with no IMAX DNA on opening weekend.

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, 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.

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, India, Thailand, 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 three and nine months ended September 30, 2026, local language films exhibited across the Company’s global network generated $36 million and $117 million in box office, representing 5% and 9%, respectively, 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 and six months ended June 30, 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 nine months ended September 30, 2026 and 2025:

Previous 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:

Current wording

In addition to the 101 IMAX films and other content experiences released on the Company’s global network during the nine months ended September 30, 2026, the Company has announced the following 32 films and other content experiences for release in the remainder of 2026:

Previous wording

The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network in 2026.

Current wording

The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network in 2026 and beyond. The Company’s Hollywood film slate in 2027 continues to fill out including major releases such as: Narnia: The Magician’s Nephew, The Thomas Crown Affair, Godzilla x Kong: Supernova, The Legend of Zelda, Star Wars: Starfighter, How to Train Your Dragon 2, Spider-Man: Beyond the Universe, Shrek 5, Man of Tomorrow, Frozen 3 and Avengers: Secret Wars.

Previous wording

The Company believes that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company. As of June 30, 2026, the Company had distribution rights with respect to approximately 75 films, which cover subjects such as space, wildlife, music, sports, history, and natural wonders.

Current wording

The Company believes that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company. As of September 30, 2026, the Company had distribution rights with respect to approximately 70 films, which cover subjects such as space, wildlife, music, sports, history, and natural wonders.

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 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.

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 IMAX documentary Cave of Forgotten Dreams, in collaboration with Independent Film Company. In October 2026, the Company released the documentaries Stormbound, produced by Academy Award-winning producer, Adam McKay; Portrait of an Artist: Stephen Curryin collaboration with Religion of Sports, Unanimous Media, and NBA Entertainment; Everest: The Other Side in collaboration with National Geographic; and The Elephant Odyssey, a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group. Upcoming documentaries which are currently in production include Frontier, produced in collaboration with Nocturnal Entertainment Productions, LLC, Atlas Entertainment LLC, and Believe Entertainment Group, LLC, is expected to be released in 2027.

Previous wording

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of June 30, 2026, the Company has 252 connected IMAX locations worldwide. Furthermore, the Company can use its live streaming technologies to deliver events to additional IMAX locations around the world.

Current wording

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of September 30, 2026, the Company was able to deliver live and interactive events to 251 locations worldwide. Furthermore, the Company can use its live streaming technologies to deliver events to additional IMAX locations around the world.

Previous 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.

Current wording

In the nine months ended September 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 Oasis: Don’t Look Back in Anger(Walt Disney Studios). The Company also exhibited limited releases of Marty Supreme(A24), Memento(China Film Group), Ghost: 2 Big to Rig(Popecorn Cinematic Pictures), Queen Budapest(Trafalgar Releasing), and Katy Perry: The Lifetimes Tour - Live From Paris(Trafalgar Releasing). 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. Furthermore, 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, the Monaco Grand Prix in June 2026, the British Grand Prixin July 2026, and the Italian Grand Prixin September 2026. In China, the Company partnered with China Film Group to livestream of the 2026 FIFA World Cup, Huaxia to livestream the German Table Tennis Bundesliga, and Warner Bros. Discovery for the re-release of The Shawshank Redemption, marking the film’s first theatrical release in China.

Previous wording

The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company also provides IMAX film and digital cameras to content creators under the IMAX certified camera program.

Current wording

The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company provides IMAX film and digital cameras to content creators under the IMAX certified camera program.

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 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.

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 September 30, 2026, the Company had 883 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 178 IMAX systems under JRSAs as of September 30, 2026, including 87 new locations and 91 upgrades to existing locations.

Previous wording

IMAX’s Streaming and Consumer Technology (“SCT”) business offers a single unified program: IMAX Enhanced®. This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver The IMAX Experience to users across streaming platforms and consumer devices. The new IMAX Enhanced program for partners includes three core elements:

Current wording

IMAX’s Streaming and Consumer Technology (“SCT”) business works with content producers, streaming platforms and device manufacturers to deliver differentiated consumer experiences through the IMAX Enhanced program. Powered by proprietary VisionScience™ technology, the program supports premium content experiences consistent with IMAX quality standards and the IMAX brand promise. This program has three core elements:

Previous wording

IMAX Enhanced On-Demand: Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience. IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video.

Current wording

IMAX Enhanced On-Demand: As-intended quality preservation and optimization for films and series through IMAX-calibrated fidelity and remastering, preserving creative intent and offering a differentiated, premium IMAX-assured viewing experience. IMAX Enhanced on-demand content is currently available through services including Disney+, Sony Pictures Core, and Tencent Video.

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, 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.

Current wording

Device Certification & Calibration: Establishes IMAX quality standards and performance benchmarks for consumer devices to ensure enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained through playback and experienced as intended. Consumer device segments include TVs, soundbars, automotive, virtual reality and others. As of September 30, 2026, IMAX Enhanced device partners included Goer Dynamics, Sony Electronics, Hisense, TCL, Honor and Xiaomi Electronics, with certified devices in market from several of these partners. Within select certified-device relationships, IMAX is working to deliver a premium and differentiated presentation of professionally produced content, including feature films, series, documentaries, and live events.

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 including IMAX branded merchandise and cooperative merchandising with studios.

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; and the provision of management services to three other theaters.

Previous 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.

Current wording

IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,820 IMAX Systems operating as of September 30, 2026, representing a market penetration of only 41%. The Company believes that the majority of its future growth will come from international markets outside of Greater China. As of September 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

As of June 30, 2026, 73% of IMAX System arrangements in backlog were scheduled to be installed in international markets (2025 — 74%).

Current wording

As of September 30, 2026, 75% of IMAX System arrangements in backlog were scheduled to be installed in international markets (2025 — 74%).

Previous 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:

Current wording

The following tables provide detailed information about IMAX System signings and installations for the three and nine months ended September 30, 2026 and 2025:

Previous 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.

Current wording

The Company’s results for the three and nine months ended September 30, 2026 reflect growth across the business as well as the timing, mix and geographic distribution of global box office performance. The year-over-year increase in total global box office was primarily attributable to the box office performance of Christopher Nolan’s record breaking, global tentpole Filmed For IMAX release, The Odyssey, which became the Company’s highest grossing film of all time, along with significant contributions from Hollywood releases Project Hail Mary, Avatar: Fire and Ash and alternative content release Michael. Domestic and international markets outside of Greater China experienced strong box office growth, primarily driven by the performance of Filmed For IMAX Hollywood releases. The increases in global box office were partially offset by lower box office generated during the 2026 Chinese New Year as compared to the 2025 success of Ne Zha 2. 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 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%.

Current wording

For the three months ended September 30, 2026, the Company’s revenues and gross margin were $174.6 million and $126.3 million, respectively. In comparison to the prior year period, the Company’s revenues and gross margin increased by $67.9 million, or 64%, and $59.0 million, or 88%, respectively, principally due to the record box office performance of The Odyssey, the first film to be shot in its entirety with IMAX film cameras, and one where IMAX has delivered over 30% of the global box office.

Previous 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.

Current wording

For the three months ended September 30, 2026, Content Solutions segment revenues and gross margin increased by $49.1 million, or 110%, and $39.7 million, or 125%, respectively, when compared to the same period in 2025.

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 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 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 September 30, 2026, gross margin percent was 76% compared to 71% in the prior year period. The increase in gross margin reflects the mix of IMAX box office, amount of marketing spend and level of box office outperformance.

Previous wording

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 wording

In the three months ended September 30, 2026, one IMAX System was relocated from its original location (2025 ― two 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 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.

Previous wording

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 wording

For the three months ended September 30, 2026, gross margin percent was 69% compared to 58% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance across the joint revenue sharing network, as described above.

Previous wording

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 wording

For the three months ended September 30, 2026, Research and Development expenses were $1.9 million, representing an increase of $0.4 million or 27%, when compared to $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 and camera product suite.

Previous 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.

Current wording

For the three months ended September 30, 2026, the Company recorded a credit loss expense of $1.2 million, as compared to a credit loss expense of $0.6 million in the prior year comparative period. The year over year change was primarily due to higher reserves established for specific customers in China resulting from a deterioration in customer credit quality.

Previous wording

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 wording

For the three months ended September 30, 2026 and 2025, interest expense was $1.8 million in each period. Average borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below) in the third quarter of 2026 and 2025 was $20.5 million in each period. The effective interest rate for the three months ended September 30, 2026 was 5.16% (2025 — 6.09%).

Previous wording

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 wording

For the three months ended September 30, 2026 and 2025, interest income was $0.7 million and $0.6 million, respectively. Interest income primarily comprises interest earned on bank deposits.

Previous wording

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 wording

For the three months ended September 30, 2026, the Company recorded an income tax recovery of $43.3 million (2025 — expense of $5.2 million). The Company’s effective tax rate of (58.7%) for the three months ended September 30, 2026 (2025 — 18.7%) reflects the release of a valuation allowance related to certain Canadian federal and provincial deferred tax assets and the geographic allocation of income earned in taxing jurisdictions and a decrease in tax reserves, partially offset by withholding taxes. The

Previous wording

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 wording

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. During the three months ended September 30, 2026, based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, the Company concluded that is more likely than not that certain of its Canadian federal and provincial deferred tax assets will be realized. The Company released the related valuation allowance, resulting in an income tax benefit in the period of $59.0 million, of which $36.7 million relates to deferred tax assets expected to be utilized in future years.

Previous 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.

Current wording

For the three months ended September 30, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $3.3 million, an increase of $1.3 million, when compared to the same period in 2025, which was driven by the higher level of IMAX box office earned in Greater China from The Odysseyand Spider-Man: Brand New Day.