IMAX Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, reached $174.6 million, a 64% increase year-over-year from $106.7 million.
• Gross margin was $126.3 million, up 88% year-over-year, with a gross margin percentage of 72.3% compared to 63.1% in the prior year period.
• Net income was $117.1 million, representing a 418% year-over-year increase from $22.6 million, with a net income margin of 67.1% versus 21.2% previously.
• Net income attributable to common shareholders was $113.8 million, a 450% increase year-over-year, including a $36.7 million valuation allowance release related to Canadian deferred tax assets.
• Net income per diluted share was $1.96, up 430% year-over-year from $0.37.
• Adjusted EBITDA was $120.9 million, up 133% year-over-year from $51.8 million, with a margin of 69.3% compared to 48.6% in the prior year.
• Adjusted earnings per diluted share were $2.21, a 370% increase year-over-year from $0.47.
• Cash from operating activities for the quarter was $86 million, up 28% year-over-year; for the nine months ended September 30, 2026, it increased 25% to $122.1 million.
• Total debt, excluding deferred financing costs, was $251 million as of September 30, 2026.
• Available liquidity totaled $641 million, comprising $208 million in cash and cash equivalents, $375 million in available borrowing capacity under the revolving credit facility, and $58 million under IMAX China's revolving facilities.
• Deferred revenue increased to $57.1 million as of September 30, 2026, from $50.4 million at December 31, 2025.

Guidance and Future Outlook:

• Management expressed confidence in a "remarkably strong slate" over the next several years, citing the "IMAX awakening" and a cultural shift toward shared experiences.
• The 2027 slate is described as promising, led by the Chinese New Year release of Wandering Earth 3.
• Upcoming releases include Dune: Part Three, Avengers: Doomsday (China), Star Wars: Starfighter, the Superman sequel Man of Tomorrow, Avengers: Secret Wars, and the IMAX 70mm debut of the original Star Wars.
• Sales activity is accelerating following the record performance of The Odyssey and strong pre-sales for Dune: Part Three.

Business Segments and Product Lines:

• Content Solutions: Revenue increased 110% year-over-year to $94.0 million, with gross margin up 125% to $71.7 million and a margin percentage of 76%.
• Technology Products and Services: Revenue increased 28% year-over-year to $77.3 million, with gross margin up 53% to $53.4 million and a margin percentage of 69%.
• Global box office for the quarter reached a record $712 million, a 94% increase year-over-year, representing 6.7% of the industry's third-quarter global box office on less than 1% of worldwide screens.
• Christopher Nolan's The Odyssey was the highest-grossing IMAX release of all time with over $550 million in worldwide box office, contributing more than 30% of the film's global box office.
• Other top-grossing third-quarter titles included Spider-Man: Brand New Day ($58 million).
• Commercial network growth continued, reaching 1,820 systems as of September 30, 2026, compared to 1,759 systems in the prior year.
• The company ended Q3 2026 with a backlog of 409 IMAX systems.
• System installations totaled 32 in the quarter, down from 38 in the prior year; 15 were under sales arrangements.
• Year-to-date system signings reached over 100, with 65% being new locations.

Market and Competitive Landscape:

• The company highlighted a culture shift where audiences, particularly young people, are seeking connection and shared experiences that feel "bigger than any one person's screen."
• Management noted the growing value of scarce events and experiences in an increasingly AI-driven world.
• The company operates in 91 countries and territories with 1,887 total systems (1,820 commercial multiplexes, 10 commercial destinations, 57 institutional locations).
• Priority Rest of World markets showed strong growth.

Risks and Challenges:

• Forward-looking statements are qualified by risks including geopolitical conflicts, trade wars, and economic instability in foreign jurisdictions, particularly China.
• Risks include the ability of exhibitor customers to fulfill payment obligations, fluctuations in operating results, and currency fluctuations.
• Potential impacts of competition from other companies, in-home streaming, and advancements in AI-generated content are noted.
• Risks related to the conversion of system backlog into revenue and cash flows, as well as the performance of films released to the IMAX network, are highlighted.
• The company faces risks associated with the 2030 Convertible Notes and the potential for induced conversion expenses.

Management Commentary and Tone:

• CEO Rich Gelfond described the quarter as transcending a "great quarter" and noted an "awakening to the power and potential of our platform."
• Management stated that the record margins demonstrate the unique strength of their model and that there has "never been a better time to be in the IMAX business."
• The tone was highly confident, emphasizing the historic nature of The Odyssey and the momentum fueling sales activity with exhibitors globally.

Other Key Points:

• In June 2026, the Board of Directors extended the share repurchase program through June 30, 2027.
• As of September 30, 2026, the company had $500.0 million in total share repurchase authority, with approximately $237.0 million available.
• No common share repurchases occurred during the third quarter of 2026.
• The company issued $250 million of 0.750% Convertible Senior Notes due 2030 in 2025, with capped call transactions entered at a cap price of $57.10 per share.
• Goodwill impairment of $6.8 million was recorded for the quarter and nine months ended September 30, 2026.
• A valuation allowance release of $36.7 million related to Canadian deferred tax assets contributed to net income for the period.
• The company hosts a conference call to discuss results, with a replay available at investors.imax.com.