IMAX Corporation Reports Third Quarter 2025 Results
-
IMAX delivers record Q3 financial results across key metrics:
-
Record third quarter Revenue of
$106.7 million -
More than
30% YoY growth in Net Income, Adjusted EBITDA(1), EPS and Adjusted EPS(1) -
Strong profitability with Net Income Margin of
21% and Adjusted EBITDA(1) margin of49% -
Record quarterly cash flow of
$67.5 million
-
Record third quarter Revenue of
-
Highest grossing third quarter ever for IMAX at the global box office with
$368 million 50% YoY -
IMAX local language box office stands at
$343 million 40% and counting - System installations pacing to high-end of full year guidance (150 to 160) and signings of 142 year-to-date have eclipsed full-year 2024 (130)
-
Highly promising slate ahead in the fourth quarter, with Avatar: Fire and Ash, Wicked: For Good, Zootopia 2, The Running Man, and Predator: Badlands as IMAX remains on track for
$1.2 billion
Infographic highlighting IMAX's 3Q 2025 earnings results.
“IMAX is moving into a new position — building to something bigger — and our performance for the quarter and year to date demonstrate we’re breaking out and delivering at a higher level,” said Rich Gelfond, CEO of IMAX. “We continue to deliver results that exceed expectations and transcend the broader marketplace – thanks in large part to our unique, diversified global content portfolio spanning
“We strategically programmed our network to deliver our best third quarter in history and emphatically demonstrated our differentiation. While Domestic box office declined
“Our leadership with audiences is driving strong global demand for IMAX systems, with installations pacing to the high end of our 2025 guidance of 150 to 160 for the full year, and system sales already eclipsing our full-year total for 2024.”
“IMAX has never been better positioned creatively, commercially, or strategically. As successful as we’ve been in 2025, we continue to believe the best is yet to come, with no less than four massive tentpoles expected in 2026 – The Odyssey, Narnia, Dune Part Three and The Mandalorian and Grogu — for which IMAX is a central component of the filmmaking, marketing, and distribution.”
| _______________ | ||
(1) |
Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts. |
|
Third Quarter Financial Highlights
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||
In millions of |
2025 |
|
2024 |
|
YoY %
|
|
2025 |
|
2024 |
|
YoY % Change |
|||||||||||
Total Revenue |
$ |
106.7 |
|
|
$ |
91.5 |
|
|
17 |
% |
|
$ |
285.0 |
|
|
$ |
259.5 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Margin |
$ |
67.3 |
|
|
$ |
51.0 |
|
|
32 |
% |
|
$ |
174.0 |
|
|
$ |
141.8 |
|
|
23 |
% |
|
Gross Margin (%) |
|
63.1 |
% |
|
|
55.7 |
% |
|
740bps |
|
|
61.1 |
% |
|
|
54.6 |
% |
|
650bps |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income |
$ |
22.6 |
|
|
$ |
15.3 |
|
|
48 |
% |
|
$ |
43.0 |
|
|
$ |
25.8 |
|
|
67 |
% |
|
Net Income Margin (%) |
|
21.2 |
% |
|
|
16.8 |
% |
|
440bps |
|
|
15.1 |
% |
|
|
10.0 |
% |
|
510bps |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income Attributable to Common Shareholders |
$ |
20.7 |
|
|
$ |
13.9 |
|
|
49 |
% |
|
$ |
34.2 |
|
|
$ |
20.8 |
|
|
64 |
% |
|
Diluted Net Income Per Share(1) |
$ |
0.37 |
|
|
$ |
0.26 |
|
|
42 |
% |
|
$ |
0.62 |
|
|
$ |
0.39 |
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Adjusted EBITDA(2)(3) |
$ |
51.8 |
|
|
$ |
38.7 |
|
|
34 |
% |
|
$ |
127.8 |
|
|
$ |
101.7 |
|
|
26 |
% |
|
Total Adjusted EBITDA Margin (%)(2)(3) |
|
48.6 |
% |
|
|
42.3 |
% |
|
630bps |
|
|
44.9 |
% |
|
|
39.2 |
% |
|
570bps |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted Net Income(1)(2) |
$ |
26.2 |
|
|
$ |
18.9 |
|
|
39 |
% |
|
$ |
48.0 |
|
|
$ |
36.5 |
|
|
32 |
% |
|
Adjusted Earnings Per Share - Diluted(1)(2) |
$ |
0.47 |
|
|
$ |
0.35 |
|
|
34 |
% |
|
$ |
0.87 |
|
|
$ |
0.68 |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
53.8 |
|
|
|
52.7 |
|
|
2 |
% |
|
|
53.6 |
|
|
|
52.6 |
|
|
2 |
% |
|
Diluted |
|
55.6 |
|
|
|
54.1 |
|
|
3 |
% |
|
|
55.2 |
|
|
|
53.6 |
|
|
3 |
% |
|
| _______________ | ||
(1) |
Attributable to common shareholders. |
|
(2) |
Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts. |
|
(3) |
Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was |
|
Third Quarter Segment Results(1)
|
Content Solutions |
|
Technology Products and Services |
|||||||||||||||||||
|
Revenue |
|
Gross Margin |
|
Gross Margin % |
|
Revenue |
|
Gross Margin |
|
Gross Margin % |
|||||||||||
3Q25 |
$ |
44.8 |
|
|
$ |
31.9 |
|
|
71 |
% |
|
$ |
60.4 |
|
|
$ |
34.8 |
|
|
58 |
% |
|
3Q24 |
|
30.1 |
|
|
|
16.4 |
|
|
55 |
% |
|
|
58.0 |
|
|
|
32.0 |
|
|
55 |
% |
|
% change |
|
49 |
% |
|
|
94 |
% |
|
|
|
|
4 |
% |
|
|
9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
YTD25 |
$ |
113.0 |
|
|
$ |
77.9 |
|
|
69 |
% |
|
$ |
166.7 |
|
|
$ |
94.1 |
|
|
56 |
% |
|
YTD24 |
|
99.2 |
|
|
|
54.7 |
|
|
55 |
% |
|
|
152.0 |
|
|
|
81.3 |
|
|
54 |
% |
|
% change |
|
14 |
% |
|
|
42 |
% |
|
|
|
|
10 |
% |
|
|
16 |
% |
|
|
|||
| _______________ | ||
(1) |
Please refer to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2025 for additional segment information. |
|
Content Solutions Segment
-
Content Solutions revenue of
$44.8 million 49% year-over-year. Third quarter 2025 IMAX gross box office increased50% year-over-year to$367.6 million -
Third quarter box office growth was driven by a diverse mix of global content that resulted in IMAX delivering
4.2% of the global box office, an increase of49% year-over-year. Highlights included:-
Over 20 Local Language titles including the breakout anime hit Demon Slayer: Infinity Castle that has become IMAX’s highest grossing title in
Japan as well as our highest grossing domestic foreign language film - Four Filmed for IMAX releases (Superman, Dongji Rescue, Fantastic Four: First Steps and A Writer’s Odyssey 2) as well as the successful bring back of F1:The Movie
-
Eight alternative content titles including concert films (The Grateful Dead Movie, David Gilmour Concert and Prince Sign O’ the Times),
Hollywood re-releases (Jaws, Apollo 13 and Black Swan) and live-streamed events (Dead & Company and Spinal Tap II)
-
Over 20 Local Language titles including the breakout anime hit Demon Slayer: Infinity Castle that has become IMAX’s highest grossing title in
-
Gross margin for Content Solutions of
$31.9 million 94% year-over-year. The Company saw significant Content Solutions margin expansion going from55% in Q3 2024 to a record of71% in Q3 2025, driven by the operating leverage in our business that accompanies box office growth.
Technology Products and Services Segment
-
Technology Products and Services revenues and gross margin increased
4% year-over-year to$60.4 million 9% year-over-year to$34.8 million -
Demand for IMAX systems is growing. During the third quarter of 2025, the Company installed 38 systems and year-to-date 95 systems, an increase of
8% compared to 88 systems installed in the same period in 2024. Of the Q3 2025 installations, 17 systems were under sales arrangements, compared to 20 in the third quarter in prior year; year-to-date 43 systems have been under sales arrangements versus 35 in the prior year period. - Commercial network growth continues with the number of IMAX locations increasing to 1,759 from 1,714 in the prior year period. The Company ended the third quarter with a backlog of 478 IMAX systems.
Operating Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2025 increased
On July 14, 2025, the Company renewed and expanded its senior secured revolving credit facility, increasing the Company's borrowing capacity from
As of September 30, 2025, the Company’s available liquidity was
In 2021, the Company issued
Share Count and Capital Return
The weighted average basic and diluted shares outstanding in the third quarter of 2025 were 53.8 million and 55.6 million, respectively, compared to 52.7 million and 54.1 million in the third quarter of 2024.
For the nine months ended September 30, 2025, IMAX China repurchased 1,495,900 common shares at an average price of
In June 2025, the Company’s Board of Directors approved an extension of its share repurchase program through June 30, 2027 and an increase of approximately
Supplemental Materials
For more information about the Company’s results, please refer to the IMAX Investor Relations website located at investors.imax.com.
Investor Relations Website and Social Media
On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at investors.imax.com. The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice.
The Company may post additional information on the Company’s corporate and Investor Relations websites, which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company’s website in addition to the Company’s press releases, United States Securities and Exchange Commission (the “SEC”) or in
Conference Call
The Company will host a conference call today at 8:30 AM ET to discuss its third quarter 2025 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register at: https://register-conf.media-server.com/register/BIdeefa35cbfb744abbe2b1d5d16ab7b99 and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you’ve never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX’s network among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in
IMAX®, IMAX® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX Live®, IMAX Enhanced® and IMAX StreamSmart® are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).
Forward-Looking Statements
This earnings release contains forward looking statements that are based on IMAX Corporation (the “Company”) management’s assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. In some cases, you can identify these statements by forward-looking words such as “believe,” “continue,” “expect,” “may,” “project,” “momentum,” “on track,” “prospects,” “runway,” “will” or the negative or other variations thereon or comparable terminology. These forward-looking statements include, but are not limited to, statements regarding business and technology strategies and measures to implement strategies, statements about the Company’s belief and expectations, competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for expansion and growth of business, network, operations and technology, future capital expenditures (including the amount and nature thereof), the Company’s technological capabilities and the differentiation thereof, brand equity and brand awareness and the benefits thereof, industry prospects and consumer behavior, future industry developments, including expected releases and the timing and effects thereof, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results, including its box office guidance for 2025. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of
IMAX Network and Backlog
|
Three Months Ended |
|
Nine Months Ended |
|||||
|
September 30, |
|
September 30, |
|||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
System Signings(1): |
|
|
|
|
|
|
|
|
Sales Arrangements |
15 |
|
10 |
|
49 |
|
40 |
|
Traditional JRSA |
4 |
|
6 |
|
93 |
|
71 |
|
Total IMAX System Signings |
19 |
|
16 |
|
142 |
|
111 |
|
(1) |
System signings include new signings of 18 in Q3 2025, 81 in YTD 2025, 15 in Q3 2024 and 42 YTD 2024. |
Three Months Ended |
|
Nine Months Ended |
||||||
|
September 30, |
|
September 30, |
|||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
System Installations(1): |
|
|
|
|
|
|
|
|
Sales Arrangements |
17 |
|
20 |
|
43 |
|
35 |
|
Hybrid JRSA |
1 |
|
— |
|
1 |
|
1 |
|
Traditional JRSA |
20 |
|
29 |
|
51 |
|
52 |
|
Total IMAX System Installations |
38 |
|
49 |
|
95 |
|
88 |
|
(1) |
System installations include new systems installations of 23 in Q3 2025, 55 in YTD 2025, 17 in Q3 2024, and 45 in YTD 2024. |
As of September 30, |
||||
|
2025 |
|
2024 |
|
System Backlog: |
|
|
|
|
Sales Arrangements |
157 |
|
170 |
|
Hybrid JRSA |
94 |
|
95 |
|
Traditional JRSA |
227 |
|
207 |
|
Total System Backlog |
478 |
|
472 |
|
|
|
|
|
|
|
As of September 30, |
|||
|
2025 |
|
2024 |
|
System Network: |
|
|
|
|
Commercial Multiplex Systems |
|
|
|
|
Sales Arrangements |
854 |
|
820 |
|
Hybrid JRSA |
119 |
|
129 |
|
Traditional JRSA |
786 |
|
765 |
|
Total Commercial Multiplex Systems |
1,759 |
|
1,714 |
|
Commercial Destination Systems |
10 |
|
12 |
|
Institutional Systems |
60 |
|
62 |
|
Total System Network |
1,829 |
|
1,788 |
|
IMAX CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands of |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
(Unaudited) |
|
(Unaudited) |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
Revenues |
|
|
|
|
|
|
|
|||||||||
Technology sales |
$ |
19,360 |
|
|
$ |
26,305 |
|
|
$ |
51,726 |
|
|
$ |
54,629 |
|
|
Image enhancement and maintenance services |
|
61,029 |
|
|
|
46,891 |
|
|
|
162,636 |
|
|
|
149,428 |
|
|
Technology rentals |
|
23,336 |
|
|
|
16,122 |
|
|
|
61,763 |
|
|
|
48,766 |
|
|
Finance income |
|
2,929 |
|
|
|
2,134 |
|
|
|
8,880 |
|
|
|
6,713 |
|
|
|
|
106,654 |
|
|
|
91,452 |
|
|
|
285,005 |
|
|
|
259,536 |
|
|
Costs and expenses applicable to revenues |
|
|
|
|
|
|
|
|||||||||
Technology sales |
|
9,454 |
|
|
|
10,605 |
|
|
|
26,029 |
|
|
|
24,594 |
|
|
Image enhancement and maintenance services |
|
23,065 |
|
|
|
23,087 |
|
|
|
63,886 |
|
|
|
73,371 |
|
|
Technology rentals |
|
6,864 |
|
|
|
6,741 |
|
|
|
21,041 |
|
|
|
19,736 |
|
|
|
|
39,383 |
|
|
|
40,433 |
|
|
|
110,956 |
|
|
|
117,701 |
|
|
Gross margin |
|
67,271 |
|
|
|
51,019 |
|
|
|
174,049 |
|
|
|
141,835 |
|
|
Selling, general and administrative expenses |
|
34,219 |
|
|
|
31,466 |
|
|
|
102,983 |
|
|
|
100,287 |
|
|
Research and development |
|
1,505 |
|
|
|
(265 |
) |
|
|
4,365 |
|
|
|
3,953 |
|
|
Amortization of intangible assets |
|
1,906 |
|
|
|
1,544 |
|
|
|
5,446 |
|
|
|
4,208 |
|
|
Credit loss expense (reversal), net |
|
596 |
|
|
|
(1,137 |
) |
|
|
287 |
|
|
|
(963 |
) |
|
Restructuring and other charges |
|
— |
|
|
|
— |
|
|
|
843 |
|
|
|
— |
|
|
Income from operations |
|
29,045 |
|
|
|
19,411 |
|
|
|
60,125 |
|
|
|
34,350 |
|
|
Realized and unrealized investment gains |
|
34 |
|
|
|
32 |
|
|
|
99 |
|
|
|
94 |
|
|
Retirement benefits non-service recovery (expense) |
|
17 |
|
|
|
(109 |
) |
|
|
(186 |
) |
|
|
(323 |
) |
|
Interest income |
|
557 |
|
|
|
625 |
|
|
|
2,211 |
|
|
|
1,720 |
|
|
Interest expense |
|
(1,832 |
) |
|
|
(2,240 |
) |
|
|
(5,560 |
) |
|
|
(6,467 |
) |
|
Income before taxes |
|
27,821 |
|
|
|
17,719 |
|
|
|
56,689 |
|
|
|
29,374 |
|
|
Income tax expense |
|
(5,205 |
) |
|
|
(2,376 |
) |
|
|
(13,688 |
) |
|
|
(3,538 |
) |
|
Net income |
|
22,616 |
|
|
|
15,343 |
|
|
|
43,001 |
|
|
|
25,836 |
|
|
Net income attributable to non-controlling interests |
|
(1,959 |
) |
|
|
(1,447 |
) |
|
|
(8,762 |
) |
|
|
(5,083 |
) |
|
Net income attributable to common shareholders |
$ |
20,657 |
|
|
$ |
13,896 |
|
|
$ |
34,239 |
|
|
$ |
20,753 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.38 |
|
|
$ |
0.26 |
|
|
$ |
0.64 |
|
|
$ |
0.39 |
|
|
Diluted |
$ |
0.37 |
|
|
$ |
0.26 |
|
|
$ |
0.62 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|||||||||
Basic |
|
53,788 |
|
|
|
52,682 |
|
|
|
53,561 |
|
|
|
52,605 |
|
|
Diluted |
|
55,565 |
|
|
|
54,089 |
|
|
|
55,242 |
|
|
|
53,628 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Additional Disclosure: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
$ |
30,519 |
|
|
$ |
14,900 |
|
|
$ |
46,415 |
|
|
$ |
48,902 |
|
|
Amortization of deferred financing costs |
$ |
508 |
|
|
$ |
493 |
|
|
$ |
1,492 |
|
|
$ |
1,478 |
|
|
IMAX CORPORATION |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands of |
||||||||
|
September 30, |
|
December 31, |
|||||
|
2025 |
|
2024 |
|||||
Assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
143,106 |
|
|
$ |
100,592 |
|
|
Accounts receivable, net of allowance for credit losses |
|
108,418 |
|
|
|
107,669 |
|
|
Financing receivables, net of allowance for credit losses |
|
118,944 |
|
|
|
119,885 |
|
|
Variable consideration receivables, net of allowance for credit losses |
|
83,792 |
|
|
|
82,593 |
|
|
Inventories |
|
41,435 |
|
|
|
32,840 |
|
|
Prepaid expenses |
|
15,054 |
|
|
|
13,121 |
|
|
Film assets, net of accumulated amortization |
|
11,976 |
|
|
|
8,686 |
|
|
Property, plant and equipment, net of accumulated depreciation |
|
243,836 |
|
|
|
240,133 |
|
|
Other assets |
|
24,002 |
|
|
|
22,441 |
|
|
Deferred income tax assets, net of valuation allowance |
|
12,728 |
|
|
|
14,499 |
|
|
Goodwill |
|
52,815 |
|
|
|
52,815 |
|
|
Other intangible assets, net of accumulated amortization |
|
33,467 |
|
|
|
35,124 |
|
|
Total assets |
$ |
889,573 |
|
|
$ |
830,398 |
|
|
Liabilities |
|
|
|
|||||
Accounts payable |
$ |
22,484 |
|
|
$ |
19,803 |
|
|
Accrued and other liabilities |
|
96,136 |
|
|
|
100,916 |
|
|
Deferred revenue |
|
64,505 |
|
|
|
52,686 |
|
|
Revolving credit facility borrowings, net of unamortized debt issuance costs |
|
26,477 |
|
|
|
36,356 |
|
|
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs |
|
230,743 |
|
|
|
229,901 |
|
|
Deferred income tax liabilities |
|
12,521 |
|
|
|
12,521 |
|
|
Total liabilities |
|
452,866 |
|
|
|
452,183 |
|
|
Commitments, contingencies and guarantees |
|
|
|
|||||
Non-controlling interests |
|
721 |
|
|
|
680 |
|
|
Shareholders’ equity |
|
|
|
|||||
Capital stock common shares — no par value. Authorized — unlimited number. 53,798,934 issued and outstanding (December 31, 2024 — 52,946,200 issued and outstanding) |
|
415,617 |
|
|
|
401,420 |
|
|
Other equity |
|
181,998 |
|
|
|
185,268 |
|
|
Statutory surplus reserve |
|
4,219 |
|
|
|
4,051 |
|
|
Accumulated deficit |
|
(240,604 |
) |
|
|
(274,675 |
) |
|
Accumulated other comprehensive loss |
|
(11,696 |
) |
|
|
(16,598 |
) |
|
Total shareholders’ equity attributable to common shareholders |
|
349,534 |
|
|
|
299,466 |
|
|
Non-controlling interests |
|
86,452 |
|
|
|
78,069 |
|
|
Total shareholders’ equity |
|
435,986 |
|
|
|
377,535 |
|
|
Total liabilities and shareholders’ equity |
$ |
889,573 |
|
|
$ |
830,398 |
|
|
IMAX CORPORATION |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands of |
||||||||
|
Nine Months Ended September 30, |
|||||||
|
(Unaudited) |
|||||||
|
2025 |
|
2024 |
|||||
Operating Activities |
|
|
|
|||||
Net income |
$ |
43,001 |
|
|
$ |
25,836 |
|
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
46,415 |
|
|
|
48,902 |
|
|
Amortization of deferred financing costs |
|
1,492 |
|
|
|
1,478 |
|
|
Credit loss expense (reversal), net |
|
287 |
|
|
|
(963 |
) |
|
Write-downs, including asset impairments |
|
1,303 |
|
|
|
3,034 |
|
|
Deferred income tax expense (recovery) |
|
734 |
|
|
|
(7,339 |
) |
|
Share-based and other non-cash compensation |
|
19,050 |
|
|
|
17,261 |
|
|
Unrealized foreign currency exchange gain |
|
(170 |
) |
|
|
(527 |
) |
|
Realized and unrealized investment gain |
|
(99 |
) |
|
|
(94 |
) |
|
Changes in assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(1,131 |
) |
|
|
23,001 |
|
|
Inventories |
|
(8,587 |
) |
|
|
(6,181 |
) |
|
Film assets |
|
(16,435 |
) |
|
|
(17,892 |
) |
|
Deferred revenue |
|
11,724 |
|
|
|
(13,393 |
) |
|
Changes in other operating assets and liabilities |
|
110 |
|
|
|
(13,771 |
) |
|
Net cash provided by operating activities |
|
97,694 |
|
|
|
59,352 |
|
|
Investing Activities |
|
|
|
|||||
Purchase of property, plant and equipment |
|
(6,750 |
) |
|
|
(3,816 |
) |
|
Investment in equipment for joint revenue sharing arrangements |
|
(24,114 |
) |
|
|
(21,728 |
) |
|
Acquisition of other intangible assets |
|
(3,915 |
) |
|
|
(4,802 |
) |
|
Net cash used in investing activities |
|
(34,779 |
) |
|
|
(30,346 |
) |
|
Financing Activities |
|
|
|
|||||
Proceeds from revolving credit facility borrowings |
|
85,000 |
|
|
|
55,000 |
|
|
Repayments of revolving credit facility borrowings |
|
(93,000 |
) |
|
|
(32,000 |
) |
|
Credit facility amendment fees paid |
|
(2,041 |
) |
|
|
— |
|
|
Repayments of other borrowings |
|
(538 |
) |
|
|
(489 |
) |
|
Repurchase of common shares - IMAX Corporation |
|
— |
|
|
|
(18,102 |
) |
|
Repurchase of common shares - IMAX China |
|
(1,454 |
) |
|
|
— |
|
|
Taxes withheld and paid on employee stock awards vested |
|
(9,742 |
) |
|
|
(4,978 |
) |
|
Common shares issued - stock options exercised |
|
1,394 |
|
|
|
— |
|
|
Principal payment under finance lease obligations |
|
— |
|
|
|
(480 |
) |
|
Net cash used in financing activities |
|
(20,381 |
) |
|
|
(1,049 |
) |
|
Effects of exchange rate changes on cash |
|
(20 |
) |
|
|
249 |
|
|
Increase in cash and cash equivalents during period |
|
42,514 |
|
|
|
28,206 |
|
|
Cash and cash equivalents, beginning of period |
|
100,592 |
|
|
|
76,200 |
|
|
Cash and cash equivalents, end of period |
$ |
143,106 |
|
|
$ |
104,406 |
|
|
Primary Reporting Groups
The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under
The Company has two reportable segments:
- Content Solutions, consists of services provided to studios and other content creators, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services.
- Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems to exhibition customers. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses.
Segment Revenue and Gross Margin
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
(Unaudited) |
|
(Unaudited) |
|||||||||
(In thousands of |
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||
Revenue |
|
|
|
|
|
|
|
|||||
Content Solutions |
$ |
44,832 |
|
$ |
30,129 |
|
$ |
113,046 |
|
$ |
99,218 |
|
Technology Products and Services |
|
60,420 |
|
|
57,971 |
|
|
166,652 |
|
|
152,019 |
|
Sub-total for reportable segments |
|
105,252 |
|
|
88,100 |
|
|
279,698 |
|
|
251,237 |
|
All Other(1) |
|
1,402 |
|
|
3,352 |
|
|
5,307 |
|
|
8,299 |
|
Total |
$ |
106,654 |
|
$ |
91,452 |
|
$ |
285,005 |
|
$ |
259,536 |
|
|
|
|
|
|
|
|
|
|||||
Gross Margin |
|
|
|
|
|
|
|
|||||
Content Solutions |
$ |
31,923 |
|
$ |
16,449 |
|
$ |
77,908 |
|
$ |
54,686 |
|
Technology Products and Services |
|
34,820 |
|
|
31,964 |
|
|
94,084 |
|
|
81,331 |
|
Sub-total for reportable segments |
|
66,743 |
|
|
48,413 |
|
|
171,992 |
|
|
136,017 |
|
All Other(1) |
|
528 |
|
|
2,606 |
|
|
2,057 |
|
|
5,818 |
|
Total |
$ |
67,271 |
|
$ |
51,019 |
|
$ |
174,049 |
|
$ |
141,835 |
|
| _______________ | ||
(1) |
All Other includes the results from the Company’s Streaming and Consumer Technology business, as well as other ancillary activities. |
|
IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, and Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under
A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable
Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) employee retention credits, and as well as the related tax impact of these adjustments.
The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures.
In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results.
EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Total Adjusted EBITDA is defined as EBITDA excluding: (i) share-based and other non-cash compensation expense; (ii) unrealized investment losses or gains; (iii) restructuring and other charges; and i(v) write-downs, including asset impairments and credit loss reversal. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) write-downs, net of recoveries, including asset impairments and credit loss expense or reversal.
A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable
In this release, the Company also presents free cash flow, which is not recognized under
Adjusted EBITDA per Credit Facility
|
Three Months Ended (Unaudited) |
|||||||
(In thousands of |
September 30, 2025 |
|
September 30, 2024 |
|||||
Revenues |
$ |
106,654 |
|
|
$ |
91,452 |
|
|
Reported net income |
$ |
22,616 |
|
|
$ |
15,343 |
|
|
Add (subtract): |
|
|
|
|||||
Income tax expense |
|
5,205 |
|
|
|
2,376 |
|
|
Interest expense, net of interest income |
|
766 |
|
|
|
1,123 |
|
|
Depreciation and amortization, including film asset amortization |
|
15,611 |
|
|
|
14,900 |
|
|
Amortization of deferred financing costs(1) |
|
508 |
|
|
|
493 |
|
|
EBITDA |
$ |
44,706 |
|
|
$ |
34,235 |
|
|
Share-based and other non-cash compensation |
|
6,284 |
|
|
|
5,508 |
|
|
Unrealized investment (gains) losses |
|
(34 |
) |
|
|
(32 |
) |
|
Write-downs, including asset impairments and credit loss reversal |
|
853 |
|
|
|
(1,025 |
) |
|
Total Adjusted EBITDA |
$ |
51,809 |
|
|
$ |
38,686 |
|
|
Less: Non-controlling interest |
|
(3,850 |
) |
|
|
(3,116 |
) |
|
Adjusted EBITDA per Credit Facility - attributable to common shareholders |
$ |
47,959 |
|
|
$ |
35,570 |
|
|
| _______________ | |||
(1 |
) |
The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations. |
|
Adjusted EBITDA per Credit Facility
|
Nine Months Ended (Unaudited) |
|||||||
(In thousands of |
September 30, 2025 |
|
September 30, 2024 |
|||||
Revenues |
$ |
285,005 |
|
|
$ |
259,536 |
|
|
Reported net income |
|
43,001 |
|
|
$ |
25,836 |
|
|
Add (subtract): |
|
|
|
|||||
Income tax expense |
|
13,688 |
|
|
|
3,538 |
|
|
Interest expense, net of interest income |
|
1,857 |
|
|
|
3,271 |
|
|
Depreciation and amortization, including film asset amortization |
|
46,415 |
|
|
|
48,902 |
|
|
Amortization of deferred financing costs(1) |
|
1,492 |
|
|
|
1,477 |
|
|
EBITDA |
$ |
106,453 |
|
|
$ |
83,024 |
|
|
Share-based and other non-cash compensation |
|
19,050 |
|
|
|
17,261 |
|
|
Unrealized investment (gains) losses |
|
(99 |
) |
|
|
(94 |
) |
|
Restructuring and other charges |
|
843 |
|
|
|
— |
|
|
Write-downs, including asset impairments and credit loss reversal |
|
1,590 |
|
|
|
1,547 |
|
|
Total Adjusted EBITDA |
$ |
127,837 |
|
|
$ |
101,738 |
|
|
Less: Non-controlling interest |
|
(15,148 |
) |
|
|
(11,201 |
) |
|
Adjusted EBITDA per Credit Facility - attributable to common shareholders |
$ |
112,689 |
|
|
$ |
90,537 |
|
|
| _______________ | ||
(1) |
The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations. |
|
Twelve Months Ended (Unaudited) |
||||||||
(In thousands of |
September 30, 2025(1) |
|
September 30, 2024(1) |
|||||
Revenues |
$ |
377,677 |
|
|
$ |
345,554 |
|
|
Reported net income |
$ |
49,867 |
|
|
$ |
29,147 |
|
|
Add (subtract): |
|
|
|
|||||
Income tax expense |
|
15,146 |
|
|
|
1,688 |
|
|
Interest expense, net of interest income |
|
2,522 |
|
|
|
3,907 |
|
|
Depreciation and amortization, including film asset amortization |
|
63,021 |
|
|
|
62,447 |
|
|
Amortization of deferred financing costs(2) |
|
1,984 |
|
|
|
1,970 |
|
|
EBITDA |
$ |
132,540 |
|
|
$ |
99,159 |
|
|
Share-based and other non-cash compensation |
|
24,998 |
|
|
|
23,661 |
|
|
Unrealized investment gains |
|
(132 |
) |
|
|
(123 |
) |
|
Transaction-related expenses |
|
— |
|
|
|
327 |
|
|
Restructuring and other charges |
|
4,592 |
|
|
|
1,593 |
|
|
Write-downs, including asset impairments and credit loss reversal |
|
3,042 |
|
|
|
2,359 |
|
|
Total Adjusted EBITDA |
$ |
165,040 |
|
|
$ |
126,976 |
|
|
Less: Non-controlling interest |
$ |
(18,138 |
) |
|
$ |
(13,422 |
) |
|
Adjusted EBITDA per Credit Facility - attributable to common shareholders |
$ |
146,902 |
|
|
$ |
113,554 |
|
|
| _______________ | ||
(1) |
The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis. |
|
(2) |
The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations. |
|
Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share
|
Three Months Ended September 30, (Unaudited) |
|||||||||||||||
|
2025 |
|
2024 |
|||||||||||||
(In thousands of |
Net Income |
|
Per Diluted Share |
|
Net Income |
|
Per Diluted Share |
|||||||||
Net income attributable to common shareholders |
$ |
20,657 |
|
|
$ |
0.37 |
|
|
$ |
13,896 |
|
|
$ |
0.26 |
|
|
Adjustments(1): |
|
|
|
|
|
|
|
|||||||||
Share-based compensation |
|
6,194 |
|
|
|
0.11 |
|
|
|
5,332 |
|
|
|
0.10 |
|
|
Unrealized investment gains |
|
(34 |
) |
|
|
— |
|
|
|
(32 |
) |
|
|
— |
|
|
Employee retention credits |
|
(144 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Tax impact on items listed above |
|
(433 |
) |
|
|
(0.01 |
) |
|
|
(341 |
) |
|
|
(0.01 |
) |
|
Adjusted net income(1) |
$ |
26,240 |
|
|
$ |
0.47 |
|
|
$ |
18,855 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|||||||||
Basic |
|
|
|
53,788 |
|
|
|
|
|
52,682 |
|
|||||
Diluted |
|
|
|
55,565 |
|
|
|
|
|
54,089 |
||||||
| _______________ | ||
(1) |
Reflects amounts attributable to common shareholders. |
|
Nine Months Ended September 30, (Unaudited) |
||||||||||||||||
|
2025 |
|
2024 |
|||||||||||||
(In thousands of |
Net Income |
|
Per Diluted Share |
|
Net Income |
|
Per Diluted Share |
|||||||||
Net income attributable to common shareholders |
$ |
34,239 |
|
|
$ |
0.62 |
|
|
$ |
20,753 |
|
|
$ |
0.39 |
|
|
Adjustments(1): |
|
|
|
|
|
|
|
|||||||||
Share-based compensation |
|
18,534 |
|
|
|
0.34 |
|
|
|
16,686 |
|
|
|
0.30 |
|
|
Unrealized investment gains |
|
(99 |
) |
|
|
— |
|
|
|
(94 |
) |
|
|
— |
|
|
Restructuring and other charges |
|
843 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Employee retention credits |
|
(3,971 |
) |
|
|
(0.07 |
) |
|
|
— |
|
|
|
— |
|
|
Tax impact on items listed above |
|
(1,521 |
) |
|
|
(0.03 |
) |
|
|
(803 |
) |
|
|
(0.01 |
) |
|
Adjusted net income(1) |
$ |
48,025 |
|
|
$ |
0.87 |
|
|
$ |
36,542 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|||||||||
Basic |
|
|
|
53,561 |
|
|
|
|
|
52,605 |
|
|||||
Diluted |
|
|
|
55,242 |
|
|
|
|
|
53,628 |
|
|||||
| _______________ | ||
(1) |
Reflects amounts attributable to common shareholders. |
|
Free Cash Flow
|
Nine Months Ended |
|||||||
|
September 30, |
|||||||
(In thousands of |
2025 |
|
2024 |
|||||
Net cash provided by operating activities |
$ |
97,694 |
|
|
$ |
59,352 |
|
|
Purchase of property, plant and equipment |
|
(6,750 |
) |
|
|
(3,816 |
) |
|
Acquisition of other intangible assets |
|
(3,915 |
) |
|
|
(4,802 |
) |
|
Free cash flow before growth CAPEX(1) |
|
87,029 |
|
|
|
50,734 |
|
|
Investment in equipment for joint revenue sharing arrangements |
|
(24,114 |
) |
|
|
(21,728 |
) |
|
Free cash flow |
$ |
62,915 |
|
|
$ |
29,006 |
|
|
| _______________ | ||
(1) |
Growth CAPEX is defined as capital expenditures associated with investments in equipment for joint revenue sharing arrangements. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251023023957/en/
Investors:
IMAX Corporation,
Jennifer Horsley
212-821-0154
jhorsley@IMAX.com
Media:
IMAX Corporation,
Mark Jafar
212-821-0102
mjafar@imax.com
Source: IMAX Corporation
