IMAX (NYSE:IMAX) executives told investors the company delivered a “transformational” 2025, setting multiple records across box office, revenue, profitability, and cash flow, while positioning the business for what management described as a particularly strong film slate and continued network expansion in 2026 and beyond.
Record 2025 box office and financial results
CEO Rich Gelfond said IMAX finished 2025 with a record $1.28 billion in global box office, up 40% year over year, and captured its “biggest share of the global box office ever.” CFO Natasha Fernandes added that IMAX’s share reached a record 3.8% of global box office, up 700 basis points year over year.
- Total revenue: $410 million in 2025 (up 16% from $352 million in 2024)
- Adjusted EBITDA: $185 million (up 33% year over year)
- Adjusted EBITDA margin: 45% (a company record and above guidance in the low-40% range)
- Adjusted EPS: $1.45 (up $0.50 year over year)
- Cash from operations: $127 million (a record, exceeding the prior high of $110 million in 2018)
Fernandes said fourth-quarter revenue increased 35% year over year, while fourth-quarter IMAX box office totaled $336 million, up 16% from the prior fourth-quarter record. She also cited gross margin expansion, with fourth-quarter gross margin at 58% (up 540 basis points) and full-year gross margin at $246 million, or 60% (up 600 basis points).
Local-language success and a broader content mix
Gelfond emphasized growing diversity in IMAX’s programming, including what he called the company’s highest-grossing year ever for local-language films: $405 million worldwide, driven by 67 international releases from 14 countries. He cited “Ne Zha 2” and “Demon Slayer: Infinity Castle” as two of IMAX’s top five releases for the year.
Fernandes said IMAX’s content strategy produced different drivers each quarter in 2025, ranging from local-language strength early in the year to Film for IMAX indexing and a mix of genres and alternative programming, before finishing with large Hollywood tentpoles in the fourth quarter. She noted content solutions gross profit increased to $100 million for the year, up 50% year over year, with a 66% gross margin for 2025 versus 53% in 2024.
On the call, Wells Fargo’s Omar Mejias asked whether growth in non-Hollywood content could be constrained by a growing Hollywood slate. Gelfond said IMAX focuses on programming “the best content for a particular market throughout the year” and argued there is “enough runway and enough space” to accommodate more local-language films than last year, depending on scheduling and performance.
Network expansion, installations, and capital deployment
IMAX reported strong system activity in 2025, with 166 new and upgraded system agreements and 160 system installations worldwide. Fernandes said installations were at the high end of guidance and up 10% year over year, including 65 installations in the fourth quarter compared with 58 a year earlier.
Management repeatedly pointed to growth opportunities in “rest of world” markets and under-penetrated high-performing zones, while also emphasizing that North America remains an “engine of growth.” Gelfond cited agreements in 2025 with AMC, Cinemark, and Regal that supported strategic priorities, including new locations in Los Angeles and New York with Regal and three new IMAX 70-millimeter film locations with Cinemark. He also noted an example of under-penetration in Manhattan, where IMAX has five locations serving 1.6 million people, with a new Battery Park location set to open.
Fernandes said the company ended 2025 with $151 million in cash (up 50% from year-end 2024) and $289 million in debt, with net leverage of 0.7x. She also described liquidity of $550 million and said IMAX plans to use its balance sheet to help accelerate network deployment in select zones through joint revenue sharing arrangements and other structures. In response to a question on the mix of sales versus joint revenue sharing systems in 2026, Fernandes said IMAX guided to 160-175 installations with a 45%-55% sales-to-JV mix and remained on track toward that.
Fernandes also noted that fourth-quarter results included $22 million of one-time charges: $15 million tied to the strategic repurchase of over 99% of the convertible notes due 2026, and $7 million for a non-cash goodwill impairment related to the legacy StreamWave business. She said the company is repositioning parts of its streaming and consumer technology efforts to support live streaming content across the IMAX platform and the evolution of its core technologies.
2026 outlook: bigger slate, higher box office expectations, and more events
Looking ahead, Gelfond said IMAX expects another strong year in 2026, including projected global box office of $1.4 billion, 160-175 system installations, and an Adjusted EBITDA margin in the mid-forties “with a floor of 45%.” Longer term, management reiterated targets through 2028 that include high single- to low double-digit revenue CAGR, Adjusted EBITDA margin above 50% by 2028, adjusted EPS growth at twice the rate of revenue, and free cash flow conversion of about 50% in 2026 and growing.
Gelfond described the 2026 film slate as “arguably the strongest we’ve ever seen,” including at least 12 Film for IMAX releases worldwide. Titles he highlighted included Christopher Nolan’s “The Odyssey” (which he said is the first theatrical feature shot entirely with IMAX film cameras), “The Mandalorian and Grogu,” and “Dune: Part Three,” as well as family releases such as “Super Mario Galaxy Movie,” “Minions 3,” and “Toy Story 5.” He also cited Greta Gerwig’s “Narnia,” which he described as a partnership with Netflix, and referenced continued strength in local-language films, including “Godzilla Minus One” sequel and “Ramayana.”
Management also provided early 2026 box office commentary. Gelfond said January global box office was up 16% year over year. He noted “Avatar: Fire and Ash” earned more than $188 million in IMAX and indexed at 13% worldwide, while the Chinese New Year holiday delivered $28 million led by “Pegasus 3.” Addressing China more broadly during Q&A, Gelfond said Chinese New Year featured a “B slate” and that some titles slipped into the summer because they were not production-ready, framing the softer holiday period as “more a matter of timing” than a change in trend.
IMAX also discussed broadening beyond traditional film releases. Gelfond said the company secured an agreement with Apple to stream live broadcasts of Formula One World Championship races to IMAX locations in North America this season, noting Apple controls the North American rights. He said IMAX is exploring possibilities to expand to international races through other parties, and added that live sports opportunities require careful evaluation given complex and expensive rights considerations.
About IMAX (NYSE:IMAX)
IMAX Corporation is a global leader in immersive entertainment technologies, specializing in the design, manufacture and distribution of high-resolution cameras, projectors, and proprietary software solutions that enhance both film production and theatrical exhibition. The company licenses its premium large-format system to theatre owners and filmmakers around the world, enabling audiences to experience movies with greater clarity, scale and sound fidelity. IMAX also offers turnkey theatre development services, assisting cinema operators with auditorium design, installation and custom branding to optimize the customer experience.
Founded in 1967 and headquartered in Mississauga, Ontario, IMAX has built a reputation for pioneering film-format innovations, including its patented dual 15-perforation, 70-millimeter projection system.
