IMAX (NYSE:IMAX) Chief Financial Officer Natasha Fernandes outlined the company’s 2025 priorities, growth levers, and long-term financial targets during a conference discussion with Roth Capital’s Eric Handler, pointing to a strategy focused on deeper filmmaker and studio partnerships, continued technology differentiation, and expanding IMAX’s global footprint and programming mix.
2025 strategic focus: studio relationships and the “IMAX experience”
Fernandes said IMAX is coming off what she described as a record year and is focused on building consistent year-over-year growth. She highlighted two main themes for 2025: strengthening relationships with filmmakers and studios, and continuing to differentiate the IMAX experience through technology.
Box office outlook: $1.4 billion and drivers of confidence
Handler cited an expected global box office outlook of about $1.4 billion for IMAX in 2025 and noted a difficult first-quarter comparison due to the prior year’s outsized contribution from China’s Chinese New Year period, including Ne Zha 2. Fernandes said the year-over-year comparison was not a surprise and added that China’s first-quarter contribution last year was unusually high relative to normal seasonality.
Fernandes pointed to several factors supporting the outlook, including more opportunities for blockbuster performance than in the prior year. She noted that in the previous year IMAX played one title that grossed more than $1 billion (Zootopia), while she expects more titles in 2025 to have the potential to surpass $1 billion in global box office. She specifically referenced upcoming releases including Super Mario, Star Wars, Odyssey, Dune, and others as examples of larger opportunity this year.
Another key element, according to Fernandes, is IMAX’s “indexing” performance—its ability to capture a disproportionate share of a film’s box office relative to its small share of total screens. She pointed to Project Hail Mary as an example of studios leaning into “Filmed for IMAX” marketing and production techniques. Fernandes said the film indexed 20.3% domestically and that Monday performance rose to 24% domestically, adding $3 million that day. She also described marketing efforts tied to the film, including an IMAX screen sent into the stratosphere to play an IMAX trailer and broadcast content live from Los Angeles.
“Filmed for IMAX” evolves with more flexible exclusivity
Fernandes said the “Filmed for IMAX” program remains central to IMAX’s growth, particularly because using IMAX cameras encourages filmmakers to engage with the company well ahead of release. She added that the company is maturing the program and adjusting the structure of exclusivity.
According to Fernandes, earlier iterations often guaranteed two weeks of full IMAX exclusivity for “Filmed for IMAX” titles, but the approach has evolved into “different levels.” Some films may receive longer guaranteed exclusivity—for example, she said Christopher Nolan titles have a three-week exclusive window—while other titles may use IMAX cameras and marketing without a guaranteed exclusive run. Fernandes said this flexibility helps IMAX optimize box office performance while also supporting exhibitors’ programming needs.
Local language expansion: targeting 75 titles and under-penetrated markets
Fernandes described local-language content as an increasingly important contributor, saying roughly a quarter of IMAX’s box office is now local language. She contrasted past dependence on China with a broader international push, noting IMAX is aiming for 75 local-language titles this year, predominantly outside of China.
She linked this strategy to network utilization and growth in “rest of world” markets, noting IMAX expanded its network 8% in those regions last year. She cited Japan as a key growth market, pointing to network growth of 17% last year and estimating the country is about 40% penetrated. Fernandes also pointed to India, where she said the local-language release Dhurandhar delivered IMAX’s biggest opening in India and was the second biggest Indian title overall “ever,” while noting IMAX penetration in India is still below 25%.
On IMAX’s longer-term global expansion opportunity, Fernandes reiterated the company’s addressable market of about 4,500 locations worldwide compared with roughly 1,800 current locations across 91 countries. She highlighted significant under-penetration in several markets, including Australia (11% penetration), Germany (less than 20%), and France (about 30% to 40%). Fernandes also discussed IMAX’s first Brazilian title, 2DIE4, which she described as a “Fast & Furious Brazilian equivalent,” and said Latin America remains highly under-penetrated for the company.
Alternative content, Netflix, and financial targets
Fernandes said IMAX expects alternative content to grow about 20% this year, with demand driven by sports, music, and event-style programming. She pointed to concert films and described the communal atmosphere these events can create. She also discussed sports and gaming opportunities, including IMAX’s announced F1 live race events beginning in May, with five events across about 50 domestic locations, and past League of Legends events in China. Fernandes said such programming can introduce IMAX to consumers who do not typically attend movie theaters.
Regarding Netflix, Fernandes said IMAX is bringing content to theaters that otherwise would not have been released theatrically. She said the IMAX-exclusive release stems from filmmaker interest—specifically citing Greta Gerwig—and described the indexing opportunity as “100%” for an exclusive. She added that, if successful, a franchise could create potential for additional future content.
On profitability, Fernandes corrected Handler’s reference to IMAX’s adjusted EBITDA margin, stating the company reached 45% in 2025 versus 28% in 2022. She attributed margin expansion to the incremental nature of IMAX’s model, where costs—particularly SG&A—do not rise in step with box office gains. Fernandes also said IMAX ended 2025 with 46% free cash conversion, including a $30 million investment in network growth. She reiterated that IMAX has publicly guided to EBITDA margins above 50% by 2028.
Fernandes said IMAX’s capital priorities include investing in network growth and returning capital through share repurchases. She noted IMAX renewed its revolver and completed a convertible refinancing, which she said provides runway for the next several years, and described buybacks as a major use of capital alongside reinvestment in the network.
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.
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