1 unchanged sentence
The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report:
−Removed: Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024
−Removed: Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024
−Removed: Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024
−Removed: Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024
−Removed: Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2025 and 2024
+Added: Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024
+Added: Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024
+Added: Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024
+Added: Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024
+Added: Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024
Notes to Condensed Consolidated Financial Statements
3 unchanged sentences
Dollars, except share amounts)
−Removed: June 30, December 31,
+Added: September 30, December 31,
Cash and cash equivalents $ 143,106 $ 100,592
43 unchanged sentences
Dollars, except per share amounts)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2025 2024 2025 2024
23 unchanged sentences
1,906 1,544 5,446 4,208
−Removed: Credit loss (reversal) expense, net
+Added: Credit loss expense (reversal), net
596 ( 1,137 ) 287 ( 963 )
3 unchanged sentences
Realized and unrealized investment gains
−Removed: Retirement benefits non-service expense
+Added: Retirement benefits non-service recovery (expense)
17 ( 109 ) ( 186 ) ( 323 )
5 unchanged sentences
27,821 17,719 56,689 29,374
−Removed: Income tax (expense) recovery
+Added: Income tax expense
( 5,205 ) ( 2,376 ) ( 13,688 ) ( 3,538 )
14 unchanged sentences
(In thousands of U.S.
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2025 2024 2025 2024
$ 22,616 $ 15,343 $ 43,001 $ 25,836
−Removed: Other comprehensive income (loss) before tax
−Removed: Unrealized net gain (loss) from cash flow hedging instruments
+Added: Other comprehensive income before tax
+Added: Unrealized net (loss) gain from cash flow hedging instruments
( 1,223 ) 337 582 ( 944 )
4 unchanged sentences
Defined benefit and postretirement benefit plans 2,090 ( 149 ) 1,744 ( 547 )
−Removed: Total other comprehensive income (loss) before tax
+Added: Total other comprehensive income before tax
2,624 4,125 6,731 1,528
−Removed: Income tax (expense) benefit related to other comprehensive income (loss)
+Added: Income tax (expense) benefit related to other comprehensive income
( 268 ) ( 92 ) ( 1,076 ) 328
−Removed: Other comprehensive income (loss), net of tax
+Added: Other comprehensive income, net of tax
2,356 4,033 5,655 1,856
9 unchanged sentences
(In thousands of U.S.
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Operating Activities
4 unchanged sentences
Amortization of deferred financing costs
−Removed: Credit loss (reversal) expense, net
+Added: Credit loss expense (reversal), net
Write-downs, including asset impairments
−Removed: Deferred income tax expense
+Added: Deferred income tax expense (recovery)
+Added: 734 ( 7,339 )
Share-based and other non-cash compensation
19,050 17,261
−Removed: Unrealized foreign currency exchange (gain) loss
+Added: Unrealized foreign currency exchange gain
+Added: ( 170 ) ( 527 )
Realized and unrealized investment gain
25 unchanged sentences
( 93,000 ) ( 32,000 )
+Added: Credit facility amendment fees paid
Repayments of other borrowings
5 unchanged sentences
Common shares issued - stock options exercised
−Removed: Net cash provided by financing activities
+Added: Principal payment under finance lease obligations
+Added: Net cash used in financing activities
+Added: ( 20,381 ) ( 951 )
Effects of exchange rate changes on cash
Increase in cash and cash equivalents during period
+Added: 42,514 28,304
Cash and cash equivalents, beginning of period
6 unchanged sentences
(In thousands of U.S.
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2025 2024 2025 2024
46 unchanged sentences
( 13,589 ) ( 13,974 ) ( 16,598 ) ( 12,081 )
−Removed: Other comprehensive income (loss), net of tax
+Added: Other comprehensive income, net of tax
1,893 2,959 4,902 1,066
6 unchanged sentences
1,929 1,431 8,721 5,067
−Removed: Other comprehensive income (loss), net of tax
+Added: Other comprehensive income, net of tax
463 1,073 753 789
Share-based compensation attributable to non-controlling interests
−Removed: 95 ( 65 ) 188 ( 6 )
Change in ownership interest related to IMAX China common share repurchases
28 unchanged sentences
A change in the value of an equity method investment that is other than temporary is recognized in the Condensed Consolidated Statements of Operations.
−Removed: As of June 30, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:
+Added: September 30, December 31,
(In thousands of U.S.
36 unchanged sentences
The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.
+Added: Measurement of Credit Losses for Accounts Receivable and Contract Assets
+Added: In July 2025, the FASB issued Accounting Standard Update No.
+Added: 2025-05, “Financial Instruments - Credit Losses (Topic 326):
+Added: Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”).
+Added: The amendments in ASU 2025-05 provide a practical expedient that allows entities to assume current economic conditions as of the balance sheet date will remain unchanged throughout the reasonable and supportable forecast period when estimating expected credit losses for eligible financial assets, including trade receivables and contract assets.
+Added: ASU 2025-05 is effective for fiscal periods beginning after December 15, 2025, including interim periods within those fiscal years.
+Added: The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.
+Added: Targeted Improvements to the Accounting for Internal-Use Software
+Added: In September 2025, the FASB issued Accounting Standard Update No.
+Added: 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”).
+Added: The amendments in ASU 2025-06 clarify and refine the criteria for capitalizing costs related to internal-use software.
+Added: Under the new guidance, capitalization is permitted when both of the following conditions are met:
+Added: (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.
+Added: ASU 2025-06 is effective for fiscal periods beginning after December 15, 2027, and interim periods thereafter.
+Added: The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.
The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates.
−Removed: ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended June 30, 2025.
+Added: ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended September 30, 2025.
The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions.
Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company.
−Removed: In order to mitigate the credit risk associated with its receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging.
+Added: In order to mitigate the credit risk associated with the Company’s receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an
+Added: analysis of collections history and aging.
This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification.
17 unchanged sentences
Accounts receivable also includes amounts due to the Company from movie studios and other content creators principally for digitally remastering films into IMAX formats, as well as for film distribution and post-production services.
−Removed: The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2025
+Added: The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2025
(In thousands of U.S.
12 unchanged sentences
$ 12,025 $ 1,029 $ 483 $ 13,537 $ 12,025 $ 1,029 $ 483 $ 13,537
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2024 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2024 September 30, 2024
(In thousands of U.S.
4 unchanged sentences
$ 14,095 $ 651 $ 1,080 $ 15,826 $ 14,355 $ 616 $ 1,006 $ 15,977
−Removed: Current period provision (reversal), net
+Added: Current period (reversal) provision, net
( 2,079 ) 600 ( 13 ) ( 1,492 ) ( 2,120 ) 638 61 ( 1,421 )
5 unchanged sentences
$ 12,134 $ 1,251 $ 1,067 $ 14,452 $ 12,134 $ 1,251 $ 1,067 $ 14,452
−Removed: For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.1 million and decreased by less than $ 0.1 million, respectively (2024 — decreased by $ 0.1 million and $ 0.2 million, respectively).
+Added: For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.3 million and $ 0.3 million, respectively (2024 — decreased by $ 1.4 million and $ 1.5 million, respectively).
Financing Receivables
Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Systems.
−Removed: As of June 30, 2025 and December 31, 2024, financing receivables consisted of the following:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, financing receivables consisted of the following:
+Added: September 30, December 31,
(In thousands of U.S.
29 unchanged sentences
$ 89,526 $ 90,546
−Removed: As of June 30, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:
+Added: September 30, December 31,
(In thousands of U.S.
6 unchanged sentences
8.85 % 8.95 %
−Removed: The tables below provide information on the Company’s net investment in leases by credit quality indicator as of June 30, 2025 and December 31, 2024.
+Added: The tables below provide information on the Company’s net investment in leases by credit quality indicator as of September 30, 2025 and December 31, 2024.
The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.
1 unchanged sentence
By Origination Year
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
2025 2024 2023 2022 2021 Prior Total
25 unchanged sentences
$ 3,469 $ 3,190 $ 3,483 $ 9,425 $ 3,440 $ 6,996 $ 30,003
−Removed: The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of June 30, 2025 and December 31, 2024.
+Added: The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of September 30, 2025 and December 31, 2024.
The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.
1 unchanged sentence
By Origination Year
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
2025 2024 2023 2022 2021 Prior Total
25 unchanged sentences
$ 6,628 $ 8,028 $ 6,278 $ 9,734 $ 7,016 $ 63,023 $ 100,707
−Removed: The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of June 30, 2025 and December 31, 2024:
−Removed: As of June 30, 2025
+Added: The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of September 30, 2025 and December 31, 2024:
+Added: As of September 30, 2025
(In thousands of U.S.
15 unchanged sentences
Total $ 1,117 $ 1,237 $ 15,647 $ 18,001 $ 112,709 $ 130,710 $ ( 10,825 ) $ 119,885
−Removed: The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of June 30, 2025 and December 31, 2024.
+Added: The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of September 30, 2025 and December 31, 2024.
The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
(In thousands of U.S.
15 unchanged sentences
Total $ 949 $ 828 $ 13,328 $ 15,105 $ 62,384 $ ( 1,092 ) $ 76,397
−Removed: The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of June 30, 2025 and December 31, 2024:
−Removed: As of June 30, 2025
+Added: The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of September 30, 2025 and December 31, 2024:
+Added: As of September 30, 2025
As of December 31, 2024
7 unchanged sentences
Total $ 30,103 $ ( 9,643 ) $ 20,460 $ 29,392 $ ( 8,931 ) $ 20,461
−Removed: For the three and six months ended June 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status.
−Removed: For the three and six months ended June 30, 2025, the Company recognized less than $ 0.1 million, respectively (2024 — less than $ 0.3 million and $ 0.7 million) in Finance Income related to the financed sales receivables in nonaccrual status.
−Removed: The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2025
+Added: For the three and nine months ended September 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status.
+Added: For the three and nine months ended September 30, 2025, the Company recognized $ 0.1 million and $ 0.2 million, respectively (2024 — $ 0.4 million and $ 1.0 million) in Finance Income related to the financed sales receivables in nonaccrual status.
+Added: The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2025
(In thousands of U.S.
6 unchanged sentences
$ 454 $ 9,819 $ 664 $ 10,161
−Removed: Current period reversal, net
+Added: Current period provision (reversal), net
2 83 ( 208 ) ( 263 )
Foreign exchange
+Added: — ( 9 ) — ( 5 )
Ending balance
$ 456 $ 9,893 $ 456 $ 9,893
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2024 June 30, 2024
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2024 September 30, 2024
(In thousands of U.S.
6 unchanged sentences
$ 450 $ 9,625 $ 453 $ 9,617
−Removed: Current period (reversal) provision, net
+Added: Current period provision (reversal), net
67 ( 148 ) 70 ( 135 )
3 unchanged sentences
$ 517 $ 9,504 $ 517 $ 9,504
−Removed: For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by $ 0.2 million and $ 0.2 million, respectively, and financed sale receivables decreased by $ 0.1 million and $ 0.3 million, respectively.
−Removed: For the three and six months ended June 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by less than $ 0.1 million, respectively, and financed sale receivables increased by less than $ 0.1 million, respectively.
+Added: For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases increased by less than $ 0.1 million and decreased by $ 0.2 million, respectively, and net financed sale receivables increased by $ 0.1 million and decreased by $ 0.3 million, respectively.
+Added: For the three and nine months ended September 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases increased by $ 0.1 million, respectively, and net financed sale receivables decreased by $ 0.1 million, respectively.
Variable Consideration Receivables
2 unchanged sentences
Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal.
−Removed: The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2025 2024 2025 2024
6 unchanged sentences
$ 120 $ 796 $ 120 $ 796
−Removed: For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables increased by less than $ 0.1 million, respectively (2024 — increased by less than $ 0.1 million, respectively).
+Added: For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables did not change and increased by less than $ 0.1 million, respectively (2024 — increased by $ 0.1 million and $ 0.2 million respectively).
Lease Arrangements
14 unchanged sentences
The Company’s JRSAs are typically non-cancellable for ten years or longer with renewal provisions.
−Removed: Title to the IMAX System under a joint revenue sharing arrangement generally does not transfer to the customer.
−Removed: The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the lease term.
+Added: Title to the IMAX System under a JRSA generally does not transfer to the customer.
+Added: The Company’s JRSAs do not contain a guarantee of residual value at the end of the lease term.
The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty throughout the term.
The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.
−Removed: The following lease payments are expected to be received by the Company for its sales-type leases and joint revenue sharing arrangements in each of the remainder of 2025, next four years and thereafter following the June 30, 2025 balance sheet date:
+Added: The following lease payments are expected to be received by the Company for its sales-type leases and JRSAs in each of the remainder of 2025, next four years and thereafter following the September 30, 2025 balance sheet date:
(In thousands of U.S.
−Removed: 2025 (six months remaining) $ 1,619
+Added: 2025 (three months remaining) $ 825
Thereafter 17,275
−Removed: As of June 30, 2025 and December 31, 2024, Inventories consisted of the following:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, Inventories consisted of the following:
+Added: September 30, December 31,
(In thousands of U.S.
4 unchanged sentences
Total $ 41,435 $ 32,840
−Removed: As of June 30, 2025, Inventories included finished goods of $ 2.3 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.
−Removed: During the three and six months ended June 30, 2025, the Company recorded write-downs of $ 0.1 million and $ 0.2 million, respectively (2024 — write-downs of $ 0.2 million during each such period) in Costs and Expenses Applicable to Revenues ― Technology Sales.
+Added: As of September 30, 2025, Inventories included finished goods of $ 4.1 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.
+Added: During the three and nine months ended September 30, 2025, the Company recorded write-downs of less than $ 0.1 million and $ 0.2 million, respectively (2024 — write-downs of $ 0.1 million and $ 0.3 million during each such period) in Costs and Expenses Applicable to Revenues ― Technology Sales.
Revolving Credit Facility Borrowings, Net
−Removed: As of June 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:
+Added: September 30, December 31,
(In thousands of U.S.
6 unchanged sentences
Credit Agreement
−Removed: The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”) maturing March 25, 2027.
−Removed: The Company’s obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.
−Removed: The Credit Agreement provided for a revolving borrowing capacity of $ 300.0 million, and contained an uncommitted accordion feature that allowed the Company to further increase its borrowing capacity by the greater of $ 140.0 million, for a total of $ 440.0 million, or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.
−Removed: The Credit Agreement required that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25 :1.00, on the last day of each fiscal quarter.
−Removed: The Company was in compliance with this requirement as of June 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00 :1.00.
−Removed: As of June 30, 2025, borrowings under the Credit Facility were $ 48.0 million (December 31, 2024 — $ 37.0 million) and bore interest at Term SOFR, plus a margin of 1.75 % per annum based on the Company’s total leverage ratio.
−Removed: The effective interest rate for the three and six months ended June 30, 2025 were 6.17 %, respectively.
−Removed: As of June 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.
−Removed: As of June 30, 2025, the amount available for future borrowings under the Credit Facility was $ 252.0 million (December 31, 2024 — $ 263.0 million).
+Added: The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”).
On July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto.
−Removed: The New Credit Agreement increases
−Removed: the Company’s revolving borrowing capacity to $ 375.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $ 515.0 million or greater, in the form of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the New Credit Agreement.
−Removed: The facility under the New Credit Agreement (the “New Facility”) matures on July 14, 2030;
−Removed: provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $ 100.0 million, then the maturity date for the New Facility shall automatically be modified to be the Springing Maturity Date.
−Removed: Loans under the New Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00 % to 1.75 % per annum or (ii) the U.S.
−Removed: base rate or the Canadian prime rate plus a margin ranging from 0.25 % to 1.00 % per annum, in each case depending on the Company’s total leverage ratio.
−Removed: In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.
−Removed: The New Credit Agreement requires that the Company does not exceed a maximum senior secured net leverage ratio of 3.25 :1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter.
+Added: The facility under the New Credit Agreement (the “New Credit Facility”) matures on July 14, 2030;
+Added: provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Credit Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $ 100.0 million, then the maturity date for the New Credit Facility shall automatically be modified to be the Springing Maturity Date.
+Added: The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.
+Added: The New Credit Agreement provides for a revolving borrowing capacity of $ 375.0 million, and contains an uncommitted accordion feature that allows the Company to further increase its borrowing capacity by the greater of $ 140.0 million or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.
+Added: The New Credit Agreement requires that the Company does not exceed a maximum Senior Secured Net Leverage Ratio (as defined therein) of 3.25 :1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter.
In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets.
The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type.
−Removed: The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Guarantors, and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.
−Removed: At closing, the Company incurred $ 52.0 million under the New Credit Agreement to repay the outstanding balance under the Credit Facility.
−Removed: The Company estimates the fees incurred in connection with the New Credit Agreement to be approximately $ 2.2 million, which will be amortized on a straight-line basis over the term of the New Credit Agreement.
+Added: The Company was in compliance with this requirement as of September 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00 :1.00.
+Added: Loans under the New Credit Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00 % to 1.75 % per annum or (ii) the U.S.
+Added: base rate or the Canadian prime rate plus a margin ranging from 0.25 % to 1.00 % per annum, in each case depending on the Company’s total leverage ratio.
+Added: In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.
+Added: The Company incurred fees of approximately $ 2.2 million in connection with the New Credit Agreement, which are being amortized on a straight-basis over the term of the New Credit Agreement.
+Added: As of September 30, 2025, borrowings under the New Credit Facility were $ 29.0 million (December 31, 2024 — $ 37.0 million under the previous Credit Facility) and bore interest at Term SOFR, plus a margin of 1.75 % per annum based on the Company’s total leverage ratio.
+Added: The effective interest rate for the three and nine months ended September 30, 2025 were 6.09 % and 6.15 %, respectively.
+Added: As of September 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.
+Added: As of September 30, 2025, the amount available for future borrowings under the New Credit Facility was $ 346.0 million (December 31, 2024 — $ 263.0 million under the previous Credit Facility).
Foreign Exchange Facility
−Removed: Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements.
−Removed: As of June 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $ 1.4 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $ 2.0 million).
−Removed: As of June 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 51.3 million (December 31, 2024 — $ 48.4 million).
+Added: Within the New Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements.
+Added: As of September 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $ 0.3 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $ 2.0 million).
+Added: As of September 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 48.7 million (December 31, 2024 — $ 48.4 million).
Bank of China Facility
−Removed: As of June 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 0.2 million (less than $ 0.1 million).
−Removed: As of June 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 26.5 million) and the amount available for letters of guarantee was RMB 9.8 million ($ 1.4 million).
+Added: As of September 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 1.0 million (less than $ 0.1 million).
+Added: As of September 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 26.7 million) and the amount available for letters of guarantee was RMB 9.0 million ($ 1.3 million).
The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee.
−Removed: The effective interest rate for the three and six months ended June 30, 2025 was 0 % for each such period (2024 — 0 % for each such period).There were no amounts drawn under the Bank of China Facility for the three and six months ended June 30, 2025.
+Added: The effective interest rate for the three and nine months ended September 30, 2025 was 0 % for each such period (2024 — 0 % for each such period).
+Added: There were no amounts drawn under the Bank of China Facility for the three and nine months ended September 30, 2025.
HSBC China Facility
−Removed: In June 2022, IMAX Shanghai entered into an unsecured revolving facility for up to RMB 200.0 million ($ 27.9 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”).
−Removed: As of June 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility.
−Removed: As of June 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 27.9 million).
−Removed: The effective interest rate for the three and six months ended June 30, 2025 was 0 % for each such period (2024 — 0 %).
−Removed: The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to September 20, 2025.
−Removed: The Company did not have any letters of credit or advance payment guarantees outstanding as of June 30, 2025 and December 31, 2024 under the NBC Facility.
+Added: In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd.
+Added: (“IMAX Shanghai”) entered into an unsecured revolving facility for up to RMB 200.0 million ($ 28.1 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”).
+Added: As of September 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility.
+Added: As of September 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 28.1 million).
+Added: The effective interest rate for the three and nine months ended September 30, 2025 was 0 % for each such period (2024 — 0 %).
+Added: The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to October 8, 2026.
+Added: The Company did not have any letters of credit or advance payment guarantees outstanding as of September 30, 2025 and December 31, 2024 under the NBC Facility.
Convertible Notes and Other Borrowings, Net
−Removed: As of June 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:
−Removed: June 30, December 31,
+Added: As of September 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:
+Added: September 30, December 31,
(In thousands of U.S.
13 unchanged sentences
On March 19, 2021, the Company issued $ 230.0 million of 0.500 % Convertible Senior Notes due 2026 (the “Convertible Notes”).
−Removed: The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021.
+Added: The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year.
The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.
1 unchanged sentence
Federal Economic Development Loan
−Removed: As of June 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $ 1.6 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.
+Added: As of September 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $ 1.5 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.
Commitments, Contingencies and Guarantees
16 unchanged sentences
On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties.
−Removed: On October 24, 2024, the Bombay High Court announced the dismissal of the Company’s application, and the Court issued a written order of dismissal on November 14, 2024.
−Removed: On December 13, 2024, the Company filed an appeal of this order, and the Company fully intends to continue pursuing its rights and seeking to enforce the arbitration award.
−Removed: The Company has also taken steps to enforce the ICC final award outside of India.
−Removed: In December 2011, the Ontario Superior Court of Justice issued an order recognizing the final award and requiring E-City to pay the Company $ 30,000 to cover the costs of the application, and in May 2012, the New York Supreme Court recognized the Canadian judgment and entered it as a New York judgment.
+Added: In an order dated November 14, 2024, the Bombay High Court dismissed the Company’s application.
+Added: On December 13, 2024, the Company filed an appeal of this order, on April 23, 2025, the Bombay High Court ruled that the Company’s appeal was maintainable, and on September 16, 2025, the Supreme Court of India dismissed E-City’s petition challenging that ruling.
+Added: The Company fully intends to continue pursuing its rights and seeking to enforce the arbitration award.
No amounts have been recognized in connection with this matter.
2 unchanged sentences
Product Warranties
−Removed: The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $ nil as of June 30, 2025 and $ 0.1 million as of December 31, 2024.
+Added: The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $ nil as of September 30, 2025 and $ 0.1 million as of December 31, 2024.
Director and Officer Indemnifications
3 unchanged sentences
The Company has purchased directors’ and officers’ liability insurance.
−Removed: No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, with respect to this indemnity.
+Added: No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, with respect to this indemnity.
Other Indemnification Agreements
12 unchanged sentences
Selling Expenses
−Removed: The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended June 30,
+Added: The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended September 30,
(In thousands of U.S.
13 unchanged sentences
Direct advertising and marketing costs for each IMAX System are expensed as incurred.
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
(In thousands of U.S.
14 unchanged sentences
Foreign Exchange
−Removed: Included in Selling, General and Administrative Expenses for the three and six months ended June 30, 2025 is a foreign currency net gain of $ 0.2 million and loss of $ 0.2 million, respectively (2024 — net losses of $ 0.2 million and $ 0.5 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.
+Added: Included in Selling, General and Administrative Expenses for the three and nine months ended September 30, 2025 is a foreign currency net loss of $ 0.2 million and loss of $ 0.4 million, respectively (2024 — net losses of $ 0.3 million and $ 0.8 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.
See Note 15 for additional information.
Government Assistance
−Removed: For the three and six months ended June 30, 2025, the Company recognized $ 3.8 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic.
−Removed: The ERC has been recognized as a reduction to Selling, General and Administrative Expenses ($ 2.5 million) and Costs and Expenses Applicable to Revenues ($ 1.3 million).
+Added: For the three and nine months ended September 30, 2025, the Company recognized $ 0.1 million and $ 4.0 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic.
+Added: During the nine months ended September 30, 2025, the ERC was recognized as a reduction to Selling, General and Administrative Expenses ($ 2.7 million) and Costs and Expenses Applicable to Revenues ($ 1.3 million).
Collaborative Arrangements
1 unchanged sentence
The accounting policy for the Company’s JRSAs is disclosed in Note 2 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.
−Removed: Revenue attributable to transactions arising between the Company and its customers under JRSAs are recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs).
−Removed: For the three and six months ended June 30, 2025, such revenues totaled $ 18.7 million and $ 37.9 million, respectively (2024 — $ 13.3 million and $ 32.5 million, respectively).
+Added: Revenue attributable to transactions arising between the Company and its customers under JRSAs is recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs).
+Added: For the three and nine months ended September 30, 2025, such revenues totaled $ 23.0 million and $ 60.9 million, respectively (2024 — $ 15.9 million and $ 48.4 million, respectively).
IMAX Film Remastering and Distribution
1 unchanged sentence
The accounting policy for IMAX Film Remastering and distribution arrangements is disclosed in Note 2 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.
−Removed: Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements are included in Revenues – Image Enhancement and Maintenance Services.
−Removed: For the three and six months ended June 30, 2025, such revenues totaled $ 28.7 million and $ 60.4 million, respectively (2024 — $ 21.3 million and $ 51.0 million, respectively).
+Added: Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements is included in Revenues – Image Enhancement and Maintenance Services.
+Added: For the three and nine months ended September 30, 2025, such revenues totaled $ 41.9 million and $ 105.7 million, respectively (2024 — $ 26.7 million and $ 77.7 million, respectively).
See Note 12 for a disaggregated presentation of the Company’s revenues.
1 unchanged sentence
The accounting policies relating to co-produced film arrangements are disclosed in Notes 2 and 3 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.
−Removed: As of June 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million, and four other co-produced film arrangements, the terms of which are similar.
−Removed: For the three and six months ended June 30, 2025, an expense of $ 0.1 million and $ 0.2 million, respectively (2024 — $ 2.9 million and $ 3.0 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.
+Added: As of September 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million, and four other co-produced film arrangements, the terms of which are similar.
+Added: For the three and nine months ended September 30, 2025, expenses of $ 0.2 million and $ 0.3 million, respectively (2024 — $ 0.2 million and $ 3.2 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.
Condensed Consolidated Statements of Cash Flows – Supplemental Information
Changes in other operating assets and liabilities
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(In thousands of U.S.
−Removed: (Increase) decrease in:
+Added: Decrease (increase) in:
Financing receivables
4 unchanged sentences
( 1,233 ) ( 10,308 )
+Added: ( 2,843 ) ( 2,026 )
Increase (decrease) in:
5 unchanged sentences
Depreciation and amortization
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(In thousands of U.S.
6 unchanged sentences
Total $ 46,415 $ 48,902
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(In thousands of U.S.
6 unchanged sentences
Significant non-cash investing activities
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(In thousands of U.S.
−Removed: Net decrease in accruals related to:
+Added: Net (decrease) increase in accruals related to:
Investment in equipment supporting JRSAs
3 unchanged sentences
$ ( 174 ) $ 537
−Removed: Income Tax (Expense) Benefit
−Removed: For the three months ended June 30, 2025, the Company recorded an income tax expense of $ 1.2 million (2024 — tax benefit of $ 4.0 million).
−Removed: The Company’s effective tax rate of 8.9 % for the three months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.
−Removed: For the six months ended June 30, 2025, the Company recorded an income tax expense of $ 8.5 million (2024 — tax expense of $ 1.2 million).
−Removed: The Company’s effective tax rate of 29.4 % for the six months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.
−Removed: On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was signed into law, introducing significant U.S.
−Removed: Key provisions that may impact IMAX are Interest Deductibility (IRC §163(j)), Bonus Depreciation and Section §179.
+Added: Income Tax Expense
+Added: For the three months ended September 30, 2025, the Company recorded an income tax expense of $ 5.2 million (2024 — $ 2.4 million).
+Added: The Company’s effective tax rate of 18.7 % for the three months ended September 30, 2025 reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.
+Added: For the nine months ended September 30, 2025, the Company recorded an income tax expense of $ 13.7 million (2024 — tax expense of $ 3.5 million).
+Added: The Company’s effective tax rate of 24.1 % for the nine months ended September 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects a decrease in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.
+Added: On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted, introducing substantial changes to U.S.
+Added: tax law that will take effect for the Company beginning in fiscal year 2026.
+Added: Key provisions of the Act include revisions to Interest Deductibility (IRC §163(j)), Bonus Depreciation, and Section §179.
The Company is currently evaluating the Act’s potential impact on its Consolidated Financial Statements and will update its assessment as further guidance becomes available.
−Removed: As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 13.6 million (December 31, 2024 — $ 14.5 million).
+Added: As of September 30, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 12.7 million (December 31, 2024 — $ 14.5 million).
Realization of net deferred tax assets is dependent upon generation of sufficient taxable income in future years to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards.
The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.
−Removed: As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2024 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.
+Added: As of September 30, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2024 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.
Capital Stock and Reserves
Share-Based Compensation
−Removed: For the three and six months ended June 30, 2025, share-based compensation expense totaled $ 7.4 million and $ 12.6 million, respectively (2024 — $ 6.9 million and $ 11.5 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: For the three and nine months ended September 30, 2025, share-based compensation expense totaled $ 6.3 million and $ 18.9 million, respectively (2024 — $ 5.4 million and $ 16.9 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands of U.S.
8 unchanged sentences
The following table summarizes the Company’s share-based compensation expense by each award type:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands of U.S.
9 unchanged sentences
$ 6,301 $ 5,399 $ 18,863 $ 16,938
−Removed: For the three and six months ended June 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of $ 1.7 million for each such period, of which $ 1.7 million granted during the six month period vested immediately (2024 — $ 1.7 million for each such period).
+Added: For the three and nine months ended September 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of less than $ 0.1 million and $ 1.7 million respectively, of which $ 1.7 million granted during the nine month period vested immediately (2024 — $ 0.1 million and $ 1.8 million respectively).
Stock Option Summary
−Removed: The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the six months ended June 30, 2025 and 2024:
+Added: The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the nine months ended September 30, 2025 and 2024:
Number of Shares Weighted Average Exercise
10 unchanged sentences
1,934,793 2,715,853 25.62 25.81
−Removed: Stock options are no longer granted under the Company’s previously approved SOP.
+Added: Stock options are no longer granted under the SOP.
IMAX LTIP Restricted Share Units (“RSU”) Summary
−Removed: The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the six months ended June 30, 2025 and 2024:
+Added: The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the nine months ended September 30, 2025 and 2024:
Number of Shares Weighted Average Grant Date
10 unchanged sentences
IMAX LTIP Performance Stock Units (“PSU”) Summary
−Removed: The Company grants two types of PSU awards, one which vests based on a combination of employee service and the achievement of certain Adjusted EBITDA targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets.
−Removed: The achievement of these targets are assessed over a three-year performance period, with vesting ranging from 0 % to 175 % of the initial Adjusted EBITDA PSU award or 150 % of the initial TSR PSU award, depending upon actual performance.
+Added: The Company grants two types of PSU award, one which vests based on a combination of employee service and the achievement of certain Adjusted EBITDA targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets.
+Added: The achievement of these targets is assessed over a three-year performance period, with vesting ranging from 0 % to 175 % of the initial Adjusted EBITDA PSU award or 150 % of the initial TSR PSU award, depending upon actual performance.
The grant date fair value for Adjusted EBITDA PSUs is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant.
The grant date fair value for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as market conditions and expected share price volatility over the term of the awards.
−Removed: The compensation expense attributable for each type of PSUs is recognized on a straight-line basis over the requisite service period.
−Removed: If, as a result of management’s assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made, respectively.
−Removed: The expense recognized in the six months ended June 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.
−Removed: The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the six months ended June 30, 2025 and 2024:
+Added: The compensation expense attributable for each type of PSU is recognized on a straight-line basis over the requisite service period.
+Added: If, as a result of management’s assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made.
+Added: The expense recognized in the nine months ended September 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.
+Added: The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30, 2025 and 2024:
Number of Awards Weighted Average Grant Date
9 unchanged sentences
1,155,368 1,100,967 20.13 18.32
−Removed: (1) For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $ 19.53 , as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175 % on account of full achievement of the targets and TSR targets vested at 123.5 %, which reflects actual performance.
−Removed: As of June 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,950,452 , assuming full achievement of the Adjusted EBITDA and TSR targets.
+Added: (1) For the nine months ended September 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $ 19.53 , as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175 % on account of full achievement of the targets and TSR targets vested at 123.5 %, which reflects actual performance.
+Added: As of September 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,940,472 , assuming full achievement of the Adjusted EBITDA and TSR targets.
Issuer Purchases of Equity Securities
2 unchanged sentences
With the increase of $ 100 million, the Company’s total share repurchase authority is $ 500.0 million under the current share repurchase program.
−Removed: As of June 30, 2025, the Company had $ 250.7 million available under the program.
+Added: As of September 30, 2025, the Company had $ 250.7 million available under the program.
The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors.
The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.
−Removed: During the three and six months ended June 30, 2025, the Company did no t have any repurchases of common shares.
−Removed: During the three and six months ended June 30, 2024, the Company repurchased 7,646 and 1,166,370 common shares, respectively, at an average price of $ 14.98 and $ 13.99 per share, respectively, for a total of $ 0.1 million and $ 16.3 million, respectively, excluding commissions.
−Removed: During the six months ended June 30, 2025 and 2024, there were no shares purchases in the administration of employee share-based plans.
−Removed: As of June 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares.
+Added: During the three and nine months ended September 30, 2025, the Company did no t have any repurchases of common shares.
+Added: During the three months ended September 30, 2024, the Company did no t have any repurchases of common shares.
+Added: During the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares, at an average price of $ 13.99 per share, for a total of $ 16.3 million, excluding commissions.
+Added: During the nine months ended September 30, 2025 and 2024, there were no shares purchased in the administration of employee share-based plans.
+Added: As of September 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares.
Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Condensed Consolidated Balance Sheets.
5 unchanged sentences
IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time.
−Removed: During the three and six months ended June 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($ 0.96 per share) for a total of HKD $ 11.3 million ($ 1.4 million), excluding commissions.
−Removed: During the three and six months ended June 30, 2024, IMAX China repurchased 119,000 common shares, at an average price of HKD 7.43 per share ($ 0.95 per share) for a total of HKD 0.9 million ($ 0.1 million).
+Added: During the three months ended September 30, 2025, IMAX China did not repurchase any common shares.
+Added: During the nine months ended September 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($ 0.96 per share) for a total of HKD $ 11.3 million ($ 1.4 million), excluding commissions.
+Added: During the three months ended September 30, 2024, IMAX China did no t have any repurchases of common shares.
+Added: During the nine months ended September 30, 2024, IMAX China repurchased 119,900 common shares, at an average price of HKD 7.43 per share ($ 0.95 per share) for a total of HKD 0.9 million ($ 0.1 million).
The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.
2 unchanged sentences
The following table reconciles the denominator of the basic and diluted weighted average share computations:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands) 2025 2024 2025 2024
9 unchanged sentences
55,565 54,089 55,242 53,628
−Removed: For the three and six months ended June 30, 2025, the calculation of diluted weighted average shares outstanding excludes 929,825 and 968,984 shares, respectively (2024 — 3,118,725 and 3,716,606 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including:
−Removed: (i) $ nil RSUs (2024 — 355,337 and 664,720 RSUs, respectively), (ii) 86,784 and 125,943
−Removed: PSUs, respectively (2024 — 42,848 and 331,346 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,720,540 stock options, respectively), as the effect would be anti-dilutive.
−Removed: The calculation of diluted weighted average shares outstanding for the three and six months ended June 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.
+Added: For the three and nine months ended September 30, 2025, the calculation of diluted weighted average shares outstanding excludes 844,551 and 928,945 shares, respectively (2024 — 2,192,874 and 2,769,499 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including:
+Added: (i) nil RSUs, respectively, (2024 — nil and 10,798 RSUs, respectively), (ii) 1,510 and 85,904 PSUs, respectively (2024 — nil and 42,848 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,192,874 and 2,715,853 stock options, respectively), as the effect would be anti-dilutive.
+Added: The calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.
Statutory Surplus Reserve
−Removed: Pursuant to the corporate law of the PRC, entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders.
+Added: Pursuant to the corporate law of the People’s Republic of China (“PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders.
All statutory reserves are created for specific purposes.
2 unchanged sentences
Disaggregated Information About Revenue
−Removed: The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended June 30, 2025
+Added: The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended September 30, 2025
(In thousands of U.S.
21 unchanged sentences
Total $ 19,360 $ 61,029 $ 23,336 $ 2,929 $ 106,654
−Removed: Six Months Ended June 30, 2025
+Added: Nine Months Ended September 30, 2025
(In thousands of U.S.
21 unchanged sentences
Total $ 51,726 $ 162,636 $ 61,763 $ 8,880 $ 285,005
−Removed: Three Months Ended June 30, 2024
+Added: Three Months Ended September 30, 2024
(In thousands of U.S.
21 unchanged sentences
Total $ 26,305 $ 46,891 $ 16,122 $ 2,134 $ 91,452
−Removed: Six Months Ended June 30, 2024
+Added: Nine Months Ended September 30, 2024
(In thousands of U.S.
16 unchanged sentences
Total $ 54,629 $ 149,428 $ 48,766 $ 6,713 $ 259,536
−Removed: For the three and six months ended June 30, 2025, revenues earned from Technology Sales include variable consideration of $ 3.1 million and $ 6.4 million, respectively (2024 — $ 7.7 million and $ 9.4 million, respectively).
−Removed: For the three and six months ended June 30, 2025, revenues earned from leasing arrangements total $ 19.1 million and $ 38.5 million, respectively (2024 — $ 13.3 million and $ 32.5 million, respectively), including $ 19.1 million and $ 38.4 million, respectively, in Revenues ― Technology Rentals (2024 — $ 13.9 million and $ 32.5 million, respectively), and $ 0.1 million in the three and six months ended June 30, 2025, respectively, in Revenues ― Technology Sales (2024 — a reversal of $ 0.7 million and $ nil , respectively).
+Added: For the three and nine months ended September 30, 2025, revenues earned from Technology Sales include variable consideration of $ 5.1 million and $ 11.4 million, respectively (2024 — $ 8.2 million and $ 17.6 million, respectively).
+Added: For the three and nine months ended September 30, 2025, revenues earned from leasing arrangements total $ 23.3 million and $ 61.8 million, respectively (2024 — $ 15.9 million and $ 48.4 million, respectively), including $ 23.3 million and $ 61.8 million, respectively, in Revenues ― Technology Rentals (2024 — $ 16.0 million and $ 48.5 million, respectively), and $ nil and $ 0.1 million in the three and nine months ended September 30, 2025, respectively, in Revenues ― Technology Sales (2024 — a reversal of $ 0.1 million).
Deferred Revenue
2 unchanged sentences
Payments, upon renewal each year, are either prepaid or made in arrears and can vary in frequency from monthly to annually.
−Removed: As of June 30, 2025, $ 21.6 million of consideration
−Removed: has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million).
−Removed: During the three and six months ended June 30, 2025, $ 10.8 million and $ 19.8 million of revenue, respectively, was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.
−Removed: During the three and six months ended June 30, 2024, $ 12.1 million and $ 24.2 million of revenue, respectively, was recognized from the $ 67.1 million balance of deferred revenue as of December 31, 2023.
+Added: As of September 30, 2025, $ 21.3 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million).
+Added: During the three and nine months ended September 30, 2025, $ 9.6 million and $ 29.4 million of revenue, respectively, was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.
+Added: During the three and nine months ended September 30, 2024, $ 11.5 million and $ 35.7 million of revenue, respectively, was recognized from the $ 67.1 million balance of deferred revenue as of December 31, 2023.
Segment Reporting
5 unchanged sentences
Segment Financial Information
−Removed: The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended June 30, 2025 and 2024:
+Added: The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended September 30, 2025 and 2024:
(In thousands of U.S.
8 unchanged sentences
Total $ 106,654 $ 91,452 $ 67,271 $ 51,019
−Removed: (1) The Company’s largest customer represents 12 % of total Revenues for the three months ended June 30, 2025 (2024 — 14 %) and one single customer accounted for more than 10 % of the Company’s total Accounts Receivable balance as of June 30, 2025.
+Added: (1) The Company’s largest customer represents 10 % of total Revenues for the three months ended September 30, 2025 (2024 — 13 %).
+Added: No single customer comprised more than 10% of the Company’s total Accounts Receivable balance as of September 30, 2025.
No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2024.
−Removed: The following table presents the Company’s revenue and gross margin by reportable segment for the six months ended June 30, 2025 and 2024:
+Added: The following table presents the Company’s revenue and gross margin by reportable segment for the nine months ended September 30, 2025 and 2024:
(In thousands of U.S.
8 unchanged sentences
Total $ 285,005 $ 259,536 $ 174,049 $ 141,835
−Removed: (1) The Company’s largest customer represented 10 % of total Revenues for the six months ended June 30, 2025 (2024 — 13 %).
−Removed: One single customer comprised of more than 10 % of the Company’s total Accounts Receivable as of June 30, 2025.
−Removed: No single customer comprised of more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.
+Added: (1) The Company’s largest customer represented 9 % of total Revenues for the nine months ended September 30, 2025 (2024 — 11 %).
+Added: No single customer comprised more than 10% of the Company’s total Accounts Receivable as of September 30, 2025.
+Added: No single customer comprised more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.
The following table presents the Costs and Expenses Applicable to Revenues for the Content Solutions segment that is made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S.
Content Solutions Segment:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(In thousands of U.S.
15 unchanged sentences
Technology Products and Services Segment:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
(In thousands of U.S.
15 unchanged sentences
(1) Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs.
−Removed: Also included is a recovery of $ 0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off.
+Added: Also included is a recovery of $ 0.5 million for insurance proceeds received during the nine months ended September 30, 2025, associated with inventory costs that were previously written off.
The total proceeds received were $ 0.7 million, and the incremental gain of $ 0.2 million was recognized in selling, general and administrative expenses.
3 unchanged sentences
IMAX Film Remastering and distribution revenue is generated through contractual relationships with studios and other third parties that may not be in the same geographical location as the IMAX Systems that exhibit the remastered films.
−Removed: The following table summarizes the Company’s revenues by geographic area for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: The following table summarizes the Company’s revenues by geographic area for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands of U.S.
2 unchanged sentences
Greater China 20,270 21,324 78,072 65,527
−Removed: Western Europe
−Removed: 14,112 10,508 21,665 24,699
Asia (excluding Greater China)
23,235 16,930 41,838 35,643
+Added: Western Europe
+Added: 14,050 3,741 35,715 28,440
Latin America 3,034 2,954 7,141 6,672
2 unchanged sentences
Total $ 106,654 $ 91,452 $ 285,005 $ 259,536
−Removed: The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Western Europe, and Asia (excluding Greater China) each comprise greater than 10 % of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024.
+Added: The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Western Europe, and Asia (excluding Greater China) each comprise greater than 10 % of the Company’s total revenues for the three and nine months ended September 30, 2025 and 2024.
Employee’s Pension and Postretirement Benefits
3 unchanged sentences
Gelfond under the SERP is fixed at $ 20.3 million.
−Removed: As of June 30, 2025, the Company’s projected benefit obligation under the SERP was $ 19.4 million (December 31, 2024 — $ 19.0 million).
−Removed: For the three and six months ended June 30, 2025, the Company recorded interest costs of $ 0.2 million and $ 0.4 million, respectively, (2024 — $ 0.2 million and $ 0.4 million, respectively) related to the SERP.
+Added: As of September 30, 2025, the Company’s projected benefit obligation under the SERP was $ 17.4 million (December 31, 2024 — $ 19.0 million).
+Added: For the three and nine months ended September 30, 2025, the Company recorded interest costs of $ 0.1 million and $ 0.5 million, respectively, (2024 — $ 0.2 million and $ 0.6 million, respectively) related to the SERP.
+Added: Pursuant to an amendment to his employment agreement dated July 17, 2025, the term of Mr.
+Added: Gelfond’s employment was extended through December 31, 2028.
+Added: As a result, during the three months ended September 30, 2025, the Company recorded an actuarial gain of $ 2.3 million as a component of Other Comprehensive (Loss) Income.
The Company expects to recognize additional interest costs of $ 0.2 million related to the SERP during the remainder of 2025.
4 unchanged sentences
Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”).
−Removed: As of June 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.5 million (December 31, 2024 — $ 0.5 million).
−Removed: For the three and six months ended June 30, 2025, the Company has recorded an expense of less than $ 0.1 million, respectively (2024 — less than $ 0.1 million, respectively) related to this plan.
+Added: As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.5 million (December 31, 2024 — $ 0.5 million).
+Added: For the three and nine months ended September 30, 2025, the Company has recorded an expense of less than $ 0.1 million, respectively (2024 — less than $ 0.1 million, respectively) related to this plan.
Postretirement Benefits – Canadian Employees
1 unchanged sentence
The Company will provide eligible participants, upon retirement, with health and welfare benefits.
−Removed: As of June 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.8 million (December 31, 2024 — $ 0.8 million).
−Removed: For the three and six months ended June 30, 2025, the Company has recorded expense of less than $ 0.1 million, respectively, (2024 — less than $ 0.1 million, respectively) related to this plan.
+Added: As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.8 million (December 31, 2024 — $ 0.8 million).
+Added: For the three and nine months ended September 30, 2025, the Company has recorded expense of less than $ 0.1 million, respectively, (2024 — less than $ 0.1 million, respectively) related to this plan.
Deferred Compensation Benefit Plan
1 unchanged sentence
Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein).
−Removed: As of June 30, 2025, the benefit obligation related to the Retirement Plan was $ 4.3 million (December 31, 2024 — $ 4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.
−Removed: As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.
+Added: As of September 30, 2025, the benefit obligation related to the Retirement Plan was $ 4.4 million (December 31, 2024 — $ 4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.
+Added: As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future
+Added: with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.
The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses.
−Removed: As of June 30, 2025, fair value of the COLI asset was $ 3.7 million (December 31, 2024 — $ 3.6 million).
+Added: As of September 30, 2025, fair value of the COLI asset was $ 3.7 million (December 31, 2024 — $ 3.6 million).
Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.
2 unchanged sentences
The Company’s cash is invested with various major financial institutions.
−Removed: The Company’s $ 109.3 million balance of cash and cash equivalents as of June 30, 2025 (December 31, 2024 — $ 100.6 million) included $ 100.9 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 61.5 million was held in the People’s Republic of China (“PRC”) (December 31, 2024 — $ 47.5 million).
+Added: The Company’s $ 143.1 million balance of cash and cash equivalents as of September 30, 2025 (December 31, 2024 — $ 100.6 million) included $ 129.8 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 85.8 million was held in the PRC (December 31, 2024 — $ 47.5 million).
Fair Value Measurements
1 unchanged sentence
Including these instruments, the Company’s financial instruments consisted of the following:
−Removed: As of June 30, 2025
+Added: As of September 30, 2025
As of December 31, 2024
14 unchanged sentences
The Company is exposed to market risk from changes in foreign currency rates.
−Removed: A majority of the Company’s revenues is denominated in U.S.
−Removed: Dollars while a significant portion of its costs and expenses is denominated in Canadian Dollars.
+Added: A majority of the Company’s revenues are denominated in U.S.
+Added: Dollars while a significant portion of its costs and expenses are denominated in Canadian Dollars.
A portion of the Company’s net U.S.
9 unchanged sentences
The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies.
−Removed: Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of June 30, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026.
+Added: Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of September 30, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026.
Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value.
5 unchanged sentences
Notional value of derivatives in foreign exchange contracts:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(In thousands of U.S.
3 unchanged sentences
Fair value of derivatives in foreign exchange contracts:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(In thousands of U.S.
6 unchanged sentences
Derivatives in foreign currency hedging relationships are as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands of U.S.
1 unchanged sentence
Foreign exchange contracts — Forwards
−Removed: Derivative Gain (Loss)
−Removed: Recognized in OCI
+Added: Derivative (Loss) Gain Recognized in OCI
(Effective Portion)
$ ( 1,223 ) $ 337 $ 582 $ ( 944 )
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
(In thousands of U.S.
7 unchanged sentences
$ ( 120 ) $ ( 162 ) $ ( 1,747 ) $ ( 240 )
−Removed: The Company’s estimated net amount of the existing gain as of June 30, 2025 is $ 1.4 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.
+Added: The Company’s estimated net amount of the existing gain as of September 30, 2025 is $ 0.3 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.
Non-Controlling Interests
IMAX China Non-Controlling Interest
−Removed: As of June 30, 2025, t he Company indirectly owned 71.72 % of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40 %).
+Added: As of September 30, 2025, t he Company indirectly owned 71.72 % of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40 %).
IMAX China remains a consolidated subsidiary of the Company.
−Removed: As of June 30, 2025, the balance of the Company’s non-controlling interest in IMAX China was $ 84.0 million (December 31, 2024 — $ 78.1 million).
−Removed: For the three and six months ended June 30, 2025, the net income attributable to the non-controlling interest in IMAX China is $ 1.0 million and $ 6.8 million, respectively (2024 — $ 1.5 million and $ 3.6 million, respectively).
+Added: As of September 30, 2025, the balance of the Company’s non-controlling interest in IMAX China was $ 86.5 million (December 31, 2024 — $ 78.1 million).
+Added: For the three and nine months ended September 30, 2025, the net income attributable to the non-controlling interest in IMAX China was $ 1.9 million and $ 8.7 million, respectively (2024 — $ 1.4 million and $ 5.1 million, respectively).
Restructuring and Other Charges
−Removed: In the three and six months ended June 30, 2025, the Company incurred $ 0.8 million for each such period (2024 — $ nil during each such period) in Restructuring and other charges in the Consolidated Statements of Operations.
−Removed: These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure.
−Removed: Specifically, the Company incurred $ 0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize
−Removed: certain operational roles.
−Removed: Additionally, the Company incurred $ 0.3 million of non-recurring fees relating to the 2024 internal asset sale.
−Removed: As of June 30, 2025, the Company’s liability was $ 1.4 million (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.
+Added: In the three and nine months ended September 30, 2025, the Company incurred $ nil and $ 0.8 million, respectively (2024 — $ nil , respectively) in Restructuring and other charges in the Condensed Consolidated Statements of Operations.
+Added: These charges reflect the Company’s ongoing strategic initiatives to streamline operations, reduce costs, and enhance organizational efficiency.
+Added: Specifically, in the nine months ended September 30, 2025, the Company incurred $ 0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles and $ 0.3 million of non-recurring fees relating to the 2024 internal asset sale as described in the 2024 Form 10-K.
+Added: As of September 30, 2025, the Company’s liability was $ 0.8 million (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.