What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-23 compared with 2025-07-24 · 253 added, 278 removed, 563 unchanged (49% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, “IMAX” or the “Company”) for the three and six months ended June 30, 2025 and 2024.

This MD&A should be read in conjunction with Note 13, “Segment Reporting,” in the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company’s audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2024 included in the Company’s 2024 Annual Report on Form 10-K (the “2024 Form 10-K”).

As of June 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China Holding, Inc.

As of September 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China Holding, Inc.

(“IMAX China”), whose shares trade on the Hong Kong Stock Exchange.

IMAX China is a consolidated subsidiary of the Company.

For the six months ended June 30, 2025, net income attributable to IMAX China is $23.7 million, of which $17.0 million is attributable to the shareholders of the Company (2024 — $12.8 million and $9.1 million, respectively).

For the nine months ended September 30, 2025, net income attributable to IMAX China was $30.5 million, of which $21.9 million was attributable to the shareholders of the Company (2024 — $17.7 million and $12.7 million, respectively).

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

1 unchanged sentence

Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws.

These forward-looking statements include, but are not limited to, statements regarding business and technology strategies and measures to implement strategies, statements about the Company’s belief and expectations, competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for, expansion and growth of business, network, operations and technology, future capital expenditures (including the amount and nature thereof), the Company’s technological capabilities and the differentiation thereof, brand equity and brand awareness and the benefits thereof, industry prospects and consumer behavior, future industry developments, including expected releases and the timing and effects thereof, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results, including its box office guidance for 2025.

These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances.

5 unchanged sentences

the performance of IMAX remastered films and other films released to the IMAX network;

the signing of IMAX System agreements;

the signing of IMAX theater system agreements;

conditions, changes and developments in the commercial exhibition industry;

24 unchanged sentences

The forward-looking statements herein are made only as of the date hereof and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

IMAX ® , IMAX 3D ® , Experience It In IMAX ® , The IMAX Experience ® , DMR ® , Filmed For IMAX ® , IMAX Live ® , IMAX Enhanced ® and IMAX StreamSmart TM are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions.

IMAX ® , IMAX ® 3D, Experience It In IMAX ® , The IMAX Experience ® , DMR ® , Filmed For IMAX ® , IMAX Live ® , IMAX Enhanced ® and IMAX StreamSmart ® are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions.

The Company makes available, free of charge, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to such reports, as soon as reasonably practicable after such filings have been made with the SEC and Canadian securities regulators.

5 unchanged sentences

All references to the Company’s website are intended to be inactive textual references only.

IMAX Corporation (together with its consolidated subsidiaries, the “Company” or “IMAX”) is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp.

and the former IMAX Corporation (“Predecessor IMAX”).

Predecessor IMAX was incorporated in 1967.

IMAX is a premier global technology platform for entertainment and events.

5 unchanged sentences

and IMAX events and experiences in emerging verticals, including music, gaming, and sports.

The Company leverages its proprietary technology and engineering in all aspects of its business, which principally consists of the digital remastering of films and other content into the IMAX format for distribution across the IMAX network (“IMAX Film Remastering”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”).

The Company leverages its proprietary technology and engineering in its business, which principally consists of the digital remastering of films and other content into the IMAX format for distribution across the IMAX network (“IMAX Film Remastering”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”).

IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history.

2 unchanged sentences

IMAX has the largest global premium format network, more than double the size of its nearest competitor.

As of June 30, 2025, there were 1,821 IMAX Systems in 89 countries and territories, including 1,750 commercial multiplexes, 11 commercial destinations, and 60 institutional locations in the Company’s global network.

This compares to 1,780 IMAX Systems in 89 countries and territories as of June 30, 2024, including 1,705 commercial multiplexes, 12 commercial destinations, and 63 institutional locations in the Company’s global network.

As of September 30, 2025, there were 1,829 IMAX Systems in 89 countries and territories, including 1,759 commercial multiplexes, 10 commercial destinations, and 60 institutional locations in the Company’s global network.

This compares to 1,788 IMAX Systems in 89 countries and territories as of September 30, 2024, including 1,714 commercial multiplexes, 12 commercial destinations, and 62 institutional locations in the Company’s global network.

Refer to the table under “IMAX Network and Backlog” for additional information on the composition of the IMAX network.

2 unchanged sentences

• advanced, high-resolution projectors with specialized equipment and automated theater control systems, which generate significantly more contrast and brightness than conventional theater systems;

• large screens and proprietary auditorium geometry, which result in a substantially larger field of view so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images;

• advanced sound system components, which deliver more expansive sound imagery and pinpointed origination of sound to any specific spot in an auditorium equipped with an IMAX System;

• specialized theater acoustics, which result in a four-fold reduction in background noise than conventional cinema experiences;

• large screens and proprietary auditorium geometry, which result in a substantially larger field of view than conventional theatre systems so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images;

• advanced sound system components, which deliver more expansive sound imagery than conventional theatre systems and pinpointed origination of sound to any specific spot in an auditorium equipped with an IMAX System;

• specialized theater acoustics, which result in a four-fold reduction in background noise compared to conventional cinema experiences;

• ongoing maintenance and extended warranty services;

1 unchanged sentence

In addition, select movies shown in the IMAX network are filmed using proprietary IMAX film cameras or IMAX certified digital cameras, which along with IMAX’s customized guidance and a workflow process, provide filmmakers enhanced and differentiated image quality and an IMAX-exclusive film aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen.

In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, delivering up to 67% more image.

The Company believes that these components cause audiences in IMAX locations to feel as if they are a part of the on-screen action, creating a more intense, immersive, and awe-inspiring experience than a conventional cinematic format.

In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, delivering up to 67% more image onto a standard IMAX movie screen.

The Company believes that these benefits enable audiences in IMAX locations to feel as if they are a part of the on-screen action, creating a more intense, immersive, and awe-inspiring experience than a conventional cinematic format.

As a result of the engineering and scientific achievements that are a hallmark of The IMAX Experience , the Company’s exhibitor customers typically charge a premium for films released in IMAX’s format versus films exhibited in their other auditoriums.

1 unchanged sentence

The incremental box office generated by IMAX films combined with IMAX’s leading global network footprint and scale has helped establish IMAX as a key premium distribution and marketing platform for Hollywood and foreign local language movie studios.

The Company achieved a box office record in the first half of 2025 of $579.2 million, including booking fees, a 24% increase over the prior year comparative period, from 54 new films and other content released during the period, highlighted by the performance of Ne Zha 2, a Chinese local language animation film, and strong performance from a number of Filmed for IMAX ® releases including three titles (“ Sinners ,” “ Mission:

Impossible - The Final Reckoning ,” and “ F1 The Movie ”) where IMAX delivered approximately 20% or more of the opening weekend domestic box office contributing to 19% second quarter year over year growth in global box office market share to 3.6%, with a footprint of less than 1% of screens.

Prior to these three titles there were only five Hollywood movies in the Company’s history where IMAX accounted for over 20% of the opening weekend’s domestic box office.

The Company achieved a box office record in the third quarter of 2025 of $367.6 million, a 50% increase over the prior year comparative period, from 37 new films and other content released during the period, highlighted by the performance of F1:

The Movie, the Company’s highest grossing Hollywood release year-to-date, achieving 15% of the film’s total worldwide box office.

The third quarter of 2025 included local language box office of $121 million (or 33% of total box office), led by Demon Slayer:

Infinity Castle with IMAX box office of $72 million.

The Company has generated over $343 million in local language box office year to date September 2025, surpassing its previous record of $243 million set in 2023.

The Company now has four releases on the year:

Sinners , Mission:

Impossible - The Final Reckoning , F1:

The Movie , and One Battle After Another, for which IMAX has generated at least 20% of the domestic opening on just over 400 North American screens.

As a premier global technology platform for entertainment and events, the Company strives to remain at the forefront of advancements in technology.

1 unchanged sentence

The Company further believes that its suite of IMAX Laser Systems is helping facilitate the next major renewal and upgrade cycle for the global IMAX network.

The Company utilizes AI for image enhancement, streaming technology, and data analysis to improve various aspects of its business.

The Company utilizes AI for image enhancement, streaming technology, and data analysis with the goal of improving various aspects of its business.

Furthermore, the Company is actively exploring other global use cases for AI to save costs and to improve its products, operations, and efficiency.

6 unchanged sentences

(i) Content Solutions, which principally includes content enhancement and distribution services, and (ii) Technology Products and Services, which principally includes the sale, lease, and maintenance of IMAX Systems.

The Company’s activities that do not meet the criteria to be considered a

reportable segment are disclosed within All Other (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

The Company’s activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

Content Solutions

1 unchanged sentence

To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiences, including music, gaming, and sports, as well as the provision of film post-production services.

Content Solutions segment results are influenced by the level of commercial success and box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the timing of documentary downstream sales, the length of play across the IMAX network, the box office share take rates under the Company’s Film Remastering and distribution arrangements, the level of marketing spend associated with the releases in the year, and fluctuations in the value of foreign currencies versus the U.S.

Film Remastering and Distribution

2 unchanged sentences

The fee earned by the Company in a typical IMAX Film Remastering and distribution arrangement averages approximately 12.5% of box office (i.e., gross box office (“GBO”) less applicable sales taxes), except for within Greater China, where the Company often receives a lower percentage of net box office due to tax.

All box office results in this report are inclusive of China booking fees.

IMAX Film Remastering digitally enhances the image quality and/or resolution for projection on IMAX screens while maintaining or enhancing the visual clarity and sound quality to levels for which The IMAX Experience is known.

7 unchanged sentences

The Company’s Filmed For IMAX ® program enables filmmakers to craft films from their inception to optimize The IMAX Experience and provides incremental and bespoke marketing support.

The box office metrics demonstrate audiences respond extremely favorable to Filmed For IMAX ® titles, resulting in a higher market share for IMAX.

The box office metrics have demonstrated audiences respond extremely favorably to Filmed For IMAX ® titles, resulting in a higher market share for IMAX.

In 2025, Filmed for IMAX titles have indexed almost 20% higher than titles with no IMAX DNA.

Management believes that growth in international box office represents an important growth opportunity for the Company.

1 unchanged sentence

As the popularity of local language films has continued to increase, the Company has extended its content strategy to distribute local language content beyond native markets.

For the first six months in 2025, local language films exhibited across the Company’s global network generated over $222 million in box office, representing 38% of the Company’s global box office, including the Chinese local language film, Ne Zha 2 , which became the highest grossing IMAX release of all time in China.

The following table provides the number of new films and other content that were released to the Company’s global network during the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

For the three and nine months ended September 30, 2025, local language films exhibited across the Company’s global network generated $120 million and $343 million, respectively, in box office, representing 33% and 36%, respectively, of the Company’s global box office, including the Chinese local language film, Ne Zha 2 , which became the highest grossing IMAX release of all time in China, and Japanese local language film, Demon Slayer:

Infinity Castle, which became the highest grossing IMAX release of all time in Japan.

The following table provides the number of new films and other content that were released to the Company’s global network during the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

2 unchanged sentences

China 12 10 22 18

South Korea 2 2 4 3

Japan 4 4 8 12

South Korea 2 2 6 5

India 1 3 7 7

Saudi Arabia 1 — 1 —

Egypt 1 — 1 —

France — — 2 —

Vietnam 1 — 2 —

Thailand 1 1 1 1

Germany 1 — 1 —

France — — 2 —

Indonesia — — 1 1

Egypt — — 1 —

Saudi Arabia — — 1 —

Malaysia — 1 — 1

Total local language film releases

Other Content Solutions

2 unchanged sentences

In 2025, the Company released the institutional 3D version of Blue Angels across select IMAX locations in North America, Europe, and Australia.

Upcoming documentaries, which are currently in production, include The Lost Wolves of Yellowstone , which is expected to be released in 2025.

Stormbound , a feature documentary produced by Academy Award-winning producer, Adam McKay, Patrouille de France and The Elephant Odyssey , a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, are expected to be released in 2026.

Upcoming documentaries, which are currently in production, include The Lost Wolves of Yellowstone , in collaboration with Grizzly Creek Films LLC , which is expected to be released in 2026.

Other feature documentary films expected to be released in 2026 include Stormbound produced by Academy Award-winning producer, Adam McKay;

Frontier produced in collaboration with Nocturnal Entertainment Productions, LLC, Atlas Entertainment LL, and Believe Entertainment Group, LLC;

and French language Athos produced by Federation Studio France.

The Elephant Odyssey , a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, is expected to be released in 2027.

The Company continues to believe that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries.

The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company.

As of June 30, 2025, the Company had distribution rights with respect to approximately 65 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

As of September 30, 2025, the Company had distribution rights with respect to approximately 65 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide.

As of June 30, 2025, the Company had a footprint of 266 connected locations in the IMAX network across North America, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.

In the six months ended June 30, 2025, the Company partnered with Sony Pictures for the exclusive release of Becoming Led Zeppelin, Magnolia Pictures for the exclusive release of One to One:

As of September 30, 2025, the Company had a footprint of 253 connected locations in the IMAX network across North America, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.

In the third quarter, the Company had several releases which included one-night-only concert event Dead & Company Live in IMAX From Golden Gate Park with Los Muertos, The Grateful Dead Movie 2025 Meet-Up and David Gilmour Live at the Circus Maximus, Rome with Trafalgar Releasing, and Girl Climber with Red Bull Studios.

In collaboration with Runway AI, Inc, Runway’s 2025 AI Film Festival was released across ten North American IMAX locations.

The Company partnered with Mercury Studios for the release of Prince - Sign O’ The Times and Bleecker Street for the release of Spinal Tap II:

The End Continues, including a live Q&A event.

In the nine months ended September 30, 2025, in addition to the third quarter releases noted, the Company partnered with Sony Pictures for the exclusive release of Becoming Led Zeppelin, Magnolia Pictures for the exclusive release of One to One:

John & Yoko and Trafalgar Releasing for the exclusive release of Pink Floyd at Pompeii - MCMLXXII, NBC Universal for the SNL50 The Homecoming Concert in select IMAX North American locations and DAZN for the PSG v Marseille Le Classique Match in select IMAX locations across France.

7 unchanged sentences

To a lesser extent, the Technology Products and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX Systems parts and 3D glasses.

The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, and lease payments tied to the box office performance of the films released to the IMAX network, as well as the associated maintenance contracts that accompany each installation.

The average revenue and gross margin per IMAX System under sale and sales-type lease arrangements vary depending upon the number of IMAX System commitments with a single respective exhibitor, an exhibitor’s location, the type of IMAX System sold, and various other factors.

The installation of IMAX Systems in theaters or multiplexes, which make up a large portion of the Company’s system backlog, depends primarily on the timing of the construction of those projects, which is not under the Company’s control.

Sales and Sales-Type Lease Arrangements

13 unchanged sentences

Joint Revenue Sharing Arrangements

The Company provides IMAX Systems to exhibitors through joint revenue sharing arrangements (“JRSAs”).

The Company also provides IMAX Systems to exhibitors through joint revenue sharing arrangements (“JRSAs”).

Under the traditional form of these arrangements, the Company provides the IMAX System under a long-term lease in which the Company assumes the majority of the equipment and installation costs.

14 unchanged sentences

The Company funds its investment in equipment for JRSAs through cash flows from operations.

As of June 30, 2025, the Company had 899 locations under JRSAs in its global commercial multiplex network.

The Company also had contracts in backlog for 336 systems under JRSAs as of June 30, 2025, including 138 upgrades to existing locations and 198 new locations.

As of September 30, 2025, the Company had 905 locations under JRSAs in its global commercial multiplex network.

The Company also had contracts in backlog for 321 systems under JRSAs as of September 30, 2025, including 126 upgrades to existing locations and 195 new locations.

IMAX Maintenance

IMAX System arrangements also include a requirement for the Company to provide maintenance services over the life of the arrangement in exchange for an extended warranty and annual maintenance fee paid by the exhibitor.

Under these arrangements, the Company provides preventative and emergency maintenance services to ensure that each presentation is up to the highest IMAX quality standard.

Under these arrangements, the Company provides preventative and emergency maintenance services to ensure that each presentation is up to IMAX quality standards.

Annual maintenance fees are paid throughout the duration of the term of the system agreements.

IMAX Enhanced | Streaming and Consumer Technology

IMAX’s Streaming and Consumer Technology (“SCT”) segment now offers a single unified program:

IMAX’s Streaming and Consumer Technology (“SCT”) business offers a single unified program:

IMAX Enhanced.

This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver The IMAX Experience to fans across streaming platforms and consumer devices.

This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver The IMAX Experience to users across streaming platforms and consumer devices.

The new ‘IMAX Enhanced’ program for partners includes three core elements:

3 unchanged sentences

Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience.

IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video.

Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video.

Device Certification & Calibration:

Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks.

It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows is maintained faithfully and experienced as intended on consumer devices.

As of June 30, 2025, over 15 million IMAX Enhanced certified devices are in-market with partners including Sony Electronics, Hisense, TCL, LG, and Philips.

The SCT products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have now been fully streamlined and integrated into the IMAX Enhanced program, improving operational efficiency, reducing overhead, and enabling partners to deliver differentiated, premium, and monetizable viewing experiences validated through IMAX’s proprietary approach to visual quality.

IMAX’s Streaming and Consumer Technology is part of the Company’s next evolutionary step to extend the IMAX brand and technology into new use cases and programming, including live events, series, and fully leveraging consumer electronics to deliver premium experiences for fans at home.

It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained faithfully and experienced as intended on consumer devices.

As of September 30, 2025, over 15 million IMAX Enhanced certified devices are in-market with partners, including Sony Electronics, Hisense, TCL, LG, and Philips.

IMAX’s Streaming and Consumer Technology is part of the Company’s next evolutionary step to extend the IMAX brand and technology into new use cases and programming, including live events, series, and leveraging consumer electronics to deliver premium experiences for users at home.

The products branded as StreamSmart ® (encoding optimization) and StreamAware™ (quality assurance and monitoring) have now been streamlined to improve operational efficiency, reduce overhead, and enable partners to deliver differentiated, premium, and monetizable viewing experiences validated through IMAX’s proprietary approach to visual quality.

All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California;

3 unchanged sentences

IMAX NETWORK AND BACKLOG

The following table provides detailed information about the IMAX network by type and geographic location as of June 30, 2025 and 2024.

The following table provides detailed information about the IMAX network by type and geographic location as of September 30, 2025 and 2024.

For additional information regarding the composition of the IMAX network, see “Marketing and Customers” in Part I, Item 1 of the Company’s 2024 Form 10-K.

June 30, 2025 June 30, 2024

September 30, 2025 September 30, 2024

Institutional

18 unchanged sentences

(See “Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows,” and “Risk Factors – General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems” in Part I, Item 1A of the Company’s 2024 Form 10-K.)

IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations, of which there are 1,750 IMAX Systems operating as of June 30, 2025, representing a market penetration of only 48%.

IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations (last updated in 2023), of which there are 1,759 IMAX Systems operating as of September 30, 2025, representing a market penetration of only 49%.

The Company believes that the majority of its future growth will come from international markets.

As of June 30, 2025, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada).

Revenues and GBO derived from international markets continue to exceed revenues and GBO from the United States and Canada.

As of September 30, 2025, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada).

Revenues and GBO derived from international markets continue to exceed revenues and GBO

from the United States and Canada.

Risks associated with the Company’s international business are outlined in “Risk Factors – The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales and future growth prospects” in Part I, Item 1A of the Company’s 2024 Form 10-K.

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of June 30, 2025 and 2024:

June 30, 2025

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of September 30, 2025 and 2024:

September 30, 2025

Commercial Multiplex Locations in IMAX Network

15 unchanged sentences

(2) Period-to-period changes in the tables above are reported net of permanently closed locations.

June 30, 2024

September 30, 2024

Commercial Multiplex Locations in IMAX Network

15 unchanged sentences

(2) Period-to-period changes in the tables above are reported net of permanently closed systems.

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of June 30, 2025 and 2024:

June 30, 2025

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of September 30, 2025 and 2024:

September 30, 2025

IMAX System Backlog

13 unchanged sentences

(3) Worldwide Total of 478 includes 341 new system backlog and 137 upgrade system backlog.

June 30, 2024

September 30, 2024

IMAX System Backlog

18 unchanged sentences

Current backlog information reflects all known elections.

Approximately 74% of IMAX System arrangements in backlog as of June 30, 2025 are scheduled to be installed in international markets (2024 — 82%).

Approximately 74% of IMAX System arrangements in backlog as of September 30, 2025 were scheduled to be installed in international markets (2024 — 85%).

(See “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A of the Company’s 2024 Form 10-K.)

Signings and Installations

The following tables provide detailed information about IMAX System signings and installations for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

The following tables provide detailed information about IMAX System signings and installations for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

3 unchanged sentences

Total IMAX System signings (2)

19 16 142 111

(1) Includes Sales and Sales-Type Lease deal types.

(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).

Three Months Ended Six Months Ended

June 30, June 30,

(2) Includes one and 61 IMAX System upgrades for the three and nine months ended September 30, 2025, respectively (2024 ― one and 69 upgrades, respectively).

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

3 unchanged sentences

Total IMAX System installations (3)

(1) Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively).

(1) Two and five IMAX Systems were relocated from their original location for the three and nine months ended September 30, 2025, respectively (2024 ― two and four relocations, respectively).

When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale.

1 unchanged sentence

(2) Includes Sales and Sales-Type Lease deal types.

(3) Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).

(3) Includes 15 and 40 IMAX System upgrades for the three and nine months ended September 30, 2025, respectively (2024 ― 32 and 43 upgrades, respectively).

RESULTS OF OPERATIONS

The Company’s business and future prospects are evaluated by Richard L.

Gelfond, its Chief Executive Officer (“CEO”), using a variety of factors and financial and operational metrics, including:

(i) IMAX box office performance and the securing of new IMAX films and alternative content to be exhibited across the IMAX network;

(ii) the signing, installation, and financial performance of IMAX System arrangements;

(iii) the success of the Company’s investments in business evolution and brand extensions into streaming and consumer technology;

(iv) revenues and gross margins earned by the Company’s segments;

(v) consolidated earnings (loss) from operations, as adjusted for unusual items;

(vi) the continuing ability to invest in and improve the Company’s technology to enhance the differentiation of The IMAX Experience versus other out-of-home experiences;

(vii) the overall execution, reliability, and consumer acceptance of The IMAX Experience ;

and (viii) short- and long-term cash flow projections.

Results of Operations for the Three Months Ended June 30, 2025 and 2024

Results of Operations for the Three Months Ended September 30, 2025 and 2024

Net Income and Adjusted Net Income Attributable to Common Shareholders

The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,

Three Months Ended September 30,

(In thousands of U.S.

8 unchanged sentences

Revenues and Gross Margin

During the three months ended June 30, 2025, the Company’s revenues and gross margin increased by $2.7 million, or 3%, and $9.7 million, or 22%, respectively, when compared to same period in 2024 principally due to a higher number of installations and stronger IMAX box office performance driven by the Hollywood film slate.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the three months ended June 30, 2025 and 2024:

During the three months ended September 30, 2025, the Company’s revenues and gross margin increased by $15.2 million, or 17%, and $16.3 million, or 32%, respectively, when compared to same period in 2024 principally due to stronger global IMAX box office performance.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the three months ended September 30, 2025 and 2024:

Revenue Gross Margin Gross Margin %

12 unchanged sentences

Content Solutions

For the three months ended June 30, 2025, Content Solutions segment revenues and gross margin decreased by $1.1 million, or 3%, and increased by $6.3 million, or 39%, respectively, when compared to the same period in 2024.

The decrease in revenue compared to the prior period was primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels , to Amazon Content in the second quarter of 2024.

The documentary sale impact on revenue was mostly offset in the second quarter of 2025 by stronger IMAX box office performance year over year.

In the second quarter of 2025, box office generated by IMAX films, including booking fees, totaled $281.1 million, an $81.3 million, or 41% increase versus the prior year comparative period of $199.8 million.

The growth was primarily driven by the stronger IMAX box office performance of the IMAX Hollywood film slate during the quarter, compared to the second quarter of 2024 box office performance which had fewer large blockbusters due to the Hollywood strikes.

In the second quarter of 2025, IMAX box office was generated by the exhibition of 22 films and other content (21 new films and 1 film originally released in a prior year), including the following Hollywood titles, Mission:

Impossible - The Final Reckoning ($75 million), Sinners ($40 million), F1 The Movie ($32 million) and Thunderbolts ($31 million).

In the second quarter of 2025, local language films exhibited across the Company’s global network generated $19.8 million in box office, representing 7% of its global box office.

In the second quarter of 2024, IMAX box office was generated by the exhibition of 34 films (27 new films and 7 films originally released in a prior year).

In the second quarter of 2025, the Company released six movies that were filmed with IMAX proprietary cameras (Filmed For IMAX):

Sinners , Thunderbolts , Final Destination:

Bloodlines , Mission:

Impossible - The Final Reckoning , How To Train Your Dragon and F1 The Movie .

Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for three of these films ( Sinners , Mission:

Impossible - The Final Reckoning and F1 The Movie ), IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

For the three months ended September 30, 2025, Content Solutions segment revenues and gross margin increased by $14.7 million, or 49%, and increased by $15.5 million, or 94%, respectively, when compared to the same period in 2024.

The third quarter results were driven by record third quarter IMAX GBO as well as IMAX’s highest ever Content Solutions gross margin percentage.

In the third quarter of 2025, box office generated by IMAX films totaled $367.6 million, an $122.7 million, or 50% increase versus the prior year comparative period of $245.0 million.

The growth was driven by the stronger IMAX box office performance of the diversified global IMAX film slate during the quarter, compared to the third quarter of 2024 box office performance.

In the third quarter of 2025, IMAX box office was generated by the exhibition of 39 films (37 new films and other content and 2 films originally released in a prior year), including the following Hollywood titles:

F1 The Movie ($65 million), Superman ($57 million), and The Fantastic Four:

First Steps ($49 million).

In the third quarter of 2025, local language films exhibited across the Company’s global network generated $120.2 million in box office, representing 33% of its GBO.

The Japanese local language film, Demon Slayer:

Infinity Castle, ($72 million) became the highest grossing IMAX release of all time in Japan and set numerous opening weekend country records as it released across the IMAX global network.

In the third quarter of 2024, IMAX box office was generated by the exhibition of 44 films (37 new films and other content, and 7 films originally released in a prior year).

In the third quarter of 2025, the Company released Superman and The Fantastic Four:

First Steps which were filmed with IMAX proprietary cameras (Filmed For IMAX).

Filmed For IMAX movies traditionally result in a higher IMAX share of GBO and for the two Hollywood Filmed for IMAX films released in the three months ended September 30, 2025, IMAX generated 14.2% of the domestic opening weekend box office, despite accounting for only 1% of available screens.

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content (documentaries, live, alternative and other) exhibited in the period.

The costs associated with films and other content can include production, post-production, distribution and marketing, which are expensed as incurred.

For the three months ended June 30, 2025, gross margin percent was 66% compared to 46% in the prior year period.

The increase in gross margin was driven by higher level of IMAX box office and a lower mix of self-produced content compared to the prior period.

For the three months ended September 30, 2025, gross margin percent was 71% compared to 55% in the prior year period.

The increase in gross margin was due to the higher level of IMAX box office and the profit that incrementally ensues when individual titles generate higher levels of box office.

Technology Products and Services

The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, lease payments tied to the box office performance of the films released to the IMAX network, as well as the associated maintenance contracts that accompany each installation.

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs as revenue is recognized over the lease term, during the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, IMAX System counts exclude traditional JRSAs as revenue is recognized over the lease term, during the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

(In thousands of U.S.

6 unchanged sentences

18 $ 14,199 20 $ 20,787

For the three months ended June 30, 2025, Technology Products and Services segment revenue increased by $4.7 million, or 9%, while gross margin increased by $4.4 million, or 17%, when compared to the same period in 2024.

Included in the table above are two IMAX Systems that were relocated from their original locations, one of which was closed in a prior period (2024 ― one IMAX System).

When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is typically lower than a new IMAX system.

In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.

For the three months ended September 30, 2025, Technology Products and Services segment revenue increased by $2.4 million, or 4%, while gross margin increased by $2.9 million, or 9%, when compared to the same period in 2024.

The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office driven.

Rental revenues increased by $5.1 million, as IMAX GBO earned from the Company’s JRSAs increased by $24.1 million in the second quarter of 2025 when compared to the prior year comparative period, from $101.0 million to $125.1 million.

Also contributing to the increase in revenue was the higher number of systems recognized under sales and sales-type lease arrangements, per the table above.

The increase in revenues described above were partially offset by a $4.7 million decrease in revenue contribution from the impact of amendments, renewals and other agreements to existing IMAX Systems arrangements.

For the three months ended June 30, 2025, gross margin percent was 54% compared to 51% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance, as described above.

For the three months ended June 30, 2025, All Other revenue and gross margin decreased by $0.9 million and $1.0 million, respectively, when compared to the same period in 2024.

All Other primarily reflects the results of the Company’s Streaming and Consumer Technology business.

Rental revenues increased by $7.0 million, as IMAX GBO earned from the Company’s JRSAs increased by $37.9 million, or 32%, in the third quarter of 2025 when compared to the prior year comparative period, from $116.7 million to $154.6 million.

Also contributing to the increase in revenue was an increase in after-market revenue, primarily from higher sales of 3D glasses, during the quarter.

The increases in revenues described above were partially offset by a $6.6 million decrease in revenue from the installation of IMAX Systems, and lower renewals versus the prior period, under sales and sales-type lease arrangements.

For the three months ended September 30, 2025, Technology Products and Services gross margin percent was 58% compared to 55% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance across the joint revenue sharing network, as described above.

For the three months ended September 30, 2025, All Other revenue and gross margin decreased by $2.0 million and $2.1 million, respectively, when compared to the same period in 2024.

All Other primarily reflects the results of the Company’s SCT business.

The decline primarily reflects the Company’s re-positioning and relaunch the SCT business, including the introduction of new branding and product offerings such as IMAX Enhanced:

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended June 30, 2025 and 2024:

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended September 30, 2025 and 2024:

Three Months Ended

June 30, Variance

September 30, Variance

(In thousands of U.S.

7 unchanged sentences

(Refer to “Capital Stock and Reserves — Share-Based Compensation” in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

For the second quarter of 2025, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions.

Additionally, in the period, the Company recognized $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.

For the third quarter of 2025, the higher level of Selling, General and Administrative Expenses year-over-year reflects higher annual performance driven incentive compensation costs and fringe benefits, partially offset by management’s continued focus on operational efficiencies.

In the prior period, the Company recorded an adjustment of $1.6 million resulting from a reduction in the SSIMWAVE acquisition performance payout as a reduction to Selling, General and Administrative expenses.

No such adjustment to reduce Selling, General and Administrative expenses was recognized in the current period.

Research and Development

For the three months ended June 30, 2025, Research and Development expenses were $1.5 million, compared to an expense of $2.0 million during the same period in the prior year.

The reduction year-over-year was primarily driven by the capitalization of film camera costs in accordance with the achievement of technological feasibility in 2024.

The Company continues to expense its investment in other projects, including in the development of new Streaming and Technology product offerings and improvements to its existing IMAX System product suite.

Credit Loss (Reversal) Expense, Net

For the three months ended June 30, 2025, the Company recorded a credit loss reversal of $0.2 million, as compared to a credit loss expense of $0.1 million recognized in the prior year.

Stronger box office performance in the year has contributed to a notable improvement in collections.

The resurgence in theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers.

This trend reflects both the sustained consumer demand for premium cinematic experiences and the effectiveness of our strategic initiatives in global distribution and exhibition.

For the three months ended September 30, 2025, Research and Development expenses were $1.5 million, compared to a net cost recovery of $0.3 million during the same period in the prior year.

The increase is primarily driven by the capitalization of costs in accordance with the achievement of technological feasibility of the Company’s new film cameras in the third quarter of 2024.

The Company continues to expense its investment in other projects, including in the development of new SCT product offerings and improvements to its existing IMAX System product suite.

Credit Loss Expense (Reversal), Net

For the three months ended September 30, 2025, the Company recorded a credit loss expense of $0.6 million, as compared to a credit loss reversal of $1.1 million recognized in the prior year.

The Company estimates credit losses based on both a historical provision rate and customer specific circumstances.

Management’s judgments regarding expected credit losses are based on the facts available to management at the time that the Condensed Consolidated Financial Statements are prepared and involve estimates about the future.

As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect.

As a result, the Company’s judgments and

associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect.

(Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

Interest Expense and Interest Income

For the three months ended June 30, 2025, interest expense was $1.9 million, representing an decrease of $0.4 million, or 16% when compared to interest expense of $2.3 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period.

For the three months ended June 30, 2025 and 2023, interest income was $1.1 million and $0.6 million, respectively.

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).

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.

During the three months ended June 30, 2024, the Company completed an internal asset sale to more closely align its intellectual property ownership with its operations.

In order to effect this internal asset sale, transactions between entities within the group resulted in capital gains for tax purposes.

The tax expense related to the capital gain was partially offset by the reversal of the valuation allowance.

Net deferred tax assets were also recorded on the transaction, resulting in a net tax benefit of $7.7 million.

For the three months ended September 30, 2025, interest expense was $1.8 million, representing a decrease of $0.4 million, or 18% when compared to interest expense of $2.2 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period.

For the three months ended September 30, 2025 and 2024, interest income was $0.6 million for each period.

For the three months ended September 30, 2025, the Company recorded an income tax expense of $5.2 million (2024 — $2.4 million).

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.

Non-Controlling Interests

For the three months ended June 30, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $1.0 million, a decrease of $0.5 million, when compared to the same period in 2024, primarily due to lower revenues recognized from sales arrangements and renewals in Greater China.

Restructuring and Other Charges

For the three months ended June 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges.

These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure.

Specifically, the Company incurred $0.5 million in connection with the continued 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.

Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

Results of Operations for the Six Months Ended June 30, 2025 and 2024

For the three months ended September 30, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $2.0 million, an increase of $0.5 million, when compared to the same period in 2024, primarily due to higher box office performance in Greater China.

Results of Operations for the Nine Months Ended September 30, 2025 and 2024

Net Income and Adjusted Net Income Attributable to Common Shareholders

The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders* and adjusted net income attributable to common shareholders per diluted share for the six months ended June 30, 2025 and 2024:

Six Months Ended June 30,

The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders* and adjusted net income attributable to common shareholders per diluted share for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

(In thousands of U.S.

8 unchanged sentences

Revenues and Gross Margin

For the six months ended June 30, 2025, the Company’s revenues and gross margin increased by $10.3 million, or 6%, and $16.0 million, or 18%, respectively, when compared to same period in 2024, principally due to a higher number of installations and stronger IMAX box office performance driven by a record Chinese New Year period and the summer Hollywood box office.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the six months ended June 30, 2025 and 2024:

For the nine months ended September 30, 2025, the Company’s revenues and gross margin increased by $25.5 million, or 10%, and $32.2 million, or 23%, respectively, when compared to same period in 2024, principally due to stronger IMAX box office performance driven by a record Chinese New Year, Filmed For IMAX, and local language film slate.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the nine months ended September 30, 2025 and 2024:

Revenue Gross Margin Gross Margin %

12 unchanged sentences

Content Solutions

For the six months ended June 30, 2025, Content Solutions segment revenues and gross margin decreased by $0.9 million, or 1%, and increased by $7.7 million, or 20%, respectively, when compared to the same period in 2024.

The decrease in revenue compared to the prior period is primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels , to Amazon Content in the first half of 2024.

The positive impact of The Blue Angels documentary in 2024 on revenue was mostly offset by higher box office generated across the IMAX network for the six months ended June 30, 2025, when compared to the prior year period.

In the six months ended June 30, 2025, box office generated by IMAX films, including booking fees, totaled $579.2 million, a $112.1 million, or 24%, increase versus the prior year comparative period of $467.2 million.

This growth was primarily driven by the stronger IMAX box office performance of the IMAX local language film slate in 2025.

During the six months ended June 30, 2025, IMAX box office was generated by the exhibition of 56 films and other content (54 new films and 2 re-releases), including the following Hollywood titles, Mission:

Impossible - The Final Reckoning ($75 million), Sinners ($39 million), F1 The Movie ($31 million) and Thunderbolts ($31 million).

In addition, in the six months ended June 30, 2025, local language films exhibited across the Company’s global network generated over $222 million in box office, representing 38% of its global box office.

The Chinese local language film, Ne Zha 2, became the highest grossing IMAX release of all time in China ($166 million, including booking fees) and contributed to the highest grossing Chinese New Year in the Company’s history.

In the six months ended June 30, 2024, IMAX box office was generated by the exhibition of 60 films (46 new films and 14 films originally released in a prior year).

In the first half of 2025, the Company released six movies that were filmed with IMAX proprietary cameras (Filmed For IMAX):

Sinners , Thunderbolts , Final Destination:

Bloodlines , Mission:

Impossible - The Final Reckoning , How To Train Your Dragon and F1 The Movie.

Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for three of these films ( Sinners , Mission:

Impossible - The Final Reckoning and F1 The Movie ), IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

For the nine months ended September 30, 2025, Content Solutions segment revenues and gross margin increased by $13.8 million, or 14%, and increased by $23.2 million, or 42%, respectively, when compared to the same period in 2024.

In the nine months ended September 30, 2025, box office generated by IMAX films totaled $946.9 million, a $234.8 million, or 33%, increase versus the prior year comparative period of $712.1 million.

This growth was primarily driven by the stronger IMAX box office performance of the IMAX Hollywood and local language film slate in 2025.

During the nine months ended September 30, 2025, IMAX box office was generated by the exhibition of 94 films and other content (91 new films and 3 films originally released in a prior year), including the following Hollywood titles:

F1 The Movie ($97 million), Mission:

Impossible - The Final Reckoning ($76 million), Superman ($57 million), The Fantastic Four:

First Steps ($49 million) and Sinners ($39 million).

In addition, in the nine months ended September 30, 2025, local language films exhibited across the Company’s global network generated $343 million in box office, representing 36% of its GBO.

The Chinese local language film, Ne Zha 2, became the highest grossing IMAX release of all time in China ($167 million) and contributed to the highest grossing Chinese New Year in the Company’s history.

The Japanese local language film, Demon Slayer:

Infinity Castle ($72 million) became the highest grossing IMAX release of all time in Japan.

In the nine months ended September 30, 2024, IMAX box office revenue was generated by the exhibition of 104 films (83 new films and 21 films originally released in a prior year).

These increases in revenue due to higher box office were partially offset by the revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels , to Amazon Content recorded in the comparative 2024 period.

In the nine months ended September 30, 2025, the Company released movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including Sinners , F1 The Movie, Mission:

Impossible - The Final Reckoning , Superman, and The Fantastic Four:

Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for four of these films, IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

In the nine months ended September 30, 2025, Filmed For IMAX domestic opening weekend indexing was 15.3% compared to 13.6% in the same period of 2024.

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content exhibited in the period.

These costs can include production, post-production, distribution, and marketing, which are expensed as incurred.

For the six months ended June 30, 2025, gross margin percent was 67% compared to 55% in the prior quarter period.

This increase was driven by a higher level of IMAX box office, a lower mix of self-produced content expensed compared to the prior period.

For the nine months ended September 30, 2025, gross margin percent was 69% compared to 55% in the prior period.

This increase was driven by a higher level of IMAX box office and a lower mix of self-produced content expensed compared to the prior period.

Technology Products and Services

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional joint revenue sharing arrangements as revenue is recognized over the lease term, during the six months ended June 30, 2025 and 2024:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands of U.S.

5 unchanged sentences

Total 44 $ 37,867 36 $ 36,601

Included in the table above are three IMAX Systems that were relocated from their original locations (2024 ― two IMAX Systems).

Included in the table above are five IMAX Systems that were relocated from their original locations (2024 ― four IMAX Systems).

When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is usually less than the amount earned for a new sale.

In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.

For the six months ended June 30, 2025, Technology Products and Services segment revenue and gross margin increased by $12.2 million, or 13%, and $9.9 million, or 20%, respectively, when compared to the same period in the prior year.

The higher level of

revenue is primarily driven by a higher level of rental revenues, which is box office dependent.

Rental revenues increased by $5.2 million, driven by IMAX GBO from joint revenue sharing arrangements which increased by $38.8 million in the six months ended June 30, 2025 when compared to the prior year comparative period, from $226.4 million to $265.2 million.

Also contributing to the increase in revenue was the number of systems recognized under sales and sales-type lease arrangements, per the table above.

For the nine months ended September 30, 2025, Technology Products and Services segment revenue and gross margin increased by $14.6 million, or 10%, and $12.8 million, or 16%, respectively, when compared to the same period in the prior year.

The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office dependent.

Rental revenues increased by $12.3 million, driven by IMAX GBO from joint revenue sharing arrangements which increased by $95.5 million in the nine months ended September 30, 2025 when compared to the prior year comparative period, from $324.3 million to $419.8 million.

Also contributing to the increase in revenue was an increase in after-market revenue, primarily from higher sales of 3D glasses, and the number of systems recognized under sales and sales-type lease arrangements, per the table above.

The increases in revenue were partially offset by a $7.7 million decrease in revenue contribution from the impact of amendments, renewals and other agreements to existing IMAX Systems arrangements.

For the six months ended June 30, 2025, gross margin percent was 56% compared to 52% in the prior period, which primarily reflects the higher level of revenues, as described above.

For the six months ended June 30, 2025, All Other revenue and gross margin decreased by $1.0 million, and $1.7 million, respectively, when compared to the same period in 2024.

All Other primarily reflects the results of the Company’s Streaming and Consumer Technology business.

For the nine months ended September 30, 2025, gross margin percent was 56% compared to 54% in the same period in the prior year, which primarily reflects the higher level of revenues as described above.

For the nine months ended September 30, 2025, All Other revenue and gross margin decreased by $3.0 million, and $3.8 million, respectively, when compared to the same period in 2024.

All Other primarily reflects the results of the Company’s SCT business.

The decline primarily reflects the Company’s re-positioning and relaunch of the SCT business, including the introduction of new branding and product offerings such as IMAX Enhanced:

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the six months ended June 30, 2025 and 2024:

Six Months Ended

June 30, Variance

The following table presents information about the Company’s Selling, General and Administrative Expenses for the nine months ended September 30, 2025 and 2024:

Nine Months Ended

September 30, Variance

(In thousands of U.S.

8 unchanged sentences

(2) See “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.

For the six months ended June 30, 2025, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions.

For the nine months ended September 30, 2025, the higher level of Selling, General and Administrative Expenses year-over-year reflects higher annual, performance driven incentive compensation costs and fringe benefits, partially offset by management’s continued focus on operational efficiencies, including workforce reductions.

Additionally, in the period, the Company recognized $2.6 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offsetting the higher costs.

Also impacting the prior period, the Company recorded adjustments relating to payouts in connection with a prior year acquisition as a reduction to Selling, General and Administrative expenses.

Research and Development

For the six months ended June 30, 2025, Research and Development expenses were $2.9 million, representing a decrease of $1.4 million, or 32%, when compared to Research and Development expenses of $4.2 million during the same period in the prior year.

The reduction year-over-year was primarily driven by the capitalization of film camera costs in accordance with the achievement of technological feasibility in 2024.

For the nine months ended September 30, 2025, Research and Development expenses were $4.4 million, representing an increase of $0.4 million, or 10%, when compared to Research and Development expenses of $4.0 million during the same period in the prior year.

The increase year-over-year was primarily driven by the capitalization of costs in accordance with the achievement of technological feasibility of the Company’s new film cameras in 2024.

Credit Loss (Reversal) Expense, Net

For the six months ended June 30, 2025, the Company recorded a credit loss reversal of $0.3 million, as compared to a credit loss expense of $0.2 million recognized in the prior year.

Stronger box office performance in the year has contributed to a notable improvement in collections.

The resurgence in theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers.

This trend reflects both the sustained consumer demand for premium cinematic experiences and the effectiveness of our strategic initiatives in global distribution and exhibition.

Credit Loss Expense (Reversal), Net

For the nine months ended September 30, 2025, the Company recorded a credit loss expense of $0.3 million, as compared to a credit loss reversal of $1.0 million recognized in the prior year.

The Company estimates credit losses based on both a historical provision rate and customer specific circumstances.

2 unchanged sentences

Interest Expense and Interest Income

For the six months ended June 30, 2025, interest expense was $3.7 million, representing a decrease of $0.5 million, or 12%, as compared to $4.2 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period.

For the six months ended June 30, 2025 and 2024, interest income was $1.7 million and $1.1 million, respectively.

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).

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.

For the nine months ended September 30, 2025, interest expense was $5.6 million, representing a decrease of $0.9 million, or 14%, as compared to $6.5 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period.

For the nine months ended September 30, 2025 and 2024, interest income was $2.2 million and $1.7 million, respectively.

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).

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.

Non-Controlling Interests

For the six months ended June 30, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $6.8 million, an increase of $3.2 million, when compared to the same period in 2024, which reflects a higher level of IMAX box office earned in Greater China.

For the nine months ended September 30, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $8.8 million, an increase of $3.7 million, when compared to the same period in 2024, which reflects a higher level of IMAX box office earned in Greater China.

Restructuring and Other Charges

For the six months ended June 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges.

For the nine months ended September 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges.

These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure.

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 certain operational roles.

Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

The discussion below summarizes our cash flows from operating, investing, and financing activities as reflected in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024.

Six Months Ended

Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale described in the 2024 Form 10-K.

CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

Nine Months Ended

(In thousands of U.S.

6 unchanged sentences

Financing activities

(20,381) (951)

Effect of exchange rate changes on cash

1 unchanged sentence

$ 42,514 $ 28,304

Net cash provided by the Company’s operating activities increased $6.1 million in the six months ended June 30, 2025, compared to the corresponding prior year period, primarily due to an increase in the net income earned in the current period.

This increase was partially offset by an decrease in cash provided by working capital expenditures.

(Refer to Note 9 to Condensed Consolidated Financial Statements in Item 1.

Net cash provided by the Company’s operating activities increased $38.3 million in the nine months ended September 30, 2025, when compared to the same period in 2024, primarily due to an increase in the net income earned in the current period and a net increase in working capital (Refer to Note 9 to Condensed Consolidated Financial Statements in Item 1.

for more information on the Company’s change in other operating assets and liabilities.)

Net cash used in investing activities increased $6.4 million in the six months ended June 30, 2025, compared to the corresponding prior year period, primarily due to an increase in the level of investment in equipment contributed to the Company’s JRSAs with exhibitor customers and capital expenditures.

In the six months ended June 30, 2025, the Company installed 31 systems under JRSAs compared to 23 systems in the prior year comparative period.

Net cash provided by financing activities decreased $6.1 million in the six months ended June 30, 2025, compared to the corresponding prior year period, mainly driven by a decrease in net borrowings under the revolving credit facilities, an increase in cash paid for taxes withheld on employee stock awards vested, offset by a decease in share repurchases.

Net cash used in investing activities increased $4.4 million in the nine months ended September 30, 2025, when compared to the same period in 2024, which reflects an increase in the level of investment in equipment contributed to the Company’s JRSAs with exhibitor customers and general corporate capital expenditures.

Net cash used in financing activities increased $19.4 million in the nine months ended September 30, 2025, when compared to the same period in 2024, mainly driven by a decrease in net borrowings under the revolving credit facilities, an increase in cash paid for taxes withheld on employee stock awards that vested at a higher market price, offset by a decrease in cash outlay for share purchases.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2025, the Company’s principal sources of liquidity included:

As of September 30, 2025, the Company’s principal sources of liquidity included:

(i) its balances of cash and cash equivalents of $143.1 million;

3 unchanged sentences

Under the terms of the Company’s typical sale and sales-type lease agreements, the Company receives substantial cash payments before it completes the performance of its contractual obligations.

In addition, as of June 30, 2025, the Company had $252.0 million in available borrowing capacity under its Sixth Amended and Restated Credit Agreement (the “Credit Agreement”), $26.5 million in available borrowing capacity under the IMAX (Shanghai) Multimedia Technology Co., Ltd.

(“IMAX Shanghai”) revolving credit facility with the Bank of China (the “Bank of China Facility”), and $27.9 million in available borrowing capacity under IMAX Shanghai’s revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the “HSBC China Facility”).

On July 14, 2025, the Company entered into the New Credit Agreement, which increases the Company’s borrowing capacity to $375.0 million.

(Refer to “Borrowings — Revolving Credit Facility Borrowings, Net” in Note 6 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a description of the material terms of the Credit Agreement, the Bank of China Facility, and the HSBC Facility.)

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 (the “PRC”) (December 31, 2024 — $47.5 million).

In addition, as of September 30, 2025, the Company had $346.0 million in available borrowing capacity under its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), $26.7 million in available borrowing capacity under the IMAX Shanghai revolving credit facility with the Bank of China (the “Bank of China Facility”), and $28.1 million in available borrowing capacity under IMAX Shanghai’s revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the “HSBC China Facility”).

Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 6 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.

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 People’s Republic of China (the “PRC”) (December 31, 2024 — $47.5 million).

Management reassessed its strategy with respect to the most efficient means of deploying the Company’s capital resources globally and determined that historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested.

During the six months ended June 30, 2025, no historical earnings from a subsidiary in the PRC were distributed (2024 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2024 — $nil).

As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheets included a deferred tax liability of $12.5 million for the applicable foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

During the nine months ended September 30, 2025, no historical earnings from a subsidiary in the PRC were distributed (2024 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2024 — $nil).

As of September 30, 2025, the Company’s Condensed Consolidated Balance Sheets included a deferred tax liability of $12.5 million for the applicable foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

These taxes will become payable upon the repatriation of any such earnings.

4 unchanged sentences

The Company also has certain significant contractual obligations and commitments that have been disclosed in “Contractual Obligations” in Part II, Item 7 of the Company’s 2024 Form 10-K.

There are no material changes to these obligations and commitments as of June 30, 2025.

There are no material changes to these obligations and commitments as of September 30, 2025.

Based on the Company’s current cash balances and operating cash flows, management expects to have sufficient capital and liquidity to fund its anticipated operating needs and capital requirements during the next twelve-month period following the date of this report.

6 unchanged sentences

Actual results may ultimately differ from the Company’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material.

For more information on the Company’s critical accounting estimates

refer to the section entitled “Critical Accounting Estimates” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 Form 10-K.

For more information on the Company’s critical accounting estimates refer to the section entitled “Critical Accounting Estimates” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 Form 10-K.

RECENTLY ISSUED ACCOUNTING STANDARDS

16 unchanged sentences

Reconciliations of net income attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share are presented in the tables below.

Three Months Ended June 30,

Three Months Ended September 30,

(In thousands of U.S.

9 unchanged sentences

(34) — (32) —

Restructuring and other charges

Employee retention credits

(3,827) (0.07) — —

Tax impact on items listed above

7 unchanged sentences

(1) Reflects amounts attributable to common shareholders.

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands of U.S.

36 unchanged sentences

(In thousands of U.S.

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Reported net income

6 unchanged sentences

Share-based and other non-cash compensation

Unrealized investment gains

Restructuring and other charges 786

Unrealized investment (gains) losses

Write-downs, including asset impairments and credit loss expense

4 unchanged sentences

(In thousands of U.S.

Dollars) Twelve Months Ended June 30, 2025

Dollars) Twelve Months Ended September 30, 2025

Reported net income

18 unchanged sentences

Three Months Ended

Six Months Ended

June 30, June 30,

Nine Months Ended

September 30, September 30,

(In thousands of U.S.

9 unchanged sentences

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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis