IMAX CORP 10-Q

Item 2. 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 nine months ended September 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 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 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 Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. 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. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States, Canada, and China, including with respect to escalating and uncertain tariffs and other trade regulations, as well as economic and trade tensions, trade wars, and geopolitical conflicts and the effects thereof; risks related to the Company’s growth and operations in China; industry conditions in China affecting both the Company and its partners; risks related to the failure of the Company’s exhibitors being able to fulfill their contractual payment obligations; risks related to the Company’s failure to attract and retain its employee population; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX theater system agreements; conditions, changes and developments in the commercial exhibition industry; risks related to the Company’s inability to enter into new sales and lease agreements adversely affecting revenue; risks related to the Company’s operating results and cash flow increasing the volatility of the Company’s share price; risks related to currency fluctuations and foreign exchange controls; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cybersecurity and data privacy; risks related to the Company’s inability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; risks associated with the Company’s use of artificial intelligence (“AI”) and exploration of additional use cases of AI; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to sustained inflationary pressure; risks related to political, economic and social instability; the failure to convert system backlog into revenue and cash flows; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the United States Securities and Exchange Commission (the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this quarterly report are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. 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. 39 Table of Contents 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. Reports may be obtained free of charge through the SEC’s website at www.sec.gov or the SEDAR+ website at www.sedarplus.ca and through the Company’s website at www.imax.com or by calling the Company’s Investor Relations Department at 212-821-0154. The Company announces material information to the public through a variety of means, including filings with the SEC and Canadian securities regulators, press releases, public conference calls, and its website at www.imax.com. The Company uses these channels to communicate with investors and the public about the Company, its products and services, and other matters. Therefore, investors are encouraged to review the information the Company makes public in these locations, as such information could be deemed to be material information. No information included on the Company’s website shall be deemed included or otherwise incorporated into this filing, except where expressly indicated. All references to the Company’s website are intended to be inactive textual references only. OVERVIEW IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, awe-inspiring immersive content experiences for which the IMAX ® brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films. The Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide; IMAX documentaries, both original and acquired (“IMAX Documentaries”); and IMAX events and experiences in emerging verticals, including music, gaming, and sports. 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. The customers for IMAX Systems are principally exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, institutional locations, including museums and science centers, and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with licenses to use its trademarks and ongoing maintenance services for which there are annual payments by the exhibitors to IMAX. IMAX has the largest global premium format network, more than double the size of its nearest competitor. 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. IMAX Systems provide the Company’s exhibitor customers with a combination of the following benefits: • the ability to exhibit content that has been enhanced through the IMAX Film Remastering process, which results in higher image and sound fidelity than conventional cinema experiences; • 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 than conventional theatre systems so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images; 40 Table of Contents • 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; and • a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX’s growing social media followership. 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 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. The premium pricing, combined with the higher attendance levels associated with IMAX films, tends to generate incremental box office receipts (“box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network. 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 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. The Company offers a suite of laser-based digital projection systems (“IMAX Laser Systems”), which deliver increased resolution, sharper and brighter images, deeper contrast, and the widest range of colors available to filmmakers today. 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 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. The U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs on imports. These actions have resulted in retaliatory measures and uncertainty in global trade relationships. For a description of these risks, see “Risk Factors —The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.” in Part II, Item 1A of this Form 10-Q. SOURCES OF REVENUE The Company has organized its operating segments into the following two reportable segments: (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). 41 Table of Contents Content Solutions The Content Solutions segment earns revenue from Film Remastering, including the distribution of this content across the IMAX global network. 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. Dollar. Film Remastering and Distribution IMAX Film Remastering is a proprietary technology that digitally remasters films and other content into IMAX formats for distribution across the IMAX network. In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the box office from a movie studio in exchange for converting a commercial film into the IMAX format and distributing it through the IMAX network. 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. IMAX Film Remastering is completed for the image of films released to the IMAX network, creating a unique IMAX version that is optimized for IMAX’s proprietary digital projection systems and format. In addition, the original soundtrack of a film to be exhibited across the IMAX locations is remastered into a unique IMAX digital audio format. IMAX sound systems use proprietary loudspeaker systems, designs and proprietary surround sound configurations to ensure every seat in an auditorium is an optimal listening position. IMAX films also benefit from enhancements made by individual filmmakers exclusively for the IMAX release of the film. Collectively, the Company refers to these enhancements as “IMAX DNA.” Filmmakers and movie studios increasingly seek to infuse more IMAX DNA in theatrical releases to realize a filmmaker’s creative vision more fully, while generating interest and excitement among moviegoers. Such enhancements include shooting films with IMAX cameras to increase the audience’s immersion in the film and to take advantage of the unique dimensions of the IMAX screen by projecting the film in a larger 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’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 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. The Company’s strategy to capitalize on this opportunity includes expanding the IMAX network into underpenetrated international markets and growing the number of local language films released, particularly in China, Japan, India, France, and South Korea. 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 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. 42 Table of Contents 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 Hollywood film releases (1) 7 11 22 27 Local language film releases: China 12 10 22 18 Japan 4 4 8 12 South Korea 2 2 6 5 India 1 3 7 7 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 22 21 52 45 Other content experiences 8 5 17 11 37 37 91 83 (1) For the three and nine months ended September 30, 2025, the films released to the Company’s global network include four and 13 with IMAX DNA (2024 — five). The films distributed through the Company’s global network during the nine months ended September 30, 2025 that generated the highest IMAX box office totals were Chinese local language film Ne Zha 2, F1 The Movie, Mission: Impossible - The Final Reckoning, and Japanese local language film Demon Slayer: Infinity Castle. In addition, during the nine months ended September 30, 2025, a number of alternative content films and events were distributed, including Becoming Led Zeppelin, Pink Floyd at Pompeii - MCMLXXII and Prince - Sign O’ The Times. 43 Table of Contents In addition to the 91 IMAX films and alternative content experiences released on the Company’s global network during the nine months ended September 30, 2025, the Company has announced the following additional 22 new films and alternative content experiences to be released throughout the remainder of 2025: Title Studio Scheduled Release Date (1) IMAX DNA Tron: Ares Walt Disney Studios October 2025 Filmed for IMAX Chien 51 (2) Pathe October 2025 — Thama (2) Maddock Films October 2025 — Springsteen: Deliver Me from Nowhere Walt Disney Studios October 2025 — Depeche Mode: M Trafalgar October 2025 — G-Dragon (2) CJ ENM October 2025 — Back to the Future: 40th Anniversary Universal Pictures October 2025 — Baahubali: The Epic (2) Arka Media Works October 2025 — League of Legends Riot Games November 2025 — J-Hope (2) Hybe November 2025 — Jujutsu Kaisen Execution Toho Studios November 2025 — Predator: Badlands Walt Disney Studios November 2025 — The Running Man Paramount Pictures November 2025 — Scarlet Toho Studios November 2025 — Wicked: For Good Universal Pictures November 2025 — Zootopia 2 Walt Disney Studios November 2025 — Mrs. Green Apple Toho Studios November 2025 — Amsterdamned II (2) Splendid Film December 2025 — Stones to the Max Mercury Studios December 2025 — Avatar: Fire and Ash Walt Disney Studios December 2025 — Made in Yiwu (2) Lian Ray December 2025 Filmed for IMAX Escape From the Outland (2) Super Lion December 2025 Filmed for IMAX (1) The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events. (2) Denotes local language release. The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network in the last quarter of 2025. The Company has announced that a record number of over 14 Filmed for IMAX titles are scheduled to be released in 2025. The Company’s Hollywood film slate beyond 2025 is building, including major films such as: The Odyssey , Avengers: Doomsday , The Mandalorian and Grogu , Dune 3, Avengers: Secret Wars , Project Hail Mary, Toy Story 5 , Supergirl: Woman of Tomorrow, Moana , The Batman 2 , Frozen 3, and Dynamic Duo. Additionally, in January 2025, the Company announced an agreement with Netflix, Inc. to debut Academy Award ® -nominated director Greta Gerwig’s upcoming film, Narnia: The Magician’s Nephew , exclusively across the IMAX network with a two-week run beginning Thanksgiving 2026. In addition, the Company believes that at least 15 Filmed for IMAX titles will be released to its global network in 2026, which would break the record set in 2025 for such titles. Other Content Solutions The Company distributes large-format documentary feature films through its global commercial network and institutional theaters. Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater box office and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues. 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 , 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 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. 44 Table of Contents In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. 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. In addition, the Company continued its partnership with A24 for one-night-only IMAX releases of classic A24 titles, including Talk to Me , Moonlight, and Spring Breakers. The Company collaborated with Fandango Media for the Fortnite Championship Series: Pro-Am screening in eight North American IMAX locations and with Wanda Film for the F1 Spanish Grand Prix screening across six IMAX locations in China. The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company provides IMAX film and digital cameras to content creators under the IMAX certified camera program. Technology Products and Services The Technology Products and Services segment earns revenue principally from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. 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 The Company provides IMAX Systems to exhibitors through sale arrangements or long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns initial fees and ongoing consideration, which can include fixed annual minimum payments and contingent fees in excess of the minimum payments, as well as maintenance and extended warranty fees (see “IMAX Maintenance” below). The initial fees vary depending on the system configuration and location of the IMAX System. Initial fees are paid to the Company in installments typically between the time of signing the arrangement and the time of system installation. Once an IMAX System is installed, the initial fees and the present value of future annual minimum payments, which are financing fees, are recognized as revenue. In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum box office receipt thresholds are exceeded is recorded as revenue in the period when the sale is recognized and is adjusted in future periods based on actual results and changes in estimates. Such variable consideration is only recognized on sales transactions to the extent the Company believes there is not a risk of significant revenue reversal. Finance income is recognized over the term of a financed sale or sales-type lease arrangement. In sale arrangements, title to the IMAX System equipment generally transfers to the customer. However, in certain instances, the Company retains title or a security interest in the equipment until the customer has made all payments required by the agreement or until certain shipment events for the equipment have occurred. In a sales-type lease arrangement, title to the IMAX System equipment remains with the Company. The Company has the right to remove the equipment for non-payment or other defaults by the customer. 45 Table of Contents The revenue earned from customers under the Company’s IMAX System sale or sales-type lease agreements varies from quarter-to- quarter and year-to-year based on a number of factors, including the number and mix of IMAX System configurations sold or leased, the timing of installation of the IMAX Systems, the nature of the arrangement and other factors specific to individual contracts. Joint Revenue Sharing Arrangements 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. In exchange for its upfront investment, the Company, primarily, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments. Rental payments from the customer are required throughout the term of the arrangement and are typically due either monthly or quarterly. The Company retains title to the IMAX System equipment components throughout the lease term, and the equipment is returned to the Company at the conclusion of the arrangement. Under certain other JRSAs, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System in an amount that is typically half of what the Company would receive from a typical sale transaction. As with a traditional JRSA, the customer also pays the Company a percentage of contingent box office receipts over the term of the arrangement, although this percentage is typically half that of a traditional JRSA. Under most JRSAs (both traditional and hybrid), the initial non-cancellable term is 10 years or longer and is renewable by the customer for one to two additional terms of between three to five years. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The contracts are non-cancellable by the customer unless the Company fails to perform its obligations. The revenue earned from customers under the Company’s JRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive box office levels including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, size and management of the theater and other factors specific to individual arrangements. JRSAs also require IMAX to provide maintenance and extended warranty services to the customer over the term of the lease in exchange for a separate fixed annual fee. These fees are reported within IMAX Maintenance, as discussed below. JRSAs have been an important factor in the expansion of the Company’s commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. 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 IMAX quality standards. Annual maintenance fees are paid throughout the duration of the term of the system agreements. All Other IMAX Enhanced | Streaming and Consumer Technology 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 users across streaming platforms and consumer devices. The new ‘IMAX Enhanced’ program for partners includes three core elements: 1. IMAX Enhanced Live: Real-time enhancement for sports, concerts, and events using SCT’s proprietary technology to measure, enhance, optimize, and validate premium color, contrast, and clarity at the speed of live. 2. IMAX Enhanced On-Demand: 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 46 Table of Contents Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video. 3. 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 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. Other All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and offering production advice and technical assistance to both documentary and Hollywood filmmakers. IMAX NETWORK AND BACKLOG IMAX Network 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. September 30, 2025 September 30, 2024 Commercial Multiplex Commercial Destination Institutional Total Commercial Multiplex Commercial Destination Institutional Total United States 380 4 24 408 368 4 24 396 Canada 44 1 5 50 42 1 6 49 Greater China (1) 787 — 13 800 795 — 13 808 Asia (excluding Greater China) 194 1 2 197 175 2 2 179 Western Europe 147 3 7 157 131 4 8 143 Latin America (2) 63 1 7 71 61 1 7 69 Rest of the World 144 — 2 146 142 — 2 144 Total (3) 1,759 10 60 1,829 1,714 12 62 1,788 (1) Greater China includes China, Hong Kong, Taiwan, and Macau. (2) Latin America includes South America, Central America, and Mexico. (3) Period-to-period changes in the table above are reported net of the effect of permanently closed locations. (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 (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 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 47 Table of Contents 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 September 30, 2025 and 2024: September 30, 2025 Commercial Multiplex Locations in IMAX Network Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 278 6 140 424 International: Greater China 387 99 301 787 Asia (excluding Greater China) 56 1 137 194 Western Europe 50 13 84 147 Latin America 4 — 59 63 Rest of the World 11 — 133 144 International Total 508 113 714 1,335 Worldwide Total (2) 786 119 854 1,759 (1) Includes Sales and Sales-Type Lease deal types. (2) Period-to-period changes in the tables above are reported net of permanently closed locations. September 30, 2024 Commercial Multiplex Locations in IMAX Network Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 275 6 129 410 International: Greater China 381 108 306 795 Asia (excluding Greater China) 51 1 123 175 Western Europe 42 14 75 131 Latin America 3 — 58 61 Rest of the World 13 — 129 142 International Total 490 123 691 1,304 Worldwide Total (2) 765 129 820 1,714 (1) Includes Sales and Sales-Type Lease deal types. (2) Period-to-period changes in the tables above are reported net of permanently closed systems. 48 Table of Contents Backlog 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 Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 108 2 15 125 International: Greater China 93 90 44 227 Asia (excluding Greater China) 16 1 36 53 Western Europe 7 — 13 20 Latin America 1 — 6 7 Rest of the World 2 1 43 46 International Total 119 92 142 353 Worldwide Total (2)(3) 227 94 157 478 (1) Includes Sales and Sales-Type Lease deal types. (2) Worldwide Total of 478 includes 247 new IMAX Laser Systems and 137 upgrades of existing locations to IMAX Laser Systems. (3) Worldwide Total of 478 includes 341 new system backlog and 137 upgrade system backlog. September 30, 2024 IMAX System Backlog Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 60 2 10 72 International: Greater China 112 90 52 254 Asia (excluding Greater China) 17 2 43 62 Western Europe 13 1 21 35 Latin America 2 — 3 5 Rest of the World 3 — 41 44 International Total 147 93 160 400 Worldwide Total (2)(3) 207 95 170 472 (1) Includes Sales and Sales-Type Lease deal types. (2) Worldwide Total of 472 includes 262 new IMAX Laser Systems and 109 upgrades of existing locations to IMAX Laser Systems. (3) Worldwide Total of 472 includes 363 new system backlog and 109 upgrade system backlog. The backlog reflects the minimum number of commitments for IMAX Systems according to signed contracts. The Company believes that the contractual obligations for IMAX System installations that are listed in backlog are valid and binding commitments. From time to time, in the normal course of its business, the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals or financing. Certain of the Company’s contracts contain options for the customer to elect to upgrade system type during the term or to alter the contract structure (for example, from a JRSA to a sale) after signing, but before installation. Current backlog information reflects all known elections. 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.) 49 Table of Contents Signings and Installations 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 System Signings: Sales Arrangements (1) 15 10 49 40 Traditional JRSA 4 6 93 71 Total IMAX System signings (2) 19 16 142 111 (1) Includes Sales and Sales-Type Lease deal types. (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 System Installations (1) : Sales Arrangements (2) 17 20 43 35 Hybrid JRSA 1 — 1 1 Traditional JRSA 20 29 51 52 Total IMAX System installations (3) 38 49 95 88 (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. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System. (2) Includes Sales and Sales-Type Lease deal types. (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 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 September 30, 2025 and 2024: Three Months Ended September 30, 2025 2024 (In thousands of U.S. Dollars, except per diluted share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 20,657 $ 0.37 $ 13,896 $ 0.26 Adjusted net income attributable to common shareholders * $ 26,240 $ 0.47 $ 18,855 $ 0.35 *Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. Revenues and Gross Margin 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. 50 Table of Contents 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 % (In thousands of U.S. Dollars) 2025 2024 2025 2024 2025 2024 Content Solutions $ 44,832 $ 30,129 $ 31,923 $ 16,449 71 % 55 % Technology Products and Services 60,420 57,971 34,820 31,964 58 % 55 % Sub-total for reportable segments 105,252 88,100 66,743 48,413 63 % 55 % All Other (1) 1,402 3,352 528 2,606 38 % 78 % Total $ 106,654 $ 91,452 $ 67,271 $ 51,019 63 % 56 % (1) All Other includes the results from Streaming and Consumer Technology and other ancillary activities. Content Solutions 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 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 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, 2025 2024 (In thousands of U.S. Dollars, except number of systems) Number of Systems Revenue Number of Systems Revenue New IMAX Systems 16 $ 12,318 12 $ 11,363 Upgraded IMAX Systems 2 1,881 8 9,424 Total IMAX Systems 18 $ 14,199 20 $ 20,787 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. 51 Table of Contents 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 $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. All Other 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: On-Demand. Selling, General and Administrative Expenses 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 September 30, Variance (In thousands of U.S. Dollars) 2025 2024 $ % Total Selling, general and administrative expenses $ 34,219 $ 31,466 $ 2,753 9 % Less: Share-based compensation (1) (5,763) (5,036) (727) (14 %) Total Adjusted Selling, general and administrative expenses $ 28,456 $ 26,430 $ 2,026 8 % (1) A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (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 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 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 52 Table of Contents 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 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. Income Taxes 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 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 nine months ended September 30, 2025 and 2024: Nine Months Ended September 30, 2025 2024 (In thousands of U.S. Dollars, except per diluted share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 34,239 $ 0.62 $ 20,753 $ 0.39 Adjusted net income attributable to common shareholders* $ 48,025 $ 0.87 $ 36,542 $ 0.68 *Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. Revenues and Gross Margin 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 % (In thousands of U.S. Dollars) 2025 2024 2025 2024 2025 2024 Content Solutions $ 113,046 $ 99,218 $ 77,908 $ 54,686 69 % 55 % Technology Products and Services 166,652 152,019 94,084 81,331 56 % 54 % Sub-total for reportable segments 279,698 251,237 171,992 136,017 61 % 54 % All Other (1) 5,307 8,299 2,057 5,818 39 % 70 % Total $ 285,005 $ 259,536 $ 174,049 $ 141,835 61 % 55 % (1) All Other includes the results from Streaming and Consumer Technology and other ancillary activities. Content Solutions 53 Table of Contents 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: First Steps. 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 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 JRSAs as revenue is recognized over the lease term, during the nine months ended September 30, 2025 and 2024: Nine Months Ended September 30, 2025 2024 (In thousands of U.S. Dollars, except number of systems Number of Systems Revenue Number of Systems Revenue New IMAX Systems 39 $ 32,648 25 $ 22,874 Upgraded IMAX Systems 5 5,219 11 13,727 Total 44 $ 37,867 36 $ 36,601 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 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. 54 Table of Contents 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. All Other 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: On-Demand. Selling, General and Administrative Expenses 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. Dollars) 2025 2024 $ % Total Selling, general and administrative expenses $ 102,983 $ 100,287 $ 2,696 3 % Less: Share-based compensation (1) (17,345) (15,879) (1,466) (9 %) Total Adjusted Selling, general and administrative expenses (2) $ 85,638 $ 84,408 $ 1,230 1 % (1) A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to “Capital Stock and Reserves — Share-Based Compensation” in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.) (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 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 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. 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 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. 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. (Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1). Interest Expense and Interest Income 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. 55 Table of Contents Income Taxes 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 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 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 described in the 2024 Form 10-K. CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 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 nine months ended September 30, 2025 and 2024. Nine Months Ended (In thousands of U.S. Dollars) 2025 2024 Net cash provided by (used in) Operating activities $ 97,694 $ 59,352 Investing activities (34,779) (30,346) Financing activities (20,381) (951) Effect of exchange rate changes on cash (20) 249 Net change in cash $ 42,514 $ 28,304 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 $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 September 30, 2025, the Company’s principal sources of liquidity included: (i) its balances of cash and cash equivalents of $143.1 million; (ii) the anticipated collection of trade accounts receivable, which includes amounts owed under JRSAs and Film Remastering and distribution agreements with movie studios; (iii) the anticipated collection of financing and variable consideration receivables due in the next 12 months under sale and sales-type lease arrangements for systems currently in operation; and (iv) installment payments expected in the next 12 months under sale and sales-type lease arrangements in backlog. 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. 56 Table of Contents 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 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. The Company forecasts its future cash flow and short-term liquidity requirements on an ongoing basis. These forecasts are based on estimates and may be materially impacted by factors that are outside of the Company’s control (including the factors described in “Risk Factors” in Part I, Item 1A of the Company’s 2024 Form 10-K as supplemented by “Risk Factors” in Part II, Item 1A of this Form 10-Q). As a result, there is no guarantee that these forecasts will come to fruition and that the Company will be able to fund its operations through cash flows from operations. In particular, the Company’s operating cash flows and cash balances will be adversely impacted if management’s projections of future signings and installations of IMAX Systems and box office performance of IMAX content are not realized. 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 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. OFF-BALANCE SHEET ARRANGEMENTS There are currently no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company’s financial condition. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations, and other factors that are believed to be reasonable as of the date of the Company’s Condensed Consolidated Financial Statements. 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. RECENTLY ISSUED ACCOUNTING STANDARDS Refer to Note 2 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a discussion of recently issued accounting standards and their impact on the Company’s Condensed Consolidated Financial Statements. 57 Table of Contents NON-GAAP FINANCIAL MEASURES GAAP refers to generally accepted accounting principles in the United States of America. In this report, the Company presents financial measures in accordance with GAAP and also on a non-GAAP basis under the SEC regulations. Specifically, the Company presents the following non-GAAP financial measures as supplemental measures of its performance: • Adjusted net income or loss attributable to common shareholders; • Adjusted net income or loss attributable to common shareholders per basic and diluted share; • EBITDA; • Adjusted EBITDA per Credit Facility; and • Adjusted Selling, general and administrative expenses. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) employee retention credits, and as well as the related tax impact of these adjustments. The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. 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 September 30, 2025 2024 (In thousands of U.S. Dollars, except per share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 20,657 $ 0.37 $ 13,896 $ 0.26 Adjustments (1) : Share-based compensation 6,194 0.11 5,332 0.10 Unrealized investment gains (34) — (32) — Employee retention credits (144) — — — Tax impact on items listed above (433) (0.01) (341) (0.01) Adjusted net income (1) $ 26,240 $ 0.47 $ 18,855 $ 0.35 Weighted average shares outstanding — basic 53,788 52,682 Weighted average shares outstanding — diluted 55,565 54,089 (1) Reflects amounts attributable to common shareholders. 58 Table of Contents Nine Months Ended September 30, 2025 2024 (In thousands of U.S. Dollars, except per diluted share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 34,239 $ 0.62 $ 20,753 $ 0.39 Adjustments (1) : Share-based compensation 18,534 0.34 16,686 0.30 Unrealized investment gains (99) — (94) — Restructuring and other charges 843 0.01 — — Employee retention credits (3,971) (0.07) — — Tax impact on items listed above (1,521) (0.03) (803) (0.01) Adjusted net income (1) $ 48,025 $ 0.87 $ 36,542 $ 0.68 Weighted average shares outstanding — basic 53,561 52,605 Weighted average shares outstanding — diluted 55,242 53,628 (1) Reflects amounts attributable to common shareholders. In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results. EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) write-downs, net of recoveries, including asset impairments and credit loss expense or reversal. Reconciliations of net income attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility are presented in the tables below: 59 Table of Contents (In thousands of U.S. Dollars) Three Months Ended September 30, 2025 Reported net income $ 22,616 Add (subtract): Income tax expense 5,205 Interest expense, net of interest income 766 Depreciation and amortization, including film asset amortization 15,611 Amortization of deferred financing costs (1) 508 EBITDA 44,706 Share-based and other non-cash compensation 6,284 Unrealized investment (gains) losses (34) Write-downs, including asset impairments and credit loss expense 853 Total Adjusted EBITDA $ 51,809 Less: Non-controlling interest (3,850) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 47,959 (1) The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations. (In thousands of U.S. Dollars) Twelve Months Ended September 30, 2025 Reported net income $ 49,867 Add (subtract): Income tax expense 15,146 Interest expense, net of interest income 2,522 Depreciation and amortization, including film asset amortization 63,021 Amortization of deferred financing costs (1) 1,984 EBITDA 132,540 Share-based and other non-cash compensation 24,998 Unrealized investment gains (132) Restructuring and other charges 4,592 Write-downs, including asset impairments and credit loss expense 3,042 Total Adjusted EBITDA $ 165,040 Less: Non-controlling interest (18,138) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 146,902 (1) The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations. The Company also adjusts Selling, General and Administrative Expenses to exclude a portion of share-based compensation and related payroll taxes. Management uses non-GAAP and other financial measures such as this, internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. IMAX believes that this non-GAAP measure provides useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management and its financial and operational decision making. A reconciliation of Selling, General and Administrative Expenses, the most directly comparable GAAP measure presented in the Condensed Consolidated Statement of Operations in Part I, Item 1, to Adjusted Selling, General and Administrative Expenses is presented in the table below. Three Months Ended Nine Months Ended September 30, September 30, (In thousands of U.S. Dollars) 2025 2024 2025 2024 Total Selling, general and administrative expenses $ 34,219 $ 31,466 $ 102,983 $ 100,287 Less: Share-based compensation (5,763) (5,036) (17,345) (15,879) Total Adjusted Selling, general and administrative expenses $ 28,456 $ 26,430 $ 85,638 $ 84,408 60 Table of Contents The Company cautions users of its financial statements that these non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered in isolation, or as a substitute for, or superior to, the comparable GAAP amounts.