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Item 7. Management’s Discussion and Analysis

2026-02-25 compared with 2025-02-19 · 359 added, 390 removed, 485 unchanged (61% of the section changed)

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

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.

Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX for the twelve months ended December 31, 2025 and 2024.

This MD&A should be read in conjunction with the accompanying Consolidated Financial Statements and related notes and the discussion under Item 8 of the Company’s 2025 Annual Report on Form 10-K (this “Form 10-K”) and contains forward-looking statements that involve risks and uncertainties.

Readers of this MD&A should review the sections titled “Special Note Regarding Forward-Looking Information”, “Risk Factors”, and “Quantitative and Qualitative Disclosures about Market Risk” for a discussion of forward-looking statements and factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements in the MD&A.

For a discussion of results and comparisons for the twelve month ended December 31, 2023, see “Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2024 Annual Report on Form 10-K.

IMAX Corporation (“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.

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As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films.

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)”).

T he 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.

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

As of December 31, 2024, there were 1,807 IMAX Systems operating in 90 countries and territories, including 1,735 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network.

As of December 31, 2025, there were 1,864 IMAX Systems operating in locations in 91 countries and territories, including 1,796 commercial multiplexes, 10 commercial destinations, and 58 institutional locations in the Company’s global network.

This compares to 1,807 IMAX Systems operating in 90 countries and territories as of December 31, 2024, including 1,735 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network.

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• 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;

• ongoing maintenance and extended warranty services;

• large screens and proprietary auditorium geometry, which result in a substantially larger field of view than conventional theater 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 theater 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 to ensure a consistent image and sound quality presentation across the IMAX global network ;

• 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.

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.

The Company believes that the benefits related to the enhanced and differentiated image quality and film aspect ratio 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’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 achieved its second highest year for domestic (United States and Canada combined) box office in 2024.

The year was highlighted by blockbusters including Dune:

Part Two , Deadpool & Wolverine , Godzilla x Kong:

The New Empire and Alien:

Additionally, local language films exhibited across the Company’s global network represented 15% of its total box office, including the Chinese films Pegasus 2 and Yolo, the Japanese film Haikyu!!, and the Korean concert film, IM Hero:

The Stadium .

A cornerstone of the IMAX brand for almost 60 years, IMAX relaunched its IMAX Documentaries strategy to focus on a new generation of narrative-driven original and acquired documentary films, as well as downstream revenue opportunities through partnerships with leading streaming platforms.

In 2024, Amazon Content LLC (“Amazon Content”) acquired the worldwide rights to the Company’s original documentary, The Blue Angels .

Additional forthcoming IMAX Documentaries include The Elephant Odyssey , Stormbound, Patrouille de France, and The Last Wolves of Yellowstone.

The Company has also continued to evolve its platform to bring new, innovative events and experiences to audiences worldwide.

During the year ended December 31, 2024, the Company partnered with Pathé Live for the exclusive release of Queen Rock Montreal , which became one of its highest grossing concert films ever.

In addition, the Company entered into a partnership with A24 for a monthly one-night-only IMAX release of classic A24 titles, hosted multiple IMAX Live events, including screening the National Basketball Association (“NBA”) finals across select IMAX locations in the Asia Pacific region.

Additionally, in partnership with the NBC television network, the Company extended its live coverage of the 2024 Paris Olympics Opening Ceremony and the White Out Game Live in IMAX :

Washington vs.

Penn State to select IMAX locations throughout the United States.

In addition, IMAX programmed its first ever esports event by live streaming the League of Legends world championship, in partnership with CJ CGV Co.

Ltd., and Wanda Film (“Wanda”), to over 150 locations across China and South Korea, with an average capacity of over 90%.

As of December 31, 2024, the Company had a footprint of 265 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.

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

The premium pricing, combined with the higher attendance levels associated with IMAX films, generates incremental box office receipts (“global box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network.

The incremental global 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.

In 2025, the Company’s diversified global programming and marketing strategy resulted in a global box office record of $1.28 billion, surpassing its previous record of $1.13 billion in 2019 by 13% and a 40% increase over the prior year comparative period.

The Company achieved its highest grossing year at the domestic (United States and Canada) box office in 2025.

Additionally, the Company had record box office in over 30 countries and territories worldwide in 2025, including China, Japan, Germany, India, Australia and Vietnam.

The Company’s 2025 film slate was the largest in history, with 122 new films and other content released during the year, including a record 67 local language films.

The top grossing titles released in 2025 included the Chinese film Ne Zha 2, which became the highest grossing IMAX release of all time in China and contributed to the highest grossing Chinese New Year in the Company’s history;

Fire and Ash , the Company’s highest grossing Hollywood release of the year, achievin g 15% of t he film’s total domestic opening weekend box office;

The Movie, Mission:

Impossible - The Final Reckoning, and the Japanese film Demon Slayer:

Infinity Castle.

Local language content in 2025 generated $405.4 million in global box office for the Company or 32% of its total global box office, surpassing its previous record of $243.5 million set in 2023 by 66% .

Throughout the year, the Company continually optimized its global IMAX network by taking a heavily diversified programming approach, playing multiple titles contemporaneously, and maintaining maximum scheduling flexibility.

In 2025, the Company released several films shot with IMAX proprietary cameras under the Filmed For IMAX ® program, that generated more than $40.0 million in global IMAX box office on a per-title basis.

IMAX captured at least 20% of the domestic opening weekend box office on each of Sinners , Mission:

Impossible – The Final Reckoning , F1:

The Movie , and Tron:

Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for premium large‑format experiences continued to strengthen.

The Filmed For IMAX program helped drive the Company’s domestic box office market share to a record 5.2% and to a record global market share of 3.8%, up from 4.5% and 3.1%, respectively, in the prior year, even though IMAX represents only approximately 1% of domestic screens and less than 1% of screens worldwide.

In 2025, the Company partnered to release exclusive concert films and limited-run theatrical events, including Becoming Led Zeppelin with Sony Pictures , Prince - Sign O’ The Times and Rolling Stones - At The Max with Mercury Studios, Pink Floyd at Pompeii - MCMLXXII, Depeche Mode:

M, and j-hope Tour ‘Hope on Stage’ The Movie with Trafalgar Releasing, One to One:

John & Yoko with Magnolia Pictures, Springsteen:

Deliver Me From Nowhere with 20th Century Studios, and G-Dragon in Cinema [Übermensch] with CJ CGV Co.

The Company also partnered with Bleecker Street for the release of Spinal Tap II:

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

The Company also continued its partnership with A24 to present one-night-only IMAX releases of classic A24 titles, including Talk to Me, Moonlight , and Spring Breakers .

In addition, the Company released several event-based and live screenings in 2025, including 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 further expanded its live content offerings through partnerships with NBC Universal for the SNL50:

The Homecoming Concert in select IMAX North American locations, DAZN for the PSG v Marseille Le Classique Match in select IMAX locations across France, Wanda Film for the F1 Spanish Grand Prix screening across six IMAX locations in China, Major League Baseball for a live streaming of a World Series game across two IMAX locations in Japan and with multiple exhibitor partners in China the League of Legends Video Games 2025 finals across over 100 IMAX China locations.

Furthermore, in 2025, the Company partnered with Netflix for release of Frankenstein across select IMAX locations.

The Company will continue to expand its partnerships and the scope and diversity of content it releases across its platform.

Already announced for 2026 are the following concert films and events, many of which have exclusive IMAX windows:

The dominATE Experience, Eric Church:

Evangeline vs.

The Machine Comes Alive, Twenty One Pilots:

More Than We Ever Imagined,

Elvis Presley in Concert.

In addition, IMAX is working with Apple TV to bring the 2026 FIA Formula One World Championship live to select IMAX locations across the United States for the first time ever.

Five of the most iconic Grands Prix in F1 — Miami, Monaco, Silverstone, Monza, and Austin — will be available across at least 50 IMAX locations nationwide.

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’s Streaming and Consumer Technology business unit, formed in 2023, focuses on in-home entertainment technology.

Included in the product offerings are AI-driven video quality solutions for media and entertainment companies, to deliver the highest quality images on any screen, while also enabling cost efficiencies for streaming companies, broadcasters and other companies that transmit visual data — to create opportunities for new, recurring revenue and grow its global leadership in entertainment technology.

The business unit includes the streaming technology acquired in the SSIMWAVE Inc.

(“SSIMWAVE”) acquisition (completed in 2022) as well as IMAX Enhanced ® products.

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

The Company utilizes AI tools and technology across its products and business operations.

Within its products, AI is used for purposes such as image enhancement and video streaming optimization.

In its business operations, the Company employs AI in various functions, including research, data analysis, marketing, theater operations, slate programming, and general productivity improvements.

It is actively exploring other global use cases for AI to improve its products, operations, and efficiency.

The Company’s business and financial performance depends in part on general political, social, and economic conditions, including changes to trade policies and tariffs.

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.”, “General political, social, economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems.”, “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 this Form 10-K.

SOURCES OF REVENUE

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Content Solutions

The Content Solutions segment earns revenue principally from studios and other content creators for the digital remastering of films and other content into IMAX formats for distribution across the IMAX 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.

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 to commercial IMAX theaters, 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.

The studio sector has experienced, and continues to experience, significant consolidation, which may impact the availability of films for release to the IMAX network.

A detailed discussion of industry consolidations in included within “Industry overview—Competition—Exhibitor and Studio Consolidation.” in Part I, Item 1.

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 receipts 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 receipts (i.e., gross box office (“GBO”) less applicable sales taxes), except for within Greater China, where the Company receives a lower percentage of net box office receipts for certain Hollywood films due to an import tax.

In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the box office from a 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 on a gross basis before sales taxes except within Greater China, where the Company often receives a lower percentage of net box office due to an incremental importation fee paid by the studios.

All of the Company’s box office results in this Form 10-K are inclusive of China booking fees to be consistent with market reporting of global box office.

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.

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.

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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 has a Filmed For IMAX ® program for select films under which filmmakers craft films from their inception in numerous ways to optimize The IMAX Experience .

The program includes incremental and bespoke marketing support, which box office metrics demonstrate audiences respond extremely favorably to, and drives a higher market share for IMAX.

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.

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 conventional movie screen.

Filmed For IMAX is IMAX’s filmmaker partnership program.

Filmmakers who participate in the program leverage IMAX technology throughout the production process to deliver a movie that is meant to be seen in an IMAX location.

From pre-production, through to release, the Company works closely with filmmakers to maximize The IMAX Experience ® for audiences.

Filmed For IMAX movies are shot using either an IMAX certified digital camera or an IMAX film camera, with the IMAX Post-Production team working closely with the filmmaker from camera testing before the shoot begins, to on-set support, to test screenings, and post-production.

Most Filmed For IMAX movies leverage IMAX’s exclusive expanded aspect ratio for select sequences and, occasionally, the entire film, and benefit from unique marketing support.

The global 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 on average indexed over 8% higher than titles with no IMAX DNA.

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

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.

In 2025, local language films exhibited across the Company’s global network generated $405.4 million in global box office, representing 32% of the Company’s total 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 released to the Company’s global network during the years ended December 31, 2025 and 2024:

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Indonesia 1 1

Saudi Arabia 1 —

Netherlands 1 —

Total local language film releases

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Total film releases (1)

(1) For the year ended December 31, 2024, the films released to the Company’s global network include ten with IMAX DNA (2023 — eight).

The films distributed through the Company’s global network during the year ended December 31, 2024 that generated the highest IMAX box office receipts were Dune:

Part Two, Deadpool & Wolverine, Godzilla x Kong:

The New Empire, Alien:

Romulus, Inside Out 2, Gladiator 2, Venom:

The Last Dance, Mufasa:

The Lion King, Kingdom of The Planet of The Apes, and Interstellar.

To date, in 2025, 21 titles have been released to the global IMAX network, including three titles with IMAX DNA, and the Company has announced the following additional 31 titles to be released in 2025:

(1) For the year ended December 31, 2025, the films released to the Company’s global network include 15 with IMAX DNA (2024 — ten).

The films distributed through the Company’s global network during the year ended December 31, 2025 that generated the highest IMAX box office totals were Chinese local language film Ne Zha 2 , Avatar:

Fire and Ash , F1:

The Movie , Mission:

Impossible - The Final Reckoning , Japanese local language film Demon Slayer:

Infinity Castle and Zootopia 2 .

In addition, during the year ended December 31, 2025, 25 alternative content films and events were distributed, including Becoming Led Zeppelin , Pink Floyd at Pompeii - MCMLXXII and Prince - Sign O’ The Times .

(Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations ― Sources of Revenue ― Other Content Solutions” in Part II, Item 7.)

To date, in 2026, 21 titles have been released to the global IMAX network, including two titles with IMAX DNA, and the Company has announced the following additional 30 titles to be released in 2026:

Title Studio Scheduled

Release Date (1)

Moonlight A24 February 2025 —

Mickey 17 Warner Bros.

Pictures March 2025 —

Spring Breakers A24 March 2025 —

Snow White Walt Disney Studios March 2025 —

Alto Knights Warner Bros.

Pictures March 2025 —

A Minecraft Movie Warner Bros.

Pictures April 2025 —

The Amateur Walt Disney Studios April 2025 —

John & Yoko Magnolia Films April 2025 —

Sinners Warner Bros.

Pictures April 2025 Filmed for IMAX

Ambulance (2)

Muvi Studios April 2025 —

Thunderbolts Marvel Studios May 2025 Filmed for IMAX

Final Destination:

Bloodlines Warner Bros.

Paramount Pictures

February 2026

Twenty One Pilots:

More Than We Ever Imagined

Trafalgar Releasing

February 2026

The Revenant 10th Anniversary Re-Release

Walt Disney Studios

February 2026

Pictures March 2026 Filmed For IMAX

Walt Disney Studios

Golden Kamuy 2 (2)

Toho Cinemas March 2026 —

Ghost Board (2)

Kiki’s Delivery Service (2)

Studio Ghibli/GKIDS

Project Hail Mary Amazon MGM Studios March 2026 Filmed For IMAX

The Super Mario Galaxy Movie Universal Pictures April 2026 —

Michael Lionsgate April 2026 —

Abdala Brothers April 2026 —

Mortal Kombat II Warner Bros.

Pictures May 2026 Filmed For IMAX

Mission Impossible - The Final Reckoning Paramount Pictures May 2025 Filmed for IMAX

How to Train Your Dragon Universal Pictures June 2025 Filmed for IMAX

F1 Warner Bros.

The Mandalorian and Grogu

Walt Disney Studios May 2026 Filmed For IMAX

Disclosure Day

Universal Pictures

Toy Story 5 Walt Disney Studios June 2026 —

Pictures June 2026 Filmed For IMAX

Jurassic World:

Rebirth Universal Pictures July 2025 —

Superman Warner Bros.

Pictures July 2025 Filmed for IMAX

The Fantastic Four:

First Steps Marvel Studios July 2025 Filmed for IMAX

Untitled Paul Thomas Anderson Title Warner Bros.

Pictures August 2025 —

The Conjuring:

Last Rites Warner Bros.

Pictures September 2025 —

Untitled Crunchyroll/Sony Title (2)

Sony Pictures September 2025 —

Him Universal Pictures September 2025 —

Pictures September 2025 Filmed for IMAX

Michael Lionsgate/Universal Pictures October 2025 —

Ares Walt Disney Studios October 2025 Filmed for IMAX

Mortal Kombat 2 Warner Bros.

Pictures October 2025 Filmed for IMAX

Badlands Walt Disney Studios November 2025 —

The Running Man Paramount Pictures November 2025 —

For Good Universal Pictures November 2025 —

Zootopia 2 Walt Disney Studios November 2025 —

Fire and Ash Walt Disney Studios December 2025 —

Minions 3 Universal Pictures July 2026 —

Moana Walt Disney Pictures July 2026 —

The Odyssey Universal Pictures July 2026 Filmed For IMAX

Flowervale Street Warner Bros.

Pictures August 2026 Filmed For IMAX

Resident Evil Sony Pictures September 2026 Filmed For IMAX

Pictures October 2026 —

Street Fighter Paramount Pictures October 2026 Filmed For IMAX

Hunger Games:

Sunrise on the Reaping Lionsgate November 2026 —

Narnia Netflix November 2026 Filmed For IMAX

Sony Pictures December 2026 —

Doomsday Walt Disney Studios December 2026 —

Part Three Warner Bros.

Pictures December 2026 Filmed For IMAX

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.

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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 throughout 2025.

The Company has announced that a record number of at least 12 Filmed for IMAX titles will be released in 2025.

The Company’s Hollywood film slate beyond 2025 has started to fill in including major films such as:

Doomsday , The Mandalorian and Grogu , Toy Story 5 , The Odyssey , Narnia , Moana , Supergirl Woman of Tomorrow , Avengers:

Secret Wars , The Batman 2 , Frozen 3, and Dynamic Duo.

The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network in 2026.

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 receipts and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues.

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

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.

The Company believes 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 December 31, 2025, the Company had distribution rights with respect to approximately 75 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

In May 2024, Amazon Content completed its acquisition of the worldwide rights to the Company’s original documentary, The Blue Angels , filmed with IMAX certified digital cameras and produced in collaboration with Dolphin Entertainment, Bad Robot Productions, and Zipper Bros Films.

The feature-length documentary was released to select commercial locations across the IMAX network and, in January 2025, a 40-minute 3D version was released to IMAX institutional locations.

Additionally, in 2024, the Company had limited commercial network releases of the documentaries Skywalkers:

A Love Story The IMAX Experience and Fly:

The IMAX Experience , in partnership with XYZ Films and National Geographic, respectively.

Upcoming documentaries, which are currently in production, include Stormbound , a feature documentary produced by Academy Award ® -winning producer, Adam McKay, The Lost Wolves of Yellowstone , and Patrouille de France, all of which are expected to be released in 2025, and The Elephant Odyssey , a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, which is expected to be released in 2026.

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

In 2026, the Company plans to release the documentary Portrait of an Artist in collaboration with The National Basketball Association (“NBA”), Unanimous Media, and Religion of Sports offering an intimate glimpse into the life of NBA superstar Stephen Curry .

In early 2026, The Lost Wolves of Yellowstone , in collaboration with Grizzly Creek Films LLC, and French language documentary Athos, produced by Federation Studio France were released.

Upcoming 2026 documentaries, which are currently in production, include Stormbound produced by Academy Award-winning producer, Adam McKay;

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

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.

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

As of December 31, 2024, the Company had a footprint of 265 connected locations in the IMAX network across the United States, Canada, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.

Furthermore, the Company used its live streaming technologies to deliver events to an additional 166 locations around the world in 2024.

In 2024, the Company partnered with Pathé Live, Mercury Studios, and Queen Films for the exclusive release of Queen Rock Montreal , which became one of the Company’s highest grossing concert films.

In addition, the Company entered into a partnership with A24 for a monthly one-night-only IMAX release of classic A24 titles, including Midsommar , Hereditary , and Alex Garland’s highly-acclaimed film Stop Making Sense .

In 2024, the Company hosted numerous IMAX Live screening events including:

• Andre 3000:

New Blue Sun;

• the NBA finals across select IMAX locations in the Asia Pacific region;

• The Beach Boys:

IMAX Live Experience ;

• a special advance screening and live event for Megalopolis:

The Ultimate IMAX Experience ;

• a live pre-show Q&A with the cast of Twisters ;

• live coverage of the 2024 Paris Olympics Opening Ceremony in partnership with the NBC television network;

• the White Out Game Live in IMAX:

Washington vs.

Penn State for select IMAX locations throughout the United States.

In addition, IMAX programmed its first ever esports event by live streaming the League of Legends world championship, in partnership with CJ CGV Co.

and Wanda, to over 150 locations across China and South Korea, capturing an average attendance capacity of over 90%.

As of December 31, 2025, the Company was able to deliver live and interactive events to over 400 locations worldwide.

The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services.

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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.

Sales Arrangements

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.

The Company depends principally on exhibitors to purchase or lease IMAX Systems and to fulfill their contractual commitments.

Financial difficulties faced by exhibitor partners could result in delays in fulfillment of contractual obligations or an erosion in new signings.

(Refer to “Risk Factors―The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A.)

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.

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Joint Revenue Sharing Arrangements

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

The Company also provides IMAX Systems to exhibitors through 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.

In exchange for its upfront investment, the Company, generally, 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.

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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 JRSA 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.

The contracts are non-cancellable by the customer unless the Company fails to perform its material 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 global 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.

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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.

Streaming and Consumer Technology

Streaming and Consumer Technology includes the Company’s Streaming Technology software offerings and IMAX Enhanced products and services.

Streaming Technology consists of several software products including:

• IMAX StreamSmart – works within existing video compression workflows to reduce bitrates and retain picture quality across all devices and formats and deliver significant cost savings for both on-demand and live content.

• IMAX StreamAware On-Demand – all-in-one quality assurance and quality control to automate and standardize checks for comprehensive content integrity and regulatory compliance for third-party content libraries, across an entire video compression workflow.

• IMAX StreamAware On-Air – real-time monitoring software for live streams, which enables users to monitor video quality across their networks and to identify and address streaming issues.

These products are powered by IMAX VisionScience ® , an AI technology that allows streaming platforms and broadcasters to automate workflows.

The Company believes that these products allow users to deliver the highest quality viewing experiences to their subscribers while reducing costs.

IMAX Enhanced is a solution to bring The IMAX Experience into the home.

IMAX Enhanced provides end-to-end premium technology across streaming content and best-in-class entertainment devices, offering consumers high-fidelity playback of image and sound in the home and beyond, including the following features:

• IMAX’s expanded aspect ratio, which is available on select titles and streaming platforms;

• IMAX’s proprietary remastering technology, which produces more vivid, higher-fidelity 4K HDR images on premium televisions;

• IMAX’s signature sound, which was specially recreated and calibrated for the home to unlock more immersive audio.

To be certified as IMAX Enhanced, leading consumer electronics manufacturers spanning 4K/8K televisions, projectors, A/V receivers, loudspeakers, soundbars, smartphones, personal computers, tablets, and more must meet a carefully prescribed set of audiovisual performance standards, set by a certification committee, along with some of Hollywood’s leading technical specialists.

At present, certified global device partners include Sony Electronics, Hisense, TCL, LG, Phillips, Hewlett Packard, Xiaomi, Sound United and Honor, among others.

As of December 31, 2024, more than 300 IMAX Enhanced titles had been released across six of the biggest streaming platforms worldwide:

Disney+, Sony Pictures CORE, Tencent Video, iQiyi, Yonku and Rakuten TV.

Over 15 million IMAX Enhanced certified devices are estimated to be in use today.

IMAX Streaming and Consumer Technology is part of the Company’s next evolutionary step to extend the IMAX brand and technology further into new use cases, including streaming entertainment and the consumer electronics market.

(Refer to “Risk Factors ― Failure to respond adequately or in a timely fashion to changes and advancements in technology could negatively affect the Company’s business.” and “― The Company is undertaking brand extensions and new business initiatives, and the Company’s investments and efforts in such business evolution may not be successful.”)

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:

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.

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 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 are maintained faithfully and experienced as intended on consumer devices.

As of December 31, 2025, IMAX Enhanced certified devices in-market are 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 been integrated into the IMAX Enhanced program, streamlining operations and enabling partners to deliver premium viewing experiences validated through IMAX’s proprietary quality standards.

IMAX’s SCT represents an extension of the IMAX brand and technology beyond traditional theatrical programming into live streaming for connected theaters and live and on-demand streaming home entertainment experiences.

Leveraging IMAX’s globally recognized brand and proprietary technology, IMAX Enhanced is designed to drive consumer engagement and create incremental return on investment for content owners and rights holders.

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;

renting the Company’s proprietary 2D and 3D large-format film cameras;

and offering production advice and technical assistance to both documentary and Hollywood filmmakers.

and the provision of management services to three other theaters.

IMAX NETWORK AND BACKLOG

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(3) Period-to-period changes in the table above are reported net of the effect of permanently closed locations.

IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations, of which there are 1,735 IMAX Systems operating as of December 31, 2024, representing a market penetration of only 48%.

IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 commercial locations, of which there are 1,796 commercial IMAX Systems operating as of December 31, 2025, representing a market penetration of only 40%.

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

As of December 31, 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) (2024 ― 76%).

More specifically, the Company’s network across all countries outside of the United Sates, Canada, and Greater China grew 8.4% in 2025.

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

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793 118 885 1,796

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

(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.

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771 126 838 1,735

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

(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.

The following table provides detailed information about the Company’s system backlog as of December 31, 2024 and 2023:

December 31, 2024

December 31, 2023

Systems Dollar

Values Number of

Systems Dollar

(In thousands of U.S.

Dollars, except number of systems)

Sales Arrangements (1)

153 11 $ 151,913 $ 9,340 148 16 $ 158,318 $ 16,068

Hybrid JRSA (2)

94 — 71,723 — 102 1 76,173 910

Traditional JRSA (2)(3)(4)

108 74 425 3,601 132 51 425 1,975

Total 355 85 $ 224,061 $ 12,941 382 68 $ 234,916 $ 18,953

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

(2) The consideration owed under traditional JRSAs is typically a percentage of contingent box office receipts rather than a fixed upfront fee or fixed annual minimum payments.

Accordingly, such arrangements do not usually have a dollar value in backlog;

however, hybrid JRSAs typically provide for contracted upfront payments and therefore carry a backlog value based on those payments.

(3) Includes 31 IMAX Systems (2023 ― 30) where certain of the Company’s contracts contain options for the customer to elect to upgrade system type 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.

(4) Includes one IMAX System that will be donated in the first quarter of 2025 to the University of Southern California’s School of Cinematic Arts.

The IMAX System will give students the opportunity to learn about the latest innovations in filmmaking, set design, sound and post-production.

The backlog reflects the minimum number of commitments for IMAX Systems according to signed contracts.

The dollar value fluctuates depending on the number of new arrangements signed from year-to-year, which adds to backlog, and the installation and acceptance of IMAX Systems and the settlement of contracts, both of which reduce backlog.

The dollar value of backlog typically represents the fixed contracted revenue according to the signed IMAX System sale and lease agreements that the Company expects to recognize as revenue upon installation and acceptance of the associated system, as well as an estimate of variable consideration in sales arrangements.

The value of backlog does not include amounts allocated to maintenance and extended warranty revenues or revenue from systems in which the Company has an equity interest, operating leases, and long-term conditional theater commitments.

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.

Once the determination is made that the customer will not proceed with installation, the agreement with the customer is terminated or amended.

If the agreement is terminated, once the Company and the customer are released from all their future obligations under the agreement, all or a portion of the initial rents or fees that the customer previously made to the Company are recognized as revenue.

(Refer to “Risk Factors ― The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A.)

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 joint revenue sharing arrangement to a sale) after signing, but before installation.

Current backlog information reflects all known elections.

The following tables provide detailed information about the Company’s system backlog by arrangement type and geographic location as of December 31, 2025 and 2024:

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203 92 139 434

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

(2) Worldwide Total of 440 includes 250 new IMAX Laser Systems and 85 upgrades of existing locations to IMAX Laser Systems.

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

(2) Worldwide backlog total of 434 systems includes 216 new IMAX Laser Systems and 131 upgrades of existing locations to IMAX Laser Systems.

(3) Worldwide backlog total of 434 systems includes 303 new systems and 131 upgrades.

December 31, 2024

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182 94 164 440

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

(2) Worldwide Total of 450 includes 239 new IMAX Laser Systems and 73 upgrades of existing locations to IMAX Laser Systems.

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

(2) Worldwide backlog total of 440 systems includes 250 new IMAX Laser Systems and 85 upgrades of existing locations to IMAX Laser Systems.

(3) Worldwide backlog total of 440 systems includes 355 new systems and 85 upgrades.

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.

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 72% of IMAX System arrangements in backlog as of December 31, 2025 are scheduled to be installed in international markets (2024 ― 84%).

(Refer to “Risk Factors―The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A.)

Signings and Installations

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Total IMAX System Signings (2)

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

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

(2) Includes 78 IMAX System upgrades (2024 ― 73 upgrades).

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Total IMAX System Installations (3)

(1) Seven IMAX Systems were relocated from their original location (2023 ― three).

(1) Six IMAX Systems were relocated from their original location (2024 ― seven).

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.

(2) Includes Sales, Hybrid Sales and Sales-Type Lease deal types

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

(3) Includes 62 IMAX System upgrades (2024 ― 69 upgrades).

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This allocation is based on observable prices when the Company sells the good or service separately.

In circumstances when a selling price is not directly observable, the Company will estimate the standalone selling price using information available, including market assessments and expected cost plus margin.

The Company’s “System Obligation” consists of the following:

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(ii) services associated with the IMAX System, including theater design support, the supervision of installation services, and projectionist training;

and (iii) a license to use the IMAX brand to market the location.

and (iii) a license to use the IMAX brand to market

the location.

The System Obligation, as a group, is a distinct performance obligation.

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The Company has established standalone prices for the System Obligation and maintenance and extended warranty services, as well as for film license arrangements.

The Company uses an adjusted market assessment approach for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices.

The Company uses the adjusted market assessment and cost-plus approaches for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices.

The Company considers multiple factors including its historical pricing practices, product class, market competition and geography.

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The amount of the estimated minimum payment increase is then recorded at its present value as of the date of recognition using the customer’s implied borrowing rate.

(Refer to “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”).

Variable consideration related to the level of the customer’s box office receipts is outside of the Company’s control as it is dependent upon the future commercial success of the films released to the IMAX network.

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The resulting amount of variable consideration is then recorded at its present value as of the date of recognition using a risk-weighted discount rate, subject to collectability.

The Company reviews its variable consideration assets on at least a quarterly basis considering recent box office performance and, when applicable, updated box office projections for future periods.

(Refer to “Risk Factors - The Company’s systems revenue can vary significantly from its cash flows under IMAX System sales or lease arrangements”).

The Company reviews its variable consideration assets on at least a quarterly basis considering recent global box office performance and, when applicable, updated global box office projections for future periods.

(Refer to “Risk Factors - The Company’s systems revenue can vary significantly from its cash flows under IMAX System sales or lease arrangements” in Part I, Item 1A.)

Current Expected Credit Losses

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

The Company records write-downs for excess and obsolete inventory based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace, and anticipated market acceptance of the Company’s current and pending IMAX Systems.

The Company records write-downs for excess and obsolete inventories based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace, and anticipated market acceptance of the Company’s current and pending IMAX Systems.

(Refer to Note 7 to “Consolidated Financial Statements” in Part II, Item 8.)

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Goodwill is not amortized but is tested annually for impairment at the reporting unit level in the fourth quarter of the year and between annual tests if indicators of potential impairment exist.

These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the reporting unit’s business, including projections of future box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a reporting unit.

For reporting units with goodwill, an impairment loss is recognized for the amount by which the reporting unit’s carrying value, including goodwill, exceeds its fair value.

These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the unit’s business, including projections of future global box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a unit.

For reporting units with goodwill, an impairment loss is recognized for the amount by which the unit’s carrying value, including goodwill, exceeds its fair value.

The carrying value of each reporting unit is based on a systematic and rational allocation of certain assets and liabilities.

The fair value of each reporting unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed.

The fair value of each unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed.

The discount rates used in the cash flow model are derived based on the Company’s estimated weighted average cost of capital.

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Actual results may materially differ from management’s estimates.

Assumptions and estimates about future cash flows and discount rates are complex and often subjective and require significant judgment.

The analysis is dependent on internal forecasts, estimation of the long-term rates of revenue growth for the Company’s reporting units, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units.

During the fourth quarter of 2025, the Company performed a goodwill impairment test, resulting in a goodwill impairment charge of $7.0 million against the portion of goodwill related to the SSIMWAVE reporting unit.

The impairment charge was due to a change in the Company’s market focus, resulting in a downward adjustment to the SSIMWAVE reporting unit’s expected cash flows based on the discounted cash flow method.

For the impairment test of the SSIMWAVE reporting unit, the Company utilized a discount rate of 15.2% and a revenue growth rate of 25.0% in certain years which represent the most significant assumptions in the model.

(Refer to Note 12 to “Consolidated Financial Statements” in Part II, Item 8.)

Long-Lived Assets

Long-lived assets are grouped and reviewed for impairment at the lowest level for which identifiable cash flows are largely independent whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable.

Long-lived assets include property, plant and equipment and other intangible assets, and are grouped and reviewed for impairment at the lowest level for which identifiable cash flows are largely independent whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable.

In such situations, long-lived assets are considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group).

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Factors that are considered when evaluating long-lived assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used.

The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of box office results and, in certain situations, ancillary revenues.

The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of global box office results and, in certain situations, ancillary revenues.

If management’s projections of future net cash flows resulting from the exploitation of a film indicate that the carrying value of the film asset is not recoverable, the film asset is written down to its fair value.

Valuation of Identifiable Intangible Assets Acquired

Management applies significant judgment in estimating the fair value of intangible assets.

The estimates used to value the identifiable intangible assets acquired through the acquisition of SSIMWAVE are based in part on historical experience and information obtained from the management of the acquired business.

The developed technology and in-process research and development acquired are valued utilizing income approaches, notable relief from royalty and multi-period excess earnings methods using discounted cash flow models.

The significant estimates used in valuing these intangible assets include assumptions related to revenue and gross margin forecasts, attrition rate, royalty rate and discount rates.

The estimates of fair value are based on assumptions believed to be reasonable at that time.

If management made different estimates or judgments, material differences in the fair values of the net assets acquired may result.

The estimates of fair value are based on assumptions believed to be reasonable at that time.

If management made different estimates or judgments, material differences in the fair values of the net assets acquired may result.

(Refer to Note to “Consolidated Financial Statements” in Part II, Item 8.)

Share-Based Compensation

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The achievement of the Adjusted EBITDA and TSR targets in these PSUs is determined over a three-year performance period.

At the conclusion of the three-year performance period, the number of PSUs that ultimately vest can range from 0% to a maximum vesting opportunity of 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance versus the established Adjusted EBITDA and TSR targets.

For PSUs granted as of December 31, 2025, the number of PSUs that ultimately vest can range from 0% to a maximum vesting opportunity of 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance versus the established Adjusted EBITDA and TSR targets, at the end of the three-year performance period.

The grant date fair value of PSUs with Adjusted EBITDA targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant.

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Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period that such determination is made.

(Refer to “Capital Stock — Shared-Based Compensation ” in Note 16 to “Consolidated Financial Statements” in Part II, Item 8.)

(Refer to “Capital Stock — Share-Based Compensation ” in Note 16 to “Consolidated Financial Statements” in Part II, Item 8.)

Deferred Income Tax Assets

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As a result, an additional valuation allowance could be required, which would have an adverse impact on the Company’s effective income tax rate and results.

Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which a valuation allowance is recorded, the Company may reverse all or a portion of the valuation allowance in

that jurisdiction.

In such situations, the adjustment made to the deferred tax asset would have a favorable impact on the Company’s effective income tax rate and results in the period such determination was made.

(Refer to “Income Taxes — Deferred Tax Assets and Deferred Tax Liabilities and Valuation Allowance ” in Note 11 to “Consolidated Financial Statements” in Part II, Item 8.)

(Refer to “Income Taxes — Deferred Tax Assets and Deferred Tax Liability and Valuation Allowance ” in Note 11 to “Consolidated Financial Statements” in Part II, Item 8.)

Uncertain Tax Positions

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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.

The CEO is the Company’s Chief Operating Decision Maker (“CODM”), as such term is defined under United States Generally Accepted Accounting Principles (“U.S.

The CODM assesses segment performance based on segment revenues and gross margins.

Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

The Company has 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 reported within All Other.

Additional information on segment reporting is provided in Note 20 to “Consolidated Financial Statements” in Part II, Item 8.

Results of Operations for the Years Ended December 31, 2025 and 2024

The Company’s 2024 results of operations reflected the diversity of content and strength of IMAX's business model as well as the recognition of IMAX as a premium, global, out-of-home partner for filmmakers and content owners.

The Company achieved revenues of $352.2 million, a gross margin of 54% and net income attributable to common shareholders of $26.1 million.

In addition, the Company achieved the high end of its system installation target with 146 IMAX Systems installed in 2024, compared to 128 system installations in 2023, an increase of 14%.

The Company signed agreements for 130 IMAX Systems in 2024, with 89% in international markets, and generated $70.8 million in net cash from operations, compared to $58.6 million in the prior year, an increase of 21%.

Net Income and Adjusted Net Income Attributable to Common Shareholders

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Revenues and Gross Margin

For the year ended December 31, 2024, the Company’s revenues and gross margin decreased by $22.6 million, or 6%, and $24.1 million, or 11%, respectively, when compared to same period in 2023, principally due to a lower level of IMAX box office driven in part by the impact of the 2023 Hollywood actors’ and writers’ strike on the 2024 film slate and a less favorable mix of content across the Company’s global network, predominantly in China (see below).

These year-over-year impacts were partially offset by higher revenues from alternative content, including the sale of commercial and streaming rights for the IMAX documentary The Blue Angels .

A main factor in the Company’s global box office being lower in 2024 versus 2023 was the weaker-than-expected performance of films in China, particularly with regard to local language blockbuster titles.

Less than two months into 2025, however, the movie industry has seen a very significant turnaround in China.

Led by the Mandarin-language blockbuster Ne Zha 2 , IMAX screens in China have broken all previous box office records for the Chinese New Year period, and have already surpassed the Company’s best-ever Q1 box office in China (from 2019).

In fact, in less than 3 weeks in February 2025, IMAX screens in China generated more local language box office than IMAX China did in the entire year of 2024.

For the year ended December 31, 2025, the Company’s revenues and gross margin increased by $58.0 million, or 16%, and $56.0 million, or 29%, respectively, when compared to the year ended December 31, 2024, principally due to stronger IMAX global box office along with higher system sales installation revenue.

The 2025 global box office performance was driven by the Company capturing a higher global box office share of Hollywood films, driven in large part by the record number of Filmed For IMAX titles, and a significantly higher contribution from local language content, including a record Chinese New Year.

In 2025, the Company installed 160 systems, including 98 new systems, resulting in network growth of 3.2%.

The following table presents the Company’s revenue, gross margin and gross margin percentage by reportable segment for the years ended December 31, 2025 and 2024:

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Total $ 410,212 $ 352,208 $ 246,190 $ 190,200 60 % 54 %

(1) All Other includes the results from Streaming and Consumer Technology and other ancillary activities.

(1) All Other includes the results from SCT and other ancillary activities.

Segment Operating Results

The Company’s segment operating results are presented based on how the CODM assesses operating performance and internally reports financial information.

The Company’s segment operating results are presented based on how the Chief Operating Decision Maker (“CODM”) assesses operating performance and internally reports financial information.

See Note 20 to “Consolidated Financial Statements” in Part II, Item 8 for additional information on the Company’s reportable segments.

Content Solutions

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 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.

For the year ended December 31, 2024, Content Solutions segment revenues and gross margin decreased by $2.0 million, or 2%, to $124.7 million from $126.7 million and $7.6 million, or 10%, to $66.5 million from $74.1 million, respectively, when compared to the same period in 2023.

For the year ended December 31, 2024, GBO generated by IMAX films totaled $900.7 million, a 15% decrease from $1.1 billion in 2023, driven mostly by lower international GBO reflecting fewer local language blockbusters as well as the negative impact of the 2023 Hollywood actors’ and writers’ strike on the 2024 film slate.

IMAX’s 2024 GBO was generated by the exhibition of 129 films, which consisted of 118 new films (2023 — 95), and 11 re-releases (2023 — one), including Dune:

Part Two ($145 million).

Deadpool & Wolverine ($84 million) , Godzilla x Kong:

The New Empire ($41 million) , Alien:

Romulus ($39 million), Inside Out 2 ($39 million), Gladiator ($31 million), and the IMAX exclusive re-release of Interstellar ($22 million) .

For the year ended December 31, 2025, Content Solutions segment revenues and gross margin increased by $26.5 million, or 21%, to $151.3 million from $124.7 million and $33.2 million, or 50%, to $99.7 million from $66.5 million, respectively, when compared to the same period in 2024.

For the year ended December 31, 2025, global box office generated by IMAX films totaled $1.28 billion, a 40% increase from $0.92 billion in 2024.

This growth is the result of the Company’s focus on a diversified global programming and marketing strategy to maximize global box office.

During 2025, IMAX global box office was generated by the exhibition of 126 films and other content (122 new films and 4 re-releases), including the following Hollywood titles:

Fire and Ash ($112 million), F1:

The Movie ($98 million), Mission:

Impossible - The Final Reckoning ($76 million), Zootopia 2 ($59 million), Superman ($57 million), The Fantastic Four:

First Steps ($49 million), and Sinners ($41 million).

In addition, for the year ended December 31, 2025, the local language films exhibited across the IMAX network generated over $405.4 million in GBO, representing 32% of the Company’s total GBO.

Leading local language titles distributed across the IMAX network during 2024 included the Chinese films Pegasus 2 and Yolo , the Japanese film Haikyu!!

, and the Korean concert film, IM HERO:

The Stadium .

The impact on revenues from the lower box office earned year-over-year was mostly offset by $10.5 million in revenue earned from the sale of worldwide rights to the Company’s original documentary, The Blue Angels , to Amazon Content.

The Chinese local language film, Ne Zha 2 , the highest grossing film ever in China, became the highest grossing IMAX release in 2025 ($167 million).

The Japanese local language anime film Demon Slayer:

Infinity Castle ($96 million) became the highest grossing IMAX release of all time in Japan.

During 2024, IMAX global box office was generated by the exhibition of 129 films and other content (118 new films and 11 re-releases).

The increase in revenue year over year from higher IMAX global box office were partially offset by lower documentary revenue year over year as 2024 benefitted from the revenue earned from the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels , to Amazon Content Services LLC.

In 2025, the Company released 15 movies that were filmed with IMAX proprietary cameras ( Filmed For IMAX), including Sinners , F1:

The Movie , Mission:

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

First Steps and Tron:

IMAX captured approximately 20% or more of the opening weekend domestic box office on these titles in 2025, despite accounting for only approximately 1% of available domestic screens.

In 2025, the average Filmed For IMAX domestic opening weekend indexing was approximately 15% compared to 13% in 2024.

In addition to the level of revenues, Content Solutions segment gross margin is also influenced by the costs associated with the films and other content 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 year ended December 31, 2024, gross margin percent was 53% compared to 58% for the same period in 2023 with the decrease being primarily driven by the lower level of GBO earned in the year, coupled with higher production and marketing costs .

Additionally, in 2024, the Company had a higher mix of self-produced content being released, including The Blue Angels, which carries a lower gross margin.

For the year ended December 31, 2025, gross margin percent was 66% compared to 53% for the same period in 2024.

The increase was driven by a higher level of IMAX global box office, which

led to higher revenue flow through and lower costs associated with documentary content, as there were no new releases in 2025, that carries a lower margin.

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 detailed 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 years ended December 31, 2025 and 2024:

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Total 82 $ 75,738 63 $ 62,260

Included in the table above are seven IMAX Systems which were relocated from their original locations (2023 ― two IMAX Systems).

Included in the table above are six IMAX Systems which were relocated from their original locations (2024 ― seven IMAX Systems).

When an IMAX 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 an IMAX System is relocated, the original location is upgraded to an IMAX Laser System.

For the year ended December 31, 2024, Technology Products and Services segment revenue and gross margin decreased by $18.2 million or 8% to $216.1 million from $234.3 million and $14.4 million or 11% to $115.6 million from $129.9 million, respectively, when compared to the prior year.

The lower level of revenue is primarily driven by a decrease of $13.2 million in Revenues — Technology Rentals, as a result of less IMAX GBO earned from IMAX Systems under JRSAs.

For the year ended December 31, 2024, GBO earned from IMAX Systems under JRSAs was $540.7 million, which decreased by $74.1 million or 12% from the prior year of $614.8 million.

Also contributing to the lower level of revenue was a decrease in the number of IMAX Systems recognized under sales arrangements, as well as a lower level of IMAX System renewals and after-market sales.

These decreases in revenue were partially offset by higher maintenance revenue recognized during the period and a higher average revenue recognized per system due to the mix of IMAX System configurations.

For the year ended December 31, 2024 gross margin percent was 53% compared to 55% in the prior period with the decrease being driven by the lower level of IMAX box office year-over-year, mostly offset by the higher average revenue per system for the current year IMAX Systems installed under sales and sales-type arrangements.

For the year ended December 31, 2024, All Other revenue and gross margin decreased by $2.4 million and $2.2 million, respectively, when compared to the same period in 2023, which principally reflects a decrease in revenue related to IMAX Enhanced offerings.

For the year ended December 31, 2025, Technology Products and Services segment revenue and gross margin increased by $35.2 million or 16% and $27.7 million or 24%, respectively, when compared to the prior year.

The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office dependent, and upfront revenue recognized on systems of $9.2 million, resulting from a higher number of system installations coupled with annual variable consideration assessments.

Rental revenues increased by $18.9 million or 30%, driven by IMAX GBO generated by locations under JRSAs, which increased by $141.8 million or 34% when compared to the prior year, from $418.4 million to $560.2 million.

Also contributing to the increase in revenue was an increase in after-market revenues of $4.6 million, primarily led by higher sales of 3D glasses associated with the release of Avatar:

Fire and Ash .

For the year ended December 31, 2025 gross margin percent was 57% compared to 53% in the prior year, which primarily reflects the positive incremental flow through of the higher level of box office to JRSA revenues as described above.

For the year ended December 31, 2025, All Other revenue and gross margin decreased by $3.7 million and $4.9 million, respectively, when compared to the same period in 2024, which principally reflects the results of the Company’s SCT business which was re-positioned and relaunched in late 2025 under the brand of IMAX Enhanced.

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the years ended December 31, 2024 and 2023:

The following table presents information about the Company’s Selling, General and Administrative (“SG&A”) expenses for the years ended December 31, 2025 and 2024:

Years Ended December 31, Variance

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(1) A portion of total share-based compensation expense is also recognized within Cost and Expenses Applicable to Revenue and Research and development.

Refer to “Capital Stock — Shared-Based Compensation” in Note 16 to “Consolidated Financial Statements” in Part II, Item 8.

Refer to “Capital Stock — Share-Based Compensation” in Note 16 to “Consolidated Financial Statements” in Part II, Item 8.

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

The lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions, as well as adjustments in certain estimates relating to compensation payouts in connection with our Streaming and Consumer Technology division and the Company’s overall performance in respect of its corporate targets, which were partially offset by the impact of higher cost of operations.

For the year ended December 31, 2023, Selling, General and Administrative Expenses included $3.3 million in non-recurring transaction expenses associated with the proposal to acquire the outstanding shares in IMAX China.

As a percentage of revenue, Selling, General and Administrative Expenses excluding share-based compensation improved to 32% as compared to 33% in 2023, which reflected management’s continued focus on cost discipline that enabled the 2024 percentage to slightly improve even while revenues declined 6% year-over-year.

SG&A expenses year-over-year reflect a consistent level, and consist primarily of compensation costs, travel, fees and other general corporate expenditures.

For the year ended December 31, 2025, SG&A includes 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 year, the Company recognized $2.7 million in benefits resulting from an Employee

Retention Credit as a reduction to SG&A expenses, which partially offset the higher compensation costs noted.

Year-over-year the benefits of the Employee Retention Credit are partially offset by adjustments recorded in the prior year relating to payouts in connection with a prior year acquisition.

As a percentage of revenue, SG&A expenses excluding share-based compensation improved to 27% as compared to 32% in 2024, which reflects management’s continued focus on cost discipline as expenses increased at a much lower rate than revenue.

Research and Development

The Company believes that it is a premier global technology platform for awe-inspiring entertainment and events with significant proprietary expertise in digital and film-based projection and sound system component design, engineering, and imaging technology, particularly in laser-based technology.

A significant portion of the Company’s research and development efforts has been focused on the IMAX Laser Systems, which the Company believes are capable of illuminating the largest screens in the IMAX network and provides greater brightness and clarity, higher contrast, a wider color gamut and deeper blacks, while consuming less power and lasting longer than existing digital technology, to ensure that the Company continues to provide the highest quality, premier cinematic experience available to consumers.

The Company has continued research and development aimed at creating more affordable laser-based solutions with various screen sizes for its commercial multiplex customers.

The Company also continues to invest in new film cameras and other technologies to bring bespoke capabilities and innovative technology to its differentiated 15/65mm camera fleet.

The Company recently produced the first of its all-new fleet of IMAX 65mm film cameras.

The Company’s engineering team has spent two years developing new film cameras that offer spectacular image quality while incorporating new electronics and software, a more modern design, improved functionality and reduced noise by 30%.

For the year ended December 31, 2024, Research and Development expenses were $5.1 million, representing a decrease of $5.0 million, or 50%, when compared to $10.1 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.

The Company intends to continue research and development to further evolve its end-to-end technology.

This includes research and development related to film and digital camera development, film remastering software enhancements, global IMAX network connectivity and projector technology image and sound innovation.

Within the Company’s Streaming and Consumer Technology business, there is ongoing research and development in perceptual metrics involving novel measurement and optimization techniques.

Investments are also being made to expand existing and/or develop new technologies which are expected to further enhance video quality, delivery, and creation across devices.

Furthermore, the Company intends to invest in activities that will capture opportunities to create/build AI and automation into its operations and processes.

As of December 31, 2024 and 2023, 89 and 86 of the Company’s employees were connected with research and development projects, respectively.

Credit Loss (Reversal) Expense, Net

For the year ended December 31, 2024, the Company recorded a credit loss reversal of $1.0 million, as compared to a credit loss expense of $1.8 million recognized in the prior year.

This reversal of the credit loss provision in 2024 resulted from an increase in collections of the Company’s account receivables as exhibition partners continue to improve their cash position post pandemic.

Consolidated Financial Statements are prepared and involve estimates about the future.

For the year ended December 31, 2025, Research and development expenses were $5.8 million, representing an increase of $0.7 million, or 14%, when compared to $5.1 million during the same period in the prior year.

The lower Research and development expenses in 2024 reflects the capitalization of costs in accordance with the achievement of technological feasibility of the Company’s new film cameras and related technologies.

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 year ended December 31, 2025, the Company recorded a credit loss expense of $0.7 million, as compared to a credit loss reversal of $1.0 million recognized in the prior year.

The change was primarily attributable to specific provisions related to certain exhibitors in Greater China with whom the Company terminated and/or transferred agreements during the year.

Overall, stronger global 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 IMAX’s strategic initiatives in global distribution and exhibition.

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 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.

Restructuring and other charges

For the year ended December 31, 2024, the Company recorded restructuring and other charges of $3.7 million, representing an increase of $0.8 million, or 27%, when compared to $2.9 million during the same period in the prior year.

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

R estructuring and other charges are presented as a separate line item in the Consolidated Statements of Operations to enhance transparency and provide stakeholders with a better understanding of the Company’s financial performance.

Specifically, in 2024, the Company incurred $2.4 million, compared to $1.3 million in the prior year, in connection with the assessment of its organizational structure and implementation of such plan, including the elimination of redundant roles and addressing spans and layers to capture efficiencies and centralize certain operational roles.

Additionally, the Company incurred $1.3 million of non-recurring fees related to the assessment of its corporate structure and the resulting internal asset sale.

In 2023, the Company recognized executive transition costs of $1.4 million associated with the departure of the President, IMAX Entertainment and Executive Vice President of the Company.

In 2024, there were no expenses recorded associated with executive transition costs.

Interest Expense, net

For the year ended December 31, 2024, interest expense was $8.1 million, with $269.1 million of year-end total debt, representing an increase of $1.3 million, or 19%, when compared to interest expense of $6.8 million with $257.2 million of year-end total debt in the prior year.

This increase primarily reflects a higher average level of outstanding borrowings under the Credit Facility during the year.

(Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8.) For the year ended December 31, 2024, interest income was $2.2 million compared to $2.5 million in the prior year.

(Refer to Note 4 to “Condensed Consolidated Financial Statements” in Part II, Item 8.)

Restructuring Charges and Other Impairments

For the year ended December 31, 2025, the Company recorded $2.5 million (2024 — $3.7 million) of Restructuring Charges and Other Impairments.

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

Restructuring Charges and Other Impairments are presented as a separate line item in the Consolidated Statements of Operations to enhance transparency and provide stakeholders with a better understanding of the Company’s financial performance.

Specifically, in 2025, the Company incurred $1.4 million (2024 — $2.4 million) of termination charges in connection with its plan to optimize its organizational structure by eliminating redundant roles, addressing spans and layers to capture efficiencies, and centralizing certain operational roles, including the restructuring of the SCT division, which includes SSIMWAVE.

Additionally, the Company incurred $0.4 million (2024 — $1.3 million) of non-recurring fees related to the assessment of its corporate structure and the resulting internal asset sale, as described in the 2024 Form 10-K, and $0.7 million in connection with the impairment of certain intangible assets impacted by restructuring activities during the year.

Goodwill Impairment

For the year ended December 31, 2025, the Company incurred $7.0 million (2024 — $nil) of goodwill impairment charges.

As noted above in the Restructuring Charges and Other Impairments section, during 2025 the Company recognized certain termination charges associated with the SSIMWAVE business that are expected to reduce ongoing overhead costs.

(Refer to “Risk Factors―The Company has been and may continue to be subject to impairment losses related to goodwill and long-lived assets.” in Part I, Item 1A and Note 12 to “Consolidated Financial Statements” in Part II, Item 8.)

Realized and Unrealized Investment (Losses) Gains

For the year ended December 31, 2025, Realized and Unrealized Investment (Losses) Gains was a loss of $0.9 million, compared to a gain of $0.1 million in the prior year.

The current year loss primarily relates to a $1.0 million loss of the Company’s investment in equity securities to bring the carrying value down to the fair value as assessed by management.

This loss was partially offset by unrealized gains related to the fair value adjustment of the company-owned life insurance.

(Refer to Note 21 to “Consolidated Financial Statements” in Part II, Item 8.)

Interest Expense and Interest Income

For the year ended December 31, 2025, interest expense was $7.4 million, representing a decrease of $0.7 million, or 9%, as compared to $8.1 million in 2024 primarily due to a lower level of borrowings under the Credit Facility and a lower average interest rate during the period as compared to the prior period.

(Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8.)

For the year ended December 31, 2025, interest income was $2.8 million compared to $2.2 million in the prior year.

Induced Conversion Expense on Settlement of Convertible Notes

During the year ended December 31, 2025, the Company recorded $15.3 million of Induced Conversion Expense on Settlement of Convertible Notes which reflects the fair value of consideration paid to holders of the 2026 0.50% Convertible Notes (the “2026 Convertible Notes”) in excess of the value to which they were entitled to receive pursuant to the original conversion terms.

Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8 for more information on this transaction.

No such expense was recognized in 2024.

For the year ended December 31, 2025, the Company recorded an income tax expense of $17.8 million (2024 — $5.0 million).

The Company’s effective tax rate for year ended December 31, 2024 of 13.3% differs from the Canadian statutory tax rate of 26.5%, primarily due to tax rate differences in foreign jurisdictions, a tax benefit related to an internal asset sale of $4.0 million, a reduction in tax reserves of $1.4 million (2023 — $0.4 million), a tax benefit related to investment tax credits of $1.2 million (2023 — $0.4 million) and other tax adjustments of $3.6 million (2023 — expense of $0.3 million).

This was offset by a net increase in the valuation allowance related to deferred taxes of $3.5 million (2023 — decrease of $0.7 million) and withholding taxes of $3.9 million (2023 — $5.2 million).

The Company’s effective tax rate for year ended December 31, 2025 of 28.1% differs from the Canadian federal statutory tax rate of 15.0% (2024 — 26.5%), primarily due to a non-deductible premium paid, and taxable capital gain incurred, on the partial settlement of the 2026 Convertible Notes and a taxable capital gain on settlement of $4.0 million and $1.5 million respectively, non-deductible goodwill impairment of $1.8 million, statutory tax rate differences of $5.2 million (2024 — $2.3 million), an increase in interest expense related to tax reserves o f $0.8 million (2024 — reduction, net of interest expense, of $1.4 million ), and withholding taxes of $4.0 million (2024 — $3.9 million ).

This was offset by a tax benefit related to investment tax credits of $1.2 million ( 2024 — $1.2 million), a net decrease in the valuation allowance related to deferred taxes of $6.0 million in respect of the use of tax attributes in reporting entities where it was concluded in prior years that it is more likely that not that the benefit from deferred taxes will not be realized (2024 — increase of $3.5 million), and other tax benefit of $1.7 million (2024 — $7.6 million including $4.0 million related to an internal asset sale) .

The remainder of the difference was due to normal course movements and non-material items.

During the year ended December 31, 2024, the Company completed an internal asset sale to more closely align its intellectual property rights with its operations.

The tax expense on the capital gains was offset by deferred tax benefits resulting in a net tax benefit

of $4.0 million.

The valuation allowance also includes a $2.3 million net tax benefit related to the internal asset sale, resulting in a total net tax benefit of $6.3 million recognized in Income Tax Expense of the Consolidated Statements of Operations.

The Company’s deferred tax liability of $12.5 million as of December 31, 2024 (2023 — $12.5 million) relates to the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested, which become payable upon the repatriation of any such earnings.

During the year ended December 31, 2024, $nil (2023 — $24.0 million) of historical earnings from a subsidiary in China were distributed and, as a result, $nil (2023 — $2.4 million) of foreign withholding taxes were paid to the relevant tax authorities.

The effective tax rate of 28.1% in 2025 reflects the impact of one-time charges in 2025 (see above for discussion of Induced Conversion Expense on Settlement of Convertible Notes and Goodwill Impairment) for which the Company did not receive any tax benefits, while 2024’s effective tax rate was unusually low at 13.3% having benefitted from an internal asset sale to more closely align intellectual property rights with its global operations.

The Company’s deferred tax liability of $12.5 million as of December 31, 2025 (2024 — $12.5 million) relates to the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinves ted, which become payable upon the repatriation of any such earnings.

During the year ended December 31, 2025, $nil (2024 — $nil) of histo rical earnings from a subsidiary in China were distributed and, as a result, $nil ( 2024 — $nil) of foreign withholding taxes were paid to the relevant tax authorities.

(Refer to Note 11 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s tax position.)

Non-Controlling Interests

The Company’s Consolidated Financial Statements include the non-controlling interest in the net income or loss of IMAX China, as well as the impact of non-controlling interests in the activity of its Original Film Fund subsidiary.

For the year ended December 31, 2024, the net income attributable to non-controlling interests of the Company’s subsidiaries was $6.6 million (2023 — $7.7 million), a decrease of 14%, or $1.1 million, year-over-year.

The decrease was primarily due to the lower IMAX box office earned in Greater China year-over-year, which decreased by 33% from $298 million in 2023 to $199 million in 2024.

For the year ended December 31, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $10.7 million (2024 — $6.6 million), an increase of 60%, or $4.0 million, year-over-year.

The increase primarily reflects the higher level of IMAX box office earned in Greater China, as described above.

CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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50,576 24,392

Net cash provided by operating activities increased $12.2 million in 2024, primarily due to an increase in cash collections, mostly from exhibitor customers, leading to a reduction in the Company’s average outstanding receivables.

This increase was partially offset by an increase in Variable Consideration receivables which includes estimates for IMAX Systems installed in 2024 and an increase in cash used for working capital expenditures.

Net cash provided by operating activities increased $56.2 million in 2025, when compared to 2024, primarily due to an increase in the net income earned in the current period primarily due to stronger IMAX global box office and a net increase in working capital.

(Refer to Note 18 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s change in other operating assets and liabilities.)

Net cash used in investing activities increased $9.4 million in 2024, primarily due to an increase in the level of investment in equipment contributed to the Company’s JRSAs with exhibitor customers.

The Company installed 83 systems under JRSAs in 2024, compared to 53 systems in 2023.

Net cash used in financing activities decreased $42.5 million in 2024, mainly driven by an increase in net borrowings under the revolving credit facilities, a decrease in cash used to repurchase common shares, and cash received resulting from employee equity transactions.

No dividends were paid in 2024.

Net cash used in investing activities increased $0.7 million in 2025, when compared to 2024, which reflects an increase in the level of investment in equipment contributed to the Company’s JRSAs with exhibitor customers and partially offset by general corporate capital expenditures.

Net cash used in financing activities increased $28.0 million in 2025, when compared to 2024, which reflects the issuance of the Convertible Notes partially offset by the repurchase of the outstanding principal of the 2026 Convertible Notes and redemption of the related capped calls and higher repayments of borrowings during the year.

(Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s change in other operating assets and liabilities.)

LIQUIDITY AND CAPITAL RESOURCES

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(i) its balances of cash and cash equivalents of $151.2 million;

(ii) the anticipated collection of trade accounts receivable, which includes amounts owed under joint revenue sharing arrangements and film remastering agreements with movie studios;

(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 receivables due in the next 12 months under sale and sales-type lease arrangements for IMAX Systems currently in operation;

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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.

As of December 31, 2024, the Company had $263.0 million in available borrowing capacity under its Sixth Amended and Restated Credit Agreement, with Wells Fargo Bank, National Association (the “Credit Agreement”), $26.4 million in available borrowing capacity under the IMAX (Shanghai) Multimedia Technology Co., Ltd.

As of December 31, 2025, the Company had $338.0 million in available borrowing capacity under its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), $27.1 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 $28.5 million in available borrowing capacity under IMAX Shanghai’s revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the “HSBC China Facility”).

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The Company’s $151.2 million balance of cash and cash equivalents as of December 31, 2025 (December 31, 2024 — $100.6 million) includes $137.4 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $97.2 million was held in the People’s Republic of China (“PRC”) (December 31, 2024 — $47.5 million).

In a prior year, 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 year ended December 31, 2024, $nil of historical earnings from a subsidiary in China were distributed (2023 — $24.0 million) and, as a result, $nil of foreign withholding taxes were paid to the relevant tax authorities (2023 — $2.4 million).

As of December 31, 2024, the Company’s Consolidated Balance Sheets include a deferred tax liability of $12.5 million (December 31, 2023 — $12.5 million) for the applicable foreign withholding taxes associated with the remaining balance of unrepatriated historical earnings that will not be indefinitely reinvested outside of Canada.

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 year ended December 31, 2025, no historical earnings from a subsidiary in China were distributed (2024 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2024 — $nil).

As of December 31, 2025, the Company’s Consolidated Balance Sheets include a deferred tax liability of $12.5 million (December 31, 2024 — $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.

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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 remastered content distributed to the IMAX network are not realized.

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 and beyond.

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 global box office performance of remastered content distributed to the IMAX network are not realized.

CONTRACTUAL OBLIGATIONS

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12,404 3,327 6,343 2,728 6

Wells Fargo Facility

Credit Facility

37,000 37,000 — — —

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745 745 — — —

2030 Convertible Notes (6)

259,422 1,922 3,750 253,750 —

Postretirement benefits obligations

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(Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.)

(5) The Convertible Notes bear interest at a rate of 0.500% per annum on the principal of $230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year.

(5) The Convertible Notes bear interest at a rate of 0.500% per annum on the remaining principal of $0.7 million.

The Convertible Notes will mature on April 1, 2026, unless earlier repurchased, redeemed or converted.

(Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.)

(6) The Convertible Notes bear interest at a rate of 0.750% per annum on the principal of $250.0 million, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2026.

The Convertible Notes will mature on November 15, 2030, unless earlier repurchased, redeemed or converted.

(Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.)

OFF-BALANCE SHEET ARRANGEMENTS

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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.

In this report, the Company presents financial measures in accordance with GAAP and also on a non-GAAP basis under the U.S.

Securities and Exchange Commission regulations.

Specifically, the Company presents the following non-GAAP financial measures as supplemental measures of its performance:

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• Adjusted EBITDA per Credit Facility;

• Adjusted SG&A 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:

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(ii) realized and unrealized investment gains or losses;

(iii) transaction-related expenses;

and (iv) restructuring and other charges, as well as the related tax impact of these adjustments.

(iii) goodwill impairment;

(iv) restructuring charges and other impairments;

(v) employee retention credits;

and (vi) induced conversion expense on settlement of convertible notes, 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.

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26,133 0.47 22,454 0.42

Unrealized investment gains

Unrealized investment losses (gains)

867 0.02 (127) —

Transaction-related expenses

Goodwill impairment

7,000 0.13 — —

Restructuring and other charges (2)

Restructuring charges and other impairments

2,447 0.04 3,749 0.07

Employee retention credits

(3,971) (0.07) — —

Induced conversion expense on settlement of convertible notes

15,264 0.27 — —

Tax impact on items listed above

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(1) Reflects amounts attributable to common shareholders.

(2) Reflects restructuring related costs in connection with capturing efficiencies, centralizing certain operational roles and costs incurred in connection with the Company’s internal asset sale.

(Refer to Note 25 to “Consolidated Financial Statements” in Part II, Item 8.)

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 allowed by 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 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.

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and (iv) amortization of deferred financing costs.

Adjusted EBITDA per Credit Facility is defined as EBITDA excluding:

Total 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) transaction-related expenses;

(iv) restructuring and other charges costs;

and (v) 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 table below.

Twelve Months Ended December 31, 2024

(iii) restructuring charges and other impairments;

(iv) write-downs, net of recoveries, including goodwill, asset impairments and credit loss expense or reversal;

and (v) induced conversion expense on settlement of convertible notes.

Reconciliations of net income, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility are presented in the table below.

(In thousands of U.S.

Attributable to

Non-controlling Interests Attributable to Common Shareholders

Twelve Months Ended December 31, 2025

Reported net income

$ 32,702 $ 6,643 $ 26,059

Add (subtract):

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Amortization of deferred financing costs (1)

1,969 — 1,969

EBITDA 130,301

Share-based and other non-cash compensation 26,824

Unrealized investment gains

(127) — (127)

Write-downs, including asset impairments and credit loss reversal

2,999 524 2,475

Restructuring and other charges (2)

3,749 — 3,749

Adjusted EBITDA per Credit Facility $ 138,936 $ 14,191 $ 124,745

Unrealized investment losses

Restructuring charges and other impairments

Write-downs, including goodwill, asset impairments and credit loss expense

Induced conversion expense on settlement of convertible notes

Total Adjusted EBITDA

Non-controlling interest

Adjusted EBITDA per Credit Facility - attributable to common shareholders

(1) The amortization of deferred financing costs is recorded within Interest Expense in the Consolidated Statements of Operations.

(2) Reflects restructuring related costs in connection with capturing efficiencies, centralizing certain operational roles and costs incurred in connection with the Company’s internal asset sale.

(Refer to Note 25 to “Consolidated Financial Statements” in PART II, Item 8.)

The Company also adjusts Selling, General and Administrative Expenses to exclude a portion of share-based compensation and related payroll taxes.

Management uses non-U.S.

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-U.S.

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 U.S.

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.

The Company also adjusts SG&A 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 SG&A Expenses, the most directly comparable GAAP measure presented in the Consolidated Statement of Operations in Part I, Item 1, to Adjusted Selling, General and Administrative Expenses is presented in the table below.

Years Ended December 31,

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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-K

Item 7. Management’s Discussion and Analysis