What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2025-10-23 · 269 added, 458 removed, 885 unchanged (45% of the section changed)

1 unchanged sentence

The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report:

Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024

Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024

Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025

Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2026 and 2025

Notes to Condensed Consolidated Financial Statements

3 unchanged sentences

Dollars, except share amounts)

September 30, December 31,

March 31, December 31,

Cash and cash equivalents $ 145,995 $ 151,168

6 unchanged sentences

Property, plant and equipment, net of accumulated depreciation 240,890 242,910

Other assets 24,002 22,441

Lease incentives and other assets

27,240 24,820

Deferred income tax assets, net of valuation allowance 12,675 12,577

34 unchanged sentences

Dollars, except per share amounts)

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Three Months Ended

Technology sales

6 unchanged sentences

81,379 86,667

106,654 91,452 285,005 259,536

Costs and expenses applicable to revenues

Technology sales

9,454 10,605 26,029 24,594

Image enhancement and maintenance services

3 unchanged sentences

45,811 53,176

67,271 51,019 174,049 141,835

Selling, general and administrative expenses

1 unchanged sentence

Research and development

1,505 ( 265 ) 4,365 3,953

Amortization of intangible assets

1,906 1,544 5,446 4,208

Credit loss expense (reversal), net

Credit loss reversal, net

( 460 ) ( 126 )

Restructuring and other charges

Restructuring charges and other impairments

Income from operations

29,045 19,411 60,125 34,350

Realized and unrealized investment gains

Retirement benefits non-service recovery (expense)

Retirement benefits non-service expense

( 67 ) ( 70 )

Interest income

557 625 2,211 1,720

Interest expense

1 unchanged sentence

Income before taxes

27,821 17,719 56,689 29,374

Income tax expense

( 2,421 ) ( 7,285 )

22,616 15,343 43,001 25,836

Net income attributable to non-controlling interests

12 unchanged sentences

(In thousands of U.S.

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Three Months Ended

$ 6,071 $ 8,150

Other comprehensive income before tax

Unrealized net (loss) gain from cash flow hedging instruments

Unrealized net loss from cash flow hedging instruments

( 631 ) ( 715 )

Realized net loss from cash flow hedging instruments

Realized net (gain) loss from cash flow hedging instruments

( 342 ) 1,335

Foreign currency translation adjustments

Amortization of defined benefit and postretirement benefit plans net gain

( 167 ) ( 205 )

Defined benefit and postretirement benefit plans 2,090 ( 149 ) 1,744 ( 547 )

Total other comprehensive income before tax

2,624 4,125 6,731 1,528

Income tax (expense) benefit related to other comprehensive income

( 268 ) ( 92 ) ( 1,076 ) 328

Income tax recovery related to other comprehensive income

Other comprehensive income, net of tax

2,356 4,033 5,655 1,856

Comprehensive income

24,972 19,376 48,656 27,692

Comprehensive income attributable to non-controlling interests

6 unchanged sentences

(In thousands of U.S.

Nine Months Ended

September 30,

Three Months Ended

Operating Activities

4 unchanged sentences

Amortization of deferred financing costs

Credit loss expense (reversal), net

Write-downs, including asset impairments

Deferred income tax expense (recovery)

Credit loss reversal, net

( 460 ) ( 126 )

Write-downs, including asset impairments

Deferred income tax recovery

Share-based and other non-cash compensation

19,050 17,261

Unrealized foreign currency exchange gain

( 170 ) ( 527 )

Unrealized foreign currency exchange loss

Realized and unrealized investment gain

5 unchanged sentences

( 5,353 ) ( 7,396 )

Deferred revenue

Lease incentives provided to exhibitor customers

( 8,671 ) ( 1,029 )

Deferred revenue

Changes in other operating assets and liabilities

1 unchanged sentence

Net cash provided by operating activities

97,694 59,352

Investing Activities

12 unchanged sentences

( 19,000 ) ( 10,000 )

Debt issuance costs related to convertible notes

Credit facility amendment fees paid

1 unchanged sentence

( 164 ) ( 209 )

Repurchase of common shares

Repurchase of common shares - IMAX China

Taxes withheld and paid on employee stock awards vested

1 unchanged sentence

Common shares issued - stock options exercised

Principal payment under finance lease obligations

Net cash used in financing activities

Net cash (used in) provided by financing activities

( 2,762 ) 4,234

Effects of exchange rate changes on cash

Increase in cash and cash equivalents during period

Decrease in cash and cash equivalents during period

( 5,173 ) ( 3,523 )

7 unchanged sentences

(In thousands of U.S.

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Adjustments to capital stock:

Balance, beginning of period

Dollars, except share data)

Three Months Ended March 31, 2026

Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Capital Stock

Statutory Surplus Reserve

Accumulated Deficit

Non-controlling Interests

Balance as of December 31, 2025

53,921,676 $ 419,162 $ 164,782 $ 4,219 $ ( 239,967 ) $ ( 10,305 ) $ 89,176 $ 427,067

Restricted share units vested, net of shares withheld for employee tax obligations

Restricted share units and performance stock units vested, net of shares withheld for employee tax obligations

812,277 5,710 ( 22,993 ) — — — — $ ( 17,283 )

1 unchanged sentence

121,223 4,778 ( 972 ) — — — — $ 3,806

Grant date fair value of stock options exercised

Average carrying value of repurchased and retired common shares

— — — ( 8,575 )

Balance, end of period

415,617 394,603 415,617 394,603

Adjustments to other equity:

Balance, beginning of period

Amortization of share-based payment expense - restricted share units and performance stock units

— — 5,181 — — — 84 $ 5,265

Amortization of share-based payment expense - restricted share units

— — — — 4,226 — 1,820 $ 6,046

Amortization of share-based payment expense - performance stock units

Other comprehensive income, net of tax

— — — — 1,641 1,104 $ 2,745

Restricted share units vested

Balance as of March 31, 2026

54,855,176 $ 429,650 $ 145,998 $ 4,219 $ ( 235,741 ) $ ( 8,664 ) $ 92,184 $ 427,646

Grant date fair value of stock options exercised

Three Months Ended March 31, 2025

Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Capital Stock

Statutory Surplus Reserve

Accumulated Deficit

Non-controlling Interests

Balance as of December 31, 2024

52,946,200 $ 401,420 $ 185,268 $ 4,051 $ ( 274,675 ) $ ( 16,598 ) $ 78,069 $ 377,535

Change in ownership interest related to IMAX China

Restricted share units and performance stock units vested, net of shares withheld for employee tax obligations

751,817 11,380 ( 20,942 ) — — — — $ ( 9,562 )

Balance, end of period

Employee stock options exercised, net of shares withheld for employee tax obligations

44,031 1,241 ( 293 ) — — — — $ 948

Adjustments to statutory surplus reserve:

Balance, beginning of period

Amortization of share-based payment expense - restricted share units and performance stock units

— — 5,718 — — — 93 $ 5,811

Change in statutory surplus reserve, IMAX China — — — 55 ( 55 ) — — $ —

Balance, end of period

— — — — 2,327 — 5,827 $ 8,154

Adjustments to accumulated deficit:

Balance, beginning of period

( 261,261 ) ( 293,889 ) ( 274,675 ) ( 292,845 )

Net income attributable to common shareholders

20,657 13,896 34,239 20,753

Statutory surplus reserve deducted from retained earnings, IMAX China

— — ( 168 ) —

Common shares repurchased and retired

— — — ( 7,901 )

Balance, end of period

( 240,604 ) ( 279,993 ) ( 240,604 ) ( 279,993 )

Adjustments to accumulated other comprehensive loss:

Balance, beginning of period

( 13,589 ) ( 13,974 ) ( 16,598 ) ( 12,081 )

Other comprehensive income, net of tax

— — — — 606 121 $ 727

Balance, end of period

( 11,696 ) ( 11,015 ) ( 11,696 ) ( 11,015 )

Adjustments to non-controlling interests:

Balance, beginning of period

83,970 75,111 78,069 71,790

Net income attributable to non-controlling interests

1,929 1,431 8,721 5,067

Other comprehensive income, net of tax

463 1,073 753 789

Share-based compensation attributable to non-controlling interests

Change in ownership interest related to IMAX China common share repurchases

— — ( 1,369 ) ( 25 )

Balance, end of period

86,452 77,673 86,452 77,673

Total Shareholders’ Equity

Balance as of March 31, 2025

53,742,048 $ 414,041 $ 169,751 $ 4,106 $ ( 272,403 ) $ ( 15,992 ) $ 84,110 $ 383,613

7 unchanged sentences

IMAX Corporation (together with its subsidiaries, unless the context requires otherwise, the “Company” or “IMAX”), prepares financial statements in accordance with United States Generally Accepted Accounting Principles (“U.S.

GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

GAAP” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Certain information and footnote disclosures have been condensed or omitted as permitted by such rules and regulations.

2 unchanged sentences

The interim results presented in the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows are not necessarily indicative of results for a full year.

Certain prior period comparatives have been revised to conform with the current period presentation.

These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements in the 2025 Form 10-K, which includes significant accounting policies adopted by the Company.

Principles of Consolidation

These unaudited Condensed Consolidated Financial Statements include the accounts of IMAX Corporation together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary.

These unaudited Condensed Consolidated Financial Statements include the accounts of IMAX together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary.

All intercompany accounts and transactions have been eliminated.

6 unchanged sentences

A change in the value of an equity method investment that is other than temporary is recognized in the Condensed Consolidated Statements of Operations.

As of September 30, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, total assets and liabilities of the Company’s consolidated VIEs were as follows:

March 31, December 31,

(In thousands of U.S.

9 unchanged sentences

(iii) expected credit losses on accounts receivable, financing receivables, and variable consideration receivables;

(iv) provisions for the write-down of excess and obsolete inventory;

(iv) provisions for the write-down of excess and obsolete inventories;

(v) the fair values of the reporting units used in assessing the recoverability of goodwill;

(vi) the cash flow projections used in testing the recoverability of long-lived assets such as the system equipment supporting joint revenue sharing arrangements;

(vi) the cash flow projections used in testing the recoverability of long-lived assets such as the system equipment supporting joint revenue sharing arrangements (“JRSAs”);

(vii) the economic lives of the system equipment supporting joint revenue sharing arrangements;

(viii) the useful lives of intangible assets;

(viii) the useful lives of tangible and intangible assets;

(ix) the ultimate revenue forecasts used to test the recoverability of film assets;

(x) the discount rates used to determine the present value of financing receivables, variable consideration and lease liabilities, as well as to determine

the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill;

(x) the discount rates used to determine the present value of financing receivables, variable consideration and lease

liabilities, as well as to determine the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill;

(xi) pension plan assumptions;

(xii) estimates related to the fair value and projected vesting of share-based payment awards;

(xiii) the valuation of deferred income tax assets;

(xiii) the valuation allowance of deferred income tax assets;

and (xiv) reserves related to uncertain tax positions.

New Accounting Standards and Accounting Changes

Issued FASB Accounting Standard Codification Updates Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No.

2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” (“ASU 2023-09”).

The amendments in ASU 2023-09 improve the transparency of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation, and (ii) income taxes to be paid disaggregated by jurisdiction.

ASU 2023-09 is effective for annual periods beginning on or after December 31, 2024.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements disclosures related to tax.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued Accounting Standard Update No.

2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” (“ASU 2024-03”).

The amendments in ASU 2024-03 expand disclosures about specific expense categories presented on the face of the income statement and addresses requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses).

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods thereafter with early adoption permitted.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

Adoption of New Accounting Pronouncements

Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued Accounting Standard Update No.

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2025-05, “Financial Instruments - Credit Losses (Topic 326):

1 unchanged sentence

The amendments in ASU 2025-05 provide a practical expedient that allows entities to assume current economic conditions as of the balance sheet date will remain unchanged throughout the reasonable and supportable forecast period when estimating expected credit losses for eligible financial assets, including trade receivables and contract assets.

ASU 2025-05 is effective for fiscal periods beginning after December 15, 2025, including interim periods within those fiscal years.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

The Company adopted ASU 2025-05 for the three months ended March 31, 2026.

The adoption did not have a material impact on its Condensed Consolidated Financial Statements.

Recently Issued FASB Accounting Standards Codification Updates Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” (“ASU 2024-03”).

ASU 2024-03 is effective for interim periods within annual reporting periods beginning after December 15, 2027 with early adoption permitted.

The Company is in the process of evaluating the impact of ASU 2024-03 on its Consolidated Financial Statements.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued Accounting Standard Update No.

In September 2025, the FASB issued ASU No.

2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

5 unchanged sentences

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

Hedge Accounting Improvements

In November 2025, the FASB issued ASU No.

2025-09, “Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements” (“ASU 2025-09”).

The amendments in ASU 2025-09 more closely align hedge accounting with the economics of an entity’s risk management activities for (i) similar risk assessment for cash flow hedges, (ii) hedging forecasted interest payment on choose-your-rate debt instruments, (iii) cash flow hedges of nonfinancial forecasted transactions, (iv) net written options as hedging instruments, and (v) foreign-currency-denominated debt instrument as hedging instrument and hedged item.

ASU 2025-09 is effective for fiscal periods beginning after December 15, 2026, and interim periods thereafter.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

Accounting for Government Grants Received by Business Entities

In December 2025, the FASB issued ASU No.

2025-10, “Government Grants (Topic 832):

Accounting for Government Grants Received by Business Entities” (“ASU 2025-10”).

The amendments in ASU 2025-10 establishes accounting and guidance for a government grant received by an entity.

Under the new guidance, a government grant is not recognized until it is probable that an entity will comply with the conditions attached to the grant and the grant will be received, and recognition guidance is met.

A grant related to an asset is recognized on the balance sheet as an entity incurs the related costs for which the grant is intended to compensate.

ASU 2025-10 is effective for fiscal periods beginning after December 15, 2028, and interim periods thereafter.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates.

ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended September 30, 2025.

ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended March 31, 2026.

The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions.

Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company.

In order to mitigate the credit risk associated with the Company’s receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an

analysis of collections history and aging.

This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification.

17 unchanged sentences

Accounts receivable also includes amounts due to the Company from movie studios and other content creators principally for digitally remastering films into IMAX formats, as well as for film distribution and post-production services.

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, 2025 September 30, 2025

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three months ended March 31, 2026 and 2025:

Three Months Ended

March 31, 2026

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

9 unchanged sentences

$ 12,157 $ 1,343 $ 434 $ 13,934

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2024

Three Months Ended

March 31, 2025

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

9 unchanged sentences

$ 11,483 $ 1,236 $ 455 $ 13,174

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.3 million and $ 0.3 million, respectively (2024 — decreased by $ 1.4 million and $ 1.5 million, respectively).

For the three months ended March 31, 2026, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by less than $ 0.1 million.

The Company recorded $ 0.2 million in write-offs in the allowance for credit losses for the three months ended March 31, 2026.

For the three months ended March 31, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by $ 0.1 million.

Financing Receivables

Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Systems.

As of September 30, 2025 and December 31, 2024, financing receivables consisted of the following:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, financing receivables consisted of the following:

March 31, December 31,

(In thousands of U.S.

29 unchanged sentences

$ 90,124 $ 90,799

As of September 30, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

March 31, December 31,

(In thousands of U.S.

6 unchanged sentences

8.71 % 8.68 %

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of September 30, 2025 and December 31, 2024.

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of March 31, 2026 and December 31, 2025.

The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

1 unchanged sentence

By Origination Year

As of September 30, 2025

As of March 31, 2026

2026 2025 2024 2023 2022 Prior Total

25 unchanged sentences

$ 4,843 $ 3,277 $ 2,638 $ 2,721 $ 8,562 $ 9,572 $ 31,613

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of September 30, 2025 and December 31, 2024.

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of March 31, 2026 and December 31, 2025.

1 unchanged sentence

By Origination Year

As of September 30, 2025

As of March 31, 2026

2026 2025 2024 2023 2022 Prior Total

25 unchanged sentences

$ 11,385 $ 6,702 $ 8,007 $ 5,323 $ 8,575 $ 60,947 $ 100,939

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of September 30, 2025 and December 31, 2024:

As of September 30, 2025

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

(In thousands of U.S.

15 unchanged sentences

Total $ 2,031 $ 1,110 $ 12,586 $ 15,727 $ 116,825 $ 132,552 $ ( 10,598 ) $ 121,954

The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of September 30, 2025 and December 31, 2024.

The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.

As of September 30, 2025

As of March 31, 2026

(In thousands of U.S.

15 unchanged sentences

Total $ 1,021 $ 855 $ 9,721 $ 11,597 $ 48,340 $ ( 1,262 ) $ 58,675

The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of September 30, 2025 and December 31, 2024:

As of September 30, 2025

The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

As of December 31, 2025

7 unchanged sentences

Total $ 24,635 $ ( 9,353 ) $ 15,282 $ 24,868 $ ( 9,644 ) $ 15,224

For the three and nine months ended September 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status.

For the three and nine months ended September 30, 2025, the Company recognized $ 0.1 million and $ 0.2 million, respectively (2024 — $ 0.4 million and $ 1.0 million) in Finance Income related to the financed sales receivables in nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, 2025 September 30, 2025

For the three months ended March 31, 2026 and 2025, the Company did not recognize Finance Income related to the net investment in leases on nonaccrual status.

For the three months ended March 31, 2026, the Company recognized less than $ 0.1 million (2025 — less than $ 0.1 million) in Finance Income related to the financed sales receivables in nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three months ended March 31, 2026 and 2025:

Three Months Ended

March 31, 2026

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

1 unchanged sentence

$ 458 $ 10,140

Current period provision (reversal), net

Current period reversal, net

( 434 ) ( 75 )

Foreign exchange

— ( 9 ) — ( 5 )

Ending balance

$ 25 $ 10,095

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2024

Three Months Ended

March 31, 2025

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

2 unchanged sentences

Current period provision (reversal), net

67 ( 148 ) 70 ( 135 )

Foreign exchange

— 27 ( 6 ) 22

Ending balance

$ 667 $ 9,957

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases increased by less than $ 0.1 million and decreased by $ 0.2 million, respectively, and net financed sale receivables increased by $ 0.1 million and decreased by $ 0.3 million, respectively.

For the three and nine months ended September 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases increased by $ 0.1 million, respectively, and net financed sale receivables decreased by $ 0.1 million, respectively.

For the three months ended March 31, 2026, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by $ 0.4 million (2025 — increased by less than $ 0.1 million), and financed sale receivables decreased by less than $ 0.1 million (2025 — decreased by $ 0.2 million).

Variable Consideration Receivables

2 unchanged sentences

Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal.

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three months ended March 31, 2026 and 2025:

Three Months Ended

(In thousands of U.S.

Beginning balance

$ 120 $ 677 $ 116 $ 633

Current period provision, net

Foreign exchange

Current period reversal, net

Ending balance

$ 120 $ 796 $ 120 $ 796

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables did not change and increased by less than $ 0.1 million, respectively (2024 — increased by $ 0.1 million and $ 0.2 million respectively).

For the three months ended March 31, 2026, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by less than $ 0.1 million (2025 — decreased by less than $ 0.1 million).

Lease Arrangements

9 unchanged sentences

The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.

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

The Company also provides IMAX Systems to customers through JRSAs.

Under the traditional form of these arrangements, in exchange for providing the IMAX System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than a fixed upfront fee or annual minimum payments.

6 unchanged sentences

The following lease payments are expected to be received by the Company for its sales-type leases and JRSAs in each of the remainder of 2025, next four years and thereafter following the September 30, 2025 balance sheet date:

The following lease payments are expected to be received by the Company for its sales-type leases and JRSAs in each of the remainder of 2026, next four years and thereafter following the March 31, 2026 balance sheet date:

(In thousands of U.S.

2025 (three months remaining) $ 825

2026 (nine months remaining) $ 2,721

Thereafter 15,381

As of September 30, 2025 and December 31, 2024, Inventories consisted of the following:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, Inventories consisted of the following:

March 31, December 31,

(In thousands of U.S.

4 unchanged sentences

Total $ 35,823 $ 32,505

As of September 30, 2025, Inventories included finished goods of $ 4.1 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three and nine months ended September 30, 2025, the Company recorded write-downs of less than $ 0.1 million and $ 0.2 million, respectively (2024 — write-downs of $ 0.1 million and $ 0.3 million during each such period) in Costs and Expenses Applicable to Revenues ― Technology Sales.

As of March 31, 2026, Inventories included balances of $ 1.6 million (December 31, 2025 — $ 1.0 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three months ended March 31, 2026, and 2025, the Company recorded write-downs of less than $ 0.1 million and $ 0.1 million, respectively, in Costs and Expenses Applicable to Revenues ― Technology Sales.

Revolving Credit Facility Borrowings, Net

As of September 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, Revolving Credit Facility Borrowings, Net included the following:

March 31, December 31,

(In thousands of U.S.

5 unchanged sentences

$ 46,702 $ 34,577

Credit Agreement

The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”).

On July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto.

The facility under the New Credit Agreement (the “New Credit Facility”) matures on July 14, 2030;

provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Credit Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $ 100.0 million, then the maturity date for the New Credit Facility shall automatically be modified to be the Springing Maturity Date.

The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

The New Credit Agreement provides for a revolving borrowing capacity of $ 375.0 million, and contains an uncommitted accordion feature that allows the Company to further increase its borrowing capacity by the greater of $ 140.0 million or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The New Credit Agreement requires that the Company does not exceed a maximum Senior Secured Net Leverage Ratio (as defined therein) of 3.25 :1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter.

In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets.

The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type.

The Company was in compliance with this requirement as of September 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00 :1.00.

Loans under the New Credit Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00 % to 1.75 % per annum or (ii) the U.S.

Wells Fargo Credit Agreement

The Company is a party to a Seventh Amended and Restated Credit Agreement, dated as of July 14, 2025 (the “Credit Agreement”), that provides for a credit facility (the “Credit Facility”).

The Company’s obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

The Credit Agreement provides for a revolving borrowing capacity of $ 375.0 million, and contains an uncommitted accordion feature that allows the Company to further increase its borrowing capacity by the greater of $ 140.0 million or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The Credit Agreement requires that the Company does not exceed a maximum Senior Secured Net Leverage Ratio (as defined therein) of 3.25 :1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter.

The Company was in compliance with this requirement as of March 31, 2026 as the Senior Secured Net Leverage Ratio was 0.02 :1.00.

Loans under the Credit Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00 % to 1.75 % per annum or (ii) the U.S.

base rate or the Canadian prime rate plus a margin ranging from 0.25 % to 1.00 % per annum, in each case depending on the Company’s total leverage ratio.

In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00 % per annum.

The Company incurred fees of approximately $ 2.2 million in connection with the New Credit Agreement, which are being amortized on a straight-basis over the term of the New Credit Agreement.

As of September 30, 2025, borrowings under the New Credit Facility were $ 29.0 million (December 31, 2024 — $ 37.0 million under the previous Credit Facility) and bore interest at Term SOFR, plus a margin of 1.75 % per annum based on the Company’s total leverage ratio.

The effective interest rate for the three and nine months ended September 30, 2025 were 6.09 % and 6.15 %, respectively.

As of September 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.

As of September 30, 2025, the amount available for future borrowings under the New Credit Facility was $ 346.0 million (December 31, 2024 — $ 263.0 million under the previous Credit Facility).

As of March 31, 2026, borrowings under the Credit Facility were $ 49.0 million (December 31, 2025 — $ 37.0 million) and bore interest at Term SOFR (as defined in the Credit Agreement), plus a margin of 1.50 % per annum (December 31, 2025 — 1.50 %) based on the Company’s total leverage ratio.

The effective interest rate for the three months ended March 31, 2026 was 5.19 % (2025 — 6.18 %).

As of March 31, 2026 and December 31, 2025, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.

As of March 31, 2026, the amount available for future borrowings under the Credit Facility was $ 326.0 million (December 31, 2025 — $ 338.0 million).

Foreign Exchange Facility

Within the New Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements.

As of September 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $ 0.3 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $ 2.0 million).

As of September 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 48.7 million (December 31, 2024 — $ 48.4 million).

Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements.

As of March 31, 2026, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was less than $ 0.1 million, representing the amount by which the fair value of these forward contracts exceeded their nominal value (December 31, 2025 — net unrealized gain of $ 1.0 million).

As of March 31, 2026, the notional value of the Company’s outstanding foreign currency forward contracts was $ 38.5 million (December 31, 2025 — $ 48.4 million).

Bank of China Facility

As of September 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 1.0 million (less than $ 0.1 million).

As of September 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 26.7 million) and the amount available for letters of guarantee was RMB 9.0 million ($ 1.3 million).

As of March 31, 2026, and December 31, 2025, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K) and outstanding letters of guarantee were RMB 0.8 million ($ 0.1 million).

As of March 31, 2026, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 27.5 million) and the amount available for letters of guarantee was RMB 9.2 million ($ 1.3 million).

The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee.

The effective interest rate for the three and nine months ended September 30, 2025 was 0 % for each such period (2024 — 0 % for each such period).

There were no amounts drawn under the Bank of China Facility for the three and nine months ended September 30, 2025.

The effective interest rate for the three months ended March 31, 2026 was 0 % (2025 — 0 %).

There were no amounts drawn under the Bank of China Facility during the three months ended March 31, 2026.

The Bank of China Facility has been renewed to April 15, 2027.

HSBC China Facility

In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd.

(“IMAX Shanghai”) entered into an unsecured revolving facility for up to RMB 200.0 million ($ 28.1 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”).

As of September 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility.

As of September 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 28.1 million).

The effective interest rate for the three and nine months ended September 30, 2025 was 0 % for each such period (2024 — 0 %).

As of March 31, 2026, and December 31, 2025, no borrowings were outstanding under the HSBC China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K).

As of March 31, 2026, and December 31, 2025 the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 28.9 million).

The effective interest rate for the three months ended March 31, 2026 was 0 % (December 2025 — 0 %).

The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K) has been renewed to October 8, 2026.

The Company did not have any letters of credit or advance payment guarantees outstanding as of September 30, 2025 and December 31, 2024 under the NBC Facility.

The Company did not have any letters of credit or advance payment guarantees outstanding as of March 31, 2026 and December 31, 2025 under the NBC Facility.

Convertible Notes and Other Borrowings, Net

As of September 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:

September 30, December 31,

As of March 31, 2026 and December 31, 2025, Convertible Notes and Other Borrowings, Net included the following:

March 31, December 31,

(In thousands of U.S.

13 unchanged sentences

On March 19, 2021, the Company issued $ 230.0 million of 0.500 % Convertible Senior Notes due 2026 (the “2026 Convertible Notes”).

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

The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.

In connection with the pricing of the 2026 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2026 Capped Call Transactions”) with certain financial institutions to reduce potential dilution in connection with the redemption of the 2026 Convertible Notes.

On November 6, 2025, the Company completed the repurchase of $ 229.3 million (or 99.7 %) of the outstanding principal amount of the 2026 Convertible Notes in separate, privately negotiated repurchase transactions with a limited number of holders.

During the three months ended March 31, 2026, certain holders of the remaining outstanding 2026 Convertible Notes elected to convert 217 notes ($ 0.2 million) of the outstanding principal.

As a result of this election, the Company recorded a loss on debt extinguishment of $ 0.1 million in Interest Expense in the Condensed Consolidated Statement of Operations.

As of March 31, 2026, the Company recorded a $ 0.3 million liability in Accrued and other liabilities in the Condensed Consolidated Balance Sheet.

The liability for the converted bonds was settled on April 1, 2026, along with the remaining unconverted and outstanding 2026 Convertible Notes.

Concurrently with this April 1, 2026 transaction, the Company terminated the remaining portion of the associated 2026 capped call transactions.

2030 Convertible Notes

On November 6, 2025, the Company issued $ 250.0 million of 0.750 % Convertible Senior Notes due 2030 (the “2030 Convertible Notes”) in a private placement conducted pursuant to Rule 144A under the Securities Act of 1933, as amended.

The net proceeds from the issuance of the 2030 Convertible Notes were $ 243.1 million, after deducting the initial purchasers’ discounts and commissions, and were used to repurchase $ 229.3 million of the outstanding principal amount of the 2026 Convertible Notes.

The 2030 Convertible Notes are senior unsecured obligations of the Company and 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.

The 2030 Convertible Notes will mature on November 15, 2030, unless they are redeemed or repurchased by the Company or converted on an earlier date.

The Company continues to record the Convertible Notes entirely as a liability on the Condensed Consolidated Balance Sheets, net of initial purchasers’ discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs.

Federal Economic Development Loan

As of September 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $ 1.5 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

As of March 31, 2026, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K) had a carrying value of $ 0.8 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

Commitments, Contingencies and Guarantees

16 unchanged sentences

On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties.

In an order dated November 14, 2024, the Bombay High Court dismissed the Company’s application.

On December 13, 2024, the Company filed an appeal of this order, on April 23, 2025, the Bombay High Court ruled that the Company’s appeal was maintainable, and on September 16, 2025, the Supreme Court of India dismissed E-City’s petition challenging that ruling.

On December 30, 2025, the Commercial Appellate Division of the Bombay High Court rejected E-City’s objections to enforcement of the arbitration award and recognized the award as a decree of the Court.

The E-City parties appealed this decision to the Supreme Court of India.

The Company fully intends to continue pursuing its rights and seeking to enforce the arbitration award.

2 unchanged sentences

Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement.

Product Warranties

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $ nil as of September 30, 2025 and $ 0.1 million as of December 31, 2024.

Director and Officer Indemnifications

3 unchanged sentences

The Company has purchased directors’ and officers’ liability insurance.

No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, with respect to this indemnity.

No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, with respect to this indemnity.

Other Indemnification Agreements

12 unchanged sentences

Selling Expenses

The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,

(In thousands of U.S.

Commissions Marketing

and Other Sales

Technology sales (1)

$ 364 $ 234 $ 258 $ 139

Image enhancement and maintenance services (2)

— 4,218 — 5,172

Technology rentals (3)

233 276 128 811

Total $ 597 $ 4,728 $ 386 $ 6,122

(1) Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

(2) Film exploitation costs, including advertising and marketing costs, are expensed as incurred.

(3) Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands of U.S.

9 unchanged sentences

(1) Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

Direct advertising and marketing costs for each IMAX System are expensed as incurred and may be reversed when the contractual obligation ceases to exist.

(2) Film exploitation costs, including advertising and marketing costs, are expensed as incurred.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

Foreign Exchange

Included in Selling, General and Administrative Expenses for the three and nine months ended September 30, 2025 is a foreign currency net loss of $ 0.2 million and loss of $ 0.4 million, respectively (2024 — net losses of $ 0.3 million and $ 0.8 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.

See Note 15 for additional information.

Government Assistance

For the three and nine months ended September 30, 2025, the Company recognized $ 0.1 million and $ 4.0 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic.

During the nine months ended September 30, 2025, the ERC was recognized as a reduction to Selling, General and Administrative Expenses ($ 2.7 million) and Costs and Expenses Applicable to Revenues ($ 1.3 million).

Direct advertising and marketing costs for each IMAX System are expensed as incurred and may be reversed when the contractual obligation cease to exist.

Included in Selling, General and Administrative Expenses for the three months ended March 31, 2026 is a foreign currency net loss of $ 0.6 million (2025 — net loss of $ 0.4 million), resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.

(Refer to “Financial Instruments — Foreign Exchange Risk Management ” in Note 15 for additional information.)

Collaborative Arrangements

2 unchanged sentences

Revenue attributable to transactions arising between the Company and its customers under JRSAs is recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs).

For the three and nine months ended September 30, 2025, such revenues totaled $ 23.0 million and $ 60.9 million, respectively (2024 — $ 15.9 million and $ 48.4 million, respectively).

For the three months ended March 31, 2026, such revenues totaled $ 16.4 million (2025 — $ 19.2 million).

IMAX Film Remastering and Distribution

2 unchanged sentences

Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements is included in Revenues – Image Enhancement and Maintenance Services.

For the three and nine months ended September 30, 2025, such revenues totaled $ 41.9 million and $ 105.7 million, respectively (2024 — $ 26.7 million and $ 77.7 million, respectively).

See Note 12 for a disaggregated presentation of the Company’s revenues.

For the three months ended March 31, 2026, such revenues totaled $ 29.2 million (2025 — $ 31.8 million).

(Refer to “Revenue from Contracts with Customers — Disaggregated Information About Revenue ” in Note 12 for a disaggregated presentation of the Company’s revenues.)

Co-Produced Film Arrangements

The accounting policies relating to co-produced film arrangements are disclosed in Notes 2 and 3 of the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K.

As of September 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million, and four other co-produced film arrangements, the terms of which are similar.

For the three and nine months ended September 30, 2025, expenses of $ 0.2 million and $ 0.3 million, respectively (2024 — $ 0.2 million and $ 3.2 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

As of March 31, 2026, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million , and four other co-produced film arrangements, the terms of which are similar.

For the three months ended March 31, 2026, an expense of $ 0.1 million (2025 — $ 0.1 million) attributable to transactions between the Company and other parties involved in the production of the films has been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

Condensed Consolidated Statements of Cash Flows – Supplemental Information

Changes in other operating assets and liabilities

Nine Months Ended

September 30,

Three Months Ended

(In thousands of U.S.

5 unchanged sentences

Variable consideration receivables

( 1,233 ) ( 10,308 )

( 2,843 ) ( 2,026 )

Increase (decrease) in:

Other assets, excluding lease incentives provided to exhibitor customers

(Decrease) increase in:

Accounts payable

4 unchanged sentences

Depreciation and amortization

Nine Months Ended

September 30,

Three Months Ended

(In thousands of U.S.

2 unchanged sentences

Equipment supporting JRSAs

17,219 17,011

Other property, plant and equipment

1 unchanged sentence

Total $ 15,236 $ 14,913

Nine Months Ended

September 30,

Three Months Ended

(In thousands of U.S.

3 unchanged sentences

Other property, plant and equipment

Other intangible assets

$ 1,303 $ 3,034

Significant non-cash investing activities

Nine Months Ended

September 30,

Three Months Ended

(In thousands of U.S.

Net (decrease) increase in accruals related to:

Net increase in accruals related to:

Investment in equipment supporting JRSAs

3 unchanged sentences

$ 508 $ 1,128

Income Tax Expense

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

The Company’s effective tax rate of 18.7 % for the three months ended September 30, 2025 reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

For the nine months ended September 30, 2025, the Company recorded an income tax expense of $ 13.7 million (2024 — tax expense of $ 3.5 million).

The Company’s effective tax rate of 24.1 % for the nine months ended September 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects a decrease in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted, introducing substantial changes to U.S.

tax law that will take effect for the Company beginning in fiscal year 2026.

Key provisions of the Act include revisions to Interest Deductibility (IRC §163(j)), Bonus Depreciation, and Section §179.

The Company is currently evaluating the Act’s potential impact on its Consolidated Financial Statements and will update its assessment as further guidance becomes available.

As of September 30, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 12.7 million (December 31, 2024 — $ 14.5 million).

For the three months ended March 31, 2026, the Company recorded an income tax expense of $ 2.4 million (2025 — $ 7.3 million).

The Company’s effective tax rate of 28.5 % for the three months ended March 31, 2026 reflects the geographic allocation of income earned in taxing jurisdictions and reflects an increase in the valuation allowance and withholding taxes, offset by a tax benefit related to share-based compensation.

The Company’s effective tax rate of 47.2 % for the three months ended March 31, 2025 reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

As of March 31, 2026, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 12.7 million (December 31, 2025 — $ 12.6 million).

Realization of net deferred tax assets is dependent upon generation of sufficient taxable income in future years to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards.

The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.

As of September 30, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2024 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

As of March 31, 2026, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2025 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

Capital Stock and Reserves

Share-Based Compensation

For the three and nine months ended September 30, 2025, share-based compensation expense totaled $ 6.3 million and $ 18.9 million, respectively (2024 — $ 5.4 million and $ 16.9 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended Nine Months Ended

September 30, September 30,

For the three months ended March 31, 2026, share-based compensation expense totaled $ 5.7 million (2025 — $ 5.2 million) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended

(In thousands of U.S.

2025 2024 2025 2024

Costs and expenses applicable to revenues

$ 348 $ 251 $ 944 $ 726

Selling, general and administrative expenses

5,763 5,036 17,345 15,879

Research and development

190 112 574 333

Total $ 5,725 $ 5,205

The following table summarizes the Company’s share-based compensation expense by each award type:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands of U.S.

2025 2024 2025 2024

Restricted Share Units

1 unchanged sentence

Performance Stock Units

2,057 2,048 5,958 5,866

IMAX China Long Term Incentive Plan Restricted Share Units

299 297 1,346 1,019

IMAX China Long Term Incentive Plan Performance Stock Units

$ 5,725 $ 5,205

$ 6,301 $ 5,399 $ 18,863 $ 16,938

For the three and nine months ended September 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of less than $ 0.1 million and $ 1.7 million respectively, of which $ 1.7 million granted during the nine month period vested immediately (2024 — $ 0.1 million and $ 1.8 million respectively).

For the three months ended March 31, 2026, the Company’s share-based compensation expense included restricted share units to non-employees of $ nil that were granted and have not yet vested (2025 — less than $ 0.1 million, which vested immediately upon granting).

Stock Option Summary

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the nine months ended September 30, 2025 and 2024:

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the three months ended March 31, 2026 and 2025:

Number of Shares Weighted Average Exercise

5 unchanged sentences

Expired — ( 470,582 ) — 29.53

Cancelled — ( 1,768 ) — 24.38

Stock options outstanding, end of period

4 unchanged sentences

IMAX LTIP Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the nine months ended September 30, 2025 and 2024:

Number of Shares Weighted Average Grant Date

12 unchanged sentences

The achievement of these targets is assessed over a three-year performance period, with vesting ranging from 0 % to 200 % of the initial Adjusted EBITDA PSU award or 200 % of the initial TSR PSU award, depending upon actual performance.

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

For the 2026 grants, the grant date fair value for Adjusted EBITDA PSUs is determined using the volume-weighted average price of the Company’s common shares on the New York Stock Exchange for the sixty calendar days prior to the date of grant.

The grant date fair value for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as market conditions and expected share price volatility over the term of the awards.

1 unchanged sentence

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

The expense recognized in the nine months ended September 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30, 2025 and 2024:

The expense recognized in the three months ended March 31, 2026 and 2025 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the three months ended March 31, 2026 and 2025:

Number of Awards Weighted Average Grant Date

3 unchanged sentences

1,140,515 1,097,634 $ 20.12 $ 17.99

Granted (1)(2)

491,275 551,084 29.38 24.17

4 unchanged sentences

1,024,925 1,182,463 26.04 20.13

(1) For the nine months ended September 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $ 19.53 , as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175 % on account of full achievement of the targets and TSR targets vested at 123.5 %, which reflects actual performance.

As of September 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,940,472 , assuming full achievement of the Adjusted EBITDA and TSR targets.

(1) For the three months ended March 31, 2026, the balance of shares granted includes 199,473 (2025 - 159,376 ) additional shares, at a weighted average grant date fair value per share of $ 16.98 (2025 - $ 19.18 ), as PSUs granted in 2023 with Adjusted EBITDA targets vested at 175 % (2025 - 175 %) on account of full achievement of the targets.

(2) For the three months ended March 31, 2026, the balance of shares granted includes 46,510 (2025 - 17,375 ) additional shares, at a weighted average grant date fair value per share of $ 19.73 (2025 - $ 22.72 ), as PSUs granted in 2023 with TSR targets vested at 150 % on account of full achievement of the targets (2025 - 123.5 % based on actual performance versus the targets).

As of March 31, 2026, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,797,285 , assuming full achievement of the Adjusted EBITDA and TSR targets.

Issuer Purchases of Equity Securities

On June 12, 2017, the Company announced that its Board of Directors approved a $ 200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $ 400.0 million.

In June 2025, the Company’s Board of Directors approved a 12 -month extension to its share repurchase program through June 30, 2027 and an increase of $ 100.0 million in the Company’s share repurchase program authorization.

With the increase of $ 100 million, the Company’s total share repurchase authority is $ 500.0 million under the current share repurchase program.

As of September 30, 2025, the Company had $ 250.7 million available under the program.

As of March 31, 2026, the Company had $ 250.7 million available under the program.

The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors.

The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.

During the three and nine months ended September 30, 2025, the Company did no t have any repurchases of common shares.

During the three months ended September 30, 2024, the Company did no t have any repurchases of common shares.

During the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares, at an average price of $ 13.99 per share, for a total of $ 16.3 million, excluding commissions.

During the nine months ended September 30, 2025 and 2024, there were no shares purchased in the administration of employee share-based plans.

As of September 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares.

During the three months ended March 31, 2026, and 2025, the Company did not repurchase any common shares.

During the three months ended March 31, 2026 and 2025, there were no shares purchased in the administration of employee share based plans.

As of March 31, 2026 and December 31, 2025, the IMAX LTIP trustee did not hold any shares.

Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Condensed Consolidated Balance Sheets.

1 unchanged sentence

This program expired on the date of the 2025 Annual General Meeting of IMAX China on June 12, 2025.

During the 2025 Annual General Meeting, shareholders granted its Board of Directors a general mandate authorizing the Board of Directors of IMAX China, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10 % of the total number of shares as of June 12, 2025 ( 33,919,122 shares).

During IMAX China’s 2025 Annual General Meeting, shareholders granted its Board of Directors a general mandate, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10 % of the total number of issued shares as of June 12, 2025 ( 33,919,122 shares).

This program will be valid until the 2026 Annual General Meeting of IMAX China.

1 unchanged sentence

IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time.

During the three months ended September 30, 2025, IMAX China did not repurchase any common shares.

During the nine months ended September 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($ 0.96 per share) for a total of HKD $ 11.3 million ($ 1.4 million), excluding commissions.

During the three months ended September 30, 2024, IMAX China did no t have any repurchases of common shares.

During the nine months ended September 30, 2024, IMAX China repurchased 119,900 common shares, at an average price of HKD 7.43 per share ($ 0.95 per share) for a total of HKD 0.9 million ($ 0.1 million).

The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.

The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.

During the three months ended March 31, 2026 and 2025, IMAX China did not repurchase any of its common shares.

Basic and Diluted Weighted Average Shares Outstanding

The following table reconciles the denominator of the basic and diluted weighted average share computations:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands) 2026 2025

1 unchanged sentence

53,922 52,946

Weighted average number of shares issued (repurchased), net

5 5 615 ( 655 )

Weighted average number of shares issued, net

Weighted average number of shares outstanding - basic

1 unchanged sentence

Weighted average effect of potential common shares, if dilutive

1,777 1,407 1,681 1,023

Weighted average number of shares outstanding - diluted

56,392 54,969

For the three and nine months ended September 30, 2025, the calculation of diluted weighted average shares outstanding excludes 844,551 and 928,945 shares, respectively (2024 — 2,192,874 and 2,769,499 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including:

(i) nil RSUs, respectively, (2024 — nil and 10,798 RSUs, respectively), (ii) 1,510 and 85,904 PSUs, respectively (2024 — nil and 42,848 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,192,874 and 2,715,853 stock options, respectively), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

For the three months ended March 31, 2026, the calculation of diluted weighted average shares outstanding excludes 72,493 shares (2025 — 971,374 shares) that are issuable upon the vesting or exercise of share-based compensation including:

(i) nil RSUs (2025 — nil RSUs), (ii) 72,493 PSUs (2025 — 128,333 PSUs) and (iii) nil stock options (2025 — 843,041 stock options), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three months ended March 31, 2026 and 2025 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

Statutory Surplus Reserve

4 unchanged sentences

Disaggregated Information About Revenue

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025

(In thousands of U.S.

Dollars) Technology Sales

Image Enhancement and Maintenance Services

Technology Rentals

Finance Income

Content Solutions Segment:

Film Remastering and Distribution

$ — $ 41,913 $ — $ — $ 41,913

Other Content Solutions

— 2,630 289 — 2,919

— 44,543 289 — 44,832

Technology Products and Services Segment:

18,660 — — — 18,660

System Rentals

— — 23,047 — 23,047

Maintenance — 15,784 — — 15,784

Finance Income

— — — 2,929 2,929

18,660 15,784 23,047 2,929 60,420

Sub-total for reportable segments

18,660 60,327 23,336 2,929 105,252

700 702 — — 1,402

Total $ 19,360 $ 61,029 $ 23,336 $ 2,929 $ 106,654

Nine Months Ended September 30, 2025

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026

(In thousands of U.S.

21 unchanged sentences

Total $ 13,414 $ 48,584 $ 16,624 $ 2,757 $ 81,379

Three Months Ended September 30, 2024

Three Months Ended March 31, 2025

(In thousands of U.S.

21 unchanged sentences

Total $ 13,524 $ 50,753 $ 19,311 $ 3,079 $ 86,667

Nine Months Ended September 30, 2024

(In thousands of U.S.

Dollars) Technology Sales

Image Enhancement and Maintenance Services

Technology Rentals

Finance Income

Content Solutions Segment

Film Remastering and Distribution $ — $ 77,712 $ — $ — $ 77,712

Other Content Solutions — 21,292 214 — 21,506

— 99,004 214 — 99,218

Technology Products and Services Segment

System Sales 50,926 — — — 50,926

System Rentals — — 48,545 — 48,545

Maintenance — 45,835 — — 45,835

Finance Income — — — 6,713 6,713

50,926 45,835 48,545 6,713 152,019

Sub-total for reportable segments 50,926 144,839 48,759 6,713 251,237

All Other 3,703 4,589 7 — 8,299

Total $ 54,629 $ 149,428 $ 48,766 $ 6,713 $ 259,536

For the three and nine months ended September 30, 2025, revenues earned from Technology Sales include variable consideration of $ 5.1 million and $ 11.4 million, respectively (2024 — $ 8.2 million and $ 17.6 million, respectively).

For the three and nine months ended September 30, 2025, revenues earned from leasing arrangements total $ 23.3 million and $ 61.8 million, respectively (2024 — $ 15.9 million and $ 48.4 million, respectively), including $ 23.3 million and $ 61.8 million, respectively, in Revenues ― Technology Rentals (2024 — $ 16.0 million and $ 48.5 million, respectively), and $ nil and $ 0.1 million in the three and nine months ended September 30, 2025, respectively, in Revenues ― Technology Sales (2024 — a reversal of $ 0.1 million).

For the three months ended March 31, 2026, revenues earned from Technology Sales included variable consideration of $ 4.3 million (2025 — $ 3.2 million).

Deferred Revenue

2 unchanged sentences

Payments, upon renewal each year, are either prepaid or made in arrears and can vary in frequency from monthly to annually.

As of September 30, 2025, $ 21.3 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million).

During the three and nine months ended September 30, 2025, $ 9.6 million and $ 29.4 million of revenue, respectively, was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.

During the three and nine months ended September 30, 2024, $ 11.5 million and $ 35.7 million of revenue, respectively, was recognized from the $ 67.1 million balance of deferred revenue as of December 31, 2023.

As of March 31, 2026, $ 21.4 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2025 — $ 28.3 million).

During the three months ended March 31, 2026, $ 8.8 million of revenue was recognized from the $ 50.4 million balance of deferred revenue as of December 31, 2025.

During the three months ended March 31, 2025, $ 9.0 million of revenue was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.

Segment Reporting

4 unchanged sentences

Intercompany profit or loss is not included in the evaluation of performance and allocation of resources.

Segment Financial Information

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

(In thousands of U.S.

2025 2024 2025 2024

Content Solutions

$ 44,832 $ 30,129 $ 31,923 $ 16,449

Technology Products and Services

60,420 57,971 34,820 31,964

Sub-total for reportable segments

105,252 88,100 66,743 48,413

1,402 3,352 528 2,606

Total $ 106,654 $ 91,452 $ 67,271 $ 51,019

(1) The Company’s largest customer represents 10 % of total Revenues for the three months ended September 30, 2025 (2024 — 13 %).

No single customer comprised more than 10% of the Company’s total Accounts Receivable balance as of September 30, 2025.

No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2024.

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

The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended March 31, 2026 and 2025:

(In thousands of U.S.

8 unchanged sentences

Total $ 81,379 $ 86,667 $ 45,811 $ 53,176

(1) The Company’s largest customer represented 9 % of total Revenues for the nine months ended September 30, 2025 (2024 — 11 %).

No single customer comprised more than 10% of the Company’s total Accounts Receivable as of September 30, 2025.

No single customer comprised more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.

(1) The Company’s largest customer for the three months ended March 31, 2026 represented 11 % of total Revenues.

The Company’s largest customer for the three months ended March 31, 2025 represented 15 % of total Revenues.

No single customer comprised more than 10% of the Company’s total Accounts Receivable as of March 31, 2026 or December 31, 2025.

The following table presents the Costs and Expenses Applicable to Revenues for the Content Solutions segment that is made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S.

Content Solutions Segment:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands of U.S.

$ 31,370 $ 34,249

$ 44,832 $ 30,129 $ 113,046 $ 99,218

Film asset amortization

4,571 4,792 14,100 18,659

Marketing and other selling expenses

4,218 5,172 10,068 11,848

Co-produced film participation expenses

164 166 343 3,151

Other segment expenses (1)

3,956 3,550 10,627 10,874

Total Costs and Expenses Applicable to Revenues

4 unchanged sentences

Technology Products and Services Segment:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands of U.S.

$ 48,338 $ 50,593

$ 60,420 $ 57,971 $ 166,652 $ 152,019

Depreciation of equipment supporting JRSAs

5,841 5,516 17,219 17,011

Marketing and other selling expenses

597 386 1,252 1,062

Write-down of equipment supporting JRSAs

478 523 566 2,660

Write-down of inventory

98 150 201 266

Other segment expenses (1)

4 unchanged sentences

(1) Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs.

Also included is a recovery of $ 0.5 million for insurance proceeds received during the nine months ended September 30, 2025, associated with inventory costs that were previously written off.

The total proceeds received were $ 0.7 million, and the incremental gain of $ 0.2 million was recognized in selling, general and administrative expenses.

Geographic Information

2 unchanged sentences

IMAX Film Remastering and distribution revenue is generated through contractual relationships with studios and other third parties that may not be in the same geographical location as the IMAX Systems that exhibit the remastered films.

The following table summarizes the Company’s revenues by geographic area for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

The following table summarizes the Company’s revenues by geographic area for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands of U.S.

3 unchanged sentences

Asia (excluding Greater China)

23,235 16,930 41,838 35,643

Western Europe

14,050 3,741 35,715 28,440

Latin America 2,544 1,957

2 unchanged sentences

Total $ 81,379 $ 86,667

The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Western Europe, and Asia (excluding Greater China) each comprise greater than 10 % of the Company’s total revenues for the three and nine months ended September 30, 2025 and 2024.

The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Asia (excluding Greater China), and Western Europe each comprise greater than 10 % of the Company’s total revenues for the three months ended March 31, 2026.

The United States, Greater China, and Asia each comprise greater than 10 % of the Company’s total revenues for the three months ended March 31, 2025.

Employee’s Pension and Postretirement Benefits

3 unchanged sentences

Gelfond under the SERP is fixed at $ 20.3 million.

As of September 30, 2025, the Company’s projected benefit obligation under the SERP was $ 17.4 million (December 31, 2024 — $ 19.0 million).

For the three and nine months ended September 30, 2025, the Company recorded interest costs of $ 0.1 million and $ 0.5 million, respectively, (2024 — $ 0.2 million and $ 0.6 million, respectively) related to the SERP.

Pursuant to an amendment to his employment agreement dated July 17, 2025, the term of Mr.

Gelfond’s employment was extended through December 31, 2028.

As a result, during the three months ended September 30, 2025, the Company recorded an actuarial gain of $ 2.3 million as a component of Other Comprehensive (Loss) Income.

As of March 31, 2026, the Company’s projected benefit obligation under the SERP was $ 17.7 million (December 31, 2025 — $ 17.5 million).

For the three months ended March 31, 2026, the Company recorded interest costs of $ 0.2 million (2025 — $ 0.2 million) related to the SERP.

The Company expects to recognize additional interest costs of $ 0.5 million related to the SERP during the remainder of 2026.

4 unchanged sentences

Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”).

As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.5 million (December 31, 2024 — $ 0.5 million).

For the three and nine months ended September 30, 2025, the Company has recorded an expense of less than $ 0.1 million, respectively (2024 — less than $ 0.1 million, respectively) related to this plan.

As of March 31, 2026, the Company’s postretirement benefits obligation under this plan is $ 0.5 million (December 31, 2025 — $ 0.5 million).

For the three months ended March 31, 2026, the Company has recorded an expense of less than $ 0.1 million (2025 — less than $ 0.1 million) related to this plan.

Postretirement Benefits – Canadian Employees

1 unchanged sentence

The Company will provide eligible participants, upon retirement, with health and welfare benefits.

As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.8 million (December 31, 2024 — $ 0.8 million).

For the three and nine months ended September 30, 2025, the Company has recorded expense of less than $ 0.1 million, respectively, (2024 — less than $ 0.1 million, respectively) related to this plan.

As of March 31, 2026, the Company’s postretirement benefits obligation under this plan is $ 0.9 million (December 31, 2025 — $ 1.0 million).

For the three months ended March 31, 2026, the Company has recorded expense of less than $ 0.1 million (2025 — less than $ 0.1 million) related to this plan.

Deferred Compensation Benefit Plan

1 unchanged sentence

Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein).

As of September 30, 2025, the benefit obligation related to the Retirement Plan was $ 4.4 million (December 31, 2024 — $ 4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.

As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future

with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

As of March 31, 2026, the benefit obligation related to the Retirement Plan was $ 4.5 million (December 31, 2025 — $ 4.4 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.

As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses.

As of September 30, 2025, fair value of the COLI asset was $ 3.7 million (December 31, 2024 — $ 3.6 million).

As of March 31, 2026, fair value of the COLI asset was $ 3.8 million (December 31, 2025 — $ 3.8 million).

Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.

2 unchanged sentences

The Company’s cash is invested with various major financial institutions.

The Company’s $ 143.1 million balance of cash and cash equivalents as of September 30, 2025 (December 31, 2024 — $ 100.6 million) included $ 129.8 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 85.8 million was held in the PRC (December 31, 2024 — $ 47.5 million).

The Company’s $ 146.0 million balance of cash and cash equivalents as of March 31, 2026 (December 31, 2025 — $ 151.2 million) included $ 139.5 million in cash held outside of Canada (December 31, 2025 — $ 137.4 million), of which $ 101.0 million was held in the PRC (December 31, 2025 — $ 97.2 million).

Fair Value Measurements

1 unchanged sentence

Including these instruments, the Company’s financial instruments consisted of the following:

As of September 30, 2025

As of March 31, 2026

As of December 31, 2025

10 unchanged sentences

( 526 ) ( 526 ) ( 743 ) ( 892 )

(1) Fair value is determined using quoted prices in active markets.

2030 Convertible notes (2)

( 250,000 ) ( 276,368 ) ( 250,000 ) ( 278,708 )

(1) Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms.

(2) Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

14 unchanged sentences

The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies.

Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of September 30, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026.

Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of March 31, 2026 (the “Foreign Currency Hedges”), with settlement dates throughout 2026 and 2027.

Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value.

5 unchanged sentences

Notional value of derivatives in foreign exchange contracts:

September 30, December 31,

March 31, December 31,

(In thousands of U.S.

3 unchanged sentences

Fair value of derivatives in foreign exchange contracts:

September 30, December 31,

March 31, December 31,

(In thousands of U.S.

4 unchanged sentences

( 232 ) ( 2 )

$ 300 $ ( 2,029 )

Derivatives in foreign currency hedging relationships are as follows:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands of U.S.

2025 2024 2025 2024

Foreign exchange contracts — Forwards

Derivative (Loss) Gain Recognized in OCI

Derivative Loss Recognized in OCI

(Effective Portion)

$ ( 631 ) $ ( 715 )

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands of U.S.

Location of Derivative Loss

Location of Derivative Gain (Loss)

Reclassified from AOCI

(Effective Portion)

2025 2024 2025 2024

Foreign exchange contracts — Forwards

2 unchanged sentences

$ 342 $ ( 1,335 )

The Company’s estimated net amount of the existing gain as of September 30, 2025 is $ 0.3 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

The Company’s estimated net amount of the existing gain as of March 31, 2026 is less than $ 0.1 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

Non-Controlling Interests

IMAX China Non-Controlling Interest

As of September 30, 2025, t he Company indirectly owned 71.72 % of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40 %).

As of March 31, 2026, t he Company indirectly owned 71.57 % of the outstanding equity interests in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2025 — 71.57 %).

IMAX China remains a consolidated subsidiary of the Company.

As of September 30, 2025, the balance of the Company’s non-controlling interest in IMAX China was $ 86.5 million (December 31, 2024 — $ 78.1 million).

For the three and nine months ended September 30, 2025, the net income attributable to the non-controlling interest in IMAX China was $ 1.9 million and $ 8.7 million, respectively (2024 — $ 1.4 million and $ 5.1 million, respectively).

As of March 31, 2026, the balance of the Company’s non-controlling interest in IMAX China was $ 92.2 million (December 31, 2025 — $ 89.2 million).

For the three months ended March 31, 2026, the net income attributable to the non-controlling interest in IMAX China was $ 1.8 million (2025 — $ 5.8 million).

Restructuring and Other Charges

In the three and nine months ended September 30, 2025, the Company incurred $ nil and $ 0.8 million, respectively (2024 — $ nil , respectively) in Restructuring and other charges in the Condensed Consolidated Statements of Operations.

These charges reflect the Company’s ongoing strategic initiatives to streamline operations, reduce costs, and enhance organizational efficiency.

Specifically, in the nine months ended September 30, 2025, the Company incurred $ 0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles and $ 0.3 million of non-recurring fees relating to the 2024 internal asset sale as described in the 2024 Form 10-K.

As of September 30, 2025, the Company’s liability was $ 0.8 million (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

In the three months ended March 31, 2026, the Company incurred $ nil (2025 — $ 0.1 million) in Restructuring and other charges in the Condensed Consolidated Statements of Operations.

In 2025, the charges were related to the assessment of the corporate structure and the resulting internal asset sale.

As of March 31, 2026, the Company’s liability was $ 0.6 million (December 31, 2025 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements