What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-30 compared with 2025-10-23 · 308 added, 420 removed, 396 unchanged (65% of the section changed)

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

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

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

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

This MD&A should be read in conjunction with the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company’s audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in the Company’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”).

As of March 31, 2026, the Company indirectly owned 71.57% of the outstanding equity interest in IMAX China Holding, Inc.

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

IMAX China is a consolidated subsidiary of the Company.

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

For the three months ended March 31, 2026, net income attributable to IMAX China was $6.4 million, of which $4.6 million was attributable to the shareholders of the Company (2025 — $20.4 million and $14.6 million, respectively).

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

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

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

Words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “improve,” “likely,” “may,” “plan,” “potential,” “project,” “projection,” “prospect,” “remain,” “runway,” “scheduled,” “seek,” “strategy,” “subject to,” “target,” “upcoming,” “will,” or the negative thereof, and similar expressions identify forward-looking statement and information.

These forward-looking statements and information include, but are not limited to, statements regarding the Company’s business and technology strategies and measures to implement such strategies, including with respect to its brand extensions and re-positionings and new business initiatives;

the Company’s competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for expansion and growth of business, networks, operations and technology;

future cash flow and revenue realization;

capital allocation, including the amount and nature of future capital expenditures and the sufficiency of capital and liquidity to fund the Company’s anticipated operating needs;

the Company’s capital structure, including the incurrence and repayment of debt and the impact of its restrictive debt covenants on operating and financial flexibility;

anticipated contributions to pension and postretirement benefit plans;

the Company’s technological capabilities and the differentiation thereof, including with respect to artificial intelligence (“AI”);

the Company’s ability to enhance its brand equity and brand awareness and the benefits thereof;

industry prospects and developments and shifts in consumer behavior;

the Company’s upcoming film slate and content pipeline, including the timing and performance thereof;

and plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results.

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

However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States, Canada, and China, including with respect to escalating and uncertain tariffs and other trade regulations, as well as economic and trade tensions, trade wars, and geopolitical conflicts and the effects thereof;

risks related to the Company’s growth and operations in China;

industry conditions in China affecting both the Company and its partners;

risks related to the failure of the Company’s exhibitors being able to fulfill their contractual payment obligations;

risks related to the Company’s failure to attract and retain its employee population;

However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to:

risks associated with the Company’s investments, operations and future expansion in foreign jurisdictions, including the impact of economic, political and regulatory policies and laws of the United States, Canada, and China, tariffs and other trade regulations, and economic and trade tensions, trade wars, and geopolitical conflicts;

risks related to the Company’s growth and operations in China, including industry conditions affecting both the Company and its partners;

the ability of the Company’s exhibitor customers to fulfill their contractual payment obligations;

risks related to the Company’s ability to attract and retain its employee population or the loss of the Company’s key personnel;

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

the signing of IMAX theater system agreements;

conditions, changes and developments in the commercial exhibition industry;

risks related to the Company’s inability to enter into new sales and lease agreements adversely affecting revenue;

risks related to the Company’s operating results and cash flow increasing the volatility of the Company’s share price;

risks related to currency fluctuations and foreign exchange controls;

the Company’s ability to enter into new IMAX theater system agreements and sales and lease agreements and the effects thereof ;

fluctuations in operating results and cash flow ;

currency fluctuations and foreign exchange controls;

the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies;

the failure to respond to change and advancements in technology;

risks relating to consolidation among commercial exhibitors and studios;

risks related to brand extensions and new business initiatives;

conditions in the in-home and out-of-home entertainment industries;

the opportunities (or lack thereof) that may be presented to and pursued by the Company;

risks related to cybersecurity and data privacy;

risks related to the Company’s inability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others;

risks associated with the Company’s use of artificial intelligence (“AI”) and exploration of additional use cases of AI;

risks related to climate change;

risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business;

risks related to the Company’s indebtedness and compliance with its debt agreements;

the ability of the Company to respond to change and advancements in technology, including with respect to AI products and AI-generated content;

the potential impacts of consolidation among commercial exhibitors and studios;

success of brand extensions and new business initiatives;

conditions and competition in the in-home (including streaming) and out-of-home entertainment industries;

the Company’s ability to identify and pursue new business opportunities (or lack thereof);

cybersecurity and data privacy incidents;

the Company’s ability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others;

effects of environmental laws and regulations, including with respect to climate change;

weather conditions and natural disasters that may disrupt or harm the Company’s business;

effects of the Company’s indebtedness on its cash flow and business activities and the Company’s ability to comply with its debt agreements;

general economic, market or business conditions;

risks related to sustained inflationary pressure;

risks related to political, economic and social instability;

the failure to convert system backlog into revenue and cash flows;

changes in laws or regulations;

sustained inflationary pressure;

political, economic and social instability and the resulting disruptions to the Company’s operations or supply chain;

the Company’s ability to convert system backlog into revenue and cash flows;

accuracy of assumptions underlying goodwill impairment assessment and fair value measurements;

changes in laws, regulations or accounting principles;

any statements of belief and any statements of assumptions underlying any of the foregoing;

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

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

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

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

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Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways.

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

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

The Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide;

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

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

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

As of March 31, 2026, there were 1,865 IMAX Systems operating in locations in 91 countries and territories, including 1,798 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network.

This compares to 1,810 IMAX Systems operating in locations in 89 countries and territories as of March 31, 2025, including 1,738 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network.

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

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

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

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

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

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

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

• ongoing maintenance and extended warranty services;

• ongoing maintenance and extended warranty services to ensure a consistent image and sound quality presentation across the IMAX global network;

• a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX’s growing social media followership.

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

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

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

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

For additional discussion, see section titled “IMAX Film Remastering and Distribution” below.

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

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

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

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

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

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

Infinity Castle with IMAX box office of $72 million.

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

The Company now has four releases on the year:

Sinners , Mission:

Impossible - The Final Reckoning , F1:

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

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

The Company offers a suite of laser-based digital projection systems (“IMAX Laser Systems”), which deliver increased resolution, sharper and brighter images, deeper contrast, and the widest range of colors available to filmmakers today.

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

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

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

government has implemented substantial and rapidly evolving changes to U.S.

trade policies, including increased tariffs on imports.

These actions have resulted in retaliatory measures and uncertainty in global trade relationships.

For a description of these risks, see “Risk Factors —The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.” in Part II, Item 1A of this Form 10-Q.

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

IMAX has become a key premium distribution and marketing platform for Hollywood and local language films driven by IMAX’s leading global network footprint and scale, the incremental global box office generated by IMAX films and the growing demand by moviegoers for the differentiated quality of The IMAX Experience .

The Company achieved global box office of $260 million in the first quarter of 2026 .

The Company’s first quarter global box office was derived from 34 pieces of content distributed across its global network.

The first quarter was highlighted by the performance of the carry-over of Avatar:

Fire and Ash that drove record January global box office and the March release of the Filmed For IMAX ® title Project Hail Mary , in which IMAX captured 20% of the opening weekend global box office, despite IMAX representing less than 1% of screens worldwide.

The Company continues to expand its local language strategy with 17 releases across 9 countries, including a first in Taiwan, with total first quarter local language box office of $62 million (or 24% of global box office), led by Chinese film, Pegasus 3.

Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for The IMAX Experience continues to strengthen among theatergoers.

During the first quarter of 2026, the Company’s trailing twelve month domestic box office market share was 5.4% and global market share was 3.8%.

See “Results of Operations” below for a discussion of the Company’s first quarter 2026 results as compared to the prior year period.

Recent Developments

As announced on March 30, 2026, Richard Gelfond, the Company’s Chief Executive Officer, is on a temporary medical leave of absence.

On April 16, 2026, the Company appointed Robert D.

Lister, its Chief Legal Officer and Senior Executive Vice President, to serve as the Company’s interim principal executive officer (“PEO”) in addition to his current duties until May 1, 2026, following which Mr.

Gelfond will resume the role of PEO.

Gelfond has been gradually re-engaging in the Company’s business and is involved in all strategic decisions.

Until his leave is over, the Company’s management team will continue with its day-to-day responsibilities in coordination with Mr.

(Refer to “Risk Factors—The loss of one or more of the Company’s key personnel, or its failure to attract and retain its employee population, could adversely affect its business.” in Part I, Item 1A.

in the 2025 Form 10-K.)

SOURCES OF REVENUE

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Content Solutions

The Content Solutions segment earns revenue from Film Remastering, including the distribution of this content across the IMAX global network.

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

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

The Content Solutions segment earns revenue from IMAX Film Remastering, including the distribution of this content across the IMAX global network.

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

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

Film Remastering and Distribution

IMAX Film Remastering is a proprietary technology that digitally remasters films and other content into IMAX formats for distribution across the IMAX network.

In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the box office from a movie studio in exchange for converting a commercial film into the IMAX format and distributing it through the IMAX network.

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

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

In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the global box office from a studio in exchange for converting a commercial film into the IMAX format and distributing it through the IMAX network.

The fee earned by the Company in a typical IMAX Film Remastering and distribution arrangement averages approximately 12.5% of box office on a gross basis before sales taxes except within Greater China, where the Company often receives a lower percentage of net box office due to an incremental importation fee paid by the studios.

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

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

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Collectively, the Company refers to these enhancements as “IMAX DNA.” Filmmakers and movie studios increasingly seek to infuse more IMAX DNA in theatrical releases to realize a filmmaker’s creative vision more fully, while generating interest and excitement among moviegoers.

Such enhancements include shooting films with IMAX cameras to increase the audience’s immersion in the film and to take advantage of the unique dimensions of the IMAX screen by projecting the film in a larger aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen.

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

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

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

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

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

The Company’s strategy to capitalize on this opportunity includes expanding the IMAX network into underpenetrated international markets and growing the number of local language films released, particularly in China, Japan, India, France, and South Korea.

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

Filmed For IMAX is IMAX’s filmmaker partnership program.

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

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

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

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

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

In the first quarter of 2026, Filmed For IMAX titles on average indexed over 14% higher than titles with no IMAX DNA.

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

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

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

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

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

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

For the three months ended March 31, 2026, local language films exhibited across the Company’s global network generated $62 million in box office, representing 24% of the Company’s global box office.

The following table provides the number of new films and other content released to the Company’s global network during the three months ended March 31, 2026 and 2025:

Three Months Ended

Hollywood film releases (1)

Local language film releases:

China 12 10 22 18

Japan 4 4 8 12

South Korea 2 2

India 1 3 7 7

Vietnam 1 — 2 —

Thailand 1 1 1 1

Germany 1 — 1 —

France — — 2 —

Indonesia 1 1

Egypt — — 1 —

Saudi Arabia — — 1 —

Malaysia — 1 — 1

Total local language film releases

Other Content Solutions

The Company distributes large-format documentary feature films through its global commercial network and institutional theaters.

Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater box office and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues.

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

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

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

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

and French language Athos produced by Federation Studio France.

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

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

Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater global box office and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues.

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

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

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

As of March 31, 2026, the Company had distribution rights with respect to approximately 75 films, which cover subjects such as space, wildlife, music, sports, history, and natural wonders.

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

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

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

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

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

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

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

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

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

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

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

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

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

In addition, the Company continued its partnership with A24 for one-night-only IMAX releases of classic A24 titles, including Talk to Me , Moonlight, and Spring Breakers.

The Company collaborated with Fandango Media for the Fortnite Championship Series:

Pro-Am screening in eight North American IMAX locations and with Wanda Film for the F1 Spanish Grand Prix screening across six IMAX locations in China.

As of March 31, 2026, the Company has 252 connected IMAX locations worldwide.

Furthermore, the Company can use its live streaming technologies to deliver events to additional IMAX locations around the world.

In the three months ended March 31, 2026, the Company partnered with Neon Rated and Universal Pictures on the release of EPiC:

Elvis Presley in Concert.

The Company also partnered with Bleecker Street and Universal Pictures for the release of Stray Kids:

The dominATE Experience, and with Trafalgar for release of Twenty One Pilots:

More Than We Ever Imagined.

In addition, the Company partnered with Mercury Studios for a two-night-only screening of Eric Church:

Evangeline vs.

The Machine Comes Alive, and with Sony Pictures for the two-night-only screening of TOMMY in IMAX (50th Anniversary) .

The Company also partnered with A24 for a limited release of Marty Supreme across approximately 150 IMAX locations in the United States, Australia, and New Zealand.

In March 2026, the Company partnered with MGM Studios for an exclusive Q&A livestream in advance of the screening of Project Hail Mary across a limited number connected IMAX locations in North America.

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

In addition, the Company provides IMAX film and digital cameras to content creators under the IMAX certified camera program.

In addition, the Company also provides IMAX film and digital cameras to content creators under the IMAX certified camera program.

Technology Products and Services

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

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

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

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

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Once an IMAX System is installed, the initial fees and the present value of future annual minimum payments, which are financing fees, are recognized as revenue.

In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum box office receipt thresholds are exceeded is recorded as revenue in the period when the sale is recognized and is adjusted in future periods based on actual results and changes in estimates.

In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum global box office receipt thresholds are exceeded is recorded as revenue in the period when the sale is recognized and is adjusted in future periods based on actual results and changes in estimates.

Such variable consideration is only recognized on sales transactions to the extent the Company believes there is not a risk of significant revenue reversal.

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Joint Revenue Sharing Arrangements

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

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

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

In exchange for its upfront investment, the Company, primarily, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments.

In exchange for its upfront investment, the Company, generally, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments.

Rental payments from the customer are required throughout the term of the arrangement and are typically due either monthly or quarterly.

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The Company has the right to remove the equipment for non-payment or other defaults by the customer.

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

The revenue earned from customers under the Company’s JRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive box office levels including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, size and management of the theater and other factors specific to individual arrangements.

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

The revenue earned from customers under the Company’s JRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive global box office levels including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, size and management of the theater and other factors specific to individual arrangements.

JRSAs also require IMAX to provide maintenance and extended warranty services to the customer over the term of the lease in exchange for a separate fixed annual fee.

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

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

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

As of March 31, 2026, the Company had 881 locations under JRSAs in its global commercial multiplex network.

The Company also had contracts in backlog for 255 IMAX systems under JRSAs as of March 31, 2026, including 149 new locations and 106 upgrades to existing locations.

IMAX Maintenance

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

IMAX Enhanced | Streaming and Consumer Technology

Streaming and Consumer Technology

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

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

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

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

Device Certification & Calibration:

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

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

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

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

As of March 31, 2026, IMAX Enhanced certified devices in-market are with partners including Sony Electronics, Hisense, TCL, LG, and Philips.

The SCT products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have been integrated into the IMAX Enhanced program, streamlining operations and enabling partners to deliver premium viewing experiences validated through IMAX’s proprietary quality standards.

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

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

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

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the provision of management services to three other theaters;

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

and merchandising revenue.

IMAX NETWORK AND BACKLOG

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

The following table provides detailed information about the IMAX network by type and geographic location as of March 31, 2026 and 2025.

For additional information regarding the composition of the IMAX network, see “Marketing and Customers” in Part I, Item 1 of the Company’s 2025 Form 10-K.

September 30, 2025 September 30, 2024

March 31, 2026 March 31, 2025

Institutional

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(See “Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows,” and “Risk Factors – General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems” in Part I, Item 1A of the Company’s 2025 Form 10-K.)

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

IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,798 IMAX Systems operating as of March 31, 2026, representing a market penetration of only 40%.

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

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

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

from the United States and Canada.

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

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

September 30, 2025

As of March 31, 2026, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada).

Revenues and gross box office (“GBO”) derived from international markets continue to exceed revenues and GBO from the United States and Canada.

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of March 31, 2026 and 2025:

March 31, 2026

Commercial Multiplex Locations in IMAX Network

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

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

September 30, 2024

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

(3) Includes 31 IMAX Systems that were converted from Hybrid JRSA arrangement types to Sales Arrangements during the three months ended March 31, 2026.

March 31, 2025

Commercial Multiplex Locations in IMAX Network

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

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

September 30, 2025

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of March 31, 2026 and 2025:

March 31, 2026

IMAX System Backlog

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(2) Worldwide Total of 435 includes 219 new IMAX Laser Systems and 134 upgrades of existing locations to IMAX Laser Systems.

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

September 30, 2024

(3) Worldwide Total of 435 includes 301 new systems and 134 upgrades.

March 31, 2025

IMAX System Backlog

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(2) Worldwide Total of 516 includes 254 new IMAX Laser Systems and 161 upgrades of existing locations to IMAX Laser Systems.

(3) Worldwide Total of 472 includes 363 new system backlog and 109 upgrade system backlog.

(3) Worldwide Total of 516 includes 355 new systems and 161 upgrades.

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

The Company believes that the contractual obligations for IMAX System installations that are listed in backlog are valid and binding commitments.

From time to time, in the normal course of its business, the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals or financing.

From time to time, the Company and its customers may amend the arrangement type of a backlog system, and in the normal course of its business the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals or financing.

Certain of the Company’s contracts contain options for the customer to elect to upgrade system type during the term or to alter the contract structure (for example, from a JRSA to a sale) after signing, but before installation.

Current backlog information reflects all known elections.

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

As of March 31, 2026, 73% of IMAX System arrangements in backlog were scheduled to be installed in international markets (2025 — 74%).

(See “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A of the Company’s 2025 Form 10-K.)

Signings and Installations

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

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

The following tables provide detailed information about IMAX System signings and installations for the three months ended March 31, 2026 and 2025:

Three Months Ended

System Signings:

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Total IMAX System signings (3)

19 16 142 111

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

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

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

(2) Includes 70 Traditional JRSA IMAX System signings with AMC Entertainment in 2025.

(3) Includes IMAX System upgrades of 13 for the three months ended March 31, 2026 (2025 ― 58 upgrades).

Three Months Ended

System Installations (1) :

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Total IMAX System installations (3)

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

(1) No IMAX Systems were relocated from their original location for the three months ended March 31, 2026 (2025 ― three).

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

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

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

(3) Includes 11 IMAX System upgrades for the three months ended March 31, 2026 (2025 ― seven upgrades).

RESULTS OF OPERATIONS

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

Net Income and Adjusted Net Income Attributable to Common Shareholders

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

Three Months Ended September 30,

(In thousands of U.S.

Dollars, except per diluted share amounts)

Per Diluted Share

Net income attributable to common shareholders

$ 20,657 $ 0.37 $ 13,896 $ 0.26

Adjusted net income attributable to common shareholders *

$ 26,240 $ 0.47 $ 18,855 $ 0.35

*Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.

Revenues and Gross Margin

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

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

Revenue Gross Margin Gross Margin %

(In thousands of U.S.

2025 2024 2025 2024 2025 2024

Content Solutions

$ 44,832 $ 30,129 $ 31,923 $ 16,449 71 % 55 %

Technology Products and Services

60,420 57,971 34,820 31,964 58 % 55 %

Sub-total for reportable segments

105,252 88,100 66,743 48,413 63 % 55 %

All Other (1)

1,402 3,352 528 2,606 38 % 78 %

Total $ 106,654 $ 91,452 $ 67,271 $ 51,019 63 % 56 %

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

Content Solutions

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

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

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

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

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

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

First Steps ($49 million).

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

The Japanese local language film, Demon Slayer:

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

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

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

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

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

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

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

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

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

Technology Products and Services

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

Three Months Ended September 30,

(In thousands of U.S.

Dollars, except number of systems) Number of Systems Revenue Number of Systems Revenue

New IMAX Systems

16 $ 12,318 12 $ 11,363

Upgraded IMAX Systems

2 1,881 8 9,424

Total IMAX Systems

18 $ 14,199 20 $ 20,787

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

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

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

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

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

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

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

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

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

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

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

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

Selling, General and Administrative Expenses

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

Three Months Ended

September 30, Variance

(In thousands of U.S.

Total Selling, general and administrative expenses

$ 34,219 $ 31,466 $ 2,753 9 %

Share-based compensation (1)

(5,763) (5,036) (727) (14 %)

Total Adjusted Selling, general and administrative expenses

$ 28,456 $ 26,430 $ 2,026 8 %

(1) A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development.

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

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

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

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

Research and Development

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

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

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

Credit Loss Expense (Reversal), Net

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

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

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

As a result, the Company’s judgments and

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

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

Interest Expense and Interest Income

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

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

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

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

Non-Controlling Interests

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

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

The Company’s results for the first quarter reflect variability driven by the timing, mix and geographic distribution of global box office performance.

The year-over-year decline in total global box office was primarily attributable to an unusually strong prior-year comparison in Greater China.

Domestic and other international markets experienced strong box office growth, driven by the performance of Hollywood titles and Filmed For IMAX releases.

The Company’s future results may continue to be affected by the timing and performance of major film releases, the mix of Hollywood and local language content, and the geographic concentration of box office revenues, as well as by variability in system installations and box office-driven revenues.

In addition, broader macroeconomic conditions, including global economic uncertainty, supply chain disruptions, inflationary pressures and geopolitical tensions and conflicts, could adversely impact consumer demand and the Company’s ability to deliver and install IMAX systems, any of which could materially affect the Company’s financial condition and results of operations.

Results of Operations for the Three Months Ended March 31, 2026 and 2025

Net Income and Adjusted Net Income Attributable to Common Shareholders

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

Nine Months Ended September 30,

The following table presents the Company’s net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders* and adjusted net income attributable to common shareholders per diluted share for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands of U.S.

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Revenues and Gross Margin

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

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

For the three months ended March 31, 2026, the Company’s revenues and gross margin were $81.4 million and $45.8 million, respectively.

In comparison to the prior year first quarter, the Company’s revenues and gross margin decreased by $5.3 million, or 6%, and $7.4 million, or 14%, respectively, principally due to lower IMAX box office performance in Greater China, which more than offset the growth in the domestic and other international markets.

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

Revenue Gross Margin Gross Margin %

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Content Solutions

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

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

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

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

F1 The Movie ($97 million), Mission:

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

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

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

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

The Japanese local language film, Demon Slayer:

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

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

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

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

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

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

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

For the three months ended March 31, 2026, Content Solutions segment revenues and gross margin decreased by $2.9 million, or 8%, and by $5.2 million, or 22%, respectively, when compared to the same period in 2025.

In the three months ended March 31, 2026, box office generated by IMAX films totaled $259.6 million, a $38.5 million, or 13%, decrease versus the prior year comparative period of $298.2 million.

This decrease was primarily driven by lower local language box office in the first quarter of 2026, due partially to the shift in 2026 local language blockbuster films from the Chinese New Year period to later in the year versus a record Chinese New Year in the first quarter of 2025 from the breakout performance of Ne Zha 2 (the highest grossing local language film of all time).

Domestic and international (excluding Greater China) global box office increased 75% and 60%, respectively, over the prior year comparative period as the performance of Hollywood content strengthened.

During the three months ended March 31, 2026, IMAX box office was generated by the exhibition of 34 films and other content (31 new films, two re-releases, and one carry-over), including the following Hollywood titles:

Fire and Ash ($77 million), Project Hail Mary ($66 million), Scream 7 ($8 million), and Wuthering Heights ($7 million).

In addition, in the three months ended March 31, 2026, local language films exhibited across the Company’s global network generated $62 million in box office, representing 24% of its global box office, including the Chinese local language film, Pegasus 3 ($34 million) and Blades of the Guardians ($7 million).

In the three months ended March 31, 2025, IMAX box office revenue was generated by the exhibition of 34 films (33 new films and one re-release), with Chinese local language film Ne Zha 2 representing 54% of its global box office.

In the three months ended March 31, 2026, the Company released four movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including Mercy , The Bride!

, Project Hail Mary , and the IMAX documentary Athos.

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

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

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

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

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

For the three months ended March 31, 2026, gross margin percent was 58% compared to 69% in the prior period.

The Content Solutions margin decline was driven by a combination of factors including;

lower box office performance in Greater China, with no significant breakout title, a lower mix of local language films which carries a higher margin, and an increased level of film marketing spend associated with upcoming large tentpole titles.

Technology Products and Services

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

Nine Months Ended September 30,

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs, for which revenue is recognized over the lease term, during the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands of U.S.

Dollars, except number of systems Number of

Dollars, except number of systems)

Systems Revenue Number of

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Total 8 $ 7,281 13 $ 10,584

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

In the three months ended March 31, 2026, no IMAX Systems were relocated from their original locations (2025 ― three IMAX Systems).

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

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

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

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

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

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

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

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

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

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

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

For the three months ended March 31, 2026, Technology Products and Services segment revenue and gross margin decreased by $2.3 million, or 4%, and $2.2 million, or 8%, respectively, when compared to the same period in the prior year.

The lower level of revenue was primarily driven by a lower level of rental revenues, which are box office dependent.

Rental revenues of $16.6 million, a decrease of $2.6 million from $19.1 million in the prior year comparative period, were driven by a $31.8 million decrease in GBO from JRSAs in the three months ended March 31, 2026 versus the prior year.

Specifically, in the first quarter of 2026 an increase of $5.3 million in rental revenues from domestic and international markets (excluding Greater China) was more than offset by a $7.9 million revenue decline in Greater China.

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

The decreases in revenue were partially offset by a $3.1 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements.

For the three months ended March 31, 2026, gross margin percent was 56% compared to 57% in the same period in the prior year, which primarily reflects the lower level of rental revenues offset partially by the impact of amendments, renewals and other adjustments as described above, which did not have associated costs.

For the three months ended March 31, 2026, All Other revenue and gross margin decreased by $0.2 million, and less than $0.1 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business which was re-positioned and relaunched in late 2025 under the brand of IMAX Enhanced.

Selling, General and Administrative Expenses

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

Nine Months Ended

September 30, Variance

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended March 31, 2026 and 2025:

Three Months Ended

March 31, Variance

(In thousands of U.S.

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(5,909) (4,720) (1,189) (25 %)

Total Adjusted Selling, general and administrative expenses (2)

Total selling, general and administrative expenses, excluding share-based compensation (2)

$ 26,579 $ 28,742 $ (2,163) (8 %)

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

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

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

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

Selling, General and Administrative Expenses decreased period over period, reflecting management’s continued focus on operational efficiencies, including the impact of prior workforce reductions, timing and other cost discipline initiatives.

Research and Development

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

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

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

Credit Loss Expense (Reversal), Net

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

For the three months ended March 31, 2026, Research and Development expenses were $1.8 million, representing an increase of $0.5 million, or 37%, when compared to Research and Development expenses of $1.3 million during the same period in the prior year.

The increase year-over-year was primarily driven by the capitalization of film camera costs in 2025 in accordance with the achievement of technological feasibility in 2024.

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

Credit Loss Reversal, Net

For the three months ended March 31, 2026, the Company recorded a credit loss reversal of $0.5 million, as compared to $0.1 million recognized in the same period of the prior year.

Overall, continued strong global box office performance has contributed to a notable improvement in collections.

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

This trend reflects the continued consumer demand for premium cinematic experiences and effectiveness of IMAX's strategic initiatives to partner with filmmakers, studios, and exhibitors to deliver higher levels of box office.

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

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Interest Expense and Interest Income

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

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

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.

For the three months ended March 31, 2026, interest expense was $1.9 million, representing an increase of $0.1 million, or 5%, as compared to $1.8 million during the same period of the prior year primarily due to higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $8.7 million paid for lease incentives provided to exhibitor customers, in the current period offset mostly by lower average interest rates.

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

For each of the three months ended March 31, 2026 and 2025, interest income was $0.5 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 also 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.

Non-Controlling Interests

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

Restructuring and Other Charges

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

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

Specifically, the Company incurred $0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles.

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

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

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

Nine Months Ended

For the three months ended March 31, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $1.8 million, a decrease of $4.0 million, when compared to the same period in 2025, which reflects a $19.6 million total revenue decline primarily driven by the lower level of IMAX box office earned in Greater China.

CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

Three Months Ended

(In thousands of U.S.

10 unchanged sentences

$ (5,173) $ (3,523)

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

Net cash provided by the Company’s operating activities decreased $2.9 million in the three months ended March 31, 2026, when compared to the same period in 2025, primarily driven by a $7.7 million increase in cash payments related to lease incentives provided to exhibitor customers and annual short term incentive compensation payouts.

This higher level of cash outflow was partially offset by strong Accounts Receivable collections during the period.

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

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

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

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

Net cash used in investing activities decreased $7.7 million in the three months ended March 31, 2026, when compared to the same period in 2025.

Cash used in the investment in equipment contributed to the Company’s JRSAs with exhibitor customers was higher in the first quarter of 2025 due in part to the Company shipping systems into the U.S.

in advance of planned 2025 system installations as a proactive measure in response to new and potentially changing tariffs.

(Refer to “Risk Factors—The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.” in Part I, Item 1A.

in the 2025 Form 10-K.)

Net cash used in financing activities decreased $7.0 million in the three months ended March 31, 2026, when compared to the same period in 2025, mainly driven by higher taxes withheld and paid on employee stock awards vested due to the Company’s higher stock price relative to grant dates, and outperformance of PSUs vested during the period.

This decrease was partially offset by cash received for stock options exercised during the period.

LIQUIDITY AND CAPITAL RESOURCES

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

As of March 31, 2026, the Company’s principal sources of liquidity included:

(i) its balances of cash and cash equivalents of $146.0 million;

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

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

In addition, as of March 31, 2026, the Company had $326.0 million in available borrowing capacity under its Credit Facility pursuant to its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), $27.5 million in available borrowing capacity under the IMAX Shanghai revolving credit facility with the Bank of China (the “Bank of China Facility”), and $28.9 million in available borrowing capacity under IMAX Shanghai’s revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the “HSBC China Facility”).

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

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

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 People’s Republic of China (the “PRC”) (December 31, 2025 — $97.2 million).

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

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

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

During the three months ended March 31, 2026, no historical earnings from a subsidiary in the PRC were distributed (2025 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2025 — $nil).

As of March 31, 2026, the Company’s Condensed Consolidated Balance Sheets included a deferred tax liability of $12.5 million for the applicable foreign withholding taxes

associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

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

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The Company also has certain significant contractual obligations and commitments that have been disclosed in “Contractual Obligations” in Part II, Item 7 of the Company’s 2025 Form 10-K.

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

There are no material changes to these obligations and commitments as of March 31, 2026.

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

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GAAP refers to generally accepted accounting principles in the United States of America.

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

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

Securities and Exchange Commission regulations.

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

2 unchanged sentences

• Adjusted EBITDA per Credit Facility;

• Adjusted Selling, general and administrative expenses.

• Adjusted SG&A expenses.

Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable:

(i) share-based compensation;

(ii) realized and unrealized investment gains or losses;

(iii) restructuring and other charges;

and (iv) employee retention credits, and as well as the related tax impact of these adjustments.

(ii) realized and unrealized

investment gains or losses;

(iii) goodwill impairment;

(iv) restructuring charges and other impairments;

(v) employee retention credits;

and (vi) induced conversion expense on settlement of convertible notes, as well as the related tax impact of these adjustments.

The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders.

1 unchanged sentence

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

Three Months Ended September 30,

(In thousands of U.S.

Dollars, except per share amounts)

Per Diluted Share

Net income attributable to common shareholders

$ 20,657 $ 0.37 $ 13,896 $ 0.26

Adjustments (1) :

Share-based compensation

6,194 0.11 5,332 0.10

Unrealized investment gains

(34) — (32) —

Employee retention credits

Tax impact on items listed above

(433) (0.01) (341) (0.01)

Adjusted net income (1)

$ 26,240 $ 0.47 $ 18,855 $ 0.35

Weighted average shares outstanding — basic

53,788 52,682

Weighted average shares outstanding — diluted

55,565 54,089

(1) Reflects amounts attributable to common shareholders.

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands of U.S.

9 unchanged sentences

(36) — (32) —

Restructuring and other charges

Employee retention credits

(3,971) (0.07) — —

Restructuring charges and other impairments

Tax impact on items listed above

15 unchanged sentences

and (iv) amortization of deferred financing costs.

Adjusted EBITDA per Credit Facility is defined as EBITDA excluding:

Total Adjusted EBITDA per Credit Facility is defined as EBITDA excluding:

(i) share-based and other non-cash compensation;

(ii) realized and unrealized investment gains or losses;

(iii) restructuring and other charges;

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

(iii) restructuring charges and other impairments;

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

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

Reconciliations of net income attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility are presented in the tables below:

(In thousands of U.S.

Three Months Ended September 30, 2025

Reported net income

Three Months Ended March 31, 2026

Add (subtract):

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Share-based and other non-cash compensation

Unrealized investment (gains) losses

Unrealized investment gains

Write-downs, including asset impairments and credit loss expense

4 unchanged sentences

(In thousands of U.S.

Dollars) Twelve Months Ended September 30, 2025

Reported net income

Dollars) Twelve Months Ended March 31, 2026

Add (subtract):

5 unchanged sentences

Share-based and other non-cash compensation 27,342

Unrealized investment gains

Restructuring and other charges 4,592

Write-downs, including asset impairments and credit loss expense 3,042

Unrealized investment losses

Restructuring charges and other impairments

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

Induced conversion expense on settlement of convertible notes

Total Adjusted EBITDA

2 unchanged sentences

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

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

The Company also adjusts SG&A Expenses to exclude a portion of share-based compensation and related payroll taxes.

Management uses non-GAAP and other financial measures such as this, internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons.

2 unchanged sentences

Three Months Ended

Nine Months Ended

September 30, September 30,

(In thousands of U.S.

2025 2024 2025

Total Selling, general and administrative expenses

7 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis