What changed in this filing

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Item 1A. Risk Factors

2026-04-30 compared with 2025-10-23 · 45 added, 17 removed, 2 unchanged (97% of the section changed)

This Form 10-Q should be read together with, and supplement, the risk factors in Item 1A “Risk Factors” in the Company’s 2025 Form 10-K, which describes various risks and uncertainties to which the Company is or may become subject.

The risk factor below updates certain risk factors included in the Company’s 2024 Form 10-K in light of recent events.

The below risk factor and the risk factors included in the Company’s 2024 Form 10-K are not the only risks facing the Company.

The risk factors below update certain risk factors included in the Company’s 2025 Form 10-K in light of recent events.

The below risk factors and the risk factors included in the Company’s 2025 Form 10-K are not the only risks facing the Company.

Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect its business, financial condition and/or operating results.

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.

Recently, the U.S.

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

trade policies, including increased tariffs and changes in U.S.

participation in multilateral trade agreements, while other countries, China and Canada in particular, have undertaken retaliatory measures in response to such changes.

These changes could adversely impact the Company’s operations, costs and expenses applicable to revenues, and cash flows.

While the Company does not believe these changes will materially impact its results for 2025, there can be no guarantees that further changes to U.S.

trade policy and/or retaliatory actions by other countries will not occur.

Additionally, uncertainty about global trade relationships has and may continue to increase market volatility, currency exchange rate fluctuation, and economic instability, which may adversely impact the Company’s results of operations.

Furthermore, any resulting downturn or increase in geopolitical tensions may adversely impact consumers’ discretionary income and/or adversely affect consumer purchasing behavior, which could have a material adverse effect on box office receipts and on our results of operations and financial condition.

The extent and duration of increased tariffs, retaliatory actions, and the resulting impact of both on general economic conditions around the world and on the global filmed entertainment industry in particular, are uncertain and depend on numerous factors, such as the responses of and negotiations among the affected countries.

As such, we cannot predict the impact to our business from any future changes to the trading relationships between the U.S.

and other countries or the impact of new laws or regulations adopted by the U.S.

or other countries.

Furthermore, any adverse development in these areas could exacerbate risks discussed 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,” “Risk Factors –The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” and “Risk Factors –General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems” in Part I, Item 1A of the Company’s 2024 Form 10-K.

The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales, and future growth prospects.

A significant portion of the Company’s revenues and of the GBO earned by the Company’s exhibitor customers are generated outside the United States and Canada.

Approximately 62%, 58%, and 64% of the Company’s revenues were derived outside of the United States and Canada in 2025, 2024, and 2023, respectively.

As of March 31, 2026, 73% of IMAX Systems in backlog were scheduled to be installed in international markets.

The Company’s network spanned 91 different countries as of March 31, 2026, and the Company expects its international operations to continue to account for an increasingly significant portion of its future revenues.

There are a number of risks associated with operating in international markets that could negatively affect the Company’s operations, sales and future growth prospects.

These risks, among others, include:

Operational and Supply Chain Risks

• difficulties in obtaining competitively priced key commodities, raw materials, and component parts from various international sources that are needed to manufacture quality products on a timely basis;

• dependence on foreign distributors and their sales channels;

• reliance on local partners in foreign territories, including in connection with JRSAs;

• difficulties in staffing and managing foreign operations;

• inability to complete installations of IMAX Systems, including as a result of material disruptions or delays in the Company’s supply chains, or to collect full payment on installations thereof;

• public health concerns, including pandemics or epidemics, and regulations in response thereto, which could adversely affect the Company’s and its customers’ operations;

• harm to the IMAX brand from operating in countries with records of controversial government action, including human rights abuses.

Financial and Macroeconomic Risks

• fluctuations in the value of foreign currencies versus the U.S.

Dollar, potential currency devaluations, and imposition of foreign exchange controls in foreign jurisdictions;

• adverse changes in foreign government monetary and/or tax policies, and/or difficulties in repatriating cash from foreign jurisdictions (including with respect to China, where approval of the State Administration of Foreign Exchange is required);

• requirements to provide performance bonds and letters of credit to international customers to secure IMAX System component deliveries;

• less accurate and/or less reliable box office reporting;

• difficulties in establishing market-appropriate pricing;

• economic conditions in foreign markets, including inflation.

Geopolitical, Trade, and Regulatory Compliance Risks

• new and potentially changing tariffs, trade protection measures, import or export licensing requirements, trade embargoes, sanctions and export controls, and other trade barriers, including but not limited to planned, implemented or threatened tariffs and retaliatory responses thereto, or the residual impacts and uncertainty as a result of changes in tariff or trade policy;

• new restrictions on access to markets, both for IMAX Systems and content;

• unusual or burdensome foreign laws or regulatory requirements or unexpected changes to those laws or requirements, including censorship of content that may restrict what films or other content are exhibited across the Company’s network;

• local business practices that can present challenges to compliance with applicable anti-corruption and bribery laws;

• poor recognition of intellectual property rights;

• difficulties in enforcing contractual rights;

• war, conflict, geopolitical tensions and other political, economic and social instability, terrorist attacks and security concerns, such as the ongoing conflict between Russia and Ukraine, the war in Iran and other armed conflicts in the Middle East, and escalating tensions in the Taiwan Strait, all of which could result in adverse consequences for the Company’s interests in different regions of the world.

Global geopolitical tensions and actions that governments take in response and the resulting global and regional economic downturns have had and may in the future adversely impact the Company’s ability to operate in such regions.

For example, the ongoing conflict between Russia and Ukraine and responses thereto have had and may continue to have an adverse impact on the Company’s business and results of operations in affected regions, including the continued suspension of the Company’s operations across the Company’s 54 theaters in the region.

Three theaters in Israel and one theater in Lebanon have been impacted by closures or are operating in limited capacity due to the Iran war.

The other 31 of the Company’s 35 theaters in the Middle East region remain fully operational.

Furthermore, disruptions to key global shipping routes, including the Strait of Hormuz, have and may continue to adversely affect global supply chains by increasing transportation time and cost as well as increasing uncertainty in the availability of critical goods and services, which may in turn impact the Company’s operations.

Given the uncertainty as to the scope, intensity, duration and outcome of geopolitical conflicts, it is difficult to predict the full extent of the adverse impacts of geopolitical conflicts on the Company’s business and results of operations.

Additionally, given the global nature of the Company’s operations, any protracted conflict or the broader macroeconomic impact of geopolitical conflicts and sanctions imposed in response thereto, have had and could continue to have an adverse impact on the Company’s business, results of operations, financial condition, and future performance and may also magnify the impact of other risks described herein, including the risk of cybersecurity attacks, which may impact information technology systems unrelated to the conflict, or jeopardize critical infrastructure in jurisdictions where the Company operates.

While the Company has implemented policies, internal controls, and other measures reasonably designed to promote compliance with applicable laws and regulations related to doing business internationally, any violations of these laws and regulations, or even allegations of such a violation, could disrupt the Company’s operations and harm the Company’s business, financial condition and results of operations.

In addition, changes in United States or Canadian foreign policy can present additional risks or uncertainties as the Company continues to expand its international operations.

Opening and operating theaters in markets that have experienced geopolitical or sociopolitical unrest or controversy, including through partnerships with local entities, exposes the Company to the risks listed above, as well as additional risks of operating in a volatile region.

Such risks may negatively impact the Company’s business operations in such regions and may also harm the Company’s brand.

Moreover, a deterioration of the diplomatic relations between the United States or Canada and a particular country may impede the Company’s ability to conduct business in that country and have a negative impact on the Company’s financial condition and future growth prospects.

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 1A. Risk Factors