IMAX CORP 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, “IMAX” or the “Company”) for the three months ended March 31, 2026 and 2025. 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 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 Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws. 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. 35 Table of Contents 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 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; conditions, changes and developments in the commercial exhibition industry; 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 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; 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; other factors and risks outlined in the Company’s periodic filings with the United States Securities and Exchange Commission (the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this quarterly report are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. The forward-looking statements herein are made only as of the date hereof and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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. Reports may be obtained free of charge through the SEC’s website at www.sec.gov or the SEDAR+ website at www.sedarplus.ca and through the Company’s website at www.imax.com or by calling the Company’s Investor Relations Department at 212-821-0154. The Company announces material information to the public through a variety of means, including filings with the SEC and Canadian securities regulators, press releases, public conference calls, and its website at www.imax.com. The Company uses these channels to communicate with investors and the public about the Company, its products and services, and other matters. Therefore, investors are encouraged to review the information the Company makes public in these locations, as such information could be deemed to be material information. No information included on the Company’s website shall be deemed included or otherwise incorporated into this filing, except where expressly indicated. All references to the Company’s website are intended to be inactive textual references only. OVERVIEW IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, awe-inspiring immersive content experiences for which the IMAX ® brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a 36 Table of Contents result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films. The Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide; IMAX documentaries, both original and acquired (“IMAX Documentaries”); and IMAX events and experiences in emerging verticals, including music, gaming, and sports. The Company leverages its proprietary technology and engineering in its business, which principally consists of the digital remastering of films and other content into the IMAX format for distribution across the IMAX network (“IMAX Film Remastering”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history. The customers for IMAX Systems are principally exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, institutional locations, including museums and science centers, and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with licenses to use its trademarks and ongoing maintenance services for which there are annual payments by the exhibitors to IMAX. IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of 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. IMAX Systems provide the Company’s exhibitor customers with a combination of the following benefits: • the ability to exhibit content that has been enhanced through the IMAX Film Remastering process, which results in higher image and sound fidelity than conventional cinema experiences; • advanced, high-resolution projectors with specialized equipment and automated theater control systems, which generate significantly more contrast and brightness than conventional theater systems; • large screens and proprietary auditorium geometry, which result in a substantially larger field of view than conventional theater systems so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images; • advanced sound system components, which deliver more expansive sound imagery than conventional theater systems and pinpointed origination of sound to any specific spot in an auditorium equipped with an IMAX System; • specialized theater acoustics, which result in a four-fold reduction in background noise compared to conventional cinema experiences; • ongoing maintenance and extended warranty services to ensure a consistent image and sound quality presentation across the IMAX global network; and • a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX’s growing social media followership. 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, 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 . 37 Table of Contents 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. Mr. 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. Gelfond. (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 The Company has organized its operating segments into the following two reportable segments: (i) Content Solutions, which principally includes content enhancement and distribution services, and (ii) Technology Products and Services, which principally includes the sale, lease, and maintenance of IMAX Systems. The Company’s activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1). Content Solutions 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. Dollar. Film Remastering and Distribution IMAX Film Remastering is a proprietary technology that digitally remasters films and other content into IMAX formats for distribution across the IMAX network. In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the 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. IMAX Film Remastering is completed for the image of films released to the IMAX network, creating a unique IMAX version that is optimized for IMAX’s proprietary digital projection systems and format. In addition, the original soundtrack of a film to be exhibited across the IMAX locations is remastered into a unique IMAX digital audio format. IMAX sound systems use proprietary loudspeaker systems, designs and proprietary surround sound configurations to ensure every seat in an auditorium is an optimal listening position. 38 Table of Contents IMAX films also benefit from enhancements made by individual filmmakers exclusively for the IMAX release of the film. Collectively, the Company refers to these enhancements as “IMAX DNA.” Filmmakers and movie studios increasingly seek to infuse more IMAX DNA in theatrical releases to realize a filmmaker’s creative vision more fully, while generating interest and excitement among moviegoers. Such enhancements include shooting films with IMAX cameras to increase the audience’s immersion in the film and to take advantage of the unique dimensions of the IMAX screen by projecting the film in a larger aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen versus a conventional 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 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. 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 Japan, India, South Korea, and France. 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 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 March 31, 2026 2025 Hollywood film releases (1) 7 7 Local language film releases: Japan 5 3 China 3 6 India 2 5 South Korea 2 2 France 1 2 Vietnam 1 1 Indonesia 1 1 Thailand 1 — Taiwan 1 — Total local language film releases 17 20 Other content experiences 7 6 31 33 (1) For the three months ended March 31, 2026, the films released to the Company’s global network include four with IMAX DNA (2025 — two). 39 Table of Contents In addition to the 31 IMAX new films and other content experiences released on the Company’s global network during the three months ended March 31, 2026, the Company has announced the following 34 new films and other content experiences for release in the remainder of 2026: Title Studio Scheduled Release Date (1) IMAX DNA The Super Mario Galaxy Movie Universal Pictures April 2026 — Detective Conan: Fallen Angels of the Highway (2) Toho Cinemas April 2026 — Lee Cronin’s The Mummy Warner Bros. Pictures April 2026 — Michael Lionsgate April 2026 — Sakamoto Days (2) Toho Cinemas April 2026 — 2DIE4 (2) Abdala Brothers April 2026 — Whisper of the Heart 4K IMAX (2) Studio Ghibli April 2026 — Cold War 1994 (2) Ruyi Film May 2026 — F1 ® on Apple TV Live in IMAX:Miami Race Apple TV May 2026 — Mortal Kombat II Warner Bros. Pictures May 2026 Filmed for IMAX Top Gun 40 th Anniversary Paramount Pictures May 2026 — The Secret World of Arrietty 4K IMAX (2) Studio Ghibli May 2026 — The Mandalorian and Grogu Walt Disney Studios May 2026 Filmed for IMAX F1 ® on Apple TV Live in IMAX:Monaco Race Apple TV June 2026 — Disclosure Day Universal Pictures June 2026 — Toy Story 5 Walt Disney Studios June 2026 — Supergirl Warner Bros. Pictures June 2026 Filmed for IMAX Minions & Monsters Universal Pictures July 2026 — F1 ® on Apple TV Live in IMAX:Silverstone Race Apple TV July 2026 — Moana Walt Disney Pictures July 2026 — The Odyssey Universal Pictures July 2026 Filmed for IMAX The End of Oak Street Warner Bros. Pictures August 2026 Filmed for IMAX The Dog Stars Walt Disney Pictures August 2026 — F1 ® on Apple TV Live in IMAX:Monza Race Apple TV September 2026 — Resident Evil Sony Pictures September 2026 Filmed for IMAX Digger Warner Bros. Pictures October 2026 — Street Fighter (2) Paramount Pictures October 2026 Filmed for IMAX F1 ® on Apple TV Live in IMAX:Austin Race Apple TV October 2026 — Godzilla Minus Zero (2) Toho Cinemas November 2026 Filmed for IMAX The Great Beyond Warner Bros. Pictures November 2026 — Hunger Games: Sunrise on the Reaping Lionsgate November 2026 — Narnia Netflix November 2026 Filmed for IMAX Avengers: Doomsday (2) Walt Disney Studios December 2026 — Dune: Part Three Warner Bros. Pictures December 2026 Filmed for IMAX Ramayana (2) DNEG TBD Filmed For IMAX (1) The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events. (2) Denotes local language release. The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network in 2026. Other Content Solutions The Company distributes large-format documentary feature films through its global commercial network and institutional theaters. Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater global box office and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues. 40 Table of Contents 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 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 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 also provides IMAX film and digital cameras to content creators under the IMAX certified camera program. Technology Products and Services The Technology Products and Services segment earns revenue principally from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Products and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX Systems parts and 3D glasses. The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, and lease payments tied to the 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. The installation of IMAX Systems in theaters or multiplexes, which make up a large portion of the Company’s system backlog, depends primarily on the timing of the construction of those projects, which is not under the Company’s control. Sales and Sales-Type Lease Arrangements The Company provides IMAX Systems to exhibitors through sale arrangements or long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns initial fees and ongoing consideration, which can include fixed annual minimum payments and contingent fees in excess of the minimum payments, as well as maintenance and extended warranty fees (see “IMAX Maintenance” below). The initial fees vary depending on the system configuration and location of the IMAX System. Initial fees are paid to the Company in installments typically between the time of signing the arrangement and the time of system installation. Once an IMAX System is installed, the initial fees and the present value of future annual minimum payments, which are financing fees, are recognized as revenue. In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum 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. Finance income is recognized over the term of a financed sale or sales-type lease arrangement. 41 Table of Contents In sale arrangements, title to the IMAX System equipment generally transfers to the customer. However, in certain instances, the Company retains title or a security interest in the equipment until the customer has made all payments required by the agreement or until certain shipment events for the equipment have occurred. In a sales-type lease arrangement, title to the IMAX System equipment remains with the Company. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The revenue earned from customers under the Company’s IMAX System sale or sales-type lease agreements varies from quarter-to- quarter and year-to-year based on a number of factors, including the number and mix of IMAX System configurations sold or leased, the timing of installation of the IMAX Systems, the nature of the arrangement and other factors specific to individual contracts. Joint Revenue Sharing Arrangements The Company also provides IMAX Systems to exhibitors through joint revenue sharing arrangements “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, 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. The Company retains title to the IMAX System equipment components throughout the lease term, and the equipment is returned to the Company at the conclusion of the arrangement. Under certain other JRSAs, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System in an amount that is typically half of what the Company would receive from a typical sale transaction. As with a traditional JRSA, the customer also pays the Company a percentage of contingent box office receipts over the term of the arrangement, although this percentage is typically half that of a traditional JRSA. Under most JRSAs (both traditional and hybrid), the initial non-cancellable term is 10 years or longer and is renewable by the customer for one to two additional terms of between three to five years. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The contracts are non-cancellable by the customer unless the Company fails to perform its 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. These fees are reported within IMAX Maintenance, as discussed below. JRSAs have been an important factor in the expansion of the Company’s commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. As of 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 IMAX System arrangements also include a requirement for the Company to provide maintenance services over the life of the arrangement in exchange for an extended warranty and annual maintenance fee paid by the exhibitor. Under these arrangements, the Company provides preventative and emergency maintenance services to ensure that each presentation is up to IMAX quality standards. Annual maintenance fees are paid throughout the duration of the term of the system agreements. All Other Streaming and Consumer Technology IMAX’s Streaming and Consumer Technology (“SCT”) business offers a single unified program: IMAX Enhanced ® . This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver The IMAX Experience to users across streaming platforms and consumer devices. The new IMAX Enhanced program for partners includes three core elements: 42 Table of Contents 1. IMAX Enhanced Live: Real-time enhancement for sports, concerts, and events using SCT’s proprietary technology to measure, enhance, optimize, and validate premium color, contrast, and clarity at the speed of live. 2. IMAX Enhanced On-Demand: Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience. IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video. 3. Device Certification & Calibration: Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks. It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained faithfully and experienced as intended on consumer devices. As of 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. Other All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and merchandising revenue. IMAX NETWORK AND BACKLOG IMAX Network 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. March 31, 2026 March 31, 2025 Commercial Multiplex Commercial Destination Institutional Total Commercial Multiplex Commercial Destination Institutional Total United States 385 4 24 413 372 4 24 400 Canada 41 1 5 47 44 1 5 50 Greater China (1) 798 — 12 810 793 — 13 806 Asia (excluding Greater China) 204 1 2 207 186 1 2 189 Western Europe 154 3 7 164 136 4 8 148 Latin America (2) 64 1 6 71 62 1 7 70 Rest of the World 152 — 1 153 145 — 2 147 Total (3) 1,798 10 57 1,865 1,738 11 61 1,810 (1) Greater China includes China, Hong Kong, Taiwan, and Macau. (2) Latin America includes South America, Central America, and Mexico. (3) Period-to-period changes in the table above are reported net of the effect of permanently closed locations. (See “Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows,” and “Risk Factors – General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems” in Part I, Item 1A of the Company’s 2025 Form 10-K.) 43 Table of Contents 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 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. 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 II, Item 1A of this Form 10-Q. 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 Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 277 3 146 426 International: Greater China 395 67 336 798 Asia (excluding Greater China) 58 1 145 204 Western Europe 50 13 91 154 Latin America 5 — 59 64 Rest of the World 12 — 140 152 International Total 520 81 771 1,372 Worldwide Total (2)(3) 797 84 917 1,798 (1) Includes Sales and Sales-Type Lease deal types. (2) Period-to-period changes in the tables above are reported net of permanently closed systems. (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 Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 274 6 136 416 International: Greater China 385 101 307 793 Asia (excluding Greater China) 52 1 133 186 Western Europe 45 13 78 136 Latin America 4 — 58 62 Rest of the World 12 — 133 145 International Total 498 115 709 1,322 Worldwide Total (2) 772 121 845 1,738 (1) Includes Sales and Sales-Type Lease deal types. (2) Period-to-period changes in the tables above are reported net of permanently closed systems. 44 Table of Contents Backlog 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 Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 90 2 25 117 International: Greater China 85 59 74 218 Asia (excluding Greater China) 14 — 30 44 Western Europe 4 — 9 13 Latin America — — 6 6 Rest of the World 1 — 36 37 International Total 104 59 155 318 Worldwide Total (2)(3) 194 61 180 435 (1) Includes Sales and Sales-Type Lease deal types. (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 435 includes 301 new systems and 134 upgrades. March 31, 2025 IMAX System Backlog Traditional JRSA Hybrid JRSA Sales Arrangements (1) Total Domestic Total (United States & Canada) 122 2 11 135 International: Greater China 95 90 49 234 Asia (excluding Greater China) 20 2 39 61 Western Europe 12 — 23 35 Latin America 1 — 7 8 Rest of the World 2 — 41 43 International Total 130 92 159 381 Worldwide Total (2)(3) 252 94 170 516 (1) Includes Sales and Sales-Type Lease deal types. (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 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, 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. 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.) 45 Table of Contents Signings and Installations 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 March 31, 2026 2025 System Signings: Sales Arrangements (1) 21 19 Traditional JRSA (2) 2 76 Total IMAX System signings (3) 23 95 (1) Includes Sales and Sales-Type Lease deal types. (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 March 31, 2026 2025 System Installations (1) : Sales Arrangements (2) 8 13 Traditional JRSA 11 8 Total IMAX System installations (3) 19 21 (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. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System. (2) Includes Sales and Sales-Type Lease deal types. (3) Includes 11 IMAX System upgrades for the three months ended March 31, 2026 (2025 ― seven upgrades). RESULTS OF OPERATIONS 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 three months ended March 31, 2026 and 2025: 46 Table of Contents Three Months Ended March 31, 2026 2025 (In thousands of U.S. Dollars, except per diluted share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 4,226 $ 0.07 $ 2,327 $ 0.04 Adjusted net income attributable to common shareholders* $ 9,568 $ 0.17 $ 7,178 $ 0.13 *Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. Revenues and Gross Margin For the 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 % (In thousands of U.S. Dollars) 2026 2025 2026 2025 2026 2025 Content Solutions $ 31,370 $ 34,249 $ 18,320 $ 23,554 58 % 69 % Technology Products and Services 48,338 50,593 26,882 29,086 56 % 57 % Sub-total for reportable segments 79,708 84,842 45,202 52,640 57 % 62 % All Other (1) 1,671 1,825 609 536 36 % 29 % Total $ 81,379 $ 86,667 $ 45,811 $ 53,176 56 % 61 % (1) All Other includes the results from Streaming and Consumer Technology and other ancillary activities. Content Solutions 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: Avatar: 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 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. 47 Table of Contents 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, for which revenue is recognized over the lease term, during the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 (In thousands of U.S. Dollars, except number of systems) Number of Systems Revenue Number of Systems Revenue New IMAX Systems 6 $ 4,730 12 $ 9,124 Upgraded IMAX Systems 2 2,551 1 1,460 Total 8 $ 7,281 13 $ 10,584 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 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. All Other 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 three months ended March 31, 2026 and 2025: Three Months Ended March 31, Variance (In thousands of U.S. Dollars) 2026 2025 $ % Total Selling, general and administrative expenses $ 32,488 $ 33,462 $ (974) (3 %) Less: Share-based compensation (1) (5,909) (4,720) (1,189) (25 %) Total selling, general and administrative expenses, excluding share-based compensation (2) $ 26,579 $ 28,742 $ (2,163) (8 %) (1) A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to “Capital Stock and Reserves — Share-Based Compensation” in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.) (2) See “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. 48 Table of Contents 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 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. 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 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. Income Taxes 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 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. 49 Table of Contents CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 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 three months ended March 31, 2026 and 2025. Three Months Ended (In thousands of U.S. Dollars) 2026 2025 Net cash provided by (used in) Operating activities $ 4,029 $ 6,951 Investing activities (6,927) (14,624) Financing activities (2,762) 4,234 Effect of exchange rate changes on cash 487 (84) Net change in cash $ (5,173) $ (3,523) 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 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 March 31, 2026, the Company’s principal sources of liquidity included: (i) its balances of cash and cash equivalents of $146.0 million; (ii) the anticipated collection of trade accounts receivable, which includes amounts owed under JRSAs and Film Remastering and distribution agreements with movie studios; (iii) the anticipated collection of financing and variable consideration receivables due in the next 12 months under sale and sales-type lease arrangements for systems currently in operation; and (iv) installment payments expected in the next 12 months under sale and sales-type lease arrangements in backlog. Under the terms of the Company’s typical sale and sales-type lease agreements, the Company receives substantial cash payments before it completes the performance of its contractual obligations. 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 $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 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 50 Table of Contents associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada. These taxes will become payable upon the repatriation of any such earnings. The Company forecasts its future cash flow and short-term liquidity requirements on an ongoing basis. These forecasts are based on estimates and may be materially impacted by factors that are outside of the Company’s control (including the factors described in “Risk Factors” in Part I, Item 1A of the Company’s 2025 Form 10-K as supplemented by “Risk Factors” in Part II, Item 1A of this Form 10-Q). As a result, there is no guarantee that these forecasts will come to fruition and that the Company will be able to fund its operations through cash flows from operations. In particular, the Company’s operating cash flows and cash balances will be adversely impacted if management’s projections of future signings and installations of IMAX Systems and box office performance of IMAX content are not realized. The Company also has certain significant contractual obligations and commitments that have been disclosed in “Contractual Obligations” in Part II, Item 7 of the Company’s 2025 Form 10-K. 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. OFF-BALANCE SHEET ARRANGEMENTS There are currently no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company’s financial condition. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations, and other factors that are believed to be reasonable as of the date of the Company’s Condensed Consolidated Financial Statements. Actual results may ultimately differ from the Company’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. For more information on the Company’s critical accounting estimates refer to the section entitled “Critical Accounting Estimates” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2025 Form 10-K. RECENTLY ISSUED ACCOUNTING STANDARDS Refer to Note 2 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a discussion of recently issued accounting standards and their impact on the Company’s Condensed Consolidated Financial Statements. NON-GAAP FINANCIAL MEASURES GAAP refers to generally accepted accounting principles in the United States of America. In this report, the Company presents financial measures in accordance with GAAP and also on a non-GAAP basis under the U.S. Securities and Exchange Commission regulations. Specifically, the Company presents the following non-GAAP financial measures as supplemental measures of its performance: • Adjusted net income or loss attributable to common shareholders; • Adjusted net income or loss attributable to common shareholders per basic and diluted share; • EBITDA; • Adjusted EBITDA per Credit Facility; and • Adjusted 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 51 Table of Contents 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. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. Reconciliations of net income attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share are presented in the tables below. Three Months Ended March 31, 2026 2025 (In thousands of U.S. Dollars, except per diluted share amounts) Net Income Per Diluted Share Net Income Per Diluted Share Net income attributable to common shareholders $ 4,226 $ 0.07 $ 2,327 $ 0.04 Adjustments (1) : Share-based compensation 5,807 0.11 5,212 0.10 Unrealized investment gains (36) — (32) — Restructuring charges and other impairments — — 57 — Tax impact on items listed above (429) (0.01) (386) (0.01) Adjusted net income (1) $ 9,568 $ 0.17 $ 7,178 $ 0.13 Weighted average shares outstanding — basic 54,125 53,145 Weighted average shares outstanding — diluted 56,392 54,969 (1) Reflects amounts attributable to common shareholders. In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results. EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. 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 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: 52 Table of Contents (In thousands of U.S. Dollars) Three Months Ended March 31, 2026 Net income $ 6,071 Add (subtract): Income tax expense 2,421 Interest expense, net of interest income 900 Depreciation and amortization, including film asset amortization 15,236 Amortization of deferred financing costs (1) 528 EBITDA 25,156 Share-based and other non-cash compensation 5,792 Unrealized investment gains (36) Write-downs, including asset impairments and credit loss expense (403) Total Adjusted EBITDA $ 30,509 Less: Non-controlling interest (3,700) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 26,809 (1) The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations. (In thousands of U.S. Dollars) Twelve Months Ended March 31, 2026 Net income $ 43,447 Add (subtract): Income tax expense 12,903 Interest expense, net of interest income 2,708 Depreciation and amortization, including film asset amortization 62,769 Amortization of deferred financing costs (1) 2,020 EBITDA 123,847 Share-based and other non-cash compensation 27,342 Unrealized investment losses 863 Restructuring charges and other impairments 2,421 Write-downs, including goodwill, asset impairments and credit loss expense 8,742 Induced conversion expense on settlement of convertible notes 15,264 Total Adjusted EBITDA $ 178,479 Less: Non-controlling interest (13,967) Adjusted EBITDA per Credit Facility - attributable to common shareholders $ 164,512 (1) The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations. The Company also adjusts SG&A Expenses to exclude a portion of share-based compensation and related payroll taxes. Management uses non-GAAP and other financial measures such as this, internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. IMAX believes that this non-GAAP measure provides useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management and its financial and operational decision making. A reconciliation of Selling, General and Administrative Expenses, the most directly comparable GAAP measure presented in the Condensed Consolidated Statement of Operations in Part I, Item 1, to Adjusted Selling, General and Administrative Expenses is presented in the table below. 53 Table of Contents Three Months Ended March 31, (In thousands of U.S. Dollars) 2026 2025 Total Selling, general and administrative expenses $ 32,488 $ 33,462 Less: Share-based compensation (5,909) (4,720) Total Adjusted Selling, general and administrative expenses $ 26,579 $ 28,742 The Company cautions users of its financial statements that these non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered in isolation, or as a substitute for, or superior to, the comparable GAAP amounts.