What changed in this filing

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Item 1. Financial Statements

2026-07-23 compared with 2026-04-30 · 378 added, 189 removed, 965 unchanged (37% of the section changed)

1 unchanged sentence

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

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

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

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

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

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

Condensed Consolidated Balance Sheets as of June 30 , 2026 and December 31, 2025

Condensed Consolidated Statements of Operations for the three and six months ended June 30 , 2026 and 2025

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30 , 2026 and 2025

Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30 , 2026 and 2025

Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30 , 2026 and 2025

Notes to Condensed Consolidated Financial Statements

3 unchanged sentences

Dollars, except share amounts)

March 31, December 31,

June 30, December 31,

Cash and cash equivalents $ 159,917 $ 151,168

44 unchanged sentences

Dollars, except per share amounts)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Technology sales

6 unchanged sentences

3,028 2,872 5,785 5,951

102,842 91,684 184,221 178,351

Costs and expenses applicable to revenues

Technology sales

9,606 9,352 15,162 16,575

Image enhancement and maintenance services

3 unchanged sentences

39,946 38,082 75,514 71,573

62,896 53,602 108,707 106,778

Selling, general and administrative expenses

1 unchanged sentence

Research and development

1,655 1,542 3,459 2,860

Amortization of intangible assets

Credit loss reversal, net

2,164 1,809 4,192 3,540

Credit loss expense (reversal), net

1,481 ( 183 ) 1,021 ( 309 )

Restructuring charges and other impairments

2,294 786 2,294 843

Income from operations

20,774 14,346 30,725 31,080

Realized and unrealized investment gains

2 unchanged sentences

Interest income

651 1,114 1,119 1,654

Interest expense

1 unchanged sentence

Income before taxes

19,415 13,433 27,907 28,868

Income tax expense

( 3,507 ) ( 1,198 ) ( 5,928 ) ( 8,483 )

15,908 12,235 21,979 20,385

Net income attributable to non-controlling interests

12 unchanged sentences

(In thousands of U.S.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

$ 15,908 $ 12,235 $ 21,979 $ 20,385

Other comprehensive income before tax

Unrealized net loss from cash flow hedging instruments

Unrealized net (loss) gain from cash flow hedging instruments

( 804 ) 2,520 ( 1,435 ) 1,805

Realized net (gain) loss from cash flow hedging instruments

Realized net loss (gain) from cash flow hedging instruments

( 106 ) 292 ( 448 ) 1,627

Foreign currency translation adjustments

3,758 600 7,643 1,021

Amortization of defined benefit and postretirement benefit plans net gain

1 unchanged sentence

Total other comprehensive income before tax

2,681 3,271 5,426 4,107

Income tax recovery related to other comprehensive income

— ( 699 ) — ( 808 )

Other comprehensive income, net of tax

2,681 2,572 5,426 3,299

Comprehensive income

18,589 14,807 27,405 23,684

Comprehensive income attributable to non-controlling interests

6 unchanged sentences

(In thousands of U.S.

Three Months Ended

Six Months Ended

Operating Activities

4 unchanged sentences

Amortization of deferred financing costs

Credit loss reversal, net

Credit loss expense (reversal), net

1,021 ( 309 )

2 unchanged sentences

Share-based and other non-cash compensation

Unrealized foreign currency exchange loss

13,174 12,767

Unrealized foreign currency exchange loss (gain)

Realized and unrealized investment gain

11 unchanged sentences

Net cash provided by operating activities

36,014 30,181

Investing Activities

12 unchanged sentences

( 34,000 ) ( 18,000 )

Redemption of capped calls related to convertible notes

Settlement of convertible notes

Debt issuance costs related to convertible notes

2 unchanged sentences

( 326 ) ( 372 )

Repurchase of common shares

Repurchase of common shares - IMAX China

Taxes withheld and paid on employee stock awards vested

4 unchanged sentences

Effects of exchange rate changes on cash

Decrease in cash and cash equivalents during period

( 5,173 ) ( 3,523 )

Increase in cash and cash equivalents during period

Cash and cash equivalents, beginning of period

7 unchanged sentences

Dollars, except share data)

Three Months Ended March 31, 2026

Three and Six Months Ended June 30, 2026

Accumulated Other Comprehensive Loss Total Shareholders’ Equity

16 unchanged sentences

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

Three Months Ended March 31, 2025

Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Capital Stock

Statutory Surplus Reserve

Accumulated Deficit

Non-controlling Interests

Balance as of December 31, 2024

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

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

4 unchanged sentences

— — 6,604 — — — 247 $ 6,851

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

Settlement of capped calls related to 2026 convertible notes — — 96 — — — — $ 96

Repurchased and retirement of common shares

( 404,866 ) ( 3,259 ) — — ( 10,478 ) — — ( 13,737 )

— — — — 15,402 — 482 $ 15,884

Other comprehensive income, net of tax

— — — — — 1,612 1,069 $ 2,681

Balance as of June 30, 2026

54,842,114 $ 441,338 $ 148,201 $ 4,219 $ ( 230,817 ) $ ( 7,052 ) $ 93,828 $ 449,717

Three and Six Months Ended June 30, 2025

Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Capital Stock Statutory Surplus Reserve Accumulated Deficit Non-controlling Interests

Shares Amount Other Equity

Balance as of December 31, 2024 52,946,200 $ 401,420 $ 185,268 $ 4,051 $ ( 274,675 ) $ ( 16,598 ) $ 78,069 $ 377,535

Restricted share units and performance stock units vested, net of shares withheld for employee tax obligations 751,817 11,380 ( 20,942 ) — — — — $ ( 9,562 )

Employee stock options exercised, net of shares withheld for employee tax obligations 44,031 1,241 ( 293 ) — — — — $ 948

Amortization of share-based payment expense - restricted share units and performance stock units — — 5,718 — — — 93 $ 5,811

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

Net income — — — — 2,327 — 5,827 $ 8,154

Other comprehensive income, net of tax — — — — — 606 121 $ 727

Balance as of March 31, 2025 53,742,048 $ 414,041 $ 169,751 $ 4,106 $ ( 272,403 ) $ ( 15,992 ) $ 84,110 $ 383,613

Restricted share units and performance stock units vested, net of shares withheld for employee tax obligations 36,016 970 ( 1,574 ) — — — ( 144 ) $ ( 748 )

Employee stock options exercised, net of shares withheld for employee tax obligations 4,456 131 ( 31 ) — — — — $ 100

Amortization of share-based payment expense - restricted share units and performance stock units — — 7,840 — — — 239 $ 8,079

Change in ownership interest related to IMAX China — — ( 85 ) — — — ( 1,369 ) $ ( 1,454 )

Change in statutory surplus reserve, IMAX China — — — 113 ( 113 ) — — $ —

Net income — — — — 11,255 — 965 $ 12,220

Other comprehensive income, net of tax

— — — — 2,403 169 $ 2,572

Balance as of June 30, 2025

53,782,520 $ 415,142 $ 175,901 $ 4,219 $ ( 261,261 ) $ ( 13,589 ) $ 83,970 $ 404,382

(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

23 unchanged sentences

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

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, total assets and liabilities of the Company’s consolidated VIEs were as follows:

June 30, December 31,

(In thousands of U.S.

15 unchanged sentences

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

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

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

(x) the discount rates used to determine the present value of financing receivables, variable consideration and lease liabilities, as well as to determine the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill;

(xi) pension plan assumptions;

9 unchanged sentences

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

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

The Company adopted ASU 2025-05 as of January 1, 2026.

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

3 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

ASU 2025-09 is effective

for fiscal periods beginning after December 15, 2026, and interim periods thereafter.

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

9 unchanged sentences

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

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

ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended June 30, 2026.

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

20 unchanged sentences

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

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

Three Months Ended

March 31, 2026

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended

June 30, 2026 June 30, 2026

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

9 unchanged sentences

$ 12,471 $ 1,301 $ 437 $ 14,209 $ 12,471 $ 1,301 $ 437 $ 14,209

Three Months Ended

March 31, 2025

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2025

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

1 unchanged sentence

$ 11,483 $ 1,236 $ 455 $ 13,174 $ 11,678 $ 1,017 $ 583 $ 13,278

Current period (reversal) provision, net

Current period provision (reversal), net

83 115 ( 26 ) 172 ( 33 ) 522 ( 154 ) 335

5 unchanged sentences

$ 11,568 $ 1,277 $ 429 $ 13,274 $ 11,568 $ 1,277 $ 429 $ 13,274

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

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

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

For the three and six months ended June 30, 2026, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.3 million, respectively (2025 — increased by $ 0.1 million and decreased by less than $ 0.1 million, respectively).

Financing Receivables

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

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, financing receivables consisted of the following:

June 30, December 31,

(In thousands of U.S.

29 unchanged sentences

$ 87,331 $ 90,799

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

June 30, December 31,

(In thousands of U.S.

6 unchanged sentences

8.40 % 8.68 %

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

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of June 30, 2026 and December 31, 2025.

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

1 unchanged sentence

By Origination Year

As of March 31, 2026

As of June 30, 2026

2026 2025 2024 2023 2022 Prior Total

25 unchanged sentences

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

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

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of June 30, 2026 and December 31, 2025.

1 unchanged sentence

By Origination Year

As of March 31, 2026

As of June 30, 2026

2026 2025 2024 2023 2022 Prior Total

25 unchanged sentences

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

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

As of March 31, 2026

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

(In thousands of U.S.

15 unchanged sentences

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

The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of March 31, 2026 and December 31, 2025.

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

As of March 31, 2026

As of June 30, 2026

(In thousands of U.S.

15 unchanged sentences

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

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

As of March 31, 2026

The following table provides information about the Company’s net investment in leases and financed sales receivables that were on nonaccrual status as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

As of December 31, 2025

7 unchanged sentences

Total $ 23,418 $ ( 10,025 ) $ 13,393 $ 24,868 $ ( 9,644 ) $ 15,224

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

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

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

Three Months Ended

March 31, 2026

For the three and six months ended June 30, 2026 and 2025, the Company did not recognize Finance Income related to the net investment in leases on nonaccrual status.

For the three and six months ended June 30, 2026, the Company recognized $ 0.1 million, respectively (2025 — less than $ 0.1 million, respectively) in Finance Income related to the financed sales receivables on nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sales receivables for the three and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended

June 30, 2026 June 30, 2026

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

1 unchanged sentence

$ 25 $ 10,095 $ 458 $ 10,140

Current period reversal, net

Current period (reversal) provision, net

( 1 ) 597 ( 435 ) 522

2 unchanged sentences

$ 24 $ 10,725 $ 24 $ 10,725

Three Months Ended

March 31, 2025

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2025

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

1 unchanged sentence

$ 667 $ 9,957 $ 664 $ 10,161

Current period provision (reversal), net

Current period reversal, net

( 213 ) ( 147 ) ( 210 ) ( 346 )

Foreign exchange

1 unchanged sentence

$ 454 $ 9,819 $ 454 $ 9,819

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

For the three and six months ended June 30, 2026, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by less than $ 0.1 million and $ 0.4 million, respectively, and net financed sales receivables increased by $ 0.6 million, respectively.

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

Variable Consideration Receivables

2 unchanged sentences

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

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

Three Months Ended

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

(In thousands of U.S.

Beginning balance

Current period reversal, net

$ 6 $ 107 $ 20 $ 116

Current period provision (reversal), net

— 13 ( 14 ) 4

Ending balance

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

$ 6 $ 120 $ 6 $ 120

For the three and six months ended June 30, 2026, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables had no change and decreased by less than $ 0.1 million, respectively (2025 — increased by less than $ 0.1 million, respectively).

Lease Arrangements

18 unchanged sentences

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

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

(In thousands of U.S.

2026 (nine months remaining) $ 2,721

2026 (six months remaining) $ 1,844

Thereafter 15,688

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, Inventories consisted of the following:

June 30, December 31,

(In thousands of U.S.

4 unchanged sentences

Total $ 39,245 $ 32,505

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

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

As of June 30, 2026, Inventories included balances of $ 1.6 million (December 31, 2025 — $ 1.0 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three and six months ended June 30, 2026, the Company recorded write-downs of less than $ 0.1 million and $ 0.1 million, respectively (2025 — write-downs of $ 0.1 million and $ 0.2 million, respectively) in Costs and Expenses Applicable to Revenues ― Technology Sales.

Revolving Credit Facility Borrowings, Net

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, Revolving Credit Facility Borrowings, Net included the following:

June 30, December 31,

(In thousands of U.S.

10 unchanged sentences

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

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

The Company was in compliance with this requirement as of June 30, 2026 as the Senior Secured Net Leverage Ratio was 0.00 :1.00.

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

1 unchanged sentence

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

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

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

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

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

As of June 30, 2026, borrowings under the Credit Facility were $ 41.0 million (December 31, 2025 — $ 37.0 million) and bore interest at Term SOFR (as defined in the Credit Agreement), plus a margin of 1.50 % per annum (December 31, 2025 — 1.50 %) based on the Company’s total leverage ratio.

The effective interest rates for the three and six months ended June 30, 2026 were 5.14 % and 5.16 %, respectively (2025 — 6.17 %, respectively).

As of June 30, 2026 and December 31, 2025, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.

As of June 30, 2026, the amount available for future borrowings under the Credit Facility was $ 334.0 million (December 31, 2025 — $ 338.0 million).

Foreign Exchange Facility

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

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

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

As of June 30, 2026, the net unrealized loss on the Company’s outstanding foreign currency forward contracts was $ 0.9 million, representing the amount by which the fair value of these forward contracts exceeded their notional value (December 31, 2025 — net unrealized gain of $ 1.0 million).

As of June 30, 2026, the notional value of the Company’s outstanding foreign currency forward contracts was $ 46.3 million (December 31, 2025 — $ 48.4 million).

Bank of China Facility

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

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

As of June 30, 2026, and December 31, 2025, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K).

As of June 30, 2026, there were no outstanding letters of guarantee.

As of June 30, 2026, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 27.9 million) and the amount available for letters of guarantee was RMB 10.0 million ($ 1.5 million).

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

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

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

The effective interest rates for the three and six months ended June 30, 2026 was 0 % (2025 — 0 %).

There were no amounts drawn under the Bank of China Facility for the three and six months ended June 30, 2026.

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

HSBC China Facility

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

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

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

As of June 30, 2026 and December 31, 2025, no borrowings were outstanding under the HSBC China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K).

As of June 30, 2026, and December 31, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 29.4 million).

The effective interest rate for the three and six months ended June 30, 2026 was 0 % (2025 — 0 %).

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

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

The Company did not have any letters of credit or advance payment guarantees outstanding as of June 30, 2026 and December 31, 2025 under the NBC Facility.

Convertible Notes and Other Borrowings, Net

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

March 31, December 31,

As of June 30, 2026 and December 31, 2025, Convertible Notes and Other Borrowings, Net included the following:

June 30, December 31,

(In thousands of U.S.

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

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

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

7 unchanged sentences

Federal Economic Development Loan

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

As of June 30, 2026, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2025 Form 10-K) had a carrying value of $ 0.6 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

Commitments, Contingencies and Guarantees

10 unchanged sentences

The Company expenses legal costs relating to its lawsuits, claims, and proceedings as incurred.

In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company.

breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company.

In June 2004, the Company commenced a related arbitration before the ICC against EML’s affiliate, E-City Entertainment (I) PVT Limited (“E-City”).

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

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

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

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

2 unchanged sentences

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

Product Warranties

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was less than $ 0.1 million as of June 30, 2026 and $ nil as of December 31, 2025.

Director and Officer Indemnifications

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

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

No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, with respect to this indemnity.

Other Indemnification Agreements

12 unchanged sentences

Selling Expenses

The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Three Months Ended June 30,

(In thousands of U.S.

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

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

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

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

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

Six Months Ended June 30,

(In thousands of U.S.

Commissions Marketing

and Other Sales

Technology sales (1)

$ 559 $ 11 $ 398 $ 127

Image enhancement and maintenance services (2)

— 10,058 — 5,850

Technology rentals (3)

311 1,254 257 1,000

Total $ 870 $ 11,323 $ 655 $ 6,977

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

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

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

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

Foreign Exchange

Included in Selling, General and Administrative Expenses for the three and six months ended June 30, 2026 was a foreign currency net gain of $ 0.4 million and loss of $ 0.2 million, respectively (2025 — net gain of $ 0.2 million and loss of $ 0.2 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.

See Note 15 for additional information.

Government Assistance

During the three and six months ended June 30, 2025, the Company recognized $ 2.5 million as a reduction to Selling, General and Administrative Expenses, and a $ 1.3 million reduction to Costs and Expenses Applicable to Revenues for benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic.

No such assistance was received in 2026.

Collaborative Arrangements

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

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

For the three and six months ended June 30, 2026, such revenues totaled $ 19.7 million and $ 36.2 million, respectively (2025 — $ 18.7 million and $ 37.9 million, respectively).

IMAX Film Remastering and Distribution

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

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

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

For the three and six months ended June 30, 2026, such revenues totaled $ 32.5 million and $ 61.8 million, respectively (2025 — $ 28.7 million and $ 60.4 million, respectively).

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

Co-Produced Film Arrangements

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

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

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

As of June 30, 2026, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million , and four other co-produced film arrangements, the terms of which are similar.

For the three and six months ended June 30, 2026, expenses of $ 0.2 million and $ 0.2 million, respectively (2025 — $ 0.1 million and $ 0.2 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

Condensed Consolidated Statements of Cash Flows – Supplemental Information

Changes in other operating assets and liabilities

Three Months Ended

Six Months Ended

(In thousands of U.S.

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Prepaid expenses

( 1,783 ) ( 917 )

Variable consideration receivables

( 6,044 ) ( 683 )

Other assets, excluding lease incentives provided to exhibitor customers

(Decrease) increase in:

Accounts payable

( 2,387 ) 3,298

Increase (decrease) in:

Accounts payable

Accrued and other liabilities

2 unchanged sentences

Depreciation and amortization

Three Months Ended

Six Months Ended

(In thousands of U.S.

2 unchanged sentences

Equipment supporting JRSAs

11,948 11,378

Other property, plant and equipment

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Total $ 30,911 $ 30,809

Three Months Ended

Write-downs, including asset impairments

Six Months Ended

(In thousands of U.S.

3 unchanged sentences

Other property, plant and equipment

Other intangible assets

Film assets (1)

$ 2,299 $ 1,047

(1) For the six months ended June 30, 2026, the Company incurred a $ 2.0 million (2025 ― $ 0.1 million) partial impairment on a documentary film asset.

(Refer to Note 17 ― Restructuring Charges and Other Impairments for additional information).

Significant non-cash investing activities

Three Months Ended

Six Months Ended

(In thousands of U.S.

Net increase in accruals related to:

Net increase (decrease) in accruals related to:

Investment in equipment supporting JRSAs

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$ 1,044 $ ( 125 )

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

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

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

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

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

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

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

For the three months ended June 30, 2026, the Company recorded an income tax expense of $ 3.5 million (2025 — $ 1.2 million).

The Company’s effective tax rate of 18.1 % for the three months ended June 30, 2026 reflects the geographic allocation of income earned in taxing jurisdictions, a decrease in the valuation allowance and tax reserves, partially offset by withholding taxes.

The Company’s effective tax rate of 8.9 % for the three months ended June 30, 2025 reflects the geographic allocation of income earned in taxing jurisdictions and a decrease in the valuation allowance.

For the six months ended June 30, 2026, the Company recorded an income tax expense of $ 5.9 million (2025 — $ 8.5 million).

The Company’s effective tax rate of 21.2 % for the six months ended June 30, 2026, reflects the geographic allocation of income earned in taxing jurisdictions, tax benefit from share-based compensation, tax rate differences in foreign jurisdictions, and reversals of tax reserves, partially offset by an increase in the valuation allowance and withholding taxes.

The Company’s effective tax rate of 29.4 % for the six months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions, tax rate differences in foreign jurisdictions which was offset by an increase in the valuation allowance, tax return adjustments and withholding taxes.

As of June 30, 2026, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 12.5 million (December 31, 2025 — $ 12.6 million).

Management evaluates the realizability of deferred tax assets on a quarterly basis by considering all available positive and negative evidence, including recent operating results, forecasts of future taxable income, and other relevant factors specific to our industry such as the success of new film releases.

Based on the Company’s recent operating results in Canada and its expectation of continued profitability, management believes there is a reasonable possibility that sufficient positive evidence may become available within the next twelve months to support the release of some or all of the valuation allowance recorded against its Canadian deferred tax assets.

However, as of June 30, 2026, management has concluded that the available positive evidence is not yet sufficient to overcome the remaining negative evidence and support realization of those deferred tax assets.

Any such release would result in a material income tax benefit in the period the conclusion is reached.

At December 31, 2025, the amount of the Canadian valuation allowance was $ 55.5 million.

The timing and amount of a valuation allowance release will depend on the Company’s ability to generate sufficient taxable income in Canada, macroeconomic conditions, and other factors affecting management’s assessment.

As of June 30, 2026, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2025 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

As disclosed in Note 2 — Summary of Significant Accounting Policies of the 2025 Form 10-K, the Company is subject to ongoing tax audits.

Subsequent to June 30, 2026, the Company received a proposal letter from the Canada Revenue Agency related to an examination of international matters in prior taxation years.

Any potential reassessment encompasses an ultimate resolution involving multiple tax jurisdictions, which may result in offsetting tax differences from what was originally recognized in its financial statements.

The Company continues to believe that it has adequately accounted for all uncertain tax positions, including this pending notice of reassessment.

Capital Stock and Reserves

Share-Based Compensation

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

Three Months Ended

For the three and six months ended June 30, 2026, share-based compensation expense totaled $ 7.3 million and $ 13.0 million, respectively (2025 — $ 7.4 million and $ 12.6 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2026 2025 2026 2025

Costs and expenses applicable to revenues

$ 292 $ 305 $ 591 $ 596

Selling, general and administrative expenses

6,881 6,862 12,133 11,582

Research and development

142 190 316 384

Total $ 7,315 $ 7,357 $ 13,040 $ 12,562

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2026 2025 2026 2025

Restricted Share Units

1 unchanged sentence

Performance Stock Units

2,003 1,969 4,338 3,901

IMAX China Long Term Incentive Plan Restricted Share Units

874 734 1,208 1,047

IMAX China Long Term Incentive Plan Performance Stock Units

230 135 397 228

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

$ 7,315 $ 7,357 $ 13,040 $ 12,562

For the three and six months ended June 30, 2026, the Company’s share-based compensation expense included restricted share units to non-employees of $ 1.7 million for each such period, of which $ 1.7 million granted during the six month period vested immediately (2025 — $ 1.7 million for each such period).

Stock Option Summary

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

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the six months ended June 30, 2026 and 2025:

Number of Shares Weighted Average Exercise

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IMAX LTIP Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the three months ended March 31, 2026 and 2025:

Number of Shares Weighted Average Grant Date

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

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

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

The expense recognized in the six months ended June 30, 2026 and 2025 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the six months ended June 30, 2026 and 2025:

Number of Awards Weighted Average Grant Date

10 unchanged sentences

1,009,963 1,161,050 26.03 20.12

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

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

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

(1) For the six months ended June 30, 2026, the balance of shares granted includes 199,473 (2025 - 159,376 ) additional shares, at a weighted average grant date fair value per share of $ 16.98 (2025 - $ 19.18 ), as PSUs granted in 2023 (2025 - granted in 2022) with Adjusted EBITDA targets vested at 175 % (2025 - 175 %) on account of full achievement of the targets.

(2) For the six months ended June 30, 2026, the balance of shares granted includes 46,510 (2025 - 17,375 ) additional shares, at a weighted average grant date fair value per share of $ 19.73 (2025 - 22.72 ), as PSUs granted in 2023 (2025 - granted in 2022) with TSR targets vested at 150 % on account of full achievement of the targets (2025 - 123.5 % based on actual performance versus the targets).

As of June 30, 2026, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,771,830 , assuming full achievement of the Adjusted EBITDA and TSR targets.

Issuer Purchases of Equity Securities

On June 12, 2017, the Company announced that its Board of Directors approved a $ 200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $ 500.0 million under the current share repurchase program.

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

As of June 30, 2026, the Company had $ 237.0 million available under the program.

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

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

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

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

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

During the three and six months ended June 30, 2026, the Company repurchased 404,866 common shares at an average price of $ 33.91 per share, for a total of $ 13.7 million, excluding commission.

During the three and six months ended June 30, 2025, the Company did not have any repurchases of common shares.

During the six months ended June 30, 2026 and 2025, there were no shares purchased in the administration of employee share-based plans.

As of June 30, 2026, the IMAX LTIP trustee did not hold any shares.

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

5 unchanged sentences

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

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

During the three and six months ended June 30, 2026, IMAX China did not repurchase any common shares.

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

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

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

Basic and Diluted Weighted Average Shares Outstanding

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands) 2026 2025 2026 2025

5 unchanged sentences

Weighted average effect of potential common shares, if dilutive

1,618 1,410 1,938 1,616

Weighted average number of shares outstanding - diluted

56,569 55,161 56,475 55,064

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

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

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

For the three and six months ended June 30, 2026, the calculation of diluted weighted average shares outstanding excludes 72,493 shares, respectively (2025 — 929,825 and 968,984 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including:

(i) nil RSUs (2025 — nil RSUs), (ii) 72,493 PSUs (2025 — 86,784 and 125,943 PSUs, respectively) and (iii) nil stock options (2025 — 843,041 stock options), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three and six months ended June 30, 2026 and 2025 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

Statutory Surplus Reserve

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Disaggregated Information About Revenue

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

Three Months Ended March 31, 2026

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, 2026

(In thousands of U.S.

21 unchanged sentences

Total $ 26,654 $ 53,160 $ 20,000 $ 3,028 $ 102,842

Three Months Ended March 31, 2025

Six Months Ended June 30, 2026

(In thousands of U.S.

21 unchanged sentences

Total $ 40,068 $ 101,744 $ 36,624 $ 5,785 $ 184,221

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

Three Months Ended June 30, 2025

(In thousands of U.S.

Dollars) Technology Sales

Image Enhancement and Maintenance Services

Technology Rentals

Finance Income

Content Solutions Segment

Film Remastering and Distribution

$ — $ 31,650 $ — $ — $ 31,650

Other Content Solutions

— 3,824 583 — 4,407

— 67,631 583 — 68,214

Technology Products and Services Segment

30,720 — — — 30,720

System Rentals

— — 37,844 — 37,844

Maintenance — 31,717 — — 31,717

Finance Income

— — — 5,951 5,951

30,720 31,717 37,844 5,951 106,232

Sub-total for reportable segments

30,720 99,348 38,427 5,951 174,446

1,646 2,259 — — 3,905

Total $ 32,366 $ 101,607 $ 38,427 $ 5,951 $ 178,351

For the three and six months ended June 30, 2026, revenues earned from Technology Sales include variable consideration of $ 10.5 million and $ 14.8 million, respectively (2025 — $ 3.1 million and $ 6.4 million, respectively).

For the three and six months ended June 30, 2026, revenues earned from leasing arrangements total $ 20.1 million and $ 36.7 million, respectively (2025 — $ 19.1 million and $ 38.5 million, respectively), including $ 20.0 million and $ 36.6 million, respectively, in Revenues ― Technology Rentals (2025 — $ 19.1 million and $ 38.4 million, respectively), and $ 0.1 million in the three and six months ended June 30, 2026, respectively, in Revenues ― Technology Sales (2025 — $ 0.1 million, respectively).

Deferred Revenue

2 unchanged sentences

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

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

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

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

As of June 30, 2026, $ 19.8 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2025 — $ 28.3 million).

During the three and six months ended June 30, 2026, $ 10.6 million and $ 19.4 million of revenue, respectively, was recognized from the $ 50.4 million balance of deferred revenue as of December 31, 2025.

During the three and six months ended June 30, 2025, $ 10.8 million and $ 19.8 million of revenue, respectively, was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.

Segment Reporting

4 unchanged sentences

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

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

Segment Financial Information

The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended June 30, 2026 and 2025:

(In thousands of U.S.

8 unchanged sentences

Total $ 102,842 $ 91,684 $ 62,896 $ 53,602

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

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

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

(1) The Company’s largest customer represents 13 % of total Revenues for the three months ended June 30, 2026 (2025 — 12 %).

No single customer comprised more than 10% of the Company’s total Accounts Receivable balance as of June 30, 2026.

No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2025.

The following table presents the Company’s revenue and gross margin by reportable segment for the six months ended June 30, 2026 and 2025:

(In thousands of U.S.

2026 2025 2026 2025

Content Solutions

$ 66,056 $ 68,214 $ 40,231 $ 45,985

Technology Products and Services

113,147 106,232 65,899 59,264

Sub-total for reportable segments

179,203 174,446 106,130 105,249

5,018 3,905 2,577 1,529

Total $ 184,221 $ 178,351 $ 108,707 $ 106,778

(1) The Company’s largest customer represents 15 % of total Revenues for the six months ended June 30, 2026 (2025 — 10 %).

No single customer comprised more than 10% of the Company’s total Accounts Receivable balance as of June 30, 2026.

No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2025.

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

Content Solutions Segment:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands of U.S.

2026 2025 2026 2025

$ 34,686 $ 33,965 $ 66,056 $ 68,214

Film asset amortization

4,053 5,190 7,895 9,529

Marketing and other selling expenses

4,584 3,415 10,058 5,850

Co-produced film participation expenses

159 82 238 179

Other segment expenses (1)

3,979 2,847 7,634 6,671

Total Costs and Expenses Applicable to Revenues

4 unchanged sentences

Technology Products and Services Segment:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands of U.S.

2026 2025 2026 2025

$ 64,809 $ 55,639 $ 113,147 $ 106,232

Depreciation of equipment supporting JRSAs

5,979 5,716 11,948 11,378

Marketing and other selling expenses

558 409 870 655

Write-down of equipment supporting JRSAs

167 311 174 399

Write-down of inventory

70 91 120 166

Other segment expenses (1)

8 unchanged sentences

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

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

Three Months Ended March 31,

The following table summarizes the Company’s revenues by geographic area for the three and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended June 30,

(In thousands of U.S.

8 unchanged sentences

Total $ 102,842 $ 91,684 $ 184,221 $ 178,351

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

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

The United States, Greater China, Asia and Western Europe each comprise greater than 10 % of the Company’s total revenues for the three and six months ended June 30, 2025.

Employee’s Pension and Postretirement Benefits

3 unchanged sentences

Gelfond under the SERP is fixed at $ 20.3 million.

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

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

As of June 30, 2026, the Company’s projected benefit obligation under the SERP was $ 17.9 million (December 31, 2025 — $ 17.5 million).

For the three and six months ended June 30, 2026, the Company recorded interest costs of $ 0.2 million and $ 0.4 million, respectively, (2025 — $ 0.2 million and $ 0.4 million, respectively) related to the SERP.

The Company expects to recognize additional interest costs of $ 0.3 million related to the SERP during the remainder of 2026.

4 unchanged sentences

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

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

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

As of June 30, 2026, the Company’s postretirement benefits obligation under this plan was $ 0.5 million (December 31, 2025 — $ 0.5 million).

For the three and six months ended June 30, 2026, the Company has recorded an expense of less than $ 0.1 million, respectively (2025 — less than $ 0.1 million, respectively) related to this plan.

Postretirement Benefits – Canadian Employees

1 unchanged sentence

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

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

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

As of June 30, 2026, the Company’s postretirement benefits obligation under this plan was $ 0.9 million (December 31, 2025 — $ 1.0 million).

For the three and six months ended June 30, 2026, the Company has recorded expense of less than $ 0.1 million, respectively (2025 — less than $ 0.1 million, respectively) related to this plan.

Deferred Compensation Benefit Plan

1 unchanged sentence

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

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

As of June 30, 2026, the benefit obligation related to the Retirement Plan was $ 4.5 million (December 31, 2025 — $ 4.4 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.

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

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

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

As of June 30, 2026, fair value of the COLI asset was $ 3.9 million (December 31, 2025 — $ 3.8 million).

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

2 unchanged sentences

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

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

The Company’s $ 159.9 million balance of cash and cash equivalents as of June 30, 2026 (December 31, 2025 — $ 151.2 million) included $ 150.1 million in cash held outside of Canada (December 31, 2025 — $ 137.4 million), of which $ 110.5 million was held in the PRC (December 31, 2025 — $ 97.2 million).

Fair Value Measurements

1 unchanged sentence

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

As of March 31, 2026

As of June 30, 2026

As of December 31, 2025

10 unchanged sentences

( 250,000 ) ( 285,788 ) ( 250,000 ) ( 278,708 )

2030 Convertible notes (2)

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

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

15 unchanged sentences

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

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

Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of June 30, 2026 (the “Foreign Currency Hedges”), with settlement dates throughout 2026 and 2027.

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

5 unchanged sentences

Notional value of derivatives in foreign exchange contracts:

March 31, December 31,

June 30, December 31,

(In thousands of U.S.

3 unchanged sentences

Fair value of derivatives in foreign exchange contracts:

March 31, December 31,

June 30, December 31,

(In thousands of U.S.

4 unchanged sentences

( 892 ) ( 2 )

$ ( 892 ) $ 990

Derivatives in foreign currency hedging relationships are as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2026 2025 2026 2025

Foreign exchange contracts — Forwards

Derivative Loss Recognized in OCI

Derivative (Loss) Gain Recognized in OCI

(Effective Portion)

$ ( 804 ) $ 2,520 $ ( 1,435 ) $ 1,805

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2 unchanged sentences

(Effective Portion)

2026 2025 2026 2025

Foreign exchange contracts — Forwards

2 unchanged sentences

$ 106 $ ( 292 ) $ 448 $ ( 1,627 )

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

The Company’s estimated net amount of the existing loss as of June 30, 2026 is $ 0.8 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

Non-Controlling Interests

IMAX China Non-Controlling Interest

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

As of June 30, 2026, the Company indirectly owned 71.57 % of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2025 — 71.57 %).

IMAX China remains a consolidated subsidiary of the Company.

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

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

Restructuring and Other Charges

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

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

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

As of June 30, 2026, the balance of the Company’s non-controlling interest in IMAX China was $ 93.8 million (December 31, 2025 — $ 89.2 million).

For the three and six months ended June 30, 2026, the net income attributable to the non-controlling interest in IMAX China was $ 0.5 million and $ 2.3 million, respectively (2025 — $ 1.0 million and $ 6.8 million, respectively).

Restructuring Charges and Other Impairments

In each of the three and six months ended June 30, 2026, the Company incurred $ 2.3 million (2025 — $ 0.8 million, respectively) in Restructuring charges and other impairments in the Condensed Consolidated Statements of Operations.

During the second quarter, the Company recognized an impairment charge of $ 2.0 million (2025 — $ nil ) on an individual documentary film asset following a reassessment of estimated future revenues.

The revised estimates reflects updates to estimated market performance and future monetization of the title.

In addition, in the three and six months ended June 30, 2026, the Company incurred termination charges of $ 0.3 million (2025 — $ 0.8 million, respectively) in connection with its plan to optimize its organizational structure, including eliminating redundant roles, addressing spans and layers to capture efficiencies and centralizing certain operational roles.

As of June 30, 2026, the Company’s liability was $ 0.6 million (December 31, 2025 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring charges and other impairments.

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

What changed 10-Q

Item 1. Financial Statements