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Item 2. Management’s Discussion and Analysis

2026-07-23 compared with 2026-04-30 · 355 added, 180 removed, 524 unchanged (51% of the section changed)

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

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

As of June 30, 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).

For the six months ended June 30, 2026, net income attributable to IMAX China was $8.1 million, of which $5.8 million was attributable to the shareholders of the Company (2025 — $23.7 million and $17.0 million, respectively).

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

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

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.

Words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “if,” “improvement,” “likely,” “may,” “plan,” “possibility,” “potential,” “project,” “projection,” “prospect,” “remain,” “runway,” “scheduled,” “seek,” “strategy,” “subject to,” “upcoming,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements 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;

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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.

As of June 30, 2026, there were 1,876 IMAX Systems operating in locations in 91 countries and territories, including 1,809 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network.

This compares to 1,821 IMAX Systems operating in locations in 89 countries and territories as of June 30, 2025, including 1,750 commercial multiplexes, 11 commercial destinations, and 60 institutional locations in the Company’s global network.

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

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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.

For additional discussion, see section titled “Sources of Revenue—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.

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

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

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

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

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

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

The Company achieved global box office of $544.5 million in the first half of 2026 .

The Company’s first half global box office was derived from 63 new pieces of content distributed across its global network.

The first half w as highlighted by the performance 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.

Global box office in the first half of 2026 also included carry-over of Avatar:

Fire and Ash and the break-out biopic music centered film title Michael .

The Company continues to expand its local language strategy with 34 releases across 11 countries and territories, including first time releases in Brazil and Taiwan, China.

The total first half local language box office was $81 million (or 15% of global box office), led by the Chinese film, Pegasus 3.

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

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

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

Recent Developments

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

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

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

Gelfond will resume the role of PEO.

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

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

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

in the 2025 Form 10-K.)

During the first half of 2026, the Company’s trailing twelve month domestic box office market share was 5.2% and global market share was 3.7%.

See “Results of Operations” below for a discussion of the Company’s 2026 three and six months results as compared to the prior year periods.

SOURCES OF REVENUE

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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.

In the first half of 2026, Filmed For IMAX titles on average indexed approximately 10% 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

For the six months ended June 30, 2026, local language films exhibited across the Company’s global network generated $81 million in box office, representing 15% 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 and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Hollywood film releases (1)

Local language film releases:

China 7 4 10 10

Japan 4 1 9 4

France 2 — 3 2

India 1 1 3 6

South Korea 1 2 3 4

Saudi Arabia 1 1 1 1

Brazil 1 — 1 —

Vietnam — — 1 1

Indonesia — — 1 1

Thailand — — 1 —

Taiwan, China — — 1 —

Egypt — 1 — 1

Total local language film releases

Other content experiences

(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).

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:

(1) For the three and six months ended June 30, 2026, the films released to the Company’s global network include three and seven with IMAX DNA (2025 — six and seven).

In addition to the 63 IMAX new films and other content experiences released on the Company’s global network during the six months ended June 30, 2026, the Company has announced the following 32 new films and other content experiences for release in the remainder of 2026:

Title Studio Scheduled

Release Date (1)

The Super Mario Galaxy Movie Universal Pictures April 2026

Detective Conan:

Fallen Angels of the Highway (2)

Lee Cronin’s The Mummy

Pictures April 2026 —

Michael Lionsgate April 2026 —

Sakamoto Days (2)

Abdala Brothers April 2026

Whisper of the Heart 4K IMAX (2)

Studio Ghibli

Cold War 1994 (2)

F1 ® on Apple TV Live in IMAX:Miami Race

Mortal Kombat II Warner Bros.

Pictures May 2026

Filmed for IMAX

Top Gun 40 th Anniversary

Paramount Pictures

The Secret World of Arrietty 4K IMAX (2)

Studio Ghibli

The Mandalorian and Grogu

Walt Disney Studios May 2026 Filmed for IMAX

F1 ® on Apple TV Live in IMAX:Monaco Race

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

Keep Real (2)

Damai Pictures July 2026

F1 ® on Apple TV Live in IMAX:

Silverstone Race

Kung Fu Soccer (2)

Maoyan July 2026

Moana Walt Disney Pictures July 2026 —

Plus M Entertainment July 2026 —

The Odyssey Universal Pictures July 2026 Filmed for IMAX

Kingdom 5 (2)

All Wishes Come True!

The Secret of Mermaid Island (2)

Filmko Pictures July 2026 —

The Decisive Moment (2)

Damai Pictures July 2026 —

Brand New Day (2)

Sony Pictures July 2026 —

Blue Lock (2)

The End of Oak Street

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Filmed for IMAX

The Confession of a Shaman (2)

M Studio August 2026

Tokyo Mer 3 (2)

2 Big 2 Rig Trafalgar Releasing August 2026

The Dog Stars

Walt Disney Pictures August 2026

F1 ® on Apple TV Live in IMAX:Monza Race

KVN Productions

F1 ® on Apple TV Live in IMAX:

September 2026

Don’t Look Back in Anger Walt Disney Pictures September 2026

Resident Evil Sony Pictures September 2026

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Pictures October 2026

Street Fighter (2)

Paramount Pictures October 2026 Filmed for IMAX

F1 ® on Apple TV Live in IMAX:Austin Race

Street Fighter Paramount Pictures October 2026 Filmed for IMAX

F1 ® on Apple TV Live in IMAX:

October 2026 —

Filmed For IMAX

Godzilla Minus Zero (2)

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Filmed for IMAX

The Great Beyond

Pictures November 2026

Hunger Games:

Sunrise on the Reaping Lionsgate November 2026

Narnia Netflix November 2026 Filmed for IMAX

Walt Disney Studios December 2026

Untitled Fincher Project Netflix November 2026

Part Three Warner Bros.

Pictures December 2026 Filmed for IMAX

Filmed For IMAX

Walt Disney Studios December 2026

(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.

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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.

As of June 30, 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 April 2026, the Company released the restored for IMAX documentary Cave of Forgotten Dreams , in collaboration with Independent Film Company.

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.

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

As of June 30, 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:

In the six months ended June 30, 2026, the Company partnered with various studios and distributors on a number of alternative content releases and exclusive events.

These included the releases of EPiC:

Elvis Presley in Concert (Neon Rated and Universal Pictures), Stray Kids:

The dominATE Experience (Bleecker Street and Universal Pictures), Twenty One Pilots:

More Than We Ever Imagined (Trafalgar Releasing), 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 Machine Comes Alive (Mercury Studios), TOMMY in IMAX (50th Anniversary) (Sony Pictures), and limited releases of Marty Supreme (A24) and Memento (China Film Group).

The Company partnered with MGM Studios in March 2026 and Universal Pictures in June 2026 to present exclusive Q&A livestreams in advance of screenings of Project Hail Mary and Disclosure Day , respectively, across select connected IMAX locations in North America.

The Company partnered with Apple TV to livestream select races from the 2026 FIA Formula One World Championship across North America, including the Miami Grand Prix in May 2026 and the Monaco Grand Prix in June 2026.

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

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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.

As of June 30, 2026, the Company had 881 locations under JRSAs in its global commercial multiplex network.

The Company also had contracts in backlog for 187 IMAX systems under JRSAs as of June 30, 2026, including 88 new locations and 99 upgrades to existing locations.

IMAX Maintenance

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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.

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, including but not limited to TVs, soundbars, automotive, and other device segments.

As of June 30, 2026, IMAX Enhanced certified devices in-market are with partners including Goer Dynamics, 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.

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the provision of management services to three other theaters;

and merchandising revenue.

and merchandising revenue including IMAX branded merchandise and cooperative merchandising with studios.

IMAX NETWORK AND BACKLOG

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

The following table provides detailed information about the IMAX network by type and geographic location as of June 30, 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

June 30, 2026 June 30, 2025

Institutional

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

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

IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,809 IMAX Systems operating as of June 30, 2026, representing a market penetration of only 41%.

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).

As of June 30, 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

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of June 30, 2026 and 2025:

June 30, 2026

Commercial Multiplex Locations in IMAX Network

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

(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

(3) Includes zero and 31 IMAX Systems that were converted from Hybrid JRSA arrangement types to Sales Arrangements during the three and six months ended June 30, 2026.

June 30, 2025

Commercial Multiplex Locations in IMAX Network

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

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

March 31, 2026

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of June 30, 2026 and 2025:

June 30, 2026

IMAX System Backlog

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(3) Worldwide Total of 421 includes 263 new systems and 158 upgrades.

March 31, 2025

(4) Greater China backlog changes include first half installations along with restructuring of certain contracts resulting in cancellation of backlog for 17 system locations deemed mutually to no longer be beneficial to IMAX and its exhibition customers.

June 30, 2025

IMAX System Backlog

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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%).

As of June 30, 2026, 73% of IMAX System arrangements in backlog were scheduled to be installed in international markets (2025 — 74%).

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

Signings and Installations

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

Three Months Ended

The following tables provide detailed information about IMAX System signings and installations 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

System Signings:

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(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

(3) Includes IMAX System upgrades of seven and 20 for the three and six months ended June 30, 2026, respectively (2025 ― two and 60 upgrades, respectively).

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

System Installations (1) :

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Total IMAX System installations (3)

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

(1) Two IMAX Systems were relocated from their original location for the three and six months ended June 30, 2026, respectively (2025 ― zero and three, respectively).

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

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

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

(3) Includes 21 and 32 IMAX System upgrades for the three and six months ended June 30, 2026, respectively (2025 ― 18 and 25 upgrades, respectively).

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 Company’s results for the first half of 2026 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.

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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

Results of Operations for the Three Months Ended June 30, 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:

Three Months Ended March 31,

The following table presents the Company’s net income attributable to common shareholders and net income attributable to common shareholders per diluted share amounts, as well as adjusted net income attributable to common shareholders( 1) and adjusted net income attributable to common shareholders per diluted share for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

(In thousands of U.S.

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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:

For the three months ended June 30, 2026, the Company’s revenues and gross margin were $102.8 million and $62.9 million, respectively.

In comparison to the prior year second quarter, the Company’s revenues and gross margin increased by $11.2 million, or 12%, and $9.3 million, or 17%, respectively, principally due to a higher number of IMAX system installations under sales type arrangements and stronger IMAX box office performance across rest of world markets of 24%.

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

Revenue Gross Margin Gross Margin %

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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:

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.

For the three months ended June 30, 2026, Content Solutions segment revenues and gross margin increased by $0.7 million, or 2%, and decreased by $0.5 million, or 2%, respectively, when compared to the same period in 2025.

In the second quarter of 2026, box office generated by IMAX films totaled $284.8 million, a $3.8 million, or 1% increase versus the prior year comparative period of $281.1 million.

In the second quarter of 2026, IMAX box office was generated by the exhibition of 35 films (32 new films and three re-releases), including the following Hollywood titles:

Michael ($69 million), The Mandalorian & Grogu ($42 million), and The Super Mario Galaxy Movie ($39 million).

Furthermore, in the second quarter of 2026, local language films exhibited across the Company’s global network generated $18.7 million in box office, representing 7% of its global box office including the Japanese local language film, Detective Conan:

Fallen Angel of the Highway ($5 million).

In the second quarter of 2025, IMAX box office was generated by the exhibition of 22 films and other content (21 new films and 1 re-release), including the following Hollywood titles, Mission:

Impossible - The Final Reckoning ($75 million), Sinners ($40 million), F1 The Movie ($32 million) and Thunderbolts ($31 million).

Furthermore, in the second quarter of 2025, local language films exhibited across the Company’s global network generated $19.8 million in box office, representing 7% of its global box office.

In the second quarter of 2026, the Company released three movies that were filmed with IMAX proprietary cameras (Filmed For IMAX):

Mortal Kombat II, The Mandalorian & Grogu and Supergirl.

Filmed For IMAX movies historically have performed disproportionately well at the box office, and for Supergirl , 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.

For the three months ended June 30, 2026, gross margin percent was 63% compared to 66% in the prior year period.

The decrease in gross margin reflects the mix of IMAX box office, amount of marketing spend and level of box office outperformance.

Technology Products and Services

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs as revenue is recognized over the lease term, during the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,

(In thousands of U.S.

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

New IMAX Systems

11 $ 11,551 11 $ 11,206

Upgraded IMAX Systems

7 7,005 2 1,878

Total IMAX Systems

18 $ 18,556 13 $ 13,084

In the three months ended June 30, 2026, one IMAX System was relocated from its original location (2025 ― no IMAX Systems were relocated from their original locations).

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

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

For the three months ended June 30, 2026, Technology Products and Services segment revenue and gross margin increased by $9.2 million, or 16%, and $8.8 million, or 29%, respectively, when compared to the same period in 2025.

The higher level of revenue was primarily driven by higher revenues from variable consideration recognized on IMAX systems installed under sales arrangements in the current period.

The increases in revenue were also partially driven by a $1.9 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements.

In the three months ended June 30, 2026, IMAX GBO from JRSAs decreased $5.1 million compared to the prior year period, from $125.1 million to $120.0 million.

While IMAX GBO from JRSAs declined, rental revenues increased by $1.2 million to $19.9 million from $18.7 million in the prior year comparative period, which reflects lower box office performance fully offset by higher average rental rates resulting from the geographic box office mix coupled with additional rent specifically earned from locations in which the Company has invested in lease incentives.

For the three months ended June 30, 2026, gross margin percent was 60% compared to 54% in the prior period, which primarily reflects the impact of higher variable consideration estimates, amendments, renewals and other adjustments as described above.

For the three months ended June 30, 2026, All Other revenue and gross margin increased by $1.3 million and $1.0 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business expansion of offerings to Goer Dynamics Group Co., Ltd.

(“Goer Dynamics”) under an automotive consumer device partnership, following the re-positioning and relaunch in late 2025 under the brand of IMAX Enhanced, and increased sales of the Company’s merchandise.

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Variance

(In thousands of U.S.

Total Selling, general and administrative expenses

$ 34,528 $ 35,302 $ (774) (2 %)

Share-based compensation (1)

(7,315) (6,862) (453) (7 %)

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

$ 27,213 $ 28,440 $ (1,227) (4 %)

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

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

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

For the second quarter of 2026, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions, and a shift in timing of annual corporate

events and other expenses.

Additionally, influencing the prior period, were $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.

Research and Development

For the three months ended June 30, 2026, Research and Development expenses were $1.7 million, representing an increase of $0.2 million or 13%, when compared to expenses of $1.5 million during the same period in the prior year.

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

Credit Loss Expense (Reversal), Net

For the three months ended June 30, 2026, the Company recorded a credit loss expense of $1.5 million, as compared to a credit loss reversal of $0.2 million recognized in the prior year.

The year over year change was primarily due to higher reserves established for specific exhibitor customers in China resulting from a deterioration in customer credit quality.

Overall, continued strong global box office performance has contributed to consistent 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 June 30, 2026, interest expense was $2.0 million, representing an increase of less than $0.1 million, or 2% when compared to interest expense of $1.9 million during the same period of the prior year primarily due to a higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $1.2 million paid for lease incentives provided to exhibitor customers, in the current period offset by lower average interest rates.

The effective interest rate for the three months ended June 30, 2026 was 5.14% (2025 — 6.17%).

For the three months ended June 30, 2026 and 2025, interest income was $0.7 million and $1.1 million, respectively.

Interest income primarily comprises interest earned on bank deposits.

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 (2025 — 8.9%), reflects the geographic allocation of income earned in taxing jurisdictions and a decrease in the valuation allowance and tax reserves, partially offset by withholding taxes.

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 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.

Non-Controlling Interests

For the three months ended June 30, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $0.5 million, a decrease of $0.5 million, when compared to the same period in 2025, which was driven by the lower level of IMAX box office earned in Greater China.

Restructuring Charges and Other Impairments

For the three months ended June 30, 2026, the Company recorded $2.3 million (2025 — $ 0.8 million) in Restructuring charges and other impairments.

During the 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 reflect updates to estimated market performance and future monetization of the title.

In addition, the Company incurred other termination and restructuring charges of $0.3 million (2025 — $ 0.8 million).

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

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

Results of Operations for the Six Months Ended June 30, 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 (1) and adjusted net income attributable to common shareholders per diluted share for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

(In thousands of U.S.

Dollars, except per diluted share amounts)

Per Diluted Share

Net income attributable to common shareholders

$ 19,628 $ 0.35 $ 13,582 $ 0.25

Adjusted net income attributable to common shareholders (1)

$ 33,779 $ 0.60 $ 21,785 $ 0.40

(1) 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 six months ended June 30, 2026, the Company’s revenues and gross margin were $184.2 million and $108.7 million, respectively.

In comparison to the prior year second quarter, the Company’s revenues and gross margin increased by $5.9 million, or 3%, and $1.9 million, or 2%, respectively, principally due to higher revenues recognized for systems installed under sales and sales-type lease arrangements.

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

Revenue Gross Margin Gross Margin %

(In thousands of U.S.

2026 2025 2026 2025 2026 2025

Content Solutions

$ 66,056 $ 68,214 $ 40,231 $ 45,985 61 % 67 %

Technology Products and Services

113,147 106,232 65,899 59,264 58 % 56 %

Sub-total for reportable segments

179,203 174,446 106,130 105,249 59 % 60 %

All Other (1)

5,018 3,905 2,577 1,529 51 % 39 %

Total $ 184,221 $ 178,351 $ 108,707 $ 106,778 59 % 60 %

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

Content Solutions

For the six months ended June 30, 2026, Content Solutions segment revenues and gross margin decreased by $2.2 million, or 3%, and by $5.8 million, or 13%, respectively, when compared to the same period in 2025.

In the six months ended June 30, 2026, box office generated by IMAX films totaled $544.5 million, a $34.8 million, or 6%, decrease versus the prior year comparative period of $579.2 million.

This decrease was primarily driven by lower local language box office in the first half of 2026, due in part to the shift in 2026 local language blockbuster films out of the Chinese New Year period versus a record Chinese New Year in 2025 from the breakout performance of Ne Zha 2 ($167 million), the highest grossing local language film of all time.

During the six months ended June 30, 2026, IMAX box office was generated by the exhibition of 69 films and other content (63 new films, 5 re-releases and one carry-over), including the following Hollywood titles:

Project Hail Mary ($96 million), Avatar:

Fire and Ash ($78 million), Michael ($69 million), The Mandalorian & Grogu ($42 million) and The Super Mario Galaxy Movie ($39 million).

In addition, in the six months ended June 30, 2026, local language films exhibited across the Company’s global network generated $81 million in box office, representing 15% of its global box office, including the Chinese local language film, Pegasus 3 ($34 million) and Blades of the Guardians ($7 million).

In the six months ended June 30, 2025, IMAX box office revenue was generated by the exhibition of 56 films (54 new films and 2 re-releases), including the following Hollywood titles, Mission:

Impossible - The Final Reckoning ($75 million), Sinners ($39 million), F1 The Movie ($31 million) and Thunderbolts ($31 million) and local language title Ne Zha 2 discussed above.

In the six months ended June 30, 2026, the Company released seven movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including Mercy , The Bride!, Project Hail Mary , Mortal Kombat II, The Mandalorian & Grogu , Supergirl, and the IMAX documentary Athos.

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

In 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 six months ended June 30, 2026, gross margin percent was 61% compared to 67% in the prior year.

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

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

Technology Products and Services

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

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands of U.S.

5 unchanged sentences

Total 26 $ 25,837 26 $ 23,668

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

In the six months ended June 30, 2026, one IMAX System was relocated from its original location (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.

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.

For the six months ended June 30, 2026, Technology Products and Services segment revenue and gross margin increased by $6.9 million, or 7%, and $6.6 million, or 11%, respectively, when compared to the same period in the prior year.

The increase in revenue was primarily driven by a $5.0 million increase in revenue contribution from the impact of amendments, renewals and other adjustments to existing IMAX Systems arrangements, coupled with higher revenues for variable consideration recognized from sales arrangements installed in the period.

In the six months ended June 30, 2026, GBO from JRSAs decreased $36.9 million compared to the prior year, from $265.2 million to $228.3 million.

Accordingly, rental revenues of $36.5 million, decreased $1.4 million from $37.8 million in the prior year comparative period, were driven by the lower IMAX box office offset mostly higher average rental rates resulting from the geographic box office mix coupled with additional rent specifically earned from locations in which the Company has invested in lease incentives.

For the six months ended June 30, 2026, gross margin percent was 58% compared to 56% in the same period in the prior year, which primarily reflects the impact of amendments, renewals and other adjustments as described above.

For the six months ended June 30, 2026, All Other revenue and gross margin increased by $1.1 million, and $1.0 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business expansion of offerings across automotive consumer devices under the Goer Dynamics partnership, following the re-positioning and relaunch in late 2025 under the brand of IMAX Enhanced, and increased sales of the Company’s merchandise.

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

The following table presents information about the Company’s Selling, General and Administrative Expenses for the six months ended June 30, 2026 and 2025:

Six Months Ended

June 30, Variance

(In thousands of U.S.

5 unchanged sentences

$ 53,792 $ 57,182 $ (3,390) (6 %)

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

(1) A portion of share-based compensation expense is recognized within Costs 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.

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.

For the six months ended June 30, 2026, the lower level of Selling, General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions and timing.

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.

For the six months ended June 30, 2026, Research and Development expenses were $3.5 million, representing an increase of $0.6 million, or 21%, when compared to Research and Development expenses of $2.9 million during the same period in the prior year.

The increase year-over-year was primarily driven by higher depreciation in the current period from the capitalization of film camera costs in a prior year coupled with increased investment in data and software related projects.

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.

Credit Loss Expense (Reversal), Net

For the six months ended June 30, 2026, the Company recorded a credit loss expense of $1.0 million, as compared to a $0.3 million reversal in the same period of the prior year.

The year over year change was primarily due to higher reserves established for specific exhibitor customers in China resulting from a deterioration in customer credit quality.

Overall, continued strong global box office performance has contributed to consistent collections.

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

5 unchanged sentences

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.

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.

For the six months ended June 30, 2026, interest expense was $3.9 million, representing an increase of $0.1 million, or 3%, as compared to $3.7 million during the same period of the prior year primarily due to a higher level of borrowings under the Credit Facility (as defined under “—Liquidity and Capital Resources” below), including $9.9 million paid for lease incentives provided to exhibitor customers, in the current period offset by lower average interest rates.

The effective interest rate for the six months ended June 30, 2026 was 5.16% (2025 — 6.17%).

Additionally, as a result of certain holder of the remaining 2026 Convertible Notes electing to convert, the Company recorded a loss on extinguishment of debt of $0.1 million during the period.

For the six months ended June 30, 2026 and 2025, interest income was $1.1 million and $1.7 million, respectively.

Interest income primarily comprises interest earned on bank deposits.

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 (2025 — 29.4%), 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.

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.

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.

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

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.

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

For the six months ended June 30, 2026, the net income attributable to non-controlling interests of the Company’s subsidiaries was $2.4 million, a decrease of $4.5 million, when compared to the same period in 2025, which was driven by the lower level of IMAX box office earned in Greater China.

Restructuring Charges and Other Impairments

For the six months ended June 30, 2026, the Company recorded $2.3 million (2025 — $0.8 million) in Restructuring charges and other impairments.

Specifically, 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 reflect updates to estimated market performance and future monetization of the title.

In addition, the Company incurred other termination and restructuring charges of $0.3 million (2025 — $0.8 million).

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

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

CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025

Six Months Ended

(In thousands of U.S.

6 unchanged sentences

Financing activities

(2,762) 4,234

Effect of exchange rate changes on cash

1 unchanged sentence

$ 8,749 $ 8,659

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.

Net cash provided by the Company’s operating activities increased $5.8 million in the six months ended June 30, 2026, when compared to the same period in 2025, primarily driven by an increase in the net income earned in the current period and a net increase in working capital driven by strong Accounts Receivable collections during the period, partially offset by a $7.7 million increase in cash outflows for lease incentives provided to exhibitor customers.

(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.

Net cash used in investing activities decreased $9.0 million in the six months ended June 30, 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 half 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.

1 unchanged sentence

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.

Net cash used in financing activities increased $14.8 million in the six months ended June 30, 2026, when compared to the same period in 2025, mainly driven by repurchases of common shares and higher taxes withheld and paid on employee stock awards vested due to the Company’s higher stock price relative to grant dates.

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:

As of June 30, 2026, the Company’s principal sources of liquidity included:

(i) its balances of cash and cash equivalents of $159.9 million;

3 unchanged sentences

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”).

In addition, as of June 30, 2026, the Company had $334.0 million in available borrowing capacity under its Credit Facility pursuant to its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), $27.9 million in available borrowing capacity under the IMAX Shanghai revolving credit facility with the Bank of China (the “Bank of China Facility”), and $29.4 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

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

In prior years, 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 six months ended June 30, 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 June 30, 2026, the Company’s Condensed Consolidated Balance Sheets included a deferred tax liability of $12.5 million for the applicable foreign withholding taxes

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

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

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

There are no material changes to these obligations and commitments as of June 30, 2026.

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

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

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

Securities and Exchange Commission regulations.

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

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

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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.

(iii) restructuring charges and other impairments;

and (iv) employee retention credits, 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 non-recurring 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,

Reconciliations of net income attributable to common shareholders and net income attributable to common shareholder per diluted share 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 June 30,

(In thousands of U.S.

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Restructuring charges and other impairments

2,294 0.04 786 0.01

Employee retention credits

— — (3,827) (0.07)

Tax impact on items listed above

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(1) Reflects amounts attributable to common shareholders.

Six Months Ended June 30,

(In thousands of U.S.

Dollars, except per diluted share amounts)

Per Diluted Share

Net income attributable to common shareholders

$ 19,628 $ 0.34 $ 13,582 $ 0.25

Adjustments (1) :

Share-based compensation

12,855 0.24 12,340 0.22

Unrealized investment gains

(54) — (65) —

Restructuring charges and other impairments

2,294 0.04 843 0.02

Employee retention credits

— — (3,827) (0.07)

Tax impact on items listed above

(944) (0.02) (1,088) (0.02)

Adjusted net income (1)

$ 33,779 $ 0.60 $ 21,785 $ 0.40

Weighted average shares outstanding — basic

54,537 53,448

Weighted average shares outstanding — diluted

56,475 55,064

(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.

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:

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and (iv) amortization of deferred financing costs.

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

Adjusted EBITDA per Credit Facility is defined as EBITDA excluding:

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

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(In thousands of U.S.

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Add (subtract):

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Unrealized investment gains

Restructuring charges and other impairments 2,294

Write-downs, including asset impairments and credit loss expense

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(In thousands of U.S.

Dollars) Twelve Months Ended March 31, 2026

Dollars) Twelve Months Ended June 30, 2026

Add (subtract):

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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.

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.

Three Months Ended

Six Months Ended

June 30, June 30,

(In thousands of U.S.

2026 2025 2026 2025

Total Selling, general and administrative expenses

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$ 27,213 $ 28,440 $ 53,792 $ 57,182

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.

The Company cautions 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.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis