IMAX Corporation (IMAX) Earnings

Management highlights

### Overall Q2 2026 Financial Performance - Total revenue of $103 million, up 12% year-over-year - Adjusted EBITDA of $48 million, up 8.9 million year-over-year, with an adjusted EBITDA margin of 46.6% (up 400 basis points year-over-year) - Adjusted EPS of 43 cents, up 65% year-over-year, a record Q2 result - Gross margin of 61%, up 270 basis points year-over-year to $63 million - Operating expenditures (excluding stock-based compensation) of $29 million, down $1 million year-over-year, reflecting continued cost discipline ### The Odyssey Transformational Performance - First feature-length film shot entirely with IMAX film cameras, generated a $52 million global IMAX opening weekend (the largest like-for-like opening in IMAX history, 47% higher than Oppenheimer), capturing 20% of the film's worldwide box office on less than 1% of total global screens - Domestic network occupancy hit 75% for opening weekend, with record-breaking weekday results: $11 million on Monday (highest IMAX Monday ever, 21% hold from opening weekend), $10.6 million on Tuesday (highest IMAX Tuesday ever), with second weekend pre-sales already matching a large normal opening weekend - 41 IMAX 70mm film locations delivered $6.3 million opening weekend ($153,000 average per screen), with sellouts extended 7-8 weeks into the run; 70mm locations generate higher revenue for IMAX than digital locations - Pre-sales for the film were 3x IMAX's previous record, crashed major U.S. ticketing platforms, with 70mm screenings put on sale one year in advance selling out in under an hour ### Content Pipeline Highlights - Full year 2026 global box office remains on track to hit a record $1.4 billion, supported by two mega tentpole IMAX film-shot titles in the second half (The Odyssey and Dune Part 3) - Upcoming 2026 releases include Spider-Man Brand New Day, Resident Evil, Digger, Godzilla Minus Zero, Ramayana Part One, the Netflix-exclusive David Fincher/Quentin Tarantino affiliated Cliff Booth film, Street Fighter, the Oasis reunion concert documentary Don't Look Back in Anger, and Dune Part 3 - 2027 pipeline already includes Greta Gerwig's Narnia (exclusive IMAX opening before wide release), Michael B. Jordan's The Thomas Crown Affair, Star Wars Starfighter, Superman, Minecraft, and at least 4 70mm IMAX film releases ### Network Growth and Innovation - Year-to-date 2026 signings for new/upgraded systems stand at 62, with a strong sales pipeline and healthy backlog for the second half of 2026 - IMAX redesigned its legacy film camera from scratch (retaining only the original mechanical movement) and developed a new advanced sound blimp to enable sync sound recording for The Odyssey, cementing IMAX 70mm film as the ultimate premium filmmaking format that is increasingly adopted by top blockbuster directors - The Film for IMAX program has driven dramatic market share gains for IMAX, with growing interest from top filmmakers ### Merchandising and New Growth - IMAX's first branded IMAX 70mm camera replica popcorn bucket sold out in 2 hours on its first drop, 7 minutes on the second drop, and 63 seconds in China; over 10,000 units sold to date through IMAX direct channels, proving significant untapped potential for direct-to-consumer IMAX merchandising - New in-vehicle entertainment partnership in China: no capital or R&D cost to IMAX, with short-term opportunity partnering with high-end auto manufacturers to differentiate in-car entertainment, and long-term upside as autonomous vehicles create demand for in-car entertainment

Guidance

- Full year 2026 adjusted EBITDA margin guidance maintained at mid-40s, with Q2 2026 adjusted EBITDA margin already comfortably above this full-year target - Full year 2026 system installation guidance maintained at a range of 160 to 175 total systems, with management on track to hit this target - No changes to full-year 2026 EBITDA and free cash flow guidance; management expects full-year 2026 global box office to reach a record $1.4 billion - Management expects a stronger second half of 2026 in China compared to a weak first half 2026, with a more promising slate for 2027 including two Wandering Earth installments

Segment performance

1. Content Solutions: Revenue grew 2% year-over-year to $35 million, contributing 34% of total Q2 2026 revenue. Gross profit was roughly flat year-over-year at $22 million, with a gross margin of 63%. Growth was driven by international markets excluding China, led by breakout title Michael. 2. Technology Products and Services: Revenue grew 16% year-over-year to $65 million, contributing 66% of total Q2 2026 revenue. Gross profit margin increased 600 basis points year-over-year to 60%, driven by a positive mix shift to higher margin revenue streams. Revenue growth was fueled by higher system installations, renewals, and rental revenues. In Q2, IMAX installed 38 systems (up from 36 in the prior year period, the highest Q2 installation count in a decade), with 20 joint revenue sharing systems, 18 sales systems, 21 upgrades, and 17 new locations (more than half of new locations in international markets). IMAX signed 36 new system agreements in the quarter, up from 28 in the prior year, with 80% for new locations across diverse geographies.

Risks & headwinds

- 70mm IMAX film projection has high infrastructure and operating costs (high projector costs, requires large projection booths and specialized logistics), limiting the number of viable locations that can support the format economically even with strong consumer demand - Film slate scheduling conflicts can create overlapping releases of major blockbuster titles that limit IMAX's ability to maximize revenue from both films - China box office performance was weak in the first half of 2026, creating uncertainty around near-term market recovery even with recent early improvements

Analyst Q&A

• Q: What key metrics demonstrate the long-term momentum from *The Odyssey* success, and what feedback have you received from industry stakeholders? /

  A: Management says the most important metrics include extremely strong advance pre-sales and sellouts extending 7-8 weeks into the film's run, extraordinary weekday box office that is far higher than typical theatrical trends, and outsized performance at newly opened IMAX locations that brings new consumers to the format. Management notes overwhelmingly positive feedback from filmmakers, studios and exhibitors, and had a pre-developed strategy to leverage *The Odyssey* success to drive more IMAX film commitments and network expansion before the film launched, which is already being implemented.

• Q: What is the outlook for expansion of IMAX 70mm film locations, and how is *The Odyssey* success shaping future filmmaker partnerships? /

  A: Management explains that 70mm locations have very high costs and infrastructure requirements, so only a limited number of theaters can support the format economically. Expansion is only viable for locations that can support long runs of high-demand 70mm films, which work economically given IMAX's higher take rate from these locations. Management says they are already engaging upcoming IMAX film directors (including the team behind Dune Part 3) to replicate the integrated promotional strategy used for *The Odyssey*, which has already been adopted by upcoming productions.

• Q: Have you been able to achieve more favorable pricing for new IMAX system deals with exhibitors following *The Odyssey* success? /

  A: Management says the existing collaborative pricing model is working well, with no plans to aggressively push for higher prices that would harm partner relationships. Management notes that exhibitors set consumer ticket prices, and there is clear room for exhibitors to raise prices for premium 70mm IMAX experiences given current strong consumer demand and resold scalper prices reaching $1,000 per ticket, and IMAX has encouraged exhibitors to adjust prices accordingly.

• Q: What is the growth outlook for IMAX's new merchandising and in-car entertainment opportunities? /

  A: Management says 2026 is focused on proving the merchandising business model, and *The Odyssey* popcorn bucket results have already validated the opportunity, with way stronger demand than initially expected. IMAX is already expanding merchandise plans for *The Odyssey* and Dune Part 3, and modeling larger merchandising programs for 2027. For the in-car entertainment partnership in China, the deal requires no capital or R&D from IMAX, with short-term upside partnering with premium automakers and long-term upside as autonomous vehicles increase demand for in-car entertainment.