IMAX reiterated full-year 2026 targets including a record $1.4 billion global box office, 160–175 system installations and an adjusted EBITDA margin in the mid‑40% range (floor of 45%), citing strong early Q2 momentum with global box office quarter‑to‑date >$100 million and April >$105 million (≳15% YoY).
First‑quarter results showed mixed outcomes: total revenue was $81.4 million (down YoY largely due to Greater China), while adjusted net income rose 33% to $10 million and adjusted EPS to $0.17; adjusted EBITDA fell to $31 million with a margin of 38% versus 43% a year earlier.
IMAX is accelerating global network expansion—including a strategic 10‑system deal with HOYTS that nearly doubles its Australia/New Zealand footprint and >40 signings YTD—while ending the quarter with $146 million cash, $300 million debt (net leverage 0.86x) and plans for incremental investment (lease incentives and potential higher CapEx) to speed rollouts.
IMAX (NYSE:IMAX) executives said they remain confident in the company’s full-year 2026 outlook as blockbuster titles begin to roll out and the company accelerates global network expansion, even as first-quarter revenue and profitability declined year over year due primarily to a difficult comparison in Greater China.
On the call, CEO Rich Gelfond provided a brief health update, saying he is “making excellent progress” in his recovery from pneumonia and is “gradually resuming oversight of the business and involved in all key strategic decisions.” CFO Natasha Fernandes led the financial review and question-and-answer session.
Fernandes said IMAX remains “very confident” in 2026 guidance, including a record $1.4 billion in global box office for the year. She also reiterated expectations for 160 to 175 system installations worldwide and an adjusted EBITDA margin in the mid-40% range with at least 45%.
She pointed to early second-quarter momentum, noting IMAX global box office quarter-to-date was “over $100 million, up over 10% year-over-year.” In closing remarks, Fernandes said the company had “over $105 million achieved in April and over 15% growth year-on-year.”
Asked by B. Riley Securities’ Drew Crum about why full-year margin guidance could appear “flattish” despite higher box office, Fernandes said margins can “ebb and flow” due to regional mix, the balance of Hollywood versus local language titles, and marketing investment. She said IMAX intends to “lean in heavily into IMAX and marketing” for a slate with “significantly larger titles than last year,” adding there is “opportunity” to exceed the 45% floor.
Box office mix: strength outside China offsets tougher China comparisons
Fernandes highlighted what she called an “emphatic conclusion” to the quarter from Project Hail Mary, which she said has earned more than $90 million in IMAX, “more than double our initial projections.” She said the film delivered “over 18% of the global box office,” including a 30% market share in China.
She said the performance of Project Hail Mary and Avatar: Fire and Ash helped drive IMAX’s global box office outside of China up 67% year-over-year in Q1, partially offsetting a lower Greater China result, which faced a “significant comp against last year’s massive Ne Zha 2.” Fernandes said that outside China, box office grew 75% in North America and 60% in rest of world markets.
Other highlights cited during prepared remarks included:
The Super Mario Galaxy Movie as IMAX’s “second-biggest animated debut of all time,” as the company continues to grow family audiences.
Michael delivering IMAX’s “biggest debut all time for a musical biopic,” with “strong 14% indexing in North America.”
Toho’s latest Detective Conan in Japan earning a “franchise best $3.2 million in IMAX.”
Dune: Part Two posting IMAX’s “second-biggest opening weekend ever in India.”
On China, Macquarie’s Chad Beynon asked about confidence for the rest of 2026. Fernandes said IMAX manages China within a “global portfolio” and expects a mix of Hollywood titles with “strong potential in China” as well as a local-language slate that is “stacking up.” She also said IMAX expects China box office to be more evenly distributed this year compared to 2025, when 46% of China box office came in the first quarter versus a normal 30% seasonal pattern.
Fernandes also said the company has not seen disruptions from the U.S.-Iran conflict affecting operations in the Middle East. “We have about 35 locations within the region,” she said, adding that the “majority are continuing to operate” and IMAX has not experienced anything “significant” that would impact annual plans.
Network expansion: HOYTS deal and broader geographic diversification
Fernandes said IMAX continues to see “meaningful runway” for growth, noting that the company remains “less than 50% penetrated globally” in its latest zoning analysis. Year-to-date, IMAX has signed agreements for “over 40 new and upgraded IMAX systems worldwide across 10 countries with 18 partners.”
She pointed to what she called IMAX’s “biggest deal ever” in Australia and New Zealand: a 10-system agreement with HOYTS that will “nearly double” IMAX’s footprint in the region. In Q&A, she said Australia is one of IMAX’s strongest-performing markets, with some locations producing per-screen averages “up to $4 million,” and noted the company is “only about 13% penetrated” there.
Fernandes also cited momentum in Japan, where IMAX has signed seven systems year-to-date after 13 signings in 2025, and said Japan remains “only 47% penetrated.” She said IMAX’s first “local language film for IMAX title in Japan,” Godzilla Minus Zero, was highlighted at CinemaCon and that Japan’s per-screen averages have remained strong even as the network expands.
Wells Fargo’s Omar Mejias asked about signings pacing compared with last year. Fernandes said year-to-date signings were “sitting at 42” and that 2025 included a “large deal for AMC,” making comparisons timing-related. She also said the company is focused on preparing film system locations ahead of Christopher Nolan’s The Odyssey, expecting 41 film system locations versus 30 for Oppenheimer, though those may not be reflected as “installations” when added to existing sites.
First-quarter financial results
For the first quarter, Fernandes reported adjusted net income grew 33% to $10 million and adjusted EPS rose to $0.17, up $0.04 year over year. Total revenue was $81.4 million, down about $5 million from the prior year, which she attributed to decreased revenues in Greater China. Fernandes said revenue outside Greater China grew by $15 million.
Gross margin declined to $46 million from $53 million a year earlier. Operating expenditures (R&D and SG&A, excluding stock-based compensation) were $28 million, down from $30 million, which Fernandes attributed to “continued strong cost discipline and timing of spend.”
Adjusted EBITDA declined $6 million to $31 million, and the adjusted EBITDA margin was 38% versus 43% in the prior-year quarter.
By segment:
Content Solutions revenue declined 8% to $31 million, with China box office down 62% year over year due to the prior-year comparison and timing of releases. Content Solutions gross profit was $18 million, with gross margin at 58% versus 69% a year earlier.
Technology Products and Services revenue was $48 million, down 4% due to lower box office-related system rental revenue in China. Gross margin was 56%, roughly in line with the prior year.
IMAX installed 19 systems in the quarter (11 joint revenue sharing and eight sales arrangements), compared with 21 in the prior year. Fernandes said 11 were upgrades and eight were new locations across markets including Japan, England, France, Singapore, South Africa, China, and the U.S.
Capital allocation and balance sheet
Cash flow from operations was $4 million, down from $7 million, including $8 million in higher year-over-year lease incentives to exhibitors to support new IMAX auditoriums. In response to ROTH Capital’s Eric Handler, Fernandes said the lease incentives were part of IMAX’s strategy to invest capital to “help grow the network faster,” emphasizing a focus on new locations rather than upgrades and on meeting return hurdles.
IMAX ended the quarter with $146 million in cash and $300 million in debt, with net leverage of 0.86x. Fernandes said IMAX’s “asset light model,” along with refinancing work on convertible notes and expansion of the revolving facility, supports a strong capital structure.
During Q&A with Seaport Research Partners’ David Joyce, Fernandes said full-year CapEx was discussed as $30 million to $35 million, with the potential to be “up by $10 million-$15 million” depending on additional investments to help exhibitors roll out faster.
Looking ahead, Fernandes told investors the company believes “the best is yet to come” as IMAX heads into the summer slate and continues to expand its network and content portfolio across Hollywood, local language, and alternative programming.
About IMAX (NYSE:IMAX)
IMAX Corporation is a global leader in immersive entertainment technologies, specializing in the design, manufacture and distribution of high-resolution cameras, projectors, and proprietary software solutions that enhance both film production and theatrical exhibition. The company licenses its premium large-format system to theatre owners and filmmakers around the world, enabling audiences to experience movies with greater clarity, scale and sound fidelity. IMAX also offers turnkey theatre development services, assisting cinema operators with auditorium design, installation and custom branding to optimize the customer experience.
Founded in 1967 and headquartered in Mississauga, Ontario, IMAX has built a reputation for pioneering film-format innovations, including its patented dual 15-perforation, 70-millimeter projection system.
