IMAX 10-K & 10-Q changes, risk factors and insider trading

Before you make an investment decision with respect to the Company’s common shares, you should carefully consider all of the information included in this Form 10-K and the Company’s subsequent periodic filings with the SEC. In particular, you should carefully consider the risk factors described below and the risks and uncertainties discussed in “Special Note Regarding Forward-Looking Information,” any of which could have a material adverse effect on the Company’s business, results of operations and financial condition and on the actual outcome of matters as to which forward-looking statements are made in this annualForm report.10-K. The following risk factors should be read in conjunction with the balance of this annualForm report,10-K, including the Consolidated Financial Statements and the “Notes to Consolidated Financial Statements.” The risks described below are not the only ones the Company faces. Additional risks that the Company currently deems immaterial or that are currently unknown to the Company may also impair its business or operations.

The Company’s success depends in part on general political, social and economic conditions and the willingness of consumers to purchase tickets to IMAX locations. IfThe movie-goingmajority becomes less popular globally,of the Company’s businessrevenue couldcomes befrom adverselyits affected,Technology especiallyProducts ifand suchServices asegment. declineThe continuesTechnology inProducts Greaterand China,Services whosesegment consumerearns marketrevenues recovered more slowlyprincipally from the COVID-19sale pandemicor thanlease otherof markets,IMAX andSystems, wherea economicportion challengesof persist.which Inis addition,directly derived from the Company’sbox operationsoffice couldresults beof adverselythe affectedIMAX iflocations. If consumers’ discretionary income globally or in a particular geography falls asfor aany resultreason, ofincluding an economic downturn or recession, sustained inflationary conditions, high interest rates, and supply chain issues, and/or otherwise.movie-going Suchbecomes adverseless impactpopular onand consumer’sconsumers’ discretionarywillingness incometo couldpurchase resulttickets into IMAX locations declines, the Company’s business and revenues may be adversely affected as a shift in consumer demand away from movie-going.result. Furthermore, sustained inflationary pressures observed globally could materially increase the cost of our goods, services and personnel, which could cause an increase in the Company’s operating costs. The majority of the Company’s revenue is directly derived from the box office results of its exhibitor customers. Accordingly, a decline in attendance at commercial IMAX locations could materially and adversely affect several sources of key revenue streams for the Company.

The Company also depends on theexhibitors sale,to leasepurchase, lease, and installation ofinstall IMAX Systems and to commercialsupply venues in which to exhibit IMAX films. The Company is unable to predict the pace at which exhibitors towill generatepurchase, revenue.lease, Commercialor install IMAX Systems with the Company. Furthermore, exhibitors generate revenues from consumer attendance at their theaters, which depends on the willingness and ability of consumers to visit movie theaters and spend discretionary income at movie theaters. In the event of declining box office and concession revenues,revenues or other economic headwinds, commercial exhibitors may choose to reduce their levels of presence or expansion, be less willing to invest capital in IMAX Systems.Systems, Innegotiate addition,economic aterms significantthat portionare ofless systemsfavorable into the Company, or decide not to enter into transactions with the Company. Exhibitors’ unwillingness and/or inability to purchase, lease and/or install IMAX Systems would adversely impact the Company’s backlog are expected to be installed in newly-built multiplexes. An economic downturn, recession, significant increases in interest rates or other adverse economic developments could impact developers’ ability to secure financing on acceptable termsbusiness and complete the build-out of these locations, thereby negatively impacting the Company’s ability to install IMAX Systems, grow its theater network and collect its contractual revenue.

The Company’s success of the IMAX network is directly related to the availability and success of the IMAX remastered films,films and other filmscontent released to the IMAX network, as well as the continued purchase or lease of IMAX Systems and other support by exhibitors, for which there can be no guarantee.network.

An important factor affecting the Company’s growth and success of the IMAX network is the availability and strategic selection of filmscontent for IMAX locations and the box office performance of such films.content. The Company itself produces only a small numberamount of such filmscontent and, as a result, the Company relies principally on filmscontent produced by third-party filmmakerscontent and studios,creators, including both Hollywood and local language features converted into the Company’sIMAX format. In 2024,2025, 118126 films and other content (122 new IMAXfilms filmsand 4 re-releases) were released to the Company’s global network. There is no guarantee that filmmakerscontent and studioscreators will continue to release filmscontent to the IMAX network, or that the filmscontent selected for release to the IMAX network will be commercially successful.

The Company is directly impacted by the commercial success and global box office results of the films released to the IMAX network through its joint revenue sharing arrangements,JRSAs, as well as through the percentage of the box officeGBO receipts the Company receives from the studios releasing IMAX films, and the Company’s continued ability to secure films, find suitable partners for joint revenue sharing arrangements (“JRSA”) and to sell IMAX Systems. The commercial success of films released to IMAX locations depends on a number of factors outside of the Company’s control, including whether the film receives critical and consumer acclaim, the timing of its release, the success of the marketing efforts of the studio releasing the film, industry labor disputes, consumer preferences and trends in cinema attendance. Moreover, films can be subject to delays in production or changes in release schedule, which can negatively impact the number, timing and quality of IMAX films released to the Company’s global network.

In addition, as the Company’s international network has expanded, the Company has signed deals with studios in other countries to convert theirlocal language films to the Company’sIMAX’s format and release them to the IMAX network. The Company may be unable to select films which will be successful in international markets or may be unsuccessful in selecting the right mix of Hollywood and local language films for a particular country or region, notably Greater China, the Company’s largest market. Also, conflicts in international release schedules may make it difficult to release every IMAX film in certain markets.

The Company is undertaking brand extensions and new business initiatives. These initiatives represent potential new areas of growth for the Company and could include the offering of new products and services that may not be accepted by the market. The Company has recently explored initiatives in the field of in-home entertainment technology, whichincluding the development of the Company’s SCT business to bring The IMAX Experience to users across streaming platforms and consumer devices. The in-home entertainment industry is an intensely competitive business and which is dependent on consumer demand, over which the Company has no control. The Company ishas also exploringinvested newin technologiesthe toconnection connectof the IMAX network to facilitate bringing more unique content, including broadcasts of live events, to IMAX audiences andin totheaters. expandNew initiatives could also involve acquisitions or the Company’sformation streamingof andjoint consumer technology strategy. If any new brand extensionsventures and business initiatives in which the Company invests or attempts to develop does not progress as planned, the Company may be adversely affected by investment expenses that have not led to the anticipated results, by write-downs of its assets, by the distraction of management from its core business or by damage to its brand or reputation.alliances.

New initiatives could involve acquisitions or the formation of joint ventures and business alliances. For example, in September 2022, the Company acquired SSIMWAVE. Such transactions and arrangementsinitiatives involve significant challenges and risks, including that they may not advance the Company’s long-term business strategy, that the Company realizes an unsatisfactory return on its investments or fails to realize anticipated business synergies, that the Company has difficulty integrating or retaining new employees, systems, and technology, that the Company has disagreements with a relevant partner with respect to financing, management, and development, that the Company fails to identify or anticipate risks and liabilities of acquired companies in advance of acquisition, or that management gets distracted from the Company’s core business. Also, it may take longer than expected to realize the full benefits from these transactions and arrangementsinitiatives such as increased revenue or enhanced efficiencies, or the benefits may ultimately be smaller than the Company expected. If any new brand extensions and business initiatives in which the Company invests or attempts to develop do not progress as planned, the Company may be adversely affected by investment expenses that have not led to the anticipated results, including by the write-downs of its assets, by the distraction of management from its core business or by damage to its brand or reputation.

The nature of the Company’s business involves access to and storage of confidential and proprietary content and other information, including its own intellectual property and the intellectual property of certain movie studios or partners it may work with, as well as certain information regarding the Company’s customers, employees, licensees, and suppliers. Although the Company maintains robust procedures, internal policies and technological security measures intended to safeguard such content and information, as well as a cybersecurity insurance policy, the Company’s information technology systems, and the information technology systems of its current or future third-party vendors, collaborators, consultants and service providers, could be penetrated by internal or external parties intent on extracting information, corrupting information, stealing intellectual property or trade secrets, or disrupting business processes. Information security risks have increased in recent years because of the proliferation of new technologies and the increased sophistication and activities of perpetrators of cyber-attacks, including from emerging technologies, such as advanced forms of AI and quantum computing. The Company’s information technology infrastructure may be vulnerable to such attacks, including through the use of malware, software bugs, computer viruses, ransomware, social engineering, and denial of service. It is possible that suchSuch attacks could compromise the Company’s security measures or the security measures of parties with whomwhich the Company does business. Because the techniques that may be used to circumvent the Company’s safeguards change frequently and may be difficult to detect, the Company may be unable to anticipate any new techniques or implement sufficient preventive security measures. In addition, the Company’s sensitive, proprietary, or confidential information could be leaked, disclosed, or revealed as a result of or in connection with the Company’s employees’ or third-party vendors’ use of generative AI technologies. TheWhile the Company seeks to monitor such attempts and incidents and to prevent their recurrence through modificationsmonitoring and modifications, if needed, to the Company’s internal procedures and information technology infrastructureinfrastructure, and provides information security training and compliance program to its employees on an annual basis, but in some cases preventive action might not be successful. Moreover, the development and maintenance of these security measures may be costly and will require ongoing updates as technologies evolve and techniques to overcome the Company’s security measures become more sophisticated. Any such attack or unauthorized access could result in a disruption of the Company’s operations, the theft, unauthorized use or publication of confidential or proprietary information of the Company or its customers, employees, licensees or suppliers, a reduction of the revenues the Company is able to generate from its operations, damage to the Company’s brand and reputation, a loss of confidence in the security of the Company’s business and products, andor significant legal and financial exposure, each of which could potentially have an adverse effect on the Company’s business. Refer to Part 1, Item 1C, “Cybersecurity” for additional information.

In addition, a variety of laws and regulations at the international, national, and state level govern the Company’s collection, use, protection and processing of personal data. These laws, including but not limited to the General Data Protection Regulation andRegulation, the California Consumer Privacy RightsAct, Act,and China’s Personal Information Protection Law, are constantly evolving and may result in increasing regulatory oversight and public scrutiny in the future. The Company’s actual or perceived failure to comply with such laws and regulations could result in fines, investigations, enforcement actions, penalties, sanctions, claims for damages by affected individuals, andor damage to the Company’s reputation, among other negative consequences, any of which could have a material adverse effect on its financial performance.

A significant portion of the Company’s revenues and of the GBO generatedearned by the Company’s exhibitor customers and its revenues are generated from customers located outside the United States and Canada. Approximately 62%, 58%, 64%, and 62%64% of the Company’s revenues were derived outside of the United States and Canada in 2025, 2024, 2023, and 2022,2023, respectively. As of December 31, 2024,2025, approximately 84%72% of IMAX Systems in backlog were scheduled to be installed in international markets. The Company’s network spanned 9091 different countries as of December 31, 2024,2025, and the Company expects its international operations to continue to account for an increasingly significant portion of its future revenues. There are a number of risks associated with operating in international markets that could negatively affect the Company’s operations, sales and future growth prospects. These risksrisks, among others, include:

•reliance on local partners, including in connection with joint revenue sharing arrangementsJRSAs;

•difficulties in enforcing contractual rights; and

Additionally, global geopolitical tensions, such as the conflicts between Russia and Ukraine and in the Middle East,tensions and actions that governments take in response may adversely impact the Company’s ability to operate in such regions and/or result in global or regional economic downturns. For example, in response to the ongoing conflict between Russia and Ukraine, Canada, the United States,Ukraine and otherresponses countries in which the Company operatesthereto have imposed broad sanctions and other restrictive actions against governmental and other entities in Russia, which in turn havehad and may continue to have an adverse impact on the Company’s business and results of operations in affected regions.regions, In addition, inincluding the wake of the Russia-Ukraine conflict and resulting sanctions, major movie studios suspended the theatrical release of films in Russia and financial institutions halted transactions with Russian entities. The Company has notified its exhibitor clients in Russia that such sanctions and actions constitute a force majeure event under their system agreements, resulting in thecontinued suspension of the Company’s obligationsoperations thereunder.in the region. Given the uncertainty as to the scope, intensity, duration and outcome of geopolitical conflicts, it is difficult to predict the full extent of the adverse impact of geopolitical conflicts on the Company’s business and results of operations. Additionally, given the global nature of the Company’s operations, any protracted conflict or the broader macroeconomic impact of geopolitical conflicts and sanctions imposed in response thereto, have had and could continue to have an adverse impact on the Company’s business, results of operations, financial condition, and future performance (the Company has 11 systems in its backlog from Russia, the Confederation of Independent States (“CIS”) and Ukraine, and none from Israel) and may also magnify the impact of other risks described herein, including the risk of cybersecurity attacks, which may impact information technology systems unrelated to the conflict, or jeopardize critical infrastructure in jurisdictions where the Company operates.

While the Company has implemented policies, internal controls, and other measures reasonably designed to promote compliance with applicable laws and regulations related to doing business internationally, any violations of these laws and regulations, or even allegations of such a violation, could disrupt the Company’s operations and harm the Company’s business, financial condition and results of operations. In addition, changes in United States or Canadian foreign policy can present additional risks or uncertainties as the Company continues to expand its international operations. Opening and operating theaters in markets that have experienced geopolitical or sociopolitical unrest or controversy, including through partnerships with local entities, exposes the Company to the risks listed above, as well as additional risks of operating in a volatile region. Such risks may negatively impact the Company’s business operations in such regions and may also harm the Company’s brand. Moreover, a deterioration of the diplomatic relations between the United States or Canada and a given country may impede the Company’s ability to conduct business in such countries and have a negative impact on the Company’s financial condition and future growth prospects.

As of December 31, 2024,2025, the Company had 809810 IMAX Systems operating in Greater China with an additional 237215 systems in backlog, which represent 54%50% of the Company’s current backlog. Of the IMAX Systems currently scheduled to be installed in Greater China, 78%82% are under joint revenue sharing arrangements,JRSAs, which further increases the Company’s ongoing exposure to box office performance in this market.

The China market faces a number of risks, including a continued slow recovery from the COVID-19 pandemic, changes in laws and regulations, currency fluctuations, increased competition, and changes in economic conditions, including the risk of an economic downturn or recession, trade embargoes, restrictions or other barriers, as well as other conditions that may impact the Company’s exhibitor and studio partners, and consumer spending. TheA market’sslowdown slowof recoveryChina’s fromeconomic thegrowth pandemicin recent years has caused some exhibitors in Mainland China, including several of the Company’s exhibitor partners, to experience financial difficulties which, in certain cases, has resulted in delays in meeting payment and IMAX System installation obligations to the Company.Company and permanent closure of underperforming theaters. There are no guarantees that such financial difficulties will not continue, or that partner delays or failures to meet contractual obligations will not occur in the future, adversely impacting the Company’s future revenues and cash flows.

The Company does not believe that it is currently required to obtain any permission or approval from the China Securities Regulatory Commission, the Cyberspace Administration of China or any other regulatory authority in the People’s Republic of China (“PRC”) for its operations, but there can be no assurance that such permissions or approvals would not be required in the future and, if required, that they would be granted in a timely manner, on acceptable terms, or at all. Furthermore, PRC regulators, including the Cyberspace Administration of China, the Ministry of Industry and Information Technology, and the Ministry of Public Security, have been increasingly focused on the regulation inof data security and data protection. Regulatory requirements concerning data protection and cybersecurity, as well as other requirements concerning operations of foreign businesses, in the PRC are evolving, and their enactment timetable, interpretation and implementation involve significant uncertainties. To the extent any additional PRC laws and regulations become applicable to the Company, it may be subject to increased risks and uncertainties associated with the legal system in the PRC, including with respect to the enforcement of laws and the possibility of changes of rules and regulations with little or no advance notice.

PoliticalOngoing political tensions and/or trade wars between China and the United States or Canada could exacerbate any or all of these risks,risks. Although the United States and adverseChina reached a reported trade truce in October 2025, the agreement is only for one year, and it leaves many issues unresolved, resulting in continued uncertainty over the trade relationship. Adverse developments in anythe ofU.S.-China theserelationship areascould heighten the foregoing risks, could impact the Company’s future revenuesnet income and cash flows and could cause the Company to fail to achieve anticipated growth in MainlandChina China.and/or monetize its current assets.

A substantial portionmajority of the Company’s revenues is denominated in U.S. Dollars,Dollars while a substantial portion of its expenses is denominated in Canadian Dollars. The Company also generates revenues in Chinese Renminbi, Euros and Japanese Yen. While the Company periodically enters into forward contractsseeks to hedge a portion ofmanage its exposure to foreign exchange rate fluctuationsrisks betweenthrough its regular operating and financing activities and, when appropriate, through the U.S.use andof thederivative Canadianfinancial Dollar,instruments, the Company may not be successful in reducing its exposure to these fluctuations. The use of derivative contractsfinancial instruments is intended to mitigate or reduce transactional level volatility in the results of foreign operations, but does not completely eliminate volatility. Even in jurisdictions in which the Company does not accept local currency or requires minimum payments in U.S. Dollars, significant local currency issues may impact the profitability of the Company’s arrangements with its customers, which ultimately affect the ability to negotiate cost-effective arrangements and, therefore, the Company’s results of operations. In addition, because IMAX films generate box office revenue in 90 different countries, unfavorable exchange rates between applicable local currencies and the U.S. Dollar could affect the GBO generated by exhibitors and the Company’s reported revenues, further impacting the Company’s results of operations.

The Company’s primary customers are commercial multiplex exhibitors. Since 2016, the commercial exhibition industry has undergone significant consolidation,consolidation includingboth AMC’s acquisition of Carmike Cinemasdomestically and Odeon,internationally. whichFor includesexample, Nordicin 2025, South Korea’s Megabox and Cineworld’sLotte acquisitionCinema ofentered Regal.into a merger agreement and are expected to form that nation’s largest theatrical exhibition entity. Exhibitor concentration has resulted in certain exhibitor chains constituting a material portion of the Company’s network and revenue. For instance, Wanda Film (“Wanda”) is the Company’s largest exhibitor customer, representing approximately 9%8% of the Company’s total revenues in 2024.2025. As of December 31, 2024,2025, through the Company’s partnership with Wanda, there were 384393 IMAX Systems operational in Greater China and Wanda represented approximately 21% of the global network and 12%10% of the Company’s global backlog. The share of the Company’s revenue that is generated by Wanda is expected to continue to grow as the number of IMAX Systems in backlog with Wanda are opened. No assurance can be given that significant customerscustomers, such as WandaWanda, will continue to purchase IMAX Systems and/or enter into joint revenue sharing arrangementsJRSA with the Company and if so, whether contractual terms will be affected. If the Company does business with Wanda or other large exhibitor chains less frequently or on less favorable terms than currently, the Company’s business, financial condition or results of operations may be adversely affected. In addition, an adverse economic impact on a significant customer’s business operations could have a corresponding material adverse effect on the Company.

The Company also receives revenues from studios releasing IMAX films. Hollywood studios have also experienced and continue to experience consolidation, as evidenced by Disney’s acquisition of certain studio assets from Twenty First Century Fox in 2019 and the expected2025 acquisition of Paramount by Skydance.Skydance and a potential acquisition of Warner Bros. Studio consolidation could result in individual studios comprising a greater percentage of the Company’s film slatebusiness and overall IMAXContent FilmSolutions Remasteringsegment revenue, and could expose the Company to the same risks described above in connection with exhibitor consolidation. In addition, studio consolidation may lead to a reduction in content variety and overall output and/or theatrical release of content, particularly if a studio acquirer is not in the traditional studio production business. Such reduction may adversely impact the availability of films for conversion into the IMAX format and distribution into the IMAX network.

In order to keep pace with changes and advancements in technology and in order to continue to provide an experience that is premium to and differentiated from conventional entertainment experiences, the Company has made, and expects to continue to make, significant investments in technology in the form of research and development and the acquisition of third-party intellectual property and/or proprietary technology. A significant portion of the Company’s research and development efforts have been focused on the IMAX Laser Systems and film cameras. The Company intendscontinues to continueinvest researchin other projects, including the development of new SCT product offerings and developmentimprovements to further evolve its end-to-endexisting technology.product Within the Company’s Streaming and Consumer Technology business, there is ongoing research and development in perceptual metrics including novel measurement and optimization techniques.suite. The process of developing new technologies is inherently uncertain and subject to certain factors that are outside of the Company’s control, including reliance on third-party partners and suppliers, and the Company can provide no assurance its investments will result in commercially viable advancements to the Company’s existing products or in commercially successful new products, or that any such advancements or products will improve upon existing technology or will be developed within the timeframe expected.

Artificial intelligenceAI technologies and their uses are currently undergoing rapid change. If the Company fails to enhance its current AI products and develop new products in response to changes in technology or industry standards, or the Company fails to bring product enhancements or new product developments to market quickly enough, or the Company fails to respond to increasing competition from AI-generated content (e.g., AI-created videos or movies), the Company’s AI-enabled products could rapidly become less competitive or obsolete.

The entertainment industry is very competitive. The Company faces competition in both inin-home the form of technological advances in in- home entertainment, as well as those withinand out-of-home entertainment, including within the theater-goingtheatrical experience.space. For example, according to research conducted by Omdia, there were approximately 39,00035,000 conventional-sized screens in North American commercial multiplexes in 2023.2024. In addition, exhibitors and entertainment technology companies have introduced their own branded, large-screen 3D auditoriums or other proprietarypremium theater systems, such as CJ CGV’s 4DX and ScreenX, and in many cases, have marketed those auditoriums or theater systems as having similar quality or attributes as an IMAX System. The Companyrising competesconsumer withinterest entertainmentin premium cinematic experiences has resulted in demand for premium formats and mediacould companiesdrive withmore newinvestment technologiesinto and/orthe substantiallyCompany’s greatercompetitors. capitalIf resources to develop and support them. Thethe Company may beis unable to continue to produce theater systems or provide experiences which are premium to, or differentiated from, other theater systems or entertainment experiences, respectively.respectively, consumers may be unwilling to pay the price premiums associated with the cost of IMAX tickets and the global box office performance of IMAX films could decline. The declining global box office performance of IMAX films could materially and adversely harm the Company’s business and prospects. Furthermore, many of the Company’s commercial exhibitor customers are reliant on the availability of retail shopping malls at physical locations,malls, which compete with other forms of retailing such as online retail websites, and have been and may continue to be adversely affected by the changes in the retail shopping landscape and consumer purchasing patterns. In return, theThe Company may in turn be adversely affected by the challenges faced by its exhibitor customers.

As noted above, theThe Company also faces in-home competition from a number of alternative motion picturecontent distribution channels such as home video, streaming services, video-on-demand, internet, and broadcast and cable television. The average exclusive theatrical release window for Hollywood titlesfilms has decreased over the years, and there can be no assurance that this release window, which is determined by the movie studios, will not shrink furtherfurther, which could have an adverse impact on the Company’s business and results of operations. In addition, as a result of the COVID-19 pandemic and related movie theater closures, in 2020 and 2021, a number of films were released directly or concurrently to streaming services the same day as to theaters. Most major film studios have since recommitted to exclusive theatrical releases for blockbuster movies. However,Furthermore, there can be no assurance that film studios will not increase the direct or concurrent release of films to streaming services will not resume or increase in the future, intensifying in-home competition. Several streaming services release original films directly to subscribers, bypassing theatrical distribution. The Company further competes for the public’s leisure time and disposable income with other forms of entertainment, including gaming, sporting events, concerts, live theater, social media, and restaurants. Furthermore, the Company competes with entertainment and media companies with new technologies and/or substantially greater capital resources to develop and support them.

The Company depends on its proprietary knowledge regarding IMAX Systems including digitaldigital, audio, and film technology, video quality assessment and image enhancement.technology. The Company relies principally upon a combination of copyright, trademark, patent and trade secret laws, restrictions on disclosures and contractual provisions to protect its proprietary and intellectual property rights. These laws and procedures may not be adequate to prevent unauthorized parties from attempting to copy or otherwise obtain the Company’s processes and technology or deter others from developing similar processes or technology, which could weaken the Company’s competitive position and require the Company to incur costs to secure enforcement of its intellectual property rights. The protection provided to the Company’s proprietary technology by the laws of foreign jurisdictions may not protect it as fully as the laws of Canada or the United States. The lack of protection afforded to intellectual property rights in certain international jurisdictions may be increasingly problematic given the extent to which the future growth of the Company is anticipated to come from foreign jurisdictions. The Company may develop proprietary technology or knowledge, including AI-generated works, that are not entitled to intellectual property protection. Finally, some of the underlying technologies of the Company’s products and system components are not covered by patents or patent applications.

Any claims or litigation initiated by the Company to protect its proprietary technology or other intellectual property could be time consuming, costly, and divert the attention of its technical and management resources. If the Company chooses to go to court to stop a third party from infringing its intellectual property, that third party may ask the court to rule that the Company’s intellectual property rights are invalid and/or should not be enforced against that third party.

IMAX Corporation (“IMAX”) is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, awe-inspiring immersive content experiences for which the IMAX® brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films. T The CompanyCompany’s leveragesglobal itscontent proprietaryportfolio technologyincludes blockbuster films, both from Hollywood and engineeringlocal inlanguage allfilm aspectsindustries ofworldwide; itsIMAX business,documentaries, whichboth principally consists of the digital remastering of filmsoriginal and other content into the IMAX format for distribution across the IMAX networkacquired (“IMAX Film RemasteringDocumentaries”); and the sale or lease of premium IMAX theaterevents systemsand (“IMAXexperiences System(s)”).in emerging verticals, including music, gaming, and sports.

IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of December 31, 2024,2025, there were 1,8071,864 IMAX Systems operating in 90locations in 91 countries and territories, including 1,7351,796 commercial multiplexes, 1110 commercial destinations, and 6158 institutional locations in the Company’s global network. This compares to 1,7721,807 IMAX Systems operating in 90 countries and territories as of December 31, 2023,2024, including 1,6931,735 commercial multiplexes, 1211 commercial destinations, and 6761 institutional locations in the Company’s global network. Additional information on the composition of the IMAX network is provided in the discussion of “Marketing and Customers” in Part I, Item 1.

•large screens and proprietary auditorium geometry, which result in a substantially larger field of view than conventional theater systems so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images;

•advanced sound system components, which deliver more expansive sound imagery than conventional theater systems and pinpointed origination of sound to any specific spot in an auditorium equipped with an IMAX System;

•specialized theater acoustics, which result in a four-fold reduction in background noise thancompared to conventional cinema experiences;

•ongoing maintenance and extended warranty services to ensure a consistent image and sound quality presentation across the IMAX global network ; and

The Company believes that thesethe componentsbenefits causerelated 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.

As a result of the engineering and scientific achievements that are a hallmark of The IMAX Experience,Experience®, the Company’s exhibitor customers typically charge a premium for films released in IMAX’s format versus films exhibited in their other auditoriums. The premium pricing, combined with the higher attendance levels associated with IMAX films, tends to generategenerates incremental box office receipts (“global box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network. The incremental global box office generated by IMAX films combined with IMAX’s leading global network footprint and scale has helped establish IMAX as a key premium distribution and marketing platform for Hollywood and foreign local language movie studios.

As a premier global technology platform for entertainment and events, theThe Company strives to remain at the forefront of advancements in technology. The Company offers a suite of laser-based digital projection systems (“IMAX Laser Systems”), which deliver increased resolution, sharper and brighter images, deeper contrast, and the widest range of colors available to filmmakers today. The Company further believes that its suite of IMAX Laser Systems is helping facilitate the next major renewal and upgrade cycle for the global IMAX network.

The Company utilizes AI tools and technology across its products and business operations. Within its products, AI is used for purposes such as image enhancement,enhancement and video streaming technology,optimization. In its business operations, the Company employs AI in various functions, including research, data analysis, marketing, theater operations, slate programming, and datageneral analysisproductivity to improve various aspects of its business.improvements. It is actively exploring other global use cases for AI to improve its products, operations, and efficiency.

The Content Solutions segment earns revenue principally from studiosFilm andRemastering, other content creators forincluding the digital remasteringdistribution of films and otherthis content into IMAX formats for distribution across the IMAX global network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiencesexperiences, including music, gaming, and sports,sports to commercial IMAX theaters, as well as the provision of film post-production services.

IMAX Film Remastering is a proprietary technology that digitally remasters films and other content into IMAX formats for distribution across the IMAX network. In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the box office receipts from a movie studio in exchange for converting a commercial film into the IMAX format and distributing it through the IMAX network. The fee earned by the Company in a typical IMAX Film Remastering and distribution arrangement averages approximately 12.5% of box office receiptson (i.e.,a gross boxbasis office (“GBO”) less applicablebefore sales taxes), except for within Greater China, where the Company often receives a lower percentage of net box office receipts for certain Hollywood films due to an importincremental tax.importation fee paid by the studios. All of the Company’s box office results in this Form 10-K are inclusive of China booking fees to be consistent with market reporting of global box office.

IMAX films also benefit from enhancements made by individual filmmakers exclusively for the IMAX release of the film. Collectively, the Company refers to these enhancements as “IMAX DNA.” Filmmakers and movie studios increasingly seek to infuse more IMAX DNA in theatrical releases to realize a filmmaker’s creative vision more fully, while generating interest and excitement among moviegoers. Such enhancements include shooting films with IMAX cameras to increase the audience’s immersion in the film and to take advantage of the unique dimensions of the IMAX screen by projecting the film in a larger aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen versus a conventional screen. In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, delivering up to 67% more image.image The Company hasonto a Filmedstandard Forconventional IMAX®movie program for select films under which filmmakers craft films from their inception in numerous ways to optimize The IMAX Experience. The program includes incremental and bespoke marketing support, which box office metrics demonstrate audiences respond extremely favorably to, and drives a higher market share for IMAX.screen.

Management believes that growth in internationalglobal 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 China, Japan, India, France, and South Korea. 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. In 2025, local language films exhibited across the Company’s global network generated $405.4 million in global box office, representing 32% of the Company’s total global box office, including the Chinese local language film, Ne Zha 2, which became the highest grossing IMAX release of all time in China, and Japanese local language film, Demon Slayer: Infinity Castle, which became the highest grossing IMAX release of all time in Japan.

To date, in 2025,2026, 21 titles have been released to the global IMAX network, including threetwo titles with IMAX DNA, and the Company has announced the following additional 3130 titles to be released in 20252026:

The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network throughout 2025. The Company has announced that a record number of at least 12 Filmed for IMAX titles will be released in 2025. The Company’s Hollywood film slate beyond 2025 has started to fill in including major films such as: Avengers: Doomsday, The Mandalorian and Grogu, Toy Story 5, The Odyssey, Narnia, Moana, Supergirl Woman of Tomorrow, Avengers: Secret Wars, The Batman 2, Frozen 3, and Dynamic Duo.2026.

The Company distributes large-format documentary feature films through its global commercial network and institutional theaters. Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater box office receipts and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues.

The Company continues to believebelieves that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company. As of December 31, 2024,2025, the Company had distribution rights with respect to approximately 6275 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of December 31, 2024,2025, the Company hadwas a footprint of 265 connected locations in the IMAX network across the United States, Canada, Europe, Africa, Australia, and Asia configured with connectivityable to deliver live and interactive events with low latency and superior sight and sound. Furthermore, the Company used its live streaming technologies to deliverover events to an additional 166400 locations around the world in 2024.worldwide.

Sales and Sales-Type Lease Arrangements

The Company also provides IMAX Systems to exhibitors through joint revenue sharing arrangements (“JRSA”).JRSAs. Under the traditional form of these arrangements, the Company provides the IMAX System under a long-term lease in which the Company assumes the majority of the equipment and installation costs. In exchange for its upfront investment, the Company, primarily,generally, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments. Rental payments from the customer are required throughout the term of the arrangement and are typically due either monthly or quarterly. The Company retains title to the IMAX System equipment components throughout the lease term, and the equipment is returned to the Company at the conclusion of the arrangement.

Under most JRSAs (both traditional and hybrid), the initial non-cancellable term is 10 years or longer and is renewable by the customer for one to two additional terms of between three to five years. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The contracts are non-cancellable by the customer unless the Company fails to perform its material obligations.

The revenue earned from customers under the Company’s JRSAJRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive global box office levelslevels. including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, sizesize. and management of the theater and other factors specific to individual arrangements.

IMAX System arrangements also include a requirement for the Company to provide maintenance services over the life of the arrangement in exchange for an extended warranty and annual maintenance fee paid by the exhibitor. Under these arrangements, the Company provides preventative and emergency maintenance services to ensure that each presentation is up to the highest IMAX quality standard.standards. Annual maintenance fees are paid throughout the duration of the term of the system agreements.

A significant portion of the Company’s revenues and of the GBO earned by the Company’s exhibitor customers are generated outside the United States and Canada. Approximately 62%, 58%, and 64% of the Company’s revenues were derived outside of the United States and Canada in 2025, 2024, and 2023, respectively. As of MarchJune 31,30, 2026, 73% of IMAX Systems in backlog were scheduled to be installed in international markets. The Company’s network spanned 91 different countries as of MarchJune 31,30, 2026, and the Company expects its international operations to continue to account for an increasingly significant portion of its future revenues. There are a number of risks associated with operating in international markets that could negatively affect the Company’s operations, sales and future growth prospects. These risks, among others, include:

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 and six months ended MarchJune 31,30, 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 MarchJune 31,30, 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 threesix months ended MarchJune 31,30, 2026, net income attributable to IMAX China was $6.4$8.1 million, of which $4.6$5.8 million was attributable to the shareholders of the Company (2025 — $20.4$23.7 million and $14.6$17.0 million, respectively).

Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws. Words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “improve,if,” “improvement,” “likely,” “may,” “plan,” “possibility,” “potential,” “project,” “projection,” “prospect,” “remain,” “runway,” “scheduled,” “seek,” “strategy,” “subject to,” “target,” “upcoming,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statementstatements and information. These forward-looking statements and information include, but are not limited to, statements regarding the Company’s business and technology strategies and measures to implement such strategies, including with respect to its brand extensions and re-positionings and new business initiatives; the Company’s competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for expansion and growth of business, networks, operations and technology; future cash flow and revenue realization; capital allocation, including the amount and nature of future capital expenditures and the sufficiency of capital and liquidity to fund the Company’s anticipated operating needs; the Company’s capital structure, including the incurrence and repayment of debt and the impact of its restrictive debt covenants on operating and financial flexibility; anticipated contributions to pension and postretirement benefit plans; the Company’s technological capabilities and the differentiation thereof, including with respect to artificial intelligence (“AI”); the Company’s ability to enhance its brand equity and brand awareness and the benefits thereof; industry prospects and developments and shifts in consumer behavior; the Company’s upcoming film slate and content pipeline, including the timing and performance thereof; and plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results.

These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to: risks associated with the Company’s investments, operations and future expansion in foreign jurisdictions, including the impact of economic, political and regulatory policies and laws of the United States, Canada, and China, tariffs and other trade regulations, and economic and trade tensions, trade wars, and geopolitical conflicts; risks related to the Company’s growth and operations in China, including industry conditions affecting both the Company and its partners; the ability of the Company’s exhibitor customers to fulfill their contractual payment obligations; risks related to the Company’s ability to attract and retain its employee population or the loss of the Company’s key personnel; the performance of IMAX remastered films and other films released to the IMAX network; conditions, changes and developments in the commercial exhibition industry; the Company’s ability to enter into new IMAX theater system agreements and sales and lease agreements and the effects thereof ; fluctuations in operating results and cash flow ; currency fluctuations and foreign exchange controls; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the ability of the Company to respond to change and advancements in technology, including with respect to AI products and AI-generated content; the potential impacts of consolidation among commercial exhibitors and studios; success of brand extensions and new business initiatives; conditions and competition in the in-home (including streaming) and out-of-home entertainment industries; the Company’s ability to identify and pursue new business opportunities (or lack thereof); cybersecurity and data privacy incidents; the Company’s ability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; effects of environmental laws and regulations, including with respect to climate change; weather conditions and natural disasters that may disrupt or harm the Company’s business; effects of the Company’s indebtedness on its cash flow and business activities and the Company’s ability to comply with its debt agreements; general economic, market or business conditions; sustained inflationary pressure; political, economic and social instability and the resulting disruptions to the Company’s operations or supply chain; the Company’s ability to convert system backlog into revenue and cash flows; accuracy of assumptions underlying goodwill impairment assessment and fair value measurements; changes in laws, regulations or accounting principles; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the United States Securities and Exchange Commission (the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this quarterly report are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. The forward-looking statements herein are made only as of the date hereof and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of MarchJune 31,30, 2026, there were 1,8651,876 IMAX Systems operating in locations in 91 countries and territories, including 1,7981,809 commercial multiplexes, 10 commercial destinations, and 57 institutional locations in the Company’s global network. This compares to 1,8101,821 IMAX Systems operating in locations in 89 countries and territories as of MarchJune 31,30, 2025, including 1,7381,750 commercial multiplexes, 11 commercial destinations, and 6160 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.)

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 “Sources of Revenue—IMAX Film Remastering and Distribution” below.

The Company achieved global box office of $260$544.5 million in the first quarterhalf of 2026. The Company’s first quarterhalf global box office was derived from 3463 new pieces of content distributed across its global network. The first quarterhalf 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. 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 1734 releases across 911 countries,countries and territories, including afirst firsttime releases in Brazil and Taiwan, withChina. The total first quarterhalf local language box office ofwas $62$81 million (or 24%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 quarterhalf of 2026, the Company’s trailing twelve month domestic box office market share was 5.4%5.2% and global market share was 3.8%.3.7%. See “Results of Operations” below for a discussion of the Company’s first2026 quarterthree 2026and six months results as compared to the prior year period.periods.

Filmed For IMAX is IMAX’s filmmaker partnership program. Filmmakers who participate in the program leverage IMAX technology throughout the production process to deliver a movie that is meant to be seen in an IMAX location. From pre-production through to release, the Company works closely with filmmakers to maximize The IMAX Experience for audiences. Filmed For IMAX movies are shot using either an IMAX certified digital camera or an IMAX film camera, with the IMAX Post-Production team working closely with the filmmaker from camera testing before the shoot begins, to on-set support, to test screenings, and post-production. Most Filmed For IMAX movies leverage IMAX’s exclusive expanded aspect ratio for select sequences and, occasionally, the entire film, and benefit from unique marketing support. The global box office metrics have demonstrated audiences respond extremely favorably to Filmed For IMAX titles, resulting in a higher market share for IMAX. In the first quarterhalf of 2026, Filmed For IMAX titles on average indexed overapproximately 14%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, France, India, and South Korea, and France.Korea. 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 threesix months ended MarchJune 31,30, 2026, local language films exhibited across the Company’s global network generated $62$81 million in box office, representing 24%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 MarchJune 31,30, 2026 and 2025:

In addition to the 3163 IMAX new films and other content experiences released on the Company’s global network during the threesix months ended MarchJune 31,30, 2026, the Company has announced the following 3432 new films and other content experiences for release in the remainder of 2026:

The Company believes that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company. As of MarchJune 31,30, 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,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 MarchJune 31,30, 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 threesix months ended MarchJune 31,30, 2026, the Company partnered with Neonvarious Ratedstudios and Universal Picturesdistributors on a number of alternative content releases and exclusive events. These included the releasereleases of EPiC: Elvis Presley in Concert.Concert The(Neon Company also partnered with Bleecker StreetRated and Universal Pictures for the release of), Stray Kids: The dominATE Experience,Experience (Bleecker Street and withUniversal Trafalgar for release ofPictures), Twenty One Pilots: More Than We Ever Imagined.Imagined In(Trafalgar addition, the Company partnered with Mercury Studios for a two-night-only screening ofReleasing), Eric Church: Evangeline vs. The Machine Comes Alive,Alive and(Mercury with Sony Pictures for the two-night-only screening ofStudios), TOMMY in IMAX (50th Anniversary). The(Sony CompanyPictures), also partnered with A24 for aand limited releasereleases of Marty Supreme across approximately 150 IMAX locations in the United States, Australia,(A24) and NewMemento Zealand.(China InFilm MarchGroup). 2026, theThe Company partnered with MGM Studios forin anMarch 2026 and Universal Pictures in June 2026 to present exclusive Q&A livestreamlivestreams in advance of the screeningscreenings of Project Hail Mary and Disclosure Day, respectively, across a limited numberselect 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 also provides IMAX Systems to exhibitors through joint revenue sharing arrangements (“JRSA(s)”). Under the traditional form of these arrangements, the Company provides the IMAX System under a long-term lease in which the Company assumes the majority of the equipment and installation costs. In exchange for its upfront investment, the Company, generally, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments. Rental payments from the customer are required throughout the term of the arrangement and are typically due either monthly or quarterly. The Company retains title to the IMAX System equipment components throughout the lease term, and the equipment is returned to the Company at the conclusion of the arrangement.

JRSAs have been an important factor in the expansion of the Company’s commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. As of MarchJune 31,30, 2026, the Company had 881 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 255187 IMAX systems under JRSAs as of MarchJune 31,30, 2026, including 14988 new locations and 10699 upgrades to existing locations.

3.Device Certification & Calibration: Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks. It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows are maintained faithfully and experienced as intended on consumer devices.devices, including but not limited to TVs, soundbars, automotive, and other device segments. As of MarchJune 31,30, 2026, IMAX Enhanced certified devices in-market are with partners including Goer Dynamics, Sony Electronics, Hisense, TCL, LG, and Philips.

All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and merchandising revenue.revenue including IMAX branded merchandise and cooperative merchandising with studios.

The following table provides detailed information about the IMAX network by type and geographic location as of MarchJune 31,30, 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.

IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 locations, of which there are 1,7981,809 IMAX Systems operating as of MarchJune 31,30, 2026, representing a market penetration of only 40%.41%. The Company believes that the majority of its future growth will come from international markets. As of MarchJune 31,30, 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 MarchJune 31,30, 2026 and 2025:

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of MarchJune 31,30, 2026 and 2025:

As of MarchJune 31,30, 2026, 73% of IMAX System arrangements in backlog were scheduled to be installed in international markets (2025 — 74%).

The following tables provide detailed information about IMAX System signings and installations for the three and six months ended MarchJune 31,30, 2026 and 2025:

The Company’s results for the first quarterhalf 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. Domestic and other international markets experienced strong box office growth, driven by the performance of Hollywood titles and Filmed For IMAX releases. The Company’s future results may continue to be affected by the timing and performance of major film releases, the mix of Hollywood and local language content, and the geographic concentration of box office revenues, as well as by variability in system installations and box office-driven revenues. In addition, broader macroeconomic conditions, including global economic uncertainty, supply chain disruptions, inflationary pressures and geopolitical tensions and conflicts, could adversely impact consumer demand and the Company’s ability to deliver and install IMAX systems, any of which could materially affect the Company’s financial condition and results of operations.

Results of Operations for the Three Months Ended MarchJune 31,30, 2026 and 2025

The following table presents the Company’s net income attributable to common shareholders and thenet associatedincome 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 MarchJune 31,30, 2026 and 2025:

For the three months ended MarchJune 31,30, 2026, the Company’s revenues and gross margin were $81.4$102.8 million and $45.8$62.9 million, respectively. In comparison to the prior year firstsecond quarter, the Company’s revenues and gross margin decreasedincreased by $5.3$11.2 million, or 6%,12%, and $7.4$9.3 million, or 14%,17%, respectively, principally due to lowera higher number of IMAX system installations under sales type arrangements and stronger IMAX box office performance inacross Greaterrest China,of whichworld moremarkets thanof offset the growth in the domestic and other international markets.24%.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the three months ended MarchJune 31,30, 2026 and 2025:

For the three months ended MarchJune 31,30, 2026, Content Solutions segment revenues and gross margin decreasedincreased by $2.9$0.7 million, or 8%,2%, and decreased by $5.2$0.5 million, or 22%,2%, respectively, when compared to the same period in 2025.

In the threesecond monthsquarter ended March 31,of 2026, box office generated by IMAX films totaled $259.6$284.8 million, a $38.5$3.8 million, or 13%,1% decreaseincrease versus the prior year comparative period of $298.2$281.1 million. This decrease was primarily driven by lower local language box office inIn the firstsecond 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 3435 films (32 new films and otherthree content (31 new films, two re-releases, and one carry-overre-releases), including the following Hollywood titles: Avatar: Fire and AshMichael ($77$69 million), ProjectThe HailMandalorian Mary& Grogu ($66 million), Scream 7 ($8$42 million), and WutheringThe HeightsSuper Mario Galaxy Movie ($7$39 million). In addition,Furthermore, in the threesecond monthsquarter ended March 31,of 2026, local language films exhibited across the Company’s global network generated $62$18.7 million in box office, representing 24%7% of its global box office,office including the ChineseJapanese local language film, PegasusDetective 3Conan: ($34Fallen million) and BladesAngel of the GuardiansHighway ($7$5 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 threesecond monthsquarter ended March 31,of 2026, the Company released fourthree movies that were filmed with IMAX proprietary cameras (Filmed For IMAX),: includingMortal Mercy,Kombat II, The Bride!,Mandalorian Project& Hail Mary,Grogu and the IMAX documentary Athos.Supergirl. Filmed For IMAX movies historically have performed disproportionately well at the box office, and for three of these films,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 MarchJune 31,30, 2026, gross margin percent was 58%63% compared to 69%66% in the prior year period. The Contentdecrease Solutionsin gross margin declinereflects wasthe driven by a combinationmix of factorsIMAX including;box loweroffice, amount of marketing spend and level of 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.outperformance.

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs,JRSAs for whichas revenue is recognized over the lease term, during the three months ended MarchJune 31,30, 2026 and 2025:

In the three months ended MarchJune 31,30, 2026, one IMAX System was relocated from its original location (2025 ― no IMAX Systems were relocated from their original locations (2025 ― three IMAX Systems). When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is usuallytypically lesslower than the amount earned for a new sale.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 MarchJune 31,30, 2026, gross margin percent was 56%60% compared to 57% in the same period54% in the prior year,period, which primarily reflects the lower levelimpact of rentalhigher revenuesvariable offsetconsideration partially by the impact ofestimates, amendments, renewals and other adjustments as described above, which did not have associated costs.above.

For the three months ended MarchJune 31,30, 2026, All Other revenue and gross margin decreasedincreased by $0.2$1.3 million,million and less than $0.1$1.0 million, respectively, when compared to the same period in 2025, which principally reflects the results of the Company’s SCT business whichexpansion wasof re-positionedofferings to Goer Dynamics Group Co., Ltd. (“Goer Dynamics”) under an automotive consumer device partnership, following the re-positioning and relaunchedrelaunch in late 2025 under the brand of IMAX Enhanced.Enhanced, and increased sales of the Company’s merchandise.

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended MarchJune 31,30, 2026 and 2025:

For the second quarter of 2026, the lower level of Selling, General and Administrative Expenses decreasedyear-over-year period over period, reflectingreflects management’s continued focus on operational efficiencies, including the impact of prior workforce reductions, and a shift in timing of annual corporate events and other costexpenses. disciplineAdditionally, initiatives.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.

For the three months ended MarchJune 31,30, 2026, Research and Development expenses were $1.8$1.7 million, representing an increase of $0.5$0.2 million,million or 37%,13%, when compared to Research and Development expenses of $1.3$1.5 million during the same period in the prior year. The increase year-over-year was primarily driven by the capitalization of film camera costs in 2025 in accordance with the achievement of technological feasibility in 2024. The Company continues to expense its investment in other projects, including in the development of new product offeringsofferings, data and software projects and improvements to its existing IMAX System product suite.

Credit Loss Reversal,Expense (Reversal), Net

For the three months ended MarchJune 31,30, 2026, the Company recorded a credit loss reversalexpense of $0.5$1.5 million, as compared to $0.1a credit loss reversal of $0.2 million recognized 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 a notable improvement inconsistent 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.