IMAX Q3 Earnings Surpass Expectations, Revenues Increase Y/Y

Core Insights - IMAX Corporation reported third-quarter 2025 adjusted earnings of 47 cents per share, exceeding the Zacks Consensus Estimate by 23.68% and increasing 34.3% year over year [1][10] - Total revenues reached $106.7 million, surpassing the Zacks Consensus Estimate by 3.16% and growing 16.6% year over year [1][10] Revenue Breakdown - Technology Sales decreased 26.4% year over year to $19.4 million, while Image Enhancement & Maintenance Services, Technology Rentals, and Finance Income increased by 30.2%, 44.8%, and 37.2% to $61 million, $23.3 million, and $2.9 million, respectively [2] - Content Solutions revenues surged 49% year over year to $44.8 million, with a record gross margin of 71%, expanding 1,600 basis points from 55% in the third quarter of 2024 [4] Box Office Performance - The third quarter box office, including booking fees in China, reached $368 million, a 50% increase year over year [5] - "F1: The Movie" became the highest-grossing Hollywood release of the year with $97 million worldwide, while "Demon Slayer: Infinity Castle" became IMAX's biggest Japanese film with $73 million to date [5] Technology Products and Services - System Sales were $19.4 million, down 7.4% year over year, while System Rental revenues increased 34.4% to $23.3 million [6] - Maintenance revenues rose 5.4% to $16.7 million, and Finance Income revenues increased 24.4% to $2.9 million [6] Network Growth - IMAX installed 38 systems in the third quarter of 2025, compared to 49 systems in the same quarter of 2024, bringing the total to approximately 100 system installations [7] - As of September 30, 2025, IMAX operated 1,829 systems across 89 countries, with a market penetration of 48% in a worldwide commercial multiplex addressable market of 3,619 locations [8][9] Financial Performance - Gross margin expanded 740 basis points to 63.1%, with adjusted EBITDA up 35% year over year [10][13] - Operating income surged 50% year over year to $29 million, driven by strong box office performance and margin expansion [14] Cash Flow and Liquidity - Net cash provided by operating activities reached $67.5 million, up more than 90% year over year [14] - As of September 30, 2025, available liquidity was $544 million, including $143 million in cash and cash equivalents [16] Future Guidance - IMAX expects to achieve a record box office of over $1.2 billion in 2025, with system installations projected between 150 to 160 [21] - Upcoming fourth-quarter releases include major titles such as "Avatar: Fire and Ash" and "Wicked: For Good" [22] Upcoming Releases - For 2026, IMAX highlighted significant upcoming films including "The Odyssey," "Narnia," and "Dune: Part Three" [23]