IMAX on pace for a record year at the box office and analysts expect next year is going to be even better. The move has been driven by high-profile releases like F1 sinners and the latest Mission Impossible. And this month we get Superman and the Fantastic 4.IMAX shares are up over 50% in the past year. Joining us now is Richard Gelfund, IMAX CEO. Rich, it's great to have you on.Uh, and let's start right there. Box office is booming. What's driving it.Um, let's start with the simplest thing, Morgan. really ...

General atmosphere during an IMAX private screening for the movie "First Man" at an AMC theater in New York City on Oct. 10, 2018.More than a year before "F1: The Movie" would eventually hit theaters, Apple struck a deal with IMAX.The studio secured the use of IMAX's camera technology as well as a three-week release in its theaters, a partnership that helped the film generate nearly $300 million globally in its first 10 days in cinemas.More than 20% of that haul came from IMAX screenings. In the U.S. and Ca ...

Financial Data and Key Metrics Changes - First quarter revenue was $134 million, at the high end of guidance of $125 million, driven by stronger sell-through [13] - Non-GAAP operating expenses decreased by 26% year over year to $62 million from $83 million [14][18] - GAAP and non-GAAP loss per share were $0.30 and $0.12 respectively, with adjusted EBITDA loss reduced by nearly 50% year over year to negative $16 million [16][19] - Inventory at the end of the quarter was $96 million, a 27% decrease year over year [16] Business Line Data and Key Metrics Changes - Revenue from the retail channel was $94 million, accounting for 70% of Q1 2025 revenue, up from 68% in Q1 2024 [14] - Revenue from the GoPro.com channel, including subscription and service revenue, was $40 million, representing 30% of Q1 2025 revenue, down from 32% in Q1 2024 [14] - Subscription and service revenue grew 4% year over year to $27 million, primarily due to a 5% increase in ARPU [15] Market Data and Key Metrics Changes - Sell-through was approximately 440,000 units, down from 530,000 units in the prior year period, primarily due to decreases in Asia Pacific driven by macroeconomic issues and competition [17] - In the United States, sell-through was down 10% year over year, while sell-in was up 7% year over year [28] Company Strategy and Development Direction - The company plans to continue making strategic investments in product innovation to return to growth and diversify its supply chain, including exploring domestic production [6][10] - GoPro is focused on launching new products while preserving cash to repay debt and drive growth in 2025 and 2026 [24][23] - The company aims to introduce the Max 2 360 camera in 2025 and expects to end 2025 with 2.4 million subscribers [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating model is becoming leaner and more efficient, positively impacting financial results [11] - The company expects revenue for Q2 2025 to be $145 million, down 22% year over year, with unit sell-through expected to decrease by 20% [21] - Management highlighted that the macro environment, competition, and delays in new product launches are expected to impact units and revenue in 2025 [22] Other Important Information - The company reported a strong aggregate retention rate for subscriptions at 70%, up from 69% both sequentially and year over year [8] - GoPro is actively managing its balance sheet and expects to reduce inventory sequentially by $20 million [20] Q&A Session Summary Question: Can you help us understand the sources of stronger sell-through in the quarter? - Management indicated that there was no pull-forward demand; sales were linear throughout the quarter [27] Question: What happened with the sell-through in the U.S. and Asia? - Management noted that Asia was down 54% due to macroeconomic issues and competition, particularly in China, Japan, and South Korea [30] Question: Can you elaborate on the tariff situation? - Management confirmed that the tariff impact on cameras entering the U.S. is zero due to diversified production outside of China [35] Question: What are the dynamics in Asia currently? - Management highlighted that competition and macroeconomic issues are affecting sales in Asia, with a nationalistic trend to buy local impacting performance [39]

Financial Data and Key Metrics Changes - First quarter revenue was $134 million, at the high end of guidance of $125 million, driven by stronger sell-through [12] - Non-GAAP operating expenses decreased by 26% year over year to $62 million from $83 million [13][16] - Reported gross margin was 32.3%, with an adjusted gross margin of 35.5% excluding a one-time sale [15][16] - Non-GAAP loss per share was $0.12, while GAAP loss per share was $0.30 [14] - Adjusted EBITDA loss was reduced by nearly 50% year over year to negative $16 million [14] Business Line Data and Key Metrics Changes - Revenue from the retail channel was $94 million, accounting for 70% of Q1 2025 revenue, up from 68% in Q1 2024 [13] - Revenue from GoPro's website, including subscription and service revenue, was $40 million, representing 30% of Q1 2025 revenue, down from 32% in Q1 2024 [13] - Subscription and service revenue grew 4% year over year to $27 million, with an average revenue per user (ARPU) growth of 5% [14] Market Data and Key Metrics Changes - Sell-through was approximately 440,000 units, down from 530,000 units in the prior year period, primarily due to macroeconomic issues and competition in Asia Pacific [15] - In Asia, revenue was down 54%, significantly impacted by competition and macroeconomic factors in China, Japan, and South Korea [29][38] - The U.S. sell-through was down 10% year over year, while sell-in was up 7% year over year [27] Company Strategy and Development Direction - The company aims to continue strategic investments in product innovation to return to growth and diversify its supply chain, including exploring domestic production [6][8] - GoPro plans to launch tech-enabled motorcycle helmets in partnership with AGV, targeting a significant market opportunity [10] - The company is focused on launching new products while preserving cash to repay debt and drive growth and profitability [23] Management's Comments on Operating Environment and Future Outlook - Management expects revenue and unit sales in 2025 to be lower than in 2024 due to an uncertain macro environment and competition [20] - The company anticipates a return to camera unit growth in 2026, alongside subscriber and revenue growth [8] - Management highlighted the importance of protecting intellectual property and is prepared to litigate if necessary [8] Other Important Information - The company ended Q1 2025 with $70 million in cash and marketable securities, including a $25 million draw on its asset-based loan [16] - Inventory decreased by 27% year over year to $96 million, marking the first sequential decline in inventory since 2018 [14] Q&A Session Summary Question: Sources of stronger sell-through in the quarter - Management indicated that there was no pull-forward demand; sales were linear throughout the quarter [26] Question: Sell-through dynamics in the U.S. and Asia - Management noted that Asia's decline was primarily due to macroeconomic issues and competition, particularly in China, Japan, and South Korea [29][38] Question: Tariff situation and inventory sourcing - Management confirmed that the tariff impact on cameras entering the U.S. is zero due to diversified production outside of China [34] Question: Dynamics in Asia and competition - Management highlighted that nationalistic trends and increased competition in China have impacted sales, while the U.S. market showed improvement [38] Question: Plans for stock price changes - Management expressed confidence that continued performance improvements would positively impact stock price without the need for a reverse stock split [41]

Financial Data and Key Metrics Changes - IMAX Corporation achieved nearly $300 million in global box office for Q1 2025, marking its best first quarter ever [10] - Revenue for Q1 was $87 million, up 10% year-over-year, with adjusted EBITDA margin at 42.7%, an increase of over 200 basis points year-over-year [34][40] - Adjusted EBITDA for the quarter was $37 million, reflecting a 15% increase year-over-year [39] Business Line Data and Key Metrics Changes - Content Solutions revenues grew to $34 million, with a gross margin of $24 million, up 7% year-over-year [35] - Technology products and services revenues increased to $51 million, up 17% year-over-year, with a gross margin of $29 million, up 23% [36] - The company installed 21 systems worldwide in Q1, its second-best first quarter for installations, with a total backlog of 516 systems, up 17% year-over-year [29][38] Market Data and Key Metrics Changes - IMAX Corporation's global market share reached 3.5% in Q1, with a record 5.4% in China [35] - Local language films accounted for 68% of IMAX's box office in Q1 2025, a significant increase from 21% in 2023 [20] Company Strategy and Development Direction - The company is focusing on expanding its local language film strategy, with significant growth expected in markets like China, Japan, and India [15][18] - IMAX Corporation is leveraging its relationships with studios and filmmakers to enhance its content offerings and maintain a diverse programming slate [14][46] - The company is optimistic about its future slate, with a strong pipeline of films scheduled through the end of the decade [32][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the recent reduction in Hollywood imports in China will not materially impact IMAX's business, as it primarily affects smaller budget films [12][55] - The company anticipates continued growth in box office performance, driven by a strong film slate and increasing consumer interest [45][46] - Management highlighted the resilience of the IMAX brand and its ability to thrive in various economic cycles [32] Other Important Information - The company reported cash flow from operations of $7 million in Q1, an improvement of $18 million year-over-year [42] - IMAX Corporation's capital position remains strong, with $97 million in cash and over $400 million in available liquidity [44] Q&A Session Summary Question: Impact of Hollywood film imports reduction in China - Management indicated that there is increased interest in films and no reduction in activity in the Chinese market, with a positive narrative surrounding IMAX [51][55] Question: Factors affecting the percentage of films shot with IMAX cameras - Management stated that the primary limiting factor is the availability of slots for films rather than the number of cameras [58] Question: Strength of IMAX's performance in China - Management noted that the strong performance was uniform across all markets, driven by effective marketing strategies and a special film release [64][66] Question: Concerns about the health of the consumer - Management expressed confidence that IMAX remains an affordable luxury, with box office performance resilient even during economic downturns [104] Question: Brand perception of IMAX in China - Management clarified that IMAX is viewed as a local prestige brand in China, with strong consumer appreciation [135]