Executive Summary

Solid Q1 print with revenue $86.7m (+10% YoY) and Adjusted EPS $0.13; Adjusted EBITDA $37.0m at 42.7% margin. Management highlighted record Q1 IMAX global box office ($298m, +12% YoY) and robust system demand (95 signings; 21 installs) as key drivers .
Results beat S&P Global consensus on revenue ($86.7m vs $84.2m*) and adjusted EPS ($0.13 vs $0.114*); a clean reversal from Q4’s revenue miss (92.7m vs 102.5m*) and slight EPS miss (0.27 vs 0.282*) . Values with asterisk from S&P Global.
Management reaffirmed trajectory toward 2025 targets (record >$1.2B IMAX global box office; 145–160 installations; 40%+ Adjusted EBITDA margin), citing a heavy “Filmed for IMAX” slate and strengthening exhibitor investment pipeline .
China concerns addressed: management expects any “moderate” import reductions to focus on lower-potential titles; IMAX’s Q1 China outperformance and studio signals underpin confidence. Local language mix reached 68% of Q1 box office, with Ne Zha 2 a standout .

What Went Well and What Went Wrong

What Went Well

Record Q1 global box office ($298m) and high flow-through: Content Solutions GM +7% YoY on +1% revenue; overall GM 61.4% (+210 bps YoY). CEO: “The fundamentals of our business have never been stronger” .
Strong system demand: 95 signings (vs 8 LY) and 21 installs (+40% YoY), lifting backlog to 516 systems; balanced installs across U.S., RoW, and China (7 each) .
Local language strategy acceleration: IMAX China delivered record Chinese New Year; Ne Zha 2 indexed ~7.5% on <1% of screens and commands higher take rates than Hollywood releases .

What Went Wrong

GAAP EPS diluted declined YoY ($0.04 vs $0.06) as non-controlling interest increased with IMAX China strength; adjusted EPS down YoY ($0.13 vs $0.15) despite better revenues .
Free cash flow negative (-$7.7m) on step-up in growth CapEx for JV screens; management emphasized upfront nature and long-term cash economics of JRSA model .
Elevated Q1 tax rate (47%) on geographic mix/valuation allowance; management expects normalization over full year, but quarter’s tax drag reduced EPS leverage .

Financial Results

Headline P&L and Margins (USD Millions, except per share; columns: oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($m)	$91.5	$92.7	$86.7
Gross Margin (%)	55.8%	52.2%	61.4%
Adjusted EBITDA ($m)	$38.7	$37.2	$37.0
Adjusted EBITDA Margin (%)	42.3%	40.1%	42.7%
Net Income ($m)	$13.9	$5.3	$8.2
Diluted EPS (GAAP)	$0.26	$0.10	$0.04
Adjusted Diluted EPS	$0.35	$0.27	$0.13

Results vs S&P Global Consensus

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Actual ($m)	$91.5	$92.7	$86.7
Revenue Consensus ($m)	$93.7*	$102.5*	$84.2*
Revenue Beat/(Miss)	($2.3)m	($9.8)m	+$2.5m
Adjusted EPS Actual	$0.35	$0.27	$0.13
EPS Consensus	$0.236*	$0.282*	$0.114*
EPS Beat/(Miss)	+$0.114	($0.012)	+$0.016
Asterisked values retrieved from S&P Global.

Segment performance (Revenue and Gross Margin; USD Millions)

Metric	Q3 2024	Q4 2024	Q1 2025
Content Solutions Revenue	$30.1	$25.5	$34.2
Content Solutions Gross Margin	$16.4	$11.8	$23.6
Technology Products & Services Revenue	$58.0	$64.0	$50.6
Technology Products & Services Gross Margin	$32.0	$34.2	$29.1

KPIs and Network

KPI	Q3 2024	Q4 2024	Q1 2025
System Signings (units, quarter)	16	19	95
System Installations (units, quarter)	49	58	21
Backlog (systems, end-period)	472	440	516
Total System Network (end-period)	1,788	1,807	1,810
Liquidity (cash + undrawn, $m)	$413 (as of 9/30/24)	$418 (as of 12/31/24)	$401 (as of 3/31/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Global Box Office (IMAX)	FY 2025	“More than $1.2B”	“On track to achieve guidance incl. record $1.2B”	Maintained
System Installations	FY 2025	145–160	Reiterated; heavier back-half mix typical	Maintained
Adjusted EBITDA Margin	FY 2025	40%+	“On track” to FY guidance	Maintained
Tax Rate	FY 2025	n/a	Expect normalized full-year rate; Q1 at 47% on mix	New color (no numeric)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
China/local-language content	Q3: diversified content, resilient model ; Q4: record Chinese New Year early in 2025; China headwinds lifting	Local language 68% of Q1 box office; record CNY; Ne Zha 2 indexing and higher take rate	Strong positive
Hollywood slate / Filmed for IMAX	Q3: 2025–26 strongest slate; 14 Filmed for IMAX ; Q4: 2025 record GBO expected	Eight consecutive Filmed for IMAX in summer; strong early Sinners performance (20% domestic opening in IMAX)	Strengthening
System signings & installs	Q3: installs +63% YoY; robust sales	95 signings; 21 installs; backlog 516; balanced geography	Accelerating demand
Tariffs/regulatory (China imports)	n/a	Management expects “moderate” import reduction to target low-potential films; major tentpoles to get in	Risk managed
Technology & DMR efficiency	Q3: model flexibility	DMR not labor-intensive; more automation/cloud; outsource in Asia to protect margins	Operational efficiency improving
Streaming/alt content partnerships	Q4: Netflix Narnia IMAX window	Apple/Warner F1 IMAX premiere events; events/concerts driving incremental box office	Broadening content aperture
Exhibitor investment/penetration	Q3: high-end of install guidance	AMC upgrades; new partners; zones <50% penetrated; Kinepolis multi-territory expansion	Expanding footprint

Management Commentary

CEO strategy and tone: “IMAX is off to an excellent start… record global box office and strong system sales and installations… entering a new era of growth” . On China imports: any “moderate” reduction likely targets smaller films; studios expect major films to be approved .
Local-language momentum: “It’s quite possible that IMAX delivers its highest grossing local language films of all time in China, Japan and India this year” .
Slate catalysts: “Every Hollywood release scheduled from now to August was filmed with IMAX cameras… Sinners delivered our biggest domestic opening weekend ever for a horror film” .
CFO: “On track to achieve our guidance for the full year, including a record $1.2 billion in global box office” with Adjusted EBITDA margin 42.7% in Q1 and strong signings/installations underpinning backlog .

Q&A Highlights

China import policy: Management reiterated confidence that major studio tentpoles will be approved; exhibitor interest in China is increasing post-record quarter .
“Filmed for IMAX” capacity: Primary constraint is programming slots and selectivity; film camera supply can be a temporary limiter, but digital is not; intention is quality over quantity .
Content margins and tax: High box office levels drive 85% incremental flow-through in Content Solutions; Q1 margin benefitted from local-language mix and lower social marketing costs; tax rate elevated in Q1 (47%) but expected to normalize for FY .
Windows/PVOD: IMAX not materially impacted by PVOD window length; focus remains on content quality/diversification .
Consumer resilience: IMAX positioned as “affordable luxury”; historical resilience through economic cycles; concessions not a profit driver for IMAX .

Estimates Context

Q1 2025 beat: Revenue $86.7m vs $84.2m*; Adjusted EPS $0.13 vs $0.114*. Box office-led flow-through, with Content Solutions margin tailwinds and robust installations/signings . Values with asterisk from S&P Global.
Prior quarters: Q4 2024 revenue miss ($92.7m vs $102.5m*) and slight EPS miss ($0.27 vs $0.282*) contrasted with Q3 2024 EPS beat ($0.35 vs $0.236*) despite small revenue miss ($91.5m vs $93.7m*) . Values with asterisk from S&P Global.
Implications: Estimate models likely bias up for Q2–Q3 Content Solutions revenue/margin given slate density (eight consecutive Filmed for IMAX) and demonstrated 85% flow-through at elevated box office levels; tax rate normalization caveat could aid EPS vs Q1 run-rate .

Key Takeaways for Investors

Box office-driven operating leverage is working: 61.4% GM and 42.7% Adjusted EBITDA margin despite seasonality; local-language outperformance adds incremental fee advantage, particularly in China .
Demand-side validation: 95 signings and higher sales-type mix in installs signal exhibitor conviction heading into a slate-heavy 2025–2026; backlog now 516 systems .
Summer catalysts: Eight consecutive Filmed for IMAX releases (e.g., Mission: Impossible, How to Train Your Dragon, F1, Fantastic Four) should sustain high indexing and occupancy; near-term trading likely tracks slate momentum and weekend hold trends .
China narrative turning: Record CNY and management’s read-through on import approvals reduce tail risk; local-language strategy and marketing execution (social/digital) are delivering share gains .
Mind the mix: Q1 adjusted vs GAAP EPS gap driven by higher non-controlling interest and tax mix; watch for tax normalization and continued IMAX China strength impacting EPS attribution to common shareholders .
Cash flow optics: Near-term FCF drag from growth CapEx into JV screens is by design; long-duration JRSA contracts support multi-year cash returns as the slate normalizes .
2025 guide intact: Management remains on track for record IMAX global box office >$1.2B, 145–160 installs, and 40%+ Adjusted EBITDA margin, with heavier install cadence in H2 .

Notes on non-GAAP: Adjusted EPS excludes share-based comp, investment gains/losses, restructuring/other; Adjusted EBITDA per Credit Facility adds further credit agreement adjustments; free cash flow excludes growth CapEx for JRSA .

Asterisked values retrieved from S&P Global.

IMAX CORP (IMAX)·Q1 2025 Earnings Summary