Sign in

You're signed outSign in or to get full access.

IC

IMAX CORP (IMAX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered solid top-line and strong profitability leverage: revenue $91.7M (+3% YoY; +5.8% QoQ) and Total Adjusted EBITDA $39.1M (+26% YoY), with Adjusted EBITDA margin at 42.6% (+780 bps YoY). Management highlighted record domestic IMAX box office and 19% YoY market share gains to 3.6% on <1% of screens .
  • Results beat S&P Global consensus on EPS and revenue; EPS $0.26 vs $0.226* and revenue $91.7M vs $90.8M*, while S&P’s EBITDA (unadjusted basis) came in below its consensus ($26.3M vs $33.4M*). Company-reported Total Adjusted EBITDA was $39.1M. Values retrieved from S&P Global .
  • Guidance tightened higher: installs now expected 150–160 (from 145–160 prior) and Adjusted EBITDA margin now “low 40s” vs prior “≥40%”; box office guide maintained at a record ~$1.2B, with Q3 “off to a very strong start” (F1, Superman) .
  • Catalysts: sustained Filmed for IMAX slate (8 consecutive titles), robust signings (124 YTD vs 130 all of 2024), larger credit facility to $375M, and strong local-language momentum in China/Japan. Potential debates: PLF competition chatter, S&P EBITDA miss vs company’s Adjusted EBITDA, and mix/marketing spend around Avatar in Q4 .

What Went Well and What Went Wrong

  • What Went Well

    • Record domestic quarter; IMAX share rose to 3.6% globally (+19% YoY) with several Filmed for IMAX titles capturing ~20% domestic openings; CEO: “we’re raising the floor for our market share” .
    • Mix and scale drove margin expansion: Content Solutions gross margin rose to 66% (from 46%), Tech Products & Services margin to 54% (+360 bps); CFO: “high incremental profit flow-through” from stronger box office .
    • Network momentum: 36 installs (+50% YoY), 124 signings YTD (vs 130 in all 2024), and credit facility expanded to $375M for flexibility; CEO/CFO emphasized accelerating demand and higher install guide .

  • What Went Wrong

    • On S&P Global definitions, EBITDA missed consensus despite strong company-reported Adjusted EBITDA; S&P EBITDA actual $26.3M vs $33.4M estimate*, highlighting definition differences investors must reconcile [GetEstimates Q2 2025] .
    • Content Solutions revenue declined 3% YoY due to prior-year streaming rights sale (“Blue Angels”), though margin gains more than offset; topline optics mask strong underlying box office leverage .
    • Continued investor debate on PLF competitive responses; CEO dismissed aggregator initiatives, but the narrative could linger near-term amid exhibitor strategy experimentation .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($M)$89.0 $92.7 $86.7 $91.7
Gross Margin ($M)$43.9 $48.4 $53.2 $53.6
Gross Margin (%)49.4% 52.2% 61.4% 58.5%
Net Income ($M)$5.1 $6.9 $8.2 $12.2
Diluted EPS ($)$0.07 $0.10 $0.04 $0.20
Total Adjusted EBITDA ($M)$31.0 $37.2 $37.0 $39.1
Adjusted EBITDA Margin (%)34.8% 40.1% 42.7% 42.6%
Adjusted EPS – Diluted ($)$0.18 $0.27 $0.13 $0.26

Estimates vs Actuals (S&P Global)

  • Q2 2025 EPS: Actual $0.26 vs $0.2258 estimate*; Revenue: Actual $91.684M vs $90.848M estimate*; EBITDA (S&P basis): Actual $26.27M vs $33.40M estimate*. Values retrieved from S&P Global [GetEstimates Q2 2025].
  • Company-reported Total Adjusted EBITDA: $39.1M (non-GAAP) .

Segment Breakdown (Q2 2025 vs Q2 2024)

SegmentRevenue ($M) Q2’24Revenue ($M) Q2’25Gross Margin ($M) Q2’24Gross Margin ($M) Q2’25GM% Q2’24GM% Q2’25
Content Solutions$35.1 $34.0 $16.1 $22.4 46% 66%
Technology Products & Services$50.9 $55.6 $25.8 $30.2 51% 54%

KPIs and Operating Metrics

KPIQ2 2024Q2 2025 / YTD
IMAX Global Box Office—$281.1M in Q2 (+41% YoY)
IMAX Global Box Office Share3.0% range (context)3.6% in Q2 (+19% YoY); ~5.3% domestic; ~6% China
North America IMAX Box Office—Highest grossing quarter ever: $143M
System Installations (Q2)24 36
System Signings (Q2 / YTD)87 / 95 YTD 2024 28 / 123 YTD 2025
Network (Total Systems)1,780 (6/30/24) 1,821 (6/30/25)
Backlog (Systems)504 (6/30/24) 501 (6/30/25)
Liquidity—$416M at 6/30/25; ~$490M post facility expansion
Credit Facility$300M priorRenewed/expanded to $375M
Cash & Cash Equivalents—$109M at 6/30/25
Total Debt (ex def. costs)—$280M at 6/30/25

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Global IMAX Box OfficeFY 2025“Record >$1.2B” reiterated at Q4 & Q1 “On track” for ~$1.2B Maintained
System InstallationsFY 2025145–160 150–160 (“moving higher in our range”) Raised
Adjusted EBITDA MarginFY 2025≥40% “Low 40s” Raised
Effective Tax RateFY 2025Move to normalized ETR “Aiming towards an effective tax rate for the entire year” Maintained
Credit FacilityCurrent$300M revolving facility Expanded to $375M (lower borrowing costs) Improved Liquidity
Share Repurchase AuthorizationProgram$400M authority to 6/30/26 Extended to 6/30/27; total $500M; $251M available at 6/30/25 Increased/Extended

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Filmed for IMAX strategyBuilt biggest slate; launching franchises incl. Netflix Narnia, Apple F1; 8 consecutive Filmed for IMAX coming (Q1) Raised market share floor; multiple ~20% domestic openings; 8-title run in summer Improving
China/local-language momentumDramatic turnaround YTD; record CNY; high IMAX indexing; strong slate ahead ~6% share in China; local-language and anime traction (Demon Slayer) Improving
Installations & backlog146 installs in 2024; guide 145–160 for 2025; strong signings 36 installs in Q2; guide 150–160; 124 signings YTD Improving
PLF competition narrativeNot a major focus [—]CEO dismisses “consortium” threat; cites brand/tech lead and recent Regal deal Stable/Supportive
Pricing/discount dynamics—Premium experience holds; discount days seen as less relevant to IMAX demand Stable
Alternative content & deliveryLive events success; SSIMWAVE tech emerging Streaming-based distribution for events lowers costs vs wired; scaleable Improving efficiency
Capital structure/liquidityLiquidity ~$418M YE; converts due 2026 Facility to $375M; liquidity ~$490M; flexibility on 2026 converts Improving
Tax rateInternal restructuring to improve ETR (Q4/Q1) Moving toward normalized ETR for full year Improving

Management Commentary

  • “We delivered strong financial results in Q2… with strong network growth worldwide, record box office in North America, and impressive market share gains….” – CEO Rich Gelfond .
  • “We remain on track to deliver a record $1.2 billion in global box office in 2025… pacing well ahead of our projections for IMAX system sales and installations.” – CEO .
  • “Content Solutions margin… went from 46% in Q2 2024 to 66% in Q2 2025, driven by… operating leverage… and the mix toward higher margin streams.” – Release .
  • “Adjusted EBITDA margin… 42.6%… up 780 basis points YoY… reflecting high incremental profit flow-through… and a more profitable mix of revenues.” – CFO Natasha Fernandes .
  • “We expanded our revolving credit facility from $300 million to $375 million… at a reduced borrowing cost… increasing financial flexibility.” – Release .

Q&A Highlights

  • Filmed for IMAX ubiquity: Won’t be universal—slots matter and two-week run commitments limit ubiquity; already locked 9 titles for 2026 and at least 8 for 2027 .
  • PLF competitor talk: CEO called reported exhibitor consortium efforts “pathetic attempts,” citing IMAX’s brand/tech/filmmaker edge and recent Regal expansion (LA Live, Manhattan) .
  • Pricing/discount days: IMAX consumer pays premium for premium experience; discounting by exhibitors not expected to alter IMAX dynamics materially .
  • Cash flow conversion: Trending toward pre-COVID levels; strong incrementality over $250M per-quarter GBO; Q3 cash flow to benefit from China collection timing .
  • Live events network: Shift from wired (~200 sites) to streaming delivery via SSIMWAVE reduces cost and scales faster for events (e.g., League of Legends) .

Estimates Context

  • EPS and revenue beat S&P Global consensus: Q2 2025 EPS $0.26 vs $0.2258*; revenue $91.684M vs $90.848M* [GetEstimates Q2 2025].
  • S&P Global’s EBITDA metric missed: $26.27M actual vs $33.40M estimate*, while company-reported Total Adjusted EBITDA was $39.06M (non-GAAP). Values retrieved from S&P Global .
  • Forward quarters (S&P Global): Q3 2025 EPS 0.391* (actual later printed $0.47), revenue $105.7M* (actual $106.7M), and Q4 2025 EPS 0.469*, revenue $119.9M*—implies continued growth cadence. Values retrieved from S&P Global [GetEstimates next periods].

Note: Asterisked values are from S&P Global and may reflect differing metric definitions versus company-reported non-GAAP figures. Values retrieved from S&P Global.

Key Takeaways for Investors

  • IMAX’s Filmed for IMAX strategy is structurally lifting market share and per-title indexing; margin leverage is material at higher box office levels—favorable into an event-heavy H2 (including Avatar) .
  • Install pipeline momentum is accelerating—guide raised to 150–160; signings near last year’s full-year in just six months—supporting multi-year revenue visibility .
  • Liquidity and capital flexibility improved with the facility lift to $375M; management has optionality on 2026 converts and is extending buyback capacity ($500M auth.) .
  • Expect marketing and mix choices (e.g., Avatar promotion) to influence quarterly EBITDA margin within a “low-40s” full-year framework—watch for spending cadence and slate timing .
  • S&P EBITDA miss vs company Adjusted EBITDA highlights definition differences; model both to align with how the sell side and company frame performance [GetEstimates Q2 2025].
  • International/local-language franchises (China, Japan) and alternative content (music, gaming) broaden programming and utilization—tailwinds for global PSAs and content diversification .
  • Near-term stock drivers: H2 slate execution (F1, Superman holds, Fantastic Four; later Avatar), incremental signings/installs updates, and any PLF narrative shifts from exhibitors .