# Imax Corp: Form 10-K for the period ended Dec 31, 2025 - Company: [Imax Corp](/companies/imax.md) (CIK 921582) - Form: 10-K - Filed: 2026-02-25 - Accepted by EDGAR: Feb 25, 2026, 17:03 ET - Period: 2025-12-31 - Accession: 0001628280-26-011770 - Inline XBRL: yes - Main document: https://www.sec.gov/Archives/edgar/data/921582/000162828026011770/imax-20251231.htm - All documents and exhibits: https://www.sec.gov/Archives/edgar/data/921582/000162828026011770/ ## Figures reported in this filing Standardized XBRL line items for the period ended 2025-12-31. | Line item | Period | Value | XBRL concept | | --- | --- | ---: | --- | | Revenue | 12 months, 2025-01-01 to 2025-12-31 | $410.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | | Cost of revenue | 12 months, 2025-01-01 to 2025-12-31 | $164.0m | us-gaap:CostOfGoodsAndServicesSold | | Gross profit | 12 months, 2025-01-01 to 2025-12-31 | $246.2m | us-gaap:GrossProfit | | Research and development | 12 months, 2025-01-01 to 2025-12-31 | $5.8m | us-gaap:ResearchAndDevelopmentExpense | | Selling, general and administrative | 12 months, 2025-01-01 to 2025-12-31 | $138.5m | us-gaap:SellingGeneralAndAdministrativeExpense | | Operating income | 12 months, 2025-01-01 to 2025-12-31 | $84.2m | us-gaap:OperatingIncomeLoss | | Interest expense | 12 months, 2025-01-01 to 2025-12-31 | $7.4m | us-gaap:InterestExpenseNonoperating | | Income tax | 12 months, 2025-01-01 to 2025-12-31 | $17.8m | us-gaap:IncomeTaxExpenseBenefit | | Net income | 12 months, 2025-01-01 to 2025-12-31 | $34.9m | us-gaap:NetIncomeLoss | | Diluted EPS | 12 months, 2025-01-01 to 2025-12-31 | $0.63 | us-gaap:EarningsPerShareDiluted | | Basic EPS | 12 months, 2025-01-01 to 2025-12-31 | $0.65 | us-gaap:EarningsPerShareBasic | | Diluted shares (weighted) | 12 months, 2025-01-01 to 2025-12-31 | 55,544,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding | | Operating cash flow | 12 months, 2025-01-01 to 2025-12-31 | $127.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities | | Capital expenditure | 12 months, 2025-01-01 to 2025-12-31 | $8.2m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | | Cash and equivalents | at 2025-12-31 | $151.2m | us-gaap:CashAndCashEquivalentsAtCarryingValue | | Total assets | at 2025-12-31 | $894.0m | us-gaap:Assets | | Total liabilities | at 2025-12-31 | $466.3m | us-gaap:Liabilities | | Shareholders' equity | at 2025-12-31 | $337.9m | us-gaap:StockholdersEquity | ## Business As filed, 58,278 characters. IMAX Corporation (the “Company” or “IMAX”) is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation (“Predecessor IMAX”). Predecessor IMAX was incorporated in 1967. As of December 31, 2025, the Company indirectly owned 71.57% of IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. ### GENERAL 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. The Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide; IMAX documentaries, both original and acquired (“IMAX Documentaries”); and IMAX events and experiences in emerging verticals, including music, gaming, and sports. The Company leverages its proprietary technology and engineering in its business, which principally consists of the digital remastering of films and other content into the IMAX format for distribution across the IMAX network (“IMAX Film Remastering”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history. The customers for IMAX Systems are principally exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, institutional locations, including museums and science centers, and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with licenses to use its trademarks and ongoing maintenance services for which there are annual payments by the exhibitors to IMAX. IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of December 31, 2025, there were 1,864 IMAX Systems operating in locations in 91 countries and territories, including 1,796 commercial multiplexes, 10 commercial destinations, and 58 institutional locations in the Company’s global network. This compares to 1,807 IMAX Systems operating in 90 countries and territories as of December 31, 2024, including 1,735 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network. Additional information on the composition of the IMAX network is provided in the discussion under the caption “Marketing and Customers.” IMAX Systems provide the Company’s exhibitor customers with a combination of the following benefits: - the ability to exhibit content that has been enhanced through the IMAX Film Remastering process, which results in higher image and sound fidelity than conventional cinema experiences; - advanced, high-resolution projectors with specialized equipment and automated theater control systems, which generate significantly more contrast and brightness than conventional theater systems; - 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 compared 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 - a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX’s growing social media followership. 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 “IMAX Film Remastering” below. As a result of the engineering and scientific achievements that are a hallmark of *The* IMAX *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, generates 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. In 2025, the Company’s diversified global programming and marketing strategy resulted in a global box office record of $1.28 billion, surpassing its previous record of $1.13 billion in 2019 by 13% and a 40% increase over the prior year comparative period. The Company achieved its highest grossing year at the domestic (United States and Canada) box office in 2025. Additionally, the Company had record box office in over 30 countries and territories worldwide in 2025, including China, Japan, Germany, India, Australia and Vietnam. The Company’s 2025 film slate was the largest in history, with 122 new films and other content released during the year, including a record 67 local language films. The top grossing titles released in 2025 included the Chinese film *Ne Zha 2,* which became the highest grossing IMAX release of all time in China and contributed to the highest grossing Chinese New Year in the Company’s history; *Avatar: Fire and Ash*, the Company’s highest grossing Hollywood release of the year, achieving 15% of the film’s total domestic opening weekend box office; *F1: The Movie, Mission: Impossible - The Final Reckoning,* and the Japanese film *Demon Slayer: Infinity Castle*. Local language content in 2025 generated $405.4 million in global box office for the Company or 32% of its total global box office, surpassing its previous record of $243.5 million set in 2023 by 66%. Throughout the year, the Company continually optimized its global IMAX network by taking a heavily diversified programming approach, playing multiple titles contemporaneously, and maintaining maximum scheduling flexibility. In 2025, the Company released several films shot with IMAX proprietary cameras under the Filmed For IMAX® program, that generated more than $40.0 million in global IMAX box office on a per-title basis. IMAX captured at least 20% of the domestic opening weekend box office on each of *Sinners, Mission: Impossible – The Final Reckoning, F1: The Movie*, and *Tron: Ares*. Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for premium large‑format experiences continued to strengthen. The Filmed For IMAX program helped drive the Company’s domestic box office market share to a record 5.2% and to a record global market share of 3.8%, up from 4.5% and 3.1%, respectively, in the prior year, even though IMAX represents only approximately 1% of domestic screens and less than 1% of screens worldwide. A cornerstone of the IMAX brand for almost 60 years, the Company’s IMAX Documentaries strategy focuses on a new generation of narrative-driven original and acquired documentary films, as well as downstream revenue opportunities through partnerships with leading streaming platforms. In 2025, the Company released the institutional 3D version of *The Blue Angels* across select IMAX locations in North America, Europe, and Australia. In early 2026, *The Last Wolves of Yellowstone,* and French language documentary *Athos,* produced by Federation Studio France were released. Additional forthcoming IMAX Documentaries are scheduled to include *Stormbound, Frontier,* and *The Elephant Odyssey.* In collaboration with The National Basketball Association (“NBA”), Unanimous Media, and Religion of Sports, the Company will also release *Portrait of an Artist* offering an intimate glimpse into the life of NBA superstar Stephen Curry. In 2025, the Company partnered to release exclusive concert films and limited-run theatrical events, including *Becoming Led Zeppelin* with Sony Pictures, *Prince - Sign O’ The Times* and *Rolling Stones - At The Max* with Mercury Studios, *Pink Floyd at Pompeii - MCMLXXII, Depeche Mode: M,* and *j-hope Tour ‘Hope on Stage’ The Movie* with Trafalgar Releasing, *One to One: John & Yoko* with Magnolia Pictures, *Springsteen: Deliver Me From Nowhere* with 20th Century Studios, and *G-Dragon in Cinema \[Übermensch\]* with CJ CGV Co. Ltd. The Company also partnered with Bleecker Street for the release of *Spinal Tap II: The End Continues*, including a live Q&A event. The Company also continued its partnership with A24 to present one-night-only IMAX releases of classic A24 titles, including *Talk to Me, Moonlight*, and *Spring Breakers.* In addition, the Company released several event-based and live screenings in 2025, including *Dead & Company Live in IMAX from Golden Gate Park* with Los Muertos, *The Grateful Dead Movie 2025 Meet-Up,* and *David Gilmour Live at the Circus Maximus, Rome* with Trafalgar Releasing, and *Girl Climber* with Red Bull Studios. In collaboration with Runway AI, Inc, *Runway’s 2025 AI Film Festival* was released across ten North American IMAX locations. The Company further expanded its live content offerings through partnerships with NBC Universal for the *SNL50: The Homecoming Concert* in select IMAX North American locations, DAZN for the *PSG v Marseille Le Classique Match* in select IMAX locations across France, Wanda Film for the *F1 Spanish Grand Prix* screening across six IMAX locations in China, Major League Baseball for a live streaming of a *World Series* game across two IMAX locations in Japan and with multiple exhibitor partners in China the *League of Legends Video Games* 2025 finals across over 100 IMAX China locations. Furthermore, in 2025, the Company partnered with Netflix for release of *Frankenstein* across select IMAX locations. The Company will continue to expand its partnerships and the scope and diversity of content it releases across its platform. Already announced for 2026 are the following concert films and events, many of which have exclusive IMAX windows: *Stray Kids: The dominATE Experience, Eric Church: Evangeline vs. The Machine Comes Alive, Twenty One Pilots: More Than We Ever Imagined,* and *EPiC: Elvis Presley in Concert.* In addition, IMAX is working with Apple TV to bring the 2026 FIA Formula One World Championship live to select IMAX locations across the United States for the first time ever. Five of the most iconic Grands Prix in F1 — Miami, Monaco, Silverstone, Monza, and Austin — will be available across at least 50 IMAX locations nationwide. The 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 and video streaming optimization. In its business operations, the Company employs AI in various functions, including research, data analysis, marketing, theater operations, slate programming, and general productivity improvements. It is actively exploring other global use cases for AI to improve its products, operations, and efficiency. ### IMAX NETWORK The IMAX network is the most extensive premium network in the world with 1,864 IMAX Systems operating in locations in 91 countries and territories, including 1,796 commercial multiplexes, 10 commercial destinations and 58 institutional locations as of December 31, 2025. IMAX grew its network by 3.2% in 2025, driven by 98 new IMAX Systems installations, and ended the year with a backlog (as defined and discussed under the caption “IMAX SYSTEMS” below) of 434 IMAX Systems. The Company believes that the majority of its future network growth will come from international markets (defined as all countries other than the United States and Canada). In 2025, the Company experienced a significant expansion of 8.4% in its commercial network outside of North America and Greater China, including expansion into two new countries, Lithuania and Iraq. In countries such as Japan and Australia, the network increased by 17% and more than 100%, respectively, as compared to the prior year. During 2025, the Company also achieved growth of more than 10% in Western Europe, primarily due to expansion in France, Germany, and the Netherlands. While the Company’s international market share has grown 800 basis points over the past five years, it is less than half of its domestic market share. The Company believes that such underrepresentation and the increasing interest and demand in premium large-format experience in recent years present a significant market expansion opportunity for IMAX. As of December 31, 2025, 76% of IMAX Systems in the global commercial multiplex network were located within international markets. Revenues and gross box office (“GBO”) derived from international markets continue to exceed revenues and GBO from the United States and Canada combined. (Refer to “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,” “– The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” “– General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems,” and “– The Company may not convert all of its backlog into revenue and cash flows” in Part I, Item 1A.) ### PRINCIPAL PRODUCTS AND SERVICES The Company is an innovator in entertainment technology, combining proprietary software, auditorium architecture, and specialty projection and sound system equipment to deliver what it believes is the most immersive in-theater experience in the world while also distributing a significant and growing portfolio of films and other content across its global network. The Company’s principal products and services are as follows: - IMAX Film Remastering – The digital remastering of films and other content into IMAX formats for distribution to the IMAX network. - Film Distribution, Production and Post-Production – The distribution of large-format documentary films, primarily to institutional IMAX theaters, and, increasingly, the distribution of exclusive IMAX events and experiences, including music, gaming, and sports to commercial IMAX theaters, as well as the provision of film post-production services. - IMAX Systems – The sale or lease of premium IMAX Systems to exhibitor customers. - IMAX Maintenance – The provision of preventative and emergency maintenance services and quality monitoring to the IMAX network. - Other – Principally includes the Company’s Streaming and Consumer Technology business, as well as other ancillary activities. The Company assesses and evaluates its performance based on the operating results of the Content Solutions and Technology Products and Services segments, which largely reflect the different customer bases the Company serves. The Content Solutions segment principally focuses on content enhancement and distribution services for the Company’s movie studio customers and content creators. The Technology Products and Services segment primarily consists of products and services for the Company’s exhibitor customers, including the sale, lease, and ongoing maintenance of IMAX Systems. The Company’s segment information is provided in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 20 to “Consolidated Financial Statements” in Part II, Item 8. ### IMAX FILM REMASTERING IMAX Film Remastering is a proprietary technology that digitally remasters films into IMAX formats. IMAX Film Remastering digitally enhances the image resolution of films for projection on IMAX screens while maintaining or enhancing the visual clarity and sound quality to levels for which *The* IMAX *Experience* is known. In addition, the original soundtrack of a film to be exhibited across the IMAX network is remastered for IMAX digital sound systems. IMAX remastered soundtracks are uncompressed and full fidelity. IMAX sound systems use proprietary loudspeaker systems and proprietary surround sound configurations that ensure every seat in an auditorium is an optimal listening position. The IMAX Film Remastering process can involve: - scanning, at the highest possible resolution, each individual frame of the film and converting it into a digital image; - optimizing the image using proprietary image enhancement tools; - enhancing the digital image using techniques such as sharpening, color correction, grain, noise, and unwanted artifacts removal, and unsteadiness elimination; - recording the enhanced digital image into an IMAX digital cinema package format or onto IMAX 15/70-format film; and - specially remastering the soundtrack to take full advantage of the unique sound system of IMAX Systems. 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 have sought IMAX-specific enhancements in recent years to generate interest in and excitement for their films. 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 screen versus a conventional screen. In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, with up to 67% more image compared to a standard conventional movie screen. 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. Management believes that growth in global box office remains an important driver of growth for the Company. To support continued growth in international markets, the Company is focused on the expansion of the IMAX network and has sought to bolster its international film strategy, supplementing its slate of Hollywood films with appealing local language films released in select markets, including China, Japan, India, South Korea, and France. More recently, the Company has further expanded its strategy by distributing local language content beyond native markets. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations ― Sources of Revenue” for the number of new films and other content released to the Company’s global network during the years ended December 31, 2025 and 2024, and announced titles to be released to the IMAX network in 2026 in Part II, Item 7. ### FILM DISTRIBUTION, PRODUCTION AND POST-PRODUCTION The Company believes that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The Company receives, as its distribution fee, either a fixed amount or a fixed percentage of the 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 distributes large-format documentary films, primarily to institutional customers, and other original content. The ownership rights to documentary content may be held by the film sponsors, the film investors and/or the Company. As of December 31, 2025, the Company had distribution rights with respect to approximately 75 films, which cover subjects such as space, wildlife, music, sports, history, and natural wonders. The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company also provides IMAX film and digital cameras to content creators under the IMAX certified camera program. In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of December 31, 2025, the Company was able to deliver live and interactive events to over 400 locations worldwide. ### IMAX SYSTEMS The Company’s primary products are its various digital and laser projection systems, which are either sold or leased to exhibitor customers along with a license for the use of the globally recognized IMAX brand. The Company’s projection systems include a projector that offers superior image quality and stability and a digital theater control system; a digital audio system; a screen with a proprietary coating technology and, in certain situations, 3D glasses and cleaning equipment. The Company’s projection systems provide a premium and differentiated experience to audiences that is consistent with what they have come to expect from the IMAX brand, while providing exhibitor customers with the compelling economics and flexibility that digital technology affords. As part of the arrangement to sell or lease an IMAX System, the Company provides extensive advice on auditorium planning and design, as well as supervision of installation services. The terms of each sale or lease arrangement vary according to the configuration of the IMAX System, as well as the cinema and film distribution markets relevant to the geographic location of the customer. Revenue from the sale or lease of an IMAX System may be recognized at a different time from when cash is collected from the exhibitor customer. Further discussion of the Company’s revenue recognition policies is provided in “Critical Accounting Estimates” in Part II, Item 7 and “Summary of Significant Accounting Policies — *Revenue Recognition”* in Note 2 to “Consolidated Financial Statements” in Part II, Item 8. The following table presents the number of IMAX Systems that were in the network and in backlog, by configuration, as of December 31, 2025 and 2024: | | December 31, 2025 System Network Base | New Backlog | Upgrade Backlog | December 31, 2024 System Network Base | New Backlog | Upgrade Backlog | | --- | ---: | ---: | ---: | ---: | ---: | ---: | | IMAX Laser Systems | 757 | 216 | 131 | 607 | 250 | 85 | | IMAX Xenon Systems | 1,089 | 87 | — | 1,178 | 105 | — | | IMAX Film Systems(1) | 52 | 3 | — | 44 | — | — | *(1) In certain IMAX commercial locations, IMAX Film Systems operate alongside an IMAX Laser System or IMAX Xenon System and are interchanged depending on the format of the content being shown, and are not included in the total IMAX Network or System Backlog.* #### IMAX Laser Systems The Company currently sells or leases two different configurations of the IMAX Laser Systems. IMAX Laser Systems present greater brightness and clarity, higher contrast, a wider color gamut and deeper blacks, consume less power and last longer than other digital projection technologies, and are capable of illuminating the largest screens in the IMAX network. #### IMAX Xenon Systems In 2008, the Company introduced its digital IMAX Xenon System. Prior to 2008, all of the IMAX Systems offered by the Company were film-based and required analog film prints. While the Company continues to support the Xenon network base, it is no longer offering this system for new signings. #### IMAX Film Systems IMAX Film Systems include various configurations, including 2D and 3D systems, and screen sizes. Following the introduction of the digital IMAX Xenon System in 2008, the number of IMAX Film Systems in the IMAX network decreased significantly. However, IMAX’s proprietary format, the IMAX 70mm Film System, continues to be a sought-after IMAX viewing experience. The existing network of 52 unique locations are being actively supported and leveraged for special event releases throughout the year such as with the 2023 release of *Oppenheimer* in IMAX 70mm film, which garnered significant consumer interest and demand for this format. The IMAX Film Systems were more recently in use for the re-release of *Interstellar* in 2024 and *Sinners* in April 2025, and will be used for *Project Hail Mary* in March 2026 and Christopher Nolan’s *The Odyssey* in July 2026. #### Backlog “Backlog” reflects the minimum number of commitments for IMAX Systems according to the signed contracts. The Company believes that the contractual obligations for IMAX System installations that are listed in the backlog are valid and binding commitments. The following table provides information about the Company’s backlog by deal type as of December 31, 2025 and 2024: *(In thousands of U.S. Dollars, except number of systems)* | | December 31, 2025 Number of Systems New | Upgrade | December 31, 2024 Number of Systems New | Upgrade | | --- | ---: | ---: | ---: | ---: | | Sales Arrangements(1) | 120 | 19 | 153 | 11 | | Hybrid JRSA(2) | 92 | — | 94 | — | | Traditional JRSA(2) | 91 | 112 | 108 | 74 | | Total | 303 | 131 | 355 | 85 | | (1)Includes Sales and Sales-Type Lease deal types. (2)The consideration owed under traditional joint revenue sharing arrangement (“JRSAs”) is typically a percentage of contingent box office receipts rather than a fixed upfront fee or fixed annual minimum payments. | | | | | From time to time, in the normal course of its business, the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals, or financing. Once the determination is made that the customer is unable to proceed with installation, the agreement with the customer may be terminated or amended. If the agreement is terminated and there are no future obligations under the agreement, all or a portion of the initial rents or fees that the customer previously made to the Company are recognized as revenue. (Refer to “Risk Factors ― The Company may not convert all of its backlog into revenue and cash flows” in Part I, Item 1A.) Certain of the Company’s contracts contain options for the exhibitor customer to elect to upgrade the system type configuration during the term or to alter the contract structure (for example, from a JRSA to a sale) after signing, but before installation. Backlog information as of December 31, 2025, reflects all known elections as of such date. ### IMAX MAINTENANCE 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. Annual maintenance fees are paid throughout the duration of the term of the system agreements. (Refer to “Manufacturing and Services—Maintenance and Extended Warranty Services” below.) ### OTHER PRODUCTS AND SERVICES #### Streaming and Consumer Technology IMAX’s Streaming and Consumer Technology (“SCT”) business offers a single unified program: IMAX Enhanced®. This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver *The* IMAX *Experience* to users across streaming platforms and consumer devices. The new IMAX Enhanced program for partners includes three core elements: 1\. IMAX Enhanced Live: Real-time enhancement for sports, concerts, and events using SCT’s proprietary technology to measure, enhance, optimize, and validate premium color, contrast, and clarity at the speed of live. 2\. IMAX Enhanced On-Demand: Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience. IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video. 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. As of December 31, 2025, IMAX Enhanced certified devices in-market are with partners including Sony Electronics, Hisense, TCL, LG, and Philips. The SCT products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have been integrated into the IMAX Enhanced program, streamlining operations and enabling partners to deliver premium viewing experiences validated through IMAX’s proprietary quality standards. IMAX’s SCT represents an extension of the IMAX brand and technology beyond traditional theatrical programming into live streaming for connected theaters and live and on-demand streaming home entertainment experiences. Leveraging IMAX’s globally recognized brand and proprietary technology, IMAX Enhanced is designed to drive consumer engagement and create incremental return on investment for content owners and rights holders. #### Other The Company derives a small portion of its revenue from other 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; and the provision of management services to three other theaters. ### MARKETING AND CUSTOMERS The Company markets IMAX Systems through a direct sales force and marketing staff located in offices in Canada, the United States, Greater China, Europe, and Asia. In addition, the Company has agreements with consultants, business brokers, and real estate professionals to locate potential customers for IMAX System locations for the Company on a commission basis. IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 commercial locations, of which there were 1,796 commercial IMAX Systems operating as of December 31, 2025, representing a market penetration of only 40%. Commercial multiplex systems are the largest part of the IMAX network, comprising 1,796 or 96%, of the 1,864 IMAX Systems in the IMAX network as of December 31, 2025. The Company’s institutional customers include science and natural history museums, zoos, aquariums, and other educational and cultural centers. The Company also sells or leases IMAX Systems to commercial destinations such as theme parks, private home theaters, tourist destination sites, fairs, and expositions. As of December 31, 2025, approximately 75% of total open and operational IMAX Systems were in locations outside of the United States and Canada. The following table provides detailed information about the IMAX network by system type and geographic location as of December 31, 2025 and 2024: | | December 31, 2025 Commercial Multiplex | Commercial Destination | Institutional | Total | December 31, 2024 Commercial Multiplex | Commercial Destination | Institutional | Total | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | United States | 385 | 4 | 24 | 413 | 370 | 4 | 24 | 398 | | Canada | 45 | 1 | 5 | 51 | 44 | 1 | 5 | 50 | | Greater China(1) | 797 | — | 13 | 810 | 796 | — | 13 | 809 | | Asia (excluding Greater China) | 201 | 1 | 2 | 204 | 185 | 1 | 2 | 188 | | Western Europe | 152 | 3 | 7 | 162 | 135 | 4 | 8 | 147 | | Latin America(2) | 64 | 1 | 6 | 71 | 62 | 1 | 7 | 70 | | Rest of the World | 152 | — | 1 | 153 | 143 | — | 2 | 145 | | Total(3) | 1,796 | 10 | 58 | 1,864 | 1,735 | 11 | 61 | 1,807 | | (1)Greater China includes China, Hong Kong, Taiwan, and Macau. (2)Latin America includes South America, Central America, and Mexico. (3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations. | | | | | | | | | ### INDUSTRY OVERVIEW ### Competition The out-of-home entertainment industry is very diverse with numerous companies vying for the public’s leisure time, and the Company faces competition as a consequence. Within the theatrical space, exhibitors and entertainment technology companies have introduced their own branded, large-screen 3D auditoriums or other premium theater systems, some of which include laser-based projectors, and in many cases have marketed those auditoriums or theater systems as having similar quality or attributes to an IMAX System. The rising consumer interest in premium cinematic experiences has resulted in demand for premium formats and may drive more investment into the Company’s competitors. The Company also faces in-home competition from a number of alternative film distribution channels such as subscription streaming services, transactional and advertiser-supported video-on-demand, internet, and broadcast and cable television. 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 may continue to face competition in the future from companies in the entertainment industry with new technologies and/or greater capital resources to develop and support them. The Company believes that its competitive strengths include the value of the IMAX brand name, the premium IMAX consumer experience and consumer loyalty, its relationships with prominent Hollywood and international filmmakers and other content creators (a number of whom desire to film their movies and events with IMAX cameras), the tailored distribution and marketing support by dedicated IMAX teams worldwide, and the return on investment of an IMAX System for exhibitors. Furthermore, from a technological perspective, the Company believes that its competitive strengths include the design, quality, and historic reliability rate of IMAX Systems (including the IMAX Laser Systems), the IMAX immersive sound system, the level of the Company’s service and maintenance, including its global Network Operations Centre (“NOC”) and extended warranty efforts, the number and quality of IMAX films that it distributes, the availability of Hollywood and international films to the IMAX network through IMAX Film Remastering technology, and the availability of unique and innovative events and experiences such as live streaming of sporting events, esports, distributed concerts, special theatrical screenings, and live Q&A sessions with top content creators. The Company believes that these competitive formats deliver overall experiences that are inferior to *The* IMAX *Experience* and do not have IMAX’s brand trust, filmmaker endorsement, loyal fan base, or global footprint and scale. ### Exhibitor and Studio Consolidation The Company’s primary customers are commercial multiplex exhibitors and studios. Since 2016, the commercial exhibitors and studios industry have undergone significant consolidation both domestically and internationally. For example, in 2025 South Korea’s Megabox and Lotte Cinema entered into a merger agreement and are expected to form that nation’s largest theatrical exhibition entity. The Company believes that such consolidation in the entertainment industry has helped facilitate the growth of the IMAX network. The Company has historically enjoyed strong relationships with large commercial exhibitor chains, which have greater capital to purchase, lease, or otherwise acquire IMAX Systems, and major Hollywood studios. The Company believes that consolidation can help strengthen existing relationships and add expanded opportunities. For example, as larger commercial chains such as American Multi-Cinema (“AMC”) and Cineworld have purchased smaller chains, those smaller chains have in turn become part of the IMAX network. For instance, following AMC’s acquisition of Odeon and Nordic in 2016, the Company and AMC entered into an agreement for 25 new IMAX Systems across the Odeon Cinemas Group Limited and Nordic Cinema Group Holding AB network. The Company believes that continued consolidation could facilitate further signings and other strategic benefits going forward. However, exhibitor consolidation has also resulted in individual exhibitor chains constituting a material portion of the Company’s revenue and network. The Company also receives revenues from studios and other creators for releasing content across the global IMAX platform. Hollywood studios have also experienced and continue to experience consolidation, as evidenced by the recent acquisitions of 20th Century Fox by Walt Disney Company and of Paramount Global by Skydance Media. In 2025, Warner Bros. Discovery (“WBD”) announced it was considering a sale of its assets and in December 2025, WBD announced it had signed a merger agreement with Netflix, although WBD continues to evaluate offers from Paramount Skydance. Studio consolidation could result in individual studios comprising a greater percentage of the Company’s business and overall Content Solutions segment revenue. The Company actively partners with more than 60 content owners worldwide, including increasingly streaming platforms such as Netflix, Amazon and Apple. Continued industry consolidation may present risks to the Company. (Refer to “Risk Factors – Consolidation among commercial exhibitors and studios reduces the breadth of the Company’s customer base, and could result in a narrower market for the Company’s products and reduced negotiating leverage. A deterioration in the Company’s relationship with key partners could materially and adversely affect the Company’s business, financial condition or results of operation. In addition, an adverse economic impact on a significant customer’s business operations could have a corresponding material adverse effect on the Company.” in Part I, Item 1A.) ### THE IMAX BRAND IMAX is a premier global technology platform for entertainment and events. The Company relies on its brand to communicate its market leadership and singular goal of creating entertainment experiences that exceed consumer expectations. Top filmmakers, studios, and other content creators use the IMAX brand to message that a film will connect with audiences in unique and extraordinary ways. The Company has a Filmed For IMAX program through which filmmakers partner closely with IMAX to craft films that fully leverage IMAX technology and where every frame, from inception, is intentionally designed to maximize *The* IMAX *Experience*. Global box office metrics have demonstrated that audiences respond favorably to Filmed For IMAX titles. To capture content in a resolution appropriate for IMAX screens, filmmakers utilize IMAX 65mm film cameras or IMAX-certified digital cameras with leading brands, including ARRI, Panavision, RED Digital Cinema, and Sony. When this content is paired with IMAX’s proprietary post-production process, the result is a truly immersive experience for IMAX audiences globally. The IMAX brand is a promise to deliver what today’s audiences crave, which is a memorable, more emotionally engaging, more thrilling and shareable experience. IMAX commissions ongoing third-party consumer research to measure the strength of its brand in numerous markets. The Company’s latest 2025 studies show that the IMAX brand is uniquely recognized as a leading, ultra-premium brand, and offers one of the most differentiated movie-going experiences. The IMAX brand has been also shown to signal a special, must-see event. Based on brand tracking research, the IMAX brand ranged from two to 10 times more powerful than other entertainment technology brands across various measures of brand equity and health. The Company believes that its strong brand equity supports consumers’ predisposition to choose IMAX over competing brands and to pay a premium for *The* IMAX *Experience.* ### RESEARCH AND DEVELOPMENT The Company believes that its proprietary expertise in digital and film-based projection and sound system component design, engineering, and imaging technology, particularly in laser-based technology results in superior, immersive content experiences for which the IMAX brand is known. A significant portion of the Company’s research and development efforts has been focused on the IMAX Laser Systems, which the Company believes are capable of illuminating the largest screens in the IMAX network and provide greater brightness and clarity, higher contrast, a wider color gamut and deeper blacks, while consuming less power and lasting longer than existing digital technology, to ensure that the Company continues to provide the highest quality, premier cinematic experience available to consumers. The Company has continued research and development aimed at creating more affordable laser-based solutions with various screen sizes for its commercial multiplex customers. The Company intends to continue research and development to further evolve its end-to-end technology. This includes bringing connectivity to the Company’s global network to support live and interactive events worldwide; expanding its live content streaming platform across the global IMAX network at scale; further improving its proprietary Film Remastering and distribution process for the delivery of content for both theatrical (including local language content) and home entertainment; further improving the reliability of its projectors; and enhancing the Company’s image and sound quality. The Company also continues to invest in new film cameras and other related technologies to bring bespoke capabilities and innovative technology to its 15/65mm camera fleet. The Company completed and deployed four of its all-new fleet of IMAX 65mm film cameras. The new film cameras offer enhanced image quality while incorporating new electronics and software, a more modern design, improved functionality, and breakthrough accompanying technologies that achieve significant noise reduction. Within the Company’s SCT business, there is ongoing research and development in perceptual metrics including novel measurement and optimization techniques. Investments are also being made to expand existing and/or develop new technologies that are expected to foster innovative content creation, enhance video and audio quality, support delivery at scale, and ensure premium presentation of content across consumer electronic devices. Furthermore, the Company intends to invest in activities that will capture opportunities to create/build AI and automation into its operations and processes. ### MANUFACTURING AND SERVICE ### Projector Component Manufacturing The Company assembles IMAX System projectors at its facility in Mississauga, Ontario, Canada (outside of Toronto). With a few exceptions, the Company develops and designs all of the key elements of the proprietary technology involved in this component. The fabrication of a majority of parts and sub-assemblies is subcontracted to a group of carefully pre-qualified third-party suppliers. Manufacture and supply contracts are signed for the delivery of the component on an order-by-order basis. The Company believes its significant suppliers will continue to supply quality products in quantities sufficient to satisfy its needs. The Company inspects all parts and sub-assemblies, completes the final assembly, and then subjects the projector to comprehensive testing individually and as a system prior to shipment. Historically, these projectors have had reliability rates based on scheduled shows of approximately 99%. ### Sound System Component Manufacturing The Company develops, designs, and assembles the key elements of the theater sound system component. The standard IMAX sound system component consists of parts from a variety of sources, with approximately 50% of the materials of each sound system attributable to proprietary parts provided under original equipment manufacturers agreements with outside vendors. These proprietary parts include custom loudspeaker enclosures and horns, specialized amplifiers, and signal processing and control equipment. The Company inspects all parts and sub-assemblies, completes the final assembly, and then subjects the sound system to comprehensive testing as a system. ### Screen and Other Components The Company purchases its screen components and glasses cleaning equipment from third parties. The standard screen system component consists of a projection screen manufactured to IMAX specifications and a frame to hang the projection screen. The glasses cleaning machine is a stand-alone unit that is connected to the theater’s water and electrical supply to automate the cleaning of 3D glasses. ### Maintenance and Extended Warranty Services The Company provides ongoing maintenance and extended warranty services to IMAX Systems. These arrangements are usually made for a separate fee from purchases. The maintenance and extended warranty arrangements include service, maintenance, and replacement parts for IMAX Systems. To support the IMAX network, the Company has personnel stationed in major markets throughout the world, including in its NOCs, who provide periodic and emergency maintenance and extended warranty services on existing IMAX Systems. The Company’s NOC is responsible for round-the-clock monitoring of the global IMAX network to ensure that every IMAX system has a consistent quality and performance level. The Company provides various levels of maintenance and warranty services, which are priced accordingly. Under full-service programs, Company personnel typically visit each IMAX location every six to twelve months to provide preventative maintenance, and cleaning and inspection services, as well as emergency visits to resolve problems and issues with the system. Under some arrangements, customers can elect to participate in a service partnership program whereby the Company trains a customer’s technician to carry out certain aspects of maintenance. Under such shared maintenance arrangements, the Company participates in certain of the customer’s maintenance checks each year, provides a specified number of emergency visits, and provides spare parts, as necessary. ### PATENTS AND TRADEMARKS The Company’s inventions cover various aspects of its proprietary technology and many of these inventions are protected by letters of patent or applications filed throughout the world, most significantly in the United States, Canada, China, India, Japan, France, Germany, and the United Kingdom. The subject matter covered by these patents and applications includes auditorium design and geometry, audio and display technology, mechanisms employed in projectors and projection equipment (including 3D projection equipment), stereoscopic (3D) imaging, digital remastering, dynamic range and contrast of projectors, seaming or superimposing images from multiple projectors, and other inventions relating to imaging technology, digital projection, laser projection, and video quality assessment. Included in the Company’s patent portfolio are patent families acquired from the Eastman Kodak Company covering laser projection technology. The Company has been and will continue to be diligent in the protection of its proprietary interests. As of December 31, 2025, the Company held 89 patents and had 13 patents pending in the United States and has corresponding patents or filed applications in many countries throughout the world. While the Company considers its patents to be important to the overall conduct of its business, it does not consider any particular patent essential to its operations. Certain of the Company’s patents expire between 2026 and 2043. The Company owns or otherwise has rights to trademarks and trade names used in conjunction with the sale of its products, systems, and services. The following trademarks are considered significant in terms of the current and contemplated operations of the Company: IMAX®, IMAX® 3D, Experience It In IMAX®, *The* IMAX *Experience®*, DMR®, Filmed For IMAX®, IMAX Live®, and IMAX Enhanced®. These trademarks are widely protected by registration or common law throughout the world. ### HUMAN CAPITAL The Company recognizes that effective human capital management is essential to its success. The Company’s objectives are centered on cultivating a positive culture and employee experience. By doing so, the Company aims to achieve higher levels of employee engagement, which positively impacts workforce retention, enhances performance, and drives greater innovation. As of December 31, 2025, the Company employed 679 people, with 467 working outside of the United States. ### People Strategy To achieve these objectives, the Company’s people strategy focuses on the following areas: - The Company is committed to building a compelling employee brand that attracts top talent. - The Company connects employees with its purpose and values, giving them opportunities to make meaningful contributions. - The Company’s competitive Total Rewards Program recognizes and rewards employee contributions. - The Company maintains a strong emphasis on safety to ensure a secure and supportive work environment. ### Recruiting Talent The Company believes that a varied team of committed employees with a broad range of backgrounds and experiences is essential to meeting the needs of its clients, partners, and moviegoers. To support this goal, the Company promotes fair and merit-based interview and hiring practices and provides training for all hiring managers. The Company’s talent acquisition strategy includes leveraging global job boards, engaging with community organizations, partnering with universities, monitoring labor market trends within the industry, and maintaining connections with IMAX alumni. In addition, the Company has adopted and continues to evaluate technologies and solutions designed to enhance the candidate experience and strengthen overall talent management capabilities. ### Engaging Employees The Company believes that a strong organizational culture and a positive employee experience are critical drivers of engagement and performance. In 2025, the Company conducted an engagement survey and, based on employee feedback, developed a comprehensive plan to further enhance the work environment and overall employee experience. Key areas of focus include increasing pay and promotion transparency, strengthening cross-team collaboration, improving employee well-being through deeper leadership connections, and promoting greater consistency in workplace flexibility within the Company’s framework. These initiatives are designed to help employees remain engaged, perform at their highest potential, and stay committed to achieving the Company’s business objectives. To sustain progress, the Company implemented an ongoing listening strategy that includes pulse surveys and global virtual focus groups to monitor engagement and is designed to identify opportunities for improvement on an ongoing basis. ### Offering Competitive Total Rewards The Company’s Total Rewards Program is designed to attract, retain, and motivate a highly skilled and varied workforce by offering a competitive and comprehensive mix of compensation, benefits, and well-being resources. The program supports employee engagement and performance while promoting a workplace environment that enables employees to thrive personally and professionally. Key initiatives to strengthen this program include the following: - *Well-Being Strategy Expansion* The Company advanced the global well-being strategy introduced in 2024 by continuing to build a structured and holistic framework across emotional, physical, financial, and social health. In 2025, the Company expanded employee support through the launch of a wellness program, a refreshed Employee Assistance Program, and the introduction of a financial wellness platform offering personalized guidance and advisor support. - *Benefits Modernization* The Company continued its multi-year modernization of global benefits to create a more flexible and accessible employee experience. In 2025, the Company prepared for its North America open enrollment cycles and enhanced regional programs to align more closely with evolving employee needs. In Canada, the Company expanded employee choice by enabling the use of flex credits toward Registered Retirement Savings Plan contributions, supporting long-term financial planning and individual flexibility. - *Compensation Governance and Incentive Plan Review* The Company advanced its review of incentive compensation programs, including updates to business unit and performance factor methodologies and enhancements to plan governance. These efforts are intended to promote internal equity, market competitiveness, and long-term alignment between employee outcomes and Company performance. - *HR Technology Optimization* The Company progressed its HR technology roadmap, expanded process automation, and planning for future AI-enabled capabilities. These initiatives are designed to improve data accuracy, strengthen operational consistency, and enhance employee experience across all stages of the employment lifecycle. - *Employee Experience and Information Accessibility* The Company enhanced its global digital human resource platform that provides centralized access to Total Rewards, benefits, well-being resources, and human resource policies. In 2025, the Company made updates to its platform to improve usability, consistency, and transparency, supporting a more seamless and informed employee experience. ### Employee Safety The Company recognizes that potential risks to employee safety exist across various aspects of its operations. To mitigate these risks, the Company established a comprehensive workplace safety management system that provides a structured framework for identifying hazards, assessing risks, and implementing effective controls. This system is supported by an internal responsibility model that includes safety committees with employee representatives at all locations. Every employee is expected to actively participate in safety planning and awareness training and activities, while managers are accountable for executing safety programs within their respective areas of responsibility. Through these measures, the Company strives to maintain a safe and healthy work environment for all employees. ### AVAILABLE INFORMATION The Company makes available, free of charge, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to such reports, as soon as reasonably practicable after such filings have been made with the SEC and Canadian securities regulators. Reports may be obtained free of charge through the SEC’s website at www.sec.gov or the SEDAR+ website at www.sedarplus.ca and through the Company’s Investor Relations website at www.imax.com or by calling the Company’s Investor Relations Department at 212-821-0154. The Company announces material information to the public through a variety of means, including filings with the SEC and Canadian securities regulators, press releases, public conference calls, and its website at www.imax.com. The Company uses these channels to communicate with investors and the public about the Company, its products and services, and other matters. Therefore, investors are encouraged to review the information the Company makes public in these locations, as such information could be deemed to be material information. No information included on the Company’s website shall be deemed included or otherwise incorporated into this Form 10-K, except where expressly indicated. All references to the Company’s website are intended to be inactive textual references only. ## Risk factors As filed, 66,372 characters. 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 Form 10-K. The following risk factors should be read in conjunction with the balance of this Form 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. ### RISKS RELATED TO THE COMPANY’S BUSINESS AND OPERATIONS ***General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems.*** 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. The majority of the Company’s revenue comes from its Technology Products and Services segment. The Technology Products and Services segment earns revenues principally from the sale or lease of IMAX Systems, a portion of which is directly derived from the box office results of the IMAX locations. If consumers’ discretionary income globally or in a particular geography falls for any reason, including an economic downturn or recession, sustained inflationary conditions, high interest rates, and supply chain issues, and/or movie-going becomes less popular and consumers’ willingness to purchase tickets to IMAX locations declines, the Company’s business and revenues may be adversely affected as a result. Furthermore, sustained inflationary pressures observed globally could materially increase the cost of goods, services and personnel, which could cause an increase in the Company’s operating costs. The Company also depends on exhibitors to purchase, lease, and install IMAX Systems and to supply venues in which to exhibit IMAX films. The Company is unable to predict the pace at which exhibitors will purchase, lease, or 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 or other economic headwinds, exhibitors may choose to reduce their levels of presence or expansion, be less willing to invest capital in IMAX Systems, negotiate economic terms that are less favorable to 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 business and revenue. ***The Company’s success is directly related to the availability and success of the IMAX remastered films and other content released to the IMAX network.*** An important factor affecting the Company’s growth is the availability and strategic selection of content for IMAX locations and the performance of such content. The Company itself produces only a small amount of content and, as a result, the Company relies principally on content produced by third-party content creators, including both Hollywood and local language features converted into the IMAX format. In 2025, 126 films and other content (122 new films and 4 re-releases) were released to the Company’s global network. There is no guarantee that content creators will continue to release content to the IMAX network, or that the content 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 JRSAs, as well as through the percentage of the GBO 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 local language films to IMAX’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. Furthermore, if global box office results of the films released to the IMAX network are not satisfactory or if the scale of the IMAX network declines or does not increase at the same rate as anticipated, studios may be less willing to convert their films into IMAX’s format for exhibition in IMAX locations, which would adversely impact the Company’s revenue generated from both Film Remastering and Distribution of content across the IMAX network. For additional discussion of the risks related to IMAX Systems and network, please read the above risk factor titled “—*General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems.”* ***The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.*** Since 2025, the U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs and changes in U.S. participation in multilateral trade agreements, while other countries, China and Canada in particular, have undertaken retaliatory measures in response to such changes. While many of the tariffs implemented by the U.S. government were struck down by the U.S. Supreme Court on February 20, 2026, the full extent of the impact of this ruling is uncertain and the impact of previously implemented tariffs and trade policies or of tariffs and trade policies announced in the future could adversely impact the Company’s operations, costs and expenses applicable to revenues and cash flows. The Company continues to closely monitor these developments (including whether tariff refunds may be available in light of the recent judicial decision), and there can be no guarantees that further changes to U.S. trade policy and/or retaliatory actions by other countries will not occur. Additionally, uncertainty about global trade relationships has and may continue to increase market volatility, currency exchange rate fluctuation, and economic instability, which may adversely impact the Company’s results of operations. Furthermore, any resulting downturn or increase in geopolitical tensions may adversely impact consumers’ discretionary income and/or consumer purchasing behavior, which could have a material adverse effect on box office receipts and on the Company’s results of operations and financial condition. The extent and duration of previously implemented tariffs and retaliatory actions, the potential changes in tariffs and trade policies in light of the Supreme Court ruling, and the resulting impacts on general economic conditions around the world and on the global filmed entertainment industry in particular, are uncertain and depend on numerous factors, such as the responses of and negotiations among the affected countries. As such, the Company cannot predict the impact to its business from any future changes to the trading relationships between the United States and other countries or the impact of new laws or regulations adopted by the United States or other countries. Furthermore, any adverse development in these areas could exacerbate other risks discussed in “—*The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales, and future growth prospects,” “—The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,”* and “—*General political, social and economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems.”* ***The Company is undertaking brand extensions and new business initiatives, and the Company’s investments and efforts in such business evolution may not be successful.*** 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, including 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 dependent on consumer demand, over which the Company has no control. The Company has also invested in the connection of the IMAX network to facilitate bringing more unique content, including broadcasts of live events, to IMAX audiences in theaters. New initiatives could also involve acquisitions or the formation of joint ventures and business alliances. New business initiatives 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 initiatives 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 Company faces cybersecurity and similar risks, which could result in the disclosure, theft, or loss of confidential or other proprietary information, including intellectual property, damage to the Company’s brand and reputation, legal exposure and financial losses. The Company must also comply with a variety of data privacy regulations and failure to comply with such regulations may adversely affect the Company’s financial performance.*** 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 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. Such attacks could compromise the Company’s security measures or the security measures of parties with which 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. While the Company seeks to monitor such attempts and incidents and to prevent their recurrence through monitoring and modifications, if needed, to the Company’s internal procedures and information technology infrastructure, and provides information security training and compliance program to its employees on an annual basis, 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, or 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, the California Consumer Privacy 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, or damage to the Company’s reputation, among other negative consequences, any of which could have a material adverse effect on its financial performance. ### RISKS RELATED TO THE COMPANY’S INTERNATIONAL OPERATIONS ***The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales, and future growth prospects.*** 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 December 31, 2025, approximately 72% of IMAX Systems in backlog were scheduled to be installed in international markets. The Company’s network spanned 91 different countries as of December 31, 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 risks, among others, include: #### Operational and Supply Chain Risks - difficulties in obtaining competitively priced key commodities, raw materials, and component parts from various international sources that are needed to manufacture quality products on a timely basis; - dependence on foreign distributors and their sales channels; - reliance on local partners, including in connection with JRSAs; - difficulties in staffing and managing foreign operations; - inability to complete installations of IMAX Systems, including as a result of material disruptions or delays in the Company’s supply chains, or collect full payment on installations thereof; - public health concerns, including pandemics or epidemics, and regulations in response thereto, which could adversely affect the Company’s and its customers’ operations; and - harm to the IMAX brand from operating in countries with records of controversial government action, including human rights abuses. #### Financial and Macroeconomic Risks - fluctuations in the value of foreign currencies versus the U.S. Dollar, potential currency devaluations, and imposition of foreign exchange controls in foreign jurisdictions; - adverse changes in foreign government monetary and/or tax policies, and/or difficulties in repatriating cash from foreign jurisdictions (including with respect to China, where approval of the State Administration of Foreign Exchange is required); - requirements to provide performance bonds and letters of credit to international customers to secure IMAX System component deliveries; - less accurate and/or less reliable box office reporting; - difficulties in establishing market-appropriate pricing; and - economic conditions in foreign markets, including inflation. #### Geopolitical, Trade, and Regulatory Compliance Risks - new and potentially changing tariffs, trade protection measures, import or export licensing requirements, trade embargoes, sanctions and export controls, and other trade barriers, including but not limited to planned, implemented or threatened tariffs and retaliatory responses thereto, or the residual impacts and uncertainty as a result of changes in tariff or trade policy; - new restrictions on access to markets, both for IMAX Systems and content; - unusual or burdensome foreign laws or regulatory requirements or unexpected changes to those laws or requirements, including censorship of content that may restrict what films or other content are exhibited across the Company’s network; - local business practices that can present challenges to compliance with applicable anti-corruption and bribery laws; - poor recognition of intellectual property rights; - difficulties in enforcing contractual rights; and - war, conflict, geopolitical tensions and other political, economic and social instability, terrorist attacks and security concerns, such as escalating tensions in the Taiwan Strait, the ongoing conflict between Russia and Ukraine (the Company has 54 theaters in Russia where IMAX services have been suspended), and tensions in the Middle East (including intensified discussions around regime change in Iran), which could result in consequences, including adverse consequences, for the Company’s interests in different regions of the world. Additionally, global geopolitical 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, the ongoing conflict between Russia and Ukraine and responses thereto have had and may continue to have an adverse impact on the Company’s business and results of operations in affected regions, including the continued suspension of the Company’s operations 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 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. ***The Company faces risks in connection with its significant presence in China and the continued expansion of its business there.*** As of December 31, 2025, the Company had 810 IMAX Systems operating in Greater China with an additional 215 systems in backlog, which represent 50% of the Company’s current backlog. Of the IMAX Systems currently scheduled to be installed in Greater China, 82% are under 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 changes in laws and regulations, currency fluctuations, increased competition, and changes in economic conditions, including 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. A slowdown of China’s economic growth in 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 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 of 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. Certain risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law regulates both the scope of the Company’s continued expansion in China and the Company’s business within China. For instance, the Chinese government regulates the number, timing, and terms of Hollywood films released to the China market. The Company cannot provide assurance that the Chinese government will continue to permit the release of Hollywood IMAX films in China or that the timing, number or performance of IMAX releases will be favorable to the Company. There are also uncertainties regarding the interpretation and application of laws and regulations and the enforceability of intellectual property and contract rights in China. If the Company were unable to navigate China’s regulatory environment, or if the Company were unable to enforce its intellectual property or contract rights in China, the Company’s business could be adversely impacted. Ongoing political tensions between China and the United States could exacerbate any or all of these risks. Although the United States and China 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 the U.S.-China relationship could heighten the foregoing risks, could impact the Company’s future net income and cash flows and could cause the Company to fail to achieve anticipated growth in China and/or monetize its current assets. ### The Company may experience adverse effects due to exchange rate fluctuations. A majority of the Company’s revenues is denominated in U.S. Dollars while a substantial portion of its expenses is denominated in Canadian Dollars. While the Company seeks to manage its exposure to foreign exchange rate risks through its regular operating and financing activities and, when appropriate, through the use of derivative financial instruments, the Company may not be successful in reducing its exposure to these fluctuations. The use of derivative financial 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 content generates box office dependent revenue in 91 different countries as of December 31, 2025, unfavorable exchange rates between applicable local currencies and the U.S. Dollar can affect the GBO generated by the Company’s exhibitor customers and its revenues. ### RISK RELATED TO THE COMPANY’S INDUSTRY AND COMPETITIVE ENVIRONMENT ***Consolidation among commercial exhibitors and studios reduces the breadth of the Company’s customer base, and could result in a narrower market for the Company’s products and reduced negotiating leverage. A deterioration in the Company’s relationship with key partners could materially and adversely affect the Company’s business, financial condition or results of operation. 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’s primary customers are commercial multiplex exhibitors. Since 2016, the commercial exhibition industry has undergone significant consolidation both domestically and internationally. For example, in 2025, South Korea’s Megabox and Lotte Cinema entered 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 8% of the Company’s total revenues in 2025. As of December 31, 2025, through the Company’s partnership with Wanda, there were 393 IMAX Systems operational in Greater China and Wanda represented approximately 21% of the global network and 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 IMAX Systems in backlog with Wanda are opened. No assurance can be given that significant customers, such as Wanda, will continue to purchase IMAX Systems and/or enter into JRSA 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 the 2025 acquisition of Paramount by Skydance and a potential acquisition of Warner Bros. Studio consolidation could result in individual studios comprising a greater percentage of the Company’s business and overall Content Solutions segment 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. ***Failure to respond adequately or in a timely fashion to changes and advancements in technology could negatively affect the Company’s business.*** 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 continues to invest in other projects, including the development of new SCT product offerings and improvements to its existing product 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 be developed within the timeframe expected. AI 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, 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 introduction of new, competing products and technologies could harm the Company’s business.*** The entertainment industry is very competitive. The Company faces competition in both in-home and out-of-home entertainment, including within the theatrical space. For example, according to research conducted by Omdia, there were approximately 35,000 conventional-sized screens in North American commercial multiplexes in 2024. In addition, exhibitors and entertainment technology companies have introduced their own branded, large-screen 3D auditoriums or other premium 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 rising consumer interest in premium cinematic experiences has resulted in demand for premium formats and could drive more investment into the Company’s competitors. If the Company is unable to continue to produce theater systems or provide experiences which are premium to, or differentiated from, other theater systems or entertainment experiences, 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, 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. The Company may in turn be adversely affected by the challenges faced by its exhibitor customers. The Company also faces in-home competition from a number of alternative content distribution channels such as streaming services, video-on-demand, internet, and broadcast and cable television. The average exclusive theatrical release window for films 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 further, which could have an adverse impact on the Company’s business and results of operations. Furthermore, there can be no assurance that film studios will not increase the direct or concurrent release of films to streaming services 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 may not be able to adequately protect its intellectual property, and competitors could misappropriate its technology or brand, which could weaken its competitive position.*** The Company depends on its proprietary knowledge regarding IMAX Systems including digital, audio, and film 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. The Company owns patents issued and patent applications pending, including those covering its digital projector, digital conversion technology, laser illumination technology, and other inventions relating to imaging technology and video quality assessment. The Company’s patents are filed in the United States, often with corresponding patents or filed applications in other jurisdictions, such as Canada, China, Belgium, Japan, France, Germany, and the United Kingdom. The patent applications pending may not be issued or the patents may not provide the Company with any competitive advantage. The patent applications may also be challenged by third parties. Several of the Company’s issued patents expire between 2026 and 2043. If the Company’s patent claims are rendered invalid or unenforceable, or narrowed in scope, the patent coverage afforded the Company’s products and services could be impaired, which could negatively affect its competitive position. In addition, competitors and other third parties may be able to circumvent or design around the Company’s patents and may develop and obtain patent protection for more effective technologies. If these developments were to occur, it could have an adverse effect on the Company’s sales or market position. 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. The Company relies upon trade secrets and other confidential and proprietary know-how to develop and maintain the Company’s competitive position. While it is the Company’s policy to enter into agreements imposing nondisclosure and confidentiality obligations upon its employees and third parties to protect the Company’s intellectual property, these obligations may be breached, may not provide meaningful protection for the Company’s trade secrets or proprietary know-how, or adequate remedies may not be available in the event of an unauthorized access, use or disclosure of the Company’s trade secrets and know-how. Furthermore, despite the existence of such nondisclosure and confidentiality agreements, or other contractual restrictions, the Company may not be able to prevent the unauthorized disclosure or use of its confidential proprietary information or trade secrets by consultants, vendors and employees. In addition, others could obtain knowledge of the Company’s trade secrets through independent development or other legal means. The Company believes that protecting the IMAX brand is a critical element in maintaining the Company’s relationships with studios and its exhibitor clients and building and maintaining brand loyalty and recognition. Though the Company relies on a combination of trademark and copyright law as well as its contractual provisions to protect the IMAX brand, those protections may not be adequate to prevent erosion of the brand over time, particularly in foreign jurisdictions. Erosion of the brand could threaten the demand for the Company’s products and services and impair its ability to grow future revenue streams. In addition, if any of the Company’s registered or unregistered trademarks, trade names or service marks is challenged, infringed, circumvented, declared generic or determined to be infringing on other marks, it could have an adverse effect on the Company’s sales or market position. ***The Company may be subject to claims of infringement of third-party intellectual property rights that are costly to defend, result in the diversion of management’s time and efforts, require the payment of damages, limit the Company’s ability to use particular technologies in the future or prevent the Company from marketing its existing or future products and services.*** The Company’s commercial success depends in part on not infringing, misappropriating, or violating the intellectual property rights of others. A third party could assert a claim against the Company for alleged infringement of its patent, copyright, trademark, or other intellectual property rights, including in relation to technologies that are important to the Company’s business. The Company may not be aware of whether its products or services do or will infringe existing or future patents or the intellectual property rights of others. In addition, there can be no assurance that one or more of the Company’s competitors who have developed competing technologies or the Company’s other competitors will not be granted patents for their technology and allege that the Company has infringed. Any claims that the Company’s business infringes the intellectual property rights of others, regardless of the merit or resolution of such claims, could entail significant costs in responding to, defending, and resolving such claims. An adverse determination in any intellectual property claim could require the Company to pay damages and/or stop using its technologies, trademarks, copyrighted works, and other material found to be in violation of another party’s rights and could prevent the Company from licensing its technologies to others unless the Company enters into royalty or licensing arrangements with the prevailing party or are able to redesign its products and services to avoid infringement. Such a license may not be available on reasonable terms, if at all, and there can be no assurance that the Company would be able to redesign its services in a way that would not infringe the intellectual property rights of others. If the Company was required to make payments or comply with an injunction as a result of any infringement, its reputation and financial results could be harmed. ### RISKS RELATED TO THE COMPANY’S REVENUES, EARNINGS, AND FINANCIAL POSITION ***The Company’s operating results and cash flow can vary substantially from period to period and could increase the volatility of its share price.*** The Company’s operating results and cash flow can fluctuate substantially from period to period. Fluctuations in IMAX System installations and IMAX GBO, particular, can materially affect operating results. Factors that have affected the Company’s operating results and cash flow in the past, and are likely to affect its operating results and cash flow in the future, include, among other things: - the timing of signing and installation of new IMAX Systems (particularly for installations in newly-built multiplexes, which can result in delays that are beyond the Company’s control); - the timing and commercial success of films distributed to the worldwide IMAX network; - the demand for, and acceptance of, the Company’s products and services; - the timing of revenue recognition of sale and sales-type leases; - the classification of leases as sales-type versus operating; - the level of its sales backlog; - the signing of Film Remastering and distribution agreements; - the financial performance of IMAX Systems operated by the Company’s exhibitor customers; - financial difficulties faced by customers; - the magnitude and timing of spending in relation to the Company’s research and development efforts and related investments, as well as new business initiatives, and the success thereof; and - the number and timing of JRSA installations, related capital expenditures, and related cash receipts. Most of the Company’s operating expenses are fixed in the short term. The Company may be unable to rapidly adjust its spending to compensate for any unexpected shortfall in sales or revenue, which would harm operating results for a particular period. ***The Company’s systems revenue can vary significantly from its cash flows under IMAX System sales or lease agreements.*** The Company’s systems revenue can vary significantly from the associated cash flows. The Company often provides financing to customers for IMAX Systems on a long-term basis through long-term sale or lease arrangements. The terms of these arrangements are typically 10 to 20 years with renewal provisions and provide for three major sources of cash flow to the Company: - initial fees, which are paid in installments generally commencing upon the signing of the agreement until installation of the IMAX System; - ongoing fees, which are paid monthly after the IMAX System has been opened to the public and are generally equal to the greater of a fixed minimum amount per annum or a percentage of box office receipts; and - ongoing annual maintenance and extended warranty fees, which are generally payable annually or quarterly. Initial fees generally make up the vast majority of cash received by the Company under IMAX System sales or sales-type lease agreements. For sale and sales-type leases, the revenue recorded is generally equal to the sum of initial fees and the present value of any future annual minimum payments. Sales arrangements may also include the present value of the estimated future variable consideration based on forecasted box office performance for the term. Cash received from initial fees in advance of meeting the revenue recognition criteria for the IMAX Systems is recorded as deferred revenue. The Company also provides IMAX Systems to customers through JRSAs, which typically have an initial term of 10 years or longer. Under the traditional form of JRSA, in exchange for providing the IMAX System under a long-term lease, the Company earns rental revenues based on a percentage of contingent box office receipts rather than a fixed upfront fee or annual minimum payments. Under hybrid JRSA arrangement, the Company receives a reduced fixed upfront payment and a percentage of contingent box office receipts. For certain of JRSAs that are classified as operating leases, initial fees and fixed minimum ongoing payments are recognized as revenue on a straight-line basis over the lease term. Contingent payments in excess of fixed minimum ongoing payments are recognized as revenue when reported by customers, provided collectability is reasonably assured. As a result of the above, the revenue set forth in the Company’s Consolidated Financial Statements does not necessarily correlate with the Company’s cash flow or cash position. Revenues include the present value of future contracted cash payments, and there is no guarantee that the Company will receive such payments if its customers default on their payment obligations or if box office does not actualize as forecasted. ### The Company may not convert all of its backlog into revenue and cash flows. As of December 31, 2025, the Company’s backlog included 434 IMAX Systems, consisting of 139 IMAX Systems under sales or lease arrangements and 295 IMAX Systems under JRSAs. The Company lists signed contracts for IMAX Systems for which revenue has not been recognized as backlog prior to the time of revenue recognition. The total value of the backlog represents all binding IMAX System sale or lease agreements scheduled to be installed in the future. Notwithstanding their legal obligations, some of the Company’s exhibitor customers may be delinquent in their contractual payments and/or not accept delivery of IMAX Systems that are included in the Company’s backlog. An economic or industry downturn may exacerbate exhibitor customer liquidity constraints and the risk of customers not accepting delivery of IMAX Systems. Construction projects that are linked to the construction of new malls are particularly susceptible to economic downturns and delays. Customers with system obligations in backlog sometimes request that the Company agree to modify or reduce such obligations, which the Company has agreed to do in the past under certain circumstances, and may agree to do in the future. Customer-requested delays in the installation of IMAX Systems in backlog remain a recurring and unpredictable part of the Company’s business, especially in China. A slow down in China’s economic growth in the past has caused several of the Company’s exhibition partners operating in China to delay payment or theater system installation obligations to the Company. Any reduction or change in backlog could adversely affect the Company’s future revenues and cash flows. ***The Company’s inability to enter into renewals of new sales and lease agreements on favorable terms or at all would adversely affect its cash flows and operating results.*** As of December 31, 2025, approximately 7% of the Company’s sales and lease agreements were due to expire in the ensuing 12 months. If these agreements are not renewed, or if the Company is unable to enter into new leases agreements comparable to those currently in effect in a timely manner, then the Company’s systems revenue could be adversely affected. ***The Company’s revenues from existing customers are derived in part from financial reporting provided by its customers, which may be inaccurate or incomplete, resulting in lost or delayed revenues.*** A portion of the Company’s revenue is based upon financial reporting provided by its customers. If such reporting is inaccurate, incomplete, or withheld, the Company’s ability to receive the appropriate payments it is owed in a timely fashion may be impaired. While the Company has the contractual ability to audit IMAX locations, this may not rectify payments lost or delayed as a result of customers not fulfilling their contractual obligations with respect to financial reporting. ***There is collection risk associated with payments to be received over the terms of the Company’s agreements.*** The Company is dependent in part on the viability of its customers for collections under the Company’s agreements. Exhibitors, other operators or smaller production studios may experience financial difficulties that could cause them to be unable to fulfill their contractual payment obligations to the Company. As a result, the Company’s future revenues and cash flows could be adversely affected. ***The Company has been and may continue to be subject to impairment losses on its film assets if such assets do not meet management’s estimates of total revenues.*** The Company amortizes its film assets, including IMAX Film Remastering costs capitalized using the individual film forecast method, whereby the costs of film assets are amortized and participation costs are accrued for each film in the ratio of revenues earned in the current period to management’s estimate of total revenues ultimately expected to be received for that title. Management regularly reviews, and revises when necessary, its estimates of ultimate revenues on a title-by-title basis, which may result in a change in the rate of amortization of the film assets and write-downs or impairments of film assets. Results of operations in future years will include the amortization of the Company’s film assets and may be significantly affected by periodic adjustments in amortization rates. ***The Company has been and may continue to be subject to impairment losses on its inventories if they become obsolete.*** The Company records write-downs for excess and obsolete inventories based upon current estimates of future events and conditions, including the anticipated installation dates for the current backlog of IMAX System contracts, technological developments, signings in negotiation and anticipated market acceptance of the Company’s current and pending IMAX Systems. ***The Company has been and may continue to be subject to impairment losses related to goodwill and long-lived assets.*** Under United States Generally Accepted Accounting Principles (“U.S. GAAP”), the Company tests goodwill annually for impairment and more frequently if events or changes in circumstances indicate that goodwill may be impaired. The Company also tests long-lived assets for impairment if events or changes in circumstances indicate that such assets with an asset group may be impaired. These events and circumstances may include a significant change in legal factors or in the business climate, a significant decline in the Company’s share price, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant disposal activity and the testing of recoverability for a significant asset group. If it is determined that sufficient future cash flows do not exist to support the current carrying value, the Company will be required to record an impairment charge in order to adjust the value of these assets to the newly established estimated value. The Company may be required to record a significant charge to earnings in its Consolidated Financial Statements during the period in which any other impairment of its goodwill or long-lived assets is determined. For additional information, see Note 12 to the Consolidated Financial Statements. ### RISKS RELATED TO THE COMPANY’S COMMON SHARES ***The market price for the Company’s common shares has historically been volatile and declines in market price, may negatively affect its ability to raise capital, issue debt, secure customer business, and retain employees.*** The Company is listed on the New York Stock Exchange (“NYSE”) and its publicly traded shares have in the past experienced, and may continue to experience, significant price and volume fluctuations. This market volatility could reduce the market price of its common shares, regardless of the Company’s operating performance. A decline in the capital markets generally, or an adjustment in the market price or trading volumes of the Company’s publicly traded securities, may negatively affect the Company’s ability to raise capital, issue debt, secure customer business or retain employees. These factors, as well as general economic and geopolitical conditions, may have a material adverse effect on the market price of the Company’s publicly traded securities. ***Because the Company is incorporated in Canada, it may be difficult for plaintiffs to enforce against the Company liabilities based solely upon United States federal securities laws.*** The Company is incorporated under the federal laws of Canada, some of its directors and officers are residents of Canada and a substantial portion of its assets and the assets of such directors and officers are located outside the United States. As a result, it may be difficult for U.S. plaintiffs to effect service within the United States upon those directors or officers who are not residents of the United States, or to obtain or enforce against them or the Company judgments of U.S. courts predicated solely upon civil liability under the U.S. federal securities laws. In addition, it may be difficult for plaintiffs to bring an original action outside of the United States against the Company to enforce liabilities based solely on U.S. federal securities laws. ### RISKS RELATED TO THE COMPANY’S INDEBTEDNESS ***The Company’s debt agreements contain significant restrictions that limit its operating and financial flexibility.*** The credit agreement governing the Company’s senior secured credit facility contains certain restrictive covenants that, among other things, limit its ability to: - incur additional indebtedness; - pay dividends and make distributions; - repurchase stock; - make certain investments; - transfer or sell assets; - create liens; - enter into transactions with affiliates; - issue or sell stock of subsidiaries; - create dividend or other payment restrictions affecting restricted subsidiaries; and - merge, consolidate, amalgamate, or sell all or substantially all of its assets to another person. In addition, certain provisions in the Company’s 0.750% Convertible Senior Notes due 2030 (the “2030 Convertible Notes”) and the related indenture could make a third-party attempt to acquire the Company more difficult or expensive, discouraging a third party from acquiring the Company or removing incumbent management, which holders of the Company’s common shares may view as favorable. These restrictive covenants impose operating and financial restrictions on the Company that limit its ability to engage in acts that may be in the Company’s long-term best interests. ***The Company’s indebtedness and liabilities could limit the cash flow available for its operations, and expose the Company to risks that could adversely affect its business, financial condition, and results of operations.*** As of December 31, 2025, the Company had approximately $413.4 million of consolidated indebtedness and liabilities. The Company may also incur additional indebtedness to meet future financing needs. The Company’s indebtedness could have significant negative consequences for its security holders and its business, results of operations and financial condition by, among other things: - increasing its vulnerability to adverse economic and industry conditions; - limiting its ability to obtain additional financing; - requiring the dedication of a substantial portion of its cash flow from operations to service its indebtedness, which will reduce the amount of cash available for other purposes; - limiting its flexibility to plan for, or react to, changes in its business; - diluting the interests of its shareholders as a result of issuing common shares upon conversion of the 2030 Convertible Notes; - holders of the 2030 Convertible Notes may, subject to certain conditions, require the Company to repurchase their 2030 Convertible Notes following a fundamental change; and - placing the Company at a possible competitive disadvantage with competitors that are less leveraged than the Company or have better access to capital. The Company’s business may not generate sufficient funds, and the Company may otherwise be unable to maintain sufficient cash reserves, to pay amounts due under its indebtedness, and the Company’s cash needs may increase in the future. In addition, the Credit Agreement contains, and any future indebtedness that the Company incurs may contain, financial and other restrictive covenants that limit its ability to operate, raise capital or make payments under its other indebtedness. If the Company fails to comply with these covenants and that of other debt agreements or to make payments under its indebtedness when due, then the Company would be in default under that indebtedness, which could, in turn, result in that and the Company’s other indebtedness becoming immediately payable in full. A description of the Company’s outstanding indebtedness is provided in Note 13 to “Consolidated Financial Statements” in Part II, Item 8. ### GENERAL RISK FACTORS ***The loss of one or more of the Company’s key personnel, or its failure to attract and retain its employee population, could adversely affect its business.*** The Company’s operations and prospects depend in large part on the performance and continued service of its senior management team. The competition for experienced senior management in the Company’s industry is intense, and the Company may not find qualified replacements for any of these individuals if their services are no longer available on the same terms or at all. The loss of the services of one or more members of the Company’s senior management team could adversely affect its ability to effectively pursue its business strategy. In addition, the Company may experience challenges with respect to employee retention given the current competitive labor market. A number of external factors beyond the Company’s control, including its industry’s highly competitive market for skilled workers and leaders, cost inflation, and workforce participation rates, may negatively affect the Company’s ability to retain and attract qualified employees. If the Company experiences high attrition rates in its employee population, the results of its operations may be adversely affected. ***Changes in accounting and changes in management’s estimates may affect the Company’s reported earnings and operating income.*** U.S. GAAP and accompanying accounting pronouncements are highly complex and involve many subjective judgments. Changes in these rules, their interpretation, management’s estimates, or changes in the Company’s products or business could significantly change its reported future earnings and operating income and could add significant volatility to those measures, without a comparable underlying change in cash flow from operations. More information is provided in “Critical Accounting Estimates” within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7. ***Regulatory and market responses to climate change concerns may negatively impact our business and increase our operating costs.*** Public concern about climate change and governmental attention to climate matters has resulted in expanding mandatory and voluntary reporting, diligence, and disclosure on topics such as climate change impacts, carbon emissions, water usage, waste management, and risk oversight and has expanded and may continue to expand the nature, scope, and complexity of matters that the Company is required to control, assess, and report. Furthermore, regulatory efforts to combat climate change could result in increases in the cost of raw materials, taxes, transportation and utilities for the Company’s suppliers and vendors which would result in higher operating costs for the Company and potentially impact the availability of components used in the IMAX Systems. These and other rapidly changing laws, regulations, policies, interpretations, and expectations and shift in consumer sentiment may increase the cost of the Company’s compliance, divert management attention, alter the environment in which it does business, and expose the Company to potentially significant fines or other penalties if it is unable to comply with such laws, regulations or policies, any of which could have a material adverse effect on the Company’s business, results of operations, and financial condition. However, the Company is unable to predict at this time, the potential effects, if any, that any climate change initiatives may have on its business. ***The Company’s business and financial results could be adversely affected by weather conditions and natural and man-made disasters.*** Physical risks, including man-made disasters, such as infrastructure failures, structural collapse, fires, explosions, and acts of war and terror, as well as weather conditions and natural disasters, such as earthquakes, droughts, floods, hailstorms, heavy or prolonged precipitation, wildfires, hurricanes, sea level rise and others, affecting the IMAX global network or corporate locations, could harm the Company’s business. Additionally, the physical impacts of climate change may cause occurrences of natural disasters to increase in frequency, severity and duration, magnifying the adverse impact of such occurrences and the cost of insuring against them. The climates and geology of some of the regions in which the Company’s principal offices are located, including California, present increased risks of adverse weather or natural disasters. Any such events in the future could disrupt the Company’s operations and impact the Company’s ability to serve its customers. ## Cybersecurity As filed, 5,685 characters. ### OVERVIEW The Company is not aware of any cybersecurity threats or incidents to date that have materially affected its strategy, results of operations, or financial condition. However, the scope and impact of any future cybersecurity incident cannot be predicted with certainty. More information on how material cybersecurity attacks may impact the Company’s business is provided in “Item 1A. Risk Factors”. ### CYBERSECURITY RISK MANAGEMENT FRAMEWORK The Company employs a multi-faceted cybersecurity risk management framework, which is integrated into its enterprise risk management system. The Company’s security policies and practices follows the ISO 27001 framework and manages its cybersecurity risks through a dedicated information security team, reporting to the Vice President, Information Security. The information security team is tasked with, among other things, assessing, identifying and managing material cybersecurity risks and overseeing the implementation of the Company’s cybersecurity strategy. The Company’s cybersecurity risk management includes, but is not limited to, the following elements. #### Risk Identification and Assessment The information security team conducts periodic risk assessments, which includes penetration testing and vulnerability scanning, on the Company’s Information Technology (“IT”) infrastructure, systems, and networks to identify potential vulnerabilities, weaknesses, and risks, and evaluates the potential impact of cybersecurity risks on the Company’s operations, financials, and business. #### Risk Mitigation Measures The information security team implements and maintains a multi-layered defense approach designed to safeguard the Company’s information technology infrastructure in accordance with industry practices and updates the Company’s systems and software to address identified vulnerabilities. The Company has also developed an incident response and disaster recovery plan to respond to cybersecurity incidents. #### Vendor Risk Management The Company evaluates the risk profile of its third-party service providers as needed and may include cybersecurity enhancement or compliance requirements in its service agreements, as needed. The information security team periodically reviews key vendors and counterparties’ cybersecurity practices and may conduct audits or assessments at its discretion. In addition, the Company has established clear lines of communication with key stakeholders, including executives, IT teams, employees, and customers, to ensure transparency and an effective response to cybersecurity incidents. Furthermore, the information security team develops and provides cybersecurity awareness training to the Company’s employees and regularly communicates updates on best cybersecurity practices and improvements in the cybersecurity program. The Company may use third-party programs and software and engage assessors, consultants, cybersecurity auditors, or other third parties to review, test, and advise on improvements to the Company’s cybersecurity infrastructure. ### ROLE OF THE BOARD OF DIRECTORS The Audit Committee oversees the Company’s risk management and assessment, including its mitigation strategies, and updates the Board on the Company’s risk profile and exposures on an as needed basis. With respect to cybersecurity, the Company’s Chief Technology Officer (“CTO”) and Vice President, Information Security update the Audit Committee on at least an annual basis on matters such as external cybersecurity threats and attack trends; updates to threat monitoring processes; the composition of the Company’s information security team; cybersecurity awareness training and testing; cybersecurity strategy; cybersecurity metrics, and assessments of the progress on cybersecurity programs; and the potential scope and impact of cybersecurity risks and incidents on the Company’s operations and financial condition. The Audit Committee may also meet with management on an ad hoc basis to discuss and review any material cybersecurity incidents or threats. ### ROLE OF MANAGEMENT Management is responsible for managing risks and informing the Board of the Company’s material near- and long-term risks and risk management strategies. Management presents the Company’s risk assessment, which includes its cybersecurity risks, to the Audit Committee on at least an annual basis. The CTO leads management’s assessment and management of cybersecurity risks, including to monitor for the prevention, detection, mitigation, and remediation of cybersecurity incidents. The Company’s Vice President, Information Security leads the information security team, which is responsible for managing day-to-day cybersecurity risks and implementing and maintaining the Company’s cybersecurity strategy. The Vice President, Information Security reports to and regularly briefs the CTO on cybersecurity matters, including results of vulnerability testing and remediation, cyber incident responses, and progress on cybersecurity infrastructure initiatives. The CTO and Vice President, Information Security update the Audit Committee about cybersecurity risks and any investigation of a material cybersecurity incident. The Company’s current CTO has over 25 years of experience in senior technology leadership roles, involving oversight of all aspects of technology development and technical operations, including cybersecurity. The Company’s current Vice President, Information Security has over 20 years of experience in cybersecurity roles, including in cybersecurity engineering, information security assessment, and development and management of corporate security policies and governance problems. ## Properties As filed, 1,112 characters. The Company’s principal executive offices are located in Mississauga, Ontario, Canada and New York, New York. As of December 31, 2025, the Company’s principal facilities are as follows: | | Operation | Own/Lease | Expiration | | --- | --- | --- | --- | | Mississauga, Ontario | Headquarters, Administrative, Assembly, Research and Development, and Maintenance Services | Own | N/A | | Playa Vista, California | Sales, Marketing, Film Production and Post-Production | Own | N/A | | New York, New York | Executive | Lease | 2029 | | Tokyo, Japan | Sales, Marketing, and Maintenance Services | Lease | 2028 | | Shanghai, China | Sales, Marketing, Maintenance Services, and Administrative | Lease | 2029 | | Waterloo, Ontario | Sales, Marketing, Administrative, and Research and Development | Lease | Month to month | | Dublin, Ireland | Sales, Marketing, Administrative, and Research and Development | Lease | 2026 | | London, United Kingdom | Sales | Lease | 2026 | The Company believes that its existing facilities and equipment are in good operating condition and are suitable for the conduct of its business. ## Management's discussion and analysis As filed, 104,025 characters. *Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX for the twelve months ended December 31, 2025 and 2024. This MD&A should be read in conjunction with the accompanying Consolidated Financial Statements and related notes and the discussion under Item 8 of the Company’s 2025 Annual Report on Form 10-K (this “Form 10-K”) and contains forward-looking statements that involve risks and uncertainties. Readers of this MD&A should review the sections titled “Special Note Regarding Forward-Looking Information”, “Risk Factors”, and “Quantitative and Qualitative Disclosures about Market Risk” for a discussion of forward-looking statements and factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements in the MD&A. For a discussion of results and comparisons for the twelve month ended December 31, 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2024 Annual Report on Form 10-K.* ### OVERVIEW 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. The Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide; IMAX documentaries, both original and acquired (“IMAX Documentaries”); and IMAX events and experiences in emerging verticals, including music, gaming, and sports. The Company leverages its proprietary technology and engineering in its business, which principally consists of the digital remastering of films and other content into the IMAX format for distribution across the IMAX network (“IMAX Film Remastering”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history. The customers for IMAX Systems are principally exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, institutional locations, including museums and science centers, and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with licenses to use its trademarks and ongoing maintenance services for which there are annual payments by the exhibitors to IMAX. IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of December 31, 2025, there were 1,864 IMAX Systems operating in locations in 91 countries and territories, including 1,796 commercial multiplexes, 10 commercial destinations, and 58 institutional locations in the Company’s global network. This compares to 1,807 IMAX Systems operating in 90 countries and territories as of December 31, 2024, including 1,735 commercial multiplexes, 11 commercial destinations, and 61 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. IMAX Systems provide the Company’s exhibitor customers with a combination of the following benefits: - the ability to exhibit content that has been enhanced through the IMAX Film Remastering process, which results in higher image and sound fidelity than conventional cinema experiences; - advanced, high-resolution projectors with specialized equipment and automated theater control systems, which generate significantly more contrast and brightness than conventional theater systems; - 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 compared 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 - a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX’s growing social media followership. 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. As a result of the engineering and scientific achievements that are a hallmark of *The* IMAX *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, generates 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. In 2025, the Company’s diversified global programming and marketing strategy resulted in a global box office record of $1.28 billion, surpassing its previous record of $1.13 billion in 2019 by 13% and a 40% increase over the prior year comparative period. The Company achieved its highest grossing year at the domestic (United States and Canada) box office in 2025. Additionally, the Company had record box office in over 30 countries and territories worldwide in 2025, including China, Japan, Germany, India, Australia and Vietnam. The Company’s 2025 film slate was the largest in history, with 122 new films and other content released during the year, including a record 67 local language films. The top grossing titles released in 2025 included the Chinese film *Ne Zha 2,* which became the highest grossing IMAX release of all time in China and contributed to the highest grossing Chinese New Year in the Company’s history; *Avatar: Fire and Ash*, the Company’s highest grossing Hollywood release of the year, achieving 15% of the film’s total domestic opening weekend box office; *F1: The Movie, Mission: Impossible - The Final Reckoning,* and the Japanese film *Demon Slayer: Infinity Castle.* Local language content in 2025 generated $405.4 million in global box office for the Company or 32% of its total global box office, surpassing its previous record of $243.5 million set in 2023 by 66%. Throughout the year, the Company continually optimized its global IMAX network by taking a heavily diversified programming approach, playing multiple titles contemporaneously, and maintaining maximum scheduling flexibility. In 2025, the Company released several films shot with IMAX proprietary cameras under the Filmed For IMAX® program, that generated more than $40.0 million in global IMAX box office on a per-title basis. IMAX captured at least 20% of the domestic opening weekend box office on each of *Sinners, Mission: Impossible – The Final Reckoning, F1: The Movie*, and *Tron: Ares*. Despite increasing competition for consumer attention across both out‑of‑home and in‑home entertainment, demand for premium large‑format experiences continued to strengthen. The Filmed For IMAX program helped drive the Company’s domestic box office market share to a record 5.2% and to a record global market share of 3.8%, up from 4.5% and 3.1%, respectively, in the prior year, even though IMAX represents only approximately 1% of domestic screens and less than 1% of screens worldwide. In 2025, the Company partnered to release exclusive concert films and limited-run theatrical events, including *Becoming Led Zeppelin* with Sony Pictures, *Prince - Sign O’ The Times* and *Rolling Stones - At The Max* with Mercury Studios, *Pink Floyd at Pompeii - MCMLXXII, Depeche Mode: M,* and *j-hope Tour ‘Hope on Stage’ The Movie* with Trafalgar Releasing, *One to One: John & Yoko* with Magnolia Pictures, *Springsteen: Deliver Me From Nowhere* with 20th Century Studios, and *G-Dragon in Cinema \[Übermensch\]* with CJ CGV Co. Ltd. The Company also partnered with Bleecker Street for the release of *Spinal Tap II: The End Continues*, including a live Q&A event. The Company also continued its partnership with A24 to present one-night-only IMAX releases of classic A24 titles, including *Talk to Me, Moonlight*, and *Spring Breakers.* In addition, the Company released several event-based and live screenings in 2025, including *Dead & Company Live in IMAX from Golden Gate Park* with Los Muertos, *The Grateful Dead Movie 2025 Meet-Up,* and *David Gilmour Live at the Circus Maximus, Rome* with Trafalgar Releasing, and *Girl Climber* with Red Bull Studios. In collaboration with Runway AI, Inc, *Runway’s 2025 AI Film Festival* was released across ten North American IMAX locations. The Company further expanded its live content offerings through partnerships with NBC Universal for the *SNL50: The Homecoming Concert* in select IMAX North American locations, DAZN for the *PSG v Marseille Le Classique Match* in select IMAX locations across France, Wanda Film for the *F1 Spanish Grand Prix* screening across six IMAX locations in China, Major League Baseball for a live streaming of a *World Series* game across two IMAX locations in Japan and with multiple exhibitor partners in China the *League of Legends Video Games* 2025 finals across over 100 IMAX China locations. Furthermore, in 2025, the Company partnered with Netflix for release of *Frankenstein* across select IMAX locations. The Company will continue to expand its partnerships and the scope and diversity of content it releases across its platform. Already announced for 2026 are the following concert films and events, many of which have exclusive IMAX windows: *Stray Kids: The dominATE Experience, Eric Church: Evangeline vs. The Machine Comes Alive, Twenty One Pilots: More Than We Ever Imagined,* and *EPiC: Elvis Presley in Concert.* In addition, IMAX is working with Apple TV to bring the 2026 FIA Formula One World Championship live to select IMAX locations across the United States for the first time ever. Five of the most iconic Grands Prix in F1 — Miami, Monaco, Silverstone, Monza, and Austin — will be available across at least 50 IMAX locations nationwide. The 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 and video streaming optimization. In its business operations, the Company employs AI in various functions, including research, data analysis, marketing, theater operations, slate programming, and general productivity improvements. It is actively exploring other global use cases for AI to improve its products, operations, and efficiency. The Company’s business and financial performance depends in part on general political, social, and economic conditions, including changes to trade policies and tariffs. For a description of these risks, see Risk Factors “The Company’s business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.”, “General political, social, economic conditions can affect the Company’s business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems.”, “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 I, Item 1A of this Form 10-K. ### SOURCES OF REVENUE The Company has organized its operating segments into the following two reportable segments: (i) Content Solutions, which principally includes content enhancement and distribution services, and (ii) Technology Products and Services, which principally includes the sale, lease, and maintenance of IMAX Systems. The Company’s activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other. Additional information is provided in Note 20 to the Consolidated Financial Statements in Part II, Item 8. ### Content Solutions The Content Solutions segment earns revenue from Film Remastering, including the distribution of this content 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 experiences, including music, gaming, and sports to commercial IMAX theaters, as well as the provision of film post-production services. Content Solutions segment results are influenced by the level of commercial success and box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the timing of documentary downstream sales, the length of play across the IMAX network, the box office share take rates under the Company’s Film Remastering and distribution arrangements, the level of marketing spend associated with the releases in the year, and fluctuations in the value of foreign currencies versus the U.S. Dollar. The studio sector has experienced, and continues to experience, significant consolidation, which may impact the availability of films for release to the IMAX network. A detailed discussion of industry consolidations in included within “Industry overview—Competition—Exhibitor and Studio Consolidation.” in Part I, Item 1. #### Film Remastering and Distribution 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 from a 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 on a gross basis before sales taxes except within Greater China, where the Company often receives a lower percentage of net box office due to an incremental 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 Film Remastering digitally enhances the image quality and/or resolution for projection on IMAX screens while maintaining or enhancing the visual clarity and sound quality to levels for which *The* IMAX *Experience* is known. IMAX Film Remastering is completed for the image of films released to the IMAX network, creating a unique IMAX version that is optimized for IMAX’s proprietary digital projection systems and format. In addition, the original soundtrack of a film to be exhibited across the IMAX locations is remastered into a unique IMAX digital audio format. IMAX sound systems use proprietary loudspeaker systems, designs and proprietary surround sound configurations to ensure every seat in an auditorium is an optimal listening position. 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 onto a standard conventional movie screen. 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 2025, Filmed For IMAX titles have on average indexed over 8% 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, 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. The following table provides the number of new films and other content released to the Company’s global network during the years ended December 31, 2025 and 2024: | | Years Ended December 31, 2025 | 2024 | | --- | ---: | ---: | | Hollywood film releases | 30 | 40 | | Local language film releases: | | | | China | 25 | 25 | | Japan | 11 | 14 | | India | 11 | 11 | | South Korea | 8 | 6 | | France | 2 | 1 | | Vietnam | 2 | — | | Thailand | 1 | 2 | | Indonesia | 1 | 1 | | Germany | 1 | — | | Egypt | 1 | — | | Saudi Arabia | 1 | — | | Netherlands | 1 | — | | Poland | 1 | — | | Turkey | 1 | — | | Malaysia | — | 1 | | Total local language film releases | 67 | 61 | | Other content experiences | 25 | 17 | | Total film releases(1) | 122 | 118 | | (1)For the year ended December 31, 2025, the films released to the Company’s global network include 15 with IMAX DNA (2024 — ten). | | | The films distributed through the Company’s global network during the year ended December 31, 2025 that generated the highest IMAX box office totals were Chinese local language film *Ne Zha 2, Avatar: Fire and Ash, F1: The Movie, Mission: Impossible - The Final Reckoning*, Japanese local language film *Demon Slayer: Infinity Castle* and *Zootopia 2*. In addition, during the year ended December 31, 2025, 25 alternative content films and events were distributed, including *Becoming Led Zeppelin, Pink Floyd at Pompeii - MCMLXXII* and *Prince - Sign O’ The Times*. (Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations ― Sources of Revenue ― Other Content Solutions” in Part II, Item 7.) To date, in 2026, 21 titles have been released to the global IMAX network, including two titles with IMAX DNA, and the Company has announced the following additional 30 titles to be released in 2026: | Title | Studio | Scheduled Release Date(1) | IMAX DNA | | --- | --- | --- | ---: | | Scream 7 | Paramount Pictures | February 2026 | — | | Twenty One Pilots: More Than We Ever Imagined | Trafalgar Releasing | February 2026 | — | | The Revenant 10th Anniversary Re-Release | Walt Disney Studios | February 2026 | — | | The Bride! | Warner Bros. Pictures | March 2026 | Filmed For IMAX | | Hoppers | Walt Disney Studios | March 2026 | — | | Golden Kamuy 2(2) | Toho Cinemas | March 2026 | — | | Ghost Board(2) | M Studio | March 2026 | — | | Kiki’s Delivery Service(2) | Studio Ghibli/GKIDS | March 2026 | — | | Project Hail Mary | Amazon MGM Studios | March 2026 | Filmed For IMAX | | The Super Mario Galaxy Movie | Universal Pictures | April 2026 | — | | Michael | Lionsgate | April 2026 | — | | 2DIE4(2) | Abdala Brothers | April 2026 | — | | Mortal Kombat II | Warner Bros. Pictures | May 2026 | Filmed For IMAX | | The Mandalorian and Grogu | Walt Disney Studios | May 2026 | Filmed For IMAX | | Disclosure Day | Universal Pictures | June 2026 | — | | Toy Story 5 | Walt Disney Studios | June 2026 | — | | Supergirl | Warner Bros. Pictures | June 2026 | Filmed For IMAX | | Minions 3 | Universal Pictures | July 2026 | — | | Moana | Walt Disney Pictures | July 2026 | — | | The Odyssey | Universal Pictures | July 2026 | Filmed For IMAX | | Flowervale Street | Warner Bros. Pictures | August 2026 | Filmed For IMAX | | Resident Evil | Sony Pictures | September 2026 | Filmed For IMAX | | Digger | Warner Bros. Pictures | October 2026 | — | | Street Fighter | Paramount Pictures | October 2026 | Filmed For IMAX | | Hunger Games: Sunrise on the Reaping | Lionsgate | November 2026 | — | | Narnia | Netflix | November 2026 | Filmed For IMAX | | Jumanji 3 | Sony Pictures | December 2026 | — | | Avengers: Doomsday | Walt Disney Studios | December 2026 | — | | Dune: Part Three | Warner Bros. Pictures | December 2026 | Filmed For IMAX | | Ramayana(2) | DNEG | TBD | Filmed For IMAX | | (1)The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events. (2)Denotes local language release. | | | | 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 in 2026. #### Other Content Solutions 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 and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues. 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 December 31, 2025, 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 2025, the Company released the institutional 3D version of *The Blue Angels* across select IMAX locations in North America, Europe, and Australia. 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. 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. 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, 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 December 31, 2025, the Company was able to deliver live and interactive events to over 400 locations worldwide. The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company also provides IMAX film and digital cameras to content creators under the IMAX certified camera program. ### Technology Products and Services The Technology Products and Services segment earns revenue principally from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Products and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX Systems parts and 3D glasses. The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, and lease payments tied to the box office performance of the films released to the IMAX network, as well as the associated maintenance contracts that accompany each installation. The average revenue and gross margin per IMAX System under sale and sales-type lease arrangements vary depending upon the number of IMAX System commitments with a single respective exhibitor, an exhibitor’s location, the type of IMAX System sold, and various other factors. The installation of IMAX Systems in theaters or multiplexes, which make up a large portion of the Company’s system backlog, depends primarily on the timing of the construction of those projects, which is not under the Company’s control. The Company depends principally on exhibitors to purchase or lease IMAX Systems and to fulfill their contractual commitments. Financial difficulties faced by exhibitor partners could result in delays in fulfillment of contractual obligations or an erosion in new signings. (Refer to “Risk Factors―The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A.) #### Sales and Sales-Type Lease Arrangements The Company provides IMAX Systems to exhibitors through sale arrangements or long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns initial fees and ongoing consideration, which can include fixed annual minimum payments and contingent fees in excess of the minimum payments, as well as maintenance and extended warranty fees (see “IMAX Maintenance” below). The initial fees vary depending on the system configuration and location of the IMAX System. Initial fees are paid to the Company in installments typically between the time of signing the arrangement and the time of system installation. Once an IMAX System is installed, the initial fees and the present value of future annual minimum payments, which are financing fees, are recognized as revenue. In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum box office receipt thresholds are exceeded is recorded as revenue in the period when the sale is recognized and is adjusted in future periods based on actual results and changes in estimates. Such variable consideration is only recognized on sales transactions to the extent the Company believes there is not a risk of significant revenue reversal. Finance income is recognized over the term of a financed sale or sales-type lease arrangement. In sale arrangements, title to the IMAX System equipment generally transfers to the customer. However, in certain instances, the Company retains title or a security interest in the equipment until the customer has made all payments required by the agreement or until certain shipment events for the equipment have occurred. In a sales-type lease arrangement, title to the IMAX System equipment remains with the Company. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The revenue earned from customers under the Company’s IMAX System sale or sales-type lease agreements varies from quarter-to- quarter and year-to-year based on a number of factors, including the number and mix of IMAX System configurations sold or leased, the timing of installation of the IMAX Systems, the nature of the arrangement and other factors specific to individual contracts. #### Joint Revenue Sharing Arrangements The Company also provides IMAX Systems to exhibitors through 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, 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 certain other JRSAs, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System in an amount that is typically half of what the Company would receive from a typical sale transaction. As with a traditional JRSA, the customer also pays the Company a percentage of contingent box office receipts over the term of the arrangement, although this percentage is typically half that of a traditional JRSA. 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 JRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive global box office levels. including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, size. and management of the theater and other factors specific to individual arrangements. JRSAs also require IMAX to provide maintenance and extended warranty services to the customer over the term of the lease in exchange for a separate fixed annual fee. These fees are reported within IMAX Maintenance, as discussed below. 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 December 31, 2025, the Company had 911 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 295 systems under JRSAs as of December 31, 2025, including 183 new locations and 112 upgrades to existing locations. #### IMAX Maintenance 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 IMAX quality standards. Annual maintenance fees are paid throughout the duration of the term of the system agreements. ### All Other #### Streaming and Consumer Technology IMAX’s Streaming and Consumer Technology (“SCT”) business offers a single unified program: IMAX Enhanced®. This umbrella program builds on IMAX’s brand and proprietary VisionScience™ technology to deliver *The* IMAX *Experience* to users across streaming platforms and consumer devices. The new IMAX Enhanced program for partners includes three core elements: 1\. IMAX Enhanced Live: Real-time enhancement for sports, concerts, and events using SCT’s proprietary technology to measure, enhance, optimize, and validate premium color, contrast, and clarity at the speed of live. 2\. IMAX Enhanced On-Demand: Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience. IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video. 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. As of December 31, 2025, IMAX Enhanced certified devices in-market are with partners including Sony Electronics, Hisense, TCL, LG, and Philips. The SCT products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have been integrated into the IMAX Enhanced program, streamlining operations and enabling partners to deliver premium viewing experiences validated through IMAX’s proprietary quality standards. IMAX’s SCT represents an extension of the IMAX brand and technology beyond traditional theatrical programming into live streaming for connected theaters and live and on-demand streaming home entertainment experiences. Leveraging IMAX’s globally recognized brand and proprietary technology, IMAX Enhanced is designed to drive consumer engagement and create incremental return on investment for content owners and rights holders. #### Other 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; and the provision of management services to three other theaters. ### IMAX NETWORK AND BACKLOG #### IMAX Network The following table provides detailed information about the IMAX network by system type and geographic location as of December 31, 2025 and 2024: | | December 31, 2025 Commercial Multiplex | Commercial Destination | Institutional | Total | December 31, 2024 Commercial Multiplex | Commercial Destination | Institutional | Total | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | United States | 385 | 4 | 24 | 413 | 370 | 4 | 24 | 398 | | Canada | 45 | 1 | 5 | 51 | 44 | 1 | 5 | 50 | | Greater China(1) | 797 | — | 13 | 810 | 796 | — | 13 | 809 | | Asia (excluding Greater China) | 201 | 1 | 2 | 204 | 185 | 1 | 2 | 188 | | Western Europe | 152 | 3 | 7 | 162 | 135 | 4 | 8 | 147 | | Latin America(2) | 64 | 1 | 6 | 71 | 62 | 1 | 7 | 70 | | Rest of the World | 152 | — | 1 | 153 | 143 | — | 2 | 145 | | Total(3) | 1,796 | 10 | 58 | 1,864 | 1,735 | 11 | 61 | 1,807 | | (1)Greater China includes China, Hong Kong, Taiwan, and Macau. (2)Latin America includes South America, Central America, and Mexico. (3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations. | | | | | | | | | IMAX currently estimates a worldwide commercial multiplex addressable market of 4,466 commercial locations, of which there are 1,796 commercial IMAX Systems operating as of December 31, 2025, representing a market penetration of only 40%. The Company believes that the majority of its future growth will come from international markets. As of December 31, 2025, 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) (2024 ― 76%). More specifically, the Company’s network across all countries outside of the United Sates, Canada, and Greater China grew 8.4% in 2025. Revenues and GBO derived from international markets continue to exceed revenues and GBO from the United States and Canada. The following tables provide detailed information about the commercial multiplex locations in operation within the IMAX network by arrangement type and geographic location as of December 31, 2025 and 2024: | | December 31, 2025 Commercial Multiplex Locations in IMAX Network Traditional JRSA | Hybrid JRSA | Sales Arrangements(1) | Total | | --- | ---: | ---: | ---: | ---: | | Domestic Total (United States & Canada) | 278 | 6 | 146 | 430 | | International: | | | | | | Greater China | 393 | 98 | 306 | 797 | | Asia (excluding Greater China) | 57 | 1 | 143 | 201 | | Western Europe | 49 | 13 | 90 | 152 | | Latin America | 5 | — | 59 | 64 | | Rest of the World | 11 | — | 141 | 152 | | International Total | 515 | 112 | 739 | 1,366 | | Worldwide Total(2) | 793 | 118 | 885 | 1,796 | | (1)Includes Sales and Sales-Type Lease deal types. (2)Period-to-period changes in the tables above are reported net of permanently closed systems. | | | | | | | December 31, 2024 Commercial Multiplex Locations in IMAX Network Traditional JRSA | Hybrid JRSA | Sales Arrangements(1) | Total | | --- | ---: | ---: | ---: | ---: | | Domestic Total (United States & Canada) | 275 | 6 | 133 | 414 | | International: | | | | | | Greater China | 385 | 105 | 306 | 796 | | Asia (excluding Greater China) | 50 | 1 | 134 | 185 | | Western Europe | 45 | 14 | 76 | 135 | | Latin America | 4 | — | 58 | 62 | | Rest of the World | 12 | — | 131 | 143 | | International Total | 496 | 120 | 705 | 1,321 | | Worldwide Total(2) | 771 | 126 | 838 | 1,735 | | (1)Includes Sales and Sales-Type Lease deal types. (2)Period-to-period changes in the tables above are reported net of permanently closed systems. | | | | | 44 #### Backlog The following tables provide detailed information about the Company’s system backlog by arrangement type and geographic location as of December 31, 2025 and 2024: | | December 31, 2025 IMAX System Backlog Traditional JRSA | Hybrid JRSA | Sales Arrangements(1) | Total | | --- | ---: | ---: | ---: | ---: | | Domestic Total (United States & Canada) | 95 | 2 | 25 | 122 | | International: | | | | | | Greater China | 86 | 90 | 39 | 215 | | Asia (excluding Greater China) | 15 | — | 27 | 42 | | Western Europe | 5 | — | 7 | 12 | | Latin America | — | — | 6 | 6 | | Rest of the World | 2 | — | 35 | 37 | | International Total | 108 | 90 | 114 | 312 | | Worldwide Total(2)(3) | 203 | 92 | 139 | 434 | | (1)Includes Sales and Sales-Type Lease deal types. (2)Worldwide backlog total of 434 systems includes 216 new IMAX Laser Systems and 131 upgrades of existing locations to IMAX Laser Systems. (3)Worldwide backlog total of 434 systems includes 303 new systems and 131 upgrades. | | | | | | | December 31, 2024 IMAX System Backlog Traditional JRSA | Hybrid JRSA | Sales Arrangements(1) | Total | | --- | ---: | ---: | ---: | ---: | | Domestic Total (United States & Canada) | 54 | 2 | 13 | 69 | | International: | | | | | | Greater China | 95 | 90 | 52 | 237 | | Asia (excluding Greater China) | 18 | 2 | 32 | 52 | | Western Europe | 12 | — | 18 | 30 | | Latin America | 1 | — | 6 | 7 | | Rest of the World | 2 | — | 43 | 45 | | International Total | 128 | 92 | 151 | 371 | | Worldwide Total(2)(3) | 182 | 94 | 164 | 440 | | (1)Includes Sales and Sales-Type Lease deal types. (2)Worldwide backlog total of 440 systems includes 250 new IMAX Laser Systems and 85 upgrades of existing locations to IMAX Laser Systems. (3)Worldwide backlog total of 440 systems includes 355 new systems and 85 upgrades. | | | | | The backlog reflects the minimum number of commitments for IMAX Systems according to signed contracts. The Company believes that the contractual obligations for IMAX System installations that are listed in backlog are valid and binding commitments. From time to time, in the normal course of its business, the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals or financing. Certain of the Company’s contracts contain options for the customer to elect to upgrade system type during the term or to alter the contract structure (for example, from a JRSA to a sale) after signing, but before installation. Current backlog information reflects all known elections. Approximately 72% of IMAX System arrangements in backlog as of December 31, 2025 are scheduled to be installed in international markets (2024 ― 84%). (Refer to “Risk Factors―The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A.) #### Signings and Installations The following tables provide detailed information about IMAX System signings and installations for the years ended December 31, 2025 and 2024: | System Signings: | Years Ended December 31, 2025 | 2024 | | --- | ---: | ---: | | Sales Arrangements(1) | 72 | 54 | | Traditional JRSA | 94 | 76 | | Total IMAX System Signings(2) | 166 | 130 | | (1)Includes Sales and Sales-Type Lease deal types. (2)Includes 78 IMAX System upgrades (2024 ― 73 upgrades). | | | | System Installations(1): | Years Ended December 31, 2025 | 2024 | | --- | ---: | ---: | | Sales Arrangements(2) | 82 | 63 | | Hybrid JRSA | 1 | — | | Traditional JRSA | 77 | 83 | | Total IMAX System Installations(3) | 160 | 146 | | (1)Six IMAX Systems were relocated from their original location (2024 ― seven). 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 usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System. (2)Includes Sales and Sales-Type Lease deal types. (3)Includes 62 IMAX System upgrades (2024 ― 69 upgrades). | | | ### CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements and related disclosures in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations, and other factors that are believed to be reasonable as of the date of the Company’s Consolidated Financial Statements. Actual results may ultimately differ from the Company’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. Management believes that the following are the Company’s most critical accounting estimates, which are not ranked in any particular order, that may affect the Company’s reported results of operations and/or financial condition. The Company’s significant accounting policies are described in Note 2 to “Consolidated Financial Statements” in Part II, Item 8. ### Revenue Recognition The application of U.S. GAAP related to the measurement and recognition of revenue requires management to make judgments and estimates. In addition, revenue contracts with nonstandard terms and conditions may require significant interpretation to determine the appropriate accounting. #### IMAX Systems The Company evaluates each of the performance obligations in an IMAX System arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate performance obligations. The transaction price in an IMAX System arrangement is allocated to each good or service that is identified as a separate performance obligation based on estimated standalone selling prices. This allocation is based on observable prices when the Company sells the good or service separately. In circumstances when a selling price is not directly observable, the Company will estimate the standalone selling price using information available, including market assessments and expected cost plus margin. The Company’s “System Obligation” consists of the following: (i) an IMAX System, which includes the projector, sound system, screen system and, if applicable, a 3D glasses cleaning machine; (ii) services associated with the IMAX System, including theater design support, the supervision of installation services, and projectionist training; and (iii) a license to use the IMAX brand to market the location. The System Obligation, as a group, is a distinct performance obligation. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, it supervises the installation by the customer. The customer has the right to use the IMAX brand from the date the Company and the customer enter into an arrangement. The Company has established standalone prices for the System Obligation and maintenance and extended warranty services, as well as for film license arrangements. The Company uses the adjusted market assessment and cost-plus approaches for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices. The Company considers multiple factors including its historical pricing practices, product class, market competition and geography. The initial revenue recognized in a sales arrangement consists of a lump-sum payment typically received before and in connection with the installation of the IMAX System plus the present value of any future payments, including ongoing fixed minimum payments, which are subject to indexed increases over the term of the arrangement, and potential additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. #### Constraints on the Recognition of Variable Consideration The transaction price for the System Obligation, other than for IMAX Systems delivered pursuant to JRSAs, consists of upfront or initial payments made before and after the final installation of the system and ongoing payments throughout the term of the arrangement. The Company estimates the transaction price, including an estimate of future variable consideration, received in exchange for the goods delivered or services rendered. The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded or where no minimum is required, based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. Variable consideration related to indexed minimum payment increases is outside of the Company’s control, but the movement in the rates is historically well documented and economic trends in inflation are easily accessible. Accordingly, for each contract subject to an indexed minimum payment increase, the Company estimates the most likely amount using published indices, subject to collectability. The average change over time in the consumer price index can significantly impact the Company’s estimates should inflation change at a higher level due to government policy and the impact of other events outside of its control. The amount of the estimated minimum payment increase is then recorded at its present value as of the date of recognition using the customer’s implied borrowing rate. (Refer to “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 I, Item 1A.) Variable consideration related to the level of the customer’s box office receipts is outside of the Company’s control as it is dependent upon the future commercial success of the films released to the IMAX network. The estimated variable consideration initially recognized by the Company is based on management’s box office projections for the location, which are developed using historical box office data for that location and, if necessary, comparable locations and territories. Using this data, management applies its understanding of these location markets to estimate the most likely amount of variable consideration to be earned over the term of the arrangement. Management then applies a constraint to this estimate by reducing the projection by a percentage factor for theaters or markets with no or limited historical box office experience. In cases where direct historical experience can be observed, average historical box office results, eliminating significant outliers, are used. The resulting amount of variable consideration is then recorded at its present value as of the date of recognition using a risk-weighted discount rate, subject to collectability. The Company reviews its variable consideration assets on at least a quarterly basis considering recent global box office performance and, when applicable, updated global box office projections for future periods. (Refer to “Risk Factors - The Company’s systems revenue can vary significantly from its cash flows under IMAX System sales or lease arrangements” in Part I, Item 1A.) ### Current Expected Credit Losses The ability of the Company to collect its accounts receivable, financing receivables, and variable consideration receivables is dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators and, in certain situations, movie studios, may experience financial difficulties that could cause them to be unable to fulfill their payment obligations to the Company. The Company develops its estimate of credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors. Judgments regarding the collectability of accounts receivable, financing receivables, and variable consideration receivables, and the amount of any required allowance for credit losses, are based on management’s initial credit evaluation of the customer and the regular ongoing monitoring of the credit quality of each customer. This monitoring process includes an analysis of collections history and aging for each customer, as well as meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. Management’s judgments regarding expected credit losses are based on the facts available to management at the time that the Consolidated Financial Statements are prepared and involve estimates about the future. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect. ### Inventories The Company records write-downs for excess and obsolete inventories based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace, and anticipated market acceptance of the Company’s current and pending IMAX Systems. (Refer to Note 7 to “Consolidated Financial Statements” in Part II, Item 8.) ### Asset Impairments #### Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized but is tested annually for impairment at the reporting unit level in the fourth quarter of the year and between annual tests if indicators of potential impairment exist. These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the unit’s business, including projections of future global box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a unit. For reporting units with goodwill, an impairment loss is recognized for the amount by which the unit’s carrying value, including goodwill, exceeds its fair value. The carrying value of each reporting unit is based on a systematic and rational allocation of certain assets and liabilities. The fair value of each unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed. The discount rates used in the cash flow model are derived based on the Company’s estimated weighted average cost of capital. These estimates and the likelihood of future changes in these estimates depend on a number of underlying variables and a range of possible outcomes. Actual results may materially differ from management’s estimates. Assumptions and estimates about future cash flows and discount rates are complex and often subjective and require significant judgment. The analysis is dependent on internal forecasts, estimation of the long-term rates of revenue growth for the Company’s reporting units, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units. During the fourth quarter of 2025, the Company performed a goodwill impairment test, resulting in a goodwill impairment charge of $7.0 million against the portion of goodwill related to the SSIMWAVE reporting unit. The impairment charge was due to a change in the Company’s market focus, resulting in a downward adjustment to the SSIMWAVE reporting unit’s expected cash flows based on the discounted cash flow method. For the impairment test of the SSIMWAVE reporting unit, the Company utilized a discount rate of 15.2% and a revenue growth rate of 25.0% in certain years which represent the most significant assumptions in the model. (Refer to Note 12 to “Consolidated Financial Statements” in Part II, Item 8.) #### Long-Lived Assets Long-lived assets include property, plant and equipment and other intangible assets, and are grouped and reviewed for impairment at the lowest level for which identifiable cash flows are largely independent whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, long-lived assets are considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating long-lived assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. #### Film Assets The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of global box office results and, in certain situations, ancillary revenues. If management’s projections of future net cash flows resulting from the exploitation of a film indicate that the carrying value of the film asset is not recoverable, the film asset is written down to its fair value. ### Share-Based Compensation The Company issues share-based compensation to eligible employees, directors, and consultants under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as amended from time to time, the “IMAX LTIP”) and the IMAX China Long-Term Incentive Plan (the “China LTIP”), a separate share-based compensation plan adopted by a subsidiary of the Company for its employees in Greater China. The IMAX LTIP is the Company’s governing document and awards to employees, directors, and consultants under this plan may consist of stock options, restricted share units (“RSUs”), performance stock units (“PSUs”) and other awards. The Company measures share-based compensation expense using the grant date fair value of the award (as defined below), which is recognized as an expense in the Consolidated Statements of Operations on a straight-line basis over the requisite service period. Share- based compensation expense is not adjusted for estimated forfeitures, but is instead adjusted when and if actual forfeitures occur. The Company grants two types of PSU awards, one which vests based on a combination of employee service and the achievement of certain Adjusted Earnings Before Interest, Income Taxes, Depreciation, and Amortization (“EBITDA”) targets, and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets. The achievement of the Adjusted EBITDA and TSR targets in these PSUs is determined over a three-year performance period. For PSUs granted as of December 31, 2025, the number of PSUs that ultimately vest can range from 0% to a maximum vesting opportunity of 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance versus the established Adjusted EBITDA and TSR targets, at the end of the three-year performance period. The grant date fair value of PSUs with Adjusted EBITDA targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that considers the likelihood of achieving the TSR targets embedded in the award (“Monte Carlo Model”). The compensation expense attributable to each type of PSU is recognized on a straight-line basis over the requisite service period. The fair value determined by the Monte Carlo Model is affected by the Company’s share price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, market conditions as of the grant date, the Company’s expected share price volatility over the term of the award, and other relevant data. The compensation expense is fixed on the date of grant based on the fair value of the PSUs granted, and therefore not attached to the number of PSUs that may ultimately vest. In the instance when the service criteria is not met, any expense previously recognized is reversed. The amount and timing of compensation expense recognized for PSUs with Adjusted EBITDA targets is dependent upon management’s assessment of the likelihood of achieving these targets. If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period that such determination is made. Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period that such determination is made. (Refer to “Capital Stock — *Share-Based Compensation”* in Note 16 to “Consolidated Financial Statements” in Part II, Item 8.) ### Deferred Income Tax Assets Income taxes are accounted for under the liability method whereby deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the accounting and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses the realization of deferred income tax assets and based on all available evidence, concludes whether it is more likely than not that the net deferred income tax assets will be realized. A valuation allowance is provided for the amount of deferred income tax assets not considered to be realizable. In assessing the need for a valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists, then management will consider recording a valuation allowance against all or a portion of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management’s projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove more difficult to support the realization of these deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on the Company’s effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which a valuation allowance is recorded, the Company may reverse all or a portion of the valuation allowance in that jurisdiction. In such situations, the adjustment made to the deferred tax asset would have a favorable impact on the Company’s effective income tax rate and results in the period such determination was made. (Refer to “Income Taxes — *Deferred Tax Assets and Deferred Tax Liability* and *Valuation Allowance”* in Note 11 to “Consolidated Financial Statements” in Part II, Item 8.) ### Uncertain Tax Positions The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. Although management believes that the Company has adequately accounted for its uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in the Company owing additional taxes above what was originally recognized in its financial statements. Tax reserves for uncertain tax positions are adjusted by the Company to reflect management’s best estimate of the outcome of examinations and assessments and in light of changing facts and circumstances, such as the completion of a tax audit, expiration of a statute of limitations, the refinement of an estimate, and interest accruals associated with the uncertain tax positions until they are resolved. Some of these adjustments require significant judgment in estimating the timing and amount of the additional tax expense. (Refer to “Income Taxes — *Uncertain Tax Positions”* in Note 11 to “Consolidated Financial Statements” in Part II, Item 8.) ### RECENTLY ISSUED ACCOUNTING STANDARDS Refer to Note 3 to “Consolidated Financial Statements” in Part II, Item 8 for a discussion of recently issued accounting standards and their impact on the Company’s financial statements. ### RESULTS OF OPERATIONS ### Results of Operations for the Years Ended December 31, 2025 and 2024 ### Net Income and Adjusted Net Income Attributable to Common Shareholders The following table presents the Company’s net income attributable to common shareholders and the associated per-share amounts, as well as adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per share for the years ended December 31, 2025 and 2024: *(In thousands of U.S. Dollars, except per diluted share amounts)* | | Years Ended December 31, 2025 Net Income | Per Diluted Share | 2024 Net Income | Per Diluted Share | | --- | ---: | ---: | ---: | ---: | | Net income attributable to common shareholders | $34,876 | $0.63 | $26,059 | $0.48 | | Adjusted net income attributable to common shareholders\* | $80,584 | $1.45 | $51,010 | $0.95 | | \*Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. | | | | | 50 ### Revenues and Gross Margin For the year ended December 31, 2025, the Company’s revenues and gross margin increased by $58.0 million, or 16%, and $56.0 million, or 29%, respectively, when compared to the year ended December 31, 2024, principally due to stronger IMAX global box office along with higher system sales installation revenue. The 2025 global box office performance was driven by the Company capturing a higher global box office share of Hollywood films, driven in large part by the record number of Filmed For IMAX titles, and a significantly higher contribution from local language content, including a record Chinese New Year. In 2025, the Company installed 160 systems, including 98 new systems, resulting in network growth of 3.2%. The following table presents the Company’s revenue, gross margin and gross margin percentage by reportable segment for the years ended December 31, 2025 and 2024: *(In thousands of U.S. Dollars)* | | Revenue 2025 | 2024 | Gross Margin 2025 | 2024 | Gross Margin % 2025 | 2024 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | | Content Solutions | $151,258 | $124,731 | $99,706 | $66,523 | 66% | 53% | | Technology Products and Services | 251,277 | 216,062 | 143,222 | 115,553 | 57% | 53% | | Sub-total for reportable segments | 402,535 | 340,793 | 242,928 | 182,076 | 60% | 53% | | All Other(1) | 7,677 | 11,415 | 3,262 | 8,124 | 42% | 71% | | Total | $410,212 | $352,208 | $246,190 | $190,200 | 60% | 54% | | (1)All Other includes the results from SCT and other ancillary activities. | | | | | | | ### Segment Operating Results The Company’s segment operating results are presented based on how the Chief Operating Decision Maker (“CODM”) assesses operating performance and internally reports financial information. See Note 20 to “Consolidated Financial Statements” in Part II, Item 8 for additional information on the Company’s reportable segments. ### Content Solutions For the year ended December 31, 2025, Content Solutions segment revenues and gross margin increased by $26.5 million, or 21%, to $151.3 million from $124.7 million and $33.2 million, or 50%, to $99.7 million from $66.5 million, respectively, when compared to the same period in 2024. For the year ended December 31, 2025, global box office generated by IMAX films totaled $1.28 billion, a 40% increase from $0.92 billion in 2024. This growth is the result of the Company’s focus on a diversified global programming and marketing strategy to maximize global box office. During 2025, IMAX global box office was generated by the exhibition of 126 films and other content (122 new films and 4 re-releases), including the following Hollywood titles: *Avatar: Fire and Ash* ($112 million), *F1: The Movie* ($98 million), *Mission: Impossible - The Final Reckoning* ($76 million), *Zootopia 2* ($59 million), *Superman* ($57 million), *The Fantastic Four: First Steps* ($49 million), and *Sinners* ($41 million). In addition, for the year ended December 31, 2025, the local language films exhibited across the IMAX network generated over $405.4 million in GBO, representing 32% of the Company’s total GBO. The Chinese local language film, *Ne Zha 2*, the highest grossing film ever in China, became the highest grossing IMAX release in 2025 ($167 million). The Japanese local language anime film *Demon Slayer: Infinity Castle* ($96 million) became the highest grossing IMAX release of all time in Japan. During 2024, IMAX global box office was generated by the exhibition of 129 films and other content (118 new films and 11 re-releases). The increase in revenue year over year from higher IMAX global box office were partially offset by lower documentary revenue year over year as 2024 benefitted from the revenue earned from the sale of the worldwide commercial and streaming rights of the Company’s original documentary, *The Blue Angels*, to Amazon Content Services LLC. In 2025, the Company released 15 movies that were filmed with IMAX proprietary cameras (Filmed For IMAX), including *Sinners, F1: The Movie, Mission: Impossible - The Final Reckoning, Superman, The Fantastic Four: First Steps* and *Tron: Ares.* IMAX captured approximately 20% or more of the opening weekend domestic box office on these titles in 2025, despite accounting for only approximately 1% of available domestic screens. In 2025, the average Filmed For IMAX domestic opening weekend indexing was approximately 15% compared to 13% in 2024. In addition to the level of revenues, Content Solutions segment gross margin is also influenced by the costs associated with the films and other content exhibited in the period. The costs associated with films and other content can include production, post-production, distribution, and marketing, which are expensed as incurred. For the year ended December 31, 2025, gross margin percent was 66% compared to 53% for the same period in 2024. The increase was driven by a higher level of IMAX global box office, which led to higher revenue flow through and lower costs associated with documentary content, as there were no new releases in 2025, that carries a lower margin. ### Technology Products and Services The following table provides detailed information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs as revenue is recognized over the lease term, during the years ended December 31, 2025 and 2024: *(In thousands of U.S. Dollars, except number of systems)* | | Years Ended December 31, 2025 Number of Systems | Revenue | 2024 Number of Systems | Revenue | | --- | ---: | ---: | ---: | ---: | | New IMAX Systems | 70 | $62,388 | 48 | $43,152 | | Upgraded IMAX Systems | 12 | 13,350 | 15 | 19,108 | | Total | 82 | $75,738 | 63 | $62,260 | Included in the table above are six IMAX Systems which were relocated from their original locations (2024 ― seven IMAX Systems). When an IMAX 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 usually less than the amount earned for a new sale. In certain situations when an IMAX System is relocated, the original location is upgraded to an IMAX Laser System. For the year ended December 31, 2025, Technology Products and Services segment revenue and gross margin increased by $35.2 million or 16% and $27.7 million or 24%, respectively, when compared to the prior year. The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office dependent, and upfront revenue recognized on systems of $9.2 million, resulting from a higher number of system installations coupled with annual variable consideration assessments. Rental revenues increased by $18.9 million or 30%, driven by IMAX GBO generated by locations under JRSAs, which increased by $141.8 million or 34% when compared to the prior year, from $418.4 million to $560.2 million. Also contributing to the increase in revenue was an increase in after-market revenues of $4.6 million, primarily led by higher sales of 3D glasses associated with the release of *Avatar: Fire and Ash.* For the year ended December 31, 2025 gross margin percent was 57% compared to 53% in the prior year, which primarily reflects the positive incremental flow through of the higher level of box office to JRSA revenues as described above. ### All Other For the year ended December 31, 2025, All Other revenue and gross margin decreased by $3.7 million and $4.9 million, respectively, when compared to the same period in 2024, which principally reflects the results of the Company’s SCT business which was re-positioned and relaunched in late 2025 under the brand of IMAX Enhanced. ### Selling, General and Administrative Expenses The following table presents information about the Company’s Selling, General and Administrative (“SG&A”) expenses for the years ended December 31, 2025 and 2024: *(In thousands of U.S. Dollars)* | | Years Ended December 31, 2025 | 2024 | Variance $% | | | --- | ---: | ---: | ---: | ---: | | Total selling, general and administrative expenses | $138,455 | $132,701 | $5,754 | 4% | | Less: Share-based compensation(1) | (26,133) | (20,897) | (5,236) | 25% | | Total selling, general and administrative expenses, excluding share-based compensation(2) | $112,322 | $111,804 | $518 | —% | | (1)A portion of total share-based compensation expense is also recognized within Cost and Expenses Applicable to Revenue and Research and development. Refer to “Capital Stock — Share-Based Compensation” in Note 16 to “Consolidated Financial Statements” in Part II, Item 8. (2)See “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount. | | | | | SG&A expenses year-over-year reflect a consistent level, and consist primarily of compensation costs, travel, fees and other general corporate expenditures. For the year ended December 31, 2025, SG&A includes higher annual performance driven incentive compensation costs and fringe benefits, partially offset by management’s continued focus on operational efficiencies, including workforce reductions. Additionally, in the year, the Company recognized $2.7 million in benefits resulting from an Employee Retention Credit as a reduction to SG&A expenses, which partially offset the higher compensation costs noted. Year-over-year the benefits of the Employee Retention Credit are partially offset by adjustments recorded in the prior year relating to payouts in connection with a prior year acquisition. As a percentage of revenue, SG&A expenses excluding share-based compensation improved to 27% as compared to 32% in 2024, which reflects management’s continued focus on cost discipline as expenses increased at a much lower rate than revenue. ### Research and Development For the year ended December 31, 2025, Research and development expenses were $5.8 million, representing an increase of $0.7 million, or 14%, when compared to $5.1 million during the same period in the prior year. The lower Research and development expenses in 2024 reflects the capitalization of costs in accordance with the achievement of technological feasibility of the Company’s new film cameras and related technologies. The Company continues to expense its investment in other projects, including in the development of new SCT product offerings and improvements to its existing IMAX System product suite. ### Credit Loss Expense (Reversal), Net For the year ended December 31, 2025, the Company recorded a credit loss expense of $0.7 million, as compared to a credit loss reversal of $1.0 million recognized in the prior year. The change was primarily attributable to specific provisions related to certain exhibitors in Greater China with whom the Company terminated and/or transferred agreements during the year. Overall, stronger global box office performance in the year has contributed to a notable improvement in collections. The resurgence in theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects both the sustained consumer demand for premium cinematic experiences and the effectiveness of IMAX’s strategic initiatives in global distribution and exhibition. The Company estimates credit losses based on both a historical provision rate and customer specific circumstances. Management’s judgments regarding expected credit losses are based on the facts available to management at the time that the Consolidated Financial Statements are prepared and involve estimates about the future. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect. (Refer to Note 4 to “Condensed Consolidated Financial Statements” in Part II, Item 8.) ### Restructuring Charges and Other Impairments For the year ended December 31, 2025, the Company recorded $2.5 million (2024 — $3.7 million) of Restructuring Charges and Other Impairments. These charges are associated with strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure. Restructuring Charges and Other Impairments are presented as a separate line item in the Consolidated Statements of Operations to enhance transparency and provide stakeholders with a better understanding of the Company’s financial performance. Specifically, in 2025, the Company incurred $1.4 million (2024 — $2.4 million) of termination charges in connection with its plan to optimize its organizational structure by eliminating redundant roles, addressing spans and layers to capture efficiencies, and centralizing certain operational roles, including the restructuring of the SCT division, which includes SSIMWAVE. Additionally, the Company incurred $0.4 million (2024 — $1.3 million) of non-recurring fees related to the assessment of its corporate structure and the resulting internal asset sale, as described in the 2024 Form 10-K, and $0.7 million in connection with the impairment of certain intangible assets impacted by restructuring activities during the year. ### Goodwill Impairment For the year ended December 31, 2025, the Company incurred $7.0 million (2024 — $nil) of goodwill impairment charges. The impairment charge was due to a change in the Company’s market focus, resulting in a downward adjustment to the SSIMWAVE reporting unit’s expected cash flows based on the discounted cash flow method. As noted above in the Restructuring Charges and Other Impairments section, during 2025 the Company recognized certain termination charges associated with the SSIMWAVE business that are expected to reduce ongoing overhead costs. (Refer to “Risk Factors―The Company has been and may continue to be subject to impairment losses related to goodwill and long-lived assets.” in Part I, Item 1A and Note 12 to “Consolidated Financial Statements” in Part II, Item 8.) ### Realized and Unrealized Investment (Losses) Gains For the year ended December 31, 2025, Realized and Unrealized Investment (Losses) Gains was a loss of $0.9 million, compared to a gain of $0.1 million in the prior year. The current year loss primarily relates to a $1.0 million loss of the Company’s investment in equity securities to bring the carrying value down to the fair value as assessed by management. This loss was partially offset by unrealized gains related to the fair value adjustment of the company-owned life insurance. (Refer to Note 21 to “Consolidated Financial Statements” in Part II, Item 8.) ### Interest Expense and Interest Income For the year ended December 31, 2025, interest expense was $7.4 million, representing a decrease of $0.7 million, or 9%, as compared to $8.1 million in 2024 primarily due to a lower level of borrowings under the Credit Facility and a lower average interest rate during the period as compared to the prior period. (Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8.) For the year ended December 31, 2025, interest income was $2.8 million compared to $2.2 million in the prior year. ### Induced Conversion Expense on Settlement of Convertible Notes During the year ended December 31, 2025, the Company recorded $15.3 million of Induced Conversion Expense on Settlement of Convertible Notes which reflects the fair value of consideration paid to holders of the 2026 0.50% Convertible Notes (the “2026 Convertible Notes”) in excess of the value to which they were entitled to receive pursuant to the original conversion terms. Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8 for more information on this transaction. No such expense was recognized in 2024. ### Income Taxes For the year ended December 31, 2025, the Company recorded an income tax expense of $17.8 million (2024 — $5.0 million). The Company’s effective tax rate for year ended December 31, 2025 of 28.1% differs from the Canadian federal statutory tax rate of 15.0% (2024 — 26.5%), primarily due to a non-deductible premium paid, and taxable capital gain incurred, on the partial settlement of the 2026 Convertible Notes and a taxable capital gain on settlement of $4.0 million and $1.5 million respectively, non-deductible goodwill impairment of $1.8 million, statutory tax rate differences of $5.2 million (2024 — $2.3 million), an increase in interest expense related to tax reserves of $0.8 million (2024 — reduction, net of interest expense, of $1.4 million), and withholding taxes of $4.0 million (2024 — $3.9 million). This was offset by a tax benefit related to investment tax credits of $1.2 million (2024 — $1.2 million), a net decrease in the valuation allowance related to deferred taxes of $6.0 million in respect of the use of tax attributes in reporting entities where it was concluded in prior years that it is more likely that not that the benefit from deferred taxes will not be realized (2024 — increase of $3.5 million), and other tax benefit of $1.7 million (2024 — $7.6 million including $4.0 million related to an internal asset sale). The remainder of the difference was due to normal course movements and non-material items. The effective tax rate of 28.1% in 2025 reflects the impact of one-time charges in 2025 (see above for discussion of Induced Conversion Expense on Settlement of Convertible Notes and Goodwill Impairment) for which the Company did not receive any tax benefits, while 2024’s effective tax rate was unusually low at 13.3% having benefitted from an internal asset sale to more closely align intellectual property rights with its global operations. The Company’s deferred tax liability of $12.5 million as of December 31, 2025 (2024 — $12.5 million) relates to the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested, which become payable upon the repatriation of any such earnings. During the year ended December 31, 2025, $nil (2024 — $nil) of historical earnings from a subsidiary in China were distributed and, as a result, $nil (2024 — $nil) of foreign withholding taxes were paid to the relevant tax authorities. (Refer to Note 11 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s tax position.) ### Non-Controlling Interests For the year ended December 31, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $10.7 million (2024 — $6.6 million), an increase of 60%, or $4.0 million, year-over-year. The increase primarily reflects the higher level of IMAX box office earned in Greater China, as described above. ### CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 The discussion below summarizes our cash flows from operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024. *(In thousands of U.S. Dollars)* | Net cash provided by (used in) | Years Ended December 31, 2025 | 2024 | | --- | ---: | ---: | | Operating activities | $127,068 | $70,837 | | Investing activities | (41,916) | (41,216) | | Financing activities | (34,079) | (6,041) | | Effect of exchange rate changes on cash | (497) | 812 | | Net change in cash | **50,576** | **24,392** | Net cash provided by operating activities increased $56.2 million in 2025, when compared to 2024, primarily due to an increase in the net income earned in the current period primarily due to stronger IMAX global box office and a net increase in working capital. (Refer to Note 18 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s change in other operating assets and liabilities.) Net cash used in investing activities increased $0.7 million in 2025, when compared to 2024, which reflects an increase in the level of investment in equipment contributed to the Company’s JRSAs with exhibitor customers and partially offset by general corporate capital expenditures. Net cash used in financing activities increased $28.0 million in 2025, when compared to 2024, which reflects the issuance of the Convertible Notes partially offset by the repurchase of the outstanding principal of the 2026 Convertible Notes and redemption of the related capped calls and higher repayments of borrowings during the year. (Refer to Note 13 to “Consolidated Financial Statements” in Part II, Item 8 for more information on the Company’s change in other operating assets and liabilities.) ### LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2025, the Company’s principal sources of liquidity included: (i) its balances of cash and cash equivalents of $151.2 million; (ii) the anticipated collection of trade accounts receivable, which includes amounts owed under JRSAs and Film Remastering and distribution agreements with movie studios; (iii) the anticipated collection of financing receivables due in the next 12 months under sale and sales-type lease arrangements for IMAX Systems currently in operation; and (iv) installment payments expected in the next 12 months under sale and sales-type lease arrangements in backlog. Under the terms of the Company’s typical sale and sales-type lease agreements, the Company receives substantial cash payments before it completes the performance of its contractual obligations. As of December 31, 2025, the Company had $338.0 million in available borrowing capacity under its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), $27.1 million in available borrowing capacity under the IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”) revolving credit facility with the Bank of China (the “Bank of China Facility”), and $28.5 million in available borrowing capacity under IMAX Shanghai’s revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the “HSBC China Facility”). (Refer to “Borrowings — *Revolving Credit Facility Borrowings, Net”* in Note 13 to “Consolidated Financial Statements” in Part II, Item 8 for a description of the material terms of the Credit Agreement, the Bank of China Facility, and the HSBC Facility.) The Company’s $151.2 million balance of cash and cash equivalents as of December 31, 2025 (December 31, 2024 — $100.6 million) includes $137.4 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $97.2 million was held in the People’s Republic of China (“PRC”) (December 31, 2024 — $47.5 million). Management reassessed its strategy with respect to the most efficient means of deploying the Company’s capital resources globally and determined that historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested. During the year ended December 31, 2025, no historical earnings from a subsidiary in China were distributed (2024 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2024 — $nil). As of December 31, 2025, the Company’s Consolidated Balance Sheets include a deferred tax liability of $12.5 million (December 31, 2024 — $12.5 million) for the applicable foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada. These taxes will become payable upon the repatriation of any such earnings. The Company forecasts its future cash flow and short-term liquidity requirements on an ongoing basis. These forecasts are based on estimates and may be materially impacted by factors that are outside of the Company’s control (including the factors described in “Risk Factors” in Part I, Item 1A). As a result, there is no guarantee that these forecasts will come to fruition and that the Company will be able to fund its operations through cash flows from operations. In particular, the Company’s operating cash flows and cash balances will be adversely impacted if management’s projections of future signings and installations of IMAX Systems and global box office performance of remastered content distributed to the IMAX network are not realized. Based on the Company’s current cash balances and operating cash flows, management expects to have sufficient capital and liquidity to fund its anticipated operating needs and capital requirements during the next twelve-month period following the date of this report. ### CONTRACTUAL OBLIGATIONS Payments to be made by the Company under contractual obligations as of December 31, 2025 are as follows: *(In thousands of U.S. Dollars)* | | Payments Due by Years Total Obligation | Less Than One Year | 1 to 3 years | 3 to 5 years | Thereafter | | --- | ---: | ---: | ---: | ---: | ---: | | Purchase obligations(1) | $28,557 | $23,480 | $4,945 | $132 | $— | | Pension obligations(2) | 20,298 | — | 20,298 | — | — | | Operating lease obligations(3) | 12,404 | 3,327 | 6,343 | 2,728 | 6 | | Credit Facility | 37,000 | 37,000 | — | — | — | | Federal Economic Development Loan(4) | 1,027 | 1,027 | — | — | — | | 2026 Convertible Notes(5) | 745 | 745 | — | — | — | | 2030 Convertible Notes(6) | 259,422 | 1,922 | 3,750 | 253,750 | — | | Postretirement benefits obligations | 1,831 | 96 | 196 | 229 | 1,310 | | Total | $361,284 | $67,597 | $35,532 | $256,839 | $1,316 | | (1)Represents total payments to be made under binding commitments with suppliers and outstanding payments to be made for supplies ordered, but yet to be invoiced. (2)The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”), covering its CEO, Mr. Richard L. Gelfond. The SERP has a fixed benefit payable of $20.3 million. The table above assumes that Mr. Gelfond will receive a lump sum payment of $20.3 million six months after retirement at the end of the term of his current employment agreement, which expires on December 31, 2028, in accordance with the terms of the SERP, although Mr. Gelfond has not informed the Company that he intends to retire at that time. (Refer to Note 22 to “Consolidated Financial Statements” in Part II, Item 8.) (3)Represents total minimum annual rental payments due under the Company’s operating leases. (4)The Federal Economic Development Loan is repayable over 36 months, with repayments commencing January 2024. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.) (5)The Convertible Notes bear interest at a rate of 0.500% per annum on the remaining principal of $0.7 million. The Convertible Notes will mature on April 1, 2026, unless earlier repurchased, redeemed or converted. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.) (6)The Convertible Notes bear interest at a rate of 0.750% per annum on the principal of $250.0 million, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2026. The Convertible Notes will mature on November 15, 2030, unless earlier repurchased, redeemed or converted. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13 to “Consolidated Financial Statements” in Part II, Item 8.) | | | | | | ### OFF-BALANCE SHEET ARRANGEMENTS There are currently no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company’s financial condition. ### NON-GAAP FINANCIAL MEASURES GAAP refers to generally accepted accounting principles in the United States of America. In this report, the Company presents financial measures in accordance with GAAP and also on a non-GAAP basis under the U.S. Securities and Exchange Commission regulations. Specifically, the Company presents the following non-GAAP financial measures as supplemental measures of its performance: - Adjusted net income or loss attributable to common shareholders; - Adjusted net income or loss attributable to common shareholders per basic and diluted share; - EBITDA; - Adjusted EBITDA per Credit Facility; and - Adjusted SG&A expenses. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) goodwill impairment; (iv) restructuring charges and other impairments; (v) employee retention credits; and (vi) induced conversion expense on settlement of convertible notes, as well as the related tax impact of these adjustments. The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. Reconciliations of net income attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share are presented in the table below. *(In thousands of U.S. Dollars, except per diluted share amounts)* | | Years Ended December 31, 2025 Net Income | Per Diluted Share | 2024 Net Income | Per Diluted Share | | --- | ---: | ---: | ---: | ---: | | Net income attributable to common shareholders | $34,876 | $0.63 | $26,059 | $0.48 | | Adjustments(1): | | | | | | Share-based compensation | 26,133 | 0.47 | 22,454 | 0.42 | | Unrealized investment losses (gains) | 867 | 0.02 | (127) | — | | Goodwill impairment | 7,000 | 0.13 | — | — | | Restructuring charges and other impairments | 2,447 | 0.04 | 3,749 | 0.07 | | Employee retention credits | (3,971) | (0.07) | — | — | | Induced conversion expense on settlement of convertible notes | 15,264 | 0.27 | — | — | | Tax impact on items listed above | (2,032) | (0.04) | (1,125) | (0.02) | | Adjusted net income(1) | $80,584 | $1.45 | $51,010 | $0.95 | | Weighted average shares outstanding (in thousands): | | | | | | Basic | | 53,636 | | 52,650 | | Diluted | | 55,544 | | 53,864 | | (1)Reflects amounts attributable to common shareholders. | | | | | In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results. EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Total Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring charges and other impairments; (iv) write-downs, net of recoveries, including goodwill, asset impairments and credit loss expense or reversal; and (v) induced conversion expense on settlement of convertible notes. Reconciliations of net income, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility are presented in the table below. *(In thousands of U.S. Dollars)* | | Twelve Months Ended December 31, 2025 | | --- | ---: | | Reported net income | $45,526 | | Add (subtract): | | | Income tax expense | 17,767 | | Interest expense, net of interest income | 2,578 | | Depreciation and amortization, including film asset amortization | 62,446 | | Amortization of deferred financing costs(1) | 1,984 | | EBITDA | 130,301 | | Share-based and other non-cash compensation | 26,824 | | Unrealized investment losses | 867 | | Restructuring charges and other impairments | 2,478 | | Write-downs, including goodwill, asset impairments and credit loss expense | 9,211 | | Induced conversion expense on settlement of convertible notes | 15,264 | | Total Adjusted EBITDA | $184,945 | | Less: Non-controlling interest | (19,193) | | Adjusted EBITDA per Credit Facility - attributable to common shareholders | $165,752 | | (1)The amortization of deferred financing costs is recorded within Interest Expense in the Consolidated Statements of Operations. | | The Company also adjusts SG&A Expenses to exclude a portion of share-based compensation and related payroll taxes. Management uses non-GAAP and other financial measures such as this, internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. IMAX believes that this non-GAAP measure provides useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management and its financial and operational decision making. A reconciliation of SG&A Expenses, the most directly comparable GAAP measure presented in the Consolidated Statement of Operations in Part I, Item 1, to Adjusted Selling, General and Administrative Expenses is presented in the table below. *(In thousands of U.S. Dollars)* | | Years Ended December 31, 2025 | 2024 | | --- | ---: | ---: | | Total Selling, general and administrative expenses | 138,455 | 132,701 | | Less: Share-based compensation | (26,133) | (20,897) | | Total Adjusted Selling, General and Administrative expenses | $112,322 | $111,804 | The Company cautions users of its financial statements that these non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered in isolation, or as a substitute for, or superior to, the comparable GAAP amounts. ## Market risk As filed, 7,992 characters. The Company is exposed to market risk from foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. Market risk is the potential change in an instrument’s value caused by, for example, fluctuations in interest and currency exchange rates. The Company’s primary market risk exposure is the risk of unfavorable movements in exchange rates between the U.S. Dollar, the Canadian Dollar, and Chinese Renminbi (“RMB”). The Company does not use financial instruments for trading or other speculative purposes. ### Foreign Exchange Rate Risk A majority of the Company’s revenue is denominated in U.S. Dollars while a significant portion of its costs and expenses is denominated in Canadian Dollars. A portion of the Company’s net U.S. Dollar cash flows is converted to Canadian Dollars to fund Canadian Dollar expenses through the spot market. In addition, IMAX films generate box office in 91 different countries, and therefore unfavorable exchange rates between applicable local currencies and the U.S. Dollar could have an impact on the GBO generated by the Company’s exhibitor customers and its revenues. The Company has incoming cash flows from its revenue generating IMAX network and ongoing operating expenses in China through its majority-owned subsidiary IMAX Shanghai. In Japan, the Company has ongoing Yen-denominated operating expenses related to its Japanese operations. Net RMB and Japanese Yen cash flows are converted to U.S. Dollars through the spot market. The Company also has cash receipts under leases denominated in RMB, Japanese Yen, British Pound Sterling, Euros and Canadian Dollars. The Company manages its exposure to foreign exchange rate risks through its regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures as well as reduce earnings and cash flow volatility resulting from shifts in market rates. Certain of the Company’s PRC subsidiaries held approximately RMB 678.2 million or $96.5 million in cash and cash equivalents as of December 31, 2025 (December 31, 2024 — RMB 341.1 million or $47.5 million) and are required to transact locally in RMB. Foreign currency exchange transactions, including the remittance of any funds into and out of the PRC, are subject to controls and require the approval of the China State Administration of Foreign Exchange to complete. Any developments relating to the Chinese economy and any actions taken by the Chinese government are beyond the control of the Company; however, the Company monitors and manages its capital and liquidity requirements to ensure compliance with local regulatory and policy requirements. (Refer to “Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there” in Part I, Item 1A.) For the year ended December 31, 2025, the Company recorded a foreign exchange net loss of less than $0.1 million as compared to a foreign exchange net loss of $1.2 million in 2024, associated with the translation of foreign currency denominated monetary assets and liabilities. The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies. These foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) at inception, and continue to meet hedge effectiveness tests as of December 31, 2025, with settlement dates throughout 2026 and 2027. Foreign currency derivatives are recognized and measured on the Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with Selling, General and Administrative Expenses. For foreign currency cash flow hedging instruments related to Selling, General and Administrative Expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported within Accumulated Other Comprehensive Loss and reclassified to the Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Consolidated Statements of Operations. The notional value of foreign currency cash flow hedging instruments that qualify for hedge accounting as of December 31, 2025 was $48.4 million (December 31, 2024 — $48.4 million). A gain of $1.7 million was recorded to Other Comprehensive Income with respect to the change in fair value of these contracts in 2025 (2024 — loss of $3.5 million; 2023 — gain of $0.6 million). A loss of $1.3 million was reclassified from Accumulated Other Comprehensive Loss to Selling, General and Administrative Expenses in 2025 (2024 — loss of $0.6 million; 2023 — loss of $0.9 million). In 2025, there were no gains or losses resulting from a change in the classification of certain forward contracts no longer meeting the requirements for hedge accounting were reclassified from Accumulated Other Comprehensive Loss to Selling, General and Administrative Expenses (2024 — $nil). The notional value of forward contracts that do not qualify for hedge accounting as of December 31, 2025 was $nil (December 31, 2024 — $nil). For all derivative instruments, the Company is subject to counterparty credit risk to the extent that the counterparty may not meet its obligations to the Company. To manage this risk, the Company enters into derivative transactions only with major financial institutions. As of December 31, 2025, the Company’s Financing Receivables and working capital items denominated in Canadian Dollars, RMB, Japanese Yen, Euros and other foreign currencies translated into U.S. Dollars was $130.2 million. Assuming a 10% appreciation or depreciation in foreign currency exchange rates from the quoted foreign currency exchange rates as of December 31, 2025, the potential change in the fair value of foreign currency-denominated financing receivables and working capital items would have been $13.0 million, which would be mostly revalued through Shareholders’ Equity. A significant portion of the Company’s Selling, General, and Administrative Expenses is denominated in Canadian Dollars. Assuming a 1% change appreciation or depreciation in foreign currency exchange rates as of December 31, 2025, the potential change in the amount of Selling, General, and Administrative Expenses would be $0.3 million. ### Interest Rate Risk Management The Company’s earnings may also be affected by changes in interest rates and the resulting impact of those changes on its interest income from cash, and its interest expense from variable-rate borrowings. For the year ended December 31, 2025 the Company had drawn down $37.0 million on its Credit Agreement (the “Credit Facility”) (December 31, 2024 — $37.0 million), $nil on its HSBC China Facility (December 31, 2024 — $nil) and $nil on its Bank of China Facility (December 31, 2024 — $nil), which are all subject to variable effective interest rates. The Company’s variable rate debt instruments were $37.0 million as of December 31, 2025 and 2024. Variable rate debt instruments represented 8% of its total liabilities as of December 31, 2025 and 2024. If the interest rates available to the Company increased by 10%, the Company’s interest expense would increase by $0.2 million and interest income from cash would increase by $0.4 million. These amounts are determined by considering the impact of the hypothetical interest rates on the Company’s variable rate debt and cash balances as of December 31, 2025. ## Controls and procedures As filed, 3,188 characters. ### EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES The Company maintains disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the specified time periods and that such information is accumulated and communicated to management, including the CEO and Chief Financial Officer (“CFO”), to allow timely discussions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. The Company’s management, with the participation of its CEO and its CFO, has evaluated the effectiveness of the Company’s “disclosure controls and procedures” (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) as of December 31, 2025 and has concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective. The Company will continue to periodically evaluate its disclosure controls and procedures and will make modifications from time to time as deemed necessary to ensure that information is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. ### MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Management has used the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) framework in Internal Control-Integrated Framework (2013) to assess the effectiveness of the Company’s internal control over financial reporting. Management has assessed the effectiveness of the Company’s internal control over financial reporting and has concluded that such internal control over financial reporting was effective as of December 31, 2025. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, as stated in their report, which appears in Part II, Item 8. ### CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING There were no changes in the Company’s internal control over financial reporting which occurred during the three months ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Filed Feb 25, 2026. Source: SEC EDGAR, the filing index for accession 0001628280-26-011770. Last ingested by Listed: Nov 5, 2026, 12:30 ET. No prices; not investment advice.