IMAX delivered a strong third quarter, outperforming Wall Street’s expectations for both revenue and adjusted profitability. Management attributed the company’s performance to a combination of record global box office results, robust growth in local language content, and an expanded portfolio of event-driven releases. CEO Richard Gelfond highlighted the breadth of IMAX’s content slate—including Hollywood blockbusters, Japanese anime, and music events—as a key factor, stating, “Our performance is increasingly driven by the full breadth of our content strategy.” The company also saw a surge in new and upgraded system signings, further supporting its global footprint.
Is now the time to buy IMAX? Find out in our full research report (it’s free for active Edge members).
IMAX (IMAX) Q3 CY2025 Highlights:
- Revenue: $106.7 million vs analyst estimates of $106.1 million (16.6% year-on-year growth, 0.6% beat)
- Adjusted EPS: $0.47 vs analyst estimates of $0.39 (20.3% beat)
- Adjusted EBITDA: $47.96 million vs analyst estimates of $44.09 million (45% margin, 8.8% beat)
- Operating Margin: 27.2%, up from 21.2% in the same quarter last year
- Market Capitalization: $1.77 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From IMAX’s Q3 Earnings Call
- Eric Handler (Roth Capital): Asked about the sustainability of high content solutions margins and how cost structures might evolve with further box office growth. CFO Natasha Fernandes pointed to stable costs and operating leverage, noting, "There is a lot of opportunity to continue to grow our margins."
- Eric Wold (Texas Capital Securities): Inquired about driving higher box office revenues through ticket pricing and marketing. CEO Richard Gelfond explained that while IMAX can influence marketing, pricing is determined by exhibitors, but rising demand may encourage higher ticket prices in the future.
- Drew Crum (Vivai Securities): Sought clarity on the outlook for 2026 and the ability to lap tough box office comps. Gelfond referenced a strong slate of five major films and indicated optimism for year-over-year growth, with more details to come at Investor Day.
- Omar Mejias (Wells Fargo): Asked about geographic priorities for network growth. Gelfond cited Japan, Western Europe, and North America as current bright spots, but stressed that opportunities exist globally, especially with improved box office economics.
- David Joyce (Seaport Research Partners): Queried the economics and programming strategy for alternative content versus traditional releases. Gelfond emphasized the use of alternative content during slower periods and noted that marketing costs are typically shared or minimized through strategic partnerships.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the rollout and performance of anticipated blockbuster releases, especially "Avatar: Fire and Ash" and next year’s tentpole films; (2) the pace of new system installations and signings in underpenetrated international markets; and (3) the continued contribution of local language and alternative content to box office and profit growth. The upcoming Investor Day in December will also be a key event for updates on strategy and long-term targets.
IMAX currently trades at $32.90, up from $32.07 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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