IMAX (NYSE:IMAX) Releases Earnings Results, Beats Estimates By $1.19 EPS

IMAX (NYSE:IMAX) posted its quarterly earnings results on Thursday. The company reported $2.21 EPS for the quarter, beating the consensus estimate of $1.02 by $1.19, FiscalAI reports. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The business had revenue of $174.55 million during the quarter, compared to analyst estimates of $168.53 million. During the same period in the previous year, the business posted $0.47 EPS. The company’s quarterly revenue was up 63.6% on a year-over-year basis.

Here are the key takeaways from IMAX’s conference call:

• IMAX reported its strongest quarter ever, with $175 million in revenue, $121 million in adjusted EBITDA and $712 million in global box office. Adjusted EPS was $2.21, including a $36.7 million tax benefit; excluding that one-time benefit, adjusted EPS was still a quarterly and full-year record at $1.58.
• Management expects 2026 box office to significantly exceed its $1.4 billion guidance and adjusted EBITDA margin to reach approximately 50%, above its prior mid-40s outlook. The company remains on track for 160–175 system installations this year.
• Demand is driving network expansion: IMAX has signed 105 systems year-to-date, 65% at new locations, and is negotiating a pipeline of roughly 150 potential new or upgraded theaters. Management is also exploring faster installation timelines, smaller-format auditoriums and 10–15 additional IMAX 70mm locations.
• Management highlighted a strong upcoming film slate, including Dune: Part Three, Avengers releases and multiple Filmed for IMAX titles, as support for continued box-office growth. It is also pursuing merchandise, licensing and technology partnerships, though executives said these opportunities are early and not yet quantifiable.
• Installations eased to 32 systems in the quarter, compared with 38 a year earlier, as exhibitors prioritized keeping auditoriums open during major releases. The company said the installation schedule is weighted toward the fourth quarter and depends on construction and opening timelines.

IMAX Stock Performance

Shares of IMAX stock traded down $3.64 during mid-day trading on Thursday, hitting $48.12. 2,494,230 shares of the stock traded hands, compared to its average volume of 1,143,875. The company’s 50-day simple moving average is $52.30 and its 200-day simple moving average is $43.10. The firm has a market cap of $2.64 billion, a price-to-earnings ratio of 66.83, a price-to-earnings-growth ratio of 1.30 and a beta of 0.54. IMAX has a twelve month low of $32.71 and a twelve month high of $57.73.

Insider Buying and Selling at IMAX

In other news, insider Kenneth Weissman sold 8,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $54.54, for a total transaction of $436,320.00. Following the sale, the insider directly owned 28,205 shares of the company’s stock, valued at $1,538,300.70. The trade was a 22.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Richard L. Gelfond sold 100,000 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $53.23, for a total value of $5,323,000.00. Following the sale, the chief executive officer directly owned 665,002 shares of the company’s stock, valued at approximately $35,398,056.46. This represents a 13.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 507,257 shares of company stock valued at $26,673,571 over the last quarter. Company insiders own 20.55% of the company’s stock.

Analysts Set New Price Targets

Several research firms have recently commented on IMAX. Wells Fargo & Company upped their target price on IMAX from $45.00 to $55.00 and gave the company an “equal weight” rating in a report on Thursday, October 15th. Morgan Stanley started coverage on IMAX in a research report on Thursday, September 24th. They issued an “overweight” rating and a $63.00 target price on the stock. Wall Street Zen upgraded IMAX from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Weiss Ratings raised shares of IMAX from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Finally, JPMorgan Chase & Co. upped their price target on shares of IMAX from $50.00 to $58.00 and gave the stock an “overweight” rating in a research report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $58.15.

Key IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: IMAX reported its best quarter in company history. Revenue reached $174.55 million, up 63.6% year over year and ahead of estimates, while EPS of $2.21 more than doubled the roughly $1.02 consensus. Record box office, led by The Odyssey, was the major driver. IMAX Q3 results
• Positive Sentiment: The Odyssey is set to return to theaters, including IMAX 70mm, in December. Another run could extend box-office momentum and reinforce demand for premium-format screenings. The Odyssey rerelease
• Positive Sentiment: IMAX China renewed service agreements with IMAX Corporation through 2029, supporting the ongoing relationship and associated service business. IMAX China agreement
• Neutral Sentiment: CEO Rich Gelfond discussed a planned two-week IMAX engagement for Netflix’s The Further Mis-Adventures of Cliff Booth, while expressing confusion that some theater circuits may not show it. The run could add content, but participation across theaters remains uncertain. Cliff Booth IMAX run
• Negative Sentiment: The supplied snapshot indicates shares are lower despite the earnings beat. It provides no specific bearish catalyst; profit-taking or valuation concerns may be contributing, with the stock’s reported P/E near 67 making expectations a possible consideration.

About IMAX

IMAX Corporation (NYSE: IMAX) is a global entertainment technology company that specializes in premium large-format cinema experiences. The company designs and supplies specialized theater systems that combine large screens, high-resolution projection, advanced sound, and immersive theater design to present feature films, documentaries, live events, and other content.

IMAX supports its theater partners with projection and sound equipment, theater design and installation services, and technology and maintenance support.