IMAX Corporation Q4 FY2025 earnings call

1. 2025 was a transformational year with record $1.28 billion global box office, up 40% y/y, and 67 international local language releases. 2. Drove 166 new and upgraded IMAX systems agreements and 160 installations worldwide. 3. Studios put IMAX front and center in marketing, stock up over 44% in 2025, and IMAX releases earned 58 Academy Award nominations. 4. 2026 projected $1.4 billion global box office, 160 - 175 system installations, and mid 40s adjusted EBITDA margin. 5. Strong slate for 2026 including Christopher Nolan's The Odyssey, The Mandalorian and Grogu, Dune Part 3, etc. 6. Continued network expansion in high-growth underserved markets, North America, adding second IMAX locations, and exploring innovative deal structures

Content solutions revenues grew significantly, with fourth quarter revenues of $38 million (50% growth over prior year comparative period) and full year content revenue growth of 21%. Full-year content solutions gross profit of $100 million grew 50% year over year, with a 66% gross margin. Technology products and services segment had fourth quarter revenues up 32% year-over-year with a 58% gross profit margin, while full-year revenues grew 16% with a 57% gross profit margin. Installations reached 160 systems in 2025, up 10% year-over-year, with 4% growth in domestic network and just over 8% in rest of world

1. Projected $1.4 billion in global box office for 2026. 2. 160 to 175 system installations worldwide in 2026. 3. Total adjusted EBITDA margin in mid 40s range with a floor of 45% in 2026. 4. Aim to drive revenue growth at high single to low double digit CAGR through 2028, adjusted EBITDA margin over 50% by 2028, adjusted EPS growth at twice revenue rate, and free cash flow conversion approx 50% in 2026 and growing

Q: Omar Mijas of Wells Fargo asked about the state of the Chinese box office and early start to Chinese new year, and local language and alternative content box office.

A: Rich Gelfand responded that Chinese New Year had a B slate with titles slipping to summer, and there's runway for more local language films.

Q: Eric Walt with Texas Capital Securities asked about ticket pricing for IMAX showings.

A: Rich Gelfand said exhibitors decide ticket prices, but there's potential for increases with strong slate.

Q: Michael Hickey with StoneX asked about selecting films for IMAX.

A: Rich Gelfand said it's through meetings with filmmakers, studios, and considering reputation and talent.

Q: Chad Radon with Macquarie Capital asked about catalyst for rest-of-world growth.

A: Rich Gelfand said it's based on slate performance, ROI for exhibitors, and using data to replicate success.

Q: Steve Frankel with Rosenblatt Securities asked about ramping team for installations.

A: Rich Gelfand said there's potential to ramp installations over longer term.

Q: David Joyce with Seaport Research Partners asked about mix of sales vs JRSAs.

A: Natasha Fernandez said using balance sheet to expand network.

Q: David Karnofsky with J.P. Morgan asked about STL installs and upgrades market mix.

A: Rich Gelfand said generally stable, tracking towards 160 - 175 systems with 45 - 55% sale to JV mix.

Q: Eric Handler with Roth Capital asked about capital allocation.

A: Rich Gelfand said best investment is in network growth.

Q: Patrick Shaw with Barrington Research asked about second screen vs new market returns.

A: Rich Gelfand said similar return profile, analyzing ROI hurdles.

Q: Drew Crum with B-Rally Securities asked about international F1 screens and sports programming.

A: Rich Gelfand said exploring international F1 screens and considering sports with right formula