UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35066

IMAX Corporation

(Exact name of registrant as specified in its charter)


Canada			98-0140269
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

2525 Speakman Drive, Mississauga, Ontario, Canada L5K 1B1 (905) 403-6457			902 Broadway, Floor 20 New York, New York, USA 10010 (212) 821-0142

(Address of principal executive offices, zip code, telephone numbers)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, no par value

IMAX

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class						Outstanding as of ~~June~~September 30, 2025
Common Shares, no par value						53,~~782~~798,~~520~~934

IMAX CORPORATION

Table of Contents

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3839
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	61
Item 4.	Controls and Procedures	62
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	6463
Item 1A.	Risk Factors	6463
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6463
Item 5.	Other Information	6564
Item 6.	Exhibits	6665
Signatures		6766

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IMAX CORPORATION

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

			Page
The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report:
Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024			4
Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024			4
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024			5
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024			5
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024			6
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024			6
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024			7
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024			7
Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2025 and 2024			8
Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024			8
Notes to Condensed Consolidated Financial Statements			9

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IMAX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. Dollars, except share amounts)

(Unaudited)

	June 30,		December 31,
	September 30,		December 31,
	2025		2024
Assets
Cash and cash equivalents	$	~~109~~143,~~251~~106	$	100,592
Accounts receivable, net of allowance for credit losses	~~126~~108,~~949~~418		107,669
Financing receivables, net of allowance for credit losses	~~121~~118,~~122~~944		119,885
Variable consideration receivables, net of allowance for credit losses	83,~~276~~792		82,593
Inventories	3641,~~699~~435		32,840
Prepaid expenses	1315,~~171~~054		13,121
Film assets, net of accumulated amortization	1011,~~309~~976		8,686
Property, plant and equipment, net of accumulated depreciation	243,~~672~~836		240,133
Other assets	2324,~~356~~002		22,441
Deferred income tax assets, net of valuation allowance	1312,~~630~~728		14,499
Goodwill	52,815		52,815
Other intangible assets, net of accumulated amortization	3433,~~332~~467		35,124
Total assets	$	~~868~~889,~~582~~573	$	830,398
Liabilities
Accounts payable	$	3122,~~721~~484	$	19,803
Accrued and other liabilities	8596,~~322~~136		100,916
Deferred revenue	5564,~~924~~505		52,686
Revolving credit facility borrowings, net of unamortized debt issuance costs	4726,~~547~~477		36,356
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs	230,~~474~~743		229,901
Deferred income tax liabilities	12,521		12,521
Total liabilities	~~463~~452,~~509~~866		452,183
Commitments, contingencies and guarantees (see Note 7)
Non-controlling interests	~~691~~721		680
Shareholders’ equity
Capital stock common shares — no par value. Authorized — unlimited number. 53,782,520 issued and outstanding (December 31, 2024 — 52,946,200 issued and outstanding)	415,142		401,420
Capital stock common shares — no par value. Authorized — unlimited number. 53,798,934 issued and outstanding (December 31, 2024 — 52,946,200 issued and outstanding)	415,617		401,420
Other equity	~~175~~181,~~901~~998		185,268
Statutory surplus reserve	4,219		4,051
Accumulated deficit	(~~261~~240,~~261~~604)		(274,675)
Accumulated other comprehensive loss	(1311,~~589~~696)		(16,598)
Total shareholders’ equity attributable to common shareholders	~~320~~349,~~412~~534		299,466
Non-controlling interests	8386,~~970~~452		78,069
Total shareholders’ equity	~~404~~435,~~382~~986		377,535
Total liabilities and shareholders’ equity	$	~~868~~889,~~582~~573	$	830,398
(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. Dollars, except per share amounts)

(Unaudited)

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

2025

2024

2025

2024

Revenues

Technology sales

1819,~~842~~360

2026,~~420~~305

3251,~~366~~726

2854,~~324~~629

Image enhancement and maintenance services

5061,~~854~~029

5246,~~189~~891

~~101~~162,~~607~~636

~~102~~149,~~537~~428

Technology rentals

1923,~~116~~336

1416,~~043~~122

3861,~~427~~763

3248,~~644~~766

Finance income

2,~~872~~929

2,~~309~~134

58,~~951~~880

46,~~579~~713

91,684

88,961

178,351

168,084

106,654

91,452

285,005

259,536

Costs and expenses applicable to revenues

Technology sales

9,~~352~~454

910,~~222~~605

1626,~~575~~029

1324,~~989~~594

Image enhancement and maintenance services

2123,~~376~~065

2923,~~089~~087

4063,~~821~~886

5073,~~284~~371

Technology rentals

76,~~354~~864

6,~~723~~741

1421,~~177~~041

1219,~~995~~736

38,082

45,034

71,573

77,268

39,383

40,433

110,956

117,701

Gross margin

5367,~~602~~271

4351,~~927~~019

~~106~~174,~~778~~049

90141,~~816~~835

Selling, general and administrative expenses

3534,~~302~~219

3731,~~564~~466

68102,~~764~~983

68100,~~821~~287

Research and development

1,~~542~~505

~~2,031~~(265)

24,~~860~~365

43,~~218~~953

Amortization of intangible assets

1,~~809~~906

1,~~321~~544

35,~~540~~446

24,~~664~~208

Credit loss (reversal) expense, net

(183)

139

(309)

174

Credit loss expense (reversal), net

596

(1,137)

287

(963)

Restructuring and other charges

~~786~~—

—

843

—

Income from operations

1429,~~346~~045

219,~~872~~411

3160,~~080~~125

1434,~~939~~350

Realized and unrealized investment gains

3334

6599

6294

Retirement benefits non-service expense

(133)

(107)

(203)

(214)

Retirement benefits non-service recovery (expense)

(109)

(186)

(323)

Interest income

~~1,114~~557

~~561~~625

12,~~654~~211

1,~~095~~720

Interest expense

(1,~~927~~832)

(2,~~282~~240)

(35,~~728~~560)

(46,~~227~~467)

Income before taxes

1327,~~433~~821

117,~~076~~719

2856,~~868~~689

1129,~~655~~374

Income tax (expense) recovery

(1,198)

3,997

(8,483)

(1,162)

Income tax expense

(5,205)

(2,376)

(13,688)

(3,538)

Net income

1222,~~235~~616

515,~~073~~343

2043,~~385~~001

1025,~~493~~836

Net income attributable to non-controlling interests

(~~980~~1,959)

(1,~~490~~447)

(68,~~803~~762)

(35,~~636~~083)

Net income attributable to common shareholders

1120,~~255~~657

313,~~583~~896

1334,~~582~~239

620,~~857~~753

Net income per share attributable to common shareholders:

Basic

0.2138

0.0726

0.2564

0.1339

Diluted

0.2037

0.0726

0.2562

0.1339

Weighted average shares outstanding (in thousands):

Basic

53,~~751~~788

52,~~633~~682

53,~~448~~561

52,~~568~~605

Diluted

55,~~161~~565

5354,~~428~~089

55,~~064~~242

53,~~386~~628

(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. Dollars)

(Unaudited)

	Three Months Ended				~~Six~~Nine Months Ended
	June 30,				June 30,
	September 30,				September 30,
	2025		2024		2025		2024
Net income	$	1222,~~235~~616	$	515,~~073~~343	$	2043,~~385~~001	$	1025,~~493~~836
Other comprehensive income (loss) before tax
Other comprehensive income before tax
Unrealized net gain (loss) from cash flow hedging instruments	2,520		(365)		1,805		(1,281)
Unrealized net (loss) gain from cash flow hedging instruments	(1,223)		337		582		(944)
Realized net loss from cash flow hedging instruments	~~292~~120		67162		1,~~627~~747		78240
Foreign currency translation adjustments	~~600~~1,637		~~(454)~~3,775		12,~~021~~658		~~(996)~~2,779
Defined benefit and postretirement benefit plans	~~(141)~~2,090		(149)		~~(346)~~1,744		(~~398~~547)
Total other comprehensive income (loss) before tax	3,271		(901)		4,107		(2,597)
Total other comprehensive income before tax	2,624		4,125		6,731		1,528
Income tax (expense) benefit related to other comprehensive income (loss)	(699)		117		(808)		420
Income tax (expense) benefit related to other comprehensive income	(268)		(92)		(1,076)		328
Other comprehensive income (loss), net of tax	2,572		(784)		3,299		(2,177)
Other comprehensive income, net of tax	2,356		4,033		5,655		1,856
Comprehensive income	1424,~~807~~972		419,~~289~~376		2348,~~684~~656		827,~~316~~692
Comprehensive income attributable to non-controlling interests	(12,~~149~~422)		(12,~~359~~521)		(79,~~093~~515)		(35,~~351~~872)
Comprehensive income attributable to common shareholders	$	1322,~~658~~550	$	216,~~930~~855	$	1639,~~591~~141	$	421,~~965~~820
(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

(Unaudited)

	Six Months Ended
	Nine Months Ended
	June 30,
	September 30,
	2025		2024
Operating Activities
Net income	$	2043,~~385~~001	$	1025,~~493~~836
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	3046,~~809~~415		3448,~~002~~902
Amortization of deferred financing costs	~~984~~1,492		~~985~~1,478
Credit loss (reversal) expense, net	(309)		174
Credit loss expense (reversal), net	287		(963)
Write-downs, including asset impairments	1,~~047~~303		23,~~399~~034
Deferred income tax expense	72		(7,722)
Deferred income tax expense (recovery)	734		(7,339)
Share-based and other non-cash compensation	1219,~~767~~050		1117,~~753~~261
Unrealized foreign currency exchange (gain) loss	(278)		51
Unrealized foreign currency exchange gain	(170)		(527)
Realized and unrealized investment gain	(6599)		(6294)
Changes in assets and liabilities:
Accounts receivable	(181,~~702~~131)		1423,~~492~~001
Inventories	(48,~~027~~587)		(6,~~271~~181)
Film assets	(1116,~~318~~435)		(1217,~~741~~892)
Deferred revenue	311,~~116~~724		(413,~~397~~393)
Changes in other operating assets and liabilities	~~(4,300)~~110		(1913,~~086~~771)
Net cash provided by operating activities	3097,~~181~~694		2459,~~070~~352
Investing Activities
Purchase of property, plant and equipment	(46,~~006~~750)		(23,~~690~~816)
Investment in equipment for joint revenue sharing arrangements	(1424,~~666~~114)		(921,~~757~~728)
Acquisition of other intangible assets	(3,~~376~~915)		(34,~~191~~802)
Net cash used in investing activities	(2234,~~048~~779)		(1530,~~638~~346)
Financing Activities
Revolving credit facility borrowings	2985,000		5155,000
Repayments of revolving credit facility borrowings	(1893,000)		(2132,000)
Repayments of other borrowings	(372)		(311)
Credit facility amendment fees paid	(2,041)		—
Repayments of other borrowings	(538)		(489)
Repurchase of common shares	—		(18,102)
Repurchase of common shares - IMAX China	(1,454)		—
Taxes withheld and paid on employee stock awards vested	(9,742)		(4,978)
Common shares issued - stock options exercised	1,~~048~~394		—98
Net cash provided by financing activities	480		6,609
Principal payment under finance lease obligations	—		(480)
Effects of exchange rate changes on cash	46		311
Net cash used in financing activities	(20,381)		(951)
Increase in cash and cash equivalents during period	8,659		15,352
Effects of exchange rate changes on cash	(20)		249
Increase in cash and cash equivalents during period	42,514		28,304
Cash and cash equivalents, beginning of period	100,592		76,200
Cash and cash equivalents, end of period	$	~~109~~143,~~251~~106	$	91104,~~552~~504
(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of U.S. Dollars)

(Unaudited)

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

2025

2024

2025

2024

Adjustments to capital stock:

Balance, beginning of period

~~414~~415,~~041~~142

~~393~~394,~~597~~493

401,420

389,048

Restricted share units vested, net of shares withheld for employee tax obligations

~~970~~20

~~954~~12

12,~~350~~370

14,~~020~~032

Employee stock options exercised, net of shares withheld for employee tax obligations

~~100~~346

—98

1,~~048~~394

—98

Grant date fair value of stock options exercised

31109

—

~~324~~433

—

Average carrying value of repurchased and retired common shares

—

~~(58)~~—

—

(8,575)

Balance, end of period

415,~~142~~617

394,~~493~~603

415,~~142~~617

394,~~493~~603

Adjustments to other equity:

Balance, beginning of period

~~169~~175,~~751~~901

~~171~~176,~~877~~632

185,268

185,087

Amortization of share-based payment expense - restricted share units

54,~~818~~118

43,~~622~~318

913,~~563~~681

710,~~546~~864

Amortization of share-based payment expense - performance stock units

2,~~022~~108

1,~~992~~985

36,~~995~~103

35,~~879~~864

Restricted share units vested

(~~1,574~~129)

(~~1,848~~24)

(22,~~516~~645)

(19,~~791~~815)

Grant date fair value of stock options exercised

~~(31)~~—

—

(324)

—

Change in ownership interest related to IMAX China

~~(85)~~—

~~(11)~~—

(85)

(89)

Balance, end of period

~~175~~181,~~901~~998

~~176~~181,~~632~~911

~~175~~181,~~901~~998

~~176~~181,~~632~~911

Adjustments to statutory surplus reserve:

Balance, beginning of period

4,~~106~~219

3,932

4,051

3,932

Change in statutory surplus reserve, IMAX China

~~113~~—

—

168

—

Balance, end of period

4,219

3,932

4,219

3,932

Adjustments to accumulated deficit:

Balance, beginning of period

(~~272~~261,~~403~~261)

(~~297~~293,~~284~~889)

(274,675)

(292,845)

Net income attributable to common shareholders

1120,~~255~~657

313,~~583~~896

1334,~~582~~239

620,~~857~~753

Statutory surplus reserve deducted from retained earnings, IMAX China

~~(113)~~—

—

(168)

—

Common shares repurchased and retired

—

~~(188)~~—

—

(7,901)

Balance, end of period

(~~261~~240,~~261~~604)

(~~293~~279,~~889~~993)

(~~261~~240,~~261~~604)

(~~293~~279,~~889~~993)

Adjustments to accumulated other comprehensive loss:

Balance, beginning of period

(1513,~~992~~589)

(13,~~320~~974)

(16,598)

(12,081)

Other comprehensive income (loss), net of tax

2,403

(654)

3,009

(1,893)

Other comprehensive income, net of tax

1,893

2,959

4,902

1,066

Balance, end of period

(1311,~~589~~696)

(1311,~~974~~015)

(1311,~~589~~696)

(1311,~~974~~015)

Adjustments to non-controlling interests:

Balance, beginning of period

8483,~~110~~970

7375,~~928~~111

78,069

71,790

Net income attributable to non-controlling interests

~~965~~1,929

1,~~482~~431

68,~~792~~721

35,~~636~~067

Other comprehensive income (loss), net of tax

169

(130)

290

(284)

Other comprehensive income, net of tax

463

1,073

753

789

Share-based compensation attributable to non-controlling interests

9590

~~(65)~~58

~~188~~278

~~(6)~~52

Change in ownership interest related to IMAX China common share repurchases

~~(1,369)~~—

~~(104)~~—

(1,369)

(25)

Balance, end of period

8386,~~970~~452

7577,~~111~~673

8386,~~970~~452

7577,~~111~~673

Total Shareholders’ Equity

~~404~~435,~~382~~986

~~342~~367,~~305~~111

~~404~~435,~~382~~986

~~342~~367,~~305~~111

(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)

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IMAX CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in thousands of U.S. Dollars, unless otherwise stated)

1. Basis of Presentation

Accounting Principles

IMAX Corporation (together with its subsidiaries, unless the context requires otherwise, the “Company” or “IMAX”), prepares financial statements in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures have been condensed or omitted as permitted by such rules and regulations. In the opinion of the Company’s management, the unaudited Condensed Consolidated Financial Statements reflect all necessary adjustments for a fair statement of interim results. The Condensed Consolidated Balance Sheet at December 31, 2024 was derived from the Company’s audited annual Consolidated Financial Statements in the Company’s 2024 Annual Report on Form 10-K (the “2024 Form 10-K”). The interim results presented in the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows are not necessarily indicative of results for a full year.

These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements in the 2024 Form 10-K, which includes significant accounting policies adopted by the Company.

Principles of Consolidation

These unaudited Condensed Consolidated Financial Statements include the accounts of IMAX Corporation together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has evaluated its various variable interests to determine whether they are VIEs as required by U.S. GAAP.

The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of and consolidates five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which continues to not be material to the Company’s Condensed Consolidated Financial Statements. A change in the value of an equity method investment that is other than temporary is recognized in the Condensed Consolidated Statements of Operations.

As of ~~June~~September 30, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Total assets	$	1,~~787~~828	$	1,459
Total liabilities	$	~~362~~360	$	246

Estimates and Assumptions

In preparing the Company’s Condensed Consolidated Financial Statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those reported in Note 2 of the Company’s audited Consolidated Financial Statements included in its 2024 Form 10-K. The significant estimates made by management include, but are not limited to: (i) the allocation of the transaction price in an IMAX System arrangement to distinct performance obligations; (ii) the amount of variable consideration to be earned on sales of IMAX Systems based on projections of future box office performance and inflation; (iii) expected credit losses on accounts receivable, financing receivables, and variable consideration receivables; (iv) provisions for the write-down of excess and obsolete inventory; (v) the fair values of the reporting units used in assessing the recoverability of goodwill; (vi) the cash flow projections used in testing the recoverability of long-lived assets such as the system equipment supporting joint revenue sharing arrangements; (vii) the economic lives of the system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of intangible assets; (ix) the ultimate revenue forecasts used to test the recoverability of film assets; (x) the discount rates used to determine the present value of financing receivables, variable consideration and lease liabilities, as well as to determine

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the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill; (xi) pension plan assumptions; (xii) estimates related to the fair value and projected vesting of share-based payment awards; (xiii) the valuation of deferred income tax assets; and (xiv) reserves related to uncertain tax positions.

2. New Accounting Standards and Accounting Changes

Issued FASB Accounting Standard Codification Updates Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). The amendments in ASU 2023-09 improve the transparency of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation, and (ii) income taxes to be paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning on or after December 31, 2024. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements disclosures related to tax.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued Accounting Standard Update No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” (“ASU 2024-03”). The amendments in ASU 2024-03 expand disclosures about specific expense categories presented on the face of the income statement and addresses requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods thereafter with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

~~The~~Measurement ~~Company considers the applicability and impact~~ of ~~all~~Credit ~~recently~~Losses ~~issued~~for ~~FASB~~Accounts ~~accounting~~Receivable ~~standard codification updates. ASUs that are not noted above were assessed~~ and ~~determined~~Contract ~~to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended June 30, 2025.~~Assets

In July 2025, the FASB issued Accounting Standard Update No. 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments in ASU 2025-05 provide a practical expedient that allows entities to assume current economic conditions as of the balance sheet date will remain unchanged throughout the reasonable and supportable forecast period when estimating expected credit losses for eligible financial assets, including trade receivables and contract assets. ASU 2025-05 is effective for fiscal periods beginning after December 15, 2025, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued Accounting Standard Update No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). The amendments in ASU 2025-06 clarify and refine the criteria for capitalizing costs related to internal-use software. Under the new guidance, capitalization is permitted when both of the following conditions are met: (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for fiscal periods beginning after December 15, 2027, and interim periods thereafter. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended September 30, 2025.

3. Receivables

The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company.

In order to mitigate the credit risk associated with ~~its~~the Company’s receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes 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. The Company’s internal credit quality classifications are reported in Note 4 of the Company’s audited Consolidated Financial Statements included in its 2024 Form 10-K.

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analysis of collections history and aging. This monitoring process includes 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. The Company’s internal credit quality classifications are reported in Note 4 of the Company’s audited Consolidated Financial Statements included in its 2024 Form 10-K.

During the period when the accretion of Finance Income is suspended for Financing Receivables, any payments received from a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a reversal of the provision is recorded to the extent of the residual cash received. Once the collectability issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of Finance Income.

When a customer’s aging exceeds 90 days, the Company’s policy is to perform an enhanced review to assess collectability of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues.

The Company develops an estimate of expected 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 considering management’s internal credit quality classifications. Additional credit loss provisions are also recorded taking into account macro-economic and industry risk factors. The write-off of any billed receivable balance requires the approval of management.

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Management’s judgments regarding expected credit losses are based on the facts available to management 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. The impacts of inflation, and rising interest rates may impact future credit losses. The Company will continue to monitor economic trends and conditions and portfolio performance and adjust its allowance for credit loss accordingly.

Accounts Receivable

Accounts receivable principally includes amounts currently due to the Company under IMAX System sale and sales-type lease arrangements, contingent fees owed by theater operators as a result of box office performance, and fees for maintenance services. Accounts receivable also includes amounts due to the Company from movie studios and other content creators principally for digitally remastering films into IMAX formats, as well as for film distribution and post-production services.

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Three Months Ended								~~Six~~Nine Months Ended
	June 30, 2025								June 30, 2025
	September 30, 2025								September 30, 2025
(In thousands of U.S. Dollars)	TheaterOperators		Studios		Other		Total		TheaterOperators		Studios		Other		Total
Beginning balance	$	11,~~483~~568	$	1,~~236~~277	$	~~455~~429	$	13,~~174~~274	$	11,678	$	1,017	$	583	$	13,278
Current period provision (reversal), net	83545		~~115~~(186)		~~(26)~~54		~~172~~413		~~(33)~~512		~~522~~336		(~~154~~100)		~~335~~748
Write-offs, net of recoveries	(1465)		(7462)		—		(88127)		(1479)		(~~262~~324)		—		(~~276~~403)
Foreign exchange	16(23)		—		—		16(23)		(6386)		—		—		(6386)
Ending balance	$	1112,~~568~~025	$	1,~~277~~029	$	~~429~~483	$	13,~~274~~537	$	1112,~~568~~025	$	1,~~277~~029	$	~~429~~483	$	13,~~274~~537

	Three Months Ended								Six Months Ended
	June 30, 2024								June 30, 2024
(In thousands of U.S. Dollars)	TheaterOperators		Studios		Other		Total		TheaterOperators		Studios		Other		Total
Beginning balance	$	14,247	$	630	$	1,079	$	15,956	$	14,355	$	616	$	1,006	$	15,977
Current period provision (reversal), net	53		24		1		78		(41)		38		74		71
Write-offs, net of recoveries	(178)		(3)		—		(181)		(178)		(3)		—		(181)
Foreign exchange	(27)		—		—		(27)		(41)		—		—		(41)
Ending balance	$	14,095	$	651	$	1,080	$	15,826	$	14,095	$	651	$	1,080	$	15,826

For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $0.1 million and decreased by less than $0.1 million, respectively (2024 — decreased by $0.1 million and $0.2 million, respectively).

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	Three Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2024
(In thousands of U.S. Dollars)	Theater Operators		Studios		Other		Total		Theater Operators		Studios		Other		Total
Beginning balance	$	14,095	$	651	$	1,080	$	15,826	$	14,355	$	616	$	1,006	$	15,977
Current period (reversal) provision, net	(2,079)		600		(13)		(1,492)		(2,120)		638		61		(1,421)
Write-offs, net of recoveries	—		—		—		—		(178)		(3)		—		(181)
Foreign exchange	118		—		—		118		77		—		—		77
Ending balance	$	12,134	$	1,251	$	1,067	$	14,452	$	12,134	$	1,251	$	1,067	$	14,452

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $0.3 million and $0.3 million, respectively (2024 — decreased by $1.4 million and $1.5 million, respectively).

Financing Receivables

Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Systems. As of ~~June~~September 30, 2025 and December 31, 2024, financing receivables consisted of the following:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Net investment in leases:
Gross minimum payments due under sales-type leases	$	30,~~203~~931	$	30,890
Unearned finance income	(1,~~108~~057)		(887)
Present value of minimum payments due under sales-type leases	29,~~095~~874		30,003
Allowance for credit losses	(~~454~~456)		(664)
Net investment in leases	2829,~~641~~418		29,339
Financed sales receivables:
Gross minimum payments due under financed sales	~~128~~124,~~917~~797		127,906
Unearned finance income	(2625,~~617~~378)		(27,199)
Present value of minimum payments due under financed sales	~~102~~99,~~300~~419		100,707
Allowance for credit losses	(9,~~819~~893)		(10,161)
Net financed sales receivables	9289,~~481~~526		90,546
Total financing receivables	$	~~121~~118,~~122~~944	$	119,885
Net financed sales receivables due within one year	$	3228,~~336~~459	$	30,136
Net financed sales receivables due after one year	6061,~~145~~067		60,410
Total financed sales receivables	$	9289,~~481~~526	$	90,546

As of ~~June~~September 30, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Weighted-average remaining lease term (in years):
Sales-type lease arrangements	8.63		8.5
Weighted-average interest rate
Sales-type lease arrangements	7.1524	%	7.24	%
Financed sales receivables	8.9485	%	8.95	%

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of June 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

(In thousands of U.S. Dollars)	By Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	543	$	3,476	$	3,026	$	3,076	$	8,856	$	8,710	$	27,687
Credit Watch	—		—		—		—		—		—		—
Pre-approved transactions	1,007		—		—		—		—		—		1,007
Transactions suspended	—		—		—		—		—		401		401
Total net investment in leases	$	1,550	$	3,476	$	3,026	$	3,076	$	8,856	$	9,111	$	29,095

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The tables below provide information on the Company’s net investment in leases by credit quality indicator as of September 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.


(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	1,819	$	3,383	$	2,968	$	2,906	$	8,565	$	9,832	$	29,473
Credit Watch	—		—		—		—		—		—		—
Pre-approved transactions	—		—		—		—		—		—		—
Transactions suspended	—		—		—		—		—		401		401
Total net investment in leases	$	1,819	$	3,383	$	2,968	$	2,906	$	8,565	$	10,233	$	29,874


(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	3,469	$	3,190	$	3,057	$	6,625	$	1,963	$	1,931	$	20,235
Credit Watch	—		—		—		—		—		—		—
Pre-approved transactions	—		—		—		2,800		1,477		4,664		8,941
Transactions suspended	—		—		426		—		—		401		827
Total net investment in leases	$	3,469	$	3,190	$	3,483	$	9,425	$	3,440	$	6,996	$	30,003

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of ~~June~~September 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

(In thousands of U.S. Dollars)	By Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Total
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	56,~~966~~130	$	56,~~834~~476	$	67,~~757~~570	$	5,~~226~~018	$	5,~~245~~172	$	4239,~~626~~351	$	7169,~~654~~717
Credit Watch	—		—		—		—		—		~~533~~368		~~533~~368
Pre-approved transactions	~~619~~—		~~664~~612		1,~~054~~063		~~223~~—		3,~~700~~313		9,~~879~~206		1614,~~139~~194
Transactions suspended	—		—		—		~~298~~525		~~114~~503		1314,~~562~~112		1315,~~974~~140
Total financed sales receivables	$	6,~~585~~130	$	67,~~498~~088	$	78,~~811~~633	$	5,~~747~~543	$	98,~~059~~988	$	6663,~~600~~037	$	~~102~~99,~~300~~419


(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,217	$	7,249	$	5,980	$	6,152	$	4,974	$	41,570	$	72,142
Credit Watch	—		—		—		—		—		567		567
Pre-approved transactions	411		779		298		3,468		1,899		8,132		14,987
Transactions suspended	—		—		—		114		143		12,754		13,011
Total financed sales receivables	$	6,628	$	8,028	$	6,278	$	9,734	$	7,016	$	63,023	$	100,707

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of June 30, 2025 and December 31, 2024:

	As of June 30, 2025
(In thousands of U.S. Dollars)	Accrued and Current		30-89Days		90+Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	213	$	380	$	2,541	$	3,134	$	25,961	$	29,095	$	(454)	$	28,641
Financed sales receivables	1,336		2,185		11,277		14,798		87,502		102,300		(9,819)		92,481
Total	$	1,549	$	2,565	$	13,818	$	17,932	$	113,463	$	131,395	$	(10,273)	$	121,122

	As of December 31, 2024
(In thousands of U.S. Dollars)	Accrued and Current		30-89Days		90+Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	222	$	218	$	3,185	$	3,625	$	26,378	$	30,003	$	(664)	$	29,339
Financed sales receivables	895		1,019		12,462		14,376		86,331		100,707		(10,161)		90,546
Total	$	1,117	$	1,237	$	15,647	$	18,001	$	112,709	$	130,710	$	(10,825)	$	119,885

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The following tables provide ~~information~~an ~~about~~aging analysis for the Company’s net investment in leases and financed sales receivables ~~with billed amounts past due for which it continues to accrue finance income~~ as of ~~June~~September 30, 2025 and December 31, 2024~~. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.~~:

As of June 30, 2025

As of September 30, 2025

(In thousands of U.S. Dollars)

Accrued and Current

30-89Days

90+Days

Billed

Unbilled

~~Allowance~~Recorded ~~for Credit Losses~~Receivable

~~Net~~Allowance for Credit Losses

Net

Net investment in leases

~~200~~242

~~355~~183

2,~~541~~613

3,~~096~~038

1826,~~702~~836

~~(6)~~29,874

~~21,792~~(456)

29,418

Financed sales receivables

1,~~033~~341

1,~~662~~425

911,~~113~~429

1114,~~808~~195

3985,~~253~~224

~~(959)~~99,419

50(9,~~102~~893)

89,526

Total

1,~~233~~583

21,~~017~~608

1114,~~654~~042

1417,~~904~~233

57112,~~955~~060

~~(965)~~129,293

71(10,~~894~~349)

118,944


	As of December 31, 2024
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	222	$	218	$	3,185	$	3,625	$	26,378	$	30,003	$	(664)	$	29,339
Financed sales receivables	895		1,019		12,462		14,376		86,331		100,707		(10,161)		90,546
Total	$	1,117	$	1,237	$	15,647	$	18,001	$	112,709	$	130,710	$	(10,825)	$	119,885

The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of September 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.


	As of September 30, 2025
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses		Net
Net investment in leases	$	223	$	183	$	2,613	$	3,019	$	17,929	$	(6)	$	20,942
Financed sales receivables	744		1,035		8,606		10,385		31,886		(1,176)		41,095
Total	$	967	$	1,218	$	11,219	$	13,404	$	49,815	$	(1,182)	$	62,037


	As of December 31, 2024
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses		Net
Net investment in leases	$	222	$	218	$	3,185	$	3,625	$	20,176	$	(6)	$	23,795
Financed sales receivables	727		610		10,143		11,480		42,208		(1,086)		52,602
Total	$	949	$	828	$	13,328	$	15,105	$	62,384	$	(1,092)	$	76,397

The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of ~~June~~September 30, 2025 and December 31, 2024:

	As of June 30, 2025						As of December 31, 2024
	As of September 30, 2025						As of December 31, 2024
(In thousands of U.S. Dollars)	Recorded Receivable		Allowance for Credit Losses		Net		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	401	$	(401)	$	—	$	827	$	(614)	$	213
Net financed sales receivables	3029,~~646~~702		(9,242)		2120,~~404~~460		28,565		(8,317)		20,248
Total	$	3130,~~047~~103	$	(9,643)	$	2120,~~404~~460	$	29,392	$	(8,931)	$	20,461

For the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status. For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company recognized ~~less~~$0.1 million ~~than~~and $0.12 million, respectively (2024 — ~~less than~~ $0.34 million and $01.70 million) in Finance Income related to the financed sales receivables in nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended				Six Months Ended
	June 30, 2025				June 30, 2025
(In thousands of U.S. Dollars)	Net Investment in Leases		Net FinancedSales Receivables		Net Investment in Leases		Net FinancedSales Receivables
Beginning balance	$	667	$	9,957	$	664	$	10,161
Current period reversal, net	(213)		(147)		(210)		(346)
Foreign exchange	—		9		—		4
Ending balance	$	454	$	9,819	$	454	$	9,819

	Three Months Ended				Six Months Ended
	June 30, 2024				June 30, 2024
(In thousands of U.S. Dollars)	Net Investment in Leases		Net FinancedSales Receivables		Net Investment in Leases		Net FinancedSales Receivables
Beginning balance	$	451	$	9,616	$	453	$	9,617
Current period (reversal) provision, net	(1)		17		3		13
Foreign exchange	—		(8)		(6)		(5)
Ending balance	$	450	$	9,625	$	450	$	9,625

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~~For~~The ~~the~~following ~~three~~tables ~~and~~summarize ~~six~~the ~~months~~activity ~~ended~~in ~~June 30, 2025,~~ the ~~Company’s~~ allowance for ~~current expected~~ credit losses related to ~~its~~the Company’s net investment in leases ~~decreased~~and byfinanced ~~$0.2~~sale ~~million~~receivables ~~and~~for ~~$0.2~~the ~~million,~~three ~~respectively,~~ and ~~financed~~nine ~~sale~~months ~~receivables~~ended ~~decreased~~September by30, ~~$0.1 million~~2025 and ~~$0.3 million, respectively.~~2024:

For the three and six months ended June 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by less than $0.1 million, respectively, and financed sale receivables increased by less than $0.1 million, respectively.


	Three Months Ended				Nine Months Ended
	September 30, 2025				September 30, 2025
(In thousands of U.S. Dollars)	Net Investment in Leases		Net Financed Sales Receivables		Net Investment in Leases		Net Financed Sales Receivables
Beginning balance	$	454	$	9,819	$	664	$	10,161
Current period provision (reversal), net	2		83		(208)		(263)
Foreign exchange	—		(9)		—		(5)
Ending balance	$	456	$	9,893	$	456	$	9,893


	Three Months Ended				Nine Months Ended
	September 30, 2024				September 30, 2024
(In thousands of U.S. Dollars)	Net Investment in Leases		Net Financed Sales Receivables		Net Investment in Leases		Net Financed Sales Receivables
Beginning balance	$	450	$	9,625	$	453	$	9,617
Current period provision (reversal), net	67		(148)		70		(135)
Foreign exchange	—		27		(6)		22
Ending balance	$	517	$	9,504	$	517	$	9,504

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases increased by less than $0.1 million and decreased by $0.2 million, respectively, and net financed sale receivables increased by $0.1 million and decreased by $0.3 million, respectively.

For the three and nine months ended September 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases increased by $0.1 million, respectively, and net financed sale receivables decreased by $0.1 million, respectively.

Variable Consideration Receivables

In sale arrangements, variable consideration may become due to the Company from theater operators if certain annual minimum box office receipt thresholds are exceeded. Such variable consideration is recorded as revenue in the period when the sale is recognized and adjusted in future periods based on actual results and changes in estimates. Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal.

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Three Months Ended				~~Six~~Nine Months Ended
	June 30,				June 30,
	September 30,				September 30,
	2025		2024		2025		2024
(In thousands of U.S. Dollars)	Theater Operators		Theater Operators		Theater Operators		Theater Operators
Beginning balance	$	~~107~~120	$	~~636~~677	$	116	$	633
Current period provision, net	13—		41116		4		44160
Foreign exchange	—		—3		—		—3
Ending balance	$	120	$	~~677~~796	$	120	$	~~677~~796

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables did not change and increased by less than $0.1 million, respectively (2024 — increased by ~~less~~$0.1 ~~than~~million and $0.12 million, respectively).

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4. Lease Arrangements

IMAX Corporation as a Lessor

The Company provides IMAX Systems to customers through 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 fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s sales-type lease arrangements are described in Note 2 of the Company’s audited Consolidated Financial Statements included in its 2024 Form 10-K. Under the Company’s sales-type lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. The Company’s sales-type lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.

The Company also provides IMAX Systems to customers through joint revenue sharing arrangements (“JRSAs”). Under the traditional form of these arrangements, in exchange for providing the IMAX System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than a fixed upfront fee or annual minimum payments.

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.

Under JRSAs, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s JRSAs are typically non-cancellable for ten years or longer with renewal provisions. Title to the IMAX System under a ~~joint~~JRSA ~~revenue sharing arrangement~~ generally does not transfer to the customer. The Company’s ~~joint~~JRSAs ~~revenue sharing arrangements~~ do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.

The following lease payments are expected to be received by the Company for its sales-type leases and ~~joint~~JRSAs ~~revenue sharing arrangements~~ in each of the remainder of 2025, next four years and thereafter following the ~~June~~September 30, 2025 balance sheet date:

(In thousands of U.S. Dollars)	Sales-Type Leases
2025 (six months remaining)	$	1,619
2025 (three months remaining)	$	825
2026	3,~~258~~322
2027	3,~~163~~267
2028	3,~~017~~121
2029	3,~~017~~121
Thereafter	1617,~~129~~275
Total	$	30,~~203~~931

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5. Inventories

As of ~~June~~September 30, 2025 and December 31, 2024, Inventories consisted of the following:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Raw materials	$	3130,~~181~~482	$	29,162
Work-in-process	12,~~871~~324		1,611
Finished goods	38,~~647~~629		2,067
Total	$	3641,~~699~~435	$	32,840

As of ~~June~~September 30, 2025, Inventories included finished goods of $24.31 million (December 31, 2024 — $1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company recorded write-downs of less than $0.1 million and $0.2 million, respectively (2024 — write-downs of $0.21 million and $0.3 million during each such period) in Costs and Expenses Applicable to Revenues ― Technology Sales.

6. Borrowings

Revolving Credit Facility Borrowings, Net

As of ~~June~~September 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Wells Fargo Credit Facility borrowings	$	4829,000	$	37,000
Unamortized debt issuance costs	(~~453~~2,523)		(644)
Revolving Credit Facility Borrowings, net	$	4726,~~547~~477	$	36,356

Credit Agreement

The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”). ~~maturing~~On ~~March~~July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto. The facility under the New Credit Agreement (the “New Credit Facility”) matures on July 14, 2030; provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Credit Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $100.0 25million, ~~2027~~then the maturity date for the New Credit Facility shall automatically be modified to be the Springing Maturity Date. The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

The New Credit Agreement ~~provided~~provides for a revolving borrowing capacity of $~~300~~375.0 million, and ~~contained~~contains an uncommitted accordion feature that ~~allowed~~allows the Company to further increase its borrowing capacity by the greater of $140.0 million, ~~for a total of $440.0 million,~~ or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The New Credit Agreement ~~required~~requires that the Company ~~maintain~~does not exceed a maximum Senior Secured Net Leverage Ratio (as defined ~~in the Credit Agreement~~therein) of ~~no greater than~~ 3.25:1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter. In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets. The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. The Company was in compliance with this requirement as of ~~June~~September 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00:1.00.

As of June 30, 2025, borrowings under the Credit Facility were $48.0 million (December 31, 2024 — $37.0 million) and bore interest at Term SOFR, plus a margin of 1.75% per annum based on the Company’s total leverage ratio. The effective interest rate for the three and six months ended June 30, 2025 were 6.17%, respectively.

As of June 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility. As of June 30, 2025, the amount available for future borrowings under the Credit Facility was $252.0 million (December 31, 2024 — $263.0 million).

On July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto. The New Credit Agreement increases

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Loans under the ~~Company’s~~New ~~revolving~~Credit ~~borrowing~~Facility ~~capacity~~will tobear ~~$375.0 million~~interest, ~~and~~at ~~also contains an uncommitted accordion feature allowing~~ the Company’s tooption, ~~further~~at ~~expand~~(i) ~~its~~Term ~~borrowing capacity to $515.0 million or greater~~SOFR, inEurocurrency ~~the~~Rate ~~form of revolving loans and/~~or ~~term~~Term ~~loans~~CORRA ~~under~~plus ~~the~~a ~~incremental~~margin ~~facility~~ranging ~~and~~from ~~subject~~1.00% to ~~conditions set forth in the New Credit Agreement~~1.75% ~~The~~per ~~facility~~annum ~~under~~or ~~the New Credit Agreement~~ (~~the “New Facility”~~ii) ~~matures on July 14, 2030; provided that if certain convertible debt that is permitted to be incurred under~~ the ~~New~~U.S. ~~Credit~~base ~~Agreement,~~rate ~~and~~or ~~is so incurred after~~ the ~~date~~Canadian ofprime ~~the~~rate ~~New~~plus ~~Credit Agreement, has~~ a ~~maturity~~margin ~~date~~ranging ~~that~~from is0.25% ~~earlier~~to ~~than~~1.00% 91per ~~days~~annum, ~~after~~in ~~the~~each ~~maturity~~case ~~date~~depending ~~of the New Facility and the aggregate amount of any such convertible debt that remains outstanding~~ on the ~~date~~Company’s ~~that~~total isleverage 91ratio. ~~days~~In ~~prior~~no toevent ~~the~~will ~~earliest~~Term ~~maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $100.0 million~~SOFR, ~~then~~Eurocurrency ~~the~~Rate ~~maturity~~or ~~date~~Term ~~for~~CORRA ~~the New Facility shall automatically~~ be ~~modified~~less tothan be0.00% ~~the~~per ~~Springing Maturity Date~~annum.

~~Loans~~The ~~under the New Facility will bear interest, at the~~ Company’s ~~option,~~incurred atfees ~~(i)~~of ~~Term~~approximately ~~SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1~~$2.~~00%~~2 million toin ~~1.75%~~connection ~~per~~with ~~annum or (ii)~~ the ~~U.S.~~New ~~base~~Credit ~~rate~~Agreement, orwhich ~~the~~are ~~Canadian~~being ~~prime~~amortized ~~rate~~on ~~plus~~ a ~~margin~~straight-basis ~~ranging~~over ~~from~~the ~~0.25%~~term toof ~~1.00% per annum, in each case depending on~~ the ~~Company’s~~New ~~total~~Credit ~~leverage ratio~~Agreement. ~~In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.~~

~~The~~As ~~New~~of ~~Credit~~September ~~Agreement~~30, ~~requires that the Company does not exceed a maximum senior secured net leverage ratio of 3.25:1.00~~2025, ~~which~~borrowings ~~may be increased~~ under ~~certain circumstances and is tested on~~ the ~~last day of each fiscal quarter. In addition, the~~ New Credit ~~Agreement~~Facility ~~contains~~were ~~customary~~$29.0 ~~affirmative~~million ~~and~~(December ~~negative covenants for a transaction of this type~~31, ~~including~~2024 ~~covenants~~— ~~that~~$37.0 ~~limit~~million ~~indebtedness,~~under ~~liens,~~the ~~asset~~previous ~~sales,~~Credit ~~investments~~Facility) and ~~restricted~~bore ~~payments,~~interest inat ~~each~~Term ~~case~~SOFR, ~~subject~~plus toa ~~negotiated~~margin ~~exceptions~~of ~~and baskets~~1.75% ~~The~~per ~~New~~annum ~~Credit~~based ~~Agreement~~on ~~also~~the ~~contains representations, warranties and event of default provisions customary for a transaction of this type. The~~ Company’s ~~obligations~~total ~~under~~leverage ~~the~~ratio. ~~New~~The ~~Credit~~effective ~~Agreement~~interest ~~are~~rate ~~guaranteed~~for ~~by certain of~~ the ~~Guarantors,~~three and ~~are~~nine ~~secured~~months byended ~~first-priority~~September ~~security~~30, ~~interests~~2025 inwere ~~substantially~~6.09% ~~all of the assets of the Company~~ and ~~the Guarantors~~6.15%, respectively.

AtAs ~~closing~~of September 30, ~~the~~2025 ~~Company~~and ~~incurred~~December ~~$52.0 million~~31, ~~under~~2024, the ~~New~~Company ~~Credit~~had ~~Agreement~~no toletters ~~repay~~of ~~the~~credit ~~outstanding~~or ~~balance~~advance payment guarantees outstanding under the Credit Facility. ~~The~~As ~~Company~~of ~~estimates~~September 30, 2025, the ~~fees~~amount ~~incurred~~available infor ~~connection~~future ~~with~~borrowings under the New Credit ~~Agreement~~Facility towas ~~be approximately~~ $2346.2 0 million, ~~which~~(December ~~will~~31, be2024 ~~amortized~~— on$263.0 amillion ~~straight-line~~under ~~basis over~~ the ~~term~~previous ~~of the New~~ Credit ~~Agreement~~Facility).

Foreign Exchange Facility

Within the New Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. As of ~~June~~September 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $10.43 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $2.0 million). As of ~~June~~September 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $5148.37 million (December 31, 2024 — $48.4 million).

Bank of China Facility

As of ~~June~~September 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 01.20 million (less than $0.1 million).

As of ~~June~~September 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($26.57 million) and the amount available for letters of guarantee was RMB 9.80 million ($1.43 million). The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee. The effective interest rate for the three and ~~six~~nine months ended ~~June~~September 30, 2025 was 0% for each such period (2024 — 0% for each such period). There were no amounts drawn under the Bank of China Facility for the three and ~~six~~nine months ended ~~June~~September 30, 2025.

HSBC China Facility

In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”) entered into an unsecured revolving facility for up to RMB 200.0 million ($2728.91 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”). As of ~~June~~September 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility. As of ~~June~~September 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($2728.91 million). The effective interest rate for the three and ~~six~~nine months ended ~~June~~September 30, 2025 was 0% for each such period (2024 — 0%).

NBC Facility

The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to ~~September~~October 208, ~~2025~~2026. The Company did not have any letters of credit or advance payment guarantees outstanding as of ~~June~~September 30, 2025 and December 31, 2024 under the NBC Facility.

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Convertible Notes and Other Borrowings, Net

As of ~~June~~September 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Convertible Notes	$	230,000	$	230,000
Unamortized discounts and debt issuance costs	(~~1,112~~737)		(1,864)
Convertible Notes, net	~~228~~229,~~888~~263		228,136
Federal Economic Development Loan	1,~~761~~636		2,056
Unaccreted interest benefit	(~~175~~156)		(291)
Federal Economic Development Loan, net	1,~~586~~480		1,765
Convertible Notes and Other Borrowings, net	$	230,~~474~~743	$	229,901

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Convertible Notes

On March 19, 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (the “Convertible Notes”).

The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal of $230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year~~, beginning on October 1, 2021~~. The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.

The Company continues to record the Convertible Notes entirely as a liability on the Condensed Consolidated Balance Sheets, net of initial purchasers’ discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs.

Federal Economic Development Loan

As of ~~June~~September 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $1.65 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

7. Commitments, Contingencies and Guarantees

Commitments

In the ordinary course of its business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements can include terms binding the Company to minimum payments and/or penalties if it terminates the agreement for any reason other than an event of default as described by the agreement.

Contingencies and guarantees

The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company records a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management’s judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. The Company expenses legal costs relating to its lawsuits, claims, and proceedings as incurred.

In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company. In June 2004, the Company commenced a related arbitration before the ICC against EML’s affiliate, E-City Entertainment (I) PVT Limited (“E-City”). On March 27, 2008, the arbitration panel issued a final award in favor of the Company in the amount of $11.3 million, as well as an additional $2,512 each day in interest from October 1, 2007 until the date the award is paid. In July 2008, E-City commenced a proceeding in Mumbai, India seeking to prevent recognition of the ICC award in India. On March 10, 2017, the Supreme Court of India dismissed E-City’s petition. On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties. OnIn ~~October~~an 24order dated November 14, 2024, the Bombay High Court ~~announced~~dismissed the ~~dismissal of the~~ Company’s application~~, and the Court issued a written order of dismissal on November 14, 2024~~. On December 13, 2024, the Company filed an appeal of this order, ~~and~~on ~~the~~April ~~Company~~23, ~~fully~~2025, ~~intends~~the toBombay ~~continue~~High ~~pursuing~~Court ~~its~~ruled ~~rights~~that ~~and seeking to enforce~~ the ~~arbitration award. The~~ Company’s ~~has~~appeal ~~also~~was ~~taken~~maintainable, ~~steps~~and toon ~~enforce~~September ~~the~~16, ~~ICC final award outside of India. In December 2011~~2025, the ~~Ontario~~Supreme ~~Superior~~ Court of ~~Justice~~India ~~issued~~dismissed ~~an order recognizing the final award and requiring~~ E-City’s topetition ~~pay~~challenging ~~the~~that ~~Company~~ruling. ~~$30,000~~The toCompany ~~cover~~fully ~~the~~intends ~~costs~~to ofcontinue ~~the~~pursuing ~~application,~~its rights and inseeking ~~May~~to ~~2012,~~enforce the ~~New~~arbitration ~~York Supreme Court recognized the Canadian judgment and entered it as a New York judgment~~award. No amounts have been recognized in connection with this matter.

Financial Guarantees

Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement.

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Product Warranties

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $nil as of ~~June~~September 30, 2025 and $0.1 million as of December 31, 2024.

Director and Officer Indemnifications

The Company’s by-laws contain an indemnification of its directors/officers, former directors/officers, and persons who have acted at its request to be a director/officer of an entity in which the Company is a shareholder or creditor, to indemnify them, to the extent permitted by the Canada Business Corporations Act, against expenses (including legal fees), judgments, fines and any amounts actually and reasonably incurred by them in connection with any action, suit or proceeding in which the directors and/or officers are sued as a result of their service, if they acted honestly and in good faith with a view to the best interests of the Company. In addition, the Company has entered into indemnification agreements with each of its directors in order to effectuate the foregoing. The nature of the indemnification prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of ~~June~~September 30, 2025 and December 31, 2024, with respect to this indemnity.

Other Indemnification Agreements

In the normal course of its operations, the Company provides indemnifications to counterparties in transactions such as: IMAX System lease and sale agreements and the supervision of installation or servicing of IMAX Systems; film production, exhibition and distribution agreements; real property lease agreements; and employment agreements. These indemnification agreements require the Company to compensate the counterparties for costs incurred as a result of litigation claims that may be suffered by the counterparty as a consequence of the transaction or the Company’s breach or non-performance under these agreements. While the terms of these indemnification agreements vary based upon the contract, they normally extend for the life of the agreements. A small number of agreements do not provide for any limit on the maximum potential amount of indemnification; however, virtually all of the IMAX System lease and sale agreements limit such maximum potential liability to the purchase price of the system. The fact that the maximum potential amount of indemnification required by the Company is not specified in some cases prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. Historically, the Company has not made any significant payments under such indemnifications and no amounts have been accrued in the Condensed Consolidated Financial Statements with respect to the contingent aspect of these indemnities.

8. Condensed Consolidated Statements of Operations – Supplemental Information

Selling Expenses

The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

Three Months Ended June 30,

Three Months Ended September 30,

2025

2024

(In thousands of U.S. Dollars)

Sales Commissions

Marketing and Other

Sales Commissions

Marketing and Other

Technology sales(1)

~~218~~364

72234

~~348~~258

~~180~~139

Image enhancement and maintenance services(2)

—

34,~~415~~218

—

45,~~101~~172

Technology rentals(3)

~~191~~233

~~669~~276

~~141~~128

~~560~~811

Total

~~409~~597

4,~~156~~728

~~489~~386

46,~~841~~122

(1)Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System. Direct advertising and marketing costs for each IMAX System are expensed as incurred.(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.

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Six Months Ended June 30,

Nine Months Ended September 30,

2025

2024

(In thousands of U.S. Dollars)

Sales Commissions

Marketing and Other

Sales Commissions

Marketing and Other

Technology sales(1)

~~398~~762

~~127~~361

~~426~~684

~~346~~485

Image enhancement and maintenance services(2)

—

510,~~850~~068

—

611,~~676~~848

Technology rentals(3)

~~257~~490

1,~~000~~276

~~250~~378

1,~~000~~811

Total

~~655~~1,252

611,~~977~~705

~~676~~1,062

814,~~022~~144

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Foreign Exchange

Included in Selling, General and Administrative Expenses for the three and ~~six~~nine months ended ~~June~~September 30, 2025 is a foreign currency net ~~gain~~loss of $0.2 million and loss of $0.24 million, respectively (2024 — net losses of $0.23 million and $0.58 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities. See Note 15 for additional information.

Government Assistance

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company recognized $30.8 1 million and $4.0 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic. ~~The~~During ~~ERC~~the ~~has~~nine ~~been~~months ended September 30, 2025, the ERC was recognized as a reduction to Selling, General and Administrative Expenses ($2.5 7 million) and Costs and Expenses Applicable to Revenues ($1.3 million).

Collaborative Arrangements

Joint Revenue Sharing Arrangements

The accounting policy for the Company’s JRSAs is disclosed in Note 2 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under JRSAs ~~are~~is recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs). For the three and ~~six~~nine months ended ~~June~~September 30, 2025, such revenues totaled $1823.70 million and $3760.9 million, respectively (2024 — $1315.39 million and $3248.54 million, respectively).

IMAX Film Remastering and Distribution

The Company earns revenue through the digital remastering of films and other content into IMAX formats for distribution to the IMAX network (“IMAX Film Remastering”). The accounting policy for IMAX Film Remastering and distribution arrangements is disclosed in Note 2 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements ~~are~~is included in Revenues – Image Enhancement and Maintenance Services. For the three and ~~six~~nine months ended ~~June~~September 30, 2025, such revenues totaled $2841.79 million and $60105.47 million, respectively (2024 — $2126.37 million and $5177.07 million, respectively). See Note 12 for a disaggregated presentation of the Company’s revenues.

Co-Produced Film Arrangements

The accounting policies relating to co-produced film arrangements are disclosed in Notes 2 and 3 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.

As of June 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $1.8 million and liabilities balance of $0.4 million, and four other co-produced film arrangements, the terms of which are similar.22

~~For~~Table ~~the three and six months ended June 30, 2025, an expense~~ of $0.1 million and $0.2 million, respectively (2024 — $2.9 million and $3.0 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.Contents

As of September 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $1.8 million and liabilities balance of $0.4 million, and four other co-produced film arrangements, the terms of which are similar.

For the three and nine months ended September 30, 2025, expenses of $0.2 million and $0.3 million, respectively (2024 — $0.2 million and $3.2 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

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9. Condensed Consolidated Statements of Cash Flows – Supplemental Information

Changes in other operating assets and liabilities

	Six Months Ended
	Nine Months Ended
	June 30,
	September 30,
(In thousands of U.S. Dollars)	2025		2024
(Increase) decrease in:
Decrease (increase) in:
Financing receivables	$	~~(911)~~1,441	$	34,~~554~~197
Prepaid expenses	(491,932)		(~~663~~2,185)
Variable consideration receivables	(~~683~~1,233)		(510,~~633~~308)
Other assets	1(2,~~155~~843)		1(2,~~412~~026)
Increase (decrease) in:
Accounts payable	112,~~694~~585		(~~6,233~~318)
Accrued and other liabilities	~~(15~~2,~~506)~~092		(113,~~523~~131)
Total	$	~~(4,300)~~110	$	(1913,~~086~~771)

Depreciation and amortization

	Six Months Ended
	Nine Months Ended
	June 30,
	September 30,
(In thousands of U.S. Dollars)	2025		2024
Film assets	$	914,~~529~~100	$	1318,~~867~~659
Property, plant and equipment:
Equipment supporting JRSAs	1117,~~378~~219		1117,~~495~~011
Other property, plant and equipment	46,~~426~~768		46,~~296~~440
Other intangible assets	46,~~205~~394		35,~~289~~164
Other assets	1,~~271~~934		1,~~055~~628
Total	$	3046,~~809~~415	$	3448,~~002~~902

Write-downs

	Six Months Ended
	Nine Months Ended
	June 30,
	September 30,
(In thousands of U.S. Dollars)	2025		2024
Other assets	$	381	$	—
Inventories	~~194~~201		~~166~~266
Property, plant and equipment:
Equipment supporting JRSAs	~~399~~566		2,~~137~~660
Other property, plant and equipment	35		5255
Other intangible assets	—47		3544
Film assets	70103		9
Total	$	1,~~047~~303	$	23,~~399~~034

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Significant non-cash investing activities

	Six Months Ended
	Nine Months Ended
	June 30,
	September 30,
(In thousands of U.S. Dollars)	2025		2024
Net decrease in accruals related to:
Net (decrease) increase in accruals related to:
Investment in equipment supporting JRSAs	$	(121)	$	~~(209)~~560
Acquisition of other intangible assets	(4120)		25
Purchases of property, plant and equipment	—67		(1528)
Net amount	$	(~~125~~174)	$	~~(222)~~537

10. Income Taxes

Income Tax (Expense~~) Benefit~~

For the three months ended ~~June~~September 30, 2025, the Company recorded an income tax expense of $15.2 million (2024 — ~~tax benefit of~~ $42.04 million). The Company’s effective tax rate of 818.97% for the three months ended ~~June~~September 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

For the ~~six~~nine months ended ~~June~~September 30, 2025, the Company recorded an income tax expense of $813.57 million (2024 — tax expense of $13.25 million). The Company’s effective tax rate of 2924.41% for the ~~six~~nine months ended ~~June~~September 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects ana ~~increase~~decrease in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was ~~signed into law~~enacted, introducing ~~significant~~substantial changes to U.S. tax ~~changes~~law that will take effect for the Company beginning in fiscal year 2026. Key provisions ~~that~~of ~~may~~the ~~impact~~Act ~~IMAX~~include ~~are~~revisions to Interest Deductibility (IRC §163(j)), Bonus Depreciation, and Section §179. The Company is currently evaluating the Act’s potential impact on its Consolidated Financial Statements and will update its assessment as further guidance becomes available.

As of ~~June~~September 30, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $1312.67 million (December 31, 2024 — $14.5 million). Realization of net deferred tax assets is dependent upon generation of sufficient taxable income in future years to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.

As of ~~June~~September 30, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $12.5 million (December 31, 2024 — $12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

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11. Capital Stock and Reserves

Share-Based Compensation

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, share-based compensation expense totaled $76.43 million and $1218.69 million, respectively (2024 — $65.94 million and $1116.59 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Costs and expenses applicable to revenues

~~305~~348

~~247~~251

~~596~~944

~~475~~726

Selling, general and administrative expenses

65,~~862~~763

65,~~506~~036

1117,~~582~~345

1015,~~843~~879

Research and development

190

~~110~~112

~~384~~574

~~221~~333

Total

76,~~357~~301

65,~~863~~399

1218,~~562~~863

1116,~~539~~938

The following table summarizes the Company’s share-based compensation expense by each award type:

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Restricted Share Units

43,~~519~~812

43,~~133~~111

711,~~386~~198

69,~~875~~986

Performance Stock Units

12,~~969~~057

12,~~966~~048

35,~~901~~958

35,~~818~~866

IMAX China Long Term Incentive Plan Restricted Share Units

~~734~~299

~~695~~297

1,~~047~~346

~~722~~1,019

IMAX China Long Term Incentive Plan Performance Stock Units

~~135~~133

69(57)

~~228~~361

~~124~~67

76,~~357~~301

65,~~863~~399

1218,~~562~~863

1116,~~539~~938

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of less than $10.71 million ~~for~~and ~~each~~$1.7 ~~such~~million ~~period~~respectively, of which $1.7 million granted during the ~~six~~nine month period vested immediately (2024 — $10.71 million ~~for~~and ~~each~~$1.8 ~~such~~million ~~period~~respectively).

Stock Option Summary

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Number of Shares		Weighted Average Exercise Price Per Share
	2025	2024	2025		2024
Stock options outstanding, beginning of period	2,469,238	3,329,422	$	26.27	$	26.23
Exercised	(4863,~~487~~863)	—(4,687)	21.6283		—20.85
Expired	(470,582)	(607,114)	29.53		28.15
Cancelled	—	(1,768)	—		24.38
Stock options outstanding, end of period	1,~~950~~934,~~169~~793	2,~~720~~715,~~540~~853	25.6062		25.8081
Stock options exercisable, end of period	1,~~950~~934,~~169~~793	2,~~720~~715,~~540~~853	25.6062		25.8081

Stock options are no longer granted under the ~~Company’s previously approved~~ SOP.

IMAX LTIP Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

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	Number of Shares		Weighted Average Grant Date Fair Value Per Share
	2025	2024	2025		2024
RSUs outstanding, beginning of period	1,465,977	1,286,830	$	17.16	$	18.53
Granted	~~542,~~555,819	~~946~~948,~~507~~261	25.2122		16.4344
Vested and settled	(~~712~~713,~~092~~130)	(~~682~~698,~~549~~187)	18.18		18.7067
Forfeited	(2540,~~593~~513)	(3747,~~844~~474)	1920.8327		18.3408
RSUs outstanding, end of period	1,~~270~~268,~~847~~153	1,~~512~~489,~~944~~430	1920.9802		17.1415

IMAX LTIP Performance Stock Units (“PSU”) Summary

The Company grants two types of PSU ~~awards~~award, one which vests based on a combination of employee service and the achievement of certain Adjusted 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 these targets ~~are~~is assessed over a three-year performance period, with vesting ranging from 0% to 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance.

The grant date fair value for Adjusted EBITDA PSUs 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 for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as, market conditions and expected share price volatility over the term of the awards.

The compensation expense attributable for each type of ~~PSUs~~PSU is recognized on a straight-line basis over the requisite service period. If, as a result of management’s assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made~~, respectively~~. The expense recognized in the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Number of Awards		Weighted Average Grant Date Fair Value Per Share
	2025	2024	2025		2024
PSUs outstanding, beginning of period	1,097,634	922,621	$	17.99	$	19.16
Granted(1)	~~551~~555,~~084~~247	580,336	24.1719		17.97
Vested and settled(1)	(463,212)	(316,226)	19.88		19.71
Forfeited	(2434,~~456~~301)	(85,764)	20.4477		21.00
PSUs outstanding, end of period	1,~~161~~155,~~050~~368	1,100,967	20.1213		18.32
(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.
(1) For the nine months ended September 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.

As of ~~June~~September 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,~~950~~940,~~452~~472, assuming full achievement of the Adjusted EBITDA and TSR targets.

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Issuer Purchases of Equity Securities

On June 12, 2017, the Company announced that its Board of Directors approved a $200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $400.0 million. In June 2025, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2027 and an increase of $100.0 million in the Company’s share repurchase program authorization. With the increase of $100 million, the Company’s total share repurchase authority is $500.0 million under the current share repurchase program. As of ~~June~~September 30, 2025, the Company had $250.7 million available under the program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.

During the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company did not have any repurchases of common shares. During the three ~~and six~~ months ended ~~June~~September 30, 2024, the Company ~~repurchased~~did 7not have any repurchases of common shares. During the nine months ended September 30,~~646~~ ~~and~~2024, the Company repurchased 1,166,370 common shares, ~~respectively,~~ at an average price of $~~14.98 and $~~13.99 per share, ~~respectively,~~ for a total of $~~0.1 million and $~~16.3 million, ~~respectively,~~ excluding commissions. During the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, there were no shares ~~purchases~~purchased in the administration of employee share-based plans.

As of ~~June~~September 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares. Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Condensed Consolidated Balance Sheets.

In 2024, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing IMAX China’s Board of Directors, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of issued shares as of June 7, 2024 (34,000,845 shares). This program expired on the date of the 2025 Annual General Meeting of IMAX China on June 12, 2025. During the 2025 Annual General Meeting, shareholders granted its Board of Directors a general mandate authorizing the Board of Directors of IMAX China, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of shares as of June 12, 2025 (33,919,122 shares). This program will be valid until the 2026 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time.

During the three ~~and~~months ~~six~~ended September 30, 2025, IMAX China did not repurchase any common shares. During the nine months ended ~~June~~September 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($0.96 per share) for a total of HKD $11.3 million ($1.4 million), excluding commissions. During the three ~~and~~months ~~six~~ended September 30, 2024, IMAX China did not have any repurchases of common shares. During the nine months ended ~~June~~September 30, 2024, IMAX China repurchased 119,~~000~~900 common shares, at an average price of HKD 7.43 per share ($0.95 per share) for a total of HKD 0.9 million ($0.1 million). The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity. The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.

Basic and Diluted Weighted Average Shares Outstanding

The following table reconciles the denominator of the basic and diluted weighted average share computations:

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

(In thousands)

2025

2024

2025

2024

Issued and outstanding, beginning of period

53,~~742~~783

52,~~625~~677

52,946

53,260

Weighted average number of shares issued (repurchased), net

~~502~~615

(~~692~~655)

Weighted average number of shares outstanding - basic

53,~~751~~788

52,~~633~~682

53,~~448~~561

52,~~568~~605

Weighted average effect of potential common shares, if dilutive

1,~~410~~777

~~795~~1,407

1,~~616~~681

~~818~~1,023

Weighted average number of shares outstanding - diluted

55,~~161~~565

5354,~~428~~089

55,~~064~~242

53,~~386~~628

For the three and six months ended June 30, 2025, the calculation of diluted weighted average shares outstanding excludes 929,825 and 968,984 shares, respectively (2024 — 3,118,725 and 3,716,606 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including: (i) $nil RSUs (2024 — 355,337 and 664,720 RSUs, respectively), (ii) 86,784 and 125,943

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~~PSUs~~For the three and nine months ended September 30, 2025, the calculation of diluted weighted average shares outstanding excludes 844,551 and 928,945 shares, respectively (2024 — 422,~~848~~192,874 and ~~331~~2,~~346~~769,499 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including: (i) nil RSUs, respectively, (2024 — nil and 10,798 RSUs, respectively), (ii) 1,510 and 85,904 PSUs, respectively (2024 — nil and 42,848 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,~~720~~192,~~540~~874 and 2,715,853 stock options, respectively), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

Statutory Surplus Reserve

Pursuant to the corporate law of the People’s Republic of China (“PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders. All statutory reserves are created for specific purposes.

The statutory surplus reserve of RMB 37.7 million ($54.82 million) has reached 50% of the Company’s PRC subsidiaries’ registered capital, and as such, no further contributions to the reserve are required.

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12. Revenue from Contracts with Customers

Disaggregated Information About Revenue

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Three Months Ended June 30, 2025
	Three Months Ended September 30, 2025
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment:
Film Remastering and Distribution	$	—	$	3141,~~650~~913	$	—	$	—	$	3141,~~650~~913
Other Content Solutions	—		12,~~907~~630		~~408~~289		—		2,~~315~~919
	—		3344,~~557~~543		~~408~~289		—		3344,~~965~~832
Technology Products and Services Segment:
System Sales	18,~~000~~660		—		—		—		18,~~000~~660
System Rentals	—		—		1823,~~708~~047		—		1823,~~708~~047
Maintenance	—		1615,~~059~~784		—		—		1615,~~059~~784
Finance Income	—		—		—		2,~~872~~929		2,~~872~~929
	18,000		16,059		18,708		2,872		55,639
	18,660		15,784		23,047		2,929		60,420
Sub-total for reportable segments	18,~~000~~660		4960,~~616~~327		1923,~~116~~336		2,~~872~~929		89105,~~604~~252
All Other	~~842~~700		~~1,238~~702		—		—		21,~~080~~402
Total	$	1819,~~842~~360	$	5061,~~854~~029	$	1923,~~116~~336	$	2,~~872~~929	$	91106,~~684~~654
	Six Months Ended June 30, 2025
	Nine Months Ended September 30, 2025
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	63105,~~807~~720	$	—	$	—	$	63105,~~807~~720
Other Content Solutions	—		36,~~824~~454		~~583~~872		—		47,~~407~~326
	—		67112,~~631~~174		~~583~~872		—		68113,~~214~~046
Technology Products and Services Segment
System Sales	3049,~~720~~380		—		—		—		3049,~~720~~380
System Rentals	—		—		3760,~~844~~891		—		3760,~~844~~891
Maintenance	—		3147,~~717~~501		—		—		3147,~~717~~501
Finance Income	—		—		—		58,~~951~~880		58,~~951~~880
	30,720		31,717		37,844		5,951		106,232
	49,380		47,501		60,891		8,880		166,652
Sub-total for reportable segments	3049,~~720~~380		99159,~~348~~675		3861,~~427~~763		58,~~951~~880		~~174~~279,~~446~~698
All Other	12,~~646~~346		2,~~259~~961		—		—		35,~~905~~307
Total	$	3251,~~366~~726	$	~~101~~162,~~607~~636	$	3861,~~427~~763	$	58,~~951~~880	$	~~178~~285,~~351~~005

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	Three Months Ended June 30, 2024
	Three Months Ended September 30, 2024
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	2126,~~304~~687	$	—	$	—	$	2126,~~304~~687
Other Content Solutions	—		133,~~644~~356		~~128~~86		—		133,~~772~~442
	—		3430,~~948~~043		~~128~~86		—		3530,~~076~~129
Technology Products and Services Segment
System Sales	1924,~~443~~365		—		—		—		1924,~~443~~365
System Rentals	—		—		1316,~~915~~029		—		1316,~~915~~029
Maintenance	—		15,~~231~~443		—		—		15,~~231~~443
Finance Income	—		—		—		2,~~309~~134		2,~~309~~134
	19,443		15,231		13,915		2,309		50,898
	24,365		15,443		16,029		2,134		57,971
Sub-total for reportable segments	1924,~~443~~365		5045,~~179~~486		1416,~~043~~115		2,~~309~~134		8588,~~974~~100
All Other	~~977~~1,940		21,~~010~~405		—7		—		23,~~987~~352
Total	$	2026,~~420~~305	$	5246,~~189~~891	$	1416,~~043~~122	$	2,~~309~~134	$	8891,~~961~~452
	Six Months Ended June 30, 2024
	Nine Months Ended September 30, 2024
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	5177,~~025~~712	$	—	$	—	$	5177,~~025~~712
Other Content Solutions	—		1721,~~936~~292		~~128~~214		—		1821,~~064~~506
	—		6899,~~961~~004		~~128~~214		—		6999,~~089~~218
Technology Products and Services Segment
System Sales	2650,~~561~~926		—		—		—		2650,~~561~~926
System Rentals	—		—		3248,~~516~~545		—		3248,~~516~~545
Maintenance	—		3045,~~392~~835		—		—		3045,~~392~~835
Finance Income	—		—		—		46,~~579~~713		46,~~579~~713
	26,561		30,392		32,516		4,579		94,048
	50,926		45,835		48,545		6,713		152,019
Sub-total for reportable segments	2650,~~561~~926		99144,~~353~~839		3248,~~644~~759		46,~~579~~713		~~163~~251,~~137~~237
All Other	13,~~763~~703		34,~~184~~589		—7		—		48,~~947~~299
Total	$	2854,~~324~~629	$	~~102~~149,~~537~~428	$	3248,~~644~~766	$	46,~~579~~713	$	~~168~~259,~~084~~536

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, revenues earned from Technology Sales include variable consideration of $35.1 million and $611.4 million, respectively (2024 — $78.72 million and $917.46 million, respectively).

For the three and ~~six~~nine months ended ~~June~~September 30, 2025, revenues earned from leasing arrangements total $1923.13 million and $3861.58 million, respectively (2024 — $1315.39 million and $3248.54 million, respectively), including $1923.13 million and $3861.48 million, respectively, in Revenues ― Technology Rentals (2024 — $1316.90 million and $3248.5 million, respectively), and $nil and $0.1 million in the three and ~~six~~nine months ended ~~June~~September 30, 2025, respectively, in Revenues ― Technology Sales (2024 — a reversal of $0.71 million ~~and $nil, respectively~~).

Deferred Revenue

IMAX System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, some of which maintenance services are subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee based on the original arrangement, additional payments are due to the Company for the years after its extended warranty and maintenance obligations expire. Payments, upon renewal each year, are either prepaid or made in arrears and can vary in frequency from monthly to annually. As of June 30, 2025, $21.6 million of consideration

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~~has~~Deferred ~~been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $26.5 million).~~ Revenue

~~During~~IMAX ~~the~~System ~~three~~sale and ~~six~~lease ~~months~~arrangements ~~ended~~include ~~June~~a ~~30,~~requirement ~~2025,~~for ~~$10.8~~the ~~million~~Company ~~and~~to ~~$19.8~~provide ~~million~~maintenance services over the life of ~~revenue,~~the ~~respectively~~arrangement, ~~was~~some ~~recognized~~of ~~from~~which ~~the~~maintenance ~~$52.7~~services ~~million~~are ~~balance~~subject ofto ~~deferred~~a ~~revenue~~consumer asprice ofindex ~~December~~adjustment ~~31,~~each ~~2024~~year. ~~During~~In circumstances where customers prepay the ~~three~~entire ~~and~~term’s ~~six~~maintenance ~~months~~fee ~~ended~~based ~~June~~on ~~30,~~the ~~2024~~original arrangement, ~~$12.1~~additional ~~million~~payments are due to the Company for the years after its extended warranty and ~~$24.2~~maintenance ~~million~~obligations ofexpire. ~~revenue~~Payments, ~~respectively~~upon renewal each year, ~~was~~are ~~recognized~~either prepaid or made in arrears and can vary in frequency from ~~the~~monthly to annually. As of September 30, 2025, $6721.13 million ~~balance~~ of consideration has been deferred ~~revenue~~in asrelation ofto outstanding maintenance services to be provided on existing maintenance contracts (December 31, ~~2023~~2024 — $26.5 million).

During the three and nine months ended September 30, 2025, $9.6 million and $29.4 million of revenue, respectively, was recognized from the $52.7 million balance of deferred revenue as of December 31, 2024. During the three and nine months ended September 30, 2024, $11.5 million and $35.7 million of revenue, respectively, was recognized from the $67.1 million balance of deferred revenue as of December 31, 2023.

13. Segment Reporting

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

The accounting policies of the reportable segments are the same as those described in Note 2 - Summary of Significant Accounting Policies of the 2024 Form 10-K. Intercompany profit or loss is not included in the evaluation of performance and allocation of resources.

Segment Financial Information

The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended ~~June~~September 30, 2025 and 2024:

Revenue(1)

Gross Margin

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Content Solutions

3344,~~965~~832

3530,~~076~~129

2231,~~431~~923

16,~~138~~449

Technology Products and Services

5560,~~639~~420

5057,~~898~~971

3034,~~178~~820

2531,~~783~~964

Sub-total for reportable segments

89105,~~604~~252

8588,~~974~~100

5266,~~609~~743

4148,~~921~~413

All Other

21,~~080~~402

23,~~987~~352

~~993~~528

2,~~006~~606

Total

91106,~~684~~654

8891,~~961~~452

5367,~~602~~271

4351,~~927~~019

(1)The Company’s largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2024.

(1)The Company’s largest customer represents 10% of total Revenues for the three months ended September 30, 2025 (2024 — 13%). No single customer comprised more than 10% of the Company’s total Accounts Receivable balance as of September 30, 2025. No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2024.

The following table presents the Company’s revenue and gross margin by reportable segment for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

Revenue(1)

Gross Margin

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Content Solutions

68113,~~214~~046

6999,~~089~~218

4577,~~985~~908

3854,~~237~~686

Technology Products and Services

~~106~~166,~~232~~652

94152,~~048~~019

5994,~~264~~084

4981,~~367~~331

Sub-total for reportable segments

~~174~~279,~~446~~698

~~163~~251,~~137~~237

~~105~~171,~~249~~992

87136,~~604~~017

All Other

35,~~905~~307

48,~~947~~299

12,~~529~~057

35,~~212~~818

Total

~~178~~285,~~351~~005

~~168~~259,~~084~~536

~~106~~174,~~778~~049

90141,~~816~~835

(1)The Company’s largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company’s total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.

(1)The Company’s largest customer represented 9% of total Revenues for the nine months ended September 30, 2025 (2024 — 11%). No single customer comprised more than 10% of the Company’s total Accounts Receivable as of September 30, 2025. No single customer comprised more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.

The following table presents the Costs and Expenses Applicable to Revenues for the Content Solutions segment that is made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S. GAAP:

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Content Solutions Segment:	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands of U.S. Dollars)	2025		2024		2025		2024
Revenue	$	33,965	$	35,076	$	68,214	$	69,089
Film asset amortization	5,190		8,797		9,529		13,867
Marketing and other selling expenses	3,415		4,101		5,850		6,676
Co-produced film participation expenses	82		2,873		179		2,985
Other segment expenses(1)	2,847		3,167		6,671		7,324
Total Costs and Expenses Applicable to Revenues	11,534		18,938		22,229		30,852
Gross Margin	$	22,431	$	16,138	$	45,985	$	38,237
(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.


Content Solutions Segment:	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands of U.S. Dollars)	2025		2024		2025		2024
Revenue	$	44,832	$	30,129	$	113,046	$	99,218
Film asset amortization	4,571		4,792		14,100		18,659
Marketing and other selling expenses	4,218		5,172		10,068		11,848
Co-produced film participation expenses	164		166		343		3,151
Other segment expenses(1)	3,956		3,550		10,627		10,874
Total Costs and Expenses Applicable to Revenues	12,909		13,680		35,138		44,532
Gross Margin	$	31,923	$	16,449	$	77,908	$	54,686
(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.

The following table presents the Costs and Expenses Applicable to Revenues for the Technology Products and Services reportable segment that is made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S. GAAP:

Technology Products and Services Segment:

Three Months Ended ~~June~~September 30,

~~Six~~Nine Months Ended ~~June~~September 30,

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Revenue

5560,~~639~~420

5057,~~898~~971

~~106~~166,~~232~~652

94152,~~048~~019

Depreciation of equipment supporting JRSAs

5,~~716~~841

5,~~800~~516

1117,~~378~~219

1117,~~495~~011

Marketing and other selling expenses

~~409~~597

~~489~~386

~~655~~1,252

~~676~~1,062

Write-down of equipment supporting JRSAs

~~311~~478

~~2,080~~523

~~399~~566

2,~~137~~660

Write-down of inventory

9198

~~151~~150

~~194~~201

~~166~~266

Other segment expenses(1)

18,~~934~~586

1619,~~595~~432

3453,~~342~~330

3049,~~207~~689

Total Costs and Expenses Applicable to Revenues

25,~~461~~600

2526,~~115~~007

4672,~~968~~568

4470,~~681~~688

Gross Margin

3034,~~178~~820

2531,~~783~~964

5994,~~264~~084

4981,~~367~~331

(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.

(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the nine months ended September 30, 2025, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.

Geographic Information

Revenue by geographic area is based on the location of the customer. Revenue related to IMAX Film Remastering process is presented based upon the geographic location of the IMAX System that exhibits the remastered films. IMAX Film Remastering and distribution revenue is generated through contractual relationships with studios and other third parties that may not be in the same geographical location as the IMAX Systems that exhibit the remastered films.

The following table summarizes the Company’s revenues by geographic area for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands of U.S. Dollars)	2025		2024		2025		2024
United States	$	42,391	$	38,296	$	64,962	$	64,900
Greater China	17,677		22,750		57,802		44,203
Western Europe	14,112		10,508		21,665		24,699
Asia (excluding Greater China)	9,312		9,587		18,603		18,713
Latin America	2,150		2,258		4,107		3,718
Canada	2,494		3,159		3,896		5,567
Rest of the World	3,548		2,403		7,316		6,284
Total	$	91,684	$	88,961	$	178,351	$	168,084

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The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Western Europe, and Asia (excluding Greater China) each comprise greater than 10% of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands of U.S. Dollars)	2025		2024		2025		2024
United States	$	39,507	$	38,363	$	104,469	$	103,263
Greater China	20,270		21,324		78,072		65,527
Asia (excluding Greater China)	23,235		16,930		41,838		35,643
Western Europe	14,050		3,741		35,715		28,440

Latin America	3,034		2,954		7,141		6,672
Canada	3,041		1,687		6,937		7,254
Rest of the World	3,517		6,453		10,833		12,737
Total	$	106,654	$	91,452	$	285,005	$	259,536

14. Employee’s Pension and Postretirement Benefits

Defined Benefit Plan

The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”), covering its CEO, Richard L. Gelfond. Under the terms of his employment agreement, as amended, the total benefit payable to Mr. Gelfond under the SERP is fixed at $20.3 million.

As of ~~June~~September 30, 2025, the Company’s projected benefit obligation under the SERP was $1917.4 million (December 31, 2024 — $19.0 million). For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company recorded interest costs of $0.21 million and $0.45 million, respectively, (2024 — $0.2 million and $0.46 million, respectively) related to the SERP. Pursuant to an amendment to his employment agreement dated July 17, 2025, the term of Mr. Gelfond’s employment was extended through December 31, 2028. As a result, during the three months ended September 30, 2025, the Company recorded an actuarial gain of $2.3 million as a component of Other Comprehensive (Loss) Income. The Company expects to recognize additional interest costs of $0.42 million related to the SERP during the remainder of 2025. No contributions are expected to be made to the SERP in 2025.

Postretirement Benefits – Executives

The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”).

As of ~~June~~September 30, 2025, the Company’s postretirement benefits obligation under this plan was $0.5 million (December 31, 2024 — $0.5 million). For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company has recorded an expense of less than $0.1 million, respectively (2024 — less than $0.1 million, respectively) related to this plan.

Postretirement Benefits – Canadian Employees

The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of ~~June~~September 30, 2025, the Company’s postretirement benefits obligation under this plan was $0.8 million (December 31, 2024 — $0.8 million). For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the Company has recorded expense of less than $0.1 million, respectively, (2024 — less than $0.1 million, respectively) related to this plan.

Deferred Compensation Benefit Plan

The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein).

As of ~~June~~September 30, 2025, the benefit obligation related to the Retirement Plan was $4.34 million (December 31, 2024 — $4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future ~~with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.~~

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses. As of June 30, 2025, fair value of the COLI asset was $3.7 million (December 31, 2024 — $3.6 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.

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with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses. As of September 30, 2025, fair value of the COLI asset was $3.7 million (December 31, 2024 — $3.6 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.

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15. Financial Instruments

Financial Instruments

The Company’s cash is invested with various major financial institutions. The Company’s $~~109~~143.31 million balance of cash and cash equivalents as of ~~June~~September 30, 2025 (December 31, 2024 — $100.6 million) included $~~100~~129.98 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $6185.58 million was held in the ~~People’s Republic of China (“~~PRC”) (December 31, 2024 — $47.5 million).

Fair Value Measurements

The carrying values of the Company’s Cash and Cash Equivalents, Accounts Receivable, Variable Consideration, Accounts Payable and Accrued Liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consisted of the following:

As of June 30, 2025

As of December 31, 2024

As of September 30, 2025

As of December 31, 2024

(In thousands of U.S. Dollars)

Carrying Amount

Estimated Fair Value

Carrying Amount

Estimated Fair Value

Level 2

Net financed sales receivables(1)

9289,~~481~~526

8385,~~990~~181

90,546

81,876

Net investment in sales-type leases(1)

2829,~~641~~418

26,~~816~~201

29,339

25,322

Convertible Notes(2)

(230,000)

(~~264~~267,~~778~~920)

(230,000)

(234,009)

(1)Fair value is determined using quoted prices in active markets.(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

Foreign Exchange Risk Management

The Company is exposed to market risk from changes in foreign currency rates.

A majority of the Company’s revenues isare denominated in U.S. Dollars while a significant portion of its costs and expenses isare denominated in Canadian Dollars. A portion of the Company’s net U.S. Dollar cash is converted to Canadian Dollars to fund Canadian Dollar expenses through the spot market. In China and Japan, the Company has ongoing operating expenses related to its operations in RMB, HKD and Japanese Yen, respectively. Net cash flows are converted to and from U.S. Dollars through the spot market. The Company also has cash receipts under leases denominated in RMB, Japanese Yen, Canadian Dollars and Euros which are converted to U.S. Dollars through the spot market. In addition, because IMAX films generate box office receipts in 89 different countries, unfavorable exchange rates between applicable local currencies and the U.S. Dollar could have an impact on box-office receipts and the Company’s revenues and results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes.

The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies. Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of ~~June~~September 30, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026. Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Condensed 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 in Accumulated Other Comprehensive Loss (“AOCI”) and reclassified to the Condensed Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Condensed Consolidated Statements of Operations.

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The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements:

Notional value of derivatives in foreign exchange contracts:

	June 30,		December 31,
	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	$	5148,~~324~~713	$	48,376

Fair value of derivatives in foreign exchange contracts:

		June 30,		December 31,
		September 30,		December 31,
(In thousands of U.S. Dollars)	Balance Sheet Location	2025		2024
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets	$	~~1,430~~563	$	—
	Accrued and other liabilities	(27263)		(2,029)
		$	~~1,403~~300	$	(2,029)

Derivatives in foreign currency hedging relationships are as follows:

Three Months Ended

~~Six~~Nine Months Ended

June 30,

September 30,

(In thousands of U.S. Dollars)

2025

2024

2025

2024

Foreign exchange contracts — Forwards

Derivative ~~Gain~~ (Loss) Gain Recognized in OCI(Effective Portion)

2(1,~~520~~223)

~~(365)~~337

~~1,805~~582

(~~1,281~~944)

		Three Months Ended				~~Six~~Nine Months Ended
		June 30,				June 30,
		September 30,				September 30,
(In thousands of U.S. Dollars)	Location of Derivative LossReclassified from AOCI(Effective Portion)	2025		2024		2025		2024
Foreign exchange contracts — Forwards	Selling, general and administrative expenses	$	(~~292~~120)	$	(67162)	$	(1,~~627~~747)	$	(78240)

The Company’s estimated net amount of the existing gain as of ~~June~~September 30, 2025 is $10.43 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

16. Non-Controlling Interests

IMAX China Non-Controlling Interest

As of ~~June~~September 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40%). IMAX China remains a consolidated subsidiary of the Company. As of ~~June~~September 30, 2025, the balance of the Company’s non-controlling interest in IMAX China was $8486.05 million (December 31, 2024 — $78.1 million). For the three and ~~six~~nine months ended ~~June~~September 30, 2025, the net income attributable to the non-controlling interest in IMAX China iswas $1.09 million and $6.8.7 million, respectively (2024 — $1.54 million and $35.61 million, respectively).

17. Restructuring and Other Charges

In the three and six months ended June 30, 2025, the Company incurred $0.8 million for each such period (2024 — $nil during each such period) in Restructuring and other charges in the Consolidated Statements of Operations. These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure. Specifically, the Company incurred $0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize

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certain operational roles. Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

As of June 30, 2025, the Company’s liability was $1.4 million (December 31, 2024 — $1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

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17. Restructuring and Other Charges

In the three and nine months ended September 30, 2025, the Company incurred $nil and $0.8 million, respectively (2024 — $nil, respectively) in Restructuring and other charges in the Condensed Consolidated Statements of Operations. These charges reflect the Company’s ongoing strategic initiatives to streamline operations, reduce costs, and enhance organizational efficiency. Specifically, in the nine months ended September 30, 2025, the Company incurred $0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles and $0.3 million of non-recurring fees relating to the 2024 internal asset sale as described in the 2024 Form 10-K.

As of September 30, 2025, the Company’s liability was $0.8 million (December 31, 2024 — $1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Presented below is Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, “IMAX” or the “Company”) for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024. This MD&A should be read in conjunction with Note 13, “Segment Reporting,” in the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company’s audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2024 included in the Company’s 2024 Annual Report on Form 10-K (the “2024 Form 10-K”).

As of ~~June~~September 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. For the ~~six~~nine months ended ~~June~~September 30, 2025, net income attributable to IMAX China iswas $2330.75 million, of which $1721.09 million iswas attributable to the shareholders of the Company (2024 — $1217.87 million and $912.17 million, respectively).

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements included in this quarterly report may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of Canadian securities laws. These forward-looking statements include, but are not limited to, statements regarding business and technology strategies and measures to implement strategies, statements about the Company’s belief and expectations, competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for, expansion and growth of business, network, operations and technology, future capital expenditures (including the amount and nature thereof), the Company’s technological capabilities and the differentiation thereof, brand equity and brand awareness and the benefits thereof, industry prospects and consumer behavior, future industry developments, including expected releases and the timing and effects thereof, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results~~, including its box office guidance for 2025~~. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States, Canada, and China, including with respect to escalating and uncertain tariffs and other trade regulations, as well as economic and trade tensions, trade wars, and geopolitical conflicts and the effects thereof; risks related to the Company’s growth and operations in China; industry conditions in China affecting both the Company and its partners; risks related to the failure of the Company’s exhibitors being able to fulfill their contractual payment obligations; risks related to the Company’s failure to attract and retain its employee population; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX ~~System~~theater system agreements; conditions, changes and developments in the commercial exhibition industry; risks related to the Company’s inability to enter into new sales and lease agreements adversely affecting revenue; risks related to the Company’s operating results and cash flow increasing the volatility of the Company’s share price; risks related to currency fluctuations and foreign exchange controls; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cybersecurity and data privacy; risks related to the Company’s inability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; risks associated with the Company’s use of artificial intelligence (“AI”) and exploration of additional use cases of AI; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to sustained inflationary pressure; risks related to political, economic and social instability; the failure to convert system backlog into revenue and cash flows; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the United States Securities and Exchange Commission (the “SEC”) or in Canada, the System for Electronic Data Analysis and Retrieval (“SEDAR+”); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this quarterly report are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. The forward-looking statements herein are made only as of the date hereof and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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IMAX®, IMAX® 3D®, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX Live®, IMAX Enhanced® and IMAX ~~StreamSmartTM~~StreamSmart® are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions.

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 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 filing, except where expressly indicated. All references to the Company’s website are intended to be inactive textual references only.

OVERVIEW

IMAX Corporation (together with its consolidated subsidiaries, 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.

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 ~~all aspects of~~ 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 ~~June~~September 30, 2025, there were 1,~~821~~829 IMAX Systems in 89 countries and territories, including 1,~~750~~759 commercial multiplexes, 1110 commercial destinations, and 60 institutional locations in the Company’s global network. This compares to 1,~~780~~788 IMAX Systems in 89 countries and territories as of ~~June~~September 30, 2024, including 1,~~705~~714 commercial multiplexes, 12 commercial destinations, and 6362 institutional locations in the Company’s global network. (Refer to the table under “IMAX Network and Backlog” for additional information on the composition of the IMAX network.)

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;

39•large screens and proprietary auditorium geometry, which result in a substantially larger field of view than conventional theatre systems so that the screen extends to the edge of a viewer’s peripheral vision and creates more realistic images;

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•~~large~~advanced ~~screens~~sound ~~and~~system ~~proprietary auditorium geometry~~components, which ~~result~~deliver inmore aexpansive ~~substantially~~sound ~~larger~~imagery ~~field~~than ofconventional ~~view~~theatre sosystems ~~that~~and ~~the~~pinpointed ~~screen~~origination ~~extends~~of sound to ~~the~~any ~~edge~~specific ofspot ain ~~viewer’s~~an ~~peripheral~~auditorium ~~vision~~equipped ~~and~~with ~~creates~~an ~~more~~IMAX ~~realistic images~~System;

•~~advanced~~specialized ~~sound~~theater ~~system components~~acoustics, which ~~deliver~~result ~~more~~in ~~expansive~~a ~~sound~~four-fold ~~imagery~~reduction ~~and~~in ~~pinpointed~~background ~~origination~~noise ofcompared ~~sound~~ to ~~any~~conventional ~~specific~~cinema ~~spot in an auditorium equipped with an IMAX System~~experiences;

•specialized theater acoustics, which result in a four-fold reduction in background noise than conventional cinema experiences;

•ongoing maintenance and extended warranty services; 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.

In addition, select movies shown in the IMAX network are filmed using proprietary IMAX film cameras or IMAX certified digital cameras, which along with IMAX’s customized guidance and a workflow process, provide filmmakers enhanced and differentiated image quality and an IMAX-exclusive film aspect ratio that delivers up to 26% more image onto a standard IMAX movie 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 IMAX movie screen.

The Company believes that these ~~components~~benefits ~~cause~~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, tends to generate incremental box office receipts (“box office”) for the Company’s exhibitor customers and for the movie studios releasing their films to the IMAX network. The incremental 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.

The Company achieved a box office record in the ~~first~~third ~~half~~quarter of 2025 of $~~579~~367.26 million, ~~including booking fees,~~ a 2450% increase over the prior year comparative period, from 5437 new films and other content released during the period, highlighted by the performance of NeF1: ~~Zha~~The 2Movie, athe ~~Chinese~~Company’s ~~local~~highest ~~language~~grossing ~~animation~~Hollywood ~~film~~release year-to-date, ~~and~~achieving ~~strong~~15% ~~performance from a number~~ of ~~Filmed~~the ~~for~~film’s ~~IMAX®~~total ~~releases~~worldwide ~~including~~box ~~three~~office. ~~titles~~The ~~(“Sinners,”~~third ~~“Mission:~~quarter ~~Impossible~~of -2025 ~~The~~included ~~Final~~local ~~Reckoning,”~~language ~~and~~box ~~“F1~~office ~~The~~of ~~Movie”)~~$121 ~~where~~million ~~IMAX~~(or ~~delivered approximately 20~~33% ~~or more~~ of ~~the~~total ~~opening weekend domestic~~ box office), ~~contributing~~led toby ~~19%~~Demon ~~second~~Slayer: ~~quarter~~Infinity ~~year~~Castle ~~over~~with ~~year~~IMAX ~~growth in global~~ box office ~~market share to 3.6%, with a footprint~~ of ~~less~~$72 ~~than 1% of screens~~million. ~~Prior~~The toCompany ~~these~~has ~~three~~generated ~~titles~~over ~~there~~$343 ~~were~~million ~~only~~in ~~five~~local ~~Hollywood~~language ~~movies~~box inoffice ~~the~~year ~~Company’s~~to ~~history~~date ~~where~~September ~~IMAX~~2025, ~~accounted~~surpassing ~~for~~its ~~over~~previous ~~20%~~record of ~~the~~$243 ~~opening~~million ~~weekend’s~~set ~~domestic~~in ~~box office~~2023.

The Company now has four releases on the year: Sinners, Mission: Impossible - The Final Reckoning, F1: The Movie, and One Battle After Another, for which IMAX has generated at least 20% of the domestic opening on just over 400 North American screens.

As a premier global technology platform for entertainment and events, 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 for image enhancement, streaming technology, and data analysis towith ~~improve~~the goal of improving various aspects of its business. Furthermore, the Company is actively exploring other global use cases for AI to save costs and to improve its products, operations, and efficiency.

The U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs on imports. These actions have resulted in retaliatory measures and uncertainty in global trade relationships. 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.” in Part II, Item 1A of this Form 10-Q.

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 (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

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reportable segment are disclosed within All Other (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

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, 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.

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 movie 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 (i.e., gross box office (“GBO”) less applicable sales taxes), except for within Greater China, where the Company often receives a lower percentage of net box office due to tax. All box office results in this report are inclusive of China booking fees.

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. 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. The Company’s Filmed For IMAX® program enables filmmakers to craft films from their inception to optimize The IMAX Experience and provides incremental and bespoke marketing support. The box office metrics ~~demonstrate~~have demonstrated audiences respond extremely ~~favorable~~favorably to Filmed For IMAX® titles, resulting in a higher market share for IMAX. In 2025, Filmed for IMAX titles have indexed almost 20% higher than titles with no IMAX DNA.

Management believes that growth in international 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 China, 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. For the ~~first~~three ~~six~~and nine months inended September 30, 2025, local language films exhibited across the Company’s global network generated ~~over~~$120 million and $~~222~~343 million, respectively, in box office, representing 3833% and 36%, respectively, of the Company’s 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.

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The following table provides the number of new films and other content that were released to the Company’s global network during the three and six months ended June 30, 2025 and 2024:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2025	2024	2025	2024
Hollywood film releases(1)	8	9	15	16
Local language film releases:
China	4	4	10	8
South Korea	2	2	4	3
Japan	1	5	4	8
India	1	2	6	4
Saudi Arabia	1	—	1	—
Egypt	1	—	1	—
France	—	—	2	—
Vietnam	—	—	1	—
Indonesia	—	1	1	1
Total local language film releases	10	14	30	24
Other content experiences	3	4	9	6
	21	27	54	46
(1)For the three and six months ended June 30, 2025, the films released to the Company’s global network include six and seven with IMAX DNA (2024 — two).

The films distributed through the Company’s global network during the three and six months ended June 30, 2025 that generated the highest IMAX box office totals were Chinese local language film Ne Zha 2, Mission: Impossible - The Final Reckoning and Sinners. In addition, during the three and six months ended June 30, 2025, a number of alternative content films and events were distributed, including Becoming Led Zeppelin, Pink Floyd at Pompeii - MCMLXXII and One to One: John & Yoko.

In addition to the 54 IMAX films and alternative content experiences released on the Company’s global network during the six months ended June 30, 2025, the Company has announced the following additional 30 new films and alternative content experiences to be released throughout the remainder of 2025:

Title

Studio

ScheduledRelease Date(1)

IMAX DNA

Jurassic World: Rebirth

Universal Pictures

July 2025

—

Superman

Warner Bros. Pictures

July 2025

Filmed for IMAX

Curious Tales of A Temple(2)

Wanda

July 2025

—

Demon Slayer: Kimetsu No Yaiba The Movie: Infinity Castle(2)

Toho/Sony Pictures

July 2025

—

You are the Best(2)

Lian Ray

July 2025

—

The Lychee Road(2)

Maoyan

July 2025

—

The Prophet: Omniscient Reader(2)

Lotte

July 2025

—

The Fantastic Four: First Steps

Marvel Studios

July 2025

Filmed for IMAX

Dead to Rights(2)

Super Lion

July 2025

—

Tokyo Mer 2(2)

Toho

August 2025

—

NOBODY(2)

Maoyan

August 2025

—

Weapons

Warner Bros. Pictures

August 2025

—

The Grateful Dead Movie

Rhino Entertainment/Trafalgar

August 2025

—

Black Swan: 15th Anniversary Exclusive

Searchlight Pictures

August 2025

—

Dongji Rescue(2)

Alibaba

August 2025

Filmed for IMAX

War 2(2)

Yash Raj Films

August 2025

—

Das Kanu Des Manitu(2)

Constantin Films

August 2025

—

The Shadow’s Edge(2)

Alibaba

August 2025

—

Prince - Sign O’ The Times

Mercury Studios

August 2025

—

Jaws: 50th Anniversary

Universal Pictures

August 2025

—

The Conjuring: Last Rites

Warner Bros. Pictures

September 2025

—

Him

Universal Pictures

September 2025

—

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One Battle After Another

Warner Bros. Pictures

September 2025

—

Tron: Ares

Walt Disney Studios

October 2025

Filmed for IMAX

Mortal Kombat 2

Warner Bros. Pictures

October 2025

Filmed for IMAX

Predator: Badlands

Walt Disney Studios

November 2025

—

The Running Man

Paramount Pictures

November 2025

—

Wicked: For Good

Universal Pictures

November 2025

—

Zootopia 2

Walt Disney Studios

November 2025

—

Avatar: Fire and Ash

Walt Disney Studios

December 2025

—

(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 following table provides the number of new films and other content that were released to the Company’s global network during the three and nine months ended September 30, 2025 and 2024:

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 throughout 2025. The Company has announced that a record number of over 14 Filmed for IMAX titles will be released in 2025. The Company’s Hollywood film slate beyond 2025 is building, including major films such as: The Odyssey, Avengers: Doomsday, The Mandalorian and Grogu, Dune 3, Avengers: Secret Wars, Project Hail Mary, Toy Story 5, Supergirl Woman of Tomorrow, Moana, The Batman 2, Frozen 3, and Dynamic Duo. Additionally, in January 2025, the Company announced an agreement with Netflix, Inc. to debut Academy Award®-nominated director Greta Gerwig’s upcoming film, Narnia, exclusively across the IMAX network with a two-week run beginning Thanksgiving 2026.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
Hollywood film releases(1)	7	11	22	27
Local language film releases:
China	12	10	22	18
Japan	4	4	8	12
South Korea	2	2	6	5
India	1	3	7	7
Vietnam	1	—	2	—
Thailand	1	1	1	1
Germany	1	—	1	—
France	—	—	2	—
Indonesia	—	—	1	1
Egypt	—	—	1	—
Saudi Arabia	—	—	1	—
Malaysia	—	1	—	1
Total local language film releases	22	21	52	45
Other content experiences	8	5	17	11
	37	37	91	83
(1)For the three and nine months ended September 30, 2025, the films released to the Company’s global network include four and 13 with IMAX DNA (2024 — five).

The films distributed through the Company’s global network during the nine months ended September 30, 2025 that generated the highest IMAX box office totals were Chinese local language film Ne Zha 2, F1 The Movie, Mission: Impossible - The Final Reckoning, and Japanese local language film Demon Slayer: Infinity Castle. In addition, during the nine months ended September 30, 2025, a number of alternative content films and events were distributed, including Becoming Led Zeppelin, Pink Floyd at Pompeii - MCMLXXII and Prince - Sign O’ The Times.

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In addition to the 91 IMAX films and alternative content experiences released on the Company’s global network during the nine months ended September 30, 2025, the Company has announced the following additional 22 new films and alternative content experiences to be released throughout the remainder of 2025:

Title

Studio

Scheduled

Release Date(1)

IMAX DNA

Tron: Ares

Walt Disney Studios

October 2025

Filmed for IMAX

Chien 51(2)

Pathe

October 2025

—

Thama(2)

Maddock Films

October 2025

—

Springsteen: Deliver Me from Nowhere

Walt Disney Studios

October 2025

—

Depeche Mode: M

Trafalgar

October 2025

—

G-Dragon(2)

CJ ENM

October 2025

—

Back to the Future: 40th Anniversary

Universal Pictures

October 2025

—

Baahubali: The Epic(2)

Arka Media Works

October 2025

—

League of Legends

Riot Games

November 2025

—

J-Hope(2)

Hybe

November 2025

—

Jujutsu Kaisen Execution

Toho Studios

November 2025

—

Predator: Badlands

Walt Disney Studios

November 2025

—

The Running Man

Paramount Pictures

November 2025

—

Scarlet

Toho Studios

November 2025

—

Wicked: For Good

Universal Pictures

November 2025

—

Zootopia 2

Walt Disney Studios

November 2025

—

Mrs. Green Apple

Toho Studios

November 2025

—

Amsterdamned II(2)

Splendid Film

December 2025

—

Stones to the Max

Mercury Studios

December 2025

—

Avatar: Fire and Ash

Walt Disney Studios

December 2025

—

Made in Yiwu(2)

Lian Ray

December 2025

Filmed for IMAX

Escape From the Outland(2)

Super Lion

December 2025

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 the last quarter of 2025. The Company has announced that a record number of over 14 Filmed for IMAX titles are scheduled to be released in 2025. The Company’s Hollywood film slate beyond 2025 is building, including major films such as: The Odyssey, Avengers: Doomsday, The Mandalorian and Grogu, Dune 3, Avengers: Secret Wars, Project Hail Mary, Toy Story 5, Supergirl: Woman of Tomorrow, Moana, The Batman 2, Frozen 3, and Dynamic Duo. Additionally, in January 2025, the Company announced an agreement with Netflix, Inc. to debut Academy Award®-nominated director Greta Gerwig’s upcoming film, Narnia: The Magician’s Nephew, exclusively across the IMAX network with a two-week run beginning Thanksgiving 2026. In addition, the Company believes that at least 15 Filmed for IMAX titles will be released to its global network in 2026, which would break the record set in 2025 for such titles.

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. In 2025, the Company released the institutional 3D version of Blue Angels across select IMAX locations in North America, Europe, and Australia. Upcoming documentaries, which are currently in production, include The Lost Wolves of Yellowstone, in collaboration with Grizzly Creek Films LLC, which is expected to be released in ~~2025~~2026. ~~Stormbound,~~Other a feature documentary films expected to be released in 2026 include Stormbound produced by Academy Award-winning producer, Adam McKay; Frontier produced in collaboration with Nocturnal Entertainment Productions, ~~Patrouille~~LLC, deAtlas ~~France~~Entertainment LL, and Believe Entertainment Group, LLC; and French language Athos produced by Federation Studio France. The Elephant Odyssey, a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, ~~are~~is expected to be released in ~~2026~~2027.

The Company continues to believe 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 ~~June~~September 30, 2025, the Company had distribution rights with respect to approximately 65 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of June 30, 2025, the Company had a footprint of 266 connected locations in the IMAX network across North America, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.44

InTable ~~the six months ended June 30, 2025, the Company partnered with Sony Pictures for the exclusive release~~ of Becoming Led Zeppelin, Magnolia Pictures for the exclusive release of One to One: John & Yoko and Trafalgar Releasing for the exclusive release of Pink Floyd at Pompeii - MCMLXXII, NBC Universal for the SNL50 The Homecoming Concert in select IMAX North American locations and DAZN for the PSG v Marseille Le Classique Match in select IMAX locations across France. In addition, the Company continued its partnership with A24 for one-night-only IMAX releases of classic A24 titles, including Talk to Me, Moonlight, and Spring Breakers. The Company collaborated with Fandango Media for the Fortnite Championship Series: Pro-Am screening in eight North American IMAX locations and with Wanda Film for the F1 Spanish Grand Prix screening across six IMAX locations in China.Contents

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of September 30, 2025, the Company had a footprint of 253 connected locations in the IMAX network across North America, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.

In the third quarter, the Company had several releases which included one-night-only concert event 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 partnered with Mercury Studios for the release of Prince - Sign O’ The Times and Bleecker Street for the release of Spinal Tap II: The End Continues, including a live Q&A event. In the nine months ended September 30, 2025, in addition to the third quarter releases noted, the Company partnered with Sony Pictures for the exclusive release of Becoming Led Zeppelin, Magnolia Pictures for the exclusive release of One to One: John & Yoko and Trafalgar Releasing for the exclusive release of Pink Floyd at Pompeii - MCMLXXII, NBC Universal for the SNL50 The Homecoming Concert in select IMAX North American locations and DAZN for the PSG v Marseille Le Classique Match in select IMAX locations across France. In addition, the Company continued its partnership with A24 for one-night-only IMAX releases of classic A24 titles, including Talk to Me, Moonlight, and Spring Breakers. The Company collaborated with Fandango Media for the Fortnite Championship Series: Pro-Am screening in eight North American IMAX locations and with Wanda Film for the F1 Spanish Grand Prix screening across six IMAX locations in China.

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 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.

43The 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.

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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.

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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 joint revenue sharing arrangements (“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, primarily, 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 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 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 ~~June~~September 30, 2025, the Company had ~~899~~905 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for ~~336~~321 systems under JRSAs as of ~~June~~September 30, 2025, including ~~138~~126 upgrades to existing locations and ~~198~~195 new locations.

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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~~standards. Annual maintenance fees are paid throughout the duration of the term of the system agreements.

All Other

IMAX Enhanced | Streaming and Consumer Technology

IMAX’s Streaming and Consumer Technology (“SCT”) ~~segment~~business ~~now~~ 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 ~~fans~~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 is maintained faithfully and experienced as intended on consumer devices. As of June 30, 2025, over 15 million IMAX Enhanced certified devices are in-market with partners including Sony Electronics, Hisense, TCL, LG, and Philips.46

~~The~~Table ~~SCT~~of products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have now been fully streamlined and integrated into the IMAX Enhanced program, improving operational efficiency, reducing overhead, and enabling partners to deliver differentiated, premium, and monetizable viewing experiences validated through IMAX’s proprietary approach to visual quality.Contents

~~IMAX’s~~Enhanced ~~Streaming~~on-demand ~~and~~content ~~Consumer Technology~~ is ~~part~~currently ofavailable ~~the~~for ~~Company’s~~fan-favorite ~~next~~titles ~~evolutionary~~across ~~step~~leading toservices ~~extend~~such ~~the~~as ~~IMAX brand and technology into new use cases and programming~~Disney+, ~~including~~Sony ~~live~~Pictures ~~events~~Core, ~~series,~~ and ~~fully~~Tencent ~~leveraging consumer electronics to deliver premium experiences for fans at home~~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 September 30, 2025, over 15 million IMAX Enhanced certified devices are in-market with partners, including Sony Electronics, Hisense, TCL, LG, and Philips.

IMAX’s Streaming and Consumer Technology is part of the Company’s next evolutionary step to extend the IMAX brand and technology into new use cases and programming, including live events, series, and leveraging consumer electronics to deliver premium experiences for users at home.

The products branded as StreamSmart® (encoding optimization) and StreamAware™ (quality assurance and monitoring) have now been streamlined to improve operational efficiency, reduce overhead, and enable partners to deliver differentiated, premium, and monetizable viewing experiences validated through IMAX’s proprietary approach to visual quality.

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; the provision of management services to three other theaters; and offering production advice and technical assistance to both documentary and Hollywood filmmakers.

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IMAX NETWORK AND BACKLOG

IMAX Network

The following table provides detailed information about the IMAX network by type and geographic location as of ~~June~~September 30, 2025 and 2024. For additional information regarding the composition of the IMAX network, see “Marketing and Customers” in Part I, Item 1 of the Company’s 2024 Form 10-K.

	June 30, 2025				June 30, 2024
	September 30, 2025				September 30, 2024
	Commercial Multiplex	CommercialDestination	Institutional	Total	Commercial Multiplex	CommercialDestination	Institutional	Total
United States	~~375~~380	4	24	~~403~~408	~~364~~368	4	24	~~392~~396
Canada	44	1	5	50	4342	1	76	5149
Greater China(1)	~~796~~787	—	13	~~809~~800	~~790~~795	—	13	~~803~~808
Asia (excluding Greater China)	~~187~~194	1	2	~~190~~197	~~176~~175	2	2	~~180~~179
Western Europe	~~142~~147	43	7	~~153~~157	~~129~~131	4	8	~~141~~143
Latin America(2)	6263	1	7	7071	61	1	7	69
Rest of the World	144	—	2	146	142	—	2	144
Total(3)	1,~~750~~759	1110	60	1,~~821~~829	1,~~705~~714	12	6362	1,~~780~~788
(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.

(See “Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there,” “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows,” and “Risk Factors – 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” in Part I, Item 1A of the Company’s 2024 Form 10-K.)

IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations (last updated in 2023), of which there are 1,~~750~~759 IMAX Systems operating as of ~~June~~September 30, 2025, representing a market penetration of only 4849%. The Company believes that the majority of its future growth will come from international markets. As of ~~June~~September 30, 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). Revenues and GBO derived from international markets continue to exceed revenues and GBO from the United States and Canada. Risks associated with the Company’s international business are outlined in “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 of the Company’s 2024 Form 10-K.

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The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of June 30, 2025 and 2024:

	June 30, 2025
	Commercial Multiplex Locations in IMAX Network
	TraditionalJRSA	HybridJRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	276	6	137	419
International:
Greater China	388	99	309	796
Asia (excluding Greater China)	53	1	133	187
Western Europe	48	13	81	142
Latin America	4	—	58	62
Rest of the World	11	—	133	144
International Total	504	113	714	1,331
Worldwide Total(2)	780	119	851	1,750
(1)Includes Sales and Sales-Type Lease deal types.(2)Period-to-period changes in the tables above are reported net of permanently closed locations.

	June 30, 2024
	Commercial Multiplex Locations in IMAX Network
	TraditionalJRSA	HybridJRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	271	7	129	407
International:
Greater China	379	108	303	790
Asia (excluding Greater China)	53	8	115	176
Western Europe	40	15	74	129
Latin America	3	—	58	61
Rest of the World	14	—	128	142
International Total	489	131	678	1,298
Worldwide Total(2)	760	138	807	1,705
(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.

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from the United States and Canada. Risks associated with the Company’s international business are outlined in “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 of the Company’s 2024 Form 10-K.

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of September 30, 2025 and 2024:


	September 30, 2025
	Commercial Multiplex Locations in IMAX Network
	Traditional JRSA	Hybrid JRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	278	6	140	424
International:
Greater China	387	99	301	787
Asia (excluding Greater China)	56	1	137	194
Western Europe	50	13	84	147
Latin America	4	—	59	63
Rest of the World	11	—	133	144
International Total	508	113	714	1,335
Worldwide Total(2)	786	119	854	1,759
(1)Includes Sales and Sales-Type Lease deal types. (2)Period-to-period changes in the tables above are reported net of permanently closed locations.


	September 30, 2024
	Commercial Multiplex Locations in IMAX Network
	Traditional JRSA	Hybrid JRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	275	6	129	410
International:
Greater China	381	108	306	795
Asia (excluding Greater China)	51	1	123	175
Western Europe	42	14	75	131
Latin America	3	—	58	61
Rest of the World	13	—	129	142
International Total	490	123	691	1,304
Worldwide Total(2)	765	129	820	1,714
(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.

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Backlog

The following tables provide detailed information about the Company’s backlog by arrangement type and geographic location as of ~~June~~September 30, 2025 and 2024:

	June 30, 2025
	September 30, 2025
	IMAX System Backlog
	TraditionalJRSA	HybridJRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	~~119~~108	2	1015	~~131~~125
International:
Greater China	9293	90	4944	~~231~~227
Asia (excluding Greater China)	1916	21	4036	6153
Western Europe	97	—	1713	2620
Latin America	1	—	76	87
Rest of the World	2	—1	4243	4446
International Total	~~123~~119	92	~~155~~142	~~370~~353
Worldwide Total(2)(3)	~~242~~227	94	~~165~~157	~~501~~478
(1)Includes Sales and Sales-Type Lease deal types.(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.
(1)Includes Sales and Sales-Type Lease deal types.(2)Worldwide Total of 478 includes 247 new IMAX Laser Systems and 137 upgrades of existing locations to IMAX Laser Systems.(3)Worldwide Total of 478 includes 341 new system backlog and 137 upgrade system backlog.

	June 30, 2024
	September 30, 2024
	IMAX System Backlog
	TraditionalJRSA	HybridJRSA	Sales Arrangements(1)	Total
Domestic Total (United States & Canada)	7660	2	1210	9072
International:
Greater China	112	90	6152	~~263~~254
Asia (excluding Greater China)	1817	72	3343	5862
Western Europe	1513	1	1921	35
Latin America	2	—	43	65
Rest of the World	3	1—	4841	5244
International Total	~~150~~147	9993	~~165~~160	~~414~~400
Worldwide Total(2)(3)	~~226~~207	~~101~~95	~~177~~170	~~504~~472
(1)Includes Sales and Sales-Type Lease deal types.(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.
(1)Includes Sales and Sales-Type Lease deal types.(2)Worldwide Total of 472 includes 262 new IMAX Laser Systems and 109 upgrades of existing locations to IMAX Laser Systems.(3)Worldwide Total of 472 includes 363 new system backlog and 109 upgrade system backlog.

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 74% of IMAX System arrangements in backlog as of ~~June~~September 30, 2025 ~~are~~were scheduled to be installed in international markets (2024 — 8285%).

(See “Risk Factors – The Company may not convert all of its backlog into revenue and cash flows.” in Part I, Item 1A of the Company’s 2024 Form 10-K.)

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Signings and Installations

The following tables provide detailed information about IMAX System signings and installations for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Three Months Ended		~~Six~~Nine Months Ended
	June 30,		June 30,
	September 30,		September 30,
	2025	2024	2025	2024
System Signings:
Sales Arrangements(1)	15	2510	3449	3040
Traditional JRSA	134	626	8993	6571
Total IMAX System signings(2)	2819	8716	~~123~~142	95111
(1) Includes Sales and Sales-Type Lease deal types.(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).
(1) Includes Sales and Sales-Type Lease deal types.(2) Includes one and 61 IMAX System upgrades for the three and nine months ended September 30, 2025, respectively (2024 ― one and 69 upgrades, respectively).

	Three Months Ended		~~Six~~Nine Months Ended
	June 30,		June 30,
	September 30,		September 30,
	2025	2024	2025	2024
System Installations(1):
Sales Arrangements(2)	1317	1020	2643	1535
Hybrid JRSA	—1	—	—1	1
Traditional JRSA	2320	1429	3151	2352
Total IMAX System installations(3)	3638	2449	5795	3988
(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system 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 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).
(1)Two and five IMAX Systems were relocated from their original location for the three and nine months ended September 30, 2025, respectively (2024 ― two and four relocations, respectively). When a system 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 15 and 40 IMAX System upgrades for the three and nine months ended September 30, 2025, respectively (2024 ― 32 and 43 upgrades, respectively).

RESULTS OF OPERATIONS

~~The~~Results ~~Company’s business and future prospects are evaluated by Richard L. Gelfond, its Chief Executive Officer (“CEO”), using a variety~~ of ~~factors~~Operations and financial and operational metrics, including: (i) IMAX box office performance and the securing of new IMAX films and alternative content to be exhibited across the IMAX network; (ii) the signing, installation, and financial performance of IMAX System arrangements; (iii) the success of the Company’s investments in business evolution and brand extensions into streaming and consumer technology; (iv) revenues and gross margins earned by the Company’s segments; (v) consolidated earnings (loss) from operations, as adjusted for ~~unusual items; (vi)~~ the ~~continuing~~Three ~~ability~~Months toEnded ~~invest~~September ~~in and improve the Company’s technology to enhance the differentiation of The IMAX Experience versus other out-of-home experiences; (vii) the overall execution~~30, ~~reliability,~~2025 and ~~consumer acceptance of The IMAX Experience; and (viii) short- and long-term cash flow projections.~~2024

Results of Operations for the Three Months Ended June 30, 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 diluted share amounts, as well as adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share for the three months ended ~~June~~September 30, 2025 and 2024:


	Three Months Ended September 30,
	2025				2024
(In thousands of U.S. Dollars, except per diluted share amounts)	Net Income		Per Diluted Share		Net Income		Per Diluted Share
Net income attributable to common shareholders	$	20,657	$	0.37	$	13,896	$	0.26
Adjusted net income attributable to common shareholders*	$	26,240	$	0.47	$	18,855	$	0.35
*Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.

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	Three Months Ended June 30,
	2025				2024
(In thousands of U.S. Dollars, except per diluted share amounts)	Net Income		Per Diluted Share		Net Income		Per Diluted Share
Net income attributable to common shareholders	$	11,255	$	0.20	$	3,583	$	0.07
Adjusted net income attributable to common shareholders*	$	14,607	$	0.26	$	9,746	$	0.18
*Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.

Revenues and Gross Margin

During the three months ended ~~June~~September 30, 2025, the Company’s revenues and gross margin increased by $215.72 million, or 317%, and $916.73 million, or 2232%, respectively, when compared to same period in 2024 principally due to ~~a higher number of installations and~~ stronger global IMAX box office performance ~~driven by the Hollywood film slate~~.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the three months ended June 30, 2025 and 2024:

	Revenue				Gross Margin				Gross Margin %
(In thousands of U.S. Dollars)	2025		2024		2025		2024		2025		2024
Content Solutions	$	33,965	$	35,076	$	22,431	$	16,138	66	%	46	%
Technology Products and Services	55,639		50,898		30,178		25,783		54	%	51	%
Sub-total for reportable segments	89,604		85,974		52,609		41,921		59	%	49	%
All Other(1)	2,080		2,987		993		2,006		48	%	67	%
Total	$	91,684	$	88,961	$	53,602	$	43,927	58	%	49	%
(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.

Content Solutions

For the three months ended June 30, 2025, Content Solutions segment revenues and gross margin decreased by $1.1 million, or 3%, and increased by $6.3 million, or 39%, respectively, when compared to the same period in 2024. The decrease in revenue compared to the prior period was primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels, to Amazon Content in the second quarter of 2024.

The documentary sale impact on revenue was mostly offset in the second quarter of 2025 by stronger IMAX box office performance year over year. In the second quarter of 2025, box office generated by IMAX films, including booking fees, totaled $281.1 million, an $81.3 million, or 41% increase versus the prior year comparative period of $199.8 million. The growth was primarily driven by the stronger IMAX box office performance of the IMAX Hollywood film slate during the quarter, compared to the second quarter of 2024 box office performance which had fewer large blockbusters due to the Hollywood strikes. In the second quarter of 2025, IMAX box office was generated by the exhibition of 22 films and other content (21 new films and 1 film originally released in a prior year), including the following Hollywood titles, Mission: Impossible - The Final Reckoning ($75 million), Sinners ($40 million), F1 The Movie ($32 million) and Thunderbolts ($31 million). In the second quarter of 2025, local language films exhibited across the Company’s global network generated $19.8 million in box office, representing 7% of its global box office. In the second quarter of 2024, IMAX box office was generated by the exhibition of 34 films (27 new films and 7 films originally released in a prior year).

In the second quarter of 2025, the Company released six movies that were filmed with IMAX proprietary cameras (Filmed For IMAX): Sinners, Thunderbolts, Final Destination: Bloodlines, Mission: Impossible - The Final Reckoning, How To Train Your Dragon and F1 The Movie. Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for three of these films (Sinners, Mission: Impossible - The Final Reckoning and F1 The Movie), IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

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InThe ~~addition~~following totable presents the ~~level~~Company’s ~~of revenues~~revenue, ~~Content Solutions segment~~ gross margin ~~is influenced by the costs associated with films and other content (documentaries~~, ~~live, alternative~~ and ~~other)~~gross ~~exhibited~~margin inpercentage ~~the~~by ~~period.~~reportable ~~The~~segment ~~costs~~for ~~associated with films and other content can include production, post-production, distribution and marketing, which are expensed as incurred. For~~ the three months ended ~~June~~September 30, 2025, ~~gross margin percent was 66% compared to 46% in the prior year period. The increase in gross margin was driven by higher level of IMAX box office~~ and ~~a lower mix of self-produced content compared to the prior period.~~2024:


	Revenue				Gross Margin				Gross Margin %
(In thousands of U.S. Dollars)	2025		2024		2025		2024		2025		2024

Content Solutions	$	44,832	$	30,129	$	31,923	$	16,449	71	%	55	%
Technology Products and Services	60,420		57,971		34,820		31,964		58	%	55	%
Sub-total for reportable segments	105,252		88,100		66,743		48,413		63	%	55	%
All Other(1)	1,402		3,352		528		2,606		38	%	78	%
Total	$	106,654	$	91,452	$	67,271	$	51,019	63	%	56	%
(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.

Content Solutions

For the three months ended September 30, 2025, Content Solutions segment revenues and gross margin increased by $14.7 million, or 49%, and increased by $15.5 million, or 94%, respectively, when compared to the same period in 2024. The third quarter results were driven by record third quarter IMAX GBO as well as IMAX’s highest ever Content Solutions gross margin percentage.

In the third quarter of 2025, box office generated by IMAX films totaled $367.6 million, an $122.7 million, or 50% increase versus the prior year comparative period of $245.0 million. The growth was driven by the stronger IMAX box office performance of the diversified global IMAX film slate during the quarter, compared to the third quarter of 2024 box office performance. In the third quarter of 2025, IMAX box office was generated by the exhibition of 39 films (37 new films and other content and 2 films originally released in a prior year), including the following Hollywood titles: F1 The Movie ($65 million), Superman ($57 million), and The Fantastic Four: First Steps ($49 million). In the third quarter of 2025, local language films exhibited across the Company’s global network generated $120.2 million in box office, representing 33% of its GBO. The Japanese local language film, Demon Slayer: Infinity Castle, ($72 million) became the highest grossing IMAX release of all time in Japan and set numerous opening weekend country records as it released across the IMAX global network. In the third quarter of 2024, IMAX box office was generated by the exhibition of 44 films (37 new films and other content, and 7 films originally released in a prior year).

In the third quarter of 2025, the Company released Superman and The Fantastic Four: First Steps which were filmed with IMAX proprietary cameras (Filmed For IMAX). Filmed For IMAX movies traditionally result in a higher IMAX share of GBO and for the two Hollywood Filmed for IMAX films released in the three months ended September 30, 2025, IMAX generated 14.2% of the domestic opening weekend box office, despite accounting for only 1% of available screens.

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content (documentaries, live, alternative and other) 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 three months ended September 30, 2025, gross margin percent was 71% compared to 55% in the prior year period. The increase in gross margin was due to the higher level of IMAX box office and the profit that incrementally ensues when individual titles generate higher levels of box office.

Technology Products and Services

The ~~primary~~following ~~drivers~~table ofprovides ~~Technology~~information ~~Products~~about ~~and Services segment results are the number of~~ IMAX Systems installed inand ~~a period,~~ the ~~costs~~ associated ~~with~~revenue ~~each~~recognized ~~installation,~~at ~~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 exhibitortime, ~~an exhibitor’s location, the type of~~ IMAX System ~~sold,~~counts ~~and~~exclude ~~various~~traditional ~~other~~JRSAs ~~factors.~~as ~~The~~revenue ~~installation~~is ofrecognized ~~IMAX~~over ~~Systems in theaters or multiplexes, which make up a large portion of~~ the ~~Company’s~~lease ~~system backlog~~term, ~~depends~~during ~~primarily on~~ the ~~timing~~three ofmonths ~~the~~ended ~~construction~~September ~~of those projects~~30, ~~which~~2025 isand ~~not~~2024: ~~under the Company’s control.~~

The following table provides 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 three months ended June 30, 2025 and 2024:


	Three Months Ended September 30,
	2025			2024
(In thousands of U.S. Dollars, except number of systems)	Number of Systems	Revenue		Number of Systems	Revenue
New IMAX Systems	16	$	12,318	12	$	11,363
Upgraded IMAX Systems	2	1,881		8	9,424
Total IMAX Systems	18	$	14,199	20	$	20,787

	Three Months Ended June 30,
	2025			2024
(In thousands of U.S. Dollars, except number of systems)	Number of Systems	Revenue		Number of Systems	Revenue
New IMAX Systems	11	$	11,206	8	$	7,649
Upgraded IMAX Systems	2	1,878		2	2,926
Total IMAX Systems	13	$	13,084	10	$	10,575

Included in the table above are two IMAX Systems that were relocated from their original locations, one of which was closed in a prior period (2024 ― one IMAX System). 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 typically lower than a new IMAX system. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.

For the three months ended June 30, 2025, Technology Products and Services segment revenue increased by $4.7 million, or 9%, while gross margin increased by $4.4 million, or 17%, when compared to the same period in 2024. The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office driven. Rental revenues increased by $5.1 million, as IMAX GBO earned from the Company’s JRSAs increased by $24.1 million in the second quarter of 2025 when compared to the prior year comparative period, from $101.0 million to $125.1 million. Also contributing to the increase in revenue was the higher number of systems recognized under sales and sales-type lease arrangements, per the table above.

The increase in revenues described above were partially offset by a $4.7 million decrease in revenue contribution from the impact of amendments, renewals and other agreements to existing IMAX Systems arrangements.

For the three months ended June 30, 2025, gross margin percent was 54% compared to 51% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance, as described above.

All Other

For the three months ended June 30, 2025, All Other revenue and gross margin decreased by $0.9 million and $1.0 million, respectively, when compared to the same period in 2024. All Other primarily reflects the results of the Company’s Streaming and Consumer Technology business.

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended June 30, 2025 and 2024:

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	Three Months Ended
	June 30,				Variance
(In thousands of U.S. Dollars)	2025		2024		$		%
Total Selling, general and administrative expenses	$	35,302	$	37,564	$	(2,262)	(6	%)
Less: Share-based compensation(1)	(6,862)		(6,506)		(356)		(5	%)
Total Adjusted Selling, general and administrative expenses	$	28,440	$	31,058	$	(2,618)	(8	%)
(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to “Capital Stock and Reserves — Share-Based Compensation” in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

For the three months ended September 30, 2025, Technology Products and Services segment revenue increased by $2.4 million, or 4%, while gross margin increased by $2.9 million, or 9%, when compared to the same period in 2024. The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office driven. Rental revenues increased by $7.0 million, as IMAX GBO earned from the Company’s JRSAs increased by $37.9 million, or 32%, in the third quarter of 2025 when compared to the prior year comparative period, from $116.7 million to $154.6 million. Also contributing to the increase in revenue was an increase in after-market revenue, primarily from higher sales of 3D glasses, during the quarter.

~~For~~The ~~the~~increases ~~second~~in ~~quarter~~revenues ofdescribed ~~2025,~~above ~~the~~were ~~lower~~partially ~~level~~offset ofby ~~Selling,~~a General and Administrative Expenses year-over-year reflects management’s continued focus on operational efficiencies, including workforce reductions. Additionally, in the period, the Company recognized $26.56 million decrease in ~~benefits~~revenue ~~resulting~~ from anthe ~~Employee~~installation ~~Retention~~of ~~Credit~~IMAX asSystems, aand ~~reduction~~lower torenewals ~~Selling,~~versus ~~General~~the ~~and~~prior ~~Administrative expenses~~period, ~~partially~~under ~~offset~~sales byand ~~higher~~sales-type ~~annual~~lease ~~incentive compensation costs~~arrangements.

For the three months ended September 30, 2025, Technology Products and Services gross margin percent was 58% compared to 55% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance across the joint revenue sharing network, as described above.

All Other

For the three months ended September 30, 2025, All Other revenue and gross margin decreased by $2.0 million and $2.1 million, respectively, when compared to the same period in 2024. All Other primarily reflects the results of the Company’s SCT business. The decline primarily reflects the Company’s re-positioning and relaunch the SCT business, including the introduction of new branding and product offerings such as IMAX Enhanced: On-Demand.

Selling, General and Administrative Expenses

The following table presents information about the Company’s Selling, General and Administrative Expenses for the three months ended September 30, 2025 and 2024:


	Three Months Ended
	September 30,				Variance
(In thousands of U.S. Dollars)	2025		2024		$		%
Total Selling, general and administrative expenses	$	34,219	$	31,466	$	2,753	9	%
Less: Share-based compensation(1)	(5,763)		(5,036)		(727)		(14	%)
Total Adjusted Selling, general and administrative expenses	$	28,456	$	26,430	$	2,026	8	%
(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to “Capital Stock and Reserves — Share-Based Compensation” in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

For the third quarter of 2025, the higher level of Selling, General and Administrative Expenses year-over-year reflects higher annual performance driven incentive compensation costs and fringe benefits, partially offset by management’s continued focus on operational efficiencies. In the prior period, the Company recorded an adjustment of $1.6 million resulting from a reduction in the SSIMWAVE acquisition performance payout as a reduction to Selling, General and Administrative expenses. No such adjustment to reduce Selling, General and Administrative expenses was recognized in the current period.

Research and Development

For the three months ended ~~June~~September 30, 2025, Research and Development expenses were $1.5 million, compared to ana ~~expense~~net cost recovery of $2.0.3 million during the same period in the prior year. The ~~reduction~~increase ~~year-over-year~~is ~~was~~ primarily driven by the capitalization of ~~film camera~~ costs in accordance with the achievement of technological feasibility of the Company’s new film cameras in the third quarter of 2024. The Company continues to expense its investment in other projects, including in the development of new ~~Streaming~~SCT ~~and Technology~~ product offerings and improvements to its existing IMAX System product suite.

Credit Loss Expense (Reversal) ~~Expense~~, Net

For the three months ended ~~June~~September 30, 2025, the Company recorded a credit loss ~~reversal~~expense of $0.26 million, as compared to a credit loss ~~expense~~reversal of $01.1 million recognized in the prior year.

~~Stronger~~ ~~box~~The ~~office~~Company ~~performance~~estimates incredit ~~the~~losses ~~year~~based ~~has~~on ~~contributed~~both to a ~~notable~~historical ~~improvement~~provision inrate ~~collections.~~and ~~The~~customer ~~resurgence~~specific incircumstances. ~~theatrical~~Management’s ~~attendance,~~judgments ~~driven~~regarding byexpected acredit ~~robust~~losses ~~film~~are ~~slate,~~based ~~has~~on ~~increased~~the ~~and~~facts ~~accelerated~~available ~~cash~~to ~~inflows~~management ~~from~~at ~~studio~~the ~~and~~time ~~exhibitor~~that ~~customers.~~the ~~This~~Condensed ~~trend~~Consolidated ~~reflects~~Financial ~~both~~Statements ~~the~~are ~~sustained~~prepared ~~consumer~~and ~~demand~~involve ~~for~~estimates ~~premium~~about ~~cinematic experiences and~~ the ~~effectiveness~~future. ofAs ~~our~~a ~~strategic~~result, ~~initiatives~~the inCompany’s ~~global~~judgments ~~distribution~~ and ~~exhibition.~~

Management’s judgments regarding expected credit losses are based on the facts available to management at the time that the Condensed 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 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

Interest Expense and Interest Income

For the three months ended June 30, 2025, interest expense was $1.9 million, representing an decrease of $0.4 million, or 16% when compared to interest expense of $2.3 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period. For the three months ended June 30, 2025 and 2023, interest income was $1.1 million and $0.6 million, respectively.

Income Taxes

For the three months ended June 30, 2025, the Company recorded an income tax expense of $1.2 million (2024 — tax benefit of $4.0 million). The Company’s effective tax rate of 8.9% for the three months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

During the three months ended June 30, 2024, the Company completed an internal asset sale to more closely align its intellectual property ownership with its operations. In order to effect this internal asset sale, transactions between entities within the group resulted in capital gains for tax purposes. The tax expense related to the capital gain was partially offset by the reversal of the valuation allowance. Net deferred tax assets were also recorded on the transaction, resulting in a net tax benefit of $7.7 million.

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associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect. (Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

Interest Expense and Interest Income

For the three months ended September 30, 2025, interest expense was $1.8 million, representing a decrease of $0.4 million, or 18% when compared to interest expense of $2.2 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period. For the three months ended September 30, 2025 and 2024, interest income was $0.6 million for each period.

Income Taxes

For the three months ended September 30, 2025, the Company recorded an income tax expense of $5.2 million (2024 — $2.4 million). The Company’s effective tax rate of 18.7% for the three months ended September 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

Non-Controlling Interests

For the three months ended ~~June~~September 30, 2025, the net income attributable to non-controlling interests of the Company’s subsidiaries was $12.0 million, aan ~~decrease~~increase of $0.5 million, when compared to the same period in 2024, primarily due to ~~lower~~higher ~~revenues~~box ~~recognized~~office ~~from~~performance ~~sales arrangements and renewals~~ in Greater China.

~~Restructuring~~Results of Operations for the Nine Months Ended September 30, 2025 and ~~Other~~2024 ~~Charges~~

For the three months ended June 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges. These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure. Specifically, the Company incurred $0.5 million in connection with the continued implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles. Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

Results of Operations for the Six Months Ended June 30, 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 diluted share amounts, as well as adjusted net income attributable to common shareholders* and adjusted net income attributable to common shareholders per diluted share for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Six Months Ended June 30,
	Nine Months Ended September 30,
	2025				2024
(In thousands of U.S. Dollars, except per diluted share amounts)	Net Income		Per Diluted Share		Net Income		Per Diluted Share
Net income attributable to common shareholders	$	1334,~~582~~239	$	0.2562	$	620,~~857~~753	$	0.1339
Adjusted net income attributable to common shareholders*	$	2148,~~785~~025	$	0.4087	$	1736,~~688~~542	$	0.3368
*Refer to “Non-GAAP Financial Measures” for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.

Revenues and Gross Margin

For the ~~six~~nine months ended ~~June~~September 30, 2025, the Company’s revenues and gross margin increased by $1025.35 million, or 610%, and $1632.02 million, or 1823%, respectively, when compared to same period in 2024, principally due to ~~a higher number of installations and~~ stronger IMAX box office performance driven by a record Chinese New Year, ~~period~~Filmed ~~and~~For ~~the~~IMAX, ~~summer~~and ~~Hollywood~~local ~~box~~language ~~office~~film slate.

The following table presents the Company’s revenue, gross margin, and gross margin percentage by reportable segment for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

	Revenue				Gross Margin				Gross Margin %
(In thousands of U.S. Dollars)	2025		2024		2025		2024		2025		2024
Content Solutions	$	68113,~~214~~046	$	6999,~~089~~218	$	4577,~~985~~908	$	3854,~~237~~686	6769	%	55	%
Technology Products and Services	~~106~~166,~~232~~652		94152,~~048~~019		5994,~~264~~084		4981,~~367~~331		56	%	5254	%
Sub-total for reportable segments	~~174~~279,~~446~~698		~~163~~251,~~137~~237		~~105~~171,~~249~~992		87136,~~604~~017		6061	%	54	%
All Other(1)	35,~~905~~307		48,~~947~~299		12,~~529~~057		35,~~212~~818		39	%	6570	%
Total	$	~~178~~285,~~351~~005	$	~~168~~259,~~084~~536	$	~~106~~174,~~778~~049	$	90141,~~816~~835	6061	%	5455	%
(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.

Content Solutions

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For the ~~six~~nine months ended ~~June~~September 30, 2025, Content Solutions segment revenues and gross margin ~~decreased~~increased by $013.98 million, or 114%, and increased by $723.72 million, or 2042%, respectively, when compared to the same period in 2024. The decrease in revenue compared to the prior period is primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels, to Amazon Content in the first half of 2024.

The positive impact of The Blue Angels documentary in 2024 on revenue was mostly offset by higher box office generated across the IMAX network for the six months ended June 30, 2025, when compared to the prior year period. In the ~~six~~nine months ended ~~June~~September 30, 2025, box office generated by IMAX films, ~~including booking fees,~~ totaled $~~579~~946.29 million, a $~~112~~234.18 million, or 2433%, increase versus the prior year comparative period of $~~467~~712.21 million. This growth was primarily driven by the stronger IMAX box office performance of the IMAX Hollywood and local language film slate in 2025. During the ~~six~~nine months ended ~~June~~September 30, 2025, IMAX box office was generated by the exhibition of 5694 films and other content (5491 new films and 23 ~~re-releases~~films originally released in a prior year), including the following Hollywood titles: F1 The Movie ($97 million), Mission: Impossible - The Final Reckoning ($7576 million), ~~Sinners~~Superman ($3957 million), F1 The ~~Movie~~Fantastic Four: First Steps ($3149 million) and ~~Thunderbolts~~Sinners ($3139 million). In addition, in the ~~six~~nine months ended ~~June~~September 30, 2025, local language films exhibited across the Company’s global network generated ~~over~~ $~~222~~343 million in box office, representing 3836% of its ~~global box office~~GBO. The Chinese local language film, Ne Zha 2, became the highest grossing IMAX release of all time in China ($~~166~~167 million~~, including booking fees~~) and contributed to the highest grossing Chinese New Year in the Company’s history. The Japanese local language film, Demon Slayer: Infinity Castle ($72 million) became the highest grossing IMAX release of all time in Japan. In the ~~six~~nine months ended ~~June~~September 30, 2024, IMAX box office revenue was generated by the exhibition of 60104 films (4683 new films and 1421 films originally released in a prior year). These increases in revenue due to higher box office were partially offset by the revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company’s original documentary, The Blue Angels, to Amazon Content recorded in the comparative 2024 period.

In the ~~first~~nine ~~half~~months ofended September 30, 2025, the Company released ~~six~~ movies that were filmed with IMAX proprietary cameras (Filmed For IMAX):, including Sinners, ~~Thunderbolts,~~F1 ~~Final~~The ~~Destination: Bloodlines~~Movie, Mission: Impossible - The Final Reckoning, ~~How~~Superman, Toand ~~Train~~The ~~Your~~Fantastic ~~Dragon~~Four: ~~and~~First ~~F1 The Movie~~Steps. Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for ~~three~~four of these films ~~(Sinners~~, ~~Mission: Impossible - The Final Reckoning and F1 The Movie),~~ IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens. In the nine months ended September 30, 2025, Filmed For IMAX domestic opening weekend indexing was 15.3% compared to 13.6% in the same period of 2024.

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with

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