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1. Company Snapshot

1.a. Company Description

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide.It offers cinematic solution through proprietary software, theater architecture, intellectual property, and specialized equipment.The company offers IMAX Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX theater systems to exhibitor customers through sales, leases, and joint revenue sharing arrangements; and digital projection systems.


It also provides preventative and emergency maintenance services to IMAX network; distributes large-format documentary films; film post-production and quality control services for large-format films, and digital post-production services; owns and operates IMAX theaters; and rents 2D and 3D large-format film and digital cameras, as well as offers production advice and technical assistance services to documentary and Hollywood filmmakers.The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions.It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, IMAX Enhanced, IMAX nXos, and Films To The Fullest.


As of December 31, 2021, the company had a network of 1,683 IMAX theater systems comprising 1,599 commercial multiplexes, 12 commercial destinations, and 72 institutional facilities operating in 87 countries and territories.IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

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1.b. Last Insights on IMAX

IMAX Corporation's recent performance was driven by record third-quarter financial results, with revenue of $106.7 million, up 17% year-over-year. The company's global box office performance and content margins were key growth drivers. A "trifecta" of upcoming filmed-for-IMAX titles and a global footprint are expected to drive future growth. Additionally, the company raised $250 million through a convertible senior notes offering, demonstrating investor confidence. International revenue trends are also shifting, with potential for growth. IMAX's strong financial position and growth prospects have earned it a premium valuation.

1.c. Company Highlights

2. IMAX Corporation's Q3 2025 Earnings: A Strong Performance

IMAX Corporation's third-quarter 2025 earnings exceeded expectations, with revenue reaching $106.7 million, a 30% increase year-over-year. The company's gross margin, net income, adjusted EBITDA, and earnings per share all saw significant growth. Adjusted EPS was $0.47, up $0.12 year-over-year, driven entirely by strong profit growth. The company's adjusted EBITDA margin reached 48.6%, up 630 basis points year-over-year, and cash from operations of $67.5 million set a new quarterly record, up more than 90% year-over-year.

Publication Date: Nov -20

📋 Highlights
  • Revenue Surge:: Q3 2025 revenue hit $106.7M, a 30% YoY increase, with record cash flow from operations of $67.5M, up 90% YoY.
  • Market Share Growth:: Global box office revenue rose 50% YoY to $368M, driving a 49% YoY market share increase to 4.2%, a new IMAX high.
  • Installation Momentum:: 142 new/upgraded IMAX systems signed by September 2025, exceeding 2024’s full-year total and on track to meet 2025 guidance of 150–160 installations.
  • Margin Expansion:: Adjusted EBITDA margin surged 630 bps to 48.6%, with year-to-date margin at 44.9%, surpassing full-year guidance (low 40s).

Revenue Growth Drivers

The company's diversified portfolio across Hollywood blockbusters, local language titles, and alternative content drove growth. The performance was increasingly driven by the full breadth of the content strategy, with a big film for IMAX Hollywood hit in F1, a powerhouse Japanese light language release in Demon Slayer, and successful music events from Prince and The Grateful Dead. As Richard Gelfond noted, "the model is working, and operating leverage is coming to fruition, with the company gaining market share and meeting or exceeding expectations across its guidance measures of IMAX box office, installations, and adjusted EBITDA margin."

Operational Highlights

IMAX's network business has seen strong growth, with signings to date surpassing the number of signings for the full year 2024. The company expects to complete 60% of the installations it has targeted for the full year 2025. The level of activity in the sales pipeline is also strong, with agreements for new locations in Singapore and priority markets France and Germany.

Valuation Metrics

With a P/E Ratio of 49.56 and an EV/EBITDA of 19.67, the market is pricing in significant growth expectations for IMAX Corporation. The company's ROE (%) of 12.47 and ROIC (%) of 7.56 indicate a relatively efficient use of capital. Analysts estimate next year's revenue growth at 6.2%, which may not be enough to justify the current valuation multiples.

Outlook

IMAX has a backlog of nearly 500 systems and an addressable market less than 50% penetrated, offering potential for additional growth. The company has an increasingly clear view into the film lineup for 2026 and beyond, including significant mega-title catalysts on the horizon. With a strong slate of content, including The Mandalorian and Grogu, The Odyssey, and Dune: Part Three, IMAX is well-positioned for continued success.

3. NewsRoom

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Dow Jones Today: Stock Indexes Close Lower to Begin December Trading; Big Tech, Crypto-Tied Shares Drop Amid Risk-Off Sentiment

Dec -02

Source: investopedia.com

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IMAX Achieves Record Thanksgiving Box Office with Family Films

Dec -01

Source: gurufocus.com

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IMAX Feasts at the Global Box Office with Record $40.8 Million Thanksgiving Weekend

Dec -01

Source: businesswire.com

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IMAX (NYSE:IMAX) Hits New 12-Month High – Should You Buy?

Nov -30

Source: defenseworld.net

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Reading Cinemas at Valley Plaza Mall Transformation Revealed

Nov -25

Source: globenewswire.com

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‘Wicked: For Good' wins box office with $150 million domestic opening

Nov -24

Source: youtube.com

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IMAX Corporation $IMAX Position Increased by Bank of New York Mellon Corp

Nov -21

Source: defenseworld.net

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IMAX to Host Investor Day on December 4, 2025

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Technology Products and Services

Expected Growth: 5%

IMAX Corporation's Technology Products and Services segment growth is driven by increasing demand for premium cinematic experiences, expansion into new markets, and strategic partnerships. The company's innovative solutions, such as laser projection and immersive audio, enhance the movie-going experience, attracting more customers and driving revenue growth.

Content Solutions

Expected Growth: 4%

IMAX Corporation's Content Solutions segment growth is driven by increasing demand for premium cinematic experiences, expansion into new markets, strategic partnerships with major studios, and innovative technologies such as laser projection and virtual reality. Additionally, the rise of streaming services and the need for high-quality content creation also contribute to the segment's growth.

All Other

Expected Growth: 3%

IMAX's 'All Other' segment growth is driven by increasing demand for its virtual reality (VR) and augmented reality (AR) experiences, expansion of its location-based entertainment (LBE) business, and growth in its film distribution and post-production services. Additionally, strategic partnerships and investments in new technologies are contributing to the segment's growth.

7. Detailed Products

IMAX Cameras

High-resolution cameras designed to capture stunning images and footage for film and television productions.

IMAX Projection Systems

High-quality digital projection systems designed to deliver immersive cinematic experiences.

IMAX Laser Projection

Advanced laser projection technology offering enhanced brightness, color, and contrast for an unparalleled cinematic experience.

IMAX Sound Systems

Custom-designed sound systems engineered to deliver powerful, immersive audio experiences.

IMAX Theatre Design

Custom-designed theaters optimized for the IMAX experience, featuring unique seating, sound, and projection systems.

IMAX Film Distribution

Distribution of IMAX-format films to theaters worldwide, offering a unique cinematic experience.

IMAX Post-Production Services

Expert post-production services, including sound design, mixing, and color grading, for film and television productions.

8. IMAX Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

IMAX Corporation has a low threat of substitutes due to its unique and patented technology, which provides a premium cinematic experience. The high cost of switching to alternative formats, such as 3D or standard screens, also reduces the likelihood of substitution.

Bargaining Power Of Customers

IMAX Corporation has a medium bargaining power of customers due to the presence of a few large exhibitor partners, such as AMC Theatres and Regal Cinemas. While these partners have some negotiating power, IMAX's unique technology and premium brand image limit their bargaining power.

Bargaining Power Of Suppliers

IMAX Corporation has a low bargaining power of suppliers due to its dominant position in the premium cinematic experience market. The company has a strong negotiating position with its suppliers, which are primarily manufacturers of projection and sound equipment.

Threat Of New Entrants

IMAX Corporation has a low threat of new entrants due to the high barriers to entry in the premium cinematic experience market. The company's patented technology, high capital expenditures, and established partnerships with exhibitors create significant entry barriers for new entrants.

Intensity Of Rivalry

IMAX Corporation operates in a highly competitive market with several established players, including Dolby Laboratories and Cinemark. The company faces intense competition for market share, particularly in the premium cinematic experience segment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.31%
Debt Cost 3.95%
Equity Weight 51.69%
Equity Cost 10.07%
WACC 7.11%
Leverage 93.47%

11. Quality Control: IMAX Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IMAX

A-Score: 4.7/10

Value: 1.4

Growth: 5.1

Quality: 6.2

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

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Sphere Entertainment

A-Score: 4.3/10

Value: 7.7

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

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Madison Square Garden Entertainment

A-Score: 4.2/10

Value: 3.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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LiveOne

A-Score: 3.8/10

Value: 9.6

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

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Reservoir Media

A-Score: 3.7/10

Value: 4.5

Growth: 2.6

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

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Reading International

A-Score: 3.6/10

Value: 8.2

Growth: 2.7

Quality: 3.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.99$

Current Price

34.99$

Potential

-0.00%

Expected Cash-Flows