IMAX (NYSE:IMAX) Posts Quarterly Earnings Results, Beats Estimates By $0.15 EPS

IMAX (NYSE:IMAX) issued its earnings results on Wednesday. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.15, FiscalAI reports. The business had revenue of $125.21 million for the quarter, compared to analyst estimates of $120.30 million. IMAX had a return on equity of 9.91% and a net margin of 10.47%.The business’s quarterly revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the company earned $0.27 EPS.

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

• IMAX posted a record 2025 with $1.28 billion global box office (up 40%), FY revenue of $410 million, adjusted EBITDA of $185 million and raised 2026 targets (projected ~$1.4B box office and mid‑40s EBITDA margin floor).
• The company accelerated network expansion—166 new/upgraded system agreements, 160 installations in 2025, record 118 rest‑of‑world installs and an expanded TAM to ~4,500 zones—while pursuing second‑screen and flagship opportunities.
• Profitability and cash generation improved materially: a record 45% adjusted EBITDA margin, operating cash flow of $127 million, FY free cash flow of $85 million and a conservative balance sheet (net leverage ~0.7x, refreshed credit facility and a low‑cost 0.75% convertible issuance with a capped call).
• Near‑term risks include slate and timing sensitivity (notably China release timing) plus one‑time Q4 charges of ~$22 million (convert repurchase) and a $7 million goodwill impairment, and a higher 2025 tax rate that created a ~$0.16 EPS headwind.

IMAX Stock Performance

IMAX stock traded up $0.84 during midday trading on Friday, hitting $42.61. 655,925 shares of the company’s stock were exchanged, compared to its average volume of 1,143,818. The stock’s fifty day moving average price is $36.32 and its 200-day moving average price is $33.86. The company has a market cap of $2.29 billion, a PE ratio of 0.00, a price-to-earnings-growth ratio of 1.81 and a beta of 0.38. IMAX has a one year low of $20.48 and a one year high of $43.16.

Hedge Funds Weigh In On IMAX

A number of institutional investors have recently bought and sold shares of the business. Orbis Allan Gray Ltd lifted its holdings in IMAX by 31.7% during the 2nd quarter. Orbis Allan Gray Ltd now owns 5,113,033 shares of the company’s stock valued at $142,960,000 after purchasing an additional 1,230,267 shares during the last quarter. Balyasny Asset Management L.P. bought a new stake in shares of IMAX during the second quarter worth approximately $12,568,000. Nuveen LLC lifted its holdings in IMAX by 253.0% during the 4th quarter. Nuveen LLC now owns 507,377 shares of the company’s stock worth $18,753,000 after purchasing an additional 363,658 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of IMAX by 494.6% during the third quarter. BNP Paribas Financial Markets now owns 377,207 shares of the company’s stock worth $12,354,000 after buying an additional 313,763 shares in the last quarter. Finally, Squarepoint Ops LLC grew its stake in shares of IMAX by 177.0% in the second quarter. Squarepoint Ops LLC now owns 446,286 shares of the company’s stock valued at $12,478,000 after acquiring an additional 285,184 shares in the last quarter. Institutional investors and hedge funds own 93.51% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on IMAX. Macquarie Infrastructure upped their price target on IMAX from $39.00 to $44.00 and gave the stock an “outperform” rating in a research note on Thursday, January 15th. Barrington Research reaffirmed an “outperform” rating and issued a $42.00 price objective on shares of IMAX in a research report on Monday, January 26th. B. Riley Financial reaffirmed a “buy” rating on shares of IMAX in a research note on Monday, December 8th. Roth Mkm reissued a “buy” rating and set a $42.00 price objective on shares of IMAX in a report on Monday, December 8th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $47.00 target price on shares of IMAX in a research report on Tuesday. Ten analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $43.00.

IMAX News Summary

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Q4 results beat expectations: IMAX reported $0.58 EPS vs. $0.43 consensus and revenue of $125.2M (up 35% Y/Y), driven by record box office and improved margins — a clear near-term fundamental catalyst. IMAX Q4 earnings MarketBeat
• Positive Sentiment: Strong box-office tailwinds: Successes like ‘Avatar: Fire & Ash’ and continued premium titles pushed IMAX to its best-ever $1.28B global box office in 2025 and management laid out a $1.4B target for 2026, supporting revenue/seat premium prospects. Deadline: Avatar lifts IMAX Q4
• Positive Sentiment: Analyst upgrades and higher targets: JPMorgan raised its price target to $48 and kept an Overweight rating; Benchmark raised its PT to $44 with a Buy — both moves add upward pressure and signal improved sell-side conviction. Benzinga coverage of analyst raises
• Positive Sentiment: Broader premium-content expansion and distribution initiatives (IMAX-exclusive windows, live sports/event programming, specialty re-releases like Studio Ghibli) diversify revenue and increase utilization of IMAX screens. Seeking Alpha: IMAX outlines $1.4B target
• Neutral Sentiment: Sell-side support continues: Rosenblatt reiterated a Buy rating, which reinforces analyst interest but doesn’t materially change consensus. AmericanBankingNews: Rosenblatt reiterates Buy
• Negative Sentiment: Territory and timing limitations for Marvel tentpoles: Several outlets report ‘Avengers: Doomsday’ will not open in IMAX in the U.S. on opening weekend (though it may play IMAX in other markets). That reduces potential incremental IMAX box-office capture for a big franchise in the key U.S. market and is a headwind to near-term premium screen revenue. Gizmodo: Avengers not in IMAX opening weekend
• Positive Sentiment: Competitively favorable exclusivity wins: ‘Dune 3’ secured IMAX-exclusive opening-weekend windows in many markets, demonstrating the value studios place on IMAX formats and helping drive short-term ticketing and premium pricing. Yahoo: Dune 3 IMAX exclusivity

About IMAX

IMAX Corporation is a global leader in immersive entertainment technologies, specializing in the design, manufacture and distribution of high-resolution cameras, projectors, and proprietary software solutions that enhance both film production and theatrical exhibition. The company licenses its premium large-format system to theatre owners and filmmakers around the world, enabling audiences to experience movies with greater clarity, scale and sound fidelity. IMAX also offers turnkey theatre development services, assisting cinema operators with auditorium design, installation and custom branding to optimize the customer experience.

Founded in 1967 and headquartered in Mississauga, Ontario, IMAX has built a reputation for pioneering film-format innovations, including its patented dual 15-perforation, 70-millimeter projection system.