IMAX NYSE: IMAX reported stronger second-quarter 2026 results and said early performance for Christopher Nolan's The Odyssey is reinforcing demand for its premium theater format, film technology and global exhibition network.
On the company’s earnings call, Chief Executive Officer Rich Gelfond said IMAX “delivered strong results, beating consensus across virtually every metric,” including revenue of $103 million, up 12% year over year, adjusted earnings per share of $0.43, up 65%, and adjusted EBITDA of $48 million at an almost 47% margin.
Chief Financial Officer Natasha Fernandes said the quarter demonstrated “the strength and diversity” of IMAX’s operating model. She said revenue rose from $92 million in the prior-year quarter, while gross margin increased to $63 million, or 61%, reflecting a 270-basis-point improvement. Adjusted EBITDA margin rose to 46.6% from 42.6% a year earlier.
IMAX Highlights Early Box Office Strength From The Odyssey
Gelfond spent much of the call discussing The Odyssey, which he described as “the purest and most complete expression yet of the power of IMAX.” He said the film is the first feature-length release shot entirely with IMAX film cameras and compared its potential industry impact to Avatar.
According to Gelfond, IMAX generated $52 million in global opening-weekend box office from The Odyssey, which he said was the company’s biggest global opening weekend on a like-for-like basis because the film had not yet opened in China, Japan or South Korea. IMAX represented 20% of the film’s worldwide debut on less than 1% of total screens, he said.
Gelfond said domestic IMAX occupancy reached 75% during the opening weekend. He also said the film produced IMAX’s highest-grossing Monday, with $11 million, followed by its biggest Tuesday at $10.6 million. In the question-and-answer session, he said Wednesday results were also around the same level and that presales for the second weekend were comparable to “a really good first weekend number.”
The company said its 41 IMAX 70mm film locations generated $6.3 million during the opening weekend, averaging $153,000 per screen. Gelfond said some 70mm locations were selling out showtimes into the seventh or eighth week of the film’s run.
Company Points to Second-Half Slate and 2027 Visibility
Gelfond said IMAX remains on track to deliver a record $1.4 billion in global box office for the full year. He framed The Odyssey and Dune: Part Three as two major second-half releases that were filmed with IMAX cameras and will use IMAX 70mm presentations.
The CEO also cited several upcoming releases, including Spider-Man: Brand New Day, which he said will play in China, Japan and South Korea; Digger from Tom Cruise and Alejandro González Iñárritu; Godzilla Minus Zero; Ramayana: Part 1; and an exclusive theatrical release with Netflix directed by David Fincher and starring Brad Pitt.
Looking into 2027, Gelfond pointed to Greta Gerwig’s Narnia, which he said opens exclusively in IMAX before its wider global release, as well as The Thomas Crown Affair, Star Wars: Starfighter and sequels to Superman and Minecraft. He said IMAX expects at least four films in 2027, including new releases and rereleases, to be presented in IMAX 70mm film.
Installations, Signings and Network Growth Remain in Focus
Fernandes said IMAX installed 38 systems in the second quarter, compared with 36 in the prior-year period, marking the company’s highest second-quarter installation count in a decade. Of those installations, 20 were joint revenue-sharing systems and 18 were sales. From a network-growth perspective, 21 were upgrades and 17 were new locations.
She said more than half of new locations were in international markets, including Japan, Spain, Germany, Belgium, Malaysia and France. IMAX also signed agreements for 36 systems during the quarter, up from 28 a year ago, with 80% tied to new locations. Notable deals included a 10-system agreement with Hoyts in Australia and New Zealand and a five-system agreement with Georgia Theatre in the U.S.
In response to an analyst question about 70mm projection systems, Gelfond said IMAX could add more but described the opportunity as finite because of the economics. He said theaters need the right box size, aspect ratio, projection booth and logistics, while film prints are expensive. “You just can’t say, ‘Why don’t you build hundreds of them?’ because there aren’t hundreds of places where it would work,” he said.
Segment Results and Balance Sheet
Fernandes said content solutions revenue grew 2% to $35 million, driven by growth in international markets excluding China and the breakout title Michael. The segment delivered $22 million in gross profit, with a gross margin of 63%.
Technology products and services revenue rose 16% year over year to $65 million, driven by higher system installations, renewals and rental revenue. Gross profit margin in the segment increased to 60% from 54%, which Fernandes attributed to a mix shift toward higher-margin revenue streams and the benefit of box office above the level where incremental profitability begins to increase.
IMAX generated $36 million in cash flow from operations during the first half of 2026, compared with $30 million a year earlier. Fernandes said first-half operating cash flow included $10 million of incentive lease payments to exhibitors, reflecting the company’s decision to invest in network expansion and upgrades through joint revenue-sharing arrangements.
The company repurchased $13.7 million of shares during the second quarter. As of June 30, IMAX held $160 million in cash and $292 million in debt, with net leverage of 0.7 times, Fernandes said.
Management Discusses Merchandising, China and Capital Allocation
Gelfond said IMAX views merchandising as a “largely untapped opportunity.” He cited the company’s first popcorn bucket, modeled after the IMAX 70mm camera used to film The Odyssey, saying the first online release sold out in under two hours, the second in seven minutes and the China release in 63 seconds. IMAX has sold more than 10,000 units through its own channels, he said.
Asked about China, Gelfond said the first half of the year was disappointing but that box office had improved in recent weeks. He said presales for Spider-Man in China were strong and that the delayed China release of The Odyssey could benefit from momentum in other markets.
Fernandes said IMAX was not changing its full-year guidance and would continue using cash to invest in network growth. She said the company may also repurchase shares when it has excess cash or believes the stock is undervalued.
About IMAX (NYSE: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.
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