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what it is
IMAX sells and leases premium theater systems and content across 1,807 screens in 90 countries.
how it gets paid
Last year Imax made $410M in revenue. Technology Products and Services was the main engine at $250M, or 61% of sales.
why it's growing
Revenue grew 16.5% last year. The figure was more than 40% higher than the 2024 tally and also surpassed the pre-pandemic record achieved in 2019.
what just happened
IMAX's latest quarter printed $0.62 EPS on $285M of revenue, and that beat the $0.49 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
25.3x trailing p/e — priced about right
15.0% return on capital — nothing to write home about
xvary composite: 54/100 — below average
What they do
IMAX sells and leases premium theater systems and content across 1,807 screens in 90 countries.
IMAX has 1,807 systems in 90 countries. Leaving means ripping out a premium screen, not changing an app. Your customer is already buying the bigger picture, and 76% of 2024 sales came from outside the U.S. and Canada.
How they make money
$410M
annual revenue · their business grew +16.5% last year
Technology Products and Services
$250M
Content Solutions
$144M
All Other
$16M
The products that matter
premium theater systems and format licensing
Theater Systems
$410M revenue · entire business
this is the whole revenue base. The good news is it grew 16.5% last year. The less-good news is that one line carries nearly all of the investment case.
100% of revenue
Key numbers
+26%
upside
VL's $43 target sits 26% above the $34.09 price. That is the whole case for owning it now.
20.5%
op margin
IMAX keeps 20.5% of sales after running the business. That is a real profit cushion, not a movie poster.
61.1%
gross margin
The company keeps 61.1 cents of each revenue dollar before overhead. That is why a bigger screen can still make boring money.
1,807
systems
The installed base is 1,807 systems. That is 1,807 reasons theaters already bought in.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $257M (13% of capital)
- net profit margin 20.7% — keeps 21 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IMAX 3 years ago → it's now worth $20,690.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
IMAX's latest quarter printed $0.62 EPS on $285M of revenue, and that beat the $0.49 estimate.
Revenue was up 167% vs. prior year, and gross margin held at 61.1%. That is the kind of quarter that makes a premium-screen company look less like a niche and more like a toll booth.
$285M
revenue
$0.62
eps
61.1%
gross margin
EPS beat
The key number was $0.62 EPS versus the $0.49 estimate. That 18.37% beat shows the business is still throwing off more profit than Wall Street expected.
-
imax corp. likely closed out 2025 with good results.
-
we think fourth-quarter revenues increased nearly 30% compared to the previous-year tally.
-
in early january, management issued a press release stating that the company reported a record $1.28 billion in global gross box office receipts for 2025.
-
the figure was more than 40% higher than the 2024 tally and also surpassed the pre-pandemic record achieved in 2019.
-
imax posted record results for the 5-day thanksgiving stretch, led by zootopia 2 and wicked: for good.the company also benefited from an outstanding performance from avatar: fire and ash, which delivered the company’s biggest opening weekend of 2025 and fifth biggest debut in imax history.
source: company earnings report, 2026
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What could go wrong
the core risk is blockbuster dependence inside a business that only did $410M in revenue. You are not buying a diversified media company here. You are buying a premium format that looks smartest when the slate is strong.
med
blockbuster concentration
imax monetizes premium moviegoing, which means a handful of tentpole releases can decide whether a quarter looks great or forgettable.
the revenue table here has one line for a reason. If the slate weakens, pressure hits nearly all of the $410M revenue base at once.
med
record box office might not fully convert
$1.28B in global gross box office is the headline. Your question is whether that keeps turning into company revenue and earnings at the same pace.
if revenue stalls below the $440M FY2026 estimate while box office headlines stay strong, the market will start questioning how much of the upside IMAX actually keeps.
med
installation and customer timing
the company sells and leases physical systems, so delays in installations, theater openings, or customer spending can push results across quarters.
that matters more when annual revenue is $410M and long-term debt is still $257M. Small shifts in timing look bigger in a business this size.
med
valuation versus predictability
the stock trades at 25.3x trailing earnings while earnings predictability sits at 20 / 100. That's an awkward pairing.
if the film slate slips and estimates soften, you are left with a premium multiple on a business the market already admits is hard to forecast.
record demand is helping right now. The catch is that demand concentration cuts both ways. If the next slate disappoints, there is no large second business to cushion the miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next report versus the $1.65 EPS setup
the street expects FY2026 EPS of $1.65. If quarterly results stop supporting that path, the stock loses the easy growth narrative.
trend
whether record box office keeps turning into company revenue
$1.28B in global gross box office is the attention grabber. The quieter test is whether revenue keeps moving from $410M toward the $440M estimate.
risk
the 2026 tentpole slate
this business is still tied to a few major releases. A weaker calendar would show up quickly in sentiment and probably in the numbers.
metric
institutional flow after three straight selling quarters
96 buyers versus 101 sellers is not a collapse. It is also not support. If that flips, the tape may start matching the box office story.
Analyst rankings
short-term outlook
average
momentum score 3 — the stock is moving with the broader market. in human-speak, analysts are not giving you a clear short-term edge either way.
risk profile
average
stability score 3 — middle of the pack on paper. The business itself is still more cyclical than that label sounds.
chart momentum
top 5%
technical score 1 — top tier. The chart has been stronger than most stocks recently, which is what record box office optimism tends to look like.
earnings predictability
20 / 100
earnings predictability is low. Translation: the film slate still has more influence on quarterly numbers than most investors prefer.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 96 buyers vs. 101 sellers in 3q2025. total institutional holdings: 50.0M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$26
$59
$34
current price
$43
target midpoint · +26% from current · 3-5yr high: $55 (+60% · 13% ann'l return)
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