IMAX (NYSE:IMAX) reported record third-quarter 2026 revenue and adjusted earnings as Christopher Nolan’s The Odyssey drove the company’s highest-grossing quarter at the global box office. Management said it expects to significantly exceed its full-year box office guidance and achieve a higher adjusted profit margin than previously forecast.
Revenue rose 64% from a year earlier to $175 million, while adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, climbed to $121 million from $52 million. The adjusted EBITDA margin reached 69%, compared with 48.6% a year earlier.
Global IMAX box office totaled $712 million during the quarter, nearly twice the company’s previous quarterly high, Chief Executive Officer Richard Gelfond said. The Odyssey generated more than $550 million in IMAX box office worldwide, making it the company’s highest-grossing release ever.
Tax benefit boosted earnings
Adjusted net income rose to $128 million, or $2.21 per share, from $26 million, or $0.47 per share, a year earlier. The latest result included a $36.7 million tax benefit from the release of a valuation allowance on deferred tax assets.
Excluding that benefit, adjusted net income would have been $91.3 million, or $1.58 per share, Chief Financial Officer Natasha Fernandes said. She said the company expects an effective tax rate of approximately 27%, subject to the geographic mix of earnings and other discrete items.
Fernandes attributed the quarter’s profitability to the operating leverage in IMAX’s model. She said incremental box office above $250 million in a quarter can flow through at a margin of approximately 85%, with even stronger incremental returns when individual titles exceed roughly $100 million.
Content Solutions revenue rose 110% to $94 million, while Technology Products and Services revenue increased 28% to $77 million. The technology segment benefited from higher box office-related joint revenue-sharing rental revenue and system contract renewals, Fernandes said.
Full-year outlook and theater expansion
Gelfond said IMAX expects to significantly exceed its prior guidance of $1.4 billion in global box office for 2026. Fernandes said the company is positioned to achieve an adjusted EBITDA margin of approximately 50% for the year, above its earlier guidance in the mid-40% range.
IMAX continues to expect 160 to 175 system installations in 2026. It installed 32 systems during the third quarter, down from 38 a year earlier, as exhibitors prioritized keeping auditoriums open for The Odyssey and Spider-Man: Brand New Day, Fernandes said. Through the date of the call, 125 systems had either been installed or were in the process of installation.
The company had signed agreements for 105 systems year to date, Gelfond said, with 65% at new locations. He cited discussions covering a potential 150 new and upgraded locations worldwide. Fernandes said signings spanned 19 countries and territories.
Asked whether installations could accelerate, Gelfond said future agreements could have shorter turnaround times, but permits and construction requirements made it difficult to materially change the pace in 2026 or 2027.
IMAX is also exploring smaller ultra-premium auditoriums and working toward adding 10 to 15 locations capable of showing IMAX 70mm film. Gelfond said the company is examining whether it can split existing 3D film projectors into separate projectors, but is still assessing timing, costs and pricing.
Upcoming releases and pricing opportunity
Gelfond said Dune: Part Three had generated more than $30 million in IMAX presales for its first month of play, making it the company’s second-highest presale title behind The Odyssey. He said the demand suggests exhibitors may have room to adopt more dynamic pricing, although theater operators set ticket prices.
IMAX plans to be the exclusive theatrical home for Netflix’s The Further Mis-Adventures of Cliff Booth during its two-week opening period, with the release planned across more than 550 IMAX locations worldwide. Gelfond said IMAX and Netflix gave exhibitors the option of whether to show the film because it was added to the schedule relatively late and The Hunger Games was already due to open shortly beforehand.
Gelfond also pointed to Avengers: Doomsday and The Wandering Earth 3 as important upcoming releases in China. He said IMAX’s China business had a weak first half but its strongest summer on record. The company expects to provide 2027 box office guidance early next year, after assessing the performance of upcoming releases and the developing film slate.
Cash flow and new opportunities
Operating cash flow for the first nine months rose to $122 million from $98 million a year earlier. IMAX ended September with $208 million in cash and $250 million in convertible debt, Fernandes said.
Management said it is using its balance sheet to support network growth, including through joint revenue-sharing arrangements and exhibitor incentives. Gelfond also highlighted merchandise and technology licensing opportunities, including an agreement to certify next year’s Meta VR Glasses as an IMAX Enhanced device. He said it was too early to quantify the potential contribution from those initiatives.
About IMAX (NYSE:IMAX)
IMAX Corporation (NYSE: IMAX) is a global entertainment technology company that specializes in premium large-format cinema experiences. The company designs and supplies specialized theater systems that combine large screens, high-resolution projection, advanced sound, and immersive theater design to present feature films, documentaries, live events, and other content.
IMAX supports its theater partners with projection and sound equipment, theater design and installation services, and technology and maintenance support.
