10-Q · April 30, 2026
IMAX Corporation reported Q1 2026 results with revenue of $81.4 million, a modest decline from $86.7 million in Q1 2025, while diluted EPS rose to $0.17 compared to $0.04 in the prior year. Operating and gross margins…
Earnings analysis · 10-Q
IMAX earnings analysis
Filed July 23, 2026 · Our reading of the company's report
The latest report
IMAX delivered a strong Q2 top-line and margin recovery: revenue increased 12% year over year to $102.8 million, gross margin expanded 3 percentage points to 61%, and GAAP EPS rose to $0.27. Technology Products and…
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IMAX delivered a strong Q2 top-line and margin recovery: revenue increased 12% year over year to $102.8 million, gross margin expanded 3 percentage points to 61%, and GAAP EPS rose to $0.27. Technology Products and Services was the primary driver, whereas Content Solutions margin declined on content mix and marketing spending. Liquidity improved, with first-half operating cash flow of $36.0 million and cash of $159.9 million, but China-related credit reserves, a lower 421-system backlog, and conflict-related disruption across international theaters remain material offsets.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.27
- Gross margin
- 61.0%
What stood out
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Revenue growth and gross-margin expansion
Q2 revenue was $102.842 million, up $11.158 million (12%) year over year from $91.684 million and up approximately $21.8 million from $81 million in Q1 2026. Gross margin rose to $62.896 million from $53.602 million, with gross-margin rate improving to 61% from 58%.
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EPS improved sequentially and year over year
GAAP diluted EPS increased to $0.27 from $0.20 in Q2 2025 and $0.07 in Q1 2026. Adjusted diluted EPS rose to $0.43 from $0.26 year over year.
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Technology Products led Q2 growth
Technology Products and Services revenue grew 16% to $64.809 million and gross margin increased 29% to $39.017 million. Segment margin expanded to 60% from 54%, supported by higher variable-consideration estimates and $1.9 million of arrangement amendments, renewals and other adjustments.
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Cash generation and liquidity strengthened
Operating cash flow for the first six months increased to $36.014 million from $30.181 million, while cash and equivalents rose to $159.9 million at June 30 from $151.2 million at December 31, 2025. The company also had $334.0 million of unused capacity under its primary Credit Facility.
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Network and installation base continued to grow
The global network reached 1,876 systems in 91 countries and territories, versus 1,821 systems in 89 countries a year earlier. Q2 installations increased to 38 from 36, and Q2 sales/sales-type lease installations generated $18.556 million of recognized revenue versus $13.084 million.
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IMAX Enhanced expansion aided ancillary growth
All Other revenue increased to $3.347 million from $2.080 million, while gross margin nearly doubled to $1.968 million from $0.993 million. Management attributed the improvement primarily to IMAX Enhanced automotive-device offerings with Goer Dynamics and higher merchandise sales.
What to watch
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Content profitability weakened despite Q2 sales growth
Content Solutions revenue grew only 2% to $34.686 million, while segment gross margin fell 2% to $21.911 million and margin contracted to 63% from 66%. Management cited box-office mix, marketing spend and reduced box-office outperformance; first-half IMAX global box office declined 6% to $544.5 million.
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China backlog and customer-credit pressure
Backlog fell to 421 systems at June 30, 2026 from 501 a year earlier; Greater China backlog changes included cancellation of 17 system locations. In addition, the company recorded $1.5 million of Q2 credit-loss expense, versus a $0.2 million credit-loss reversal a year earlier, due to weaker credit quality at specific China exhibitors.
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Updated geopolitical exposure risk
The updated international risk factor notes continued suspension across 54 theaters in the Russia-Ukraine affected region, while 3 theaters in Israel and 1 in Lebanon were closed or operating at limited capacity due to the Iran war. International markets account for 73% of backlog installations and the network spans 91 countries.
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Impairment and tax-estimate uncertainty
Restructuring charges and other impairments increased to $2.3 million from $0.8 million, including a $2.0 million impairment of an individual documentary-film asset after lower estimated future revenue and monetization assumptions. The company also flagged a possible future Canadian deferred-tax valuation-allowance release; the allowance was $55.5 million at December 31, 2025, but realization was not yet supported at June 30.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS outlook. Management announced 32 additional films and content experiences scheduled for the remainder of 2026 and expects to announce additional local-language films and IMAX events; it expects sufficient capital and liquidity for anticipated needs over the next 12 months.
Earlier filings 1
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