IMAX: When the Experience Is the Product

IMAX can prosper without a broad return to traditional moviegoing because audiences, filmmakers and cinema operators increasingly value its differentiated premium experience.

• The pandemic strengthened home viewing, but Pembroke argues that event films remain capable of attracting audiences to theatres when the experience is larger, immersive and shared.
• In the third quarter of 2026, The Odyssey generated $485 million through IMAX by early September, equal to 30% of its worldwide box office, after IMAX captured 20% of its global opening-weekend box office.
• On several filmed-for-IMAX releases, the format generated roughly one fifth or more of domestic opening-weekend box office despite representing only about 1% of available screens.
• Local-language films produced almost one third of IMAX’s global box office in 2025, while IMAX systems were installed in fewer than half of the locations the company considers commercially viable.
• IMAX installed 160 systems in 2025, including 98 at new locations, and expected 160 to 175 further installations in 2026 against an installed base of approximately 1,850 systems; revenue rose 16% in 2025 and operating cash flow grew significantly faster.

Takeaway: The investment case rests on IMAX winning a larger share of culturally important films, expanding its network and converting that position into durable free cash flow, but investors must now weigh those prospects against the much higher expectations reflected in the share price.