Imax Corp (NYSE:IMAX) posted second-quarter earnings that outperformed analyst expectations, fueled by record-breaking North American box office returns and robust growth in its global network.
The company, renowned for its premium cinema technology, reported adjusted earnings per share of $0.26 for the quarter ended June 30, beating the $0.21 consensus estimate. Revenue reached $91.7 million, slightly below the predicted $91.84 million but up 3% compared to $89 million in the same quarter last year. Following the announcement, Imax shares rose modestly by 0.3%.
Imax benefited from a 41% year-over-year surge in gross box office revenue to $281.1 million, capturing roughly 3.6% of the worldwide box office market despite occupying less than 1% of total screens. This reflects a 19% growth in market share from the prior year.
“IMAX delivered outstanding financial results in the Second Quarter as the key drivers of our business worked in concert, with strong network growth worldwide, record box office in North America, and impressive market share gains driven by more releases filmed with our technology than ever,” said Rich Gelfond, CEO of IMAX.
The Technology Products and Services division saw revenues rise 9% year-over-year to $55.6 million, while the Content Solutions segment’s revenue dipped 3% to $34 million. However, Content Solutions’ gross margin jumped sharply from 46% to 66% year-over-year.
During the quarter, Imax installed 36 new systems, marking a 50% increase from 24 systems installed in the previous year’s quarter. Its commercial footprint expanded to 1,750 locations globally, with an order backlog of 501 systems.
“We remain on track to deliver a record $1.2 billion in global box office in 2025,” Gelfond added. “Our market share on this summer slate has reached all-time highs thanks to an unprecedented run of eight Filmed for IMAX releases shot with our cameras, for our screens.”
Total adjusted EBITDA climbed 26% year-over-year to $39.1 million, with the adjusted EBITDA margin widening to 42.6% from 34.8% in the same period last year.
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