Q4 2025 IMAX Corp Earnings Call

February 25, 2026

Speaker #1: Good day, and thank you for standing by. Welcome to IMAX's fourth-quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode.

Operator: Good day, and thank you for standing by. Welcome to IMAX's Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised, today's conference is being recorded. I would like to hand the conference over to speaker today, Jennifer Horsley. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to IMAX's Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised, today's conference is being recorded. I would like to hand the conference over to speaker today, Jennifer Horsley. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone.

Speaker #1: We will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded.

Speaker #1: I would like to end the conference over to speaker today, Jennifer Horsley. Please go ahead.

Speaker #2: Good afternoon, and thank you for joining us for IMAX's fourth-quarter 2025 earnings conference call. On the call today to review the financial results are Rich Gelfond, Chief Executive Officer, and Natasha Fernandes, our Chief Financial Officer.

Jennifer Horsley: Good afternoon, and thank you for joining us for IMAX's Q4 2025 Earnings Conference Call. On the call today to review the financial results are Rich Gelfond, Chief Executive Officer, and Natasha Fernandes, our Chief Financial Officer. Robert Lister, Chief Legal Officer, is also joining us today. Today's conference call is being webcast in its entirety on our website. A replay of the webcast will be made available shortly after the call. In addition, the full text of our earnings press release and the slide presentation have been posted on the Investor Relations section of our site. Our historical Excel model is posted to the website as well. I would like to remind you of the following information regarding forward-looking statements. Today's call, as well as the accompanying slide deck, may include statements that are forward-looking and that pertain to future results or outcomes.

Speaker #2: Rob Lister, Chief Legal Officer, is also joining us today. Today's conference call is being webcast in its entirety on our website. A replay of the webcast will be made available shortly after the call.

Speaker #2: In addition, the full text of our earnings press release and the slide presentation have been posted on the Investor Relations section of our site.

Speaker #2: Our historical Excel model is posted to the website as well. I would like to remind you of the following information regarding forward-looking statements. Today's call, as well as the accompanying slide deck, may include statements that are forward-looking and that pertain to future results or outcomes.

Speaker #2: These forward-looking statements are subject to risks and uncertainties that could cause our actual future results to not occur or occurrences to differ. Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes.

Jennifer Horsley: These forward-looking statements are subject to risks and uncertainties that could cause our actual future results to not occur or occurrences to differ. Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information, future events, or otherwise. During today's call, references may be made to certain non-GAAP financial measures. Discussion of management's use of these measures and the definition of these measures, as well as a reconciliation to non-GAAP financial measures, are contained in this afternoon's press release and our earnings materials, which are available on the investor relations page of our website at imax.com.

Speaker #2: Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information, future events, or otherwise.

Speaker #2: During today's call, references may be made to certain non-GAAP financial measures. Discussion of management's use of these measures and the definition of these measures, as well as a reconciliation to non-GAAP financial measures, are contained in this afternoon's press release and our earnings materials which are available on the Investor Relations page of our website at IMAX.com.

Speaker #2: With that, let me now turn the call over to Mr. Richard Gelfond. Rich?

Jennifer Horsley: With that, let me now turn the call over to Mr. Richard Gelfond. Rich?

Speaker #3: Thanks, Jennifer. And thanks, everyone, for joining us today. As we review our results for a record-breaking year and look ahead to a very promising 2026, 2025 was a truly transformational year for the company.

Rich Gelfond: Thanks, Jennifer, and thanks everyone for joining us today as we review our results for a record-breaking year and look ahead to a very promising 2026. 2025 was a truly transformational year for the company, in which we firmly established IMAX as a premier global platform for entertainment and events, with a powerful position among out-of-home experiences and a content pipeline that continues to grow richer and more diverse. We finished with a record $1.28 billion in global box office, up 40% year-over-year. We captured our biggest share of the global box office ever, up 700 basis points year-over-year. We achieved our highest grossing year ever for local language films, with $405 million worldwide, with 67 international releases from 14 countries, including two of our top five in Ne Zha 2 and Demon Slayer: Infinity Castle.

Richard Gelfond: Thanks, Jennifer, and thanks everyone for joining us today as we review our results for a record-breaking year and look ahead to a very promising 2026. 2025 was a truly transformational year for the company, in which we firmly established IMAX as a premier global platform for entertainment and events, with a powerful position among out-of-home experiences and a content pipeline that continues to grow richer and more diverse. We finished with a record $1.28 billion in global box office, up 40% year-over-year. We captured our biggest share of the global box office ever, up 700 basis points year-over-year. We achieved our highest grossing year ever for local language films, with $405 million worldwide, with 67 international releases from 14 countries, including two of our top five in Ne Zha 2 and Demon Slayer: Infinity Castle.

Speaker #3: In which we firmly established IMAX as a premier global platform for entertainment and events. With a powerful position among out-of-home experiences and a content pipeline that continues to grow richer and more diverse.

Speaker #3: We finished with a record $1.28 billion in global box office up 40% year over year. We captured our biggest share of the global box office ever, up 700 basis points, year over year.

Speaker #3: We achieved our highest grossing year ever for local language films, with $405 million worldwide, with 67 international releases from 14 countries, including two of our top five in Neja 2 and Demon Slayer Infinity Castle.

Speaker #3: And we drove significant network growth with agreements for 166 new and upgraded IMAX systems, and 160 systems installed worldwide including 8% network growth in the rest of the world.

Rich Gelfond: We drove significant network growth with agreements for 166 new and upgraded IMAX systems and 160 systems installed worldwide, including 8% network growth in the rest of the world. We are an unqualified winner in a complex entertainment landscape. Signs of our impact are everywhere. Studios put IMAX front and center in their marketing campaigns, driving record indexing and enormous media value for our brand. The New York Times, Wall Street Journal, and Los Angeles Times have all published features highlighting our unique success. Our stock is among the best performers in global media and entertainment, up over 44% in 2025. IMAX releases earned 58 Academy Award nominations, including five of the 10 Best Picture nominees.

Richard Gelfond: We drove significant network growth with agreements for 166 new and upgraded IMAX systems and 160 systems installed worldwide, including 8% network growth in the rest of the world. We are an unqualified winner in a complex entertainment landscape. Signs of our impact are everywhere. Studios put IMAX front and center in their marketing campaigns, driving record indexing and enormous media value for our brand. The New York Times, Wall Street Journal, and Los Angeles Times have all published features highlighting our unique success. Our stock is among the best performers in global media and entertainment, up over 44% in 2025. IMAX releases earned 58 Academy Award nominations, including five of the 10 Best Picture nominees.

Speaker #3: We are an unqualified winner in a complex entertainment landscape. Signs of our impact are everywhere. Studios put IMAX front and center in their marketing campaigns, driving record indexing and enormous media value for our brand.

Speaker #3: The New York Times, Wall Street Journal, and Los Angeles Times have all published features highlighting our unique success. Our stock is among the best performers in global media and entertainment, up over 44% in 2025.

Speaker #3: And IMAX releases earned $58 Academy Award nominations including five of the 10 best picture nominees. Every one of Warner Bros.' 30 nominations was for a film that played in IMAX, including Sinners, which was shot with IMAX Film Cameras, and One Battle After Another, which received an IMAX $70 millimeter film run.

Rich Gelfond: Every one of Warner Bros.' 30 nominations was for a film that played in IMAX, including Sinners, which was shot with IMAX film cameras, and One Battle After Another, which received an IMAX 70mm film run. We delivered at least 20% of the domestic opening for Sinners, One Battle After Another, and F1. Our financial results reflect our progress and the strength and incrementality in our model. We beat projections across almost every key financial metrics, setting several company records. We delivered a record $410 million in total revenue in 2025. We achieved double-digit percentage beats on original consensus estimates for adjusted EBITDA and EPS, with $185 million and $1.45, respectively, for the full year. We delivered a 45% EBITDA margin, a record, and our first time breaking 40 since 2019.

Richard Gelfond: Every one of Warner Bros.' 30 nominations was for a film that played in IMAX, including Sinners, which was shot with IMAX film cameras, and One Battle After Another, which received an IMAX 70mm film run. We delivered at least 20% of the domestic opening for Sinners, One Battle After Another, and F1. Our financial results reflect our progress and the strength and incrementality in our model. We beat projections across almost every key financial metrics, setting several company records. We delivered a record $410 million in total revenue in 2025. We achieved double-digit percentage beats on original consensus estimates for adjusted EBITDA and EPS, with $185 million and $1.45, respectively, for the full year. We delivered a 45% EBITDA margin, a record, and our first time breaking 40 since 2019.

Speaker #3: We deliberated at least 20% of the domestic opening for Sinners, One Battle After Another, and F1. Our financial results reflect our progress and the strength and incrementality in our model.

Speaker #3: We beat projections across almost every key financial metric, setting several company records. We delivered a record $410 million in total revenue in 2025. We achieved double-digit percentage beats on original consensus estimates for adjusted EBITDA and EPS, with $185 million and $1.45, respectively, for the full year.

Speaker #3: We delivered a 45% EBITDA margin, a record in our first-time breaking 40 since 2019. Record operating cash flow of $127 million, for the full year.

Rich Gelfond: Record operating cash flow of $127 million for the full year. In Q4, we delivered record box office and over 50% growth in adjusted EBITDA and adjusted EPS. We expect another outstanding year in 2026, with a projected $1.4 billion in global box office, 160 to 175 system installations worldwide, and total adjusted EBITDA margin in the mid-40s range, with a floor of 45%. Through 2028, we aim to drive revenue growth at high single to low double-digit compound annual growth rate, adjusted EBITDA margin of over 50% by 2028, adjusted EPS growth at twice the rate of revenue, and free cash flow conversion of approximately 50% in 2026 and growing.

Richard Gelfond: Record operating cash flow of $127 million for the full year. In Q4, we delivered record box office and over 50% growth in adjusted EBITDA and adjusted EPS. We expect another outstanding year in 2026, with a projected $1.4 billion in global box office, 160 to 175 system installations worldwide, and total adjusted EBITDA margin in the mid-40s range, with a floor of 45%. Through 2028, we aim to drive revenue growth at high single to low double-digit compound annual growth rate, adjusted EBITDA margin of over 50% by 2028, adjusted EPS growth at twice the rate of revenue, and free cash flow conversion of approximately 50% in 2026 and growing.

Speaker #3: And in the fourth quarter, we delivered record box office and over 50% growth in adjusted EBITDA and adjusted EPS. We expect another outstanding year in 2026 with a projected $1.4 billion in global box office and $160 to $175 system installations worldwide, and total adjusted EBITDA margin in the mid-40s range with a floor of 45%.

Speaker #3: And through 2028, we aim to drive revenue growth at high single to low double-digit compound annual growth rate. Adjusted EBITDA margin of over 50% by 2028.

Speaker #3: Adjusted EPS growth at twice the rate of revenue. And free cash flow conversion of approximately 50% in 2026 and growing. We believe we are far from our peak, but rather in a period of evolution and growth.

Rich Gelfond: We believe we are far from our peak, but rather in a period of evolution and growth. With superior immersive technology and unmatched scale, IMAX is the premier global platform for blockbuster content, and blockbuster content continues to grow in importance across the global ecosystem. The world's greatest filmmakers, studios, and even streamers are leaning into blockbuster theatrical releases as drivers of IP and value throughout the chain. As this trend accelerates, IMAX becomes an increasingly valuable player. We're the only game in town with a global platform, content portfolio, and well-recognized brand. We're able to re- leverage the shift to premium and consumer demand for great out-of-home experiences. With a very strong slate booking all the way into 2029 and an expanding total addressable market for IMAX systems, we are capitalizing on our strong position and delivering for our shareholders.

Richard Gelfond: We believe we are far from our peak, but rather in a period of evolution and growth. With superior immersive technology and unmatched scale, IMAX is the premier global platform for blockbuster content, and blockbuster content continues to grow in importance across the global ecosystem. The world's greatest filmmakers, studios, and even streamers are leaning into blockbuster theatrical releases as drivers of IP and value throughout the chain. As this trend accelerates, IMAX becomes an increasingly valuable player. We're the only game in town with a global platform, content portfolio, and well-recognized brand. We're able to re- leverage the shift to premium and consumer demand for great out-of-home experiences. With a very strong slate booking all the way into 2029 and an expanding total addressable market for IMAX systems, we are capitalizing on our strong position and delivering for our shareholders.

Speaker #3: With superior immersive technology and unmatched scale, IMAX is the premier global platform for blockbuster content. And blockbuster content continues to grow in importance across the global ecosystem.

Speaker #3: The world's greatest filmmakers, studios, and even streamers are leaning into blockbuster theatrical releases as drivers of IP and value throughout the chain. As this trend accelerates, IMAX becomes an increasingly valuable player.

Speaker #3: With the only game in town with a global platform, content portfolio, and well-recognized brand. We're able to leverage the shift to premium and consumer demand for great out-of-home experiences.

Speaker #3: And with a very strong slate booking all the way into 2029 and an expanding total addressable market for IMAX systems, we are capitalizing on our strong position and delivering for our shareholders.

Speaker #3: The slate for '26 is arguably the strongest we've ever seen. Highlighted by massive films for IMAX, 10 poles headlining a record of at least 12 films for IMAX releases worldwide.

Rich Gelfond: The slate for 2026 is arguably the strongest we've ever seen, highlighted by massive film for IMAX tentpoles, headlining a record of at least 12 film IMAX releases worldwide, including Christopher Nolan's The Odyssey, the first theatrical feature shot entirely with IMAX film cameras. Tickets for select IMAX 70mm showings sold out a full year in advance, and we will have 40 film locations for The Odyssey's debut in July. The Mandalorian and Grogu, the big screen debut of the massively popular Disney+ former TV series from director Jon Favreau, who crafted the film with cutting-edge technology specifically for IMAX screens. Dune: Part Three, the next installment in Denis Villeneuve's franchise and the first of the series shot with IMAX film cameras.

Richard Gelfond: The slate for 2026 is arguably the strongest we've ever seen, highlighted by massive film for IMAX tentpoles, headlining a record of at least 12 film IMAX releases worldwide, including Christopher Nolan's The Odyssey, the first theatrical feature shot entirely with IMAX film cameras. Tickets for select IMAX 70mm showings sold out a full year in advance, and we will have 40 film locations for The Odyssey's debut in July. The Mandalorian and Grogu, the big screen debut of the massively popular Disney+ former TV series from director Jon Favreau, who crafted the film with cutting-edge technology specifically for IMAX screens. Dune: Part Three, the next installment in Denis Villeneuve's franchise and the first of the series shot with IMAX film cameras.

Speaker #3: Including Christopher Nolan's The Odyssey, the first theatrical feature shot entirely with IMAX film cameras. Tickets for select IMAX 70 millimeter showings, sold out a full year in advance, and we will have 40 film locations for Odyssey's debut in July.

Speaker #3: The Mandalorian and Grogu, the big screen debut of the massively popular Disney Plus former TV series, from director John Favreau, who crafted the film with cutting-edge technology specifically for IMAX screens.

Speaker #3: Dune Part III, the next installment in Denis Villeneuve's franchise, and the first of the series shot with IMAX film cameras. And next month's Project Hail Mary, a film for IMAX Space Adventure that is earning excellent buzz and will screen in IMAX 70 millimeter across 16 locations and indicator of strong indexing for recent releases.

Rich Gelfond: Next month's Project Hail Mary, a film for IMAX space adventure that is earning excellent buzz and will screen in IMAX 70mm across 16 locations, an indicator of strong indexing for recent releases. Highly anticipated family releases, at a time when family films are leading the box office, and IMAX is capturing a greater box office share of family films than ever before, including The Super Mario Galaxy Movie, which we're hearing is testing extremely well, Minions 3, and Toy Story 5. The previous installments of these films all grossed near or above $1 billion. A diverse collection of distinctive and filmmaker-driven releases that we believe hold real upside, from Michael to Zach Cregger's Resident Evil. Another strong offering of local language films from around the world, including the eagerly awaited sequel, Godzilla Minus Zero, from Japan and the Indian epic Ramayana.

Richard Gelfond: Next month's Project Hail Mary, a film for IMAX space adventure that is earning excellent buzz and will screen in IMAX 70mm across 16 locations, an indicator of strong indexing for recent releases. Highly anticipated family releases, at a time when family films are leading the box office, and IMAX is capturing a greater box office share of family films than ever before, including The Super Mario Galaxy Movie, which we're hearing is testing extremely well, Minions 3, and Toy Story 5. The previous installments of these films all grossed near or above $1 billion. A diverse collection of distinctive and filmmaker-driven releases that we believe hold real upside, from Michael to Zach Cregger's Resident Evil. Another strong offering of local language films from around the world, including the eagerly awaited sequel, Godzilla Minus Zero, from Japan and the Indian epic Ramayana.

Speaker #3: Highly anticipated family releases in a time when family films are leading the box office and IMAX is capturing a greater box office share of family films than ever before.

Speaker #3: Including Super Mario Galaxy movie, which we're hearing is testing extremely well. Minions 3 and Toy Story 5. The previous installments of these films all grossed near or above a billion dollars.

Speaker #3: A diverse collection of distinctive and filmmaker-driven releases that we believe hold real upside, from Michael to Zach Krieger's Resident Evil. Another strong offering of local language films from around the world, including the eagerly awaited sequel Godzilla Minus Zero from Japan and the Indian epic Ramayana.

Rich Gelfond: Barbie director Greta Gerwig's Narnia, a pioneering partnership with Netflix that we believe will deliver greater value to our exhibition partners. Furthermore, we're already set 60% booked for 2027, with blockbusters, including Top Gun: Maverick and F1 director Joseph Kosinski's Miami Vice, which will be Filmed for IMAX. Star Wars: Starfighter from Deadpool & Wolverine, director Shawn Levy. The film looks to be a throwback to the galaxy-spanning adventure of the original trilogy. The Thomas Crown Affair from Academy Award nominee Michael B. Jordan, Avengers: Secret Wars, and The Batman Part II. For 2028, we look forward to being involved in Sam Mendes's groundbreaking Beatles four-film event. With 2 months down in 2026, we feel good about our projected box office for the year as we enter one of the most promising periods.

Speaker #3: And finally, Barbie director Greta Gerwig's Narnia, a pioneering partnership with Netflix that we believe will deliver greater value to our exhibition partners. Furthermore, we're already 60% booked for 2027.

Richard Gelfond: Barbie director Greta Gerwig's Narnia, a pioneering partnership with Netflix that we believe will deliver greater value to our exhibition partners. Furthermore, we're already set 60% booked for 2027, with blockbusters, including Top Gun: Maverick and F1 director Joseph Kosinski's Miami Vice, which will be Filmed for IMAX. Star Wars: Starfighter from Deadpool & Wolverine, director Shawn Levy. The film looks to be a throwback to the galaxy-spanning adventure of the original trilogy. The Thomas Crown Affair from Academy Award nominee Michael B. Jordan, Avengers: Secret Wars, and The Batman Part II. For 2028, we look forward to being involved in Sam Mendes's groundbreaking Beatles four-film event. With 2 months down in 2026, we feel good about our projected box office for the year as we enter one of the most promising periods.

Speaker #3: With blockbusters including Top Gun: Maverick and F1 director Joe Kaczynski's Miami Vice, which will be filmed for IMAX. Star Wars: Starfighter from Deadpool and Wolverine director Sean Levy, the film looks to be a throwback to the galaxy-spanning adventure of the original trilogy.

Speaker #3: The Thomas Crown affair from Academy Award nominee Michael B. Jordan. Avengers: Secret Wars and the Batman 2. And for '28, we look forward to being involved in Sam Mendes' groundbreaking Beatles 4 film event.

Speaker #3: With two months down in '26, we feel good about our projected box office for the year as we enter one of the most promising periods.

Speaker #3: Our global box office in January was up 16% year over year. Avatar: Fire and Ash extended our success with that franchise, earning more than $188 million in IMAX.

Rich Gelfond: Our global box office in January was up 16% year-over-year. Avatar: Fire and Ash extended our success with that franchise, earning more than $188 million in IMAX, our sixth-highest-grossing release of all time and our highest indexing of the series, with 13% worldwide. The Chinese New Year holiday delivered $28 million on the strength of Pegasus 3, our biggest Chinese title since Ne Zha 2. We continue to diversify our content slate, securing an agreement with Apple to stream live broadcasts of Formula One World Championship races to IMAX locations this season and delivering a very successful exclusive opening of Baz Luhrmann's Elvis doc, EPiC. We also continue to drive strong system sales and network growth worldwide, particularly in under-penetrated, high-value rest-of-the-world markets, where we installed a record 118 systems in 2025.

Richard Gelfond: Our global box office in January was up 16% year-over-year. Avatar: Fire and Ash extended our success with that franchise, earning more than $188 million in IMAX, our sixth-highest-grossing release of all time and our highest indexing of the series, with 13% worldwide. The Chinese New Year holiday delivered $28 million on the strength of Pegasus 3, our biggest Chinese title since Ne Zha 2. We continue to diversify our content slate, securing an agreement with Apple to stream live broadcasts of Formula One World Championship races to IMAX locations this season and delivering a very successful exclusive opening of Baz Luhrmann's Elvis doc, EPiC. We also continue to drive strong system sales and network growth worldwide, particularly in under-penetrated, high-value rest-of-the-world markets, where we installed a record 118 systems in 2025.

Speaker #3: Our sixth-highest grossing release of all time, and our highest indexing of the series, with 13% worldwide. The Chinese New Year holiday delivered $28 million on the strength of Pegasus 3, our biggest Chinese title since Ne Zha 2.

Speaker #3: And we continue to diversify our content slate, securing an agreement with Apple to stream live broadcasts of Formula 1 World Championship races to IMAX locations this season, and delivering a very successful exclusive opening of Baz Luhrmann's Elvis doc epic.

Speaker #3: We also continue to drive strong system sales and network growth worldwide, particularly in under-penetrated, high-value rest-of-the-world markets where we installed a record 118 systems in 2025.

Speaker #3: We now work with more exhibition partners globally than ever before: 257 in total last year, up 28% over 2019. Surging demand for IMAX supported an expansion of our total addressable market to nearly 4,500 total zones worldwide, double our current systems in operation and backlog.

Rich Gelfond: We now work with more exhibition partners globally than ever before, 257 in total last year, up 28% over 2019. Surging demand for IMAX supported an expansion of our total addressable market to nearly 4,500 total zones worldwide, double our current systems in operation and backlog. To capture that opportunity, we're executing against a four-pronged strategy. 1, focusing on high-growth, underserved markets. We've had tremendous success here, driving our biggest year ever for sales and installations in Japan in 2025, tripling our network in Australia since 2023, and making strong progress in France and Germany. 2, continuing to unlock new opportunities in North America. Domestic is an engine of growth for us, with new and existing partners alike, dispelling the notion that this is a fully mature market.

Richard Gelfond: We now work with more exhibition partners globally than ever before, 257 in total last year, up 28% over 2019. Surging demand for IMAX supported an expansion of our total addressable market to nearly 4,500 total zones worldwide, double our current systems in operation and backlog. To capture that opportunity, we're executing against a four-pronged strategy. 1, focusing on high-growth, underserved markets. We've had tremendous success here, driving our biggest year ever for sales and installations in Japan in 2025, tripling our network in Australia since 2023, and making strong progress in France and Germany. 2, continuing to unlock new opportunities in North America. Domestic is an engine of growth for us, with new and existing partners alike, dispelling the notion that this is a fully mature market.

Speaker #3: To capture that opportunity, we're executing against a four-prong strategy. One, focusing on high-growth, underserved markets. We've had tremendous success here, driving our biggest year ever for sales and installations in Japan.

Speaker #3: In 2025, tripling our network in Australia since 2023 and making strong progress in France and Germany. Second, continuing to unlock new opportunities in North America.

Speaker #3: Domestic is an engine of growth for us, with new and existing partners alike dispelling the notion that this is a fully mature market. In 2025 alone, we struck agreements with each of the biggest exhibitors in the US: AMC, Cinemark, and Regal.

Rich Gelfond: In 2025 alone, we struck agreements with each of the biggest exhibitors in the US, AMC, Cinemark, and Regal, that advanced key strategic priorities, including new locations in Los Angeles and New York with Regal and 3 new IMAX 70mm film locations with Cinemark. Third, identifying opportunities to add a second IMAX location in high-performing zones. For all our success with marquee locations in major metropolitan areas, we are still deeply under-penetrated in many, presenting an opportunity to grow within our best market centers. For instance, we have only 5 IMAX locations serving a population of 1.6 million people in Manhattan, including our first new location in 15 years, set to open in Battery Park. We see a lot of opportunities in metropolitan areas, including Chicago, Boston, San Antonio, and San Jose, among others.

Richard Gelfond: In 2025 alone, we struck agreements with each of the biggest exhibitors in the US, AMC, Cinemark, and Regal, that advanced key strategic priorities, including new locations in Los Angeles and New York with Regal and 3 new IMAX 70mm film locations with Cinemark. Third, identifying opportunities to add a second IMAX location in high-performing zones. For all our success with marquee locations in major metropolitan areas, we are still deeply under-penetrated in many, presenting an opportunity to grow within our best market centers. For instance, we have only 5 IMAX locations serving a population of 1.6 million people in Manhattan, including our first new location in 15 years, set to open in Battery Park. We see a lot of opportunities in metropolitan areas, including Chicago, Boston, San Antonio, and San Jose, among others.

Speaker #3: That advanced key strategic priorities, including new locations in Los Angeles, New York with Regal, and three new IMAX 70 millimeter film locations with Cinemark.

Speaker #3: Third, identifying opportunities to add a second IMAX location in high-performing zones. For all our success with marquee locations in major metropolitan areas, we are still deeply under-penetrated in many.

Speaker #3: Presenting an opportunity to grow within our best market centers. For instance, we have only five IMAX locations serving a population of 1.6 million people in Manhattan, including our first new location in 15 years set to open in Battery Park.

Speaker #3: And we see a lot of opportunities in metropolitan areas, including Chicago, Boston, San Antonio, and San Jose, among others. And lastly, finally, we continue to explore innovative deal structures that leverage our liquidity.

Rich Gelfond: Lastly, finally, we continue to explore innovative deal structures that leverage our liquidity. Given our strong balance sheet of momentum, we can help our partners get more IMAX into their circuits quickly. Through upfront CapEx that pay for themselves, given our strong market share gains and the impressive film slate lying ahead. In sum, 2025 was a transformational, record-breaking year for IMAX. We exceeded our targets for financial performance and finished with a strong Q4. We drove great results for our exhibition partners, breaking box office records as fans, filmmakers, and studios clamor for more of the IMAX experience. We continued network expansion with significant runway to grow further, even as we capture a record share of the global box office. In every way, we've leveled up our performance.

Richard Gelfond: Lastly, finally, we continue to explore innovative deal structures that leverage our liquidity. Given our strong balance sheet of momentum, we can help our partners get more IMAX into their circuits quickly. Through upfront CapEx that pay for themselves, given our strong market share gains and the impressive film slate lying ahead. In sum, 2025 was a transformational, record-breaking year for IMAX. We exceeded our targets for financial performance and finished with a strong Q4. We drove great results for our exhibition partners, breaking box office records as fans, filmmakers, and studios clamor for more of the IMAX experience. We continued network expansion with significant runway to grow further, even as we capture a record share of the global box office. In every way, we've leveled up our performance.

Speaker #3: Given our strong balance sheet and momentum, we can help our partners get more IMAX into their circuits quickly. Through upfront capital expenditures that pay for themselves, given our strong market share gains, and the impressive film slate, e, lying ahead.

Speaker #3: In sum, 2025 was a transformational record-breaking year for IMAX. We exceeded our targets for financial performance and finished with a strong fourth quarter. We drove great results for our exhibition partners, breaking box office records as fans filmmakers and studios clamor for more of the IMAX experience.

Speaker #3: We continued network expansion with significant runway to grow further, even as we capture a record share of the global box office. In every way, we've leveled up our performance.

Speaker #3: With an incredibly promising slate locked in for the next several years, we continue to believe the best is yet to come. We're focused on strengthening our position, discipline, providing the most immersive entertainment experience on the planet, and delivering for our shareholders.

Rich Gelfond: With an incredibly promising slate locked in for the next several years, we continue to believe the best is yet to come. We're focused on strengthening our position, executing with financial discipline, providing the most immersive entertainment experience on the planet, and delivering for our shareholders. Thank you all, and now I'll turn it over to Natasha.

Richard Gelfond: With an incredibly promising slate locked in for the next several years, we continue to believe the best is yet to come. We're focused on strengthening our position, executing with financial discipline, providing the most immersive entertainment experience on the planet, and delivering for our shareholders. Thank you all, and now I'll turn it over to Natasha.

Speaker #3: Thank you all, and now I'll turn it over to Natasha.

Speaker #2: Thanks, Rich. And good afternoon, everyone. In a time of limitless entertainment options and more discerning global audiences, IMAX delivered record fourth quarter and full-year results.

Natasha Fernandes: Thanks, Rich. Good afternoon, everyone. In a time of limitless entertainment options and more discerning global audiences, IMAX delivered record Q4 and full-year results, exceeding our guidance and street expectations across key measures. Q4 box office was $336 million, up 16% versus the prior Q4 record, driving full-year box office to $1.28 billion. We captured a record 3.8% of global box office, up 700 basis points year-over-year, underscoring the increasing value the IMAX platform delivers to exhibitors and to the broader industry. Strong demand for the IMAX experience also drove us to the high end of our installation guidance, with 160 systems installed in 2025, up 10% year-over-year.

Speaker #2: Exceeding our guidance and street expectations across key measures. Fourth quarter box office was $336 million up 16% versus the prior Q4 record, driving full-year box office to $1.28 billion dollars.

Speaker #2: lars. We captured a record $3.8% of global box office, up $700 basis points year over year, underscoring the increasing value the IMAX platform delivers to exhibitors and to the broader industry.

Speaker #2: Strong demand for the IMAX experience also drove us to the high end of our installation guidance with $160 systems installed in 2025, up 10% year over year.

Speaker #2: As we keep our focus on delivering value for shareholders, from a profitability perspective, our operating leverage resulted in an adjusted EBITDA margin of 45% for full-year 2025, above our guidance of low 40%.

Natasha Fernandes: As we keep our focus on delivering value for shareholders, from a profitability perspective, our operating leverage resulted in an adjusted EBITDA margin of 45% for full year 2025, above our guidance of low 40%. Adjusted EPS reached a new full-year record of $1.45, an increase of $0.50 year-over-year. Importantly, these results translated into our highest-ever cash from operations of $127 million, with cash conversion directly benefiting from the margin expansion. Our standout 2025 financial results once again illustrate the uniqueness of IMAX's operating model and position as a leading entertainment platform. We believe the momentum is carrying into 2026 as we look toward the exceptional slate.

Speaker #2: And adjusted EPS reached a new full-year record of $1.45 and increased by $0.50 year over year. Importantly, these results translated into our highest-ever cash from operations of $127 million, with cash conversion directly benefiting from the margin expansion.

Speaker #2: Our standout 2025 financial results once again illustrate the uniqueness of IMAX's operating model and position as a leading entertainment platform. And we believe the momentum is carrying into 2026 as we look toward the exceptional slate.

Speaker #2: With all the major ten-pole Hollywood releases still in front of us, many with breakout potential, we believe we are well positioned to achieve another year of strong performance.

Natasha Fernandes: With all the major tentpole Hollywood releases still in front of us, many with breakout potential, we believe we are well-positioned to achieve another year of strong performance. We expect IMAX box office will build through the year, with Q1 representing the lowest box office quarter. Specifically in China, we expect a more balanced year, as opposed to 2025, where 46% of China's box office was in Q1, as two of the larger local language titles, Once Upon a Time in the Northeast and Panghu, did not make it into Chinese New Year and will likely release mid to late this year, along with there being a more balanced and compelling Hollywood release setup for Greater China.

Speaker #2: We expect IMAX box office will build through the year, with Q1 representing the lowest box office quarter. Specifically, in China, we expect a more balanced year as opposed to 2025, where 46% of China's box office was in Q1.

Speaker #2: As two of the larger local language titles, Once Upon a Time in the Middle East and Peng Hu, did not make it into Chinese New Year and will likely release mid to late this year, along with there being a more balanced and compelling Hollywood release setup for Greater China.

Speaker #2: Taking a closer look at our Q4 and full-year 2025 results, we had a strong close to 2025 with fourth quarter revenues up 35% year over year, which drove us to a full-year revenue record of $410 million and increase of 16% over 2024's full-year revenue of $352 million.

Natasha Fernandes: Taking a closer look at our Q4 and full year 2025 results, we had a strong close to 2025, with Q4 revenues up 35% year-over-year, which drove us to a full-year revenue record of $410 million, an increase of 16% over 2024's full-year revenue of $352 million. Gross margin continues to grow faster than revenues, clearly demonstrating the value proposition of our business model, which enables a high level of incremental profit flow-through as we scale our platform and box office growth. Q4 gross margin was at a 58% margin, a 540 basis point improvement over the prior year period, while full-year gross margin was $246 million at a 60% margin, up 600 basis points year-over-year.

Speaker #2: Gross margin continues to grow faster than revenues, clearly demonstrating the value proposition of our business model, which enables a high level of incremental profit flow-through as we scale our platform and box office growth.

Speaker #2: Q4 gross margin was at a 58% margin, a 540 basis point improvement over the prior year period, while full-year gross margin was 246 million dollars at a 60% margin, up 600 basis points year over year.

Speaker #2: Looking at our results at the segment level, content solutions revenues grew significantly, driven by higher box office with fourth quarter revenues of $38 million, or 50% growth over the prior year comparative period, and full-year content revenue growth of 21%.

Natasha Fernandes: Looking at our results at the segment level, content solutions revenues grew significantly, driven by higher box office, with Q4 revenues of $38 million, or 50% growth over the prior year comparative period, and full-year content revenue growth of 21%. We have continuously focused on diversifying our content offerings and sought to outperform expectations, and 2025 displayed the success of our strategies. Every quarter of 2025 had a different content storyline, enabled by our diverse programming strategy. Q1 box office was local language-driven. Q2 into Q3, our Film for IMAX program delivered some of our highest indexing levels in our history. Q3 benefited from a diverse mix of local language, horror titles, and alternative content. Q4 anchored the year with large Hollywood tentpoles.

Speaker #2: We have continuously focused on diversifying our content offerings and sought to outperform expectations, and 2025 displayed the success of our strategies. Every quarter of 2025 had a different content storyline enabled by our diverse programming strategy.

Speaker #2: Q1 box office was local language driven. Q2 into Q3, our film for the IMAX program delivered some of our highest indexing levels in our history.

Speaker #2: Q3 benefited from a diverse mix of local language, horror titles, and alternative content. And Q4 anchored the year with large Hollywood ten-poles. Fourth quarter content solutions gross profit was $22 million while full-year content solutions gross profit of $100 million grew 50% year over year, more than twice the rate of revenue.

Natasha Fernandes: Q4 content solutions gross profit was $22 million, while full-year content solutions gross profit of $100 million grew 50% year-over-year, more than twice the rate of revenue, actualizing the proof point of the significant operating leverage in our model. As a result, we delivered a 66% gross margin for 2025, a substantial increase of 1,260 basis points from the 53% in 2024.

Speaker #2: Actualizing the proof point of the significant operating leverage in our model. As a result, we delivered a 66% gross margin for 2025, a substantial increase of $1,260 basis points from the 53% in 2024.

Speaker #2: Turning to our technology products and services segment, fourth quarter revenues were up 32% year over year with a gross profit margin of 58%, up approximately 500 basis points year over year, while full-year revenues for this segment grew 16% with a gross profit margin of 57%, up approximately 400 basis points year over year, driven by higher systems installed under sales arrangements, growth in box office driving a higher level of rental revenues, and increasing maintenance revenue associated with the growing network.

Natasha Fernandes: Turning to our technology products and services segment, Q4 revenues were up 32% year-over-year, with a gross profit margin of 58%, up approximately 500 basis points year-over-year, while full-year revenues for this segment grew 16% with a gross profit margin of 57%, up approximately 400 basis points year-over-year, driven by higher systems installed under sales arrangements, growth in box office driving a higher level of rental revenues, and increasing maintenance revenue associated with the growing network. In Q4, we installed 65 systems, up from 58 last year. For the full year, installations reached 160 systems at the high end of our guidance, driving 3.5% growth in our commercial footprint, led by 4% growth in our domestic network and just over 8% in the rest of world.

Speaker #2: In the fourth quarter, we installed 65 systems, up from 58 last year. For the full year, installations reached 160 systems at the high end of our guidance, driving 3.5% growth in our commercial footprint, led by 4% growth in our domestic network and just over 8% in the rest of the world—a very strong result reflecting our growth prioritization.

Natasha Fernandes: A very strong result reflecting our growth prioritization. We're expanding in the strongest box office markets, including in the US, Japan, France, and Australia. Japan grew almost 20%, while Australia more than doubled its footprint. We believe growing in our strongest markets will both scale our platform and meaningfully increase our network productivity. The engine for future growth remains strong as we completed 166 system signings in 2025, an increase of 28% year-over-year. More than 25% of the signings were signed and installed in the same year, reflecting the demand by our exhibitor partners to get IMAX locations quickly up and running to capitalize on the strengthening IMAX slate. We expect the same dynamic in 2026, given the outstanding film slate in front of us.

Speaker #2: We're expanding in the strongest box office markets, including in the US, Japan, France, and Australia. Japan grew almost 20%, while Australia more than doubled its footprint.

Speaker #2: We believe growing in our strongest markets will both scale our platform and meaningfully increase our network productivity. And the engine for future growth remains strong as we completed 166 system signings in 2025 and increased of 28% year over year.

Speaker #2: More than 25% of the signings were signed and installed in the same year, reflecting the demand by our exhibitor partners to get IMAX locations quickly up and running to capitalize on the strengthening IMAX slate.

Speaker #2: We expect the same dynamic in 2026 given the outstanding film slate in front of us. Turning to operating expenditures, defined as research and development and selling general and administrative expenses excluding stock-based compensation, was $29 million in the fourth quarter and $118 million for full-year 2025.

Natasha Fernandes: Turning to operating expenditures, defined as research and development and selling general and administrative expenses, excluding stock-based compensation, was $29 million in Q4 and $118 million for full year 2025. Full year operating expenses increased only 1% year-over-year, a much lower rate than the 16% growth rate in revenues, reflecting continued expense and cost discipline that helped to offset the impact of inflation and continued investment in the business. We will continue in 2026 to focus on optimizing our uses of technology and evaluating work processes to enhance productivity across our business as we aim to crystallize a high level of flow-through to gross profit and to the bottom line.

Speaker #2: Full-year operating expenses increased only 1% year over year, a much lower rate than the 16% growth rate in revenues, reflecting continued expense and cost discipline that helped to offset the impact of inflation and continued investment in the business.

Speaker #2: We will continue in 2026 to focus on optimizing our uses of technology and evaluating work processes to enhance productivity across our business as we aim to crystallize a high level of flow-through to gross profit and to the bottom line.

Speaker #2: Included in Q4 results is $22 million of one-time charges: $15 million for the strategic repurchase of over 99% of the convertible notes due 2026, and $7 million resulting from a non-cash goodwill impairment of the legacy SimWave business associated with the monitoring of content quality.

Natasha Fernandes: Included in Q4 results is $22 million of one-time charges, $15 million for the strategic repurchase of over 99% of the convertible notes due 2026, and $7 million resulting from a non-cash goodwill impairment of the legacy Cinewave business associated with the monitoring of content quality. We continue to lean in on our core business, where we see tremendous opportunity to gain share and expand the network. We have been repositioning our streaming and consumer technology business to enhance our differentiation, particularly in support of live streaming content across the IMAX platform, as well as the evolution of our core DMR and system technologies. With this shift in strategy, we have also been reviewing and optimizing the cost structure of the Cinewave business. Overall, our strong operational performance led to record full-year total consolidated adjusted EBITDA of $185 million.

Speaker #2: We continue to lean in on our core business where we see tremendous opportunity to gain share and expand the network. We have been repositioning our streaming and consumer technology business to enhance our differentiation, particularly in support of live streaming content across the IMAX platform, as well as the evolution of our core DMR and system technologies.

Speaker #2: With this shift in strategy, we have also been reviewing and optimizing the cost structure of the SimWave business. Overall, our strong operational performance led to record full-year total consolidated adjusted EBITDA of $185 million. Adjusted EBITDA grew 33% for the full year, more than twice the rate of revenue growth, reflecting the operating leverage stemming from higher revenues coming from both box office and system sales.

Natasha Fernandes: Adjusted EBITDA grew 33% for the full year, more than twice the rate of revenue growth, reflecting the operating leverage stemming from higher revenues coming from both box office and system sales. This resulted in an above-expectation full-year adjusted EBITDA margin of 45%, up approximately 570 basis points year-over-year, and placing us above our full-year guidance of low 40%. Full-year adjusted EPS was $1.45, up $0.50, driven by the strong profit growth. 2025's results reflect a 28% tax rate compared to 13% in 2024, or a year-over-year headwind of $0.16 per share. No tax benefits were recognized for the one-time charges in 2025, while 2024's tax rate was unusually low, having benefited from an internal asset sale to more closely align intellectual property rights with its global operations. Turning to cash flow and balance sheet.

Speaker #2: This resulted in an above-expectation full-year adjusted EBITDA margin of 45%, up approximately 570 basis points year over year, and placing us above our full-year guidance of low 40%.

Speaker #2: Full-year adjusted EPS was $1.45, up 50 cents, driven by the strong profit growth. 2025's results reflect a 28% tax rate compared to 13% in 2024, or a year-over-year headwind of 16 cents per share.

Speaker #2: No tax benefits were recognized for the one-time charges in 2025, while 2024's tax rate was unusually low, having benefited from an internal asset sale to more closely align intellectual property rights with its global operations.

Speaker #2: Turning to cash flow and balance sheet, cash flow from operations of $127 million set a new full-year record, exceeding the previous high of $110 million in 2018, and full-year free cash flow, which includes $28 million of investment in the IMAX network through joint revenue sharing systems, was $85 million which equates to a record adjusted EBITDA conversion of 46%, or a conversion of 61% excluding this investment in network growth capex.

Natasha Fernandes: Cash flow from operations of $127 million set a new full-year record, exceeding the previous high of $110 million in 2018. Full year free cash flow, which includes $28 million of investment in the IMAX network through joint revenue sharing systems, was $85 million, which equates to a record adjusted EBITDA conversion of 46%, or a conversion of 61%, excluding this investment in network growth CapEx. We believe these results reflect the positive incrementality in our model, as well as improvements in working capital, which we expect to continue as box office and our network expands.

Speaker #2: We believe these results reflect the positive incrementality in our model, as well as improvements in working capital, which we expect to continue as box office and our network expand.

Speaker #2: Turning to investing cash flows, we continue to prioritize use of our available capital to invest in the business, including partnering with exhibitor customers to grow and upgrade the IMAX network through joint revenue sharing arrangements, allowing us to benefit from the rising demand for IMAX and the stellar IMAX slate in 2026, '27, '28, and beyond.

Natasha Fernandes: Turning to investing cash flows, we continue to prioritize use of our available capital to invest in the business, including partnering with exhibitor customers to grow and upgrade the IMAX network through joint revenue sharing arrangements, allowing us to benefit from the rising demand for IMAX and the stellar IMAX slate in 2026, 2027, 2028 and beyond. Our capital light model and execution have resulted in a strong capital structure. As of year-end 2025, we held $151 million in cash, an increase of 50% from year-end 2024, and $289 million in debt, with a net leverage of 0.7x. During 2025, we strengthened our liquidity and reduced dilution risk through strategic transactions. We renewed and expanded our five-year revolving credit facility to $375 million, adding $75 million of liquidity.

Speaker #2: Our capital light model and execution have resulted in a strong capital structure. As of year-end 2025, we held $151 million in cash, an increase of 50% from year-end 2024, and $289 million in debt, with a net leverage of 0.7 times.

Speaker #2: During 2025, we strengthened our liquidity and reduced dilution risk through strategic transactions. We renewed and expanded our five-year revolving credit facility to $375 million adding $75 million of liquidity.

Speaker #2: And in November, we refinanced our 2021 convertible notes with $250 million of new convertible notes at a very attractive 0.75% interest rate, and through this transaction, we simultaneously retired the vast majority of the 2021 notes with cash of $46 million to minimize dilution.

Natasha Fernandes: In November, we refinanced our 2021 convertible notes with $250 million of new convertible notes at a very attractive 0.75% interest rate. Through this transaction, we simultaneously retired the vast majority of the 2021 notes with cash of $46 million to minimize dilution. Importantly, we also entered into a capped call on the new notes, raising the effective conversion price from a company dilution standpoint to $57 per share. Together, the cash payment for the outperformance in the 2021 notes and the new capped call equates to approximately $70 million, strategically spent to maximize the opportunity for shareholders to benefit from the growth we expect in the coming years, and in our view, is akin in some respects to that of a share repurchase.

Speaker #2: Importantly, we also entered into a capped call on the new notes, raising the effective conversion price from a company dilution standpoint to $57 per share.

Speaker #2: Together, the cash payment for the outperformance in the 2021 notes and the new capped call equates to approximately $70 million strategically spent to maximize the opportunity for shareholders to benefit from the growth we expect in the coming years and, in our view, is akin in some respects to repurchase.

Speaker #2: To sum up, we aim to build on the momentum in 2025, and as rich shared the table is set for '26 and '27, with mega titles like Odyssey, Two Star Wars movies, Narnia, Dune, and Avengers.

Natasha Fernandes: To sum up, we aim to build on the momentum in 2025, as Rich shared, the table is set for 26 and 27, with mega titles like The Odyssey, two Star Wars movies, The Chronicles of Narnia, Dune, and Avengers. Beloved proven family content including Toy Story, Moana, Minions, Shrek, and Frozen. Large fan base video game IP, such as Super Mario, Mortal Kombat, Zelda, and Minecraft. Tier one superhero franchise films around Spider-Man, Batman, and Superman, as well as potential for new breakout IP, like the upcoming Project Hail Mary film, music-centered content like the Twenty One Pilots concert and Michael, and new sports ventures such as recently announced with Apple TV for live F1 races. As we highlighted at our recent Investor Day, we believe we have a clear strategy to continue to expand our entertainment platform in 2026 and beyond to bring the IMAX experience to more audiences.

Speaker #2: Beloved, proven family content including Toy Story, Moana, Minions, Shrek, and Frozen. Large fanbase video game IP such as Super Mario, Mortal Kombat, Zelda, and Minecraft.

Speaker #2: Tier 1 superhero franchise films around Spider-Man, Batman, and Superman. As well as potential for new breakout IP like the upcoming Project Hail Mary film, music-centered content like the 21 Pilots concert and Michael, and new sports ventures such as recently announced with Apple TV for live F1 races.

Speaker #2: As we highlighted at our recent investor day, we believe we have a clear strategy to continue to expand our entertainment platform in 2026 and beyond to bring the IMAX experience to more audiences.

Speaker #2: We are focused on deepening our relationships with leading filmmakers and building new connections with a diverse array of content creators and studios. At the same time, we are aiming to grow our footprint box office and productivity of our network along with the value we can bring to our exhibitor partners.

Natasha Fernandes: We are focused on deepening our relationships with leading filmmakers and building new connections with a diverse array of content creators and studios. At the same time, we are aiming to grow our footprint, box office, and productivity of our network, along with the value we can bring to our exhibitor partners. As we have shown, the growth in box office and our increasing network scale will positively impact our bottom line and cash flows, given the incrementality in our financial model and our laser focus on keeping operating expenses as flat as possible. Given these dynamics, we expect to drive total adjusted EBITDA margin to over 50% in the coming years. That's why we believe IMAX's position has never been as strong.

Speaker #2: As we have shown, the growth in box office and our increasing network scale will positively impact our bottom line and cash flows given the incrementality in our financial model and our laser focus on keeping operating expenses as flat as possible.

Speaker #2: Given these dynamics, we expect to drive total adjusted EBITDA margin to over 50% in the coming years. That's why we believe IMAX's position has never been as strong.

Speaker #2: We are focused on executing on the significant opportunity in front of us to deliver on our guidance and expectations for 2026 and beyond, and to drive ever-increasing shareholder returns.

Natasha Fernandes: We are focused on executing on the significant opportunity in front of us to deliver on our guidance and expectations for 2026 and beyond, and to drive ever-increasing shareholder returns. With that, I will turn the call over to the operator for Q&A.

Speaker #2: With that, I will turn the call over to the operator for Q&A. Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone.

Operator: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star one one on your telephone. If your question has been answered, and you assume of yourself from the queue, please press star one one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Omar Mitha with Wells Fargo. Your line is open.

Speaker #2: If your question has been answered, you are still with yourself from the queue. Please press star 11 again. We will pause for a moment while we compile our Q&A roster.

Speaker #2: Our first question comes from Omar Mihas with Wells Fargo. Your line is open.

Speaker #3: Good evening, and thanks for the question. Rich or Natasha, can you give us an update on the state of the Chinese box office and the early start to the Chinese New Year?

Omar Mitha: Good evening, and thanks for the question. Rich or Natasha, can you give us an update on the state of the Chinese box office and the early start to the Chinese New Year? We saw Pegasus 3 start very strong and outperform initial expectations, but just curious on how is the overall health of the market and the slate ahead? Thanks.

Omar Mejias: Good evening, and thanks for the question. Rich or Natasha, can you give us an update on the state of the Chinese box office and the early start to the Chinese New Year? We saw Pegasus 3 start very strong and outperform initial expectations, but just curious on how is the overall health of the market and the slate ahead? Thanks.

Speaker #3: We saw Pegasus 3 start very strong and outperform initial expectations, but just curious on how is the overall health of the market and the slate ahead.

Speaker #3: Thanks.

Speaker #4: So Omar, I don't think you could take 10 days and talk about the state of the Chinese box office. I think when you look at China, Chinese New Year, was kind of a, I'd call it a B slate this year, and very similar to the slate in '24.

Natasha Fernandes: Omar, you know, I don't think you could take 10 days and talk about the state of the Chinese box office. I think, you know, when you look at China, Chinese New Year was kind of I'd call it a B slate this year, and very similar to the slate in 2024. What happened was, there were a number of titles that were supposed to open for Chinese New Year, and they slipped, and they weren't done in production, and they moved them to this summer. I think, you know, that's what accounted for kind of modest results.

Richard Gelfond: Omar, you know, I don't think you could take 10 days and talk about the state of the Chinese box office. I think, you know, when you look at China, Chinese New Year was kind of I'd call it a B slate this year, and very similar to the slate in 2024. What happened was, there were a number of titles that were supposed to open for Chinese New Year, and they slipped, and they weren't done in production, and they moved them to this summer. I think, you know, that's what accounted for kind of modest results.

Speaker #4: And what happened was there were a number of titles that were supposed to open for Chinese New Year, and they slipped. They weren't done in production, and they moved them to this summer.

Speaker #4: So I think that's what accounted for kind of modest results. During that period of time, but I think in the summer will be better than we thought it would be because we thought those movies will have played earlier.

Rich Gelfond: ... during that period of time. I think in the summer will be better than we thought it would be, because we thought those movies will have played earlier. I think, you know, the result is more a matter of timing than it's the result of any trends in the Chinese box office.

Richard Gelfond: ... during that period of time. I think in the summer will be better than we thought it would be, because we thought those movies will have played earlier. I think, you know, the result is more a matter of timing than it's the result of any trends in the Chinese box office.

Speaker #4: So I think the result is more a matter of timing than it's the result of any trends in the Chinese box office.

Omar Mitha: That's very helpful. Maybe my second question on local language and alternative content. You guys had a record year in 2025 with over $400 million in box office. Recently announced a new deal with Apple to air F1 races, based on your investor presentation, looks like you have a big slate ahead. How much runway does IMAX have to drive local language and alternative content box office alongside Hollywood content? Is there a certain limit to the growth of non-Hollywood content box office?

Speaker #3: That's very helpful. And maybe my second question on local language and alternative content. You guys had a record year in 2025 with over 400 million in box office.

Omar Mejias: That's very helpful. Maybe my second question on local language and alternative content. You guys had a record year in 2025 with over $400 million in box office. Recently announced a new deal with Apple to air F1 races, based on your investor presentation, looks like you have a big slate ahead. How much runway does IMAX have to drive local language and alternative content box office alongside Hollywood content? Is there a certain limit to the growth of non-Hollywood content box office?

Speaker #3: Recently announced a new deal with Apple to air F1 races, and based on your investor presentation, it looks like you have a big slate ahead.

Speaker #3: So how much runway does IMAX have to drive local language and alternative content box office alongside Hollywood content? Is there a certain limit to the growth of non-Hollywood content box office?

Speaker #4: Well, I don't think we think about it in that way, Omar. I think we try and program the best content for a particular market throughout the year.

Rich Gelfond: Well, I don't think we think about it in that way, Omar. I think we try and program the best content for a particular market throughout the year. You know, I think one thing you're asking is, are you too stocked with Hollywood films, where you can't do a lot of foreign language films? Again, it depends when things are scheduled, how they're performing. You know, we might slide something in if something's underperforming or move something if it's overperforming. There are a couple of very big international films this year. One is called RRR, which is an Indian film that the director and producer are preparing for global release later this year.

Richard Gelfond: Well, I don't think we think about it in that way, Omar. I think we try and program the best content for a particular market throughout the year. You know, I think one thing you're asking is, are you too stocked with Hollywood films, where you can't do a lot of foreign language films? Again, it depends when things are scheduled, how they're performing. You know, we might slide something in if something's underperforming or move something if it's overperforming. There are a couple of very big international films this year. One is called RRR, which is an Indian film that the director and producer are preparing for global release later this year.

Speaker #4: So I think one thing you're asking is, are you two stocked with Hollywood films? Well, you can't do a lot of foreign language films but again, it depends when things are scheduled, how they're performing, we might slide something in if something's underperforming or move something.

Speaker #4: If it's overperforming, but there are a couple of very big international films this year; one is called Rahmat Yana, which is an Indian film that the director and producer are preparing for global release.

Speaker #4: Later this year, and again, I don't think anybody said, "Well, we have Neja this year." Last year. So you just don't know how they're going to break out, but I believe there's enough runway and enough space to accommodate more in number of international films local language films than we had last year.

Rich Gelfond: Again, I don't think anybody said, Well, we have Ne Zha this year, last year. You just don't know how they're gonna break out. I believe there's enough runway and enough space to accommodate more in number of international films, the local language films, than we had last year, and we're pretty comfortable with how they look at the moment going out. You know, that's gonna continue to be an important part of our business.

Richard Gelfond: Again, I don't think anybody said, Well, we have Ne Zha this year, last year. You just don't know how they're gonna break out. I believe there's enough runway and enough space to accommodate more in number of international films, the local language films, than we had last year, and we're pretty comfortable with how they look at the moment going out. You know, that's gonna continue to be an important part of our business.

Speaker #4: And we're pretty comfortable with how they look at the moment going out. I think that's going to continue to be an important part of our business.

Speaker #3: Great. Thank you very much.

Omar Mitha: Great. Thank you very much.

Omar Mejias: Great. Thank you very much.

Speaker #2: One moment for our next question. Our next question comes from Eric Walt with Texas Capital Securities. Your line is open.

Operator: One moment for our next question. Our next question comes from Eric Wold with Texas Capital Securities. Your line is open.

Speaker #5: Thank you. Good afternoon. A couple of questions on kind of just pricing. I know it's kind of come up in the past, you're rich or Natasha.

Eric Wold: Thank you. Good afternoon. A couple questions on kind of just pricing. I know it's kind of come up in the past, Rich or Natasha. I know you can't directly control ticket pricing with your exhibitor partners, but can you talk about what you've seen maybe over the past year, kind of maybe an average ticket price increase for IMAX showings as exhibitors, you know, look to take advantage of kind of this shift in moviegoer demand? Does any expectation for additional increases play into your box office outlook for 2060, or could that be an incremental upside driver if they do kind of play into that demand with additional price hikes?

Speaker #5: I know you can't directly control ticket pricing with your exhibitor partners, but can you talk about what you've seen maybe over the past year, kind of maybe an average ticket price increase for IMAX showings as exhibitors look to take advantage of this shift in moviegoer demand?

Speaker #5: And does any expectation for additional increases play into your box office outlook for ’26, or could that be an incremental upside driver if they do kind of play into that demand with additional price hikes?

Speaker #4: So I'm not sure what the numbers were for '25, Eric, but I do know that for '26, we've been again, we can't tell the exhibitors what price to charge.

Rich Gelfond: I'm not sure what the numbers were for 25, Eric, but I do know that for 26, again, you know, we can't tell the exhibitors what price to charge. That's their decision. I think given the strength of the slate, and especially the number of event films coming out this year, like Mandalorian, like Dune Three, like Odyssey, that there is potential for price increases in there. You know, I think especially if you also look at the film releases coming out, I mean, historically, the exhibitors charge the same for film as they charge for digital, and even coming out soon as Hail Mary, in about 16 film locations. I think there are definitely instances where I think you could push the price higher.

Richard Gelfond: I'm not sure what the numbers were for 25, Eric, but I do know that for 26, again, you know, we can't tell the exhibitors what price to charge. That's their decision. I think given the strength of the slate, and especially the number of event films coming out this year, like Mandalorian, like Dune Three, like Odyssey, that there is potential for price increases in there. You know, I think especially if you also look at the film releases coming out, I mean, historically, the exhibitors charge the same for film as they charge for digital, and even coming out soon as Hail Mary, in about 16 film locations. I think there are definitely instances where I think you could push the price higher.

Speaker #4: That's their decision. But I think given the strength of the slate, and especially the number of event films coming out this year, like Mandalorian, like Dune 3, like Odyssey, that there is potential to for price increases in there.

Speaker #4: And I think especially if you also look at the film releases coming out, I mean, historically, the exhibitors charge the same for film as they charge for digital.

Speaker #4: And even coming out soon is Hail Mary, in about 16 film locations. So I think there are definitely instances where I think you could push the price higher and if we ran theaters we would certainly do that.

Rich Gelfond: You know, if we ran theaters, you know, we would certainly do that. You know, I'm hoping that it, at least where there are films in great demand, of which there are a lot this year, that the exhibitors would choose to test that.

Richard Gelfond: You know, if we ran theaters, you know, we would certainly do that. You know, I'm hoping that it, at least where there are films in great demand, of which there are a lot this year, that the exhibitors would choose to test that.

Speaker #4: And I'm hoping that at least where there are films in great demand, of which there are a lot this year, that the exhibitors would choose to test that.

Speaker #3: And then just to follow up on that, as you build out some of these emerging markets that are maybe a little bit newer to IMAX screens and build them out, can you talk about what you typically see with the exhibitor partners there on their pricing?

Eric Wold: Just to follow up on that, you build out some of these, you know, emerging markets that are, you know, maybe a little bit newer to IMAX screens and build them out. Can you talk about what you typically see with the exhibitor partners there on their pricing? Do they tend to be a little more conservative, given the consumer may not be, you know, fully aware of the IMAX product as much as more developed markets and then kind of ramp pricing from there? Or do they tend to be, I don't want to say aggressive, but maybe as aggressive as other developed markets at the get-go?

Speaker #3: Do they tend to be a little more conservative given the consumer may not be fully aware of the IMAX product as much as more developed markets, and they kind of ramp pricing from there?

Speaker #3: Or do they tend to be I don't want to say aggressive, but maybe as aggressive as other developed markets at the get-go?

Speaker #4: Well, we provide them as part of the sales process with what the IMAX premium is in different countries around the world. So I mean, they're aware and that's one reason they buy in because they understand the price premium.

Rich Gelfond: Well, we provide them as part of the sales process with what the IMAX premium is in different countries around the world. I mean, they're aware, and that's one reason they buy in, because they understand the price premium. You know, they understand it more as a percentage than an absolute number, because obviously in India, the premium, the ticket price could be different than it's gonna be in Japan. They have the tools to do that, and I think the trend we've noticed is, depending on the country, they charge a similar premium than they would somewhere else. That's not really an issue. I think they understand how to maximize their profit.

Richard Gelfond: Well, we provide them as part of the sales process with what the IMAX premium is in different countries around the world. I mean, they're aware, and that's one reason they buy in, because they understand the price premium. You know, they understand it more as a percentage than an absolute number, because obviously in India, the premium, the ticket price could be different than it's gonna be in Japan. They have the tools to do that, and I think the trend we've noticed is, depending on the country, they charge a similar premium than they would somewhere else. That's not really an issue. I think they understand how to maximize their profit.

Speaker #4: And they understand it more as a percentage than an absolute number because obviously in India, the premium, the ticket price could be different than it's going to be in Japan.

Speaker #4: So they have the tools to do that. And I think the trend we've noticed is, depending on the country, they charge a similar premium as they would somewhere else.

Speaker #4: So that's not really an issue. I think they understand how to maximize their profit.

Speaker #5: Perfect. Thanks, Rich.

Eric Wold: Perfect. Thank you, Rich.

Speaker #2: One moment for our next question. Our next question comes from Michael Hickey with StoneX. Your line is open.

Operator: One moment for our next question. Our next question comes from Mike Hickey with StoneX. Your line is open.

Mike Hickey: Hey, Rich, Natasha, Jennifer. Congrats, guys. Amazing. First question, Rich, just on your film cameras, really, really remarkable run here you've had with, centers in 25 and getting 16 Oscar nominations is really remarkable. One Battle After Another as well, which I think was under digital cameras, -

Speaker #6: Hey, Rich, Natasha, Jennifer. Congrats, guys. Amazing. First question, Rich: just on your film cameras—really remarkable run here you’ve had with centers in ’25 and getting 16 Oscar nominations is really remarkable.

Speaker #6: And one battle for another as well, which I think was under digital cameras.

Speaker #4: No, sorry, Mike. We got over 50 Oscar nominations overall.

Rich Gelfond: Sorry, Mike. We got, like, over 50 Oscar nominations overall.

Richard Gelfond: Sorry, Mike. We got, like, over 50 Oscar nominations overall.

Mike Hickey: Totally, but I just focused on centers. You're right. I mean, it's truly incredible. 2023 was Oppenheimer. This year you've got The Odyssey, Dune: Part Two, you got your next-gen cameras with The Odyssey, which are quieter and lighter. One, I guess, you know, how do you know? I'm curious how you're going to answer this, Rich. How do you know the right films to pick? Some are obvious, but when you look at something like Sinners, I mean, that was not obvious. Obviously, that's been an incredible success. You know, how are you, and I'm sure it's an ecosystem thing, but how are you approaching and finding the right films to pick when you have this consistent level of success, obviously durable?

Speaker #6: Totally. But just focus on centers. But you're right. I mean, it's truly incredible. And '23 was Oppenheimer. This year, you've got Odyssey. Dune. You got your next-gen cameras with Odyssey, which are quieter and lighter.

Speaker #6: One, I guess, how do you know? I'm curious how you're going to answer this, Rich. How do you know the right films to pick?

Speaker #6: Because some are obvious, but when you look at something like centers, I mean, that was not obvious. And obviously, that's been an incredible success.

Speaker #6: How are you? And I'm sure it's an ecosystem thing, but how are you approaching and finding the right films to pick when you have this consistent level of success?

Speaker #6: Obviously, durable. What opportunities? Obviously, we see a lot of them, but I imagine your phone is ringing more than ever. But it's installations, maybe a better opportunity to scale more of these 70-meter film opportunities or just relationships with filmmakers' talent and their competitive vote over just sort of curious how this builds your overall opportunity over time.

Mike Hickey: What opportunities? Obviously, we see a lot of them, but I imagine your phone is ringing more than ever. It's installations, maybe a better opportunity to scale more, these 70 millimeter film opportunities, or just, you know, relationships with filmmakers, talent, and their competitive vote overall. Sort of curious, you know, how this builds your overall up over time?

Speaker #4: So Mike, it's a perfect time to ask you that question. Because I've been out in LA for over a month right now, and I've been meeting with filmmakers.

Rich Gelfond: Mike, it's the perfect time to ask you that question because I've been out in LA for over a month right now, and, you know, I've been meeting with filmmakers, I've been meeting with studios, I've been meeting with producers, and you're quite right. The demand is, you know, very elevated from over it was before. I'll give you a couple of categories of answer. Like, something that never would have happened yet years ago, but like, well-known filmmakers who you know will approach us and will say, I wanna do an IMAX film. They'll actually do, like, a pitch, and they'll come in, and they'll tell us why, what it's about, and why they want to do it in IMAX, and why it's important to them.

Richard Gelfond: Mike, it's the perfect time to ask you that question because I've been out in LA for over a month right now, and, you know, I've been meeting with filmmakers, I've been meeting with studios, I've been meeting with producers, and you're quite right. The demand is, you know, very elevated from over it was before. I'll give you a couple of categories of answer. Like, something that never would have happened yet years ago, but like, well-known filmmakers who you know will approach us and will say, I wanna do an IMAX film. They'll actually do, like, a pitch, and they'll come in, and they'll tell us why, what it's about, and why they want to do it in IMAX, and why it's important to them.

Speaker #4: I've been meeting with studios. I've been meeting with producers and your quite right, the demand is very elevated from over it was before. So I'll give you a couple of categories of answer.

Speaker #4: Something that never would have happened yet years ago, but well-known filmmakers who you know will approach us and will say, "I want to do an IMAX film," and they'll actually do a pitch.

Speaker #4: And they'll come in, and they'll tell us what it's about and why they want to do it in IMAX, and why it's important to them.

Speaker #4: And that's a category, obviously, I can't say who, but last week we got pitched by some very well-known filmmakers. And it's a little bit off the beaten track.

Rich Gelfond: That's a category, and obviously, I can't say who, but last week we got pitched by some very well-known filmmakers, and it's a little bit off the beaten track. If someone had sent in a script, we might not have been interested, but we are interested because it was very unusual. It doesn't fit in a box. Another way, which I think is really important, is the relationships we have with existing filmmakers. You know, one example would be, we've done a lot of films with Joseph Kosinski over the years. Then he did Top Gun: Maverick, and obviously, it was a huge success and a huge success in IMAX. Then we did F1 with him, which is not as well-known IP, obviously, and it became one of our top films of the year.

Richard Gelfond: That's a category, and obviously, I can't say who, but last week we got pitched by some very well-known filmmakers, and it's a little bit off the beaten track. If someone had sent in a script, we might not have been interested, but we are interested because it was very unusual. It doesn't fit in a box. Another way, which I think is really important, is the relationships we have with existing filmmakers. You know, one example would be, we've done a lot of films with Joseph Kosinski over the years. Then he did Top Gun: Maverick, and obviously, it was a huge success and a huge success in IMAX. Then we did F1 with him, which is not as well-known IP, obviously, and it became one of our top films of the year.

Speaker #4: So if someone had sent in a script, we might not have been interested, but we are interested because it was very unusual. It doesn't fit in a box.

Speaker #4: Another way, which I think is really important, is the relationships we have with existing filmmakers. So one example would be we've done a lot of films with Joe Kaczynski, over the years, and then he did Top Gun: Maverick.

Speaker #4: And obviously, it was a huge success. And a huge success in IMAX. And then we did F1 with him, which is not as well-known IP.

Speaker #4: Obviously, and it became one of our top films of the year. So Joe is working on his next project, which is Miami Vice. And he came to us, and then we started talking to him about the different opportunities to shoot in IMAX.

Rich Gelfond: Joe is working on his next project, which is Miami Vice, and he came to us, and then we started talking to him about the different opportunities to shoot in IMAX and, you know, different tools and, you know, we're still working our way through that. Then, you know, it'll be studios who will say, you know, by way of example, you know, Warner knows they've got 30 Oscar nominations, so they're looking at their slate, the people who run the studio, and they're going to a filmmaker and they're saying, You know, hey, have you thought of shooting this with either IMAX film or IMAX digital cameras? There's a lot of opportunities that come in.

Richard Gelfond: Joe is working on his next project, which is Miami Vice, and he came to us, and then we started talking to him about the different opportunities to shoot in IMAX and, you know, different tools and, you know, we're still working our way through that. Then, you know, it'll be studios who will say, you know, by way of example, you know, Warner knows they've got 30 Oscar nominations, so they're looking at their slate, the people who run the studio, and they're going to a filmmaker and they're saying, You know, hey, have you thought of shooting this with either IMAX film or IMAX digital cameras? There's a lot of opportunities that come in.

Speaker #4: And different tools and we're still working our way through that. And then it'll be studios who will say, by way of example, Warner knows it got 30 Oscar nominations.

Speaker #4: So they're looking at their slate, the people who run the studio, and they're going to a filmmaker and they're saying, "Hey, have you thought of shooting this with either IMAX film or IMAX digital cameras?" So there's a lot of opportunities that come in.

Speaker #4: And I think maybe the most promising one is the filmmakers who work with us before. And Film for IMAX and their desire to use IMAX technology.

Rich Gelfond: I think maybe the most promising one is the filmmakers who worked with us before and filmed for IMAX and their, you know, desire to use IMAX technology. You know, there are a lot of ways, but, you know, having spent the last month with a level of meetings that I'd never seen before and the types of talent coming in and executives, you know, there's lots of projects coming in. You know, without spending much more time on this, if you don't know the filmmaker that well, you know, you look at their reputation, you look at other things that they've shot and what it looks like. A big thing for us is the filmmakers also leaning in to the IMAX of it all. A great recent example of that was Ryan Coogler.

Richard Gelfond: I think maybe the most promising one is the filmmakers who worked with us before and filmed for IMAX and their, you know, desire to use IMAX technology. You know, there are a lot of ways, but, you know, having spent the last month with a level of meetings that I'd never seen before and the types of talent coming in and executives, you know, there's lots of projects coming in. You know, without spending much more time on this, if you don't know the filmmaker that well, you know, you look at their reputation, you look at other things that they've shot and what it looks like. A big thing for us is the filmmakers also leaning in to the IMAX of it all. A great recent example of that was Ryan Coogler.

Speaker #4: So there are a lot of ways, but having spent the last month with a level of meetings that I'd never seen before, and the types of talent coming in and executives, there are lots of projects coming in.

Speaker #4: And without spending much more time on this, if you don't know the filmmaker that well, you look at their reputation, you look at other things that they've shot, and what it looks like.

Speaker #4: A big thing for us is the filmmakers also leaning in to the IMAX of it all and a great recent example of that was Ryan Coogler and centers, as you probably remember.

Rich Gelfond: In Sinners, as you probably remember, you know, he made a pamphlet about aspect ratios. He talked a lot about IMAX everywhere he went, and that, you know, that really helped a lot. It's all of the above.

Richard Gelfond: In Sinners, as you probably remember, you know, he made a pamphlet about aspect ratios. He talked a lot about IMAX everywhere he went, and that, you know, that really helped a lot. It's all of the above.

Speaker #4: He made a pamphlet about aspect ratios. He talked a lot about IMAX everywhere he went. And that really helped a lot. So it's all of the above.

Speaker #6: Nice. Thanks, Rich. The second question, big film for you. Narnia is very important film, very important partner. And I think with anyone you sort of crack the here, it seems like with just curious, as you continue to with Dad or whoever on the team you're talking with, do you get the sense that they're more motivated, Rich, to make this movie best?

Mike Hickey: Thanks, Rich. The second question, big film for you, Narnia. Very important film, very important partner, and I think with anyone you sort of crack here, seems like. Just curious, you know, as you continue to Ted or whoever on the team you're talking with, you know, do you sense the sense that they're more motivated, Rich, to make this movie a success? Do you also feel like, you know, that there's a bigger opportunity maybe in the future with this model that you've created here, which obviously was smart? Or maybe your normal model. You know, you use your canvas, I think just your, I guess, sort of your excitement for Narnia, the input from Netflix and the future opportunity you would see with that really for yourself and the broader end.

Speaker #6: Do you also feel like that there's a bigger opportunity maybe in the future with this model that you've created here, which obviously was a smart or maybe your normal model?

Speaker #6: You use your cameras. I guess sort of your excitement for Narnia. The input from Netflix and the future opportunity you would see with that relationship for yourself and the broader industry.

Speaker #4: So the first point, Mike, is that we make movies with filmmakers. And studios or streamers are part of the system. So Greta, as you know, came to us because she was excited about releasing it in IMAX.

Rich Gelfond: The first point, Mike, is that, you know, we make movies with filmmakers and, you know, studios or streamers are part of the system. Greta, as you know, came to us because she was excited about releasing it in IMAX, and together, we planned to talk this through with Netflix and brought Netflix into the fold. The most important thing is that Greta is incredibly excited, and when she thinks about how to make the movie, and she thinks about the sets, and she thinks about the magnitude and scale, she really leans in. You know, it's too early to see a rough cut, but from conversations with her, I believe she's making a movie that's gonna look fantastic in IMAX, and that's the thing that probably makes me the most confident.

Richard Gelfond: The first point, Mike, is that, you know, we make movies with filmmakers and, you know, studios or streamers are part of the system. Greta, as you know, came to us because she was excited about releasing it in IMAX, and together, we planned to talk this through with Netflix and brought Netflix into the fold. The most important thing is that Greta is incredibly excited, and when she thinks about how to make the movie, and she thinks about the sets, and she thinks about the magnitude and scale, she really leans in. You know, it's too early to see a rough cut, but from conversations with her, I believe she's making a movie that's gonna look fantastic in IMAX, and that's the thing that probably makes me the most confident.

Speaker #4: And together, we plan to talk this through with Netflix and brought Netflix into the fold. So the most important thing is that Greta is incredibly excited.

Speaker #4: And when she thinks about how to make the movie and she thinks about the sets, and she thinks about the magnitude and scale, she really leans in.

Speaker #4: And it's too early to see a rough cut, but from conversations with her, I believe she's making a movie that's going to look fantastic in IMAX.

Speaker #4: And that's the thing that probably makes me the most confident. In terms of the business model, I mean, Netflix has approached us about a number of projects since we did that deal with Greta.

Rich Gelfond: In terms of the business model, I mean, Netflix has approached us about a number of projects since we did that deal with Greta. You know, some of them we did under different sorts of models, like Frankenstein, with Guillermo del Toro and a number of other things over time. You know, we're always talking to them about different ideas. My hope when I did this deal was this model's gonna work so well, and I'm not talking about only the box office. Remember, the point of it is to create a buzz and a cultural event. I think when Greta releases this in IMAX, it will be a cultural event. I think they're gonna get the benefit from that of increased streaming hits after that. Remember, it's a series of books.

Richard Gelfond: In terms of the business model, I mean, Netflix has approached us about a number of projects since we did that deal with Greta. You know, some of them we did under different sorts of models, like Frankenstein, with Guillermo del Toro and a number of other things over time. You know, we're always talking to them about different ideas. My hope when I did this deal was this model's gonna work so well, and I'm not talking about only the box office. Remember, the point of it is to create a buzz and a cultural event. I think when Greta releases this in IMAX, it will be a cultural event. I think they're gonna get the benefit from that of increased streaming hits after that. Remember, it's a series of books.

Speaker #4: And some of them we did under different sorts of models, like Frankenstein, with Guillermo del Toro, and a number of other things over time.

Speaker #4: And we're always talking to them about different ideas. My hope when I did this deal was this model is going to work so well.

Speaker #4: And I'm not talking about only the box office, but remember the point of it is to create a buzz and a cultural event. And I think when Greta releases this, in IMAX, it will be a cultural event.

Speaker #4: And I think they're going to get the benefit from that, of increased streaming, hits, after that. Remember, it's a series of books. It's not a one-off.

Rich Gelfond: It's not a one-off, it's gonna help build an event, and I think that's what we really do. I'm very optimistic that, you know, when the IMAX audience sees that movie, there's gonna be the kind of reaction which is gonna lead to a number of good things.

Richard Gelfond: It's not a one-off, it's gonna help build an event, and I think that's what we really do. I'm very optimistic that, you know, when the IMAX audience sees that movie, there's gonna be the kind of reaction which is gonna lead to a number of good things.

Speaker #4: And it's going to help build an event. And I think that's what we really do. So I'm very optimistic that when the IMAX audience sees that movie, there's going to be the kind of reaction which is going to lead to a number of good things.

Speaker #6: Thanks, Rich. Good luck, guys.

Mike Hickey: Thanks, Rich. Good luck, guys.

Speaker #1: In the interest of time as well, everyone to participate in the Q&A portion of today's presentation, we ask that you limit yourself to one question.

Operator: In the interest of time, and so everyone to participate in the Q&A portion of today's presentation, we ask that you limit yourself to one question. One moment for our next question. Our next question comes from Chad Beynon with Macquarie Capital. Your line is open.

Speaker #1: One moment for our next question. Our next question comes from Chad Vanon with Macquarie Capital. Your line is open.

Speaker #7: Hi, good afternoon. Thanks for taking my question. You guys, at the Investor Day and reiterated today, talked about the high single-digit low double-digit growth through '28 and hopefully beyond.

Chad Beynon: Hi, good afternoon. Thanks for taking my question. You guys, at the Investor Day and reiterated today, talked about the high single digit, low double-digit growth through 2028 and hopefully beyond. I think a big component of that is that under-penetrated rest of world opportunity that you've spoken about. Rich, what do you think the main catalyst is at this point? The business model makes more sense every year for these exhibitors. You're clearly putting up the results. Local language is working. What's the next inflection point to grow the pipeline for that rest of world? Thanks.

Speaker #7: I think a big component of that is that underpenetrated rest of the world opportunity that you've spoken about. So, Rich, what do you think the main catalyst is at this point?

Speaker #7: The business model makes more sense every year for these exhibitors. You're clearly putting up the results. Local language is working. So what's the next inflection point to grow the pipeline for that rest of the world?

Speaker #7: Thanks.

Speaker #4: So when you look at the slate going ahead this year, and I believe the financial returns that follow for the exhibitors, for us, we've talked a lot about that.

Rich Gelfond: When you look at the slate going ahead this year, and I believe the financial returns that follow for the exhibitors, you know, for us, we've talked a lot about that. For the exhibitors, I think it just makes so much sense. You know, obviously, exhibition has had its challenge in its traditional industry, and I think it's certainly looking for growth opportunities for it, and for its network and its strategy. I think, you know, they look at their box or someone else's box next door that's selling out, and it's getting very attractive paybacks. You know, I think that's gonna have a big influence and, you know, using some examples, for markets in Japan, in 2025, the per screen average was up an enormous amount from 2024.

Richard Gelfond: When you look at the slate going ahead this year, and I believe the financial returns that follow for the exhibitors, you know, for us, we've talked a lot about that. For the exhibitors, I think it just makes so much sense. You know, obviously, exhibition has had its challenge in its traditional industry, and I think it's certainly looking for growth opportunities for it, and for its network and its strategy. I think, you know, they look at their box or someone else's box next door that's selling out, and it's getting very attractive paybacks. You know, I think that's gonna have a big influence and, you know, using some examples, for markets in Japan, in 2025, the per screen average was up an enormous amount from 2024.

Speaker #4: But for the exhibitors, I think it just makes so much sense. And obviously, exhibition has had its challenge, and it's traditional industry. And I think it's certainly looking for growth opportunities for its network and its strategy.

Speaker #4: And I think they look at their box or someone else's box. Next door, that's selling out and is getting very attractive paybacks. I think that's going to have a big influence.

Speaker #4: And using some examples from markets in Japan, in 2025, the per screen average was up an enormous amount from 2024. So the returns to the exhibitors are much more attractive.

Rich Gelfond: The returns to the exhibitors are much more attractive. It probably doesn't surprise you that there's a lot of activity coming out of Japan in 2026, and our team was over there, and there's a fairly large number of deals under discussion. Also, Avatar really did extremely well in certain areas like France and Germany, where it was among the leading markets in the world, in numbers that were a step change over the previous year. There's a lot of activity this year, inquiries coming out of France and Germany. I think in general, it's looking at performance and trying to replicate it and bring it forward.

Richard Gelfond: The returns to the exhibitors are much more attractive. It probably doesn't surprise you that there's a lot of activity coming out of Japan in 2026, and our team was over there, and there's a fairly large number of deals under discussion. Also, Avatar really did extremely well in certain areas like France and Germany, where it was among the leading markets in the world, in numbers that were a step change over the previous year. There's a lot of activity this year, inquiries coming out of France and Germany. I think in general, it's looking at performance and trying to replicate it and bring it forward.

Speaker #4: So it probably doesn't surprise you that there's a lot of activity coming out of Japan in '26. And our team was over there, and there's a fairly large number of deals under discussion.

Speaker #4: Also, Avatar really did extremely well in certain areas like France and Germany. Where it was among the leading markets in the world in numbers that were a step change over the previous year.

Speaker #4: So there's a lot of activity this year, inquiries coming out of France and Germany. So I think in general, it's looking at performance and trying to replicate it and bring it forward.

Speaker #4: But then you add some kind of obvious things like the slate this year and there's lots of movies. As I said in my prepared remarks, whether it's Mandalorian or whether it's Odyssey or whether it's Dune Part II, and I think people want to get open in advance of that.

Rich Gelfond: You know, you add some kind of obvious things like the slate this year. You know, there's lots of movies, as I said in my prepared remarks, you know, whether it's Mandalorian or whether it's Odyssey or whether it's Dune: Part Two. I think people want to get open in advance of that. The people who opened before Avatar, we looked at the number I don't recall, but I think we opened, like, 27 theaters right before Avatar opened. You look at the performance of those theaters. By being open for Avatar, their ROI and their payback period were far superior to what would have been if they waited. Our team around the world is using that data and sharing it, and I think that's what's helping create a catalyst.

Richard Gelfond: You know, you add some kind of obvious things like the slate this year. You know, there's lots of movies, as I said in my prepared remarks, you know, whether it's Mandalorian or whether it's Odyssey or whether it's Dune: Part Two. I think people want to get open in advance of that. The people who opened before Avatar, we looked at the number I don't recall, but I think we opened, like, 27 theaters right before Avatar opened. You look at the performance of those theaters. By being open for Avatar, their ROI and their payback period were far superior to what would have been if they waited. Our team around the world is using that data and sharing it, and I think that's what's helping create a catalyst.

Speaker #4: The people who open before Avatar, we looked at the number. I don't recall. But I think we opened like 27 theaters right before Avatar opened.

Speaker #4: And you look at the performance of those theaters. By being open for Avatar, there are a why. And their payback periods were far superior to what would have been if they waited.

Speaker #4: And our team around the world is using that data and sharing it. And I think that's what's helping create a catalyst. We're also being a little bit more flexible as we talked about in our prepared remarks in using some of our capital in different places in the world where we know the results are really terrific.

Rich Gelfond: We're also being a little bit more flexible as we talked about, in our prepared remarks, in using some of our capital in different places in the world where we know the results are really terrific. You know, I'll use Japan again as an example, but the numbers were so strong and compelling, the payback periods are fairly short and the economics very good. We're seeding some of those markets by using a small amount of our capital to help jumpstart them. I'd say all of that.

Richard Gelfond: We're also being a little bit more flexible as we talked about, in our prepared remarks, in using some of our capital in different places in the world where we know the results are really terrific. You know, I'll use Japan again as an example, but the numbers were so strong and compelling, the payback periods are fairly short and the economics very good. We're seeding some of those markets by using a small amount of our capital to help jumpstart them. I'd say all of that.

Speaker #4: So I'll use Japan again as an example. But the numbers were so strong and compelling. The payback periods are fairly short, and the economics are very good.

Speaker #4: So we're seeding some of those markets by using a small amount of our capital to help jump-start them. So I'd say all of that.

Speaker #7: Thanks, Rich. Appreciate it, guys. Good quarter.

Scott Hastings: Thanks, Rich. Appreciate it, guys. Good quarter.

Chad Beynon: Thanks, Rich. Appreciate it, guys. Good quarter.

Speaker #1: One moment for our next question. Our next question comes from Steve Franco with Rosenblatt Securities. Your line is open.

Operator: One moment for our next question. Our next question comes from Steve Frankel with Rosenblatt Securities. Your line is open.

Steve Frankel: Good afternoon. Rich, you had a big install quarter in Q4. Given the demand situation, how much more can you ramp your team and, or, to take that to another level?

Speaker #8: Good afternoon. Rich, you had a big install quarter in Q4. Given the demand situation, how much more can you ramp? Your team to take that to another level?

Steve Frankel: Good afternoon. Rich, you had a big install quarter in Q4. Given the demand situation, how much more can you ramp your team and, or, to take that to another level?

Speaker #4: Yeah, it's just a question of timing, Steve. So if you ask me how many we could install in the fourth quarter, the answer is an awful lot.

Rich Gelfond: It's just a question of timing, Steve. You know, if you asked me how many we could install in Q4, the answer was an awful lot because it's like a analyze it like a supply chain. Can you order the parts in advance? Can you do the designs? Can you deploy the teams? Sort of in any given year, it's a much larger number than we're doing now. If you said to me, you know, people wanna open for Hail Mary in three weeks, you know, it's more difficult to do that. Over the longer term, you know, it's. I never use the word infinite, but you certainly could open a lot more if you wanted to. There's not much constraint on that.

Richard Gelfond: It's just a question of timing, Steve. You know, if you asked me how many we could install in Q4, the answer was an awful lot because it's like a analyze it like a supply chain. Can you order the parts in advance? Can you do the designs? Can you deploy the teams? Sort of in any given year, it's a much larger number than we're doing now. If you said to me, you know, people wanna open for Hail Mary in three weeks, you know, it's more difficult to do that. Over the longer term, you know, it's. I never use the word infinite, but you certainly could open a lot more if you wanted to. There's not much constraint on that.

Speaker #4: Because it's like, analyze it like a supply chain. So, can you order the parts in advance? Can you do the designs? Can you deploy the teams?

Speaker #4: So sort of at any given year, it's a much larger number than we're doing now. If you said to me, "People want to open for Hail Mary," in three weeks, it's more difficult to do that.

Speaker #4: But over the longer term, I never use the word infinite, but you certainly could open a lot more if you wanted to. There's not much constraint on that.

Speaker #8: Okay, great. Thank you.

Steve Frankel: Okay, great. Thank you.

Speaker #1: One moment for our next question. Our next question comes from David Joyce with Seaport Research Partners. Your line is open.

Operator: One moment for our next question. Our next question comes from David Joyce with Seaport Research Partners. Your line is open.

Speaker #9: Thank you. Given that you've got a lot of cash on your balance sheet now, how are you seeing your mix of sales versus JRSAs this year?

David Joyce: Thank you. Given that you've got a lot of cash on your balance sheet now, how are you seeing your mix of sales versus JRSA this year? Given that you've got more of that cash and it's a strong box office year, how are you thinking of the relative ROI between those approaches? Thanks.

Speaker #9: Given that you've got more of that cash and it's a strong box office year, how are you thinking of the relative ROI between those approaches?

Speaker #9: Thanks.

Speaker #10: Hi, David. We see it as a loss of opportunity for us to use our balance sheet. And we talked about it in Investor Day as well.

Natasha Fernandes: Hi, David. We see it as a lots of opportunity for us to use our balance sheet, we talked about it in Investor Day as well. The opportunity to look at those top-performing zones, and could we help the installation go faster by essentially seeding the money, as Rich was just talking about, and in return, getting some sort of change in our deal type as well, or change in our economic, our standard economics, so that we could get that return as well, but have the theaters open earlier. I think that that's the opportunity that we have with this strong balance sheet, with our liquidity position sitting at $550 million. It is a significant opportunity in front of us to roll out our backlog at a faster pace and also look at more opportunities.

Speaker #10: But the opportunity to look at those top-performing zones and could we help the installation go faster by essentially seeding the money, as Rich was just talking about, and in return, getting some sort of change in our deal type as well, or change in our economic, our standard economics.

Speaker #10: So that we could get that return as well. But have the theaters open earlier. And I think that that's the opportunity that we have with this strong balance sheet, with our liquidity position sitting at 550 million dollars.

Speaker #10: It is a significant opportunity in front of us to roll out our backlog at a faster pace and also look at more opportunities and we talked about it at Investor Day of second screens or top-performing locations, flagships.

Natasha Fernandes: You know, we talked about it at Investor Day of, you know, second screens or top-performing locations, flagships. We think that while we look at not only investing in our business with respect to our own technology and the way that we operate and the Filmed for IMAX program, and we invested in cameras, there's also the opportunity to look at expanding the network. I think what's been great is, this past year, we expanded our domestic network by 4%, and we expanded our rec the world by over 8%. We are using our capital in the right way right now, and we see the ability to ramp that up.

Speaker #10: And so we think that while we look at not only investing in our business with respect to our own technology and the way that we operate and the film for IMAX program, and we invested in cameras, there's also the opportunity to look at expanding the network.

Speaker #10: And I think what's been great is this past year, we expanded our and we expanded our rest of the world by over 8%. And so we are using our capital in the right way right now.

Speaker #10: And we see the ability to ramp that up.

Speaker #1: Great. Thank you. One moment for our next question. Our next question comes from David Karnofsky with JP Morgan. Your line is open.

David Joyce: Great. Thank you.

Operator: One moment for our next question. Our next question comes from David Karnovsky with J.P. Morgan. Your line is open.

Speaker #11: Hi, this is Chris Scott Hastings on for David Karnofsky. Thanks for the question. I just want to ask on STL installs and upgrades this year.

Scott Hastings: Hi, this is Scott Hastings on for David Karnovsky. Thanks for the question. I just wanna ask on STL installs and upgrades this year, is there any insight you can give us on expectations regarding market mix? You've been talking about more opportunities in the US and whatnot. Should we expect revenue per install and revenue per upgrade to be relatively stable year-over-year? Thank you.

Speaker #11: Is there any insight you can give us on expectations regarding market mix? You've been talking about more opportunities in the US and whatnot. Should we expect revenue per install and revenue per upgrade to be relatively stable year over year?

Speaker #11: Thank you.

Speaker #10: So generally, yes. I think that we have a standard sort of selling price now. The opportunity is at the box office grows, and you would have seen it in the incrementality in our model in 2025.

Natasha Fernandes: Generally, yes, I think that we have a standard sort of selling price. The opportunity is, as the box office grows, and you would have seen it in the incrementality in our model in 2025, the JV system, we have the ability to capture more box office there and as our box office grows. I think that as you look at the mix, we did guide towards 160 to 175 systems with a mix of 45% to 55% sales to JV mix. I think we're still tracking towards that. That's what we've guided publicly, and we'll keep working towards that. I think the opportunity, though, is looking at how do we capture more from those JV locations as the box office grows there as well.

Speaker #10: The JV systems, we have the ability to capture more box office there. And as our box office grows. And so I think that as you look at the mix, we did guide towards the 160 to 175 systems with a mix of 45 to 55 percent sale to JV mix.

Speaker #10: So I think we're still tracking towards that. That's what we've guided publicly, and we'll keep working towards that. I think the opportunity, though, is looking at how we capture more from those JV locations as the box office grows there as well.

Speaker #10: And that was one of the significant contributors to us not only having the over 45 percent adjusted EBITDA margin, but also our cash flows that came in at a record level.

Natasha Fernandes: That was one of the significant contributors to us, not only having the over 45% adjusted EBITDA margin, but also our cash flows that came in at a record level.

Speaker #11: Okay, gotcha. Thank you.

Scott Hastings: Okay, gotcha. Thank you.

Speaker #1: One moment for our next question. Our next question comes from Eric Handler with Roth Capital. Your line is open.

Operator: One moment for our next question. Our next question comes from Eric Handler with Roth Capital. Your line is open.

Speaker #12: Good afternoon. Thanks for the question. Just a little follow-up to that last question. I wonder if you could talk about how you're thinking about capital allocation at this point.

Rich Gelfond: Good afternoon. Thanks for the question. Just a little follow-up to that last question. Wonder if you could talk about how you're thinking about capital allocation at this point. You don't have debt due until 2030.

Eric Handler: Good afternoon. Thanks for the question. Just a little follow-up to that last question. Wonder if you could talk about how you're thinking about capital allocation at this point. You don't have debt due until 2030.

Speaker #12: You don't have debt due until 2030. You should have more free cash flow than last year. How are you thinking about buybacks? You've had good luck you've had good returns with the JRSAs.

Eric Handler: ... you know, you should have, you know, more free cash flow than last year. How are you thinking about buybacks? You've had good luck, you've had good returns with the JRSAs. Where else can you sort of invest internally that you think would get high returns as well?

Speaker #12: Where else can you sort of invest internally that you think would get high returns as well?

Speaker #4: So Eric, I think the best place we can invest is in our network growth. And that's because when you look at PSAs this year, compared to last year, when you look at the films, that we have in 26 to slate but maybe more importantly, you look at the backlog of films in 27 and 28.

Rich Gelfond: Eric, I think the best place we can invest is in our network growth, and that's because, you know, when you look at PSAs this year, compared to last year, when you look at the films that we have in 26 to slate, but maybe more importantly, you look at the backlog of films in 27 and 28. Like, we have an insight that most operators around the world don't have, which is we know what our slate is gonna be going forward, and we have kind of a unique perspective on how it's gonna perform. We have a perspective also on how IMAX fits in into the ecosystem.

Richard Gelfond: Eric, I think the best place we can invest is in our network growth, and that's because, you know, when you look at PSAs this year, compared to last year, when you look at the films that we have in 26 to slate, but maybe more importantly, you look at the backlog of films in 27 and 28. Like, we have an insight that most operators around the world don't have, which is we know what our slate is gonna be going forward, and we have kind of a unique perspective on how it's gonna perform. We have a perspective also on how IMAX fits in into the ecosystem.

Speaker #4: We have an insight that most operators around the world don't have, which is we know what our slate is going to be going forward.

Speaker #4: And we have kind of a unique perspective on how it's going to perform. And we have a perspective also on how IMAX fits in into the ecosystem.

Speaker #4: So if we have an opportunity growth or leverage our returns through maybe steering a deal, one way or the other, we think the re-level of IMAX is probably the best opportunity there is.

Rich Gelfond: If we have an opportunity to leverage our network growth or leverage our returns through maybe steering a deal one way or the other way, you know, we think the releveling of IMAX is probably the best opportunity there is in terms of where to put our money. I would also add that, you know, people didn't think of it this way, but Natasha mentioned it briefly in her remarks. When we issued our new convert and we took out the old convert, we could have taken out the shares that were in the money in two ways. One, we could have given people shares, or two, we could have used cash, and we took them out with cash, which effectively lowered dilution and was analogous to a share buyback.

Richard Gelfond: If we have an opportunity to leverage our network growth or leverage our returns through maybe steering a deal one way or the other way, you know, we think the releveling of IMAX is probably the best opportunity there is in terms of where to put our money. I would also add that, you know, people didn't think of it this way, but Natasha mentioned it briefly in her remarks. When we issued our new convert and we took out the old convert, we could have taken out the shares that were in the money in two ways. One, we could have given people shares, or two, we could have used cash, and we took them out with cash, which effectively lowered dilution and was analogous to a share buyback.

Speaker #4: In terms of where to put our money. Now, I would also add that people didn't think of it this way, but Natasha mentioned it briefly in her remarks.

Speaker #4: But when we issued our new convert, and we took out the old convert, we could have taken out the shares that were in the money in two ways.

Speaker #4: One, we could have given people shares. Or two, we could have used cash. And we took them out with cash, which effectively lowered dilution and was analogous to a share buyback.

Speaker #4: So, obviously, we're open to being opportunistic in various ways, but we're very focused on how to capitalize on our growth.

Rich Gelfond: Obviously, you know, we're open to being opportunistic in various ways, but if, you know, we're very focused on how to capitalize on our growth.

Richard Gelfond: Obviously, you know, we're open to being opportunistic in various ways, but if, you know, we're very focused on how to capitalize on our growth.

Speaker #12: Thank you.

Eric Handler: Thank you.

Speaker #1: One moment for our next question. Our next question comes from Patrick Shaw with Barrington Research. Your line is open.

Operator: One moment for our next question. Our next question comes from Patrick Shaw with Barrington Research. Your line is open.

Speaker #13: Hi, thanks for taking the question. Just in terms of installing into a second screen in a zone versus entering a new market, is there sort of any difference in the return profile or the speed of getting to, sort of, I guess, a steady state of PSAs?

James Goss: Hi, thanks for taking the question. Just in terms of installing into like a second screen in a zone versus entering a new market, is there sort of any difference in the return profile or the speed of getting to sort of like, I guess, a steady state of PSAs?

Patrick Shaw: Hi, thanks for taking the question. Just in terms of installing into like a second screen in a zone versus entering a new market, is there sort of any difference in the return profile or the speed of getting to sort of like, I guess, a steady state of PSAs?

Rich Gelfond: There doesn't appear to be a difference because, you know, if we're putting a second theater in a zone where the exhibitor is, you see a very successful zone, and the brand is well known there, so you're leveraging off of your previous success. I know we've been saying for a while that, you know, we're gonna do more of that, but we've actually taken some concrete steps with different exhibitors and identified specific locations where we would put a second screen in and are discussing with exhibitors. You know, seemingly, they have a more open mind to it than they did in prior years, especially coming off the strong results in 25. I think you should model it as a similar return profile, but I'd be surprised if you didn't see some of that materialize this year.

Speaker #4: There doesn't appear to be a difference because if we're putting a second theater in a zone, or the exhibitor is, it's usually a very successful zone.

Richard Gelfond: There doesn't appear to be a difference because, you know, if we're putting a second theater in a zone where the exhibitor is, you see a very successful zone, and the brand is well known there, so you're leveraging off of your previous success. I know we've been saying for a while that, you know, we're gonna do more of that, but we've actually taken some concrete steps with different exhibitors and identified specific locations where we would put a second screen in and are discussing with exhibitors. You know, seemingly, they have a more open mind to it than they did in prior years, especially coming off the strong results in 25. I think you should model it as a similar return profile, but I'd be surprised if you didn't see some of that materialize this year.

Speaker #4: And the brand is well known there. So you're leveraging off of your previous success. And I know we've been saying for a while that we're going to do more of that.

Speaker #4: But we've actually taken some concrete steps with different exhibitors and identified specific locations where we would put a second screen in and are discussing with exhibitors and seemingly they have a more open mind to it than they did in prior years.

Speaker #4: Especially coming off the strong results in '25. So I think you should model it as a similar return profile but I'd be surprised if you didn't see some of that materialize this year.

Speaker #10: Pat, the other thing to consider is that we have a very experienced team who is involved in the analysis of the returns on locations, and really assessing what is best for the IMAX business.

Natasha Fernandes: Pat, the other thing to consider is that we have a very experienced team who is involved in the analysis of the returns on locations and really assessing what is best for the IMAX business. I think that's one thing we've proven over the years, is that as we continue to expand, we're expanding in locations that are returning to our bottom line as well. We do analyze each of our locations as we look through signing new deals, signing upgrades, signing whether it's second screens or flagships, and assessing to make sure that it hits our ROI hurdles.

Speaker #10: And I think that's one thing we've proven over the years is that as we continue to expand, we're expanding in locations that our returning to our bottom line as well.

Speaker #10: And we do analyze each of our locations as we look through signing new deals, signing upgrades, signing whether it's second screens or flagships. And assessing to make sure that it hits our ROI hurdle.

Speaker #4: Yeah, and I think I'd also like to remind you that the converts we issued the interest rate is 75 basis points. So this is a well-priced capital for us.

Rich Gelfond: Yeah, I think I'd also like to remind you that the converts we issued, the interest rate is 75 basis points. You know, this is a well-priced capital for us.

Richard Gelfond: Yeah, I think I'd also like to remind you that the converts we issued, the interest rate is 75 basis points. You know, this is a well-priced capital for us.

Speaker #13: Okay. Thank you.

James Goss: Okay, thank you.

Patrick Shaw: Okay, thank you.

Speaker #1: One moment for our next question. Our last question comes from Drew Crumb with B. Raleigh Securities. Your line is open.

Operator: One moment for our next question. Our last question comes from Drew Crum with B. Riley Securities. Your line is open.

Drew Crum: Okay, okay, thanks. Hey, guys. Good afternoon, thanks for sneaking me in. Rich, I want to go back to the discussion around alternative content and the partnership with Apple TV for Formula One. You know, it looks like the initial launch is US only. Do you have the ability to add international screens? More broadly speaking, how are you thinking about bringing more live sports into your programming mix? You know, with 2026 being a World Cup year, is that a consideration? Thanks.

Speaker #13: Okay, thanks. Hey guys, good afternoon. Thanks for sneaking me in. Rich, I want to go back to the discussion around alternative content and the partnership with Apple TV for Formula One.

Speaker #13: It looks like the initial launch is US only. Do you have the ability to add international screens and more broadly speaking, how are you thinking about bringing more live sports into your programming mix?

Speaker #13: With 2026 being a World Cup year, is that a consideration? Thanks.

Rich Gelfond: Sure. The answer is, the international, your first part of your question, with F1, Apple only controls the North American rights, so we made the maximum deal we could have made with Apple. We are exploring the possibility of looking at international races, and we are, following up on that. Again, that wouldn't be through Apple, that would be through others, and we announced this in the last two days, so it's a little premature to expand on it yet. Yes, we would be interested in finding a way to expand that. In sports, we've been offered a lot of opportunities, in all kinds of different sports.... You know, sports is complicated. It's got to be the right formula.

Speaker #14: Sure. So the answer is the international, your first part of your question. With F1, Apple only controls the North American rights. So we made the maximum deal we could have made with Apple.

Richard Gelfond: Sure. The answer is, the international, your first part of your question, with F1, Apple only controls the North American rights, so we made the maximum deal we could have made with Apple. We are exploring the possibility of looking at international races, and we are, following up on that. Again, that wouldn't be through Apple, that would be through others, and we announced this in the last two days, so it's a little premature to expand on it yet. Yes, we would be interested in finding a way to expand that. In sports, we've been offered a lot of opportunities, in all kinds of different sports.... You know, sports is complicated. It's got to be the right formula.

Speaker #14: But we are exploring the possibility of looking at international races and we are following up on that. But again, that wouldn't be through Apple.

Speaker #14: That would be through others and we announced this in the last two days. So it's a little premature to expand on it yet. But yes, we would be interested in finding a way to expand that.

Speaker #14: In sports, we've been offered a lot of opportunities in all kinds of different sports. But sports is complicated. It's got to be the right formula.

Speaker #14: It's got to be the right match with the IMAX experience. These rights issues, as you know, are very complicated and expensive. So you've got to model it through and see which sports have a good return.

Rich Gelfond: It's got to be the right match with the IMAX experience. These rights issues, as you know, are very complicated and expensive. You've got to model it through and see which sports have a good return and which don't. We have had some discussions about the World Cup. Again, there's interesting issues there because the finals of the World Cup are on the same weekend that Odyssey opens. You know, it's not you can't just stick your finger in the air and say, Oh, that would be a good idea. You know, there's complicated issues around all of these. Again, you know, I, there's a lot of interesting things going on, and stay tuned, and I think some of them will come to fruition.

Richard Gelfond: It's got to be the right match with the IMAX experience. These rights issues, as you know, are very complicated and expensive. You've got to model it through and see which sports have a good return and which don't. We have had some discussions about the World Cup. Again, there's interesting issues there because the finals of the World Cup are on the same weekend that Odyssey opens. You know, it's not you can't just stick your finger in the air and say, Oh, that would be a good idea. You know, there's complicated issues around all of these. Again, you know, I, there's a lot of interesting things going on, and stay tuned, and I think some of them will come to fruition.

Speaker #14: And which don't. We have had some discussions about the World Cup. But again, there's interesting issues there. Because the finals of the World Cup are on the same weekend that Odyssey opens.

Speaker #14: So, it's not—you can't just stick your finger in the air and say, 'Oh, that would be a good idea.' There are complicated issues around all of these.

Speaker #14: But again, there's a lot of interesting things going on. And stay tuned. I think some of them will come to fruition.

Speaker #13: Okay, thanks, Rich.

Operator: Okay, thanks, Rich.

Drew Crum: Okay, thanks, Rich.

Speaker #1: And I'm not showing any further questions. I'd like to turn the call back to Rich for any further remarks.

Operator: I'm not showing any further questions. I'd like to turn the call back to Rich for any further remarks.

Speaker #4: Yeah, so thank you very much, operator. And thank you all for joining us. I really appreciate people who have invested in us for a period of time.

Rich Gelfond: Thank you very much, operator, and thank you all for joining us. I really appreciate people who have invested in us for a period of time, because 2025, you know, really brought the pieces together. As a management team, you know, we had high hopes, and we always believed that all the pieces could come together and put us, you know, in a new place. I've tried. You know, the quantitative results are evident in what we reported, and the qualitative ones are less evident to you. If you were living my last month in LA, they would be equally obvious to you. It's very gratifying to, you know, be seen as a different company in such an important position, not only in Hollywood, but around the world.

Richard Gelfond: Thank you very much, operator, and thank you all for joining us. I really appreciate people who have invested in us for a period of time, because 2025, you know, really brought the pieces together. As a management team, you know, we had high hopes, and we always believed that all the pieces could come together and put us, you know, in a new place. I've tried. You know, the quantitative results are evident in what we reported, and the qualitative ones are less evident to you. If you were living my last month in LA, they would be equally obvious to you. It's very gratifying to, you know, be seen as a different company in such an important position, not only in Hollywood, but around the world.

Speaker #4: Because 2025, you'll really brought the pieces together. And as a management team, we had high hopes and we always believe that all the pieces could come together.

Speaker #4: And put us in a new place. And I've tried the quantitative results are evident in what we reported. On the qualitative ones, are less evident to you.

Speaker #4: But if you were living my last month in LA, they would be equally obvious. To you. And it's very gratifying to be seen as a different company in such an important position.

Speaker #4: Not only in Hollywood, but around the world. And I think our job is to make sure that we use that place, and we use our momentum to continue the growth rate, and maybe even make it higher.

Rich Gelfond: I think our job is to make sure that we use that place, and we use our momentum to continue the growth rate and, you know, maybe even make it higher and really capitalize on where we come into and making sure that we take full advantage of that opportunity. Thank you all for joining us.

Richard Gelfond: I think our job is to make sure that we use that place, and we use our momentum to continue the growth rate and, you know, maybe even make it higher and really capitalize on where we come into and making sure that we take full advantage of that opportunity. Thank you all for joining us.

Speaker #4: And really capitalize on where we come into, and making sure that we take full advantage of that opportunity. And thank you all for joining us.

Speaker #1: Thank you, ladies and gentlemen. So that's concluded today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

Operator: Thank you, ladies and gentlemen. This does conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

Q4 2025 IMAX Corp Earnings Call

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