Imax Corporation

Good day, and thank you for standing by. Welcome to the third quarter of 2025 IMAX Corporation earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is pre-recorded. I would like to hand the conference over to your first speaker today, Jennifer Horsley, Head of Investor Relations, please go ahead.

Good morning, and thank you for joining us for IMAX's third quarter 2025 earnings conference call. On the call today to review the financial results are Rich Gelfand, Chief Executive Officer, and Natasha Fernandez, our Chief Financial Officer. 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. 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 accompanied slide deck, may include statements that are forward-looking and that pertain to future results or outcomes. 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 FCC 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 the reconciliation to non-GAAP financial measures, are contained in this morning's press release and our earnings materials, which are available on the investor relations page of our website at IMAX.com. With that, let me turn the call over to Mr. Richard Gelfand. Rich?

Thanks, Jennifer. And thanks everyone for joining us as we review an exceptional quarter for IMAX. We delivered our highest third quarter revenue ever with $106.7 million and our best ever quarterly cashflow with $67.5 million. We drove growth of more than 30% across gross margin, net income, adjusted EBITDA and earnings per share. Our third quarter earnings exceeded those of our first and second quarters combined. The third quarter of 2025 was our highest grossing Q3 ever at the global box office with $368 million, up 50% year over year. Signings of new and upgraded IMAX systems surged past our full year total for 2024 with 142 through September. And we are approaching 100 installations Year to date, we now expect to hit the high end of our guidance of between 150 and 160 installations for the full year. You've heard me say that IMAX has been moving into a new position that we've been steadily building something bigger. Throughout the year, we've delivered operating results that exceed expectations and transcend the broader marketplace. Early on, many thought our full year guidance of $1.2 billion in global box office would be difficult to achieve. We're now very well positioned to deliver on that guidance. Following our Q2 earnings call, our stock dipped, with many noting that the Q3 Hollywood slate looked soft on paper, and we proceeded to deliver a record quarter. IMEX is, quite simply, a different company than it was just a few years ago. This quarter is the latest and maybe the clearest example yet on how far we've come. We're consistently delivering a diversified, dynamic portfolio across Hollywood blockbusters, local language titles, and alternative content. And we further separated ourselves from exhibition as a result. In Q3, domestic box office declined 11% year over year. IMAX was up 29% in North America. And globally, IMAX was up 50%. In prior years, when IMAX posted big results, you could usually point to a single defining title, Avatar, Top Gun, Oppenheimer. But now, our performance is increasingly driven by the full breadth of our content strategy. In the third quarter, We had a big film for IMAX Hollywood hit in F1, for which we dramatically over-indexed. But we also had a powerhouse Japanese language release in Demon Slayer, Infinity Castle. We hosted successful music events from Prince and the Grateful Dead. We flexed our muscles in horror, not historically a genre associated with IMAX, with strong openings for The Conjuring and Weapons. We even leveraged the IMAX experience to breathe new life into legacy titles, most notably with our successful re-release of JAWS. IMAX is not just a premium format. We're a platform for event content that spans genres and the globe. And that diversified portfolio and the marketing prowess of the IMAX brand as a beacon of must-see theatricality make us much more valuable to our studio and exhibition partners than ever, which continues to drive strong installation and sales activity. Because audiences in 89 countries and territories around the world know that for awe-inspiring experiences, you must see it in IMAX. The third quarter saw the conclusion of our record run of consecutive film for IMAX blockbusters through the summer. but it also demonstrated our ability to drive success beyond releases shot with our cameras. The halo effect of IMAX extends across a wider collection of films, events, and experiences than ever. F1 the Movie was our highest-grossing Hollywood release of the year, with $97 million worldwide to date, more than 15% of the film's total box office, and less than 1% of the screens. Our success with F1 was powered by our deep collaboration with Apple on the film, the latest example of how IMAX has emerged as a premier partner for streaming platforms. We now have four blockbuster openings on the year, Sinners, Mission Impossible, F1, and Tron Ares, for which we've generated at least 20% of the domestic opening on just over 400 North American screens. That's a feat we've achieved less than a dozen times in our entire history, and four of those came in the last six months. It's also been a watershed year for our local language strategy, as evidenced most recently by Demon Slayer. The global anime phenomenon has earned more than $73 million to date in IMAX. It's our biggest Japanese film of all time. It delivered our biggest September opening ever in North America, an astounding feat for a foreign film, and we indexed 19% of its domestic debut. We're optimistic the film will secure release in China, too, where recent Japanese anime titles, including First Slam Dunk and Suzume, have played very well for us. We've now generated more than $356 million in local language box office year to date, shattering our previous record of $243 million set for the full year 2023. And international films account for 36% of our global box office year-to-date, up from less than 20% last year. As we look ahead to the stretch run of the year, the slate is significantly stronger than last year's strike-depleted offerings. November includes two IMAX-friendly releases in Predator Badlands and The Running Man. We've used our leverage to program another strong Thanksgiving slate, locking in Zootopia 2 and Wicked for Good early. This put us in a position to get tickets on sale before most of the market, with both titles looking strong and tracking. And we continue to round out our slate across music, sports, gaming, and exclusive experiences, Building on our success with The Grateful Dead and Prince in August, we have a concert event with Depeche Mode next week. In December, we'll host the long-awaited re-release of our seminal Stones at the Max, the beloved 1991 concert film which IMAX made with the Rolling Stones and the only concert film shot entirely with IMAX Films cameras. In our second year, we'll expand our offering of the League of Legends gaming tournament next weekend in China with up to 219 locations. And we partnered with Netflix on a buyout promotional event in support of Guillermo del Toro's Frankenstein. Of course, the year concludes with Avatar, Fire and Ash. Our teams have been working with Disney on the launch for a year to ensure that the Brand Association between IMAX and Avatar that has yielded record-breaking success for our company's continues. With our network continuing to grow and our market share surging worldwide, we expect to deliver another strong performance with the franchise. With the carryover of Avatar, 2026 looks strong right out of the gate, highlighted by Christopher Nolan's The Odyssey, Greta Gerwig's IMAX exclusive, Narnia, and Star Wars, The Mandalorian and Grogu, Super Mario Galaxy Movie, Toy Story 5, and Dune Part 3, which will have an IMAX 70 millimeter run in select locations. Additionally, a very compelling 27th slate continues to take shape, including Joe Kaczynski's Miami Vice, which will be filmed for IMAX, Star Wars Starfighter, directed by Sean Levy from Deadpool and Wolverine, Michael B. Jordan's The Thomas Crown Affair, Avengers Secret Wars, and The Batman 2. Our team was in London last month visiting the filmmakers and sets of many of these upcoming releases, including Narnia and Star Wars, and it's clear these are IMAX-sized productions leaning heavily into our technology and format. Our visibility into our Hollywood slate continues to grow, even as we opportunistically program local language blockbusters and alternative content events and experiences throughout the year. Turning to our networks business, signings to date have already surpassed the number of signings we had for the full year of 2024. We're having a lot of success in international markets we prioritize for growth. In Japan, we're pacing towards our single best year for network growth ever, as we expect to end the year with 10 installations, representing a nearly 20% expansion of our footprint. And in Australia, we expect to install six new systems for the full year, more than doubling our footprint to 10 locations nationwide. Year to date, we completed 60% of the installations we've targeted for the full year The level of activity in the sales pipeline is also strong. We just completed an agreement for two new locations in Singapore. We signed multiple agreements this year across two priority markets, France and Germany, entering conversations for new locations in Italy and Spain. We're in discussions regarding new locations in the Middle East, and we continue to drive opportunity with new and existing partners alike across North America, including our recent agreement with Apple Cinemas and several potential new locations across the under-penetrated Southwest region. Given our continued sales momentum and our backlog of 470 systems worldwide, we have clear runway for strong network growth in years to come. In sum, we delivered excellent financial results in the third quarter. As the year draws to a close, we look forward to hosting an Investor Day in December and sharing our strategy for how we grow our performance over the next several years. We continue to believe the best is yet to come. As we look ahead to a year with no less than four massive tentpoles, the Odyssey, Narnia, June Part III, and the Mandalorian and Grogu, for which IMAX is at the center of the filmmaking, marketing, and distribution. IMAX has never been better positioned creatively, commercially, or strategically. And we're focused on strengthening our possession, executing with financial discipline, continuing to provide the most immersive entertainment experience on the planet, and delivering for our shareholders. Thanks, and now I'll turn it over to Natasha to walk through the financials.