Imax Corporation

Good day and thank you for standing by. Welcome to the IMAX second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. 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 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 being recorded. I would now like to turn the conference over to your speaker today, Jennifer Horsley, Head of Investor Relations for IMAX. Please go ahead.

Good morning, and thank you for joining us for IMAX's second quarter 2026 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. 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 accompanying 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 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 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 now turn the call over to Mr. Richard Gelfond. Rich?

Thanks, Jennifer, and thanks, everyone, for joining us today. Just days ago, audiences around the world began to experience something we've been building toward for decades. Christopher Nolan's The Odyssey is the purest and most complete expression yet of the power of IMAX. The first feature-length release ever shot entirely with IMAX film cameras, a game-changing technical achievement, a massive launch campaign that from the very first tweet made IMAX the centerpiece of the discussion. and a global fan frenzy for the IMAX experience as well as a strong demand for IMAX systems among theater owners. Not since the original Avatar have we seen a global cinematic event like this where filmmaking technology took center stage. Avatar established IMAX as a force in entertainment, accelerated our network growth around the world and permanently raised the bar We believe the Odyssey is also a transformational event in many ways we can see and many ways we can't yet predict. The box office results are already exceeding our expectations. IMAX is the center of the cultural conversation like never before. And more than ever, IMAX is the premier global platform for blockbuster content. At our Investor Day last year, we talked about how we've entered a new era of growth. Right now, that thesis is on full display. All this comes on top of a quarter in which we delivered strong results, beating consensus across virtually every matrix, including revenue of $103 million, up 12% year over year, adjusted earnings per share of 43 cents, up 65% year over year and adjusted EBITDA of $48 million at an almost 47% margin. Natasha will detail our results in a moment, but first I'd like to share what Odyssey tells us about the future of IMAX. The results for the Odyssey have been nothing short of tremendous. IMAX delivered $52 million in its global opening The biggest global opening weekend in our history on a like-for-like basis given the film has yet to open in China, Japan, and South Korea. That amounted to a staggering 20% share of the film's worldwide debut on less than 1% of total screens. Our occupancy was 75% across our domestic network, an unheard of number. Our hold so far have been even more eye-popping. We delivered the highest-grossing Monday in our history, thanks to an $11 million performance for the Odyssey, an unprecedented 21% hold from the weekend. On Tuesday, we delivered another $10.6 million, notching our biggest Tuesday of all time. And our pre-sales for the second weekend would qualify on its own as one of our biggest opening weekends ever. These numbers help prove that we're just getting warmed up. IMAX 70 millimeter film has become among the hottest tickets in the world. Our 41 IMAX film locations worldwide delivered $6.3 million in weekend box office, a massive average of $153,000 per screen. The Odyssey will play in IMAX 70 millimeter locations for months and we've already recording sellouts at these locations deep into the film's run. In some cases, the seventh or eighth week. And it's important to remember that the film locations drive more revenues for IMAX than the digital locations. Overall, we remain on track to deliver a record $1.4 billion and Global Box Office for the full year. Odyssey and Dune Part III give our 26th slate a highly advantageous structure with two mega tent poles filmed with IMAX cameras in the second half that fully deploy the power of IMAX. Both shot with IMAX film cameras by two of the biggest filmmakers in the world. Both presented an IMAX 70 millimeter with tickets to IMAX locations selling out months if not a full year in advance. Both stacked with incredible casts and both very highly anticipated. The level of fan frenzy around the Odyssey in IMAX speaks volumes. We built one of the most passionate fan communities anywhere in entertainment and a global brand that represents unforgettable out of home experiences. Universal put select IMAX 70mm screenings on sale a full year in advance of the release, and those sold out in under an hour. The launch of presales for the Odyssey and IMAX crashed every major ticketing platform in the United States, and the Odyssey clocked our biggest presales of all time by a multiple of three. Fans are flying across countries, if not continents, to experience the Odyssey in IMAX 70 millimeter. Selling out screenings around the clock, 10 p.m., 2 a.m., 7 a.m., that level of consumer loyalty is difficult to build. It's even more difficult to replicate. And we're capitalizing on that loyalty in new and expanding ways, most notably merchandising. We continue to see IMAX merch as a largely untapped Our first ever popcorn bucket, a replica of the IMAX 70mm camera used to film the Odyssey, powerfully underscores that opportunity. The first drop of buckets sold out in under two hours on IMAX.com. The second drop, just five days later, sold out in seven minutes. And our Chinese bucket release sold out in 63 seconds. We've sold over 10,000 units so far through our channels alone and more buckets are available at theaters around our network and along with a full line of Odyssey merchandise at imax.com. We're very excited for the continued run of the Odyssey and the slate ahead. Christopher Nolan's previous film, Best Picture Winner Oppenheimer, delivered more than $190 million in IMAX box office IMAX opening weekend for the Odyssey was 47% higher than Oppenheimer. The Odyssey is presented in almost 40% more IMAX 70mm film locations than we had with Oppenheimer. And the Odyssey is arguably more commercially and internationally accessible. We also have a great lineup of filmmaker-driven IMAX-centric releases that follow. Much stronger than what followed Oppenheimer, which will allow us to re-engage the diehard and new fans alike that are turning out for IMAX, including Spider-Man Brand New Day, which we've announced will play in China, Japan, and South Korea. The box office has picked up dramatically in China in recent weeks, and Spider-Man is tracking very well, and there are strong pre-sales in China. Resident Evil, the first film for IMAX release from Red Hot Horror auteur weapons director Zack Krieger. Digger, from our long-term partner Tom Cruise and Oscar-winning director Alejandro Gonzalez Iñárritu. Godzilla Minus Zero, the first film for IMAX title from Japan and a sequel to the highest grossing Japanese Godzilla film ever. Godzilla Minus One. This will be a global release for IMAX. Ramayana Part One among the first ever film for IMAX titles from India. Our groundbreaking exclusive theatrical release with Netflix. David Fincher directed and Brad Pitt starring the unofficial sequel to Quentin Tarantino's 2019 hit Once Upon a Time in Hollywood. and we believe there are several sleeper hits lying in wait, including Paramount's fresh take on Street Fighter video game franchise and Don't Look Back in Anger, the concert documentary chronicling Oasis' massive 2025 reunion tour. And the year concludes with Denis Villeneuve's Dune Part 3, which was shot with IMAX film cameras and will be presented in IMAX 70mm film. which will carry us into what already looks like a very strong first quarter of 27 with Greta Gerwig's Narnia which opens exclusively in IMAX before its wide global release. Three film for IMAX titles including Michael B. Jordan's The Thomas Crown Affair which wowed exhibitors at the recent Cine Europe conference and a Chinese New Year's slate that looks to be shaping up very nicely in the early going. and some very promising titles beyond that for the year including Star Wars Starfighter with Ryan Gosling and the sequels to Superman and Minecraft. We also expect to have at least four films including both new and re-releases on our slate in 27 that will be presented in IMAX 70mm film. Our momentum continues to translate into demand from our exhibition partners. We're at 62 signings for new and upgraded IMAX systems worldwide year to date. We installed a very robust 38 systems in the second quarter, edging out the 36 we installed in the same period last year. The Odyssey provided another reminder to exhibitors that for the biggest, most anticipated productions from the best filmmakers, knockoffs and marketing gimmicks won't cut it and people are seeking out IMAX. You need IMAX and we expect that our momentum from the Odyssey, the strong second half slate and anticipation for June part three will continue to drive demand throughout the year. We have a very healthy sales pipeline for the second half comprised of talks with many of the smaller regional and often new partners that have helped drive our growth in recent years. And as a reminder, we have a very healthy backlog alongside larger potential deals with some of our biggest exhibition partners worldwide. None of this happens without continued innovation and the competitive edge of our unique end-to-end technology. On the heels of the massive success with Oppenheimer, Christopher Nolan wanted to use his cloud to realize a lifelong dream, shooting an entire movie with IMAX film cameras. And he challenged us to help make that dream a reality. In response, we designed our legacy film camera from scratch, retaining only the original mechanical movement. In addition, we developed the most advanced camera sound blimp ever created, to allow Nolan to shoot sync sound in IMAX for the first time ever and get stronger performances out of his cast. Nolan shot 2.1 million feet of IMAX in its production, the distance from New York to Toronto. IMAX innovation made the Odyssey possible and gave Chris Nolan the tools to make one of the greatest movies ever seen. But this technology is also an investment in the next generation of filmmakers and the thriving art of filmmaking itself. Since its launch in 2022, the Film for IMAX program has emerged as a transformational, differentiating opportunity for IMAX across production, distribution, and marketing. That has fueled our dramatic market share gains. Thanks to Chris Nolan's advocacy and ambition IMAX film has emerged as an ultimate premium level that sits above even film for IMAX and is being embraced by the most exciting blockbuster filmmakers today including Chris Denis and Ryan Coogler it's what the world's greatest filmmakers choose to create with and today more filmmakers than ever are selecting IMAX to close We posted strong results in the second quarter. We talked about building a company with enduring competitive and advantages and an expanding moat and fiercely loyal fan base and a strong global brand, unrivaled creative partnerships, a diverse global network and growing demand among exhibitors worldwide, technology that sets the standard for immersive entertainment, and a business model capable of translating those advantages into a strong long-term shareholder value, including a model that leverages very strongly when financial results come in. Right now, we're seeing all those advantages working together. And while the Odyssey is an extraordinary achievement, it doesn't sit in isolation. It both accelerates and illuminates the historically strong momentum we've been building at IMAX and offers a preview of where this company is headed. We've never had a better visibility into our content pipeline. We continue to see tremendous runway for our global expansion and we continue to innovate in ways that make IMAX even more valuable to creators, studios, exhibitors and audiences alike. This is an incredibly exciting time for our business We're focused on building that momentum, executing with financial discipline, delivering the world's most immersive entertainment experience, and creating long-term value for our shareholders. Thank you, and with that, I'll turn it over to Natasha.