IMAX Corp. (IMAX) Earnings Review: Better 3Q results but lower estimates on weaker implied 4Q26

IMAX reported 3Q26 results that were above consensus expectations on both Revenue ($175M vs. $163M consensus) and company reported Adjusted EBITDA ($121M vs consensus of $91M), with margins of 69.3% (vs 56.0% consensus) driven primarily by stronger box office and Content Solutions Revenue. Free Cash Flow of $77M in 3Q26 was above GSe/consensus of $49M/$69M. IMAX generated Box Office (incl. booking fees) of $712M in 3Q26 (previously reported; +93.7% YoY) that was skewed toward international markets (~40%/58% Domestic/RoW). With earnings, IMAX raised its box office and Adjusted EBITDA 2026 guidance, and now expects: i) IMAX GBO of >$1.4B (vs $1.4B prior, GSe $1.56B) and ii) consolidated Adjusted EBITDA margins of ~50% (vs mid 40s, GSe 50.3%). We maintain our Neutral rating on shares of IMAX Corp (IMAX) but lower our PT to $49 ($52 prior).