IMAX stock crushed the theater sector in 2025
The general atmosphere during a special IMAX screening of “First Man” at an AMC theater in New York City on October 10, 2018.
Lars Niki | Getty Images Entertainment | Getty Images
The theater industry is in flux, and one stock is rising above the rest.
IMAX 2025 saw its shares rise more than 44%, even before the company announced record revenue of $1.28 billion at the global box office for the year. These ticket sales were up more than 40% from 2024 and were 13% higher than the previous record set in 2019.
Meanwhile, shares of other theater stocks AMC, Cinemamark And Marcus Theaters The crater formed in 2025. AMC lost more than 60%, Marcus Corporation, which operates theater and hotel chains, fell nearly 28% and shares of Cinemark fell 25%.
The sharp declines on Wall Street come at a time when theater operators are struggling to cope with major changes in the industry.
Domestic ticket sales have rebounded from record lows recorded during the Covid pandemic, but remain nearly 25% below the record-breaking $11.8 billion raised in 2018. The 2025 box office fell short of the $9 billion analysts predicted entering the year, signaling to industry observers that post-pandemic hurdles may be more permanent than expected.
“In an environment where consumer spending downturns and economic concerns are forcing consumers to make choices on entertainment spending, streaming services remain an attractive option,” Eric Wold, managing director of equity research at Texas Capital Securities, told CNBC.
Hollywood is also making fewer movies as consumer habits shift toward the home entertainment market.
The combination of a money crunch on Wall Street, studio mergers, extended production shutdowns due to the pandemic, and dual labor strikes has led to a significant decline in the number of movies coming to theaters.
“I think investors are still having trouble, and frankly, what everyone in the industry is still trying to figure out is what is the real new normal at the box office?” Robert Fishman, senior research analyst at MoffettNathanson, said:
The theater’s win left IMAX ahead of the rest.
Move up to Premium
IMAX benefits when the theater environment is poor because moviegoers are increasingly turning to theaters when they decide to leave their seats. premium large format experiences.
According to data from EntTelligence, more than 16% of tickets sold for domestic screenings in 2025 were for such theaters. This is an increase from 15% in 2024 and 13.8% in 2023.
Premium large-format auditoriums, often called PLFs, are considered a higher-end viewing experience with larger screens, higher-quality sound systems and seating options, and come with higher ticket prices.
According to EntTelligence data, general movie tickets cost an average of $13.29 in 2025, while PLF tickets were around $17.65 each. By comparison, premium tickets in 2024 averaged $16.88.
As Hollywood moves to produce more big-budget, blockbuster films (while mid- and low-budget films are more often sent to streaming), PLF screens will become increasingly important.
Ultimately, the movies that benefited most from PLF ticket sales were Hollywood’s biggest releases, as audiences wanted to see explosive action movies and dazzling spectacle in state-of-the-art venues.
ScreenX is the world’s first multi-projection cinema with an immersive 270-degree field of view.
CJ 4DPLEX
in 2026 calendar Disney’s “Star Wars: The Mandalorian and Grogu” Universal and Christopher Nolan’s “The Odyssey.” netflix and Greta Gerwig’s “Narnia” and Warner Bros. and Denis Villeneuve’s “Dune: Part Three.”
All of these films were shot with IMAX movie cameras and will be released on IMAX screens.
The company predicts 2026 global box office revenue will be a new record of $1.4 billion.
“Given the promising outlook ahead and the consistency of our market share gains as filmmakers, studios and audiences around the world continue to gravitate towards the IMAX experience, we see no signs of slowing down,” IMAX CEO Rich Gelfond said in a statement Wednesday.
As of the end of September, IMAX has more than 1,700 locations and Backlog of 478 contracts To create IMAX screens. IMAX screens in particular represent less than 1% of total movie screens worldwide.
put profit
AMC, Cinemark, and Marcus all have premium large-format movie screens as part of their theaters and have invested in creating more of these spaces in their theaters.
But the chains are playing a game of catch-up.
AMC plans to add more to its existing partnership with IMAX Dolby Movie theaters are expanding to US-based locations as well as Screen X and 4DX auditoriums around the world. Cinemark also invested last year to add more Screen X movie theaters to its portfolio.
Of course, these upgrades can be expensive. In AMC’s case, previous renovations before the pandemic had saddled the company with billions of dollars in debt, and that situation was exacerbated during Covid-related shutdowns. The company is still dealing with this debt burden.
Working in IMAX’s favor is the fact that the company is particularly asset-light, meaning it minimizes its ownership of physical assets such as buildings by using its technology and partnering with other companies.
Instead of costly real estate rentals, IMAX makes agreements with cinema chains to place its equipment in their auditoriums and receive a share of the box office revenues of the films shown in these theaters.
AMC, Cinemark, Marcus and other theater operators, on the other hand, have the financial burden of rent and utility payments that is only partially offset by ticket sales, which they split with the studios. Concessions such as popcorn, soda, and specialty foods have become a means for these businesses to raise enough funds to cover expenses.
But if the production slate isn’t strong and theaters don’t have enough content to attract audiences, profitability is at risk.
All three movie theater stocks reported net losses in the first quarter of 2025. While Marcus and Cinemark returned to profitability in the second and third quarters as the movie schedule improved, AMC remained in the red for two more periods.
On the other hand, IMAX was profitable in all three quarters. IMAX through the first nine months of 2025 reported net income $43 million, an increase of 67% compared to the same period in 2024.
Theater stocks will all report fourth-quarter results as earnings reports are released in the coming weeks.
