The theatrical industry is in flux, and Imax Surges above the competition. Imax shares jumped more than 44% in 2025. This increase came even before the company revealed its record-breaking $1.28 billion global box office revenue for the year. This marked a 40% increase over 2024 and a 13% rise over the company’s previous record set in 2019.
Meanwhile, shares of fellow theater stocks AMC, Cinemark, and Marcus Theatres saw sharp declines. AMC dropped over 60%, Cinemark fell 25%, and Marcus Corp. slumped around 28%. These sharp declines highlight the struggles faced by theater operators.
Domestic ticket sales have recovered from the lows caused by the Covid pandemic. However, sales remain about 25% below the $11.8 billion collected in 2018. The 2025 box office also fell short of the projected $9 billion, signaling that post-pandemic hurdles might be permanent.
“Consumer spending headwinds and economic concerns forced consumers to be more selective with their entertainment,” said Eric Wold, executive director of equity research at Texas Capital Securities. As streaming services continue to gain traction, fewer people are choosing to visit the theaters.
Hollywood is also producing fewer films. A mix of Wall Street penny-pinching, studio mergers, and lingering production shutdowns from the pandemic has led to a decline in the number of movies hitting theaters.
Industry Struggles and Uncertainty
“I think everyone is still trying to figure out what the real new normal for box office looks like,” said Robert Fishman, senior research analyst at MoffettNathanson.
This uncertainty has left Imax Surges ahead of its competitors, as the company is benefiting from fewer theatrical releases.
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Imax and Premium Movie Experiences
When the movie slate is thin, Imax benefits. Moviegoers are opting for premium large format (PLF) experiences. These offer bigger screens, enhanced sound, and improved seating, and come with higher ticket prices.
In 2025, over 16% of domestic movie tickets sold were for PLF theaters, according to data from EntTelligence. This is up from 15% in 2024 and 13.8% in 2023. PLF tickets cost more, with the average ticket price around $17.65 in 2025, compared to the general movie ticket price of $13.29.
Hollywood’s focus on big-budget blockbusters has fueled the demand for PLF experiences. Action-packed movies and spectacles are driving audiences to these theaters for a premium experience.
On the docket for 2026 are big films like Disney’s “Star Wars: The Mandalorian and Grogu,” Universal’s “The Odyssey,” Netflix’s “Narnia,” and Warner Bros.’ “Dune: Part Three.” All these films were shot with Imax film cameras and will have releases on Imax screens.
Imax has forecasted a new global box office record of $1.4 billion for 2026. CEO Rich Gelfond commented, “We see no signs of slowing down,” due to a promising film slate and consistent market share gains.
Imax’s Asset-Light Model
Imax is notably asset-light, minimizing ownership of physical assets like real estate. Instead, the company enters agreements with cinema chains to install its equipment and takes a share of box office receipts from films shown on its screens.
AMC, Cinemark, and Marcus, on the other hand, carry the financial burden of rent and utilities, only partially offset by ticket sales, which they split with studios. Concessions like popcorn and soda have become crucial to covering their costs.
However, if the movie slate isn’t strong and theaters lack content to draw moviegoers in, profitability is at risk. In Q1 2025, all three theater stocks posted net losses. Marcus and Cinemark rebounded to profitability in Q2 and Q3 due to an improved film schedule, while AMC posted losses for two more periods.
Imax, on the other hand, was profitable in all three quarters of 2025, reporting net income of $43 million, up 67% from the same period in 2024. The company’s business model and premium experiences continue to perform well, even in a fluctuating market.
The Future for Theater Stocks
Imax remains strong as its competitors struggle. With premium experiences and a solid film slate, Imax is poised to continue its market dominance in the coming years. The theater industry will report its fourth-quarter results soon, but Imax’s position looks promising.
