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Capital Stock and Reserves
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
Capital Stock and Reserves
11. Capital Stock and Reserves
Share-Based Compensation
For the three and nine months ended September 30, 2025, share-based compensation expense totaled $6.3 million and $18.9 million, respectively (2024 — $5.4 million and $16.9 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:
Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands of U.S. Dollars)
2025202420252024
Costs and expenses applicable to revenues
$348 $251 $944 $726 
Selling, general and administrative expenses
5,763 5,036 17,345 15,879 
Research and development
190 112 574 333 
Total$6,301 $5,399 $18,863 $16,938 

The following table summarizes the Company’s share-based compensation expense by each award type:

Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands of U.S. Dollars)
2025202420252024
Restricted Share Units
$3,812 $3,111 $11,198 $9,986 
Performance Stock Units
2,057 2,048 5,958 5,866 
IMAX China Long Term Incentive Plan Restricted Share Units
299 297 1,346 1,019 
IMAX China Long Term Incentive Plan Performance Stock Units
133 (57)361 67 
$6,301 $5,399 $18,863 $16,938 
For the three and nine months ended September 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of less than $0.1 million and $1.7 million respectively, of which $1.7 million granted during the nine month period vested immediately (2024 — $0.1 million and $1.8 million respectively).
Stock Option Summary

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the nine months ended September 30, 2025 and 2024:

Number of SharesWeighted Average Exercise
Price Per Share
2025202420252024
Stock options outstanding, beginning of period
2,469,238 3,329,422 $26.27 $26.23 
Exercised
(63,863)(4,687)21.83 20.85 
Expired(470,582)(607,114)29.53 28.15 
Cancelled— (1,768)— 24.38 
Stock options outstanding, end of period
1,934,793 2,715,853 25.62 25.81 
Stock options exercisable, end of period
1,934,793 2,715,853 25.62 25.81 

Stock options are no longer granted under the SOP.

IMAX LTIP Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the nine months ended September 30, 2025 and 2024:
Number of SharesWeighted Average Grant Date
Fair Value Per Share
2025202420252024
RSUs outstanding, beginning of period
1,465,977 1,286,830 $17.16 $18.53 
Granted555,819 948,261 25.22 16.44 
Vested and settled
(713,130)(698,187)18.18 18.67 
Forfeited(40,513)(47,474)20.27 18.08 
RSUs outstanding, end of period
1,268,153 1,489,430 20.02 17.15 

IMAX LTIP Performance Stock Units (“PSU”) Summary

The Company grants two types of PSU award, one which vests based on a combination of employee service and the achievement of certain Adjusted EBITDA targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets. The achievement of these targets is assessed over a three-year performance period, with vesting ranging from 0% to 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance.

The grant date fair value for Adjusted EBITDA PSUs is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The grant date fair value for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as market conditions and expected share price volatility over the term of the awards.

The compensation expense attributable for each type of PSU is recognized on a straight-line basis over the requisite service period. If, as a result of management’s assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made. The expense recognized in the nine months ended September 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30, 2025 and 2024:

Number of AwardsWeighted Average Grant Date
Fair Value Per Share
2025202420252024
PSUs outstanding, beginning of period
1,097,634 922,621 $17.99 $19.16 
Granted(1)
555,247 580,336 24.19 17.97 
Vested and settled(1)
(463,212)(316,226)19.88 19.71 
Forfeited
(34,301)(85,764)20.77 21.00 
PSUs outstanding, end of period
1,155,368 1,100,967 20.13 18.32 

(1) For the nine months ended September 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.

As of September 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,940,472, assuming full achievement of the Adjusted EBITDA and TSR targets.
Issuer Purchases of Equity Securities

On June 12, 2017, the Company announced that its Board of Directors approved a $200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $400.0 million. In June 2025, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2027 and an increase of $100.0 million in the Company’s share repurchase program authorization. With the increase of $100 million, the Company’s total share repurchase authority is $500.0 million under the current share repurchase program. As of September 30, 2025, the Company had $250.7 million available under the program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.
During the three and nine months ended September 30, 2025, the Company did not have any repurchases of common shares. During the three months ended September 30, 2024, the Company did not have any repurchases of common shares. During the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares, at an average price of $13.99 per share, for a total of $16.3 million, excluding commissions. During the nine months ended September 30, 2025 and 2024, there were no shares purchased in the administration of employee share-based plans.
As of September 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares. Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Condensed Consolidated Balance Sheets.

In 2024, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing IMAX China’s Board of Directors, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of issued shares as of June 7, 2024 (34,000,845 shares). This program expired on the date of the 2025 Annual General Meeting of IMAX China on June 12, 2025. During the 2025 Annual General Meeting, shareholders granted its Board of Directors a general mandate authorizing the Board of Directors of IMAX China, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of shares as of June 12, 2025 (33,919,122 shares). This program will be valid until the 2026 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time.
During the three months ended September 30, 2025, IMAX China did not repurchase any common shares. During the nine months ended September 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($0.96 per share) for a total of HKD $11.3 million ($1.4 million), excluding commissions. During the three months ended September 30, 2024, IMAX China did not have any repurchases of common shares. During the nine months ended September 30, 2024, IMAX China repurchased 119,900 common shares, at an average price of HKD 7.43 per share ($0.95 per share) for a total of HKD 0.9 million ($0.1 million). The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity. The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.
Basic and Diluted Weighted Average Shares Outstanding

The following table reconciles the denominator of the basic and diluted weighted average share computations:

Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands)2025202420252024
Issued and outstanding, beginning of period
53,783 52,677 52,946 53,260 
Weighted average number of shares issued (repurchased), net
5 5 615 (655)
Weighted average number of shares outstanding - basic
53,788 52,682 53,561 52,605 
Weighted average effect of potential common shares, if dilutive
1,777 1,407 1,681 1,023 
Weighted average number of shares outstanding - diluted
55,565 54,089 55,242 53,628 
For the three and nine months ended September 30, 2025, the calculation of diluted weighted average shares outstanding excludes 844,551 and 928,945 shares, respectively (2024 — 2,192,874 and 2,769,499 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including: (i) nil RSUs, respectively, (2024 — nil and 10,798 RSUs, respectively), (ii) 1,510 and 85,904 PSUs, respectively (2024 — nil and 42,848 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,192,874 and 2,715,853 stock options, respectively), as the effect would be anti-dilutive.
The calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.
Statutory Surplus Reserve

Pursuant to the corporate law of the People’s Republic of China (“PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders. All statutory reserves are created for specific purposes.

The statutory surplus reserve of RMB 37.7 million ($4.2 million) has reached 50% of the Company’s PRC subsidiaries’ registered capital, and as such, no further contributions to the reserve are required.