IMAX posted a record quarter as Christopher Nolan’s “The Odyssey” drove a structural surge in premium theatrical demand, with revenue jumping 64% to $175 million and adjusted EBITDA margins expanding to 69.3%.
The Numbers Behind the Quarter
Third-quarter revenue of $175 million exceeded both Wedbush’s $161 million forecast and the $169 million consensus estimate, according to the firm’s latest note. Adjusted EBITDA reached $115 million, with the 69.3% margin representing a dramatic expansion from 48.6% a year earlier. Management raised its 2026 EBITDA margin guidance to 50% or more, advancing the previous target timeline by two years. Wedbush now projects 2028 adjusted EBITDA of $295 million at a 56.4% margin on 7% revenue growth.
‘The Odyssey’ as Catalyst
Nolan’s film, the first in history shot entirely in IMAX, became the format’s highest-grossing title ever with $550 million worldwide in three months. The three-hour historical drama grossed $626 million domestically and $1.8 billion globally, becoming both Universal’s and Nolan’s highest-grossing film. It also set records for the biggest domestic IMAX 70mm opening. Universal is re-releasing the film on December 11 across more than 1,000 screens in the U.S. and Canada, including the coveted IMAX 70mm format, following a limited October run.
The Format Scarcity Dynamic
The IMAX 15/70 film format uses 18-by-24-meter screens with horizontal film transport to achieve an immersive 1.43:1 aspect ratio, a technical specification that cannot be replicated in standard multiplexes. This scarcity has turned the format into an event driver: “The Odyssey” benefited from limited 70mm availability during its initial run, and the December re-release capitalizes on pent-up demand from audiences who missed the handful of venues equipped for true 70mm projection.
Streaming Enters the Window
Netflix confirmed its first IMAX release, David Fincher’s “The Further Mis-Adventures of Cliff Booth,” for November 25 across 523 venues in 55 countries. AMC serves as the backbone with 187 locations, including its Odeon Cinemas Group venues in Europe. Notably, Regal and Cinemark opted out, removing roughly 120 IMAX screens from the domestic footprint. The film will have an exclusive two-week IMAX window before streaming on December 23, marking a significant shift in how premium formats intersect with streaming release strategies.
Network Expansion Underway
IMAX added 11 screens in the quarter and secured 38 gross new installation contracts year-to-date, including re-signings and upgrades. Wedbush expects the expansion mix to favor sales over joint ventures, with additional upgrade opportunities across the existing estate. The broker retained IMAX on its Best Ideas List with a $62 price target, up from $60, citing a stronger content pipeline that includes local-language releases and a shift toward filmed-for-IMAX quality in 2027.
Sources
- IMAX
- ‘The Odyssey’ Returns to Imax 70mm Theaters Again After Record-Breaking Run
- Universal Pictures Announces the Theatrical Re-Release of Christopher Nolan’s ‘The Odyssey’
- Over 500 IMAX Locations Confirmed for ‘The Further Mis-Adventures of Cliff Booth’ Global Release
- IMAX gets Wedbush price target hike as growth outlook strengthens
- ‘The Odyssey’ Returning to IMAX Theaters for One More Awards Season Push
Photo: ESO/Swinburne 3D Productions (CC BY 4.0)
