IMAX stock crushes theater sector in 2025

The theater industry is in a state of flux, and one stock is rising above the rest.

IMAX It saw its shares jump more than 44% in 2025, even before the company announced it had taken in a record $1.28 billion at the global box office for the year. Ticket sales saw an increase of more than 40% compared to 2024 and were 13% higher than the previous record set in 2019.

Meanwhile, fellow theatrical stock shares Your mother, Cinemark and Marcos Theaters It collapsed in 2025. AMC stock fell more than 60%, Marcus Corporation, which operates theaters and hotel chains, fell about 28% and Cinemark stock fell 25%.

The sharp declines on Wall Street come as theater operators struggle to deal with massive changes in the industry.

Domestic ticket sales have rebounded from record lows set during the Covid pandemic, but remain about 25% below the record $11.8 billion raised in 2018. The 2025 box office was less than the $9 billion that analysts had expected entering the year, suggesting to industry watchdogs that post-pandemic hurdles could be more lasting than expected.

“In an environment where consumer spending headwinds and economic concerns have forced consumers to make choices about their entertainment spending, streaming services continue to represent an attractive option,” Eric Wold, executive director of equity research at Texas Capital Securities, told CNBC.

At the same time that consumer habits have shifted toward the home entertainment market, Hollywood is producing fewer films.

A combination of Wall Street money cuts, studio mergers, ongoing production shutdowns due to the pandemic and twin labor strikes has led to a significant decline in the number of films reaching theaters.

“I think investors are still struggling, and frankly, what everyone in the industry is still trying to figure out is, what is the real new normal for the box office?” said Robert Fishman, senior research analyst at MoffettNathanson.

The winnowing process has left IMAX theatrical in the lead.

When the cinema slate is tight, IMAX benefits, because when moviegoers decide to leave their couches, they are increasingly opting for premium large format experiences.

In 2025, more than 16% of tickets sold for domestic showtimes were for these types of theaters, according to data from EntTelligence. This is up from 15% in 2024 and 13.8% in 2023.

Often called PLFs, larger auditoriums are considered an elevated viewing experience, with larger screens, higher-quality sound systems and seating options – and come with higher ticket prices.

EntTelligence data showed that in 2025, the average price of a general cinema ticket was $13.29 apiece, while a PLF ticket was about $17.65 apiece. For comparison, premium tickets in 2024 averaged about $16.88 apiece.

As Hollywood shifts toward producing more big-budget films — while mid- to low-budget films are more often sent to streaming — PLF screens will become increasingly important.

After all, the films that benefited the most from PLF ticket sales were Hollywood’s biggest releases, where audiences want to see explosive action and dazzling performances in the newest locations.

On the agenda for 2026 is Disney “Star Wars: The Mandalorian and Grogu” worldwide And “The Odyssey” by Christopher Nolan. Netflix And “Narnia” by Greta Gerwig and Warner Bros. And “Dune: Part III” by Denis Villeneuve.

All of these films were shot on IMAX movie cameras and will have theatrical releases on IMAX screens.

The company expects the global box office for 2026 to reach a new record of $1.4 billion.

“We see no signs of slowing down given the very promising period ahead and the consistency of our market share gains, as filmmakers, studios and audiences around the world continue to gravitate toward the IMAX experience,” IMAX CEO Rich Gelfond said in a statement Wednesday.

As of the end of September, IMAX had more than 1,700 locations and a backlog of 478 contracts to build IMAX screens. It is worth noting that IMAX screens represent less than 1% of the total cinema screens in the world.

AMC, Cinemark, and Marcus all have large-format movie screens as part of their theater portfolio as well, and have invested in creating more of these spaces in their movie theaters.

But the chains are playing catch-up.

AMC, in addition to its existing partnership with IMAX, has plans to add more Dolby Cinema theaters to its U.S. locations as well as Screen Cinemark also made investments last year to add more Screen

Of course, these upgrades can be expensive. In AMC’s case, previous renewals before the pandemic saddled the company with billions in debt, which worsened during coronavirus-related shutdowns. The company is still dealing with this debt load.

What works in IMAX’s favor is the fact that the company is significantly asset-light, meaning it has reduced its ownership of physical assets like buildings by leveraging its own technology and partnering with other companies.

Instead of expensive real estate leases, IMAX makes deals with movie theater chains to install its equipment in their auditoriums and then takes a share of the box office receipts for films shown in those theaters.

On the other hand, AMC, Cinemark, Marcus and other theater operators bear the financial burden of rent and utility payments, which are only partially offset by ticket sales they share with the studios. Concessions—popcorn, soda, and specialty foods—became a way for these companies to raise enough money to cover expenses.

However, if the production slate is not strong and movie theaters do not have enough content to attract moviegoers, profitability is at risk.

In the first quarter of 2025, the shares of the three cinemas recorded net losses. Marcus and Cinemark rebounded to profitability in the second and third quarters, with the movie calendar improving, while AMC posted two more periods in the red.

IMAX, on the other hand, was profitable in all three quarters. During the first nine months of 2025, IMAX reported net income of $43 million, up 67% from the same period in 2024.

All theater stocks will report fourth-quarter results in the coming weeks with the publication of earnings reports.