Imax‘s CEO cautioned Wall Street on Wednesday that he does not expect a stream of deals to follow on the heels of a high-profile agreement with Netflix for a global two-week exclusive Imax run of Greta Gerwig‘s Narnia starting on Thanksgiving Day 2026.
“I’ve talked to Netflix about this, and I think in general they are as excited as we are to do it,” chief executive Rich Gelfond told Wall Streeters after Imax’s latest earnings report. “But we are not in a rush to do another one tomorrow. I think the factors have to come into place that work for everyone.”
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He noted: “That deal took a pretty long time to put together. Obviously, there’s a lot of different constituencies with different agendas that go in there. So we really had to construct something that would work for the exhibitors, that would work for Greta, that would work for Netflix, that would work for a lot of people. The right amount of windows. The right amount of playtime. … It’s a fairly complex deal to have met all the various constituencies.”
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That said, “I think, if it works, it will be tempting for the talent, for Imax and certainly for Netflix” to re-engage.
Not all movies are meant to be an Imax event, but Gelfond thinks Narnia definitely is.
“This was a really great movie [for us] because I think there are like eight movies planned … and what Imax does best is launch franchises and launch events, [and] this is the kind of movie that is very conducive to an Imax release.
“It’s also not as unusual as you think,” he added.
Imax is working with Apple Original Films’ F1, with Warner Bros. distributing, on the summer release. “There will be more projects like this,” he said. “I think it will be successful at the end of the day, and I think it’s a good template for not just Netflix but doing business with others.”
Netflix co-CEO Ted Sarandos insisted last month that there is “no change at all to our theatrical strategy, calling the the Narnia pact “a release tactic. We routinely release movies and theaters a couple of weeks before to qualify for awards, to meet festival requirements and to prime the publicity pump a bit. In the case of Narnia, it’s a two-week special event. I think it’s very differentiated from other runs because I doubt anyone has a screen as big as an Imax screen at home.”
Imax said it anticipates a record of more than $1.2 billion in global box office in 2025 as Chinese moviegoing picks up. There will be at least 14 filmed-for-Imax releases worldwide — meaning both Hollywood and local-language films that are shot with Imax cameras specifically for Imax screens.
As for Imax’s fourth quarter of 2024, it was solid on the shoulders of Gladiator 2, Venom: The Last Dance, Mufasa: The Lion King and Interstellar. But the company said that China, where it has a big chunk of its business, remained soft last year.
That’s turned around, however, starting with Imax’s Chinese New Year slate of five films that has smashed records at about $130 million and counting in the current quarter — already up over 90% from the previous best. It’s led by Ne Zha 2, now the highest-grossing Imax release of all time in China. “The tide has turned,” said Gelfond. Ne Zha 2 opened in the U.S. this past weekend.
Juggernaut Captain America: Brave New World did great Imax box office opening weekend. Hollywood releases are picking up in general. There’s more growth to come in China, more local-language titles from there and elsewhere, and a growing number of filmed-for-Imax projects this year, execs said.
Q4 profit popped to $5.3 million from $2.5 million in the year-earlier period on revenue of $92.7 million, up 8%. The company cited a super Thanksgiving (and November weekend) with $22.5 million in worldwide box office. Top-grossing fourth-quarter titles included Gladiator 2 ($31 million), Venom: The Last Dance ($31 million), Mufasa: The Lion King ($26 million) and Interstellar ($20 million).
Q4 box office of $204 million increased 20% year-over-year, bringing Imax near an annual record.
The stock price, a constant sore point over the years for Gelfond, has finally responded, trading near five-year highs. The shares nosed higher in late trading and are sitting at about $27.22 – well up from a 52-week low under $15.
The company continues to expand its networks.
During the fourth quarter, it installed 58 Imax systems, compared to 69 systems in the fourth quarter of 2023, resulting in 146 system installations in the full year versus 128 system installations in the prior year. Of those, 28 systems in the fourth quarter and 63 in the full year were under sales arrangements, compared to 35 and 70 systems in the prior year.
Commercial network growth continues with the number of Imax locations increasing 2.5% year-over-year to 1,735 systems. The company ended last year with a backlog of 440 Imax systems.
Net cash provided by operating activities for full year 2024 was $71 million, compared to $59 million in the prior year period, reflecting improvements in working capital.
“Imax’s record-breaking Chinese New Year demonstrates the unique advantages of our model – a richly diversified content portfolio featuring the biggest Hollywood and local language blockbusters, and a global network that allows us to capitalize on box office momentum anywhere in the world,” said Gelfond.
This year “is already living up to its significant promise and yet the bigger opportunity is still in front of us, with more Filmed for Imax releases than ever in 2025 and arguably an even stronger slate ahead in 2026. In China, the turnaround we’re witnessing this year has been dramatic; in less than two months, our Chinese local language box office has already exceeded the entirety of 2024,” he added.
“In 2024, Imax further strengthened its position at the center of global entertainment – expanding the roster of filmmakers working with our technology, strengthening our studio marketing, hitting the high-end of our installation guidance, and innovating to expand our programming – including our deal with Netflix for the release of Greta Gerwig’s ‘Narnia’ across the Imax global network in advance of its debut on the service.
“With the headwinds we faced in China in 2024 beginning to lift, we’re poised to build on the fourth quarter’s significant double-digit growth in adjusted EBITDA and earnings per share. We look forward to capitalizing on the promising opportunity ahead to achieve a record year at the global box office and strong returns for our shareholders.”