IMAX (IMAX) used its Investor Day last week to lay out a bullish three-year plan built around higher-margin growth from its global network, premium technology upgrades, and a deeper content slate. Management highlighted that IMAX (IMAX) is a capital-light, operating-leverage story tied to premium cinema and “eventized” content. Of course, the IMAX (IMAX) event ran up against dramatic headlines from the studio sector, with Netflix (NFLX) and Paramount Skydance (PSKY) eying a buyout of Warner Bros. Discovery (WBD).
In terms of guidance, IMAX (IMAX) management guided cumulative revenue growth of high single digit to low double digits. The company expects adjusted EBITDA margins to move above 50% over the next few years, up from a prior expectation of mid-40s, as fixed costs are leveraged over a growing network and higher-margin content and services mix.
Wells Fargo analyst Omar Mejias said IMAX (IMAX) management was successful in laying out new long-term financial targets showcasing surging demand, improved visibility, and strong operating leverage in the model. Despite the market implying a negative impact from Netflix’s (NFLX) planned acquisition of Warner Bros. Discovery (WBD), Wells Fargo believes IMAX would benefit from industry consolidation. It was also noted that Warner Bros. Discovery (WBD) has contracts that run through 2029 that guarantee a theatrical release. Heading into 2026, IMAX remains one of the firm’s favorite stocks within its coverage universe.
Wedbush Securities kept IMAX (IMAX) on its Best Ideas List following the Investor Day event. “We think there is a significant opportunity remaining in filmed-for-IMAX, alternative, and local-language content, as well as accelerating footprint growth with an expanding TAM. As IMAX continues to add more FFI and alternative content on its screens, it becomes a more valuable asset for theaters, creating a virtuous cycle,” updated analyst Alicia Reese.
Benchmark Company analyst Mike Hickey also believes that Netflix’s (NFLX) planned acquisition of Warner Bros. (WBD) is a major strategic positive for IMAX, anchored by the strength of the IMAX and Netflix partnership that has already produced the groundbreaking Narnia IMAX-exclusive release.
Shares of IMAX (IMAX) were up 7.7% in Monday afternoon trading and are up more than 40% over the last six months as M&A talk has swirled around the media landscape.