IMAX Corp. (IMAX (IMAX)) reported second-quarter results Thursday that blew past Wall Street expectations on both earnings and revenue, sending shares up more than 11% in premarket trading. The stock's sharp move was amplified by a high short interest of nearly 16% of the tradable float, creating a classic short squeeze as bearish traders scrambled to cover their positions.
The company posted adjusted earnings of 43 cents per share, crushing the analyst consensus estimate of 28 cents. That's up from 26 cents per share a year ago. Revenue climbed to $102.8 million from $91.7 million, easily beating the $93.7 million analysts were looking for.
With 15.89% of the float sold short, the positive earnings news forced many short sellers to buy back shares, adding fuel to the rally. It's a textbook squeeze: good news plus high short interest equals explosive upside.
Margins, Cash Flow, and Balance Sheet
IMAX reported a net income margin of 15.5% and an adjusted EBITDA margin of 46.6%. Net income per diluted share rose 35% year over year to 27 cents, while adjusted EPS jumped 65% to a record 43 cents.
For the first half of 2026, net cash from operations increased 19% to $36 million, driven by higher operating profit and improved working capital from stronger collections. As of June 30, the company had $551 million in available liquidity, including $160 million in cash and equivalents, $334 million under its revolving credit facility, and $57 million from IMAX China facilities. Total debt stood at $292 million, excluding deferred financing costs.
Box Office Momentum Drives Growth
CEO Rich Gelfond highlighted Christopher Nolan's The Odyssey as a "transformational event" for the company. The film delivered the biggest IMAX opening weekend ever in comparable markets and the company's highest international market share for a major release in those markets. The Odyssey generated $52 million during its opening weekend, accounting for 20% of the global box office. IMAX also reported record Monday and Tuesday box office results, with presales for future screenings reaching $60 million.
The company installed 38 IMAX systems during the quarter, its strongest second-quarter installation total in a decade. Its international network outside China expanded 9% from a year earlier.
Looking ahead, IMAX expects a strong second-half film slate, including Dune: Part Three, Spider-Man: Brand New Day in China, Japan, and South Korea, Tom Cruise's Digger, and the exclusive theatrical release of Netflix's Cliff Booth project.
IMAX shares were up 11.15% at $43.68 during premarket trading on Thursday.
