The overall atmosphere during a private IMAX screening of the movie “First Man” at the AMC Theater in New York City on October 10, 2018.
Lars Niki | Getty Images Entertainment | Getty Images
The theater industry is in flux, with some stocks rising more than others.
IMAX Shares rose more than 44% in 2025, even before the company announced that it had achieved a record global box office revenue of $1.28 billion that year. These ticket sales marked an increase of over 40% compared to 2024 and surpassed the previous record set in 2019 by 13%.
On the other hand, the stock prices of theater-related stocks are AMC, Cinemark and marcus theaters AMC fell more than 60%, theater and hotel chain operator Marcus Corporation fell about 28% and Cinemark’s stock fell 25%.
The sharp decline on Wall Street comes as theater owners struggle to adapt to major changes in the industry.
Domestic ticket sales have rebounded from record lows hit during the coronavirus pandemic, but are still about 25% short of the record $11.8 billion raised in 2018. Box office revenue for 2025 was lower than the $9 billion that analysts had expected at the beginning of the year, suggesting to industry watchdogs that post-pandemic hurdles may be more permanent than expected.
“Streaming services remain an attractive option in an environment where consumer spending headwinds and economic concerns are forcing consumers to make choices about their entertainment spending,” Eric Wald, executive director of equity research at Texas Capital Securities, told CNBC.
At the same time that consumer habits have shifted to the home entertainment market, Hollywood production of movies has also declined.
A combination of Wall Street’s penalty pinch, studio mergers, prolonged production shutdowns and double labor strikes due to the pandemic have drastically reduced the number of movies showing in theaters.
“I think investors are still wondering, and frankly, what everyone in the industry is still trying to figure out is what is truly the new normal at the box office,” said Robert Fishman, senior research analyst at MoffettNathanson.
Selection of theatrical productions gives IMAX a competitive advantage.
Transition to premium
When movie theater options are thin, you can benefit from IMAX. Because when movie fans decide to leave their couches, they’re increasingly opting for premium large-format experiences.
According to data from EntTelligence, in 2025, more than 16% of tickets sold for domestic showtimes were in these types of theaters. This is up from 15% in 2024 and 13.8% in 2023.
Premium large-format auditoriums, often referred to as PLFs, are thought to offer an elevated viewing experience with larger screens, higher-quality sound systems, seating options, and higher ticket prices.
According to data from EntTelligence, general movie tickets averaged $13.29 each in 2025, while PLF tickets cost about $17.65 each. By comparison, premium tickets averaged about $16.88 each in 2024.
As Hollywood moves toward producing more big-budget blockbusters, mid- and low-budget films will increasingly be streamed, and PLF screens will become increasingly important.
After all, the films that benefit most from PLF ticket sales are Hollywood blockbusters. Audiences want to see explosive action movies and dazzling spectacle in cutting-edge locations.
ScreenX is the world’s first multi-projection cinema with an immersive 270-degree field of view.
CJ 4DPLEX
Plans for 2026 include: disney’s “Star Wars: The Mandalorian and Grogu” universal and “The Odyssey” directed by Christopher Nolan. Netflix Greta Gerwig’s The Chronicles of Narnia warner bros and Denis Villeneuve’s Dune: Part 3.
All of these films were shot with IMAX film cameras and will be released theatrically on IMAX screens.
The company expects global box office revenue to reach a new record of $1.4 billion in 2026.
IMAX CEO Rich Gelfond said in a statement Wednesday: “Given the very promising outlook and steady growth in our market share, we show no signs of slowing down as filmmakers, studios and audiences around the world continue to be attracted to the IMAX experience.”
As of the end of September, IMAX had more than 1,700 locations and 478 contracts remaining to build IMAX screens. Remarkably, IMAX screens account for less than 1% of all movie screens worldwide.
make a profit
AMC, Cinemark, and Marcus all have premium large movie screens as part of their theater suites and are investing in creating more of these spaces within their movie theaters.
But chains are playing catch-up.
In addition to its existing partnership with IMAX, AMC plans to add more Dolby Cinema theaters at its U.S.-based locations, as well as ScreenX and 4DX auditoriums around the world. Cinemark also invested last year to add more Screen X theaters to its portfolio.
Of course, these upgrades can come at a cost. In AMC’s case, it racked up billions of dollars in debt from previous renovations before the pandemic, and coronavirus-related closures have exacerbated that debt. The company is still dealing with this debt.
Working in IMAX’s favor is the fact that the company is particularly asset-light. This means leveraging technology and partnering with other companies to minimize ownership of physical assets such as buildings.
Instead of leasing expensive real estate, IMAX contracts with movie theater chains to install its own equipment in theaters and receives a cut of the box office revenue from movies shown at those theaters.
Meanwhile, theater operators like AMC, Cinemark and Marcus face the financial burden of paying rent and utilities, only partially offset by ticket sales split 50-50 with studios. Concessions such as popcorn, soda and specialty foods are a way for these companies to raise enough money to cover their expenses.
But if production plans aren’t strong and theaters don’t have enough content to attract movie audiences, profitability is at risk.
In the first quarter of 2025, all three movie stocks posted net losses. Marcus and Cinemark returned to profitability in the second and third quarters as movie schedules improved, while AMC posted two additional quarters of losses.
IMAX, on the other hand, was profitable in all three quarters. Through the first nine months of 2025, IMAX reported net income of $43 million, an increase of 67% compared to the same period in 2024.
All theater stocks are expected to release fourth-quarter results in the coming weeks, as earnings reports are released.
