General atmosphere during a private IMAX screening of the film “First Man” at an AMC theater in New York on October 10, 2018.
Lars Niki | Getty Images Entertainment | Getty Images
The theater industry is evolving – and one title is rising above the rest.
IMAX saw its shares jump more than 44% in 2025, even before the company announced that it had generated a record $1.28 billion at the global box office for the year. These ticket sales marked an increase of more than 40% compared to 2024 and were 13% higher than its previous record set in 2019.
Meanwhile, the actions of other theatrical actions AMC, Cinemamark And Marcus Theaters cratered by 2025. AMC fell more than 60%, Marcus Corporation, which operates movie theaters and hotel chains, fell about 28%, and shares of Cinemark fell 25%.
The sharp declines on Wall Street come as movie theater operators struggle to cope with massive changes in the industry.
Domestic ticket sales have rebounded from record lows during the Covid pandemic, but remain about 25% below the record $11.8 billion collected in 2018. The 2025 box office fell short of the $9 billion that analysts predicted for the year, signaling to industry watchdogs that post-pandemic hurdles may be more permanent than expected.
“In an environment where consumer spending challenges and economic concerns are forcing consumers to make choices in their entertainment spending, streaming services continue to represent an attractive option,” Eric Wold, executive director of equity research at Texas Capital Securities, told CNBC.
As consumer habits shift toward the home entertainment market, Hollywood is producing fewer films.
A combination of Wall Street economics, studio mergers and continued production shutdowns due to the pandemic and twin strikes has led to a significant decline in the number of films releasing in theaters.
“I think investors are still grappling with, 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 cinema winnowing has left IMAX leading the pack.
Go premium
When the theater roster is thin, IMAX benefits, because when moviegoers decide to leave their couches, they increasingly opt for high-end, large-format experiences.
By 2025, more than 16% of tickets sold for domestic screenings were for these types of theaters, according to data from EntTelligence. This represents an increase from 15% in 2024 and 13.8% in 2023.
Often called PLFs, premium large-format auditoriums are considered an elevated viewing experience, with larger screens, better audio systems and seating options – and they have higher ticket prices.
In 2025, general movie tickets cost an average of $13.29 each, while PLF tickets cost about $17.65 each, according to data from EntTelligence. For comparison, premium tickets in 2024 averaged about $16.88 each.
As Hollywood moves toward producing big-budget feature films – while mid- and low-budget films are more often sent to streaming – PLF screens will become increasingly important.
After all, the films that benefit the most from PLF ticket sales are the ones that are released the most in Hollywood, because audiences want to see explosive action films and dazzling spectacles in the most modern venues.
ScreenX is the world’s first multi-projection cinema with an immersive 270-degree field of view.
CJ 4DPLEX
On the program for 2026 is Disney “Star Wars: The Mandalorian and Grogu”, Universal and “The Odyssey” by Christopher Nolan Netflix and “Narnia” by Greta Gerwig and Warner Bros. and “Dune: Part Three” by Denis Villeneuve.
All of these films were shot with IMAX cameras and will be released theatrically on IMAX screens.
The company projects its 2026 global box office to hit a new record of $1.4 billion.
“We see no signs of slowing down given the very bright future and continued market share gains as filmmakers, studios and audiences around the world continue to turn to 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. Notably, IMAX screens represent less than 1% of total cinema screens worldwide.
Make a profit
AMC, Cinemark and Marcus all have high-end large format cinema screens in their suite of theaters and have invested in creating more of these spaces in their theaters.
But the channels are playing a game of catch-up.
AMC, in addition to its existing partnership with IMAX, plans to add more Dolby Cinema theaters to its U.S.-based locations as well as Screen X and 4DX auditoriums worldwide. Cinemark also invested last year to add more Screen X theaters to its portfolio.
Of course, these upgrades can be expensive. In AMC’s case, previous renovations before the pandemic saddled the company with billions in debt, which was exacerbated during Covid-related shutdowns. The company is still struggling with this debt.
Working in IMAX’s favor is that the company is particularly asset light, meaning it has minimized its ownership of physical assets such as buildings by leveraging its technology and partnering with other companies.
Instead of leasing expensive real estate, IMAX makes deals with theater chains to install its equipment in their auditoriums and then takes a cut of the box office revenue from films shown in those theaters.
AMC, Cinemark, Marcus and other theater operators, on the other hand, 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 – have become the way for these businesses to raise enough funds to cover their expenses.
But if production isn’t strong and theaters don’t have enough content to attract moviegoers, then profitability is at risk.
In the first quarter of 2025, all three film stocks recorded net losses. Marcus and Cinemark returned to profitability in the second and third quarters as the film schedule improved, while AMC posted two more periods in the red.
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, up 67% from the same period of 2024.
Movie theater stocks will all release their fourth-quarter results in the coming weeks as earnings reports are released.