IMAX Odyssey ticket sales lift stock as company sticks to record target

IMAX Odyssey ticket sales gave investors a fresh reason to watch the theater-technology company, with shares rising more than 8% Thursday after IMAX said it remained on pace for a record $1.4 billion in global box office this year. For everyday investors, the key point is straightforward: one blockbuster is doing enough on premium screens to support management’s full-year target.

Christopher Nolan’s “The Odyssey,” released by Universal, brought in $52 million globally for IMAX during its opening weekend, according to the company. IMAX screens accounted for less than 1% of the movie’s total screen count, but produced 20% of its worldwide debut.

That matters because IMAX’s business depends on getting more moviegoers into higher-priced premium formats and convincing theater owners to add more IMAX systems. Global box office refers to ticket sales generated through IMAX auditoriums, rather than total company revenue.

Why is The Odyssey important for IMAX?

The film is helping answer a concern that had been hanging over the stock. Wall Street had questioned whether IMAX could still hit its 2026 global box office goal after Netflix and Greta Gerwig’s “Narnia: The Magician’s Nephew” moved from a November release to February 2027.

IMAX said “The Odyssey” opened 47% above Nolan’s prior film, “Oppenheimer,” on its screens. “Oppenheimer” went on to generate more than $190 million in IMAX ticket sales during its 2023 run.

The early weekday numbers also stayed strong. IMAX CEO Rich Gelfond told investors on Thursday’s earnings call that “The Odyssey” added $11 million on Monday and $10.6 million on Tuesday, which he said was the company’s best Tuesday ever.

“Our presales for the second weekend would qualify on its own as one of our biggest opening weekends ever,” Gelfond said on the call. “These numbers help prove that we’re just getting warmed up.”

What movies are still coming to IMAX this year?

IMAX also pointed investors to a packed release calendar. Titles still expected on its global screens this year include Sony and Marvel’s “Spider-Man: Brand New Day,” Zach Cregger’s “Resident Evil,” Tom Cruise’s “Digger,” “Godzilla Minus One,” David Fincher’s “The Adventures of Cliff Booth,” and Paramount’s “Street Fighter.”

Warner Bros. and Denis Villeneuve’s “Dune: Part Three” is expected to close out the year for IMAX. The earlier “Dune” films were meaningful performers for the format: the first movie generated $61 million in IMAX theaters near the end of the pandemic, while “Dune: Part Two” brought in $147 million globally.

How is box office strength affecting IMAX expansion?

Gelfond told investors that demand from theater operators is rising alongside the box office results. “Our momentum continues to translate into demand from our exhibition partners,” he said.

IMAX installed 38 systems worldwide in the second quarter, up from 36 a year earlier. Chief Financial Officer Natasha Fernandes told investors that this was the company’s highest second-quarter installation total in a decade.

The company installed 19 systems in the first quarter and said it is on track for 160 to 175 installations by the end of 2026. IMAX also reported a backlog of 421 contracts for future screen builds.

“We continue to see tremendous runway for our global expansion, and we continue to innovate in ways that make IMAX even more valuable to creators, studios, exhibitors and audiences alike,” Gelfond said. “This is an incredibly exciting time for our business.”

This story draws on original reporting from CNBC.