IMAX stock crushed the theater sector in 2025

The theatrical industry is in flux — and one stock 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. Those ticket sales marked a more than 40% increase over 2024 and were 13% higher than its previous record set in 2019.

Meanwhile, shares of fellow theatrical stocks AMC, Cinemark and Marcus Theatres cratered in 2025. AMC was down more than 60%, Cinemark’s stock fell 25% and Marcus Corp., which operates theaters and hotel chains, slumped around 28%.

The sharp declines on Wall Street come as theater operators struggle to grapple with massive changes in the industry.

Domestic ticket sales have rebounded from the record lows posted during the Covid pandemic, but remain about 25% below the the record-breaking $11.8 billion collected in 2018. The 2025 box office fell short of the $9 billion analysts had projected heading into the year, signaling to industry watchdogs that post-pandemic hurdles could be more permanent than anticipated.

“In an environment where consumer spending headwinds and economic concerns forced consumers to be choiceful with their entertainment spending, streaming services continue to represent an attractive option,” Eric Wold, executive director of equity research at Texas Capital Securities, told CNBC.

At the same time that consumer habits have shifted toward the home entertainment market, Hollywood is producing fewer films.

A combination of Wall Street penny-pinching, studio mergers and lingering production shutdowns from the pandemic and dual labor strikes has led to a significant drop-off in the number of movies hitting theaters.

“I think investors are still struggling with, and frankly, what everyone within the industry is still trying to figure out is, what is the real new normal for box office?” said Robert Fishman, senior research analyst at MoffettNathanson.

The winnowing of theatrical has left Imax ahead of the pack.

When the theatrical slate is thin, Imax benefits, because when moviegoers do decide to leave their couches they are opting more and more for premium large format experiences.

In 2025, more than 16% of tickets sold for domestic showtimes were for these types of theaters, according to data from EntTelligence. That’s up from 15% in 2024 and 13.8% in 2023.

Often called PLFs, premium large format auditoriums are considered an elevated viewing experience, with bigger screens and higher-quality sound systems and seating options — and they come with higher ticket prices.

In 2025, general movie tickets averaged $13.29 apiece, while PLF tickets went for around $17.65 each, EntTelligence data showed. For comparison, premium tickets in 2024 averaged around $16.88 apiece.

As Hollywood shifts toward producing more…