What IMAX Corporation told the SEC could break it.

IMAX is heavily exposed internationally — ~62% of revenue derived outside the U.S. and Canada in 2025, ~75% of operational systems and ~72% of backlog outside the U.S./Canada across 91 countries — with Greater China the standout concentration. Of the IMAX Systems scheduled to be installed in Greater China, 82% are under joint revenue-sharing arrangements (JRSAs), tying IMAX's economics directly to Chinese box-office performance (amplified by its separately HK-listed IMAX China subsidiary). A downturn in Chinese cinema attendance, a weak local/Hollywood film slate, or China-specific shocks would disproportionately hit results. A high China/Greater China box-office geographic concentration.

“IMAX Systems currently scheduled to be installed in Greater China, 82% are under JRSAs, which further increases the Company's ongoing exposure to box office performance in this market.”

IMAX flags that its China market faces risks from changes in laws and regulations, trade embargoes, restrictions and other barriers, and economic conditions affecting its exhibitor and studio partners — relevant given China's film import quotas/censorship gate which Hollywood films reach Chinese (and IMAX) screens. Separately, it cites the substantial, rapidly evolving 2025 U.S. trade-policy changes (increased tariffs, multilateral-agreement changes) and retaliatory measures by China and Canada in particular (many tariffs struck down by the U.S. Supreme Court on Feb 20, 2026, with uncertain net effect). As a Canada-incorporated company with deep China exposure that ships systems internationally, these intertwined film-regulatory and trade-policy dynamics are a specific exposure. A distinctive China/trade-policy regulatory risk.

“Since 2025, the U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs and changes in U.S. participation in multilateral trade agreements, while other countries, China and Canada in particular, have undertaken retaliatory measures in response to such changes.”