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 big-budget blockbuster features — while medium-to-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 have been Hollywood’s biggest releases, as audiences want to see explosive action movies and dazzling spectacles in the most state-of-the-art locations.

On the docket for 2026 is Disney’s “Star Wars: The Mandalorian and Grogu,” Universal and Christopher Nolan’s “The Odyssey,” Netflix and Greta Gerwig’s “Narnia” and Warner Bros. and Denis Villeneuve’s “Dune: Part Three.”

All of these films were shot with Imax film cameras and will have theatrical releases on Imax screens.

The company has forecast its 2026 global box office haul at a new record of $1.4 billion.

“We see no signs of slowing down given a very promising slate ahead and the consistency of our market share gains, as filmmakers, studios, and audiences worldwide continue to gravitate toward the Imax experience,” said Rich Gelfond, CEO of Imax, 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 the total movie screens worldwide.

AMC, in addition to its existing partnership with Imax, has plans to add more Dolby Cinema theaters to its U.S.-based locations as well as Screen X and 4DX auditoriums globally. Cinemark, too, made investments in the last year to add more Screen X theaters to its portfolio.

Of course, these upgrades can be expensive. In the case of AMC, renovations prior to the pandemic saddled the company with billions in debt, which was exacerbated during Covid-related shutdowns. The company is still dealing with this debt load.

Working in Imax’s favor is the fact that the company is notably asset-light, meaning it has minimized its ownership of physical assets like buildings by leveraging its technology and partnering with other companies.

Instead of costly real estate leases, Imax makes deals with cinema chains to install its equipment into their auditoriums and then takes a share of the box office receipts for films screened in those theaters.

AMC, Cinemark, Marcus and other theater operators, on the other hand, have the financial burden of rent and utility payments, which are only partially offset by ticket sales that they split with studios. Concessions — popcorn, soda and specialty food — have become the means for these businesses to drum up enough funds to cover expenses.

But, if the production slate isn’t strong and cinemas don’t have enough content to draw in moviegoers, then profitability is at risk.

In the first quarter of 2025, all three cinema stocks posted net losses. Marcus and Cinemark rebounded to profitability in the second and third quarter, as the calendar of films 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 in 2024.

The theater stocks will all report fourth-quarter results in the coming weeks as earnings reports roll out.