D-BOX Reports Record Royalty Revenues and $2.0 Million Net Profit in First Quarter Fiscal 2026
Q1 Fiscal 2026 Highlights
- Record royalties of $4.0 million
- Record adjusted EBITDA1 of $3.3 million
- Total revenues of $13.0 million
- Net profit of $2.0 million after a $0.9 million restructuring charge
MONTREAL, Aug. 13, 2025 (GLOBE NEWSWIRE) — D-BOX Technologies Inc. (“D-BOX” or the “Company”) (TSX: DBO) today reported financial results for its first quarter ended June 30, 2025.
“In Q1 2026, D-BOX delivered robust financial performance with record royalty growth and strong profitability,” said Naveen Prasad, interim CEO of D-BOX. “Following record revenues and net income performance for the full fiscal year 2025, the Company continues to demonstrate the strength of our royalty-focused model, expanded theatrical footprint and disciplined expense control.”
Q1 2026 Operating Results
In Q1 2026, total revenues were $13.0 million, up 49% year-over-year, driven primarily by the accelerated fulfillment of theatrical system sales in Q1 as well as record royalties performance of $4.0 million, partially offset by deceleration of sim racing customers in the first quarter.
Royalty revenues increased 64% year-over-year, achieving both historical quarterly records for D-BOX in terms of the number of tickets sold, as well as dollar value ($4.0 million). The record royalties performance was due to a 12% year-over-year increase in active D-BOX screens to 1,047, as well as ongoing strength in the gross box office driven by blockbusters in the first quarter including A Minecraft Movie, How to Train Your Dragon, Mission: Impossible – The Final Reckoning and F1: The Movie. Royalties accounted for an increased 31% share of the Company’s revenue mix. Simulation and training and sim racing customer groups were relatively flat and down 11%, year-over-year, respectively, in the first quarter.
Adjusted EBITDA1 for the quarter totaled a record $3.3 million, representing a 26% Adjusted EBITDA margin1, up 23% year-over-year and demonstrating continued focus on cost control and operational efficiency. Net profit was $2.0 million and operating cash flow was $2.8 million, which would have been records of $2.9 million and $3.6 million, respectively, prior to a restructuring charge related to the CEO transition announced on June 4, 2025.
Given the inherent variability and seasonality of quarterly sales, we emphasize the importance of assessing the Company’s performance on a trailing twelve-month basis.
| (Amounts are in thousands of Canadian dollars) | Q1 2026 | Q1 2025 | Var. ($) | Var. (%) | ||
| Revenues from | ||||||
| System sales | ||||||
| Theatrical | 4,081 | 560 | 3,521 | 629 | % | |
| Simulation and training | 2,179 | 2,094 | 85 | 4 | % | |
| Sim racing | 2,301 | 2,590 | (289 | ) | (11 | )% |
| Other | 483 | 1,082 | (599 | ) | (55 | )% |
| Total system sales | 9,044 | 6,326 | 2,718 | 43 | % | |
| Rights for use, rental and maintenance (“royalties”) | 3,994 | 2,436 | 1,558 | 64 | % | |
| Total Revenues | 13,038 | 8,762 | 4,276 | 49 | % | |
Balance Sheet and Liquidity
D-BOX closed the first quarter of fiscal 2026 in a position of financial strength, with $2.8 million in operating cash flow, low-cost total debt of $1.4 million, and available liquidity including the undrawn portion of the line of credit of $18.5 million.
SUPPLEMENTAL FINANCIAL DATA – UNAUDITED
| (Amounts are in thousands of Canadian dollars) | Q1 2026 | Q1 2025 | Var. (%) | |||
| Total Revenues | 13,038 | 8,762 | 49 | % | ||
| Gross profit | 7,316 | 4,551 | 61 | % | ||
| Operating expenses2 | 5,339 | 4,824 | 11 | % | ||
| Operating income2 | 1,977 | (273 | ) | n.m. | ||
| Adjusted EBITDA1, 2 | 3,328 | 264 | 1161 | % | ||
| Financial expenses | 25 | 136 | (82 | )% | ||
| Net profit (loss)2 | 1,952 | (419 | ) | n.m. | ||
| Basic and diluted EPS | 0.009 | (0.002 | ) | n.m. | ||
| Gross margin1 | 56 | % | 52 | % | 4 p.p. | |
| Operating expenses as % of total revenues1, 2 | 41 | % | 55 | % | (14) p.p. | |
| Operating margin1, 2 | 15 | % | (3 | )% | 18 p.p. | |
| Adjusted EBITDA margin1, 2 | 26 | % | 3 | % | 23 p.p. | |
| Cash flows provided by operating activities3 | 2,766 | (1,461 | ) | n.m. | ||
| As at (in thousands of Canadian dollars) | June 30, 2025 | March 31, 2025 | ||||
| Total debt1 | 1,389 | 1,221 | ||||
| Cash and cash equivalents | 10,450 | 7,812 | ||||
| Net cash (net debt) 1 | 9,061 | 6,591 | ||||
| Adjusted EBITDA (LTM) 1, 2 | 10,376 | 7,311 | ||||
1) Please refer to “non-IFRS and other financial performance measures” in this press release
2) Included in Q1 FY2026 is a restructuring charge provision of $850 related to June 4, 2025 change in CEO
3) Included in Q1 FY2026 is a restructuring charge payment of $750 related to June 4, 2025 change in CEO
n.m.= not meaningful
This release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements and the Management’s Discussion and Analysis dated August 13, 2025. These documents are available at www.sedarplus.ca.
All dollar amounts are expressed in Canadian currency
(1) Please refer to “non-IFRS and other financial performance measures” in this press release
NON-IFRS AND OTHER FINANCIAL PERFORMANCE MEASURES
D-BOX uses the following non-IFRS financial performance measures in its MD&A and other communications. The non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to similarly titled measures reported by other companies. Investors are cautioned that the disclosure of these metrics is meant to add to, and not to replace, the discussion of financial results determined in accordance with IFRS. Management uses both IFRS and non-IFRS measures when planning, monitoring and evaluating the Company’s performance. The non-IFRS performance measures are described as follows:
Adjusted EBITDA
EBITDA represents earnings before interest and financing, income taxes and depreciation and amortization. Adjustments to EBITDA are for items that are not necessarily reflective of the Company’s underlying operating performance. As there is no generally accepted method of calculating EBITDA, this measure is not necessarily comparable to similarly titled measures reported by other issuers. Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flow from operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues. A reconciliation of net profit to Adjusted EBITDA margin is presented below:
| Three month periods | ||||
| 2025 | 2024 | |||
| Net profit (loss) | 1,952 | (419 | ) | |
| Amortization of property and equipment | 318 | 259 | ||
| Amortization of intangible assets | 144 | 142 | ||
| Financial expenses | 25 | 136 | ||
| Income taxes | — | 10 | ||
| Share-based payments | 52 | 64 | ||
| Foreign exchange (gain) loss | (13 | ) | 72 | |
| Restructuring costs | 850 | — | ||
| Adjusted EBITDA | 3,328 | 264 | ||
Total Debt, Net Debt and Total Debt to Adjusted EBITDA
Total debt is defined as the total bank indebtedness, long-term debt (including any current portion), and net debt is calculated as total debt net of cash and cash equivalents. The Company considers total debt and net debt to be important indicators for management and investors to assess the financial position and liquidity of the Company and measure its financial leverage. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Total debt to Adjusted EBITDA ratio is calculated as total net debt divided by the last four quarters Adjusted EBITDA. We believe that total debt to Adjusted EBITDA is a useful metric to assess the Company’s ability to manage debt and liquidity.
Supplementary Financial Measures
Gross margin is defined as gross profit divided by total revenues.
Operating expenses as a percentage of sales are defined as operating expenses divided by total revenues.
Operating margin is defined as operating income divided by net sales.
ABOUT D-BOX
D-BOX Technologies Inc. (TSX: DBO) is a global leader in haptic technology, delivering immersive motion experiences that engage the body and spark the imagination. Our patented systems synchronize motion, vibration, and texture with on-screen content, enhancing storytelling across various platforms. With over 25 years of innovation, D-BOX’s solutions are utilized in movie theaters, sim racing, and simulation & training. Headquartered in Montreal, Canada, with offices in Los Angeles, USA, D-BOX continues to redefine how audiences experience media worldwide. Visit https://www.d-box.com/.
FOR FURTHER INFORMATION, PLEASE CONTACT:
David Reid
Chief Financial Officer
D-BOX Technologies Inc.
dreid@d-box.com
D-BOX Media Relations
media@d-box.com
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
Certain information included in this press release may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, business outlook, and financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on several assumptions which give rise to the possibility that actual results could differ materially from the Corporation’s expectations expressed in or implied by such forward-looking information and no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including but not limited to the future plans, activities, objectives, operations, strategy, business outlook and financial performance and condition of the Corporation.
Forward-looking information is provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of the Corporation’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.
Forward-looking information provided in this document is based on information available at the date hereof and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.
The risks, uncertainties and assumptions that could cause actual results to differ materially from the Corporation’s expectations expressed in or implied by the forward-looking information include, but are not limited to, the sustainability of net profit driven by continued strength in royalty revenues, the ongoing positive impact of past cost control measures on future profitability, and the sustained strength and value creation driven by its overall business model and operational discipline. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking information are discussed under “Risk Factors” in the Corporation’s annual information form for the fiscal year ended March 31, 2025, a copy of which is available on SEDAR+ at www.sedarplus.ca.
Except as may be required by Canadian securities laws, the Corporation does not intend nor does it undertake any obligation to update or revise any forward-looking information contained in this press release to reflect subsequent information, events, circumstances or otherwise.
The Corporation cautions readers that the risks described above are not the only ones that could have an impact on it. Additional risks and uncertainties not currently known to the Corporation or that the Corporation currently deems to be immaterial may also have a material adverse effect on the Corporation’s business, financial condition or results of operations.
